September 2016 ocean pines progress by Ocean Pines Progress

September 2016

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Former Ocean Pines Association Pat Renaud, entering his third year in a three-year term as an OPA director, abruptly resigned from the board in late August for reasons he said were personal in nature. At a special meeting Sept. 9, the board replaced him with Doug Parks, chairman of the Bylaws and Resolutions Advisory Committee and a candidate for the board this summer. Renaud initially declined to offer any more explanation, but he later conceded that health and political concerns might have been a contributing factor in his decision. ~ Page 3

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

CHANGING OF THE GUARD Hill settling in as acting OPA general manager Advertisement for permanent replacement posted on OPA Website; directors will also prospect for Brett Hill, management company as alternative

acting OPA GM

By TOM STAUSS Publisher

well-prepared and secure-enough-to-delegate general manager has taken over the reins of day-to-day management in Ocean Pines, with every intention of filling the role until the Board of Directors is able to find a suitable replacement. From all accounts, when the new board moved to replace the man whose contract they terminated, former general manager Bob Thompson, a board majority had in mind the person it wanted to fill Thompson’s shoes on an interim basis. That person was Brett Hill, an enterprising technology executive whose 1,900 votes led the pack in the 11-candidate slate of Ocean Pines property owners who ran for three seats on the board this summer. He employed social media to build up name recognition among the younger age group of property owners who probably formed the basis of his formidable base of support among voters. He also was the one candidate who spent quality time at the Beach Club campaigning this summer, again targeting a younger demographic than might be found hoarding lounge chairs poolside at the Yacht Club. His vote total was large enough that he must have had some cross-over appeal to all factions within Ocean Pines, possibly even those who found little fault with the former general manager. Unlike one of this summer’s other winning candidates, Slobodan Trendic, Hill tactically stopped somewhat short of declaring his intention to terminate Thompson’s employment contract with the OPA, but his dissatisfaction with his predecessor was apparent. When and if the time came to decide Thompson’s fate, there was a presumption that he would join three colleagues – Trendic, Dave Stevens and new OPA President Tom Her To Page 31

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Pat Renaud resigns, board fills vacancy with Doug Parks

$31,000 Thompson bonus roils board; new acting GM calls it ‘disturbing’ Failure to involve entire board in reviewing the bonus was contrary to language in former GM’s employment contract

By TOM STAUSS Publisher he sudden emergence of a previously undisclosed $30,939 bonus awarded Former General Manager Bob Thompson for amenity performance in the 2015-16 fiscal year roiled the final weeks of the Board of Directors term that ended with the Aug. 13 annual meeting and continued as new directors and a new board term began in the weeks that followed. The major controversy that swirled around the bonus involved both the amount, especially the final $10,313 bonus given for exceeding an amenities’ bonus goal by $100,000, and the fact that the entire board did not have an opportunity to review the calculations and some adjustments to the performance goals before former OPA President Pat Renaud authorized payment of the bonus. Board review, as opposed to approval, was called for in the employment agreement that was last extended for three years in April before it was terminated by the new board in a 4-3 vote in a closed meeting Aug. 26. Board members who had been denied the opportunity to review the bonus were livid. Former OPA Director Jack Collins said the failure to involve the full board in the bonus calculation was “criminal,” and Dave Stevens, recently elected OPA vice-president, agreed that the entire process, as well as the actual calculation, was “a brazen and unacceptable violation” of the spirit and letter of the agreement. New director Brett Hill, who is serving as acting general manager after Thompson’s recent ouster, called recent discoveries about the bonus “disturbing” and justified a desire to reopen contract negotiations with Thompson on those revelations. His concern also extended to adjustments in the amenity performance goals for the current fiscal year that would have made it easier for Thompson to earn bonuses for this year as

To Page 31

Herrick elected OPA president in annual board reshuffle The results of the 2016 Board of Directors election in Ocean Pines were felt early and often when the new board met in open session Aug. 22 to elect new officers for the coming year. The annual reshuffle of OPA officers that occurs in an organization meeting shortly after announcement of election results at the OPA annual meeting was notable this year as much for who was not elected or appointed corporate officers. The new slate of officers, together with certain key demotions, reflected the will of a new board majority that emerged from the election. ~ Page 5

Directors nix Manklin Meadows master plan The Board of Directors have killed an earlier version of a master plan for the Manklin Meadows Recreation Complex that included relocation of playground equipment, extensive stormwater management and an enlarged parking lot. Instead the board has approved repairs to the playground equipment and repurposing two tennis courts for pickleball. The future of proposed platform tennis courts will be put off until next year. ~ Page 13

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September 2016

BOARD OF DIRECTORS

September 2016 Ocean Pines PROGRESS

Pat Renaud resigns as OPA director, Doug Parks appointed to fill vacancy Trendic cites new director’s information technology background

the so-called “reform” candidates that ran for the board this summer, among them Jack Collins, who served on the board the past three years and finished seventh; Steve Lind, who finished fifth among the canDoug Parks didates; or Parks, who finished ninth. All three had initial support from directors who had backed their candidacies during the recent campaign. Director Dave Stevens initially favored Collins, a former director whose term expired Pat Renaud last month. Newly elected Director Slobodan Trendic backed Steve Lind. Brett Hill was said to be leaning toward Parks. All three were considered compatible with the two candidates who were the top two finishers in the contest, Hill and Trendic. Hill ran as part of an informal “reform” slate with Parks and

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By TOM STAUSS Publisher ormer Ocean Pines Association Pat Renaud, entering his third year in a three-year term as an OPA director, abruptly resigned from the board in late August for reasons he said were personal in nature. In a telephone interview with the Progress, Renaud initially declined to offer any more explanation, but he later conceded that health concerns might have been a contributing factor in his decision. This past year, in the role of president, he missed some meetings because of ill health or participated by telephone, lessening his effectiveness. Vice-president Chery Jacobs in recent months presided over meetings in his absence. In a subsequent published interview, Renaud admitted that frustration at the board’s change of direction following this summer’s board election may have been a contributing factor in his decision to resign. At a special meeting Sept. 9, the board voted 4-2 to appoint former candidate Doug Parks to fill out the one year remaining in Renaud’s term. The directors had been debating among themselves whether to appoint one of

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BOARD OF DIRECTORS

September 2016

Parks appointed From Page 3 Tom Janasek, while Trendic was closely identified with Lind because they both explicitly called for the replacement of General Manager Bob Thompson. Parks, Janasek and Collins stopped short of that. Still, all three had issues with Thompson that they discussed during the campaign. During the Sept. 9 meeting, Trendic offered the motion nominating Parks for the vacancy, citing his experience running an information technology compa-

ny. Trendic and Parks share an IT background in their professional careers, and Trendic said he hoped his and Parks’ experience will help move the OPA ahead in the IT arena. Jacobs nominated the fourth place finisher in the race, Frank Daly, but it was clear the board majority was not inclined to fill the Renaud vacancy with someone who did not run explicitly as part of the informal coalition of reform candidates this summer. After Jacobs argued for Daly, citing his fourth place finish as reflecting the will of the voters, majority members

said there is nothing in any of the OPA documents that say the candidate with the “next highest” vote count in an election will fill a vacancy if it occurs after an election. Nor is there any precedent for that in Ocean Pines. The last time a vacancy occurred after an election, more than two years ago, the board selected an OPA member, Jeff Knepper, who had not run in the previous election, to fill an unexpected vacancy, bypassing the “next highest” vote-getter in the prior election, Roland Langevin. Langevin ran on a platform of ousting the general manager, and the then board majority, pro-Thompson at the time, was not inclined to elevate someone for the board who did not agree with the majority on that particular issue. Both Hill and Trendic said the “will of the people” would be accommodated by appointing Parks, who had the support of the two top vote-getters in this summer’s election. Herrick said in supporting Parks for the vacancy that “you have to understand what the votes meant” in the recent election. “Doug fits in with the change agenda” that the voters called for, he said. Jacobs said that had Renaud resigned before the election, rather than after, Daly would have won the seat by virtue of coming in fourth place. She said that Daly had twice the votes that Daly did in the election. That didn’t sway Herrick, who said the votes for reform candidates were diluted by the fact

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that there were six candidates who ran on similar platforms. Jacobs said that Daly also ran on a platform as a proponent of management reforms, consistent with the candidates who won the election, after earlier praising him for his independence and suggesting that he would bring a different point of view not in lockstep with majoritarian “groupthink.” Neither argument swayed the majority, which evidently had agreed on Parks as a consensus pick acceptable to everyone prior to the meeting. The vote for Parks was done in open session, by a show of hands, in contrast to the last time a board filled a vacancy, when it was done in a meeting closed to the OPA membership. Renaud’s resignation, which had been rumored as possible immediately after the election results were announced, with speculation picking up when his preferred successor for OPA president, Jacobs, lost out to new Herrick in balloting during an Aug. 24 organizational meeting. It became evident that Renaud, who was also embroiled in a late-breaking controversy over a $31,000 bonus for former general manager Bob Thompson, was going to have minimal influence with the new board majority had he elected to serve out his final year as a director. As OPA president who signed off on the bonus given to Thompson for exceed-

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BOARD OF DIRECTORS

September 2016 Ocean Pines PROGRESS

ELECTION OF OFFICERS

Herrick elected president, Stevens vice-president, Trendic secretary, Supik treasurer in board shuffle Thompson’s demotion as OPA assistant treasurer signaled weakened status with new board majority; Gomsak role not renewed; Carmine, Ringsdorf named assistant treasurers replacing Thompson and Gomsak to elect new officers for the coming year. The annual reshuffle of OPA officers that occurs in an organization meeting shortly after announcement of election results at the OPA annual meeting was notable this year as much for who was

not elected or appointed corporate officers. The new slate of officers, together with certain key demotions, reflected the will of a new board majority that emerged from the election.

The new majority – Tom Herrick, Dave Stevens, Slobodan Trendic and Brett Hill – immediately tried to bring newly elected director Pat Supik into the fold. She was nominated to be treasurer by Stevens and won the position by acclamation.

Renaud resigns

ry, who has admitting to performing the calculation, told him the contract did not require the board to approve it, but that Renaud as the OPA president should share the document he had signed awarding the contract with all the other directors. Renaud told the Progress he forgot to do so, for which he apologized to the directors. Renaud, who was elected in 2014 with Stevens in a reform team that for a brief time formed a working board majority with directors Collins and Marty Clarke, soon found himself at odds with his former colleagues. He moved

into the faction that generally approved of the job that former General Manager Bob Thompson was doing for Ocean Pines, changing the balance of power on the board to one that was decidedly pro-Thompson. He was rewarded by the presidency a year ago by a new majority that included TomTerry, Bill Cordwell and Jacobs. His former supporters in the Ocean Pines community were not flattering in their assessment of Renaud’s allegiances, and some referred to Renaud as Terry’s puppet, a label that Renaud said was hurtful and inaccurate.

But first there was some drama, if not exactly doubt as to the outcome, with a contest for the OPA presidency. At the time still OPA President, at least for several more minutes, until his successor was chosen, Pat Renaud nominated Cheryl Jacobs, last year’s vice-president, for the presidency, calling her his “right arm” in his year as president. Renaud and Jacobs together met with former General Manager Bob Thompson for weekly meetings on Mondays throughout much of last year. Renaud made no secret of the fact that he

From Page 4 ing amenity budget goals, Renaud failed to involve the full board in reviewing the calculations that led to the decision to award Thompson the bonus. The contract called for such a review, with any disputes to be resolved by the OPA’s auditing firm, but Renaud told the Progress he was unaware of that contract provision until sometime after he signed the document awarding the bonus. He recalled OPA Treasurer Tom Ter-

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BOARD OF DIRECTORS

September 2016

als Thompson contacted to tell him that the board had terminated his contract. Gomsak, at the Country Club for a golf outing when he received Thompson’s call, reportedly told the group he was with that the decision to terminate Thompson’s contract

Board shuffle From Page 5 wanted her to succeed him. The annual election results virtually guaranteed that his desire would be frustrated. Jacobs’ nomination was quickly countered by Stevens, who nominated Herrick, who was elected to the board last year with Jacobs. The order of finish in last year’s balloting was Herrick as top voter-getter followed by Jacobs. It was the same result in this year’s board election for the presidency. Although the election of all the officers was conducted with no announcement of the vote tallies – only OPA corporate counsel Joe Moore and Public Relations Director Teresa Travatello know for sure, as they were ones who counted the paper ballots – there is some reason to believe that Supik voted for Herrick. The board majority conducted outreach to Supik prior to the meeting and it easily could have paid off with a Supik vote for Herrick and support for Supik as treasurer by the new majority. That would have resulted in a 5-2 vote for Herrick as president, assuming Herrick voted for himself along with Stevens, Trendic and Hill. Renaud and Jacobs presumably both voted for Jacobs. The same pattern repeated itself in the contest for vice-president, in which Renaud nominated Jacobs and Herrick, the newly minted president, nominated

Tom Herrick

Dave Stevens

Stevens, who served as OPA president the year preceding Renaud. Stevens was elected vice-president, probably by the same 5-2 vote that elected Herrick president. There was no contest for secretary or treasurer, with Hill nominating Trendic as secretary followed by Stevens’ nomination of Supik as treasurer. Stevens was elected parliamentarian by acclamation. Michelle Bennett, the general manager’s executive secretary, was appointed OPA assistant treasuer. With no fanfare but an undercurrent of drama, the election of two new assistant treasurers also reflected the results of this past summer’s board election. Stevens nominated Gene Ringsdorf, a long-time member of the Budget and Finance Committee, who resigned last fall, and OPA Controller Art Carmine as assistant treasurers. There were no oth-

Patricia Supik

Slobodan Trendic

er nominations, meaning that Ringsdorf and Carmine were in effect elected by acclamation. The nominations were significant because the Ringsdorf and Carmine appointments removed Thompson and Thompson-ally Pete Gomsak, a former OPA director, as OPA corporate officers. Gomsak served as assistant treasurer last year, and two years before that, with a year off the year in between when Stevens was president. It’s possible to tell who won or didn’t win an OPA board election by whether Gomsak is appointed assistant treasurer. Even when he didn’t have the title, he is believed to have played an important behind-the-scenes role as a Thompson advisor and supporter. With Thompson’s recent ouster as general manager, Gomsak may find his access to the OPA inner circle more limited than it has been. Gomsak was one of the first individu-

“would not stand.” That suggests he may involve himself in next summer’s board contest, when two seats will be contested. Should he succeed in working behind the scenes to electing two directors of his choosing, that could in theory flip the board back to a majority that might even reinstate Thompson as general manager. Whether that scenario is anything but pure fantasy probably will be determined how well the new board performs this coming year. This summer, Gomsak worked on behalf of Supik, contributing his own funds and those of like-minded individuals to help pay for direct mail and other campaign practices that have been commonplace in Ocean Pines for many years. The efforts to elect Supik were successful, but not as successful as the campaigns waged by Trendic and Hill.

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September 2016 Ocean Pines PROGRESS

Board winds through the weedy compliance process to address problem property Westfield Circle home targeted for clean-up By ROTA L. KNOTT Contributing Writer property at 39 Westfield Circle that has been the topic of complaints by neighbors, the alleged site of illegal activity by local youths and the subject of repeat police calls, is now also on the list of violators of the Ocean Pines Association’s restrictive covenants. During an Aug. 26 meeting, the Board of Directors voted 5-2 to instruct then-General Manager Bob Thompson to have OPA staff cut grass, trim bushes and spray weeds growing from the driveway on the property. Director Brett Hill made the motion to use the OPA’s authority under the restrictive covenants to enter onto

the property at 39 Westfield Circle and clean it up in response to complaints by neighboring residents. His motion, which was approved with OPA president Tom Herrick and Directors Dave Stevens, Pat Supik and Slobodan Trendic in favor, called for using the “fast track” process to expedite the clean-up. Directors Pat Renaud and Cheryl Jacobs voted against the motion. Hill argued that the association needs to take immediate action to address the violation on the property not just because it is unsightly but also due to the risk to public safety. He compared the situation to that at 3 Bramblewood Drive where the board used the “fast tracking” mechanism to

authorize OPA public works crews to clean up and make repairs to the house, which had extensive damage including a caving roof. Stevens gave a second to the motion. Hill said the police have been called to the Westfield Circle property in response to complaints about young people trespassing there. The overgrowth of plantings, up to six to eight feet in height, is making the situation conductive to inappropriate activity by individuals who do not belong on the property, he added. “The growth is pretty high and the plantings are out of control” he said. Jacobs argued that the board doesn’t need to make a motion or fast track vio-

lations related to overgrowth on a property. Public Works crews can take care of those problems on their own without the need for additional board action, she said. She added that there are not many actual weeds on the property, only those growing from between the driveway pavers. Most of the vegetation is “beautiful plantings” that haven’t been taken care of and are now overgrown, she said. The state of ownership of the property is also unclear, she said. The homeowner’s names are still listed but there are postings on the home from a collections agency and there are a number of banks involved, she said. Jacobs contacted the collections agency for information but representatives from the company wouldn’t talk to her since she is not a debtor of record related to the property. Additionally, she said the property has been in foreclosure but there were

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BOARD OF DIRECTORS

8 Ocean Pines PROGRESS

BOARD OF DIRECTORS

September 2016

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is unlikely to ever recover that money by adding the expense onto the annual assessment bill. Hill responded that it will be worth the expense to improve the property. He added that the police department is already expending resources to response to complaints about trespassers on the property but that should stop if the lot is cleaned up. The board ultimately approved Hill’s motion in a 5-2 vote., with Jacobs and former director Pat Renaud opposed. Thompson said the OPA has cleaned up the property in the past and will do so again. In his new role as acting general manager, Hill during a special board meeting Sept. 9 reported that Public Works crews had gone on site and trimmed shrubs and applied weedkill to the driveways, to the apparent pleasure of residents in the area. Regarding 3 Bramblewood, OPA crews have gone on site to mow the lawn, Hill said. An inspection by the Progress on Sept. 8 shows a tarp that had covered up roof damage has blown off to the back of the house on Bramblewood Drive, exposing the damaged roof to the elements. A neighbor said that there has been no effort by the OPA thus far to fix the roof, which would be much more labor intensive and costly than lawn mowing.

