Brady, Latham, Heavner win OPA Board seats
Farr, Lakernick likely to be elected president and vice president at Sept. 9 organizational meeting
By TOM STAUSS Publisher
Election results for the 2023 Board of Directors were certified at the Aug. 16 annual meeting of the Ocean Pines Association when they were presented by Elections Chairman Tom Piatti, in accordance with section 11a of Addendum 1 of Board Resolution M-06.
The top two finishers in the election, Elaine Brady with 2,293 votes and John Latham with 2,237 votes, earned three-year terms.
Third place finisher Jeff Heavner, with 1,849 votes, will serve out the remaining year of the term of former director Frank Daly, who re-
signed earlier this year. The Board elected not to fill the vacancy but instead opted to have it filled by OPA voters in this summer’s election.
Finishing fourth in the contest was Jerry Murphy with 1,460 votes.
Piatti said that there were 2,993 votes cast in the election, 89 more ballots than last year and representing 38.4 percent of potential votes.
The newly reconstituted Board will elect officers for the coming year at an organizational meeting Sept. 9.
Informed sources have said that current
To Page 3
Canal water quality motion triggers positive reaction
Environment and Natural Assets Advisory Committee member Karen Baldwin offered a motion at the Aug. 26 annual meeting of Ocean Pines property owners to begin a discussion about the condition of Ocean Pines canals and how to improve their water quality.
While it ultimately was not voted on because it didn’t call for specific action by the Board of Directors or OPA management, it was generally well received by those in the audience.
~ Page 7
Election Trust contract renewal odds improve
Prior to the Board of Directors vote count, Elections Committee chair Tom Piatti said the committee was leaning towards a recommendation that the OPA not renew the Election Trust contract next year.
But after the vote count took place, live streamed from the Washington state offices of Election Trust, committee members were leaning in favor of renewing the contract, Piatti said.
~ Page 11
INSIDE THIS EDITION
Ocean Pines ............... Pages 1-35
OPA Finances .......... Pages 36-40
Opinion .................... Pages 42-43
Lifestyles ................... Pages 44-47
Captain’s Cove ......... Pages 48-63
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Elaine Brady
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OPA election
vice-president Rick Farr is likely to be elected president, and current secretary Stuart Lakernick will likely be elected vice president.
Parks, retiring OPA president; and General manager John Viola and Senior Executive Office Manager Linda Martin (team report); and Controller/Director of Finance Steve Phillips (reserves summary).
Monica Rakowski is likely to be reelected treasurer, with the position of secretary still to be decided among those newly elected.
The emergence of Farr and Lakernick as two of the preeminent corporate officers of the OPA represents a vindication, as both were politically targeted by former Board members before becoming directors.
Farr had to go to court to get his election effectively ratified over the opposition of a previous Board, and Lakernick was twice blackballed by a Board majority for appointment to two advisory committees, Strategic Planning and Elections. He is now the Board liaison to Strategic Planning and says he would like to replace Farr as Board liaison to the Elections Committee when the new Board organizes.
The Aug. 26 annual meeting began with the annual SamWilkinson Volunteer of the Year award bestowed on the local Kiwanis Club by Parks and Recreation Director Debbie Donahue.
Then it was announced that there were 135 OPA members attending the meeting in person, enough to establish a quorum.
That made it possible for election results to be certified upon presention by Piatti, without any formal acceptance required by the Board of Directors according to M-06.
Reports were then presented by OPA general counsel Bruce Bright, of Ayres, Jenkins, Gordy and Almand (legal); Chris Hall of the UHY accounting firm, Salisbury branch (audit report); Doug
From Page 1 To
Bright, appointed general counsel in May, said his law firm was well represented handling legal affairs for various boards and councils - Ocean City, Snow Hill, the Worcester County Board of Education - and homeowner associations from Ocean City to Salisbury to Easton.
There are 11 attorneys in his firm, with three associates. Bright said his firm takes a team approach to providing services to HOAs like Ocean Pines.
These services include litigation, which he said “hopefully there won’t be a lot of that”; support to the general manager, advice to the Board of Directors and advisory committees, contracts, and delinquent account collections. “We have a department dedicated to that,” he said.
Bright himself would handle any trial work should the OPA find itself embroiled in litigation requiring a courtroom presence.
Bright also mentioned that his firm’s hourly rate for services is “two thirds of the rate of our predecessor.”
Hall, who supervised UHY’s audit of OPA’s finances for 202223, said his firm was giving the OPA its best, cleanest rating possible.
Parks summarized the Board’s accomplishments this past year.
He cited preliminary work recreating Jenkins Point, near the Ocean Pines Yacht Club marina; the hiring of a new law firm, and extending the contract of the Matt Ortt Companies to manage OPA food and beverage amenities.
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Annual meeting
From Page 3
The Board authorized an incentivized compensation package to attract and retain police officers, approved body cameras for police officers, funded three new police cars and endorsed the hiring of a new chief of police, Parks said.
He thanked former directors Daly and Colette Horn for their service as well as members of advisory committees, who he said volunteer many hours of work on behalf of the OPA. He also congratulated the three winners for their election to the Board.
Viola, armed with colorful photographs of various projects accomplished by the OPA this past year, recapped the initiatives completed or under way.
He also was forward-looking, telling the assembled OPA members of his top priorities for the coming year. Plans and funding options for a new or mostly new Southside firehouse will be presented in October, he said.
Also likely to be proposed in next year’s budget will be a replacement irrigation system for the Ocean Pines golf course, even as Viola pointed out the excellent condition of the course through the windows of the clubhouse.
Another priority will be the continuation of the OPA’s drainage program, including the innova-
tive pipe lining program that has saved the OPA hundreds of thousands of dollars in replacement expense. Ditch cleaning also continues to be a priority, he said.
Funding for drainage is budgeted at $425,00 this year, compared to $767,565 spent in 202223 and $437,602 in 2021-22, $393,896 in 2020-21, and $611,983 in 2019-20.
The last year that drainage was not a priority was 2018-19, when spending was only $33,985.
Viola said that the OPA is facing headwinds in the form of statutory requirements to raise the minimum wage at intervals established in law.
He also said that the OPA’s commitment in support of public safety (fire, emergency medical services, police) has grown as a percentage of the budget. It was 22-23 percent a few years ago, but “today it’s 35 percent.”
He said it could go even higher as the OPA decides how to finance a new or mostly new Southside firehouse, and the day nears when the OPA will be responsible for paying professional firefighters.
Viola also offered a summary of where the OPA was operationally five years ago, where the OPA is today, what the trends are, and what issues will be addressed in the coming year. [See article on Page 26 for details.]
Martin then took over the presentation, summarizing various graphics based on the 2022-23
audit report. Among the salient results:
• The OPA recorded a $1.113 million operating fund surplus for the year.
• Amenities netted $1.596 million in revenue, including $441,000 in food and beverage earnings and $1.115 million combined in golf, aquatics, Beach Club parking, marinas and racquet sports. All of these amenities were in the black for the year, and only one, the Clubhouse Grille, missed its budget (and not by much, $16,000).
• The excess of operating fund revenues over expenses in 2021-22 was $1.913 million, $800,000 more than the result for 2022-23.
• Amenity performance year-over-year improved from $1.461 million in 2021-22 to $1.596 million last year, a positive variance of $135,000.
• The operating fund balance was $6,000 on May 1 of 2016 and had grown to $2.586 million as of April 30 of this year. The Board last year approved a surplus transfer of $985,000 to reserves and $650,000 in assessment reduction.
• The operating fund deficit recorded in 201718 was $1.248 million, following the $370,000 loss the year prior.
• Surpluses in the years that followed were $26,000, $571,000, $1.446 million, $1.913 million and ending at $1.113 last year.
• Base assessments were $921 in 2017-18, topped out at $996 in 2021-22, fell to $896 in
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Annual meeting
From Page 5 2022-23, and dropped to $883 in the current fiscal year.
Phillips then summarized past and estimated future activity of OPA reserves. He noted that the April 30, 2023, balance was $6.691 million, comprised of $5.154 million in the replacement reserve, $185,000 in drainage, $114,000 in new capital, and $715,000 in roads.
Budgeted revenue infusions include $2.025 million for the replacement reserve, $1.095 million for bulkheads and waterways, $105,000 for drainage, $35,000 for new capital, and $490,000 for roads.
Revenue sources include funded depreciation, the waterfront assessment differential, this year’s assessment (new capital), and casino revenues (roads)
Planned expenditures total $2.746 million, including $970,000 from the replacement reserve, $1.151 million from the bulkheads and waterways reserve, $250,000 from the drainage reserve, $25,000 from the new capital reserve, and $350,000 from the roads reserve.
Motions offered by OPA members at annual meeting hit resistance
Janasek encourages OPA to jumpstart discussions to improve canal water quality
By TOM STAUSS Publisher
Environment and Natural Assets Advisory Committee member Karen Baldwin offered a motion at the Aug. 26 annual meeting of Ocean Pines property owners to begin a discussion about the condition of Ocean Pines canals and how to improve their water quality.
While it ultimately was not voted on because it didn’t call for specific action by the Board of Directors or OPA management, it was generally well received by those in the audience.
Other motions offered during the meeting, including one to require the OPA to install an electronic sign at the North Gate, failed to gain much traction.
Former OPA Director Tom Janasek, who also served as member, chair and Board liaison to the committee, offered his assistance to jumpstart discussion on ways to improve canal water quality.
He said the committee, duringhis tenture on it, had extensively researched the issue.
He said that at one time the OPA was conducting annual testing in the canals; he didn’t say whether
these tests are continuing, but if they are they’ve gotten no publicity.
Janasek said there are “a lot of things we can do to improve” canal water quality, including the installation of grass nets.
Eight years ago the committee was heavily into coming up with ways to improve the canals, he said, and he said that effort could be revived.
In her motion to begin a discussion about canal water quality, Baldwin said “our canals aren’t healthy,” citing grass cuttings to cigarette butts to fertilizer run-off as pollutants that enter the canals, degrading water quality.
She said that grass cuttings in particular contribute to a very soft, mushy canal bottom, along with algae blooms that die off and sink to the bottom.
“We need to do something about that,” she said.
Retiring OPA President Doug Parks, presiding over the meeting, said that motions calling for discussion aren’t really necessary.
Motions that can be offered at the annual meeting call for specific action, he said. Such motions accord-
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September 2023 Ocean Pines PROGRESS 7 COVER STORY
8 Ocean Pines PROGRESS September 2023
OPA member motions
From Page 7
ing to OPA by-laws are not binding on the Board, however.
Other motions were offered at the meeting to direct the OPA to convert the low-tech sign at the Ocean Pines North Gate to electronic, to create a new exit lane at the North Gate, and to conduct a referendum giving the OPA the authority to levy fines on violators of community rules and guidelines.
None of these motions passed.
Communications Advisory Committee chair Cheryl Jacobs offered the motion to install a North Gate digital sign, a proposal that has the support of her committee but which has met resistance at the Board level.
She called the proposed digital sign as “a step in the direction of the 21st century,” adding that the committee has a plan to add more electronic signs after the first one is installed.
She noted that the committee has learned that the installation of electronic signs do not require the elimination of the traditional marquee signs that are serviced manually.
The motion to install the digital sign only had 23 votes in favor of it among the 130-plus property owners attending the meeting. That doesn’t improve the proposal’s chances should the committee bring it to the Board again through its liaison, Director Steve Jacobs.
One property owner advised that an electronic sign at Ocean Downs recently was removed, presumably because of the expense of operating and maintaining it.
A motion to add another exit lane at the North Gate also met resistance among those in attendance.
It was withdrawn before it could be voted on, with one property owner suggesting that such a proposal needed to be addressed by the OPA together with state highway officials.
Another resident suggested that adding another lane would compound the problem of inattentive drivers working their cell phones.
A motion calling for a referendum on changing by-laws to allow for fines to be levied on property owners who violate Architectural Review Committee guidelines and OPA restrictive covenants was ruled out of order by the parliamentarian, Bruce Bright, the OPA’s new legal counsel.
Parks said that amending the bylaws are “a different environment”
than action by the Board.
By that he meant that by-laws changes can’t be approved by Board action alone. They must be drafted by the Board and approved for a referendum of OPA members.
A majority of those voting must vote affirmatively for the proposed changes in order for them be included in the approved by-laws.
The property owner who offered the motion said that her property values have been eroded by junk vehicles in her neighborhood.
She referred to a pending matter before the Board to conduct a referendum to include a provision levying fines.
She said the Board should proceed with the referendum.
In fact, the referendum proposal at issue is not to amend the by-laws, but rather to amend the declaration of restrictions in older sections of Ocean Pines that do not allow fines. The property owner also seemed to be unaware that the “referendum” she referred would be targeted at those who run afoul of county and OPA rules on short-term rentals only, not other compliance matters regulated by the ARC and OPA’s Department of Compliance, Permits and Inspections.
The pending matter before the Board also technically isn’t a referendum as that term is commonly understood in Ocean Pines.
It’s a section-by-section plebiscite, in which a majority of property owners in a section must approve a
change in their sectional DRs.
A typical referendum, for example, to amend the by-laws, requires only a majority of those voting to approve a change, a lower bar than a majority of property owners voting to change DRs.
In the Public Comments segment of the annual meeting, comments included:
• a request for a return of guest passes for use at Ocean Pines pools. Guests of OPA or Aquatics members are required to pay what some regard as pricey daily fees at the pools, which are $15 for adults aged 18 and up and $13 for youth aged 5-17.
• a request that the Yacht Club pool, for decades an adults-only pool before it became a so-called “quiet” pool open to all ages, return to its status as adults-only. A property owner complained of kids slapping her and making noise and causing stress as the guards enforce the rules. The adults-only status was eliminated years ago because of complaints of families with kids that it amounted to age discrimination, contrary to federal rules.
• a suggestion that the OPA use Quickbooks accounting software instead of NorthStar. Parks told the property owner who questioned the use of NorthStar is that it’s much more than accounting software -it’s the software that allows departments to communicate and coordinate with one another and performs other tasks in addition to keeping
track of finances.
General Manager John Viola recently announced that the OPA is close to integrating NorthStar with software used by the golf pro shop. The OPA’s investment in NorthStar is considerable, and complaints about outages and other performance issues are rare.
• praise of the Board and Viola by Roelof “Dutch” Oosteveen, a onetime critic of OPA management who has become a supporter.
• a suggestion by Pines resident and local reporter Cindy Hoffman for speed limit signage.
• a call by By-laws and Resolutions Advisory Committee chair Lora Pamgratz for the Board to avoid factional infighting and for directors to treat one another with respect and courtesy. She said there has been less drama on the Board this past year and she encouraged more of that.
• a reminder by OPA Member Don Boger to members of advisory committees that their job is to offer advice to the Board and not direct employees how to do their jobs. He said that the OPA could soon lose a valued department head because of perceived intrusion in operations by advisory committee members.
After the meeting, Viola disclosed that the departing department head is definite. It’s Kathleen Cook, the aquatics director.
“I saw it coming,” Viola said. He advised contacting Cook for details about her reasons for leaving.
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Election Trust contract renewal odds improve
Flawless execution of vote count and ballot adjudication impresses Elections Committee, but proposals for vendors closer to home are still in the running
By TOM STAUSS Publisher
Prior to the completion of the 2023 Board of Directors election, the Ocean Pines Association’s Elections Committee decided it didn’t want to press the Washington state vendor handling the mailing and counting of ballots for why ballots were sent out by a sub-contractor a week late, actually eight days behind schedule.
Committee chair Tom Piatti in an interview several days before the Aug. 24 vote count said the committee was unhappy that the vendor, Election Trust of Bainbridge Island, Washington state, did not respond to an initial inquiry about why the ballots were mailed late.
The late arrival led to a Board decision to delay the ballot return deadline and the annual meeting by two weeks.
There was a lot of venom directed at the committee on social media, with claims that the OPA was conducting yet another failed election.
Now that the ballots have been counted, Piatti said the committee would not be pleased by a continued lack of explanation for the tardy ballot
arrivals.
But in a follow-up interview after the Aug. 26 annual meeting, Piatti said that was a matter for the Board of Directors and legal counsel to resolve.
He seemed much less irritated with Election Trust than he had been before the vote count.
Prior to the count, Piatti said the committee was leaning towards a recommendation that the OPA not renew the Election Trust contract next year.
But after the vote count took place, live streamed from the Washington state offices of Election Trust, committee members were leaning in favor of renewing the contract, Piatti said.
The committee was very impressed with the way the vote count transpired, with Election Trust CEO Tom Thomas carefully displaying ballots to be adjudicated on the big screen in the meeting room of the Golf Clubhouse, visible not only to committee members but any OPA member who cared to watch.
Earlier the committee had kicked around the idea of two live streams, one without audio for
OPA members and another with audio for the Election Committee to communicate with the vendor during the count.
Piatti and the committee scrapped that idea and instead decided to make the video feed with audio accessible to all.
Adjudication of ballots was necessary because 50 or so of them could not be read by Election Master’s scanning equipment. So Thomas displayed each ballot that needed human intervention to determine voter intent.
Despite clear instructions on the ballot that voters should fill in the bubble next to their preferred candidates, some voters used Xs and some voters filled in the bubbles and reinforced that apparent intent with an X.
Thomas interpreted such markings as voters intending to vote for that candidate, and the committee in every instance agreed.
Once the adjudication process concluded, Thomas quickly produced the election results, suggesting that it was possible the ballots had been sent through the scanner before the adju-
To Page 13
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Election contract
From Page 12
dication of the questionable ballots occurred.
Piatti estimated that the ballot counting probably didn’t last much longer than 15 minutes once the ballots were separated from the bar coded outer envelopes.
In the interview days before the vote count, Piatti said that the committee would be recommending that the OPA pursue a reduction in the $15,000 contract fee for election services.
Now it’s less clear whether the committee will press for that, instead leaving that to the Board’s discretion.
One quantifiable result of the delay in sending out the ballots was a $5,000 unbudgeted expenditure to mail out postcard notice to OPA members informing them of a new date for the annual meeting, held Aug. 26 in the Golf Clubhouse.
The initial date for the meeting was two weeks earlier, Aug 12.
Somewhat ironically, the OPA hired its former, long-time elections vendor, Ace Printing and Mailing of Berlin, to handle the postcard printing and mailing, which the company’s owner, Thom Gulyas, did by burning the midnight oil the same day he was given the contract.
That decision triggered a decision by committee George Altston to resign from the committee, on the grounds it was rewarding Gulyas for statements that could be construed as critical of the committee.
“I understand why they did it,” he said, later rescinding his resignation.
Piatti seemed less enthused about a contract price reduction in the second interview after the vote count. He suggested that if the OPA pursues a reduction or rebate in the $15,000 cost of the contract, Election
Trust might decide it was no longer interested in a relationship with the OPA.
Piatti said the OPA might come to regret that, because Election Trust, even with the tardy mailing of ballots, checked off all of the objectives the committee had with respect to this year’s ballot.
He said the company could provide live streaming of the ballot count and ballot adjudication, could send out confirmation emails when ballots were received, and next year will be able to provide on-line voting.
He acknowledged that the four or five days needed for ballots to transit from the West Coast to the East Coast and then back again is a disadvantage.
It was that transit time that had the committee prior to the vote count thinking a vendor close to home would be the better option next year.
“But we’re not sure there’s an East Coast vendor able to do everything that Election Trust can do,” he said. “We’ll certainly make the effort to find one.”
He also said that Ace Printing and Mailing could be in the running if Gulyas is able by the bid submission deadline next year to come up with ways to provide all the services that Election Trust provided this year.
He noted that Ace would have one clear advantage over Election Trust in that ballots would not need to travel cross country and would arrive in mailboxes much sooner than happened this year.