Property clean-up From Page 7 filings for redemption and there are “a number of banks involved.” When asked for his opinion on the matter, Thompson concurred that he didn’t need board approval to direct Public Works staff to enter onto the property and trim the overgrowth. However, he pointed out that is different than making repairs, as was approved by the board for 3 Bramblewood Drive. Thompson said if the board’s intent is to more aggressively target property owners who are not maintaining the vegetation on their lot CPI can do so. He cautioned that is “a little more subjective” in nature as to what is unkempt and suggested the board establish some guidelines using visuals like photos of properties around the community. Herrick said the board does need to be more aggressive on such matters in order to keep Ocean Pines an attractive community. “I’m in favor of being aggressive and going on the property,” he said. Jacobs cautioned fellow directors to remember that “this is a balancing act.” She said there will be a cost to the association of cleaning up the property and given the status of the property the OPA

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BOARD OF DIRECTORS

September 2016 Ocean Pines PROGRESS

New meeting schedule designed to increase member attendance

Board to test Saturday meetings, adds work sessions ing more extensive public participation and input at separate work sessions. “This way when we have the board meeting it would expedite the process,” he said. When Herrick suggested Friday or Saturday meetings, Director Carol Jacobs quickly asked if he was suggesting that all meetings be held after hours or on weekends. “I’d like to have some,” he responded, adding that would allow more of OPA members who work or are not full-time residents to attend. “I would prefer a Saturday morning.” Director Brett Hill suggested the board set a schedule through the end of the year and gauge the impact on member participation. He said that will help validate an increase in attendance and make sure the board is serving the needs of the membership, while adjustments to the meeting schedule can be made at the end of the year. Jacobs responded that there “are statistics” that show attendance does not change with a shift in meeting days or times to evenings or weekends. Herrick said that could simply be because the meetings take so long and

few members want to commit to sitting through three or four hours of a board meeting. He said if the meetings were only an hour, more members might attend. Jacobs supported holding board meetings at different times to see if it makes a difference and “gives everybody choices” of being able to attend a meeting. Regarding the work sessions, however, she said having more meetings “just to have meetings…doesn’t make sense.” Director Dave Stevens, a long time board member, said the OPA has been “most productive in bringing people in” when the board maintains a regular set schedule. “I’ve seen this experiment going on for nine years now and it hasn’t made a difference.” Stevens did support having work sessions, because members liked “being able to come in and participate” and it “does speed up the second meeting.” Director Slobodan Trendic said holding the work sessions a few days prior to the board meetings would be beneficial. “There’s a lot of work to be done and as new board members we can certainly benefit from additional time that work sessions will provide,” he added.

Herrick said the agendas for the work sessions and regular board meeting will be essentially the same. He said the goal is to discuss the issues in advance in order to speed up regular board meetings. But Jacobs said she thought the point of having work sessions was for the board to have the opportunity to discuss particular topics, not just to review the agenda for the regular meeting. Director Patricia Supik was concerned about the schedule and said her preference would be to hold both the work sessions and regular meetings during the same week. She said it will be easier for her as a board member to plan her schedule. Stevens supported the idea and said the agenda will be essentially the same for both meetings. In the past, the board even held the work session and board meeting in the same day. Hill said Herrick’s approach may speed up the board meetings and expedite resolution of important matters that would otherwise be tabled in order for the board to gather more information. He said it will be “more efficient in actually getting motions pushed through.” During the public comments section of the board meeting, property owner Joe Reynolds commended the board

By ROTA L. KNOTT Contributing Writer f at first you don’t succeed, try, try again – and again. That’s seems to be the motto of the Ocean Pines Association’s Board of Directors when it comes to meetings. Every newly constituted board tests the theory that changing the day, time or location of its regular monthly meetings will generate increased attendance by property owners. As a result, the current board plans to hold work sessions on one Monday per month and the regular monthly meeting on the following Saturday. Work sessions will begin at 9 a.m. on Sept. 19 and Oct. 17 and Saturday meetings will be held at 10 a.m. on Sept. 24 and Oct. 22. During the holiday season, the board opted to condense the November and December meetings, with the work session slated for Dec. 5 at 9 a.m. and the regular meeting on Dec. 9 at 9 a.m. OPA President Tom Herrick during an Aug. 26 meeting broached the topic of adding work sessions to the meeting schedule so the board can review and debate agenda items before the monthly board meetings. He said the board meeting have become too long and the agenda too lengthy. He argued that those meetings could be shortened by working out all of the details in advance and allow-

BOARD OF DIRECTORS

September 2016

Advisory committee liaisons appointed Two election committee members resign By TOM STAUSS Publisher he Board of Directors through e-mail exchanges in late August approved board liaisons to advisory committees that were not made official at a special Aug. 22 organizational meeting. Then in early September, after some behind-the-scenes kerfuffle involving the Clubs Advisory committee, the board accepted a recommendation from new OPA President Tom Herrick for a change in the original line-up. Slobodan Trendic, who initially was appointed liaison to the Clubs Advisory Committee, and Dave Stevens, initially named liaison to the Communications Committee, swapped positions at Herrick’s urging. Because new director Pat Supik was elected OPA treasurer at the meeting, she more or less automatically became the liaison to the Budget and Finance Advisory Committee, which she served as chair the past two years. That’s a traditional role for whoever is elected OPA treasurer by the board. By tradition, the OPA secretary serves as liaison to the Elections Committee, which this past election cycle was embroiled in a political controversy

over its long-standing policy of opening OPA election ballots in closed session. Newly elected director Slobodan Trendic was elected secretary by the board during the board’s organizational meeting. Following his appointment, two long-standing member of the Election Committee resigned. As a candidate for the board this summer, Trendic was an outspoken critic of the closed meeting in which the vote count occurred this year, and every year before that. Along with candidate Brett Hill, he wrote the Office of the Maryland Attorney General to urge its Office of Consumer Affairs to overturn the closed door policy. While that effort did not succeed, Hill and Trendic finished first and second in this summer’s election. As a result, both are in a position to press for changes in the OPA’s vote count procedures as directors. Trendic, as liaison to the committee, would be in a position to confront committee members who, with the support of a majority of the previous board of directors, opposed an open vote count. Both have promised a much more

transparent process in next year’s election, and they probably have the votes to make it happen. Perhaps reading the handwriting on the wall, two committee members, chairman Bill Wentworth and member Judy Butler, resigned from the committee, leaving only Steven Smith as a member. The board is expected to find replacements in due course. In the days following the organizational meeting, the directors informed Herrick of their preferences of liaison assignments. Herrick himself selected the Marine Advisory Committee and the Racquet Sports Advisory Committee. More recently, he appointed himself liaison to Landscapes Unlimited, the company that manages the Ocean Pines golf course, with two non-board members to be appointed soon to fill out a three-member golf working group. The last board appointed the general manager to interact with LU local management on a day-to-day basis, and that is likely to continue, with the acting general manager inheriting that role. Supik added the Environment and Natural Assets Committee to her role as Budget and Finance liaison. Director Dave Stevens initially

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agreed to serve as liaison to the Communications and Comprehensive Plan committees. As liaison to the comprehensive plan committee, he will work closely with its chair, Frank Daly, who ran for the board this summer, placing fourth, just shy of capturing the votes needed to place third and a seat on the board. Hill, the acting OPA general manager, will serve as liaison to the Recreation and Parks Advisory Committee. Cheryl Jacobs has been assigned to Architectural Review and Bylaws and Resolutions committees. Trendic was initially named liaison to the Clubs committee, a panel that includes several members who were known as strong supporters of former General Manager Bob Thompson and his agenda for Ocean Pines. Recently, committee members were in the news making what were perceived by some as comments disparaging the newly elected board. While most of this committee is serving on terms that will extend into 2017 or longer, the term of the committee chair, former OPA director Les Purcell, is up on Sept. 20. He is eligible for a third term, which would be for one year only, and he has submitted an application for reappointment. Trendic had submitted the name of Steve Lind as a replacement for Purcell,

10 Ocean Pines PROGRESS

Meeting schedule From Page 9 for revising its meeting schedule to add work sessions and Saturday regular meetings. He said there was a time when board meetings were attended by more than 100 people and members had to take a ticket and wait in line into order to make public comments. He said attendance dropped when the board started having its meetings during the week instead of on Saturdays. Reynolds also took issue with comments by board members, including Jacobs, the OPA vice-president until August, who chaired meetings in the absence of former OPA President Pat Renaud. Reynolds criticized Jacobs at earlier meetings for opining that public comments segment of the agenda is not for “exchanges” with members. Directors were chastised for responding to members’ questions and comments. Yet Reynolds pointed out that the board meeting agenda has a section for media questions. The board will allow members of the media to ask questions “but we don’t allow our own association members to ask questions and get answers,” he said, adding that he understands that meetings are not the time to hold extensive discussions about issues without proper preparation, but told the board not to “write it off entirely.” “You owe our association members more than you owe the media who sometimes are not even members of the association,” Reynolds told the board.

September 2016Ocean Pines PROGRESS 11

BOARD OF DIRECTORS Advisory committees From Page 10 both as a member of the committee and chairman, but all indications are that Purcell will be reappointed. With no vacancy on the committee, Lind is unlikely to be appointed. Trendic also has called for one committee member, Gary Miller, to be removed from the committee, in part in reaction to published comments by Miller that were construed as disparaging of the new board majority. Stevens, the newly appointed liaison to the committee, said he was inclined to let Purcell remain on the committee as chair and to keep Miller on as well. He posed the rhetorical question whether “it would really make that much difference” if Purcell was reappointed; the committee will continue its recent work with or without him, he suggested. His point seemed to be that no one, committee chairman or committee member, is indispensable. Herrick said he wanted to treat everyone who has served on advisory committees with respect and to avoid unnecessary friction. “As President, I am now in a position attempting to mediate between the two warring factions. As a community we need to heal, unite and move forward together. I truly believe we can put most of the controversies aside by working together. “The voting membership set a mandate by overwhelmingly voting for a new direction. The ‘new Board’ will certainly provide this to the membership but must do so in a fair and respectful manner to all. We cannot allow the injustices of the past, to continue in the future, as we will never accomplish that goal,” he said. To defuse a situation that could have caused hard feelings on the Clubs committee, Herrick moved to swap out the committee liaisons for the Clubs and Communications committee, with Trendic and Stevens trading roles. Trendic reacted to the change in roles with equanimity, telling the Progress while he would have preferred “bold action” along the lines that he had recommended, he accepted Herrick’s decision.

Drawbridge divas

Pictured are ladies who live on Drawbridge Road in Ocean Pines. They attended the annual luncheon of the Drawbridge Divas, held at the home of Jackie Choate Splitting our “new board majority” over the composition of an advisory committee does not make sense, he said, and he said there may be other ways to address perceived management issues at the Yacht Club. He has previously suggested that appointing task forces to deal with specific issues is a model that has worked for Ocean Pines in the past, and might again. He said Lind, who has been an advocate of leasing out the Yacht Club as an alternative to in-house management, could yet play an important role in investigating alternatives for the Yacht Club, alternatives that Trendic doubts the Clubs Advisory Committee as presently constituted would be interested in fully and objectively vetting. This past year, Purcell and Lind, one of the candidates for the board this summer, engaged in a contentious debate over Lind’s critique of Yacht Club management and Lind’s advocacy of leasing out the amenity to a qualified, experienced local restaurateur.

Lind, who placed fifth among 11 candidates in this summer’s election, during one committee meeting said Purcell should resign, and Purcell said the same of Lind, who did some time after. Two advisory committees, Aquatics and Search, didn’t have liaisons ap-

pointed in the initial round. Herrick said that he expects to appoint Renaud’s replacement, Doug Parks, to serve as Aquatics committee liaison, replacing former director Pat Renaud who served in that role previously.

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BOARD OF DIRECTORS

September 2016

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By TOM STAUSS Publisher ormer Ocean Pines Association directors Tom Terry and Pat Renaud made no secret of their desire over the board term that just ended that they thought Cheryl Jacobs, vice-president under Renaud, would make an excellent OPA president in the new board term that began last month. The board election intervened, producing a board majority that had other ideas on who should serve as OPA president over the next year. But that hasn’t stopped Jacobs from proposing an agenda for the coming year that probably would have been virtually identical to the agenda that she would have advocated had she, and not director Tom Herrick, been elevated to the role of president. At a special meeting of the newly reorganized board Aug. 24, Jacobs said she hoped the new board would move quickly to establish goals for the general manager – who at that moment was still former GM Bob Thompson – in preparing the draft budget for the 2017-18 fiscal year. She urged the board “to provide a roadmap of what we would like done” Racetrack Rd.she said should in11029 the next year, which closely Berlin,correspond MD 21811 to what is proposed in the general manager’s budget. That the general manager’s draft budget will be prepared by Acting General Manager Brett Hill and staff rather than Thompson was not known at the time she suggested a list of goals for next year. There is no particular reason to suggest that the change in general managers would have affected her proposed list of objectives. Her goals for the board include completing the Capital Improvement Plan/

reserve study/comprehensive plan process, to make a decision on rebuilding or renovating the Country Club, to complete a budget, to complete the renovation of or build new Beach Club bathrooms, and to complete the first phase of Manklin Meadows improvements. Her goals also included completion of Yacht Club improvements, such as downstairs room dividers; improvements in relations with Worcester County government, completion of the Section 17 turn-over agreement, and updating Board Resolution M-06. Finally, she said she hoped the board would enact new procedures that would accelerate enforcement of CPI (compliance, permits, and inspections) regulations. She and Terry, the former director, had initiated a study on how to accomplish that goal this past year, but had not submitted a detailed plan for board consideration before Terry’s retirement from the board in August. Her colleagues did not react one way or the other to the specific goals she proposed, but there seemed to be consensus PRSRT that adopting board goals for the year USPOS would be a useful exercise and should be accomplished sooner rather than later. PAID Director Dave Stevens told the Progress in early September that he MAILMO would proposing his own set of goals for board consideration, which may or may not include some or all of the goals suggested by Jacobs. Stevens said he would be giving some thought on how to proceed with development of a capital improvement plan, a process that the former board had given to Thompson to oversee. He produced a draft CIP, which Stevens criticized at the time and subsequently as little more than a wish list

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September 2016 Ocean Pines PROGRESS

Board votes to move ahead with conversion of Manklin tennis courts to pickleball Relocation of playground equipment, stormwater mitigation eliminated as directors vote to rescind earlier decision on master plan ROTA L. KNOTT Contributing Writer nhappy with various plans and proposals for redevelopment of the Manklin Meadows Recreation Complex, the Board of Directors last month called a halt to action on the pending project, but during a Sept. 9 special meeting agreed to continue with conversion of two tennis courts for pick-

leball play. The board also approved, in a separate vote, to continue with planned repairs to playground equipment in the Manklin complex, without relocating it, adding new fencing or expanding a parking lot. What had been a master plan for the complex – relocation of the playground equipment and stormwater mitigation –

Board goals

any discernible progress either, which leaves Thompson’s draft document as the one from which the new board might use as a stepping-off point for actual decisions on what to include in an officially approved CIP. The new board is likely to have significantly different priorities than Thompson in his draft CIP. As facilities manager, Aveta is likely to have an enhanced role in developing the CIP, the reserve study and a revised comprehensive plan, all three components sometimes referred to as the three-legged stool that is supposed to guide the OPA in its capital improvement planning.

From Page 12 with no substantiation, last November. The former board did not take it up for consideration, an omission frequently noted by Stevens in a not too veiled critique of Renaud’s presidency. In the year prior to Renaud’s presidency, Stevens was OPA president and he oversaw a process in concert with Facilities Manager Jerry Aveta that made some progress in developing a CIP but which did not produce a completed document. The board under Renaud didn’t make

has been rescinded by a super majority of directors, who by their votes and comments indicated that they don’t believe either is necessary. A previous master plan for the site was explicitly rescinded in a 6-0 vote during the special meeting, with Director Cheryl Jacobs abstaining. The vote to proceed with repairing the playground equipment passed unanimously. Jacobs said she abstained on the master plan vote, saying she wanted to move the playground equipment as a way of preserving the option of adding on to it in the future. OPA President Tom Herrick countered that argument, telling Jacobs that the playground could be expanded in the future even it isn’t moved. He confirmed that with OPA facilities manager Jerry Aveta, who was attending the meeting and presented details of the revised Manklin project to the board. Where that leaves proposals for new two platform tennis courts, which previously had depended on degree of stormwater management, is not clear. Aveta told the board that the Racquet Sports

Advisory Committee may be backing off its platform tennis recommendations, while Herrick said he had not heard that. Director Dave Stevens said any platform tennis recommendations that the committee wants to make could be considered as part of the 2016-17 budget deliberations in January and February. Aveta provided the board with an analysis of bids for various components of the pickleball project, including court paving and fencing. In May the board approved the permanent conversion of two tennis courts into eight pickleball costs at a cost not to exceed $25,000. The current surface on the two tennis courts needs to be extended by approximately two feet to accommodate the eight pickleball courts and the corners of the courts needs to be squared off. That, at least, was the view of former OPA General Manager Bob Thompson. He also had said that existing chain link fencing needed to be extended by about ten feet. Only one bid was received for asphalt paving of the pickleball court so the OPA sought out an alternative of concrete. In his report, Aveta said the asphalt bid was $13,500 while the concrete was estimated at a cost of $12,175. Two bids each were received for the fencing, one of $4,325 and another for $9,610, and for court painting, one of $12,800 and another of 9,620.

BOARD OF DIRECTORS

14 Ocean Pines PROGRESS Manklin Meadows

From Page 13 Aveta recommended, and the board approved, accepting the low bids for the various components of the work and moving forward with the pickleball project. Aveta said the fencing proposals were vastly different. Capital Fence’s proposal was for 120 linear feet of fence with one gate and included a three percent discount for a cash or check transaction. Eastern Shore Porch and Patio’s proposal was for 130 linear feet of fence with four gates. Capital Fence specified using a green vinyl coated chain link fence while Eastern Shore Porch and Patio’s bid did not specify if the fence is vinyl coated. The OPA sought to acquire several asphalt bids but was only able to get the one from Rock Bottom Paving. The concrete bid was provided by Harkins Contracting as an alternative to asphalt. Application of concrete is easier and does not require mobilization of the same equipment required for asphalt preparation, according to Aveta. The painting estimates differ in cost by about 25 percent. The primary reason for the cost differential is in the proposed application of an acrylic resurfacing prior to painting by Sports Builders, while American Tennis proposed to use three coats of acrylic color sealer to

achieve the same result at a lower cost. The conversion of two tennis courts for use as pickleball courts was approved by the board after the lone estimate for the overall Manklin Creek master plan proved excessive and directors starting searching for a less expensive way to add the courts. During an Aug. 26 board meeting, Aveta and then OPA General Manager Bob Thompson provided the board an overview of the now rescinded Manklin Creek Recreation Complex master plan. Aveta said the OPA reached out to more than 30 contractors seeking proposals for overall development of the complex, including pickleball and platform tennis courts, playground relocation, parking, fencing and site work, and stormwater mitigation, but only received one bid at more than $750,000. Thompson said two portions of the project drove up the cost, stormwater mitigation and court lighting. “We should have done more hardcore engineering analysis right up front,” he said. As a result, in March, Thompson proposed restructuring the project and completing it in phases. Thompson proposed phase one with four new pickleball courts, two platform courts, relocated parking lots and playground, and fencing. Since then the OPA has been revisiting the stormwater management plans, to no avail, and other elements in order

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BOARD OF DIRECTORS

September 2016

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to try to reduce the cost, which stills linger around $225,000. Directors specifically queried Thompson about the proposed relocation of the community-built playground and wanted to know about the scope of work for that portion of the project. Thompson responded that the playground needs to be rebuilt regardless of the status of the remainder of the Manklin Creek project because the supports on the structure are rotten. He said the replacement materials are already on hand but the OPA was waiting to repair the structure until the entire playground is moved. He said the support posts rotted due to poor drainage around the playground. That problem could be rectified by relocating the playground and improving stormwater drainage in the park. Thompson said relocating the playground will also allow for reconfiguration of the community gardens and parking lot. That shift, combined with installation of fencing, will improve pedestrian safety, he said. Director Brett Hill wanted to know if the OPA had contracts in place for any of the work. Thompson replied in the negative, saying that county project approvals for the stormwater management were still pending so no contracts had been been issued. It now appears that the OPA won’t need them.

Stevens wanted to know what would happen if the board opted not to pursue any portion of the project other than repairing the playground in its current location. “Suppose we just don’t do anything,” he said. He asked if the OPA would still need to do the stormwater management work. Thompson replied that the stormwater management is only necessary if any portion of the master plan moves forward. Just replacing the damaged portions of the playground equipment would not require stormwater management, he said. New platform tennis courts would require some stormwater mitigation, Aveta told the Progress after the meeting. Herrick asked about the removal of trees to accommodate the proposed playground relocation and stormwater management. He said there were earlier estimates that 25 trees would have to be cut. Thompson said the impact to trees has been reduced with removal of only a few trees necessary in the proposed area for the stormwater management pond. The playground has been configured to avoid tree removal, he said. “We specifically designed the playground to fit around the existing trees that are there, best we can.” Because of the board decision on Sept. 9, no trees from the site will have to be removed.

BOARD OF DIRECTORS

September 2016 Ocean Pines PROGRESS 15

Former GM offers family restroom for those who identify as transgender Board questioned timeline, budget for White Horse Park project, but approves it in Sept. 9 special meeting

starts in Ocean Pines, he unilaterally added the gender neutral family bathroom. “If you don’t know what you are, go to the family bathroom,” Thompson quipped. The attempted humor seemed to fall flat. No one laughed. The original designs for the 19 by 25 foot bathroom facility were presented to the board in February and a contract was awarded to the firm of Beach Construction at a cost of $102,400. The contract with Beach Construction was for a turn-key bathroom facility and the base bid included all site work, all structure work including electrical, plumbing, HVAC and all finish work ready for occupancy. That contract didn’t include the cost of engineering and plans, permits, power connection, water and wastewater connections, all of which were to be addressed and paid for separately by

By ROTA L. KNOTT Contributing Writer aitlyn Jenner will soon have her pick of restroom facilities should she pop into the Pines and visit White Horse Park. In order to accommodate non-gender specific individuals in need of a place to rest, or whatever nature calls them to perform, Ocean Pines’ former general manager added a third “family” unit to new restrooms being built in the park. The original project design called for separate male and female restrooms, but Bob Thompson, then OPA general manager, told the Board of Directors during an Aug. 26 meeting that the layout was modified to add a third option for those who find they don’t fit the typical options. He told the board “if you all follow the national news” they will know that restrooms for transgender individuals has become a hot topic across the nation. In order to head off the debate before it

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The Ocean Pines Golf Club is holding four-week golf clinics for women and juniors this month. PGA Director of Golf John Malinowski (pictured left) and golf course professional staff are providing instruction. A clinic for juniors on Saturdays from 10-10:45 a.m. started Sept. 10. Two golf clinics for women will also be offered this fall. A Thursday clinic for intermediate golfers and those wanting to brush up on their skills started Sept. 8. A Saturday clinic for women who are beginners or have minimal golf experience began Sept. 10. For more information, call 410-641-6057.

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BOARD OF DIRECTORS

September 2016

Board approves conversion of Huntington Park ball fields

he old baseball field at Huntington Park on Ocean Pines’ Northside will be repurposed for lacrosse and soccer after a unanimous Board of Directors vote during a Sept. 9 special meeting. The vote, on a recommendation by Acting General Manager Brett Hill, authorizes the removal of the existing ballfield equipment, adding new top soil, the planting of Bermuda grass, the design and installation of a new irrigation system, and fertilizing and aerating the field. The board unanimously voted to award the bid to Growing Solutions, the lower of two bids received, at a cost of $29,340, with a ten percent contingency for unanticipated expenses. Director Dave Stevens offered the motion to proceed with the project, on the recommendation of Acting General Manager Brett Hill. The conversion is expected to begin

White Horse Park From Page 15 the OPA. The anticipated cost for permits and utilities was another $28,000, bringing the total estimated project cost to about $130,000. In a Sept. 9 report to the board, Jerry Aveta, OPA facility manager, said a change order was submitted on Aug. 18 for an additional $2,800 to accommodate credits for HVAC and water heater and increases due to lengthening of the building by three feet, electrical and plumbing interfaces with the required sewer pump and to meet additional county requirements for insulation, attic access, and wall connection assemblies. Construction and plumbing permits were issued by Worcester County on Aug. 19 but an electrical permit has not yet been issued. The foundation footprint for the expanded facility has already been put in place. Consequently Aveta said the OPA cannot reduce the cost related to the additional length of the building. Additionally, he said the cost increase due to additional county requirements cannot be avoided nor can the expenses related to electrical connections. Water and sewer estimates are accurate but some savings may be attained through a competitive bid process, he said. The total estimated project cost of $130,961 is still under the $145,000 budgeted for this project in FY 15. Aveta recommended the board approve the change order requested by Beach Construction, initiate a competitive process for related water and wastewater work, and authorize payments to Choptank Electric and Worcester County to expedite project construction and

shortly now that the board has given its approval. The approved bid is more than $4000 over the $25,000 budgeted for the project, but the directors did not seem overly bothered by that. The Department of Parks and Recreation strongly supports the conversion, because it will be able to create soccer and lacrosse leagues that it can’t now accommodate, Hill said. Competitive baseball leagues have largely migrated to the Berlin Little League site on Route 113, on the southern edge of town, he said, meaning that Huntington Park isn’t needed for baseball. On a related proposal to repair and relocate playground equipment at the park, Hill was authorized to begin the RFP (request for proposals) process for relocating and repairing the equipment to the extent necessary. completion by Dec. 1. In a special board meeting Sept. 9, the directors unanimously approved the staff recommendation. During an Aug. 22 board meeting, Director Slobodan Trendic initially made a motion to postpone work on capital projects that included the White Horse Park restrooms to allow the board time to evaluate them at a special meeting. OPA attorney Joe Moore cautioned the board that the motion should relate only to matters to which contracts have not yet been awarded. If contracts are in place then the association “has a contractual obligation to go forward” regardless of what board approved the project. “It should be very carefully noted that if any obligation has been made, whether work has been started or not, in my opinion that is a breach of contract so you should make that very clear,” Moore said. Trendic quickly reversed course on his proposal to delay the White Horse Park bathroom project to avoid any breach of contract issue with Beach Construction. At the same, though, there was general agreement that the board needed a thorough review of project specs, something that Aveta delivered in some detail at the Sept. 9 special meeting. The board unanimously approved the project as presented by Aveta, including the modest $2800 change-over, with a ten percent contingency in the event of any unforseen expenses. Stevens proposed the contingency as a way of keeping the project moving, as he did with several other projects that the board reviewed and approved during the Sept. 9 meeting. With a contingency in place, it won’t be necessary to seek additional board approval for most unforseen expenses

September 2016 Ocean Pines PROGRESS

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By ROTA L. KNOTT Contributing Writer or more than a month, lady golfers have been locked out of their locker room at the Country Club as the Ocean Pines Association continues to try to resolve issues with water infiltration of the building. During the public comments segment of an Aug. 26 Board of Directors meeting, one member and golfer wanted to know what the problem is and what’s being done to address it. “We have water running in that side of the building, have for years,” said Bob Thompson, then OPA general manager. He said the OPA has been working to

Water infiltration continues at Ocean Pines Country Club, closes ladies’ locker room Board awaits update on overall condition of building address the problem and thought it was fixed but then the leaks started again. “There’s more than one area that needs to be addressed to fix the water penetration and all the other issues,” he said.

Attorney assures board of legal protections against most lawsuits Only ‘bad faith’ decisions will put directors in legal crosshairs, Moore says By ROTA L. KNOTT Contributing Writer fter swearing in new members of the Board of Directors during the Aug. 22 organizational meeting, attorney Joe Moore provided an overview of the laws and documents to which the Ocean Pines Association’s governing body is subject and the legal protections afforded its directors. Moore said the statutory law of Maryland provides the board members, who are considered volunteers, with immunities from legal action related to their decisions. “As a member of a board of a homeowners association you have statutory immunity from being sued,” he told directors. However, Moore said there can be exceptions to that protection if a board member is found to have acted in bad faith. “It’s not absolute” and the law will not shield individual board members in that case, he said. “While an officer or director is act-

BOARD OF DIRECTORS

September 2016

ing within the scope of their duties they may not be sued,” Moore said. Instead, the aggrieved party must sue the homeowners association. Moore said the OPA has a comprehensive set of insurance policies that include defense of the association and corporation from legal action. “We have used it at least on two occasions” since he has represented the association. Because of the protections provided by the state law, previous complaints against individual directors have been summarily dismissed by the court system.” Moore said “I haven’t had a court yet determine” that a board member acted in bad faith and could be subject to legal action. Moore said the Maryland Homeowners Association Act is the primary statewide legal document that governs the obligations and actions of the OPA. Ocean Pines is one of the largest homeowners association in the state, second only to Columbia. Ocean Pines is the To Page 20

Two problem areas have been fixed already. One of the causes was the buildup of asphalt along the side of the Country Club where the golf carts are located that directed stormwater under the building. Crews also discovered after removing siding on that same portion of the structure that the flashing was not properly installed around the windows and water was leaking in on the second floor as well. “So you had water intrusion in the building from up top and under the building,” Thompson said. A French drain was installed to help direct water away from the Country Club and it seemed to be working, Thompson said. However, during recent heavy rains there was water penetration on the same corner of the building, so “there may be something else wrong,” he said. Meanwhile, engineers Becker Morgan Group are wrapping up a revised engineering study of the entire Country Club facility. Completion of the report was anticipated for early September. Acting General Manager Brett Hill told the board in a Sept. 9 special meeting that Becker Morgan is running a little late in completing the study but that its delivery is imminent. The report may deliver a definitive verdict on whether the engineers recommend demolition of the building or whether it is still in good enough condition to allow a major renovation. A 2013 study was agnostic on that point. The OPA contracted with Becker Morgan to update a 2011 engineering study of the Country Club with an expanded scope of work that included the most current facility inspection, utility usage evaluation, mechanical recom-

mendations, code compliance and an executive summary. No progress had been made on expansion of a patio area or acquisition of furniture for the Tern Grille at the County Club as of the Aug. 26 special meeting of the Board of Directors. Thompson updated the board on outstanding capital projects and said that golf staff requested postponement of the patio construction and is still evaluating options for the furniture. Thompson said the golf staff did not want to extend the patio area at this time but does want to acquire additional furniture for the grill. He said they are evaluating several options including furniture similar to that at the Yacht Club swimming pool. “They are getting prices.” Director Carol Jacobs asked for clarification that “they’ve changed their minds” about the project and no furniture has been purchased based on that change of plans. “So we haven’t done anything is where we’re at,” Director Brett Hill added. Thompson said this was a project initiated by golf staff and golf members, and it is now being reevaluated by staff to determine the best approach. OPA President Tom Herrick pointed out that the board included the project in the fiscal year 2016-17 budget based on that request. He said the goal was to bring in additional revenue at the Tern Grill by creating a comfortable atmosphere for diners. Jacobs asked, “And what the board approved, they are now changing their mind about?” Thompson said it isn’t really a change; rather staff just hasn’t made a decision on the elements of the project. He said there was never a specific design for the patio or furniture selection. He said Landscapes Unlimited asked to postpone the patio expansion until other repairs are completed at the facility and the furniture is selected. However, Thompson told board members, “If you all say go build a patio, I’ll start next week.” Board members did not take him on his offer.

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September 2016 Ocean Pines PROGRESS

20 Ocean Pines PROGRESS

OCEAN PINES

September 2016

OPA slightly behind budget after first quarter Positive month in July cuts cumulative negative variance to just less than $23,000 By TOM STAUSS Publisher he Ocean Pines Association reversed the trend of the first two months of the fiscal year and performed better than budget in July. According to Controller Art Carmine’s monthly financial report for July, the OPA recorded a $51,972 positive operating fund variance to budget of $51,972, with a departmental net positive of $45,214 and new capital expenditures under budget by $6,758. Through the end of July, which marked the end of the first quarter of the 2016-17 fiscal year, the OPA had a negative operating balance of $22,803. Revenues were under budget by $170,409 – much of that at the Ocean Pines Yacht Club – while total expenses were less than budgeted by $120,971. New capital expenditures were under budget by $26,635. There are essentially three ways to look at financial performance. One is to measure actual results against budget, with either positive or negative variances possible. Another is actual

Ocean Pines Association financial results by department for July 2016

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ports posted on the OPA Web site under documents also include detailed breakouts for each amenity department, along with year-to-date numbers for the previous year, making year-over-year comparisons possible. Year-over-year performance is the third way to measure financial performance. The OPA runs its fiscal year from May 1 through April 30 of the following year.