Piatti said that the four or five days needed for first class mail to transit cross country leaves a very compressed timetable for a company on the West Coast, roughly a month for voter information to be transmitted to the vendor, printing and mailing of ballots, and then having those ballots returned to the West Coast.
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He said that compressed timeline could be expanded somewhat by some modifications of the OPA’s governing documents, acknowledging that by-laws changes that might be needed require a referendum vote, and those are time-consuming to execute.
“That would have to be done by the Board working with the Bylaws and Resolutions committee,” and that might not be doable before next year’s election season. he said.
Election Trust was awarded the contract this year despite the continental separation because the vendor was able to provide live streaming of the ballot count, Piatti
said. The committee wants to be able to witness the vote count live, and other vendors closer to Ocean Pines couldn’t or wouldn’t provide that service, Piatti said.
The committee had decided going in to this summer’s election that it did not want to be directly involved in the handling of ballots, as has been standard procedure in years prior.
It did a nationwide search for a company that could handle printing, mailing and counting of ballots, with the option of accommodating electronically-cast ballots.
That latter was rejected for this summer’s balloting, but the commit-
To Page 15
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Piatti confirms he’s
leaving Ocean Pines in the
spring
The Ocean Pines Elections Committee will need to find a new chairman and member in the spring of next year if current Chairman Tom Piatti moves to South Carolina to be close to his daughter.
Piatti confirmed his intentions during a recent telephone interview.
Piatti will continue to have an influence over committee affairs until then.
As chairman, he will be writing up an after-action report on the 2023 Board of Directors election, with committee recommendations on how to handle next year’s election.
There is no obvious successor to Piatti among committee members.
Election contract
From Page 13
tee had been looking to return to a hybrid paper and e-voting process with Election Trust next summer, if this summer’s election was glitchfree.
Another contributing factor to the decision to hire Election Trust was that vendor’s ability to email a confirmation that a ballot had been received to those with a working email address on file with the OPA, Piatti said.
That happened in most cases, although some OPA members found their confirmation emails in their spam folders, suggesting that many voters who received such confirmation were probably unaware that it happened.
Piatti said the committee wants a one-shop vendor that is able to handle both paper ballots and voting electronically.
Committee members don’t want to count ballots themselves. This summer they did not.
Last summer, when the OPA experimented with e-voting, the committee had to deal with a cumbersome process of dealing both with Ace Printing and Mailing and an out-of-area remote vendor for e-voting.
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Vote count started outside committee’s view
Process nontheless appears to comply with language in Board Resolution M-06
By TOM STAUSS Publisher
Sharp-eyed viewers of the Board of Directors vote counting process at the Golf Clubhouse meeting room Aug. 24 may have noticed something odd as Election Trust CEO Tom Thomas and the Elections Committee together
adjudicated ballots that the vendor’s scanning equipment had trouble reading.
The vote count occurred remotely, presumably in the offices of Election Trust in Bainbridge Island, Washington state. The Ocean Pines Association’s Elections Committee decided to make the process visible and audible not only to committee
Screenshot of livestream of ballot count showing vote totals as of 2:22 p.m. Pacific Daylight Time, or 5:22 p.m. Eastern Daylight time. The vendor had clearly started tallying votes before adjudication of ballots that scanning equipment couldn’t read.
members but to any OPA member attending the meeting in person or seeing it on-line.
The process started at the scheduled time, 5 p.m., or 2 p.m. Pacific Daylight Time.
A large screen was set up in the meeting room, with Thomas and vote counting software clearly visible on screen.
Elections committee members were seated at a table positioned under the big screen. Thomas was conversing with committee members during the ballot adjudication.
At at least one point during the ballot adjudication process, a screen briefly appeared that had a running total of vote tallies for each of the four candidates competing for seats on the Board, in the order in which they finished.
The screen shot showed that as of 2:22 Pacific Daylight Time, or 5:22 Eastern Daylight Time, as ballot adjudication was under way, the outcome of the election was already determined and known.
It raises a question about when Election Trust opened the envelopes and separated them from the ballots inside, and when the vote count in Washington state actually began.
The 2:22 PDT timestamp suggests that it is
To Page 20
18 Ocean Pines PROGRESS September 2023 OCEAN PINES
September 2023 Ocean Pines PROGRESS 19
Vote count
From Page 18
very possible if not proven that the vote count occurred before 5 p.m. EDT., with no member of the Elections Committee witnessing it.
Indeed, within minutes of the completion of the adjudication, final results were displayed on screen and announced by Committee Chair Tom Piatti.
The screenshot showed Elaine Brady with 2,287 votes, John Latham with 2,231 votes, Jeff
Heavner with 1,842 votes and Jerry Murphy with 1,457 votes.
The actual results announced shortly after adjudication was completed differed very little from the screenshot tallies.
Brady had 2,293 votes, Latham 2,237, Heavner 1,849, and Murphy 1,460. Final totals reflected votes gained by each candidate as a result of adjudication.
Clearly the process in which ballots were scanned by Election Trust occurred unwitnessed by the committee or OPA membership on Aug.
24 or before. Some critics of the process no doubt will find fault with this, but it’s actually not at odds with language in Addendum A of Board Resolution M-06 that governs Board elections.
Paragraph 9 of the addendum reads as follows:
“Counting Ballots. It is the responsibility of the Committee to count the ballots either by the Committee itself or the Committee may delegate this responsibility to an independent contractor hired pursuant to Section 5.A. The ballot
410-208-0707
counting operation may be observed remotely by any association member. Association members may witness the ballot counting process remotely but will not be privy to vote totals during the counting process nor engage in any way with the ballot counting process, Election Committee, consultants, or Association staff.
“The ballot counting will be conducted in a room of sufficient size to accommodate the process and remote viewing of the process for Association Members wishing to observe the count, said room shall be properly equipped to allow clear remote viewing for Association members wishing to observe the count. The Committee may request the assistance of a computer consultant and designated Association staff.”
This section clearly indicates that the committee may delegate the counting of ballots to an outside contractor.
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If such delegation occurs, this provision does not explicitly mandate when the counting occurs or that the committee must witness it.
Perhaps this is implied, because there is language that says that OPA members “may witness” the count. It’s not a requirement, however. “May witness” means it’s an option. “Shall witness” would have required it.
How could a member witness the count if the committee itself was not witnessing the count?
Arguably, section of the Addendum A could use some tweaking.
The process that unfolded Aug. 24 would also appear to be consistent with language in the OPA by-laws pertaining to elections.
Section 5.03 reads as follows:
“The Elections Committee shall supervise the printing of ballots, the mailing of election materials to members eligible to vote, and the procedures for safeguarding and tabulating return ballots.” Nowhere does it say that the Elections Committee has to witness the actual count.
The by-laws provide higher level guidance on matters such as elections, while Board resolutions offer more detailed instruction.
They’re not always up-to-date with current practice, however.
Section 4.02 says “there shall be a validation of the election as described in Section 5.03.” But Section 5.03 makes no reference at all to validating ballots. That’s addressed in Board Resolution M-06, Addendum A, paragraph 9.
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Gulyas interested in bidding on next year’s Board election
Differences with Elections Committee won’t disqualify local vendor from submitting proposal next year, Piatti says
By TOM STAUSS Publisher
Ace Printing and Mailing Contractor president and chief executive of Tom Gulyas said recently he’s very interested in reacquiring the contract he lost earlier this year managing the Ocean Pines Association’s Board of Directors election.
But it’s also evident he’s not going to play nice with the Elections Committee just to make that happen.
In a recent post on the Ocean Pines Residents Oversight Community (ROC) Facebook page, Gulyas recapped his version of events that led to his not getting the elections contract this year, after more than 20 years of handling it for the OPA.
Gulyas began his ROC post with the gloves off.
“Some of you people conjuring up your own facts are beginning to make my head hurt,” he said.
Then “one more time” he offered his narrative of what occurred.
“There was no way to give the committee a formal bid because the filing date for candidates had not passed. I told them this. I also said to the election committee chair, ‘If things are designed and printed the same way as in the past, there is no reason to believe that there will be a huge price increase. There never has been and I’m sure it will be approximately the same cost unless things change.’”
Gulyas said in his post that “it is impossible to price something, that I have no idea what I’m printing. It would be akin to saying to a builder “build me a house. I have no plans but give me the cost first!” I know that may seem elementary to some, but this is only an example.”
Gulyas rebutted claims by Elections Committee members that prior to the contract award to Election Trust they had made repeated attempts to contact him.
“There were never ‘repeated attempts’ to contact me. That statement is false. How do I know? I’m the easiest person in the world to find. I’m either at home, or at work. My email, website, cell phone… all of it is all over the Internet,” he said. “I met face to face with the elections committee only once. I got the feeling from the beginning that this time, it was going to be very different, and my intuition served me well again.”
To support his contention that he had not exhibited a lack of interest in renewing the contract, Gulyas posed this question: “Why would a contractor like me, who has been working very closely with OPA for over 20 years, suddenly decide not to work with them without notice? I don’t run my business that way. I never have, and this type of comment is nonsense.”
Gulyas called the committee “incorrect in what they believe are facts. They are not. The election committee is incorrect in what they believe are facts.”
He then offered a critique of the committee’s decision to hire Election Trust.
“Ask yourselves these questions:
“Why would the committee take this mailing clear across the country to an outfit who reportedly had to find other vendors to help them? I never have.
“Why would the committee select a company who is charging well over twice the price that I’ve ever charged? You mean to tell me that nobody on the elections committee questioned the inflated cost increase?
“Why would a mailing company from across the USA mail some envelopes with preprinted indicias, while some were mailed with stamps?
To Page 24
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“Why exactly were the ballots sent out in batches, albeit a week+ late, and not all at once? (This really confuses me, but I do have my thoughts) ... I could go on, but I’m going to stop there.”
Committee member George Alston told the Progress that Gulyas is incorrect when he says that Election Trust is charging the OPA more than twice Ace Printing’s most recent charge.