Legal protections From Page 18 only to Columbia. Ocean Pines is the largest community in Worcester County and is not a municipality. One of the areas that the Maryland Homeowners Association Act addresses is the requirement for open meetings. Moore said closed board meetings are intended to be limited for specific purposes germane to governing that may not be appropriate for open discussions, including personnel and contract matters. At one time the act allowed board’s to hold closed meetings by a simple majority vote, but that was changed, Moore said. The OPA is also subject to its corporate charter, which was updated in November 2013, Moore said. At that time a comprehensive amendment and reinstatement was filed with the state Department of Assessments and Taxation. “I call it kinda the skeleton of your corporate organization,” Moore said of the charter. The OPA also has a series of restrictive covenants within the subdivision that govern the use of properties in the 19 individual sections of the community. Older sections of Ocean Pines are sub-

All amenities except for the three racquet sports recorded operating surpluses in July, led by Beach Club food and beverage operations ($81,408), the Yacht Club ($64,027) and Aquatics ($53,941). Marina operations were $31,790 in the black, followed by an $11,210 surplus for golf and a $5,208 surplus for Beach Club parking. The biggest loser for the month was

results, which can be surpluses or deficits. Both measurements are presented in OPA financial reports for a particular month and cumulatively for the entire fiscal year. The monthly financial re-

ject to the original restrictions implemented by Boise Cascade while newer sections fall under the covenants for the Villages at Ocean Pines as developed by Balfour Corporation in the 1990s. Moore characterized the restrictive covenants as a contract between the association and its members. “It is a limitation on your authority but it is also a denotation of your authority with respect to matters such as maintenance of property and maintaining value in the community,” he said. Moore said the two types of restrictive covenants are similar but those for the Villages at Ocean Pines (Balfour sections) were designed to “create an ambiance that was unique to each section.” The other difference is that the documents for the newer sections allow for an appeal process from the Architectural Review Committee to the Bboard of Directors while the older covenants do not contain that provision. One of the most frequently referenced and utilized governing documents are the OPA’s bylaws, which were last revised in 2008, according to Moore. “They are very comprehensive in their content and really are a good workable document.” He called the bylaws “the flesh on the skeleton of the corporate charter” and the method by which the

OCEAN PINES July financials From Page 23 pickleball, with a deficit of $4,577. Platform tennis had a $1,402 loss while tennis recorded a $900 deficit. Compared to budget, aquatics was July’s top performer, with a $15,847 positive variance to budget. Marina operations were close behind with a $15,183 positive variance to budget, followed by Beach Club parking’s $5,595 positive variance and the Beach Club’s $1,410 positive variance. All other amenities recorded negative variances to budget for the month. Golf ’s negative variance was $9,676, while the negative variance for the Yacht Club in July was $2,503. Racquet sports missed their budgets in July by nominal amounts – pickleball by $1,481, tennis by $610 and platform tennis by $87. For the first quarter of the fiscal year, aquatics was the best performer relative to budget, with a $27,956 positive variance, followed by marinas ($22,885) and Beach Club parking ($11,923). All other amenities were behind budget for the first quarter. The Yacht Club’s negative variance was $116,377, followed by golf (-$26,354) and the Beach Club (-$6,833). Racquet sports’ cumulative negative variances were $4,478 for tennis, $1,839 for pickleball and $1,777 for platform tennis. All amenities were in the black for the first three months of the fiscal year. The

September 2016 Ocean Pines PROGRESS top three amenities relative to actual net performance were Beach Club parking, marina operations and aquatics, in that order. Beach Club parking produced a $352,387 surplus through July, followed by marina operations’ $205,927 and aquatics’ $194,784. Beach Club parking was ahead of last year’s net by $5,699. Marina operations were up year over year by $15,127, while aquatics was $2,174 behind last year. The Beach Club food and beverage operation, with a $98,327 operating surplus through July, is having its usual respectable season, almost identical to last year through July. It was off last year’s pace by a mere $48. The Yacht Club, with a $59,017 surplus through July, was off last year’s pace by $90,110. But August traditionally is a solid month financially for the Yacht Club, and it should have a cumulative surplus through Labor Day weekend in excess of $100,000. Last year, the OPA kept the amenity open on a reduced schedule throughout the winter months, and the summer surpluses were wiped out by the end of the fiscal year at the end of April, resulting in a deficit for the year. One of the critical decisions facing Interim General Manager Brett Hill and the new board is whether to keep the amenity open during the off-season and, if so, with what level of staffing. The Yacht Club experienced a rather significant year-over-year drop in revenues through July and was well un-

der budget in total revenues. Last year through July revenues totaled 848,027. Revenues this year were only $728,198, a $119,829 decline. The Yacht Club was $283,802 behind budget in gross revenues through July, $178,560 behind in net revenues. The effect on the bottom is somewhat attenuated because expenses declined along with revenues. The variance between actual and budgeted revenues was $62,184 through July. Golf and related food and beverage operations, despite a solid month in July, is not doing as well this year as it did a year ago. The cumulative $39,811 surplus through July contrasts with a $93,513 surplus last year, a $53,702 decline. Golf missed its first quarter budget target by $26,354. All revenue categories except one experienced year-overyear declines. The exception was merchandise, which recorded a $42,727 surplus through July this year compared to $38,623 a year ago. Cumulative greens fees dropped from $190,275 through July last year to $181,702 this year. Cart fees declined from $183,755 to $177,594, and driving range fees dropped from $13,232 to $11,229. Member dues, continuing a worrisome trend, declined year-over-year from $39,760 to $37,040. As of July 31, there were just 107 dues-paying household golf memberships in Ocean Pines, compared to 119 the previous year.

There are 19 lifetime golf members that add to that total, but none are current dues-payers, all having paid in advance for lifetime golf privileges. Revenue from lifetime golf members were used to pay for new golf greens several years ago. Golf food and beverage revenues declined $84,946 through July of last year to $79,711 this year. Two of three racquet sports are performing close to what they did last year. Tennis recorded a $17,461 surplus through July this year compared to $17,502 a year ago. Platform tennis’ surplus declined from $7,885 a year ago to $6,542 this year. Pickleball’s drop has been more significant, from $7,614 this year to $4,897 this year through July. New pickleball courts scheduled to replace two tennis courts in the Manklin Meadows recreation complex in the near future could help to restore pickleball’s outlook in the current fiscal year. Reserve Summary – The OPA through July 31 had $8,959,918 in reserves, comprised of $6.15 million in major maintenance and replacement reserves, $1.85 in bulkheads and waterways, $549, 398 in roads and $408,386 in operating recovery reserves. Balance Sheet – As of July 31, the OPA had total assets of $36.7 million, up from $35.025 million a year previous. The assets were matched by $1.64 million in liabilities and $35.06 million in owner equity. Cash on hand as of July 31 was $1,829,639, with short term investments totaling $10.553 million.

22 Ocean Pines PROGRESS

OCEAN PINES

September 2016

MEMBERSHIP REPORT

Aquatics, beach parking, pickleball sales exceed last yearâ&#x20AC;&#x2122;s Golf membership continues downward trend the same period last year, 2,453 passes had been sold. With 824 total memberships sold through July 31, aquatics is well on its way to exceeding membership goals for the year. With August remaining for weekly memberships, a major driver of volume and revenues, aquatics through July 31

had met 91 percent of its annual goal of 989 memberships. There were 824 aquatics memberships sold through July 31, compared to 803 a year previous. Aquatics was on a pace that could have achieved the membership goal in August, as it needed slightly more than $25,000 to hit the

platform tennis have lagged. Beach Club parking passes, sold in combination with four pool passes for the Beach Club pool, hit 101 percent of budget at the end of July, with August remaining for additional sales. A total of 2,466 parking passes were sold through that period, for a total of $312,701 in revenue, $2,587 more than budget. For

By TOM STAUSS Publisher nterest and use of Ocean Pinesâ&#x20AC;&#x2122; amenities as measured by memberships purchased by property owners and renters was mixed in the first three months of the fiscal year, with aquatics, Beach club parking and pickleball off to respectable starts while golf, tennis and

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OCEAN PINES

September 2016 Ocean Pines PROGRESS

OCEAN PINES BRIEFS Food truck remains in current budget

Ocean Pines property owners who keep tabs on the finances of the Ocean Pines Yacht Club have noticed that monthly financial reports prepared by Controller Art Carmine reflect the fact that a food truck was included in the budget for the current fiscal year. The approved operational budget for the Yacht Club included both revenue and costs for the food truck, The rub, as it might be called, is that the board of directors never approved the actual purchase of a food truck, tabling it when former General Manager Bob Thompson brought it to the board for approval shortly before the beginning of the summer season. That’s the way it can happen with the OPA’s two-stage process for approving capital expenditures. First they need to be authorized, which normally occurs by including estimated costs for specific items in the capital budget in February. The second stage is when a specific proposal is brought before the board for approval by the general manager during the new fiscal year, after the typical bid and vetting process. Depending on any number of factors, a board can decide not to approve a requested expenditure even though it’s been authorized in the capital budget. In the case of the food truck, even

though its purchase was effectively vetoed by the board, it continues to show up in the monthly Yacht Club operations recap, with both revenue and cost at zero. The financial report also shows a budgeted $92,750 in revenue for the truck against $32,462 in food and drink costs. At the new board’s inaugural meeting Aug. 22, newly elected director Brett Hill had proposed a motion to delete the food truck line items from the monthly financials for the Yacht Club, on the premise that since the purchase of a food luck is unlikely to occur this year, keeping it in the operational budget doesn’t make much sense. His motion was tabled until the new board’s second meeting on Aug. 24, when Hill opted to take it off the agenda for consideration. It might not have fared well had it proceeded to a vote. Directors Dave Stevens and Pat Supik in emails or conversations with the Progress indicated that they were uncomfortable with taking the food truck out of the budget. Their concern was with precedent set by making adjustments in a budget months after approval. Their preference seemed to keep it in the budget, even though there seems to be little interest in following through with a food truck purchase by a board majority this year. Thompson recently indicated that he was reserving the right to bring a new

purchase proposal to the board this coming spring, but that option has been foreclosed by the fact that Thompson no longer is the general manager. As a candidate and now acting general manager, Hill has no interest at all in pursuing a food truck. It’s been effectively taken off the table for good.

Street name change OKd in Steen project

Developer Marvin Steen’s Triple Crown Estate residential project remains on the county’s active project docket, with a preliminary plat approved by the Worcester County Planning Commission Sept. 1. The planned 30-lot duplex with 60 living units total will soon take root on the northside of Gum Point Road, east of Racetrack Road adjoining Ocean Pines’ Section 10, with internal access within Ocean Pines from an extension of King Richard Road. In order to make the agenda of the Planning Commission’s Sept. 1 meeting, Steen needed the Ocean Pines Association to acquiescence in a street name change within the planned subdivision, that will become part of Ocean Pines at a later stage of development. To avoid confusion with a similarly sounding

Membership report From Page 22 budget target. Of the three racquet sport amenities, only pickleball memberships were ahead of last year through July 31, with 59 memberships sold compared to 58 a year ago. Pickleball through July 31 had met 60 percent of its goal of 106 memberships for the year. Tennis memberships dropped from 124 through July 31 last year to 110 this year, 81 percent of goal. Platform tennis year-over-year dropped from 68 to 56, 70 percent of goal. In total, racquet sports memberships dropped from 252 through July 31 last year to 227 this year. In dollar numbers, the shortfalls in the racquet sports are modest. Through July, tennis needed only $6,595 to make its membership goal. Platform tennis needed $4,430 while pickleball was $7,500 short of the budget goal. Golf membership continues is slow progression on a downward trajectory, with only 107 memberships sold through July 31 this year compared to 119 a year ago. There are 19 current lifetime members this year, the same as last year. Golf has reached 80 percent of its membership goal through June 30, with little likelihood of additional memberships sold this fiscal year. Golf membership revenue is $38,485 short of goal through July 31.

24 Ocean Pines PROGRESS

OCEAN PINES

September 2016

OCEAN PINES BRIEFS From Page 23 street in Ocean Pines, the county fire marshal wanted to change Winner’s Circle Drive on the proposed project plat to something less duplicative. Henceforth the street will be called Preakness Road. On a motion by Director Slobodan Trendic at the Board of Directors Aug. 24 meeting, the directors agreed to the name change on a 7-0 vote.

Hill withdraws motion on bulkhead staging area

In an effort to show responsiveness to the concerns of residents whose canal-front homes overlook a section of the Swim and Racquet Club campus that has been used as a bulkhead replacement staging area by Fisher Marine, newly elected Ocean Pines Association director Brett Hill had proposed a motion at the board’s Aug. 24 special meeting to eliminate, once and for all, what detractors regard as an eyesore and an environmental hazard. Hill decided to withdraw his motion early in the meeting, telling his board colleagues that he wanted the topic to be dealt with by the board at its scheduled meeting on Sept. 21. He noted that the staging area site has been substantially cleaned up, although in early September a rusty workboat was docked on site.

B&F Committee member Working on golf plan

Jim Beisler, a member of the Budget and Finance Advisory Committee, has, like many others, noticed the steady decline in golf membership in Ocean Pines. Excluding lifetime memberships,

that don’t generate new member dues revenue for the OPA, there are now 119 households in Ocean Pines with some sort of golf membership. At the committee’s Aug. 24 monthly meeting, Beisler mentioned he’s been working on a plan to boost membership, something that the golf course management company, Landscapes Unlimited, also has been addressing, with not much to show so far. Beisler has shared the outlines of his golf membership plan with committee members, but he declined to share it with the Progress, suggesting it still needed some work before he would make it public. But he didn’t deny the plan would focus on the large number of households in Ocean Pines with golfers who take their business elsewhere, to the many other golf courses in the area.

Hermine leaves OP mostly unscathed

The Ocean Pines Association under Acting General Manager Brett Hill was geared up for Hurricane Hermine’s adverse weather on Labor Day weekend, but the tropical storm for the most part bypassed Ocean Pines. Friday night produced some heavy rains, and Saturday was overcast with intermittent rain, but by Sunday skies had cleared and community pools and the Yacht Club were open. Friday night’s Yacht Club live entertainment shifted indoors, avoiding what some feared would be a complete wash-out for the weekend. The OPA issued several Hermine-related weather alerts to OPA members via email and a Web site posting over the weekend. “While the weather outside doesn’t

look like Ocean Pines is still in a Tropical Storm Warning, WE ARE,” said Hermine Alert #2 on Sunday, shouting an apocalyptic warning to residents despite the pleasant outdoor conditions.

Herrick to allow dialog among directors, residents

Depending on the year and the disposition of directors, dialog among directors and Ocean Pines residents attending Board of Directors meetings is either verboten or allowed. Most board meetings include public comments on the agenda, with statements often limited to five minutes. To help prevent board meetings from becoming marathons lasting three hours or more, presiding officers – usually the OPA president, sometimes a surrogate – tell OPA members not to expect an immediate answer to questions or opinions. In recent months, when former OPA vice-president Cheryl Jacobs presided over meetings in lieu of former president Pat Renaud, she took a hard line against those who expected immediate responses to their comments or inquiries. But an election can bring change to the OPA governance, in matters large and small. Newly anointed OPA President Tom Herrick, in one of his actions presiding over a board meeting, said within limits he would allow some dialog between residents and board members in real-time during Public Comments. Herrick indicated willingness to provide answers to questions when somebody in the room could provide them.

Pines’ Aquatics to host triathlon

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Sprint Triathlon is scheduled for Saturday, Sept. 17 at 8 a.m. at the Swim & Racquet Club Pool, 10 Seabreeze Road in Ocean Pines. It will consist of a quarter-mile swim, a 6.2-mile bike ride and a 1.5-mile run. Twelve three-member teams will be competing. Each team member will compete in all three events before tagging off to the next team member. Each participant will receive a longsleeved “finisher” shirt, and food and drinks will be provided. The cost is $105 per team. A $35 deposit is required to hold the team’s spot with the balance due prior to the event day. Registered team members may also swim at a reduced rate of $4 a visit through Sept. 16. A team representative meeting will be held on Monday, Sept. 12 at 6 p.m. at the Swim & Racquet Club Pool. Instructions and a course description will be given at that time. Teams should arrive at the pool at 7 a.m. the day of the event to register and check in. Volunteers are needed to assist with the event. To volunteer, email cphillips@ oceanpines.org. For more information or to register, contact the Ocean Pines Aquatics Department at 410-641-5255.

Ocean Pines to offer free health seminars

The Ocean Pines Recreation and Parks Department will host a variety of free health-related seminars in the month of September. The seminars will be held at the Ocean Pines Community Center, located at 235 Ocean Parkway in Ocean Pines. Back in Action Physical Therapy will hold a balance seminar on Monday, Sept. 12 from 12:30-1:30 p.m. The class will teach ways to improve safety in the home and community, strategies to improve balance and the role of strength, flexibility and endurance to help reduce falls. Then on Tuesday, Sept. 13 from 11 a.m.-noon Home Instead Senior Care will host a seminar on aging and how it affects the eyes. Additional seminars will be held in October and November. Back in Action Physical Therapy will return on Monday, Sept. 19 from 12:301:30 p.m. with Kappes Wellness Centers to present a seminar on the difference between chiropractic and physical therapy. On Monday, Sept. 26 from 12:30-1:30 p.m., Back in Action Physical Therapy will share the negative health effects of poor posture and strategies to improve it. Although there is no cost to attend these seminars, spaces are limited and advance registration is required. For more information or to register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

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September 2016 Ocean Pines PROGRESS

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26 Ocean Pines PROGRESS

OCEAN PINES

September 2016

Sports Core pool upgrades

The Ocean Pines Association’s indoor pool has been undergoing major improvements since July, including pool resurfacing, a new stepped entry, and installation of a rubberized mat decking material. Pictured is the work at various stages of completion. The Sports Core is scheduled to reopen on Monday, Sept. 12, for regular activities, including lessons, classes, lap swimming and general use.