Alston said that Ace Printing’s billing last year was about $10,000, not including postage.
firmed that he is planning to move out of Ocean Pines in the spring, but he said that is to be close to his daughter in South Carolina, not because of any distress over this year’s election process.
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Committee members have said that Election Trust checked off all of the boxes on what the committee wanted in a vendor, especially the ability to remote view and interact with committees during the vote count. Committee members also liked Election Trust’s ability to confirm receipt of ballots via email. Although the OPA did not take advantage o this year, the committee also appreciated the company’s ability to handle on-line voting, which members would like to implement next year.
Committee members have said that it’s not usual for election contractors to sub-contract out certain functions.
In the case of printing and mailing ballots, Committee chair Tom Piatti has acknowledged that Election Trust sub-contacted this function. As its name suggests, Ace Printing and Mailing does not need to sub-contract this particular service.
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Election Trust’s bid was for $15,000, including most of the mailing cost, he added.
“When postage cost is factored in, the two bids were comparable,” he said.
As far as the late mailing of ballots, the Elections Committee is not defending Election Trust. It continues to be a source of irritation, particularly because the company had not offered a credible explanation for why ballots were mailed to OPA members well past the deadline.
In his ROC post, Gulyas opined on what might result from this year’s election.
“This year’s fiasco will only serve to drive other potentially good people away from committees…. probably most of them,” he said.
So far, unlike last year, when the former Elections Committee resigned en masse, there is no indication that the current committee intends to resign. Piatti has con-
He did concede some sleepless nights during the period when OPA members were waiting for ballots to arrive.
Gulyas summarized his narrative of events by saying he holds no animosity toward the OPA, the Board or the Election Committee or any Ocean Pines residents.
“The decision was what it was and the committee decided to take another course. That’s fine. ... If future election committees wish to work with my company, and I hope they do, I’ll be more than happy to help them and guide them,” he said.
Gulyas claimed that he has “more knowledge about OPA elections than anyone. My job was to keep your costs in line. My job was to make sure elections went off well, but only to the best of my ability and what I was tasked with. I’ve saved OPA residents tens of thousands of dollars over the years.”
He said he had been “made the scapegoat” in this year’s election saga.
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Golf course irrigation, Southside firehouse at the top of list
By TOM STAUSS Publisher
J
ohn Viola set out of his major priorities for the coming year as part of a detailed general manager’s report he delivered during the Aug. 26 annual meeting of the Ocean Pines Association.
Viola said his priorities are in-
Most of his report was recapping
stalling a new irrigation system for the Ocean Pines golf course and presenting a plan for a substantially new Southside firehouse. He detailed his major priorities for the coming year in an interview with the Progress the day before the annual meeting.various capital projects completed this past year, liberally punctuated with photos of the work in progress or completed.
He’s particularly proud of the drainage improvements that have been accomplished in recent years using an innovative process that has been responsible for substan-
tial cost savings.
He said the work group that’s been working on the firehouse project would be presenting a plan with funding options to the Board of Directors in October.
Another capital project, that Viola said he didn’t expect to propose in the 2024-25 budget, is for a new racquet sports building.
There still is no consensus in the racquet sports community on whether a new building, one or two stories, or renovating the existing building will suffice.
“At minimum, we’ll be proposing new bathrooms for the building,” he said.
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With various improvements to the Administration Building now complete, Viola said another project in the mix is a Board room addition, but he said he wasn’t sure it “would make the cut” in next year’s budget.
“It’s something we should do in the next two or three years, though,” he said.
The North Gate bridge renovation is mostly complete, with some additional trim yet to be installed.
A second fountain for the North Gate pond was delivered but didn’t
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“What is not fine is allowing certain individuals to slander my company, my employees or me. You want to come to me, I’m fine with that. You want to have an adult discussion, I’m good there too… just make sure you bring your “A” game,” he concluded.
While committee members dispute Gulyas’ version of what transpired earlier this year, neither Piatti nor Alston said that Gulyas was disqualified from bidding on next year’s contract.
But he also said the committee is looking for a vendor that can manage all aspects of the process, even if certain functions are sub-contracted out.
“No company does it all in-house,” Piatti said.
The invitation to Gulyas seemed clear enough.
26 Ocean Pines PROGRESS September 2023 OCEAN PINES
From Page 24 28 AveryHall.com
Piatti said that the printing and mailing of ballots close to home gives Ace Printing and Mailing a clear advantage over the competition.
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GM report
From Page 26
function when installed. That meant he couldn’t produce a photograph of the North Gate ponds with two fountains, something he had hoped to do in time for the annual meeting.
There were plenty of other photos on display during his report, however, graphically depicting a robust list of projects he and his team delivered to the OPA membership.
Viola said another fountain from
another vendor is on order.
“We’ve done a lot to the bridge to make it more attractive, but it still retains its old charm and character,” he said.
He mentioned the Swim and Racquet Club’s new roof costing about $25,000 and maintenance of the Beach Club boardwalk decking and the planting of palm trees at the Beach Club prior to the season.
“We’re probably going to have to replace the deck in the next several years,” he said, while the roof replaced under a previous GM has at least another ten years of useful life.
The golf clubhouse has just undergone an exterior power washing, the carpeting in the lobby has been cleaned, and the meeting room has been needed on occasion to accommodate bar and restaurant business.
Viola said that there has been a lot of good feedback of the new t-docks and gas lines at the Yacht Club marina, and that boaters from the outside are coming to purchase gas and dine and drink at the Yacht Club.
Elsewhere at the Yacht Club, the rusted out ceiling ironworks at the front entrance have been cleaned and the banquet room ceiling painted, with more sprucing up to continue in January when it’s closed for business.
Two outside contractors were used on these projects.
Viola told the Progress that ten years or so spending on police, fire protection and EMS was about 24 percent of the OPA budget; it’s now about 35 percent.
“I anticipate that the percentage will increase once we build a new firehouse and we move toward a paid firefighting staff in three to five years,” he said.
NorthStar software is performing well, and there will be an effort to gain even more efficiency by year’s end.
The intent will be to integrate golf operations, and the E-Z link software, with NorthStar, Viola said.
The general manager said that the OPA is operating on all cylinders, with recent operating surpluses invested in improvements while keeping assessments level.
In addition, he said the OPA has been increasing the level of cash held in reserve fund, raising the percentage of assets covered by cash to 27-28 percent, up from 22-24 percent.
The goal is to raise it to the low 30s, he said.
28 Ocean Pines PROGRESS September 2023 OCEAN PINES
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The raised flower box on the North Gate bridge, one of many improvements made to this iconic structure this past year.
Aquatics director resigns, cites Board inaction on HR complaint
Apologies by Aquatics committee too little, too late
By TOM STAUSS Publisher
For Aquatics Director Kathleen Cook, public apologies by the Aquatics Advisory Committee were too little, too late.
She resigned in late August, agreeing to work through Labor Day to complete what she says was an excellent summer for Aquatics, fully staffed with lifeguards, open pools, and a very positive bottom line.
After taking a month off in September, she’ll be working for the state of Maryland as a health officer, inspecting pools. Her coverage area could include inspections of Ocean Pines pools, which would be a somewhat ironic outcome.
“That’s up to my [new] boss,” she said. She will work out of the county-state office building on Isle of Wight. She’ll continue to live in Ocean Pines.
Triggering her resignation after 11 years in the employ of the Ocean Pines Association, the last
two-and-a-half years as aquatics director, were criticisms of her demeanor and job performance by members of the Aquatics Advisory Committee at its June meeting, available for viewing as a You-Tube video
After that meeting, she lodged a complaint with OPA General Manager John Viola and the OPA’s human resources specialist.
“They were great,” she said, but then in her view the process seemed to bog down, with no formal action taken by the Board of Directors on the HR complaint. There was no public apology or statement of regret by the Board, she said, or any action taken against the offending committee members.
OPA President Doug Parks and Vice President Rick Farr met with the committee to discuss their complaints, the result of which was a public apology by Committee Chair Gary Miller and other committee members at the July meeting. More
apologies came in at the committee’s August meeting, which Cook attended remotely.
“They were antagonistic towards me personally, my knowledge about pools, pool safety, my ability to find and hire staff,” she said of the committee during its June meeting.
She credited Miller with coming up to her later “very sincerely, very professionally” to apologize, which she said she accepted.
But “at the end of the day, I felt they (the Board) didn’t respect me,” she said. “I never have had a formal response by the Board to my complaint. There’s been no urgency whatever to respond.”
Stuart Lakernick, the committee’s Board liason, said in his view the situation had more to do with operations and personnel in particular and that such matters are best left to the general manager to address.
“The Board is [about] policy,” he said, adding that the offending committee members had apolized numerous times.
He said that he was sorry that Cook had resigned and wished her the best in her new job with the county.
“She did an amazing job with us,” he said, adding that she was leaving on a high note with Aquatics running well.
Cook said there was a disconnect between the way the Board dealt with statements made by an outspoken former member of the Parks and Rec-
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Resignation
From Page 29
reation Advisory Committee, Amy Peck, and the complaints against Cook by aquatics committee members.
Both were personal in nature, she said, but in the case of Peck, a former appointed director, she was removed from the committee. Cook said there was an inconsistency in the way the Board handled the two committee personnel issues.
Despite the public apologies by the Aquatics committee members, Cook said she still believes there is hostility directed towards her and an unwillingness by some members to accept her professional opinion on certain issues identified by the committee.
She cited the committee’s continued interest in adding a new set of stairs in the shallow end of the Swim and Racquet Club pool. She told them again during the August meeting that this was not possible, that there simply isn’t enough room in the shallow end even if it was a good idea otherwise.
“Lap lanes are in use at the pool,” she said. “Inconveniencing lap swimmers to address a non-issue with the stairs is not a good idea.” She said there is a pattern of the committee keeping an issue alive after she contends it’s been dealt with. “They won’t listen to reason and they won’t let up.”