Sports Core indoor pool reopening Sept. 12 New stepped entry, Diamond-Brite surface, rubberized deck are part of transformation

fter two months of extensive improvements that closed the pool for the summer beginning on July 11, the indoor Sports Core pool will reopen to pool members and fee-based

users on Monday, Sept. 12, as scheduled. The work was completed by two contractors, Pearl Contracting and Pool and Spas, while all of the other seasonal swimming pools were open during a hot summer season. Because rainy days were at a minimum this past summer, the OPA lost relatively little business by not having an indoor pool open as an alternative. OPA Aquatics Director Colby Phillips told members of the Aquatics Advisory Committee in a Sept. 7 meeting that she and her staff are extremely pleased by the transformation, and that the two pool companies worked well together in accomplishing the goal. Users will immediately notice a new, stepped entry in an area formerly occupied by a pool slide. A new, safer pool slide has been installed on the side op-

posite the stepped entry. Users will also notice the new rubberized, multi-colored rubberized decking surface, along with the new Diamond-Brite plaster surface and perimeter grip. Less noticeable, because they’re actually hidden by the new decking surface, are 12 new skimmers. A new lift chair and safety railing between the deep end

and stepped entrance area have been installed. The pool passed its state inspection with flying colors on the morning of Sept. 9. A private swimming lesson took place in the new stepped entry area that afternoon. The Board of Directors during a Feb. 25 meeting approved $255,634 in con

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From Page 3 Worcester County Commission for Women initiative called “Empowering Women Scholarship, the Friends of the Women’s Commissionare selling a limited number of raffle tickets at $25 for a chance to win cash and gas cards.

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OCEAN PINES

September 2016 Ocean Pines PROGRESS

The new stepped entry in various stages of construction.

Sports Core pool From Page 26 tracts for the project, including $196,866 to Pearl Pools for pool improvements and $58,768 to Pools and Spas for pool decking. The contractors beat their Sept. 10 deadline by several days. During the two-month period when work will take place, the check-in area at the Sports Core pool remained open to handle inquiries, in some cases to advise pool users that four outdoor pools were available for Aquatics members and others. Visitors could also see the work in progress. The pool expansion and improvements included replacement of all 12 skimmers, tile work, depth markers, lining and demarcation and new Diamond-Brite plaster. The project enlarged the pool in the shallow area by about 114 square feet. Deck improvements include installing a rubber chip surface around the pool area and the entrance area to the pool. The enlarged pool area will allow the Aquatics staff to better its growing swim lesson program, lessening the impact on pool usage when classes are in progress. Filter replacement was suggested by

state officials during their review of the project, and the OPA implemented the suggestions, increasing the project cost by about $9,000. The old pool slide was removed as part of the project, with a new one, funded separately in the 2016-17 capital budget, located in the area of the decking where guards used to sit. The new slide has an estimated cost of $17,500. The Ocean Pines Public Works Department also completed some renovations to the Sports Core bathhouse as part of the project, converting a lifeguard rest area into a new office for Phillips. Off-duty guards will still have an area where they can rest up during their breaks. Last year the OPA opted to postpone refinishing the Sports Core swimming pool after receiving just two bids with vastly different prices for the work. Due to the low number of bids, coupled with a potential for other improvements to the pool, former General Manager Bob Thompson recommended putting off the project until the current fiscal year. The Aquatics Department invited aquatics members to an open house at the pool on Saturday, Sept. 10, from 3 to 5 p.m.

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OCEAN PINES

September 2016

Request for legal services posted on OPA Web site Moore and his law firm eligible to reapply by Sept. 20 deadline

By TOM STAUSS Publisher he Ocean Pines Association is prospecting for legal counsel, issuing a request for proposals in late August for attorneys or law firms licensed in Maryland. Proposals are due in to OPA Interim General Manager Bretty Hill by Sept. 20, with a board vote expected within two weeks after that. The OPA has not made a decision to replace OPA corporate counsel Joseph Moore or his law firm, and he is eligible to reapply. Moore has been the OPA corporate counsel or general counsel, depending on the nomenclature in place at various times, since 1983. He was reappointed to the position on an interim basis at the Board of Directors’ organizational meeting Aug. 22, when he was informed that the board wanted to test the waters for possible alternatives. There was no criticism of Moore’s many years of service to the OPA. Members of Moore’s law firm perform some services on behalf of Moore when he is unavailable – he was traveling out

of the country during the OPA annual meeting, for instance – or if he opts to delegate certain functions to associates. The same interim appointment was

made for the OPA’s auditing firm, TGM Group of Salisbury, but a request for proposals (RFP) had not been posted by the second week of August. The RFP for

legal services is available for review and download on the OPA Web site. Two years ago, the board of directors

Women’s Club officers

The Women’s Club of Ocean Pines recently announced new officers for 2016-2018. Pictured (left to right) are Irene Daly, treasurer; Joyce Piatti, first vice-president; Susann Palamara, president (first chair); Donna Potenza, president (second chair); and Gail Reese, secretary. Kay Hickman (not pictured) is second vice-president. The Women’s Club promotes civic and social activities, including educational and community outreach opportunities, for its members to benefit the community. In 2016, the Women’s Club awarded $3,000 in scholarships and donated $1,800 to community organizations. To become a member, call Joyce Piatti on 410-3020559. The Women’s Club meets the first Thursday of the month (except July and August) at 10 a.m. in the Ocean Pines Community Center. Annual dues are $10.

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OCEAN PINES

September 2016Ocean Pines PROGRESS

Panel member, Thompson spar over Yacht Club revenue Former GM says ‘less fancy food’ could spur rebound By TOM STAUSS Publisher he Aug. 24 meeting of the Budget and Finance Committee in some respects was a reprise of the committee’s meeting in July, when committee member Jim Beisler and General Manager Bob Thompson sparred over significant revenue declines at the Ocean Pines Yacht Club. The two continued their sparring at the August meeting, with Beisler at one point acknowledging that he was getting upset over Thompson’s seeming inability to acknowledge that the reduced revenues, and Beisler’s theory that the primary reason if lack of support of the amenity by year-round residents, was a cause for concern. Thompson initially downplayed the revenue decline, but he responded to Beisler’s concerns by conflating actual net performance so far this year with a

Legal services From Page 28 voted to draft and post a RFP for legal services, but nothing much came of it. Most other directors tended to see no reason to explore alternatives. There was no RFP posted for auditing firms despite the board vote that called for one. Moore continued in the corporate counsel role that year, with no one responding to the RFP. Last year, he and TGM were reappointed with no discussion by the board during its organizational meeting. The just posted RFP for legal services is much more concise than the one posted two years ago. The RFP calls for a contract of service to run from Oct. 1 to April 30, 2018, with an option for up to three extensions of one year each, for a total of five years. The OPA is asking for a monthly retainer fee and hourly fees for service to be

year-over-year comparison of gross revenues, which was Beisler’s point of reference. Citing the Yacht Club’s bottom line numbers, Thompson pointed out that the Yacht Club, which recorded a $59,017 net surplus through July 31, was $116,377 behind budget for the year. But he tried to explain much of that away by noting that the controversial food truck, which remains in the budget as zeroed out line items under both revenues and costs, comprises a large percentage of that $116,377 negative variance to budget. “Take the food truck out of it, and the actual negative variance is $56,288,” Thompson told the committee, whose members weren’t buying the explanation. The year-over-year comparison for revenues, which Thompson refused to address, underscores the point Beisler was trying to make. Through July 31 of last year, gross Yacht Club revenues were $848,027, contrasted with this year’s $728,198, a rather significant decline of $119,829. That’s a year-overyear drop of 14.1 percent. After Beisler told Thompson that he was getting upset because he thought the general manager was “skirting” the issue of reduced revenues, Thompson repeated previous assertions that bad weather in June had a lot to do with the revenue decline and that the Yacht Club had done a good job of managing expenses in the face of declining revenues. On that point, the committee agreed. But member John O’Conor said the Yacht Club could never “make a profit” if “you’re not selling” food and drinks in sufficient quantities. “The concern is that revenues aren’t growing,” he said. Beisler then repeated his assertion that he had made at the committee’s July meeting. Year-round residents have stopped coming to the amenity in the numbers needed to grow revenues, he said, and he asked Thompson again for why that might be happening. Thompson opined that the Yacht Club’s previous emphasis on fine dining

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might have turned off some residents who prefer less “fancy” food, a situation that has been remedied by the recent departure of the chef, Thompson said. The sous chef who was promoted to take over the top slot isn’t into “fancy” menu items to the same degree as his predecessor, he told the panel. “Not as much as an artist,” Beisler quipped, to which Thompson responded, “that’s a good way to put it.” He told the committee that a “slow, steady approach” to improving the ex-

perience at the Yacht Club was the way to proceed, likening the amenity to an ocean liner that can’t be turned quickly in a new direction. He said the key to success at the Yacht Club will be continued control of labor costs, a surge in banquet business this fall, consistency of food quality, “bringing the menu down a notch” to conform to local tastes, and making décor changes. Beisler seemed satisfied with that answer. “I think that’s what needs to be done,” he told Thompson.

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Hill settling in as acting GM, meets with department heads From Page 1 rick – in voting to take Ocean Pines in a new direction sans Thompson. He impressed his like-minded colleagues to such a degree that there was no disagreement among the new majority of directors that he was the one to fill the interim general manager role. Traditionally, the OPA president has served as acting general manager whenever a vacancy occurs, but in this instance Herrick was more than willing to let Hill step in. Indeed, there have been some reports that Herrick, who needed some persuading to assume the presidency, would only agree to take the job if stepping in as acting general manager, when and if a vacancy occurred, was not part of the grand design. Little more than a week into his interim role, Hill has settled in. He reported a “fairly smooth” hand-off of responsibility from Thompson to himself, crediting Herrick and Executive Secretary Michelle Bennett, who served in the same role under Thompson, for the seamless transition. “I’ve had little issue in picking up and running with the daily operations of the association,” he told the Progress in an email interview. The weekend after learning that his contract with the OPA had been terminated – the result of a 4-3 vote in closed session of the board on Aug. 26 – Thompson spent the time cleaning out his office in the administration building. The desk furniture and computer were his and were removed without incident. They’ve not been replaced and Thompson’s office at present is essentially unused. “Michelle has ordered some shelving and cabinets to organize the files Bob had stored in his furniture, but I am leaving a desk and other furniture to the permanent GM to purchase and set up as they might see fit,” Hill said, adding that he is using the Board Room in the Administration Building as a temporary work station as needed. Hill said he maintains a personal office in West Ocean City for his full-time job with FTS Fiber, where he is chief executive officer and board chairman. He finds the dual-office arrangement so far is working out, as “most of my time with the Ocean Pines team members is spent with them in their respective offices.” Hill, who is serving as acting general manager as an unpaid volunteer, ended up spending roughly 40 hours working for Ocean Pines in his first week as general manager. “I can’t really say any day was in particularly long,” he said, although “the threat of the storm definitely made Friday (the say the remnants of Hurricane Hermine arrived in Ocean Pines) seem longer. Fortunately, we dodged a bullet,

and ended with a clear, albeit windy, Labor Day.” The key to making the interim position work, without taking away from his full-time hob with FTS Fiber, is to rely heavily on personnel in place in Ocean Pines, including all the department heads he inherited from Thompson. In his first week on the job, Hill said he tried “to keep myself local to Worcester county as much as possible, but going forward, as I was operating since I moved here full time last June, I will end up in this area three to four days per week, and travel back to my main office in Monkton, MD, or to customers in the mid-Atlantic area one day or so per week.” The first week as acting general manager, most of the time was spent in Ocean Pines, only ten minutes away from his main office in West Ocean City. “It was important this week for me to meet with all staff one on one, and make sure everything was continuing without issue during the transition,” he said. To minimize disruption and to allow time for staff to deal with the change in leadership, Hill said he is “just asking the staff to continue performing their jobs as they have been in the past. I have been very impressed by the team here.” Hill said that there are no current plans to appoint someone from within the staff as an assistant general manager, someone who might be in charge when Hill is away. “At this point, there are no plans to redirect anyone into an assistant GM position. The staff has been very cooperative, and we look forward to this being an easy transition as we pursue a permanent replacement for the GM position,” he said. That search has already begun, perhaps more quickly than anyone imagined it would. “At the request of the board president, I had a posting drafted for a replacement GM, which was reviewed by all board members, and it posted on Friday, Sept. 2,” he said. Trendic drafted the request for information from interested applicants, as he did for another open position, that of corporation counsel. Hill said the evaluation and selection process will be managed by the board of directors. Hill said that the board shortly will be reviewing a draft of a request for proposals for management firms, which is the way most if not all of the neighborhood sub-associations in Ocean Pines run their day-to-day affairs. Herrick had proposed looking into the management company option some months ago, only to have a then board majority reject it on a 4-3 vote. Considering both options does not mean the board is predisposed toward either one.

Hill said the outside management option should not alarm OPA department heads. It does not mean their jobs are in danger, he said. A general manager is still in place to interact with department heads. The board will decide at some point which approach is better, and that may to some degree depend on the quality of applicants. On a number of issues that have been on the board radar screen for some time, Hill said that • he would not be pursuing any budget modifications for the controversial food truck promoted by his predecessor. At the same time, there is virtually no chance that Hill or the newly reorganized board of directors will attempt to authorize a food truck in the current fiscal year or include it in the budget for 2017-17. There is a solid majority of directors who oppose it. • since he’s only had a “brief period of time to discuss Yacht Club operations with (Food and Beverage Manager) Jerry (Lewis) and his team, I have no plans currently to make any changes. Jerry is working with me to provide plans for the coming months, and given the crowds on both Friday and Saturday night of this past (Labor Day) weekend, I think we were given a small glimpse of the potential, even in the off-season, of what the Yacht Club can do.” • he is “working with President Herrick to make sure Landscapes Unlimited (the golf course management company) and our golf staff are given the support they need to deliver the best possible experience for the members and residents of Ocean Pines.” Herrick told the Progress recently that he had appointed himself as the board liaison to LU, and that golf oversight would return to the model employed by former president Dave Stevens in 2014-15. There was a three-person golf group in place during Stevens’ tenure as president, one board member and two resident golfers. Herrick has not yet named the individuals that will join him on the golf oversight group. • contrary to rumors, Fisher Marine has not been told to remove its equipment from the staging area at the Swim and Racquet Club. At the same time, the contractor is in the process of removing its equipment from the site, with all of it out by no later than Sept. 12, Hill said, eliminating an eyesore that has been the source of persistent complaints from homeowners who live across the canal and river from the staging area. Hill said that any additional bulkhead replacement will be the result of a bidding process. In recent years, Fisher Marine has been given annual extensions at a guaranteed per foot price, without new bidding, a process that some new directors have found to be unacceptable. The new board has acted quickly to end a practice of no-bid professional contracts, voting recently to draft and post requests for proposals for both legal and auditing services.