She disputed Miller’s contention that the ex-
isting stairs is a magnet for kids hanging on to it or monopolizing it, denying easy access for adults who want to enter or leave the pool. To the extent there is a problem, she said the guard staff is instructed to ask kids not to hang out on the stairs.
She also mentioned an incident at the same pool in which a pool patron was unable to vacate the pool because the handicap chair was broken. She said the incident was quickly dealt with by Public Works, and that affected person was willing to wait for the chair to be fixed before exiting the pool.
She said the committee greatly exaggerated the severity of the problem with the handicap chair.
“And it was her choice to stay in the pool for a short time, before help arrived,” she said.
Cook said that she’s not leaving the OPA because of any dissatifaction with Viola or anyone working in OPA management.
“They’ve all been great,” she said. “All the department heads work great together. John (Viola) has been a great boss.”
The resignation occurred despite an obvious effort by the committee at its Aug. 18 meeting for a reset of its testy relations with Cook.
It began with another to apology to Cook for remarks made in the June meeting, and continued with a pledge by Miller that such comments would not happen again.
It then kicked into an even higher gear when Miller and other committee members commend-
ed Cook for exemplary performance at the pools this summer, particularly the full staffing of lifeguards. With the exception of pool closures caused by the weather, Miller noted that pools were fully open this summer.
After Miller concluded his remarks, committee member Steve Ransdell jumped in with his own apology to Cook and his congratulations for “all the hard work” of the Aquatics staff this summer. Ransdell was attending the meeting remotely.
It was Randell’s comments in the June meeting in particular that triggered the controversy. In the of the meeting quotes him as saying that Cook has “negative personality” and needs “coaching” to be more people friendly.
Committee members also said during the meeting that they had been in contact as individuals with Aquatics staff and didn’t like what they were hearing. It wasn’t clear what they didn’t like in particular.
Cook told the Progress that committee members asking questions of staff is inappropriate, well outside the bounds of how a committee should function.
“And yet there have been no consequences for that,” she said.
Cook attended the August meeting remotely. Her presence made it possible for some committee questions and misunderstandings later in the meeting to be addressed. Early on, it seemed as if her presence was unknown to those attending the meeting in person.
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Miller apologized to her for not noticing her on-line presence earlier.
Lakernick, also attending remotely, weighed in on a charging document from a previous meeting that had been rejected by the Board and sent back to the committee. It had to do with giving pool members preferential access to the Yacht Club pool whenever a long line forms with some non-members competing for space inside the pool area with members.
Lakernick said the Board determined that no such preferential treatment was possible, that it would be discriminating against renters. Lakernick said that renters or others who don’t purchase annual or seasonal pool memberships are in effect “one-day members” when they use an Ocean Pines pool.
Miller initially disputed that, suggesting that renters are not a “one-day member” until they “get up to the desk and pay.”
Lakernick didn’t address that argument, instead saying that he was unaware of any complaint from pool members that they had been denied access to the Yacht Club pool because renters had been given preferential treatment. He asked Miller if he had any example of that.
Miller replied that there had been one complaint posted on Ocean Pines Forum.
Lakernick said that neither he nor the Board will respond to complaints on social media.
“If not specifically emailed to us, it doesn’t happen,” he said. The way to contact the Board or
OPA manaagement is to send an email to directors@oceanpines.org or to info@oceanpines. org, Lakernick said.
“We don’t have any record” of denial of service complaints and “you can’t go by social media posts,” Lakernick added.
After Miller seemed to acknowledge that the proposed charging document had hit a dead end, he changed the subject to discuss a proposal for a one or two-week membership for guests of OPA or Aquatics members.
Lakernick indicated he was receptive to this idea and that it could be discussed further, suggesting that a cap of four individuals per shortterm membership should be considered.
He also is an advocate of a special membership for grandparents, or perhaps a reduced rate for grandkids of members. The grandparents option was not discussed during the Aug. 18 meeting.
He didn’t definitively answer a question about whether there is a membership option available for renters who want to use the pool for one or two weeks.
“I don’t know that we have a provision for that,” he responded.
There is no weekly membership available in Ocean Pines for renters or anyone else. There was one at one time, but it was eliminated a few years ago. Instead, renters like members of the general public can pay daily fees at the door.
The same is true for OPA members who don’t buy Aquatics memberships.
Lakerneck then disposed of another idea that has been suggested from time to time, that of a access fob that would let a member into a pool when an attendant is not available.
“It’s incredibly cost prohibitive,” he said, and a fob could be easily passed from one user to another, defeating the purpose of a membership.
“The fob idea is a dead idea,” he said.
After a brief discussion of other “perks” that could be devised as a way to promote pool memberships, Miller raised several other issues that Cook subsequently addressed.
Miller mentioned that the spongy surface at the Swim and Racquet Club splash pad was coming loose in places, creating a safety hazard; that the ramp from the Swim and Racquet pool deck to the splash pad was very hot, and that perhaps some sort of new ramp surface could be installed to protect feet; and that kids at the Swim and Racquet Club pool were holding on to and crowding stairs in the pool’s shallow end.
Miller asked Lakernick if he would be willing to ask General Manager John Viola whether a second set of stairs could be added to the shallow end of the pool.
Cook’s on-line presence had not been noted up to that point in the meeting although her name had been visible on screen.
Lakernick invited Cook to respond to the suggestion for a second set of stairs.
The short answer: It wouldn’t be practical.
September 2023 Ocean Pines PROGRESS 31
thru Oct. 27
10-27-23
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Aquatics committee
From Page 28
The pool is the practice and meet pool for the Ocean Pines swim team, and the steps have to be manually moved to accommodate those activities.
She said the steps that are there now are ADA-compliant and are an improvement over built-in wall steps that some pool users have trouble navigating.
The steps were added at a cost of $10,000.
Cook said she visits the Swim and Racquet Club pool three or four times a day and rarely have the stairs been occupied by kids. Whenever she sees a problem, she said she advises guards to ask kids to move.
“We have to manage [it],” she said, adding that the guard staff does a good job of doing that.
Lakernick then asked about the hot ramp to the splash pad. Cook said she would check with Clint Parks, the Public Works employee who has handled maintenance at the pools for more than 20 years, to see if there is an alternative.
But she noted that hot decking surfaces are not unusual at Ocean Pines pools, noting the tiles at the Yacht Club pool are very hot.
Pool patrons learn to wear shoes rather than go barefoot, she said.
She rejected a suggestion for some sort of indoor-outdoor carpet on the ramp, because she said it would be a magnet for mold.
As for the condition of the splash
pad surface, she said she and Clint Parks would be proposing a new splash pad surface as part of the Aquatics’ capital budget for next year.
With Cook leaving Ocean Pines, it will be up to Parks or whoever replaces Cook to press the issue in time to be included in the proposed budget for 2024-25.
Rubaroc, the surface that’s there now, doesn’t hold up well to expo-
Racquet Center repairs
Ocean Pines Public Works and a team of outside contractors in late July finished repairs to a wind-damaged platform tennis court at the Ocean Pines Racquet Center. The damage occurred in March, when extreme weather whipped through Ocean Pines, and high winds gripped the mesh wind screens and pulled down the fencing. Public Works Director Eddie Wells said staff, along with outside contractor Total Platform Tennis and a local welder, Waggoner Welding, contributed to the repairs. He estimated the total cost to be between $25,000 and $30,000. Public Works also recently completed a new blue shade structure at the racquet center that includes ceiling fans.
sure to chlorine, she said, and for that reason staff will be proposing a new brand of surface, one that has worked well at Jolly Roger Amusement Park in Ocean City.
“No ifs, ands or buts, we will be proposing” a new splash pad surface with an alternative to Rubaroc, she said. Finally, Cook fielded a complaint about the two deep end ladders at the Yacht Club pool. Miller said that a pool user had emailed him to com-
plain that these ladders were not slip proof, and that this user had suffered an injury while climbing up the stairs.
Miller said this user said an email had been sent to Cook about this incident, with no response.
Cook said she had not received the email at issue and was unaware of the complaint.
But she said she always responds to email, and “now that we know there’s an issue with the metal ladders not being slip proof we can do something about them” in time for Memorial Day next year.
An easy solution would be some sort of tread on the existing ladders, but she said it may be necessary to replace them entirely.
There was then some discussion on how best to forward complaints or questions about the pools to Cook.
She responded that the best approach would be to send emails to Viola or to Lakernick, who then could forward them on to Cook.
But it was clear that Cook’s presence at the meeting was appreciated and afforded opportunities for issues to be brought up and addressed immediately by her.
Given her resignation just days after the meeting, however, it was clear that for her, at least, the committee’s overtures were too little, too late, and didn’t address what she regards as the Board’s inaction in formally addressing her HR complaint.
32 Ocean Pines PROGRESS September 2023 OCEANPINES
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Large grant funding doesn’t come through for Southside firehouse
Cost estimate remains at $5.5 million, but savings from keeping existing apparatus bays could reduce that
By TOM STAUSS Publisher
General Manager John Viola confirmed in an Aug. 18 telephone interview that a hoped-for large grant for rebuilding the Southside firehouse has failed to materialize, which leaves a substantial portion of the eventual cost to be absorbed by the Ocean Pines Association.
In a report to the Board of Directors in June, Viola had said that a formal proposal for a new or mostly Southside firehouse could be presented the following month or perhaps the annual meeting in August.
Those possibilities turned out to be overly optimistic, with Viola now saying that a formal proposal will be presented to the Board in October, including a number of funding options.
The failure of substantial grant funding to come through means a working group that has been formulating plans in close consultation with the Ocean Pines Volunteer Fire Department has had to refocus attention on funding, which could include community fund-raising and assessing OPA members for a portion of the cost.
Special assessments aren’t on the table, Viola said, but there could be a one-time assessment increase
to cover the cost.
Viola told the Progress that options could also include borrowing for some or all of the cost.
As an example, he said that borrowing $1 million at 4 percent would cost the OPA only $40,000 per year in interest expense. Including paying down principle, Viola said the impact on the annual assessment would only be a few dollars.
The OPVFD already has $1.6 million on hand from two previous state grants and $1 million in designated savings for a new or substantially new Southside station.
Viola has previously estimated the cost of a new station at a range of $5.5 million to $5.7 million, but he told the Progress that could be reduced if the working group recommends keeping the existing three equipment bays.
An engineering firm from Salisbury is being brought in to evaluate the condition of the bays’ outer walls. If they’re deemed to be in good condition, they would be retained, Viola said, with a savings somewhat less than $1 million “but still significant.”
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The rest of the existing firehouse would be razed, with a new building erected on the existing or somewhat expanded footprint,Viola said.
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continues to draft a proposal to include details on how much the OPA might need to assess OPA members for a portion of the cost of the project. That number has been elusive to date. Viola said the size and scope of the building will depend in part on the extent to which the OPA and OPVFD will be able to raise grant funds and donations to help defray the cost.
Viola said anyone interested in the working group’s planning to date could look at rough drawings of the exterior, front and back, as well as the interior floor plan of the building that he included in the meeting slides for his GM report in June. Those plans were published in
the July edition of the Progress [issuu.com/oceanpinesprogress].
The floor plan showed a one-story building of roughly 14,350 square feet, which Viola said in June was a possibility but not definite. It includes all the meeting, training, administrative and equipment rooms contained in a proposed design of a new building presented by the OPVFD several years ago, at a price tag that seemed very high to some observers at the time.
Viola said some of the rooms have been made smaller when compared to that earlier design, but that he believes OPVFD officials are pleased with the latest design as it is shaping up.
The most recent cost estimate for the project ranges is about $5.5 million, but that was very preliminary, and did not include keeping the existing equipment bays.
Costs will also be estimated for temporary housing of the OPVFD during construction, and build-out of items typical for a new firehouse.
The site of the new building seems to have been narrowed down to the current Southside location, on the footprint of the existing building but possibly larger.
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ROC’s Clifford pressing ahead with requests for data from last year’s e-voting
OPA provides copies of e-mails to Amy Peck related to her dismissal from the Parks and Recreation Advisory Committee, but ROC founder hasn’t given up on request for more than 20,000 email documents
By TOM STAUSS Publisher
It’s not over, the month’s long saga of the Residents Oversight Committee (ROC) trying to obtain access to documents related to the 2022 Board of Dirctors election. Back on June 28, the OPA finally accommodated the request of the ROC founder Sherrie Clifford for access to the paper ballots related to the 2022 Board of Directors election.
But it hasn’t ended there, despite comments in July to the effect that as far as OPA officials were concerned, the document request had been accommodated and the matter closed.
It turns out that Clifford didn’t get that memo. She’s not done, and intends to press ahead to obtain two additional sets of documents related to last summer’s election.
That could set up a clash with the OPA.
One set includes all the data related to the electronic voting handled last summer for the OPA by Vote HOA Now, an election services company based in Tigard, Oregon.
Last summer’s balloting was a hybrid affair, including both paper ballots and electronic ballots cast on a special Website established for the purpose of collecting and counting ballots from OPA members.
Clifford said she wants the data showing candidate vote counts from Vote HOA Now and would like to work directly with representatives from that firm to obtain what she’s looking for.
“I don’t want any material transferred to OPA servers but raw data from Vote HOA Now,” she
said. The objective is to verify vote counts from e-voting, without the potential for any tampering from the OPA before she is able to examine data logs and related documents.
She said the recent examination of paper ballots from last year’s voting produced an additional seven votes for former director Amy Peck, reducing the margin between her and the winning third place candidate, Monica Rakowski, to ten votes.
She said it’s possible an examination of the e-votes will produce additional votes for Peck, sufficient to overturn the election.
A second set of documents she hasn’t given up on are all Board emails related to last summer’s election.
Clifford said her first priority is the e-voting documentation, with the emails to be addressed once the e-voting is addressed.
She said her attorney has received communication from OPA attorney Bruce Bright indicating that emails related to last summer’s election number 20,000 or more.
“That must include a lot of duplicates [contained in email threads],” she said, acknowledging that there would be no easy way to isolate the duplicate posts.
She’s been advised through her attorney that the expense of providing the requested emails could be several thousands of dollars. She’s been told that Bright’s office would need to review the emails prior to their being turned over to her.
She said her immediate focus is on the e-voting, with the emails of secondary importance to
be addressed once she obtains documents related to e-voting. Once that matter is resolved, she said she would then decide whether she still wanted to pursue the emails.
Rick Farr, the OPA vice president and likely president this coming year, told the Progress that it’s unlikely the OPA will be willing to accommodate the request to provide any on-line material from Vote HOA Now.
“As far as I’m concerned, that won’t happen,” Farr said. “This case is closed.”
He said he’s uncertain that the vendor even has retained the information from an election conducted last year, from an association that is no longer a client, or would be willing to provide it even if it is still available.
He suggested that if Clifford wants that data, she probably will need a court order to make it happen.
That’s exactly what the hiring of Bruce Bright as the new OPA general counsel was supposed to forestall.
He has said part of his job description is to keep the OPA out of court.
As for the Board emails related to the 2022 election, Farr said he doubted that Clifford in the end would want to pay the cost of producing copies of 20,000-plus emails.
“I guess we’ll find out soon enough,” he said. “I just don’t see the point in revisiting an election that’s been over and done with” for more than a year.
Meanwhile, Clifford confirmed that her ROC colleague, Peck, has received copies of Board emails related to her recent dismissal as a member of OPA’s Parks and Recreation Advisory Committee.
The administrative cost of obtaining those emails, which Peck is reviewing, was $240, Clifford said.
No expenses related to Bright’s time reviewing the documents were included in the invoice to Peck.
Clifford has said that she never should have had to hire an attorney to get a response to her document request.
The attorney has been on the job since February on Clifford’s behalf.
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Tree compromise may have fallen through
Homeowner says she’s going to ask for the $900 back that she paid the OPA
By TOM STAUSS Publisher
Kathleen Conforti has been engaged in a war of words with the Ocean Pines Association over a tree that was removed from her property in March, without her approval. The tree appeared in a photo to have been partially uprooted, possibly putting a nearby home in peril.
Although it seemed the dispute had been resolved in mid-August, when she paid the OPA $900 to reimburse it for the cost of having the tree removed, she has since reconsidered the compromise.
She told the Progress in a voice mail message that she would be demanding her $900 back. She said she planned to make a presentation at the Aug. 26 annual meeting of the association, but that didn’t happen.
She contends that while OPA governing documents allow for OPA crews to enter onto a property to address alleged violations of community rules, there should be a Board determination of a
Ocean Pines
continuing violation.
No such determination occurred in her case, she said.
There is no indication that the OPA is interested in reopening the dispute or returning the $900.
But if the $900 is returned, an informed source told the Progress that a much higher amount could be tacked on to next year’s assessment.
The $900 that she agreed to pay was $2,000 less than an invoice sent to her in May for $2,900, comprised of a $2,800 contractors fee and a $100 OPA administrative fee.
She was advised that the $2,900 would be added to her assessment for this year, and that her right to vote in this year’s Board election and to use OPA amenities would be suspended unless she paid up.
After a report about the matter in a local weekly, oceanpinesforum.com reported that she had agreed to pay the OPA $900 as a way of resolving the matter.
Police adopt
Conforti told the Progress in an Aug. 24 phone message that she had reconsidered the $900 payment she made and would be asking for it back.
According to Conforti, she had never received certified letters from the OPA advising her of the tree and that the OPA Public Works Department, or a contractor, would be entering onto her property to remove the tree, action that is permitted in the Declaration of Restrictions for Section 9.
Her home is located on 22 Tail of the Fox Drive, in Section 9.
OPA officials say that have proof that certified letters were sent to Conforti.
In any event, since the OPA has been paid the $900 and seems unwilling to return it, regarding the issue as closed, it would appear that Conforti would have to sue the OPA to get her money back.
“If she wants to spend thousands of dollars in legal fees to get $900 back, that’s her choice,” Rick Farr, expected incoming president of the OPA, said recently. “I’m not sure any court would agree with her, but she’s welcome to try.”
body camera policy
Ocean Pines well ahead of deadlines in state law
Ocean Pines Police have adopted a policy for body cameras, with the equipment going into use on Aug. 9.
Body cameras were leased by Ocean Pines at an annual cost of $30,000. However, there was a delay in implementation because police first needed to adopt a policy to use the equipment.
Even so, the usage of body cams by the OPPD is well ahead of deadlines for their use mandated in state law, which is July 1, 2005.
Police Chief Tim Robinson said he reviewed and approved a “body worn camera” policy and was able to get the equipment out to the officers of the OPPD as scheduled.
“These body cameras are an incredible tool. First and foremost, they act almost as an independent witness to what happened. In my professional experience, they have been invaluable to ascertaining an accurate accounting of what transpired on any scene involving a police officer,” Robinson said.
General Manager John Viola said the body cameras will benefit both police and the Ocean Pines public.
“Safety is always a top priority, and we believe the use of these cameras will help foster mutual trust and accountability between our dedicated police force and our valued Ocean Pines homeowners and residents,” Viola said.
1,445
September 2023 Ocean Pines PROGRESS 35 OCEAN PINES
PFc. John Pianka with a body cams that Ocean Pines police officers began wearing Aug. 9.
State appeals dismissal of Mailloux charges
Court clearing motion rejected by judge; document seal motion was not decided
By TOM STAUSS Publisher
It’s been widely reported in local media that charges against Tyler Mailloux, the driver of the vehicle alleged to have resulted in the death of Ocean Pines 14-year-old Gavin Knupp last July, have been dismissed. Also widely reported is that Worcester County State’s Attorney Kris Heiser, shortly after the ruling by visiting Circuit Court Judge Brett Wilson on Friday, Aug. 18, announced that her office would appeal the decision to the Appellate Court of Maryland.