$31,000 bonus awarded GM roils board From Page 1 well had he continued as general manager. Renaud, who recently resigned from the board for reasons that he said were unrelated to the bonus controversy, took responsibility for failing to disclose the bonus calculation to the entire board. He distributed copies of the bonus calculation to the new board at its organizational meeting in August, and that document roiled the waters even more, as it indicated adjustments to the original performance goal that made it possible for Thompson to reap a bonus that he would not have been entitled to without them. Renaud, in a telephone interview with the Progress shortly after he submitted his resignation to the board, said he was unaware of the contract provision relating to consultation with the entire board at that the time he signed off on the document. “I asked (OPA Treasurer Tom Terry) whether the contract said board approval was needed to approve the bonus, and he said it didn’t,” Renaud said, adding that he didn’t ask Terry whether the contract mandated board consultation and Terry didn’t offer that information. Renaud said that Terry advised him that he should provide copies of the bonus calculation to the entire board but Renaud said he “forgot” to do so. “For that, I apologize,” he said, adding that consulting with the full board would not have changed anything, alluding to the fact that a board majority – Renaud, Terry and directors Cheryl Jacobs and Bill Cordwell – would have been fully on board with paying the calculated bonus, including the adjustments to the goals that made the bonus possible. In an email to the Progress, Terry took responsibility for calculating the bonus, but his response left open the possibility that he might have had some help. Then Assistant Treasurer Pete Gomsak, who Terry praised during the annual meeting as someone who had been of great assistance during Terry’s year as treasurer, told the Progress in email that he had not been involved in calculating the bonus. “I was not involved in the detailed calculation …” Gomsak wrote, which seemed to suggest that perhaps he had reviewed it with Terry before or after it was passed on to the controller and auditors for review. “Remember, I’m not a Board member,” as if board members would necessarily have access to information before he did. “I do know that the calculation of the amenitybased portion of the performance bonus was reviewed with the auditors, as is normal.” But Gomsak seemed aware of the amenity bonus and its amount before any board member of the then minori-

COVER STORY

32 Ocean Pines PROGRESS September 2016 Bonus controversy From Page 31

$31,000 Thompson bonus roils board; new acting GM calls it ‘disturbing’ Failure to involve entire board in reviewing the bonus violated language in former GM’s employment contract

By TOM STAUSS Publisher he sudden emergence of a previously undisclosed $30,939 bonus awarded Former General Manager Bob Thompson for amenity performance in the 2015-16 fiscal year roiled the final weeks of the Board of Directors term that ended with the Aug. 13 annual meeting and continued as new directors and a new board term began in the weeks that followed. The major controversy that swirled around the bonus involved both the amount, especially the final $10,313 bonus given for exceeding an amenities’ bonus goal by $100,000, and the fact that the entire board did not have an opportunity to review the calculations and some adjustments to the performance goals before former OPA President Pat Renaud authorized payment of the bonus. Board review, as opposed to approval, was called for in the employment agreement that was last extended for three years in April before it was terminated by the board in a 4-3 vote in a closed meeting Aug. 26. Board members out of the loop were livid that they had not been consulted. Former OPA Director Jack Collins said the failure to involve the full board in the bonus calculation was “criminal,” and Dave Stevens, recently elected OPA vice-president, agreed that the entire process, as well as the actual calculation, was “a brazen and unacceptable violation” of the spirit and letter of the agreement. New director Brett Hill, who is serving as acting general manager after Thompson’s recent ouster, called recent discoveries about the bonus “disturbing” and justified his desire to reopen contract negotiations with Thompson on those revelations. His concern also extended to adjustments in the amenity performance goals for the current fiscal year that would have made it easier for Thompson to earn bonuses for this year as well had he continued as general manager. Renaud, who recently resigned from the board for reasons that he said were unrelated to the bonus controversy, took responsibility for failing to disclose the q

COVER STORY

Controversial adjustment to goal made portion of bonus possible Stevens said Thompson should have been held to original objective

By TOM STAUSS Publisher he calculation that yielded the $30,939 bonus awarded to former General Manager Bob Thompson for 2015-16 amenity performance was based on language in his employment contract, which also allowed for adjustments in the net objective, subjecting those adjustments to board review. The contract specified that Thompson was to be rewarded if five major amenities --- aquatics, golf, Beach Club, Yacht Club, and marinas – in the aggregate came close to or exceeded budget by a certain amount. If the amenities came within 90 percent of the net objective, the contract stipulated that Thompson was to receive a bonus calculated at $10,313. If the amenities exceeded the objective by $50,000, then he was to receive another $10,313. He would receive a third $10,313 if the five amenities performed better than budget by $100,000. Prior to 2015-16, Thompson had never qualified for amenity-related bonuses, and it was assumed the same was true for last year as well. The old board in late July awarded Thompson a separate $8,600 bonus for meeting non-financial objectives last year, out of a possible $10,000 under the contract. When that decision was made in closed session, there was no mention of the possibility that Thompson would be eligible for a much more substantial bonus under the financial incentive section of the contract. As it turned out, much better than expected financial performance of the amenities last year made it possible for Thompson to be within reach of additional amenity-related bonuses. The potential bonuses could only be awarded on audited numbers, which were not forthcoming until late in July or early August. According to the document that former Director and OPA Treasurer Tom Terry sent to either Former Director Pat Renaud or Director Cheryl Jacobs or both for distribution to the new board of directors in late August, the approved budget for 2015-16 called for the five relevant amenities to produce, in the aggregate, a surplus of $64,976, which is identified in the document as the net objective before adjustments. Actual audited results for the year indicate that these five amenities produced a surplus of $124,424. That was $59,448 more than budgeted. There is little question under the terms of the contract that amenities did well enough to justify a bonus of $10,313 for coming within 90 percent of the $64,976 goal. There is also no doubt, even without the aid of adjustments, that the amenities exceeded their budgeted goal by more than $50,000. Ergo Thompson clearly was entitled to $20,626 under the contract, which is a number that Director Dave Stevens, in an email to the Progress, indicated had been awarded. But what Stevens didn’t know at the time, and learned only when the calculation document was belatedly turned over to him and the new board, was that Terry had adjusted the original $64,976 goal by a substantial amount, large enough to make Thompson eligible for a final $10,313 for exceeding the adjusted goal by more than $100,000. The adjustments totaled a negative $124,124. The most significant adjustment was a negative $150,000 attributed to the lowering of payroll, which the board, in February of last year, ordered in the final stages of budget development to help reduce expenditures. Thompson unilaterally decided to reduce budgeted payroll in the Yacht Club, rather than across all departments, as some directors had suggested. The board voted to approve the budget as adjusted by Thompson at the directors’ behest. Other adjustments made by Terry included $35,876 in increased golf course losses and $10,000 for improved marina sales. The negative $124,124 adjustment changed what had been a net objective of $64,976 to a negative $59,148. As a result, audited results for the amenities exceeded the adjusted goal by $183,572, well in excess of the $100,000 needed for Thompson to achieve the third $10,313 bonus. The Progress made two attempts via email to ask Terry to defend his adjustments, but in both cases he did not respond. Renaud, who as OPA president signed off on the bonuses, admitted he had no understanding of how or why the adjustments were made. “I don’t know,” he told the Progress. Jacobs also said she was unaware of how Terry and the auditors had arrived at the adjustments. Stevens said had he known about the adjustments before a bonus was awarded, he would have strenuously objected to them. That would have resulted in a contentious debate over the third $10,313 award, which the then board majority – all pro-Thompson in outlook – may have awarded anyway. Because the calculations were not shared with the full board prior to the bonus award, it’s impossible to know for sure. Stevens said the $150,000 adjustment for the lowered payroll expense in particular was unwarranted. Thompson, he said, should have had to work toward budget goals established in the budget, whether or not they were imposed over his objections in the final stages of budget approval. He said he was considering asking the new board to send a letter to Thompson asking him to return the final $10,313. In addition to adjustments for 2015-16, the bonus document belatedly provided to the board included two proposed adjustments to the amenity goal for the current fiscal year. One change would have reflected a board decision to add $50,000 to the golf bonus target for golf cart maintenance. Terry was prepared to back out that amount of the calculation of the amenity goal for golf. “Plus, the objectives for 2016-17 (the current fiscal year) should be adjusted to reflect the impact of the OPA failing to authorize the actual implementation of the (Thompson’s) proposed food truck, which was included in the budget for 2016-17,” Terry’s document indicated According to the document, because the board elected not to allow Thompson to purchase the food truck, the goal for the Yacht Club, which included both revenue and operating expenses for the food truck, needed to be adjusted by $63,000, the net impact on operations for not funding the truck.

COVER STORY

September 2016 Ocean Pines PROGRESS

How Thompson’s $31,00 bonus came to light ... By TOM STAUSS Publisher

routine comparison of the official departmental summaries contained in the 2015-16 audit report with the unaudited results included in the April 2016 financial statement led to the Progress uncovering what turned out to be a $31,000 bonus paid to the former general manager. The comparison exercise can be a useful one, because it can reveal apparent anomalies in the way the OPA’s finance department accounted for department performance in contrast to the way it’s done by certified public accountants. This is the first time an apparent anomaly turned up a previously undisclosed bonus payment to a general manager, unknown at least to some members of the Board of Directors who, according to the general manager’s employment contract, were supposed to review the bonus calculation before it was paid out to the general manager. The audit report, typically completed in late July or early August just before the annual meeting of the Ocean Pines Association, usually shows a close correlation between the April unaudited numbers with those published with the audit report. With two departments the notable exceptions, 2015-16 followed this typical pattern. In the case of General Administration, the actual net that shows on the audited report is $5,008,361. In the unaudited April 30, 2016, financials, the actual net is shown as $4,886,109. This represents a positive variance of $122,192. In the case of the general manager’s office, the April 30 unaudited financial statement indicated that this department cost OPA members $286,893, roughly $6,000 more than budget. But

Bonus controversy From Page 32 bonus calculation to the entire board. He distributed copies of the bonus calculation to the new board at its organizational meeting in August, and that document roiled the waters even more, as it indicated adjustments to the original performance goal that made it possible for Thompson to reap a bonus that he would not have been entitled to without them. Renaud, in a telephone interview with the Progress shortly after he submitted his resignation to the board, said he was unaware of the contract provision relating to consultation with the entire board at that the time he signed off on the document. “I asked (OPA Treasurer Tom Terry) whether the contract said board approval was needed to approve the bonus, and he said it didn’t,” Renaud said, adding that he didn’t ask Terry whether the contract mandated board consultation and Terry

in the audited financial statement, this deficit had grown to $322,134, a difference of $35,241, a 12.28 percent increase in cost. Of various OPA officials contacted to explain the anomalies, only Pete Gomsak, the former assistant treasurer, took the time to respond to the Progress inquiry. It was Gomsak’s response that first confirmed the existence of previously undisclosed bonus payments to the general manager. In the case of General Administration, Gomsak said the difference of $122,192 “is primarily the result of recording approximately $145,000 of income resulting from the Settlement Agreement between the Association and Sandpiper Energy (see Note 7 of Notes to Financial Statements on page 16 of the Audit Report). The Agreement provided for various payments to the Association by Sandpiper and the required accounting for the various payment components differed, based on the nature of each and the time period over which it is to be earned. “The evaluation of the components and the determination of the appropriate accounting, in consultation with our independent auditors, occurred after the release of the Controller’s Report. Other normal year-end adjustments are also reflected in the final numbers.” In the case of the General Manager’s office, Gomsak said that the difference of $35,241 “is almost entirely the result of accruing at April 30th the additional compensation earned and awarded to the General Manager, under the bonus provisions of his employment agreement. The bonus is composed of two components. The first … is based on the actual financial performance of certain amenities vs. the agreed budgeted didn’t offer that information. Renaud said that Terry advised him that he should provide copies of the bonus calculation to the entire board but Renaud said he “forgot” to do so. “For that, I apologize,” he said, adding that consulting with the full board would not have changed anything, alluding to the fact that a board majority – Renaud, Terry and directors Cheryl Jacobs and Bill Cordwell – would have been fully on board with paying the calculated bonus, including the adjustments to the goals that made the bonus possible. In an email to the Progress, Terry took responsibility for calculating the bonus, but his response left open the possibility that he might have had some help. Then Assistant Treasurer Pete Gomsak, who Terry praised during the annual meeting as someone who had been of great assistance during Terry’s year as treasurer, told the Progress in email that he had not been involved in calculating the bonus. “I was not involved in the detailed calculation …” Gomsak wrote, which

amounts. Therefore, this component is a precisely calculated amount. The second component is based on non-financial objectives and is at the discretion of the Board of Directors.” Gomsak said that near the end of the audit process, “the first component was able to be calculated and was accrued. The second component had not yet been determined by the Board and, consequently, an estimated amount was determined and also recorded in the financial statements. “The estimated amount was midway between the minimum and the maximum and rounded,” he said. In late July, the board discussed and approved in a 4-3 vote an $8600 bonus related to non-financial objectives. At the time of the discussion and vote, the possibility of a bonus related to amenity performance was not mentioned by anyone who was aware of it. Initial inquires to board members about the possibility of $35,000 or so in total bonuses, that had to include a sizable bonus related to amenity performance, were met with statements indicating that any bonus related to amenity performance was news to them. Director Dave Stevens conducted his own investigation into the matter and, working from a copy of the employment contract, determined that he believed the former general manager was entitled to roughly $20,000 in bonus compensation related to amenity performance. But initially he couldn’t explain what still appeared to be an unexplained anomaly. He had identified roughly $28,600 in bonuses that he felt probably were accounted for, at the same that there was a $35,000 difference in the general manager office’s net from unaudited April numbers to the August an-

nual report. The Progress sent another email to OPA Treasurer Tom Terry asking for an explanation and accounting of the bonus, and why the bonus had not been reviewed by the board in accordance with the general manager’s employment contract. Terry replied that he had done “my job as treasurer. I met with both the comptroller and auditors for the OPA and confirmed the data and formulas in the contract, then signed off on and submitted the results. This work fell after my last board meeting since the audit was not finished at the time of the meeting. I no longer have access to the OPA email system. I have asked that the report I submitted be forwarded to the board.” He didn’t say who he asked to forward the bonus calculation document to the board, but it was former OPA President Pat Renaud who distributed copies to the new board at its organizational meeting on Aug. 22. Later, he told the board he had previously forgotten to send it out. The document indicated that the amenity-related bonus had been calculated in the amount $30,939. Together with the non-financial bonus of $8600, the bonus awarded the former general manager totaled $39,539. That boosted his compensation for the year from $165,000 to $204,539, not including health and retirement benefits and transportation expenses. Moreover, the document indicated that the full bonus of $30,939 was only payable because of adjustments made to the formula, adjustments that, according to the employment contract, the entire board was entitled to review. That review did not occur before Renaud had signed off on the bonus.

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COVER STORY

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Thompson contract terminated Stevens motion passes 4-3, over Jacobs’ ‘emotional’ objections; Brett Hill named acting GM By TOM STAUSS Publisher closed meeting that began with the intended purpose of reviewing General Manager Bob Thompson’s employment contract, including what one director described as “disturbing factors” involving a $30,900 bonus for better-than-budgeted amenity financial performance, ended up with a highly contentious 4-3 vote to terminate the contract and Thompson’s employment with the Ocean Pines Association. Director Brett Hill was chosen by the board majority to serve as interim or acting general manager pending a search for a replacement. At a special meeting of the Board of Directors Aug. 26, the directors voted 5-2, with directors Pat Renaud and Cheryl Jacobs dissenting, to go into closed session to discuss Thompson’s contract, which had been extended for three years on April 28. Undisclosed at the time the contract extension was made public was a provision that allows the “new board” – in this case, the board that had three new members as a result of this summer’s OPA election – to revisit the contract extension, whether to renegotiate it or terminate it, or keep it in force as written. The contract specified an Aug. 31 deadline for making a decision on the

three options. Newly elected director Brett Hill, who offered the motion to go into closed session, in prepared remarks explaining his motion said that five board members recently had discovered “many disturbing factors surrounding the handling of the GM bonus (for the 2015-15 fiscal year),” as well as “adjustments already made to this year’s budget related to the bonus clauses” that would have made it much easier for Thompson to earn a bonus related to amenity performance this year. Hill in his explanation said that the board “has an obligation to discuss a more objective measure of bonus calculation, so a notification of a (reopened) contract negotiation would be in the best interest of all parties to avoid further issues in future years.” A decision to revisit the contract by the Aug. 31 deadline would have opened a two-month window for the board and Thompson to renegotiate, something that Thompson probably would have welcomed. Back in April, he offered to drop amenity-based bonus incentives in exchange for a more predictable incentive package, but the board at the time voted 6-1 to extend the contract for another three years without change. New anointed OPA President Tom Herrick was the only director to vote against the extension. One of the direc-

tors who voted for it, Jack Collins, was defeated in his election bid this summer, with his contract extension vote a possible contributing factor. Also voting for the extension was Dave Stevens, who wasn’t on the ballot this year but isn’t known as a Thompson fan. Both Collins and Stevens explained their votes as the best deal possible for the OPA given that, at the time, there was a solid majority of pro-Thompson directors who could have renegotiated the contract to make it even more lucrative for Thompson. Stevens was participating in the meeting via telephone, and said later he might have voted differently had he been at the person to hash out the details of a renegotiation. Elections have consequences, and with the election of Hill and Slobodan Trendic it was apparent that Thompson no longer had a solid majority of supporters on the board. Indeed, there was an expectation in the community that, at some point, Thompson’s contract probably would be terminated by the new board. In published accounts, Thompson himself said he was expecting the board to move in a new direction. Thompson served six years as general manager, and that’s well within the average time of service for managers of

homeowner associations. What caught many in Ocean Pines by surprise, however, was the fact that the axe fell as soon as it did. The new board reorganized itself with an election of offices in a meeting Aug. 22. H ill’s motion to go into closed session on Aug. 26 after the open session made no mention of possible termination. Trendic told the Progress several days after the decision to terminate was made that “absolutely” there was no intention or expectation by the board majority of Herrick, Trendic, Stevens and Hill that Thompson’s contract would be terminated in the closed session Aug. 26. He and other directors declined an email invitation by the Progress to discuss how and why the decision to terminate the contract occurred, citing the confidentiality of closed meetings. The press release announcing the decision said only that the contract was made for convenience, meaning that the board majority was not alleging any sort of wrong-doing on Thompson’s part that would have justified a termination for cause. The termination for convenience means that Thompson will reap a generous severance package, including salary and benefits for nine months, although apparently he no longer will be eligible for any bonuses. Nine months of salary works out to $123,750 for work that need not be performed. The veil over deliberations in closed

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From Page 34 session that is being used by the directors to avoid commenting on the circumstances within the meeting that led to a motion to terminate the contract has opened somewhat, however. Former OPA President Pat Renaud, who resigned from the board days after the decision, offered a few details in a telephone interview. He said that he, Jacobs and newly elected director Pat Supik were opposed to the termination, and that Jacobs in particular objected to reopening the contract. Renaud said he would have been willing to renegotiate, noting that Thompson himself had been willing to renegotiate the bonus portion of the contract back in April before the agreement was extended. “Of course, he wanted something in return,” Renaud said. Renaud said he didn’t sense any desire on the part of Jacobs or Supik to open up the contract for renegotiation, and he described Jacobs as “very emotional” in her defense of the status quo. “I was emotional, too, but I didn’t show it as much,” he said. Jacobs in response to a question sent via email declined to comment on Renaud’s revelations about her alleged emotional reaction, other than to say that “Pat should not have” breached board confidentiality. Renaud had just resigned from the board when he offered his assessment of what had occurred in the closed meeting. One source who declined to be named for this article said that Jacobs seemed unwilling to discuss the bonus issues or reopen the contract and was very uncomplimentary towards her board colleagues for wanting to do so. In public comments published in a local weekly, Jacobs was quoted as saying that “this ‘new majority’ seems intent on bending/breaking the rules to suit themselves.” She did not respond to a specific Progress inquiry about what rules she thought the new majority had bent or broken, but in her published remarks she referred to agendas not being posted in a timely fashion. That would hardly constitute a serious breach of protocol, as previously boards have routinely missed posting agendas three days prior to a scheduled meeting, without much recourse. At some point during the debate when the differences between the board majority and Jacobs became irreconcilable, Stevens produced a prepared motion calling for the termination of the contract, which, not surprisingly, passed by a 4-3 majority. Because Stevens’ motion was in a written form, Renaud called the entire meeting “a set-up” by the board majority, by which he seemed to mean that the majority knew in advance that a vote to terminate the contract would be made at that meeting.