While the appeal is pursued, the dismissal of all charges related to the alleged hit and run accident remains in place. Heiser could have announced an immediate refiling of some charges, or an intention to refile, in District Court, but she did not do so.
Motions filed by both sides in the case are moot or remain on hold pending the outcome of the appeal, which the Appellate Court is not obligated to accept or hear.
At the beginning of the day’s proceedings, Defense Attorney George Psoras said he had 12 motions to argue. He only got to argue two of them before Judge Brett Wilson dismissed all the charges against Mailloux.
One of the motions on hold is a motion filed by Psoras for a change in venue, on the grounds that his client can’t receive a fair jury trial in Worcester County because of extensive pretrial publicity about the case on social media since the fatality occurred.
Should the state eventually refile charges in district court, there is an expectation that this venue would be acceptable to the defense, as charges would be heard by a district court judge, not a jury of Worcester County residents.
The dismissal of the charges against Mailloux for technical reasons, what Judge Wilson called a charging error after a half-hour recess in which he reviewed applicable state statutes, was not the only procedural defeat for the state’s attorney related to this case.
Prior to the Aug. 18 motion hearing in Courtroom #1 at the Snow Hill courthouse, the state had filed a motion to conduct the hearing in camera, which Judge Wilson rejected with no explanation in the case record on file in the clerk’s office.
Had that motion been granted, the public would have been banned from the courtroom, with only the defendant, attorneys and other court personnel allowed to witness the proceedings.
On Aug. 14, Assistant State’s Attorney Pamela M. Correa filed a petition to preclude or limit inspection of certain documents related to the case.
Judge Wilson did not rule on this motion, as Psoras had not filed a response to it within the allowed 15 days.
Correa’s petition to seal certain motions said that they contain “information regarding specific facts of the investigation, communications of counsel and private medical information.”
She said that if this information were made available to the public, it “would have the potential to substantially influence the potential jury pool and impede the administration of justice” in the case.
She was probably referring to the state police’s report on the accident detailed in the August Progress.
The report indicated that an autopsy showed that the decedent’s blood alcohol level was at .06, less than the .08 needed for a licensed driver to be considered legally impaired.
Gavin Knupp was being driven by his sister, Summer, when he left her vehicle parked partially on the road and partially on the side of the Grays Corner Road in the evening hours of the day the accident occurred.
In an attached affidavit, Correa said that “sensitive information regarding the investigation and prosecution of this case have been disseminated to parties outside the case, resulting in the publication of discovery materials.”
She said that defense counsel or members of the defense team had released this information and that its dissemination was “conveniently timed to support the defendant’s motion to change venue.”
Her affidavit also said that release of “any further information would cause irreparable harm to the reputation of the deceased juvenile victim” and would result in the “immediate, substantial and irreparable harm” to the defendant’s right to due process.
The petition to seal case documents was briefly mentioned during the Aug. 18 hearing by Psoras, who told the judge he wanted his allotted 15 days to respond to it.
He said he had only scanned an article in the August edition of the Progress about the case and had not released any information to the publication about it.
He characterized the state’s concern about Gavin Knupp’s reputation as concern that the decedent would be perceived by the public as “drunk” on the evening of the accident.
The state police report about the decedent’s blood alcohol did not say he was drunk.
With Judge Wilson’s dismissal of the circuit court case against Mailloux, it would appear that the petition to preclude or limit inspection of court documents is moot for the time being at least.
Prior to Judge Wilson calling for a recess, Psoras argued on behalf of two of his motions.
The first was the motion to dismiss the charges on the grounds that they should have been filed in District Court, followed by the motion for a change in venue. Correa offered rebuttals. There were at least another ten motions that could have been argued when the court reconvened following the recess, but Judge Wilson cut off that possibility when he dismissed the charges.
He agreed with Psoras’ argument that the District Court has “exclusive original jurisdiction”
over alleged violations of the transportation article of the Maryland Annotated Code, whether they be felonies or misdemeanors.
Psoras acknowledge that there are exceptions, with “concurrent” proceedings in both district and circuit court possible in some instances so long as the “original” case is filed in district court.
Correa didn’t offer much of an argument against Psoras’s reading of the transportation article, but seemed to suggest that since potential penalties for some of felony charges ranged from five to ten years in jail, Circuit Court was appropriate as the court of originating jurisdiction.
The second motion argued by Psoras concerned a proposed change in venue, with Correa offering a detailed, spirited rationale for keeping the case in Worcester County.
She argued that the social media commentary on the case was not nearly as pervasive as the defense alleged, and that the potential jury pool included both northern and southern Worcester County, which she suggested are almost two different worlds.
She said that the jury pool during voir dire could include an expanded number of potential jurors to ensure that unbiased jurors could be impaneled.
During the debate over the change of venue motion, Correa may have given the defense some ammunition should the case eventually go to trial.
“Media saturation ... has not been pervasive. It has not been prejudicial. It has been supportive for a juvenile who was killed in a tragic accident but killed at a young age,” she said.
The tragic accident narrative is one that the defense is likely to promote should the case go to trial.
Because of the statute of limitations, any misdemeanor charges in the original filing are moot and can’t be refiled. All but four of the original 17 charges were misdemeanors.
Misdeameanor charges have to be filed within a year of an alleged violation, and that one year expired on July 11 of this year, the one-year anniversary of Gavin Knupp’s passing.
Felony charges, on the other hand, can be filed within three years of an alleged violation.
Should Heiser and her associates lose their appeal, they would have the option of refiling the felony traffic charges in District Court.
These counts allege that Mailloux left the scene of an accident that he knew, or should have known, resulted in serious bodily injury or death.
The charges allege that Mailloux left the scene of the accident on Grays Corner Road, a service road that runs parallel to Route 50 about two miles south of Ocean Pines.
According to the state police report completed shortly after the accident, Mailloux contends he was unaware that a vehicle he was driving had hit and killed Gavin Knupp [see July edition of the Progress for details, at issuu.com/oceanpinesprogress].
36 Ocean Pines PROGRESS September 2023 SPECIAL REPORT
Viola, Phillips say audited ‘23 operating fund surplus ended up at $1.113 million
By TOM STAUSS
Publisher
It may seem like the Ocean Pines Association’s audited financial results differ substantially from the unaudited departmental summary issued for April, 2023, the final month of the 2022-23 fiscal year.
But that’s actually more an illusion than reality.
Of the OPA’s 20 identified departments, financial results in 19 of them had only minor adjustments from April to the audit report, posted on the OPA Web site in early August.
The only substantial difference was in General Administration, a catch-all department that includes assessments, delinquent charges, casino funds, franchise fees, and interest income, along with accounting fees, bad debt expenses, contract services, legal expenses, Board expenses, election expenses along with insurance and taxes.
The April unaudited financial report showed general administration with a net surplus of $5,962,172, but the audited results for that department show an adjustment down to $5,729,768.
That in turn affected the $1,150,815 operating fund surplus for the year reported on the April financial report.
Adjusting for General Administration, the new adjusted operating fund surplus, not including depreciation, would appear to be $897,697, a decrease of $253,118. [See graphic at right, bottom of page.]
Viola,however, says that presentation doesn’t accurately reflect actual operating fund performance for the year.
He and Controller/Finance Director Steve Phillips have extracted numbers from the audit report and have arrived at an audited operating fund surplus for the year of $1.113 million, just $38,000 less than what the April summary showed. [See graphic at right, top.]
What might explain the difference between the dueling presentations?
The explanation appears, at
FISCAL YEAR 2023 ACTUAL COMPARED TO BUDGET
SUMMARY OF OPERATING FUND AUDITED FINANCIAL RESULTS FISCAL YEAR 2023 ACTUAL COMPARED TO BUDGET
least in part, to be an arcane concept known to professional auditors as revenue to contract liability.
According to Viola and Phillips, accounting rules established by the national Accounting Standards Board require revenues from contractual services to be recorded as revenue only when they’re spent.
Revenue numbers during the fiscal year as shown in the monthly financial report make no adjustments for so-called contract liability, leaving it to the auditors, UHY of Salisbury, to make the adjustment in the audit report.
“It’s an issue of timing,” Viola said, and it can be somewhat complicated.
Viola asked Phillips to see if these adjustments could be made during the year and reflected on the monthly financial reports, but Phillips said it’s best left to the auditors during the summer auditing process.
In any event, Viola and Phillips are not wavering from their belief that the operating fund surplus is not much different from that reported in the unaudited April financials.
Treatment of contract liability revenue is not the only difference between the way results are presented in the monthly financial reports and the audit report.
Net Operating by Department
A dive into the audit report, posted on the OPA Website, shows that many of the schedules add depreciation expense to the way results are presented, and that might lead some OPA members to conclude that the OPA lost money in 2022-23.
It didn’t, although when depreciation is included, Exhibit B shows an operating fund loss for the year of $1,144,061, with net revenues of $14.84 million and net expenses including depreciation of $15.98 million. Depreciation expense is $2,042,758.
Exclude it, which is the way OPA financial data is presented monthly throughout the year, and the picture changes considerably.
There are further adjustments reflected in the audit report’s Exhibit B that reduce that excess of expenses over revenue down to $521,991.
The OPA uses fund-based accounting, and there are a number of transfers that occur during the year.
Among the adjustments to the operating fund is the adding back in $2,042,758 in depreciation, in effect balancing out the effect on the operating fund to zero.