Trendic called that assumption completely wrong. “We didn’t go into that closed meeting with the predisposition that we were going to terminate the contract,” he said. An alternative explanation is that had the board been able to reach a consensus on how to proceed with a contract renegotiation, the outcome of the meeting might have been different and Thompson still might be the OPA general manager, albeit skating on very thin ice. Stevens told the Progress that while he, too, could not comment on what occurred behind closed doors in a private board meeting, the decision to terminate the contract was not directly related to the controversy over bonuses paid to Thompson for amenity performance in 2015-16. [See separate story in this edition of the Progress for details.] “It might have contributed” to an environment in which a decision to terminate was easier to make, Stevens said. It was Stevens and Herrick, as vice-president and president respectively, who delivered the news of his contract’s termination to Thompson, who was waiting in his office while the directors deliberated. Hill, this summer’s top vote-getter in this summer’s board election, was picked by the board majority to serve as the interim or acting general manager pending a search for a replacement. News of the contract termination emerged soon after Thompson was informed of the decision. One of his first calls was to Pete Gomsak, one of Thompson’s closest allies and a former OPA assistant treasurer.

Contract termination

September 2016 Ocean Pines PROGRESS

36 Ocean Pines PROGRESS

LIFESTYLES

September 2016

Monday, Sept. 12 AARP, monthly meeting, 10 a.m. Ocean Pines Community Center, 9 a.m. flu shots, 9:30 a.m. social time. Guest speaker Kitty Wrench, CPR basics. Flu shots provided by Rite Aid. Members asked to bring a can of food for Sarah’s Pantry. Wednesday, Sept. 14 Introduction to modern western square dancing, hosted by the Pinesteppers Square Dance Club of Ocean Pines, 7-9 p.m., Ocean Pines Community Center in White Horse Park. Casual dress, light refreshments. Louise, 410430-0284, or Dennis, 970-389-3383, for information. Thursday, Sept. 15 Pine’eer Craft Club, monthly meeting, Ocean Pines Community Center, 9:45 a.m. refreshments, 10 a.m. business meeting. Craft to follow, guests welcome. Deadline for reservations, New York City motorcoach trip, $80 per person. Tickets are available online at OceanCity.org or in the Rt. 50 Visitor Center. Lisa Layfield, 410-213-0144 ext. 104 for information. Friday, Sept. 16 Star Charities V.I.P. Social, 4 p.m., Ocean Pines Community Center. Benefits Maryland Wounded Soldiers. Tickets $20, Barbara Peletier, 443-896-4914, or Anna Foultz, 410-641-7667. Food by Carrabba’s Italian Grill. Live entertainment by Sharon Sorrentino and Paul Mazzei and music by D.J. Rupper. Dancing until 7:30 p.m. Door Prizes, a 50/50. Seating limited. Saturday, Sept. 17 Ocean Pines Boat Club End-ofSummer Luau, 3 p.m., White Horse Park, $14 per person. Roast pig BBQ, po-

HAPPENINGS tato salad, baked beans, coleslaw, rolls, soft drinks, iced tea and water. BYOB and an appetizer or dessert to share for 8. Stuart Glassman, 814-322-2120. Details and a sign-up form are available in the September issue of The Voice, the member newsletter. Monday, Sept. 19 Board of Directors, Ocean Pines Association, work session, 9 a.m., board room, OPA administration building, discussion of agenda items in preparation for regular monthly meeting on Saturday, Sept. 24. Agenda posted on OPA Web site, oceanpines.org, several days prior to meeting. Genealogy Group, monthly meeting, 10:30 a.m. – noon, Ocean Pines Library. First of four-part workshop. Lesson 1 - Genealogy Basics -- Family trees, terms, lineages or pedigrees, dates, names, marriages, children, death records. Wednesday, Sept. 21 Board of Directors, Ocean Pines Association, work session with the Budget and Finance Advisory Committee, 9 a.m., board room, OPA administration building, discussion of budget objectives for 2017-18 budget. Retired Nurses of Ocean Pines, monthly meeting, 3 p.m., Ocean Pines Library. Presentation by Peninsula Regional Medical Center’s Executive Director of Managed Care and ACO Nancy Creighton, COO Cindy Lunsford and Vice President of Strategy and Business Chris Hall. 302-436-4378. Saturday, Sept. 24 Board of Directors, Ocean Pines Association, regular monthly meet-

ing, 10 a.m., Ocean Pines Community Center. Agenda posted on OPA Web site, oceanpines.org, several days prior to meeting. Yard sale, Church of the Holy Spirit, 100th Street at Coastal Highway, 7 a.m. noon. Information, 410-723-1973. Ocean Pines Junior Tennis Open, hosted by the Ocean Pines Recreation and Parks Department and Delmarva Beach Tennis, Manklin Meadows Racquet Sports Complex, 11443 Manklin Creek Road, Ocean Pines. Open to current high school students. Singles matches, eight-game pro sets. Registered players will play at least two matches. Fee $20 per person and includes an event t-shirt. Registration forms may be obtained at the Ocean Pines Community Center or the Manklin Meadows Racquet Sports Complex. In case of inclement weather, the event will be held on Sunday, Sept. 25. 410-641-7052. Monday and Tuesday, Sept. 26 & 27 Ocean Pines bowling league, play begins, 1 p.m. Don Schaefffer, 410-6418898. Tuesday, Sept. 27 Annual Patriot Day Fashion Show Luncheon, Republican Women of Worcester County, Clarion Hotel, 10100 Coastal Highway, Ocean City, doors open 10:30 a.m., program 11:30 a.m. Theme: America’s Suffragettes. Fashions by Chico’s. $33 per person. Information and reservations, Pat Addy, 410-208-0171, or check payable to RWWC, include choice of steak or chicken with salad and mail to Pat Addy, 20 Chatham Court, Berlin, MD 21811.

Saturday, Oct. 8 Kiwanis Club of Greater Ocean Pines - Ocean City annual fall pancake breakfast, Ocean Pines Community Center, 8-11 a.m. Adults, $6; under age 12, $3; under, free. Tickets can be purchased in advance from Kiwanis members or by calling Ralph Chinn, 410641-6719. Pancakes, scrambled eggs, sausages, fruit cup, orange juice, coffee and tea. Proceeds benefit the youth of our community. Sunday, Oct. 9 Crab/chicken feast, the Church of the Holy Spirit, 100th Street and Coastal Highway, Ocean City, 2-6 p.m., food served until 5:30 p.m. Crabs, fried chicken, hush puppies, cole slaw, iced tea, lemonade and coffee. Bring mallets. Desserts $1. Chinese auction. Tickets, $35 for people over 10, and $15 for those 10 and younger, available at the church. Information, 410-723-1973 or Monica at 443-235-894. Saturday, Oct. 15 Suddenly single workshop, sponsored by the Worcester County Commission for Women, Community Church of Ocean Pines, 11227 Racetrack Road, 10 a.m. to 1 p.m. Panel presentations on smart uses for money, legal issues, credit issues, and fraud issues. Registration by Oct. 8, Cynthia Roman, 240-882-2950, or chroman1954@gmail.com. $5 registration fee payable to FWCCW mailed to Cynthia Roman, 28 Watertown Road, Berlin MD 21811. Open to all coping with loss of a partner. Information, Beverly Thomas, bevthomas@mchsi.com or 410-641-8299. Monday, Oct. 17 Board of Directors, Ocean Pines Association, work session, 9 a.m., board room, OPA administration building, discussion of agenda items in preparation for regular monthly meeting on Saturday, Oct. 22. Agenda posted on OPA Web site, oceanpines.org, several days prior to meeting. Saturday, Oct. 22 Board of Directors, Ocean Pines Association, regular monthly meeting, 10 a.m., Ocean Pines Community Center. Agenda posted on OPA Web site, oceanpines.org, several days prior to meeting. Saturday, Oct. 29 The Parke Garage Sale, 7:30 a.m. to 12:30 p.m., in the driveways of its residents, off Ocean Parkway near Ocean Pines South Gate. C lothes, lamps, artwork, household items, electronics, furniture and more. Maps at the main entrance of the Parke, 410-208-4994. Monday, Dec. 5 Board of Directors, Ocean Pines Association, work session, 9 a.m., board room, OPA administration building, discussion of agenda items in preparation for regular monthly meeting on Friday, Dec. 9. Agenda posted on OPA Web site, oceanpines.org, several days prior to meeting.

CAPTAIN’S COVE

September 2016 Ocean Pines PROGRESS

Cove board keeps assessments constant for another year

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Waterfront differential set at $200, to cover only limited dredging in southern canal system Point, although that’s a decision that can’t be avoided. Hall seemed willing to start collecting funds in 2016-17 for that eventuality, but other directors were willing to hold the line the $200 assessment for another year, but probably not for the years after that. Hearn said that if the waterfront assessment was raised $100 in 2016-17 or later to $300, it would raise roughly $200,000 over the course of five or six years, enough to pay for the dredging equipment needed for Treasure Island. If the Cove board takes funds out of operating funds or other reserves to pay for the new dredging equipment, Hearn said one option is for the waterfront fund to pay back other accounts over five or so years. For much if not all of that time, that would mean the waterfront reserve would carry a negative amount. Hall said she doesn’t like the concept of a negative reserve or borrowing from one reserve to pay for expenditures that should be paid for by another. She said the waterfront reserve should continue to be used to pay for dredging-related capital expenditures, and if that means an increase in the annual waterfront dues, she was ready to approve one. The problem is that, even with a $100 increase in the waterfront assessment in future years, there will be insufficient funds in the waterfront reserve to pay

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By TOM STAUSS Publisher The Captain’s Cove property owner association did it was expected to do – indeed, what elected leaders determined some months they would do – when it voted to keep lot assessments constant for 2016-17 during an Aug. 13 board meeting. The base assessment remains at $1200 for the year, and the waterfront assessment remains at an additional $200 for canal-front owners where dredging occurs. It was the waterfront assessment, not the base assessment, that produced one dissenting vote on the board on a motion to accept it. That dissenting vote by director Rosemary Hall involved a disagreement between her and other directors on the wisdom of doing only limited dredging in the coming year – no more than 30 days of dredging in the community’s southern canals. That excludes canal dredging in Captain’s northern areas and elsewhere, which could be a risk if storms cause the canals there to silt in to a degree that is not anticipated. Essentially, a board majority was willing to suspend most dredging in the Cove canals next year as a way of avoiding a waterfront assessment increase. Hall, on the other hand, seemed more supportive of raising the waterfront assessment for the new fiscal year that begins Oct. 1 as a way of raising funds for additional dredging if it’s needed. She also seemed to be looking ahead to raising funds for dealing with a rather large expenditure that looms, costs associated with shutting down the Cockle Point spoil site and making Treasure Island the Cove’s sole depository for dredge material. Cove President Tim Hearn outlined several alternatives for dealing with the fact that the Cockle Point is nearing capacity and, moreover, consists of several privately owned lots whose owners have allowed the Cove to deposit dredge material on their properties for quite some time. Facing a regulatory requirement that it no longer use Cockle Point, Hearn said the least expensive alternative is to buy additional piping and pump equipment so Treasure Island can be turned into the Cove’s sole spoil site. The cost of all that equipment is roughly $180,000. The problem currently is that the waterfront reserve is essentially depleted of funds. The Cove board isn’t quite ready to shut down Cockle

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CAPTAIN’S COVE Waterfront assessment

From Page 37 for new dredging equipment. Some sort of inter-reserve borrowing is probably inevitable. The Ocean Pines Association has employed such an accounting approach over many years, carrying a negative reserve component in one column offset by a large surplus in another. There are no borrowing costs associated with the practice. Board election – Ballots have been mailed to property owners in good standing for the 2016-17 board election, with two open positions and four candidates available for a three-year term. There’s

September 2016 Ocean Pines PROGRESS also a race for board alternate, with board member Dave Kieffer deciding to step down from the board to run for alternate. The two winning candidates when election results are announced as part of the annual meeting in November. One incumbent director, Pat Perlino, is running for reelection. She’s been a board member and the board secretary since February of 2013. She is likely to have declarant/deverloper support in her re-election bid. Another candidate, John Costello, might also have a good chance to receive declarant support. An owner/operator of a siding company, his statement of candidacy in election materials includ-

ed with the ballots indicates he believes “the current Board of Directors has done an outstanding job achieving financial health.” Costello is also running for the alternate seat. Two other candidates, Arline Curtis and Carolyn Finn, face daunting odds. Curtis ran last year unsuccessfully, with declarant/ developer votes cast for candidates linked to Captain’s Cove Group Note and its affiliates, the Cove declarant/developer with three for one voting rights. “Never give up on trying to give regular Class A voters a voice on the Board!” she writes in her candidate statement. Her business background is in business management Finn, with public relations and marketing

experience, is a member of the Cove social committee. In addition to Kieffer and Costello, John N. Blake is running for the alternate seat. He’s had more than 40 years of business experience. Dog run – A group of Cove residents have been working for some time to develop a dog park for Cove residents. At the Aug. 13 board meeting, communications coordinator Justin Wilder told board members that Drew Barry Park has been identified as a potential site, and that the residents who want the dog park are willing to foot most of the cost for creating it.

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OPINION

September 2016 Ocean Pines PROGRESS

COMMENTARY Thompson ouster handled professionally by OPA board

s if there was any doubt about this, elections matter and have consequences. The Ocean Pines Association is not immune to this age-old political wisdom. The election of two new directors with a clearly articulated reform agenda this summer – one of whom in particular said he would work to remove General Manager Bob Thompson – made his continued tenure unlikely at best. Brett Hill, who stopped just short of calling for a new general manager in his well executed campaign for the board, and Slobodan Trendic, who was forthright in making his intentions clear, upon their election joined two carry-over directors who had clashed, publicly and often, with Thompson on matters large and small. The OPA’s new president, Tom Herrick, had said in a public forum this past year that Thompson’s continued role as GM was a major reason for division in the community. The other carry-over director, Dave Stevens, when he served as president of the OPA in 201415, rarely even met with the GM and instead opted to work with Thompson’s colleague, facilities manager Jerry Aveta, in an unsuccessful attempt to devise a new comprehensive capital improvement plan for Ocean Pines. Stevens was effectively shunned by a board majority that formed after the board election of 2015, and Thompson assumed control of the CIP process shortly thereafter. That there was no love between Stevens and the GM was quite evident this past year, as it had been in years prior. So it’s hardly a surprise that, in the closed meeting in which Thompson’s tenure was up for discussion, Stevens offered the motion to terminate the GM’s contract. Backtrack to this summer’s board election, in which candidates Trendic and Hill worked long and hard to open up the vote count to the community in accord with the Maryland Homeowner Association Act’s open meeting provisions, only to encounter resistance from the then board majority in concert with Thompson. This philosophical difference of opinion on the right way to conduct OPA elections was bound to have an effect on board majority attitudes about the future of Thompson’s tenure. But perhaps the most compelling harbinger of what would result in Thompson’s demise as GM occurred with the slow revelation of details over a course of weeks associated with an overly generous $31,000 bonus given to Thompson for 2015-16 amenity performance. The bonus, one third of which was based on a highly dubious and disturbing adjustment that made it possible to claim that the GM exceeded his goal by a whopping $100,000, pushed the general manager’s compensation to above $200,000 for the year. The arithmetic is not complicated: $165,000 in salary, an $8600 bonus for meeting non-financial objectives, and another $31,000 for meeting amenity objectives. Add to that a reported car allowance, matching Social Security payments, health insurance and pension benefits, and it’s obvious to most of us that the general manager’s office was costing Ocean Pines property owners a considerable sum of money, considerably more than compensation given the Worcester County administrator, Ocean City’s city manager and, dare we say it, the governor of Maryland. In fairness to Thompson, he tried to change the bonus formula back in April, when his contract was renewed, but it was not clear a revised formula, even if a board majority had agreed to it, would have applied to the fiscal year that ended that same month. The contract clearly called for a bonus based on amenity

performance, and Thompson accepted what was offered. In the end, that was a mistake, a very large one, both because of its size and the horrible optics. Moreover, it was a mistake because two former directors, Tom Terry and Pat Renaud, opted not to share the calculation that led to the bonus with the board minority, who probably would have objected to its most disturbing component. That was an adjustment related to $150,000 in payroll expense that, when factored into the Yacht club’s budget goal calculation, made it much easier for the GM to meet the amenity objectives. Without it, at least a portion of the bonus would have been unattainable. Never mind that the $150,000 reduction in payroll expense was mandated by the board back late in the budget process; Thompson decided to allocate it to the Yacht Club, rather than spread it throughout all or most of the other departments. Why he did so at the time may have been justified, but it was very much at his election. Whatever its justification or lack thereof, that $150,000 payroll reduction was embedded in the budget and should have been left in for purposes of calculating the bonus target. Why Terry as former OPA treasurer, and others (the controller and the auditors) who reviewed it, decided to “give back” the payroll reduction for purposes of awarding a bonus is a mystery. Terry didn’t attempt to explain it in a reply to a Progress email, but he really should have been forthcoming. As in most everything, there are at least two sides to every controversy. If he didn’t even try to come up with a convincing explanation, then the impression left is that he was simply extremely generous with OPA dollars out of a misplaced sense that Thompson was worth every penny of the bonus given. On the contrary, no general manager – Bob Thompson or even Donald Trump’s very accomplished offspring – is worth the kind of money Thompson earned in 2015-16. The primary fault lies in boards that gave him periodic raises during his six-year tenure as manager and devised a flawed incentive package that he took advantage of, to the fullest extent possible. Much wiser for his continued tenure in Ocean Pines had he given back the bonuses the OPA, perhaps for distribution as bonuses to particularly deserving employees. It’s not too late for that, and would be a smart move should Thompson want to have any public role in Ocean Pines going forward. The days of extravagant GM compensation should be behind us, courtesy of OPA property owners who elected Hill and Trendic to the board this summer. The new board majority exercised its right under the contract to terminate the contract, without needing any more reason other than a desire to take the OPA in a new direction. The majority issued no statement disrespecting Thompson or criticizing him in any way. Indeed, the overly generous contract gives him a nine-month severance package, including salary and benefits, which essentially means he collects his usual compensation without having to show up to work for nine months. He ought to be able to land on his feet without too much difficulty. Finding an employer as generous as the OPA anywhere on the Eastern Shore might be difficult, but of course anything’s possible. His resume would certainly contain the recommendations of certain former and even current directors who respected the work he did as general manager. And, finally, just to be fair to him: His six years of tenure is about normal for HOA general managers and he can look with pride to some accomplishments. For those who need a reminder of some of those ac-

complishments, they need only review the video of the OPA’s annual meeting this past August, posted on the OPA Web site. It really amounted to a pro-Thompson infomercial, but that isn’t to say that it was all propaganda designed to make it more difficult for a new board to take the OPA in a new direction. The simple truth is that the OPA is in relatively strong financial condition, and Thompson deserves at least some credit for that. There is indeed much that is functioning well in Ocean Pines; a gloom-and-doom outlook is hardly justified. Brett Hill’s success as interim general manager will in part be built on a strong foundation of leadership and competence that he has inherited from staff left to him by Thompson. Of particular note: Aveta, the facilities manager, and Colby Phillips, the aquatics manager, both of whom Thompson hired. On a final note: Thompson avoided a bitter, acrimonious exit on his way out, thanking Ocean Pines property owners for the opportunity to serve. That class act unfortunately was not replicated by some of his core supporters, including one former director whose intemperate rants about the new board majority ought to be ignored. Elections by their very nature can excite the passions, but then they’re over, and winners and losers somehow still have to manage to work together. Cheryl Jacobs, last year’s vice-president who was being groomed by former director Terry and Renaud to assume the presidency, can either be part of the solution this coming year or part of the problem. There’s nothing wrong with civilized debate and differences of opinion; it is probable that the new majority will have some of those. But the new board struck just the right tone by reaching out to someone who, at first blush, would not seem to be a natural member of the reform club – Pat Supik. She was elected treasurer, and, initially at least, did not seem as hostile to the new board majority that Jacobs, by her demeanor and comments, could not hide. – Tom Stauss

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

127 Nottingham Lane Ocean Pines, MD 21811

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

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

42 Ocean Pines PROGRESS

LETTERS

Awesome reporting

Rarely do I write anyone complimentary or negatively. But the August edition of Ocean Pines Progress was spot-on awesome! The final article Life in the Pines was the cherry on top of the hot fudge sundae. Quite frankly, the citizens of Ocean Pines would be like sheep being led to the slaughter house if it were not for your conservative, truthful writings. I no longer read the other papers when they get tossed into my driveway. Your newspaper is the Washington Times and Wall Street Journal of Ocean Pines. We get both sides of the issues and the rest is up to us to do with it as we please. In my case, with two lots, I voted two times for the three winning candidates. Now we shall see what we shall see with the majority power shift going the other way. Hopefully, none of the three winners will turn out as the Trojan Horse [Pat] Renaud, who ran as a conservative when in fact he was a hard leftist liberal. [Slobodan] Trendic proved his worth when he wrote to Annapolis about the vote counts being tallied behind closed doors. It reminds me of the votes in the last Obama election when it was found to contain thousands of Obama votes of deceased citizens. What has happened to America is also happening in our sweet, innocent Ocean Pines. Not so innocent anymore. But we have you reporting the truth and that is huge! And for what it’s worth, you are also spot-on about the Yacht Club and have every moral right to discuss it openly in your newspaper. There were five of us who did lunch there after it was open three months. The food was awful and the carpeted floors in the dining room dirty with food pieces under various tables. We went back six months later. Same food and the table tops were unclean. We have never been back. Steven A. Haffner Ocean Pines

GM ouster reflected will of the voters

OPINION

September 2016

This letter is in response to the deluge of letters published in local weeklies excoriating the new majority’s termination of the general manager. Let me offer my objective, neutral take on the subject. OK, maybe not neutral but certainly objective. First I’d like to point out that approximately 63 percent of the votes were cast for candidates not considered GM friendly (to say the least). That is a sizable majority. And the top two vote-getters were candidates who made their dissatisfaction with the GM’s performance, salary, bonus, etc., well known, with one of those two indicating during the campaign that he favored termina-

tion as an option, and the other clearly leaning that way. The will of the people is crystal clear on this issue. And now that the board has set the stage for a new direction, much speculation and criticism, maybe some of it vile, will be headed their way. Sure, the sour grapes will be tossed and will come from former board members as well as residents, but let’s not forget that a GM being fired and a new GM being hired is exactly the way that [former GM Bob} Thompson got his job in Ocean Pines, and on a 4-3 vote, just as this was. But unique to that situation was that Thompson was a former board member. He wasn’t recruited through a regional/ national job search as other GM’s had been. And as it has been with the last three or four GM terminations, a board member takes the position until a replacement can be found. In this case it’s new director Brett Hill, who is as competent, if not more so, than board members who served in the temporary capacity as GM in the past. If the meeting (before they went into closed session) was indicative of the way these folks are going to govern, Ocean Pines is in good hands. This new majority is one sharp and savvy group of people. They proceeded methodically and strategically. Old-fashioned common sense ruled the day. It seemed to me that they went into the public meeting with a strategy, and the meeting was a textbook illustration of a functional, civil board. The meeting was so relaxed and cordial, a lot of us were blindsided when we heard about the termination. This board -- again I’ll use the word strategically -- addressed ongoing/unresolved issues that had been raised at the last three or four meetings of the previous board, issues that have been discussed extensively on the Ocean Pines Forum and in our local newspapers, including the Progress. And as things turned out, they were issues that were relevant to what was about to transpire in closed session because they were issues that reflected poorly on the GM’s job performance. This new board addressed and remedied those issues and then they finalized the difficult decision that a change in management was warranted. Now let’s move on. Steve Lind Ocean Pines

Bloated bureaucracy

According to the 2016 year-end financial report [available for review at www.oceanpines.org], the Ocean Pines Association is a bloated, self-serving bureaucracy. Instead of providing for the welfare of its members, as required by its governing documents, the OPA has become a welfare agency for its employees. For that fiscal year, total employee compensation was $5,664,818, equal to 67 percent of all assessments and 112

percent of operational funds. Yacht Club employees received $803,364 before tips and shrinkage, which may explain why it never breaks even financially. Golf-related compensation totaled $693,826, amounting to 53.6 percent of its total expenses. Recreation and Parks employee compensation of $448,646 exceeded its total revenues by $179,637. It lost another $375,290 on top of that. As the just elected director/treasurer of the OPA said during the recent candidates’ forum, “I think the numbers speak for themselves.” How true! George W. Coleburn Ocean Pines

Employee benefits

I have never written to the Progress before today. But recent events say it’s time. I, with my wife, Carol, have lived in “The Pines” since 2007 and, for the most part, have enjoyed every minute of it. I see that General Manager Bob Thompson was given his walking papers by the new Board. Honestly, I did not think they had it in them to do this. Now, the next, logical, question is this: When will a new GM be chosen and sworn in? Thinking a bit deeper is the question: Does Ocean Pines even need a GM? Or is it a law somewhere that says that all associations in Maryland must have a GM? Well, if the OPA must have one, obviously now would be the time to also re-evaluate the salary structure. $165,000 a year, plus benefits and bonuses? I think not. While I am on the subject of expenditures, I keep looking for some mention of Ocean Pines employees and their benefits package. What are the figures? Does Ocean Pines pay 100 percent or are the employees contributing a percentage of their salaries? I recently retired from the Starbucks Coffee Company after over ten years’ service. During my time at “The Bux”, my pre-tax contribution to my benefits package was approximately 33 percent, taken out of each every-other-week paycheck. Thirty-three percent, one third of the total insurance cost. I know of no other company, of any size, that makes its employees contribute this much. Before the Affordable Care Act came into being, SBUX employees were not required to enroll in their (SBUX) benefit package. The Act changed all of that. So, the long and the short of it: Do OPA employees contribute to their benefits? And if so, how much? If not, why not. Five percent, ten percent coming from OPA employees would go a long way in allowing the board to re-evaluate the annual assessment, among other things, which was, in 2007, about $750 a year. My last assessment was $921. Alan Blair Ocean Pines

Editor’s note: The OPA pays 100 percent of full-time employee insurance costs, but that benefit does not extend to employees’ family members, who can opt in for coverage with employee-paid premiums that are not subsidized by the OPA. Part-time employees, of which there are many during the summer season, are not covered. The OPA’s benefits package is usually discussed during the annual budget review in January and February, but no changes have been made in the basic structure for quite some time.

Relentless Dave Stevens

After six years, Director Dave Stevens has finally achieved his objective of having General Manager Bob Thompson fired. The effort to get rid of Bob began in July of 2010 when the then Board of Directors decided to terminate the contract of the then GM and to hire Mr. Thompson to replace him. Mr. Stevens was very opposed to the action of the Board majority and made very clear his intent to oppose and make life difficult for Bob Thompson, ultimately, no doubt, in having his contract terminated. My opinion is based on my having been an (Ocean Pines Association) director at the time and participating in the discussions and the decisions. I have to acknowledge Mr. Stevens’ relentlessness, over the years, in pursuing his objective in so many ways. He has finally met with success. He certainly has had help over the years, most notably from Marty Clarke and Joe Reynolds, who has also been relentless in his criticism and call for removal of the GM. So, they certainly share in the success. The Board has made its decision, which it has every right to do. Now it’s time to move on and identify and hire a competent replacement that can be successful in this very challenging position.

Mr. Thompson’s critics, including some successful, as well as unsuccessful, candidates for election to the Board, have been quite vehement in criticizing how Ocean Pines has been managed. I hope the Board will identify, for the benefit of the membership, those areas which it considers the most poorly managed and which, presumably, would be established as the highest priority areas for improvement, as we go forward under new leadership. The membership can then follow the progress being made. The voters have expressed their confidence in the newly elected Board members. I wish them well in their efforts to meet the needs and expectations of the entire Association, not just certain elements of it. We all need them to be successful. Lastly, I would like to thank Bob Thompson for his extremely dedicated service to Ocean Pines and wish him well in the future. I know how much pressure he has been under and the challenges he has faced. A fresh start could be a very good thing. Pete Gomsak Ocean Pines

OPINION

September 2016Ocean Pines PROGRESS

New board off to strong start, despite sore losers

lections like life itself has winners and losers, and this summer’s Board of Directors election in Ocean Pines was no exception. The “reform” slate with Brett Hill and Slobodan Trendic at the top of ticket accumulated the most votes, and some other candidates from this same “reform” point of view had solid support down ticket, but their voices were diluted because of a multitude of choices. But no matter, a new board majority rules the roost, with last year’s majority in tatters, left to venting over the injustice of it all. Their cries of disillusionment can be found on the pages of a local weekly hospitable to their point of view. One former director, who did not risk the wrath of the voters this summer by running for reelection, has elevated invective and sore losing to an art form. One member of last year’s majority, Pat Renaud, saw the hand-writing on the wall and resigned, ostensibly for health issues – they were certainly real enough this past year – but more because he knew his ability to influence the direction of the new board was virtually non-existent. The first real divide on the board’s new term involved the termination of General Manager Bob Thompson’s employment contract. Renaud, who evolved or retrogressed (depending on one’s point of view) as a solid supporter of the former general manager in his two years as director, was on the losing side on that one. He must have known that his last year as a director was not going to be particularly rewarding. His involvement in the former board majority’s tawdry handling of the GM’s bonus

things out” and “starting everything over again” seems silly, and also at odds with the notion that the new board acted preAn excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs cipitously in terminating the Thompson of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. contract and quickly filling the vacancy with Brett Hill as acting general managBy TOM STAUSS/ By TOM Publisher STAUSS/Publisher er. Which is it – acting precipitously or dragging things out? – troubling is the way Hill described it the board, has every right to oppose the About two weeks in a new board term, – will not go down as glorious service on new board’s decision to oust Thompson the new board seems to be acting very behalf of Ocean Pines property owners. and much of the agenda to follow, but quickly out of the gate. For a few days, The vote to terminate the contract it’s going to be a very lonely and unpro- four projects were put on hold, simply was done as professionally and trans- ductive year for her if she doesn’t find a to allow new directors (and carry-over parently as it could have; these matters way to work through the stages of deni- directors who weren’t always in the are never pleasant and by necessity and al, grief, anger, and perhaps acceptance, loop) to get up to speed on project stacustom tend to be done behind closed in whatever order she prefers to experi- tus. Then the decisive action and good doors. If some minority members who ence them. judgment ensued, notably on a proposal opposed the termination were caught It’s not going to useful to continue to by Hill and board members of like mind unawares by the action of the new re- make disparaging comments about her to terminate a so-called master plan at form majority, then they must have been colleagues if she hopes to have any pos- Manklin Meadows Recreation complex asleep during the recent election cam- itive impact at all going forward. Her that had called for moving playground paign. It wasn’t so much matter of if the published letter in which she accused equipment, mitigating for stormwacontract would be terminated, but when, the new majority of seeming to be “inter, and expanding a parking lot, when and under what conditions. tent on bending/breaking the rules to much of that was overkill and a waste of The new majority acted decisively, suit themselves” lacked any support- association dollars. within a few days of taking office, and ing argument or evidence, except some The solution enacted by a solid super for that it should be commended. To trumped up example of failing to post majority repairs the playground equipdrag out the inevitable would have ac- agendas in a timely fashion. She didn’t ment but keeps it where it is. It involves complished very little and would have respond to a Progress request to cite repurposing two tennis courts into eight simply delayed moving Ocean Pines into which rules she believes the new board pickleball courts. No expensive storma new direction and, over time, healing had bent or broken. water management required, at least so the wounds that any general manager’s Relitigating the option of renegotiat- far. No trees had to come down for parktermination leaves. Rewind to the ousting the contract seems pointless and fu- ing lot expansion, either. er of Thompson’s predecessor six years tile, as the best that could have been acThe new board majority also acted deand the same sort of denial and bad feel- complished by that exercise would have cisively to fill the Renaud vacancy with ing was left in the wake of Tom Olson’s left a position vastly over-compensated. Doug Parks, one of the candidates who departure. Time actually doesn’t heal Sure, bonus options could have been ran on a reform ticket this summer with all wounds, contrary to the adage, but it tweaked or even eliminated, but the best Hill and Tom Janasek. Parks has a lowdoes tend to mitigate them and to make possible outcome would still have left a key demeanor that perhaps didn’t play them bearable. general manager in place at odds with a well on the debate stage, but he seems Cheryl Jacobs, the sole member of board majority on a range of issues. solid and very compatible with the new last year’s board majority to remain on Criticizing a new board for “dragging board majority. His chairmanship of the Bylaws and Resolutions Committee gave him a good grounding in Ocean Pines governance, and his background in IT management could be useful as the board tackles long delayed IT upgrades. Jacobs argued strenuously for the fourth place finisher in this summer’s election over Parks, but all she accomplished was to persuade her colleagues that Frank Daly, had he been appointed, probably would have ended up more as an ally of Jacobs than of the new board majority. That could have been a prescription for more 4-3 vote splits and continued rancor, which Ocean Pines property owners have had enough of. Tom Herrick, the new OPA president, quite accurately portrayed this year’s contest as a change election, with property owners voting for a new direction reflected in the election of Hill and Trendic. The will of the voters, which Jacobs attempted unsuccessfully to invoke on behalf of Daly, was accurately reflected in Hill and Trendic’s consensus choice of Parks to fill the remaining year of Renaud’s uncompleted term. Voters will have another chance to directly exercise their will a year from now. In the meantime, the new board has gotten off to a really solid start.

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Ocean Pines PROGRESS September 2016

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