Other adjustments included a transfer to the roads reserve of casino funds out of the operating fund
September 2023 Ocean Pines PROGRESS 37 OPA FINANCES
NET OPERATING BY DEPARTMENT April 2023 Compared to Audited Results Excludes Depreciation April Audit Report General Administration 5,962,172 5,729,768 Manager's Office -323,085 -323,103 Finance -844,095 -844,095 Public Relations -279,566 -279,568 Compliance/Permits -106,335 -106,389 General Maintenance -702,136 -702,270 Public Works -1,350,719 -1,369,373 Fire/EMS -1,064,024 -1,064,024 Police -1,290,390 -1,292,194 Recreation/Parks -445,987 -446,033 Tennis -38,173 -38,171 Pickleball 51,203 51,205 Platform Tennis -6,672 -6,672 Aquatics 70,576 70,571 Golf Ops/Maintenance 319,594 319,595 Clubhouse Grille 46,751 46,750 Beach Club 205,096 205,097 Beach parking 527,770 527,769 Yacht Club 188,979 188,980 Marinas 229,856 229,854 $1,150,815 $897,697 Auditor Adjustments $253,118 SUMMARY OF OPERATING FUND AUDITED FINANCIAL RESULTS
2 (In 000's) BudgetActualVariance Assessment Revenue, Gross 8,499 8,531 32 Assessment Revenue to Contract Liability - (544) (544) Transfer of Assessment (3,289) (2,220) 1,069 Transfer-in of PY Surplus 650 - (650) Assessment Revenue, Net After Transfers5,860 5,767 (93) Operating Dept. & Expenses (Net of Revenues): Police (1,453) (1,291) 162 Fire/EMS (1,064) (1,064)Total Police + Fire/EMS (2,517) (2,355) 162 Casino Revenue 450 450Interest Revenue to Reserves 75 206 131 Interest Revenue Stays in Operating - 7 7 Public Works/Maintenance/CPI (2,478) (2,177) 301 Recreation & Parks (509) (446) 63 Other Admin (1,862) (1,935) (73) Total Operating Depts. (Net) (6,841) (6,250) 591 Amenities (Net) 981 1,596 615 Excess of Revenues (Expenses) - 1,113 1,113 FY2023
OPA Finance Director/Controller Steve Phillips, from 2023 Audit Report
Source:
2023 Financial Report Compared to Audited Results Excludes depreciation
April
Source: Ocean Pines Progress, from April 2023 unaudited financials and 2023 Audit Report
u
Audit report
From Page 37
in the amount of $450,000, and a transfer of $985,000 of the prior year operating surplus to the replacement reserve.
Exhibit B shows that the operating fund began the year with a surplus of $3,107,703, ending the year with a balance of $2,585,712, an indication of the OPA’s continuing robust financial health.
Among other items of note from the audit report:
• Total operating fund revenues in 2022-23 were $14.838 million, down from $15.59 million the year prior (Schedule 2).
• Total expenses including expenses were $15.98 million, up from $15.06 million the year prior, including depreciation expense (Schedule 3).
• Legal fees in the General Administration department for the year totaled $138,597, with another $20,106 in Compliance, Permits and Inspections.
• Perhaps reflecting a downturn in resales in Ocean Pines, year over year, resale certifi-
cate revenue of $144,010 in 2021-22 dropped to $90,880 in 2022-23.
• Payroll in the CPI department jumped from $28,423 in 2021-22 to $70,224 in 2022-23, reflecting adjustments in the way these costs were allocated to the General Maintenance and Public Works Departments.
• Building repairs and maintenance increased from $129,037 to $238,940 year-over year.
• Contract services in the police department increased from $47,489 in 2021-22 to $88,591 last year.
• Included in accounts receivable line item are receivables that were more than 90 days past due of approximately $692,500 and $650,000 at April 30, 2023 and 2022, respectively.
These receivables include member assessments, which are billed annually on May 1, and related interest and other charges. Past due member assessments, in accordance with Association policy, have liens placed against the property.
• During April 2022, the Association entered into a line of credit arrangement with the Bank of Ocean City with a maximum borrowing power of $43,250 with principal due on demand. The line bears interest at a rate of 2.25
percent per year.
The line is secured by the Association’s certificate of deposit account held with the bank. There was no outstanding balance on the line at April 30, 2023 and 2022.
• The Association has two defined contribution retirement (401k) plans, which cover all full and parttime employees over 20.5 years of age and having at least 1,000 hours of service in the plan year.
Participants may contribute up to 100 percent of compensation with a maximum contribution as permitted by the IRS, currently $22,500 in calendar year 2023.
The Association contributes up to a 3 percent match of compensation for all eligible employees that contribute to the plan and have been with the company for at least 12 consecutive months, with the exception of police officers who receive an automatic 5 percent contribution in a separate plan.
Association contributions to the plan were approximately $101,000 and $97,000 for the years ended April 30, 2023 and 2022, respectively.
• In December 2015, the Asso-
OPA cash position improves to $18.72 million
The Ocean Pines Association’s cash and investment position improved in July, increasing from $18.15 million at the end of June to $18.72 million on July 31. According to a schedule included with the July financial summary posted on the OPA Website, the OPA had about $2.29 million on hand in
two insured cash sweep accounts, one with the Bank of Ocean City and the other with Taylor Bank. Operating accounts excluding Matt Ortt Companies accounts contained $2.194 million.
The balance of the $18.72 million was held in CDRs and $986,729 in treasury bills.
ciation concluded discussions with Sandpiper Energy to facilitate the conversion of the Ocean Pines community from propane to natural gas over the next several years.
The resulting agreement between Sandpiper and the Association includes provisions that provide Sandpiper with certain easements, rightof-ways and a land lease related to installation, operation and maintenance of a gas distribution system.
The agreement also provides that Sandpiper pay to the Association certain fees, commencing in fiscal year 2016.
Required payments of approximately $16,200 have been recorded as revenue during each of the years ended April 30, 2023 and 2022, as reflected in services and supplies in the accompanying statements of revenues and expenses and changes in fund balances.
• In August 2019, the Association entered into a management agreement with Matt Ortt Companies to provide management and operational services for the Yacht Club and Beach Club for at least three years commencing on May 1, 2020. There is an option to add an additional fourth or fifth year if certain circumstances are achieved, as defined in the agreement.
Under the terms of this agreement, the Association is required to pay $25,000 per month for the first eight months of the fiscal year.
In addition to this $200,000, MOC may be eligible for an additional profit bonus if a target operating profit is achieved, as defined in the agreement. MOC will split (50%) of any profits in excess of this target operating profit.
These amounts will be payable at the conclusion of the corresponding fiscal year.
If MOC does not achieve the target operating profit there is a clawback feature contained within the contract whereby MOC is required to pay back 50 percent of this shortfall from the determined clawback threshold of $100,000.
Upon termination for any reason, MOC shall be paid the management fee due through the date of termination.
In the event that the Association terminates this agreement without cause, MOC shall be paid a liquidated damage equal to $75,000.
The Association paid management fees of approximately $504,000 and $503,000 for the years ended April 30, 2023 and 2022, respectively.
38 Ocean Pines PROGRESS September 2023 OPA FINANNCES
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Amenity membership revenue reaches goal
By ROTA L. KNOTT
Contributing
Writer
Adriver behind the $301,913 cumulative operating surplus for the first quarter of the 2023-24 fiscal year is support for Ocean Pines Association amenities through the purchase of annual or seasonal memberships in golf, aquatics, racquet sports and beach parking passes.
According to the July 31 financial summary posted on the OPA Website, amenity membership revenue reached 103 percent of goal, not including beach parking. Membership net revenue totaled $1,132,256, compared to the budgeted $1,103,300. The positive variance was $28,956.
See the summary elsewhere on this page for details on each of the membership amenities. Beach parking pass revenue is not included in the amenity membership summary, but had it been the financial impact of member support for the amenities would have been even more pronounced. Beach parking passes generated $448,282 in net revenue through July 30, compared to the budgeted $411,479, for a positive variance of $36,803.
The membership totals through July probably will dovetail fairly closely for the fiscal year, as most memberships are booked in the first quarter, May through July.
The monthly amenity membership revenue for July also showed amenities strongly supported by Ocean Pines property owners.
Most of the membership amenities once again exceeded their budgeted membership revenues for the month. Only aquatics and tennis had a negative variance for the month of July, but both retain positive year-to-date membership revenue.
Aquatics earned $12,388 in membership revenue during the month of July, compared to the budgeted $13,553, a negative variance of $1,165. Net overall monthly aquatics revenue, including fees, facility rentals, classes and vending, totaled $189,745, for a positive variance to budget of $8,146.
Beach parking pass sales produced $37,672, ahead of budget by $9,453. Beach Club food, facility rental, and beverage revenue for July was $242,977, up $52,424 from the budgeted $190,553.
Golf brought in $2,958 in membership revenue, compared to the budgeted $2,381, a $577 positive variance. Combined golf operations revenue reached $272,436 for July, a positive variance to budget of $63,020.
Two of the three racquet sports also brought in more membership revenue for the month than budgeted. Pickleball generated $6,458 in membership revenue compared to $470 budgeted, a $5,988 positive variance. Total revenue reached $16,462, a $11,456 positive variance to budget. Net operating reached a $9,339 positive variance to budget.
Platform tennis with $5,695 in membership revenue exceeded its budgeted $131 for a positive u
Ocean Pines Association Membership Report Period Ending 7/31/2023
September 2023 Ocean Pines PROGRESS 39 OPA FINANCIALS FY 2023 - 2024 ANNUAL BUDGET GOAL 07/31/22 07/31/23 07/31/23 % OF 04/30/24 04/30/24 OVER TYPE #SALES #SALES $AMOUNT RATE BUDGET #SALES $AMOUNT (SHORT) BEACH PARKING PARKING ONLY 1,399 1,389 298,635 215 1,407 302,395 ANNUAL-W/Membership 765 800 112,000 140 769 107,660 WEEKLY 86 90 13,500 150 106 15,900 DAILY 50 62 2,790 45 104 4,680 ASSOCIATES 10 15 7,875 525 10 5,250 TOTAL PARKING 2,310 2,356 434,800 100% 2,396 435,885 (1,085) AQUATICS FAMILY-SUMMER 449 205 69,700 340 225 76,500 FAMILY-WINTER 0 0 0 485 0 0 FAMILY-YEARLY 92 46 28,980 630 50 31,500 COUPLES-SUMMER 0 301 90,300 300 223 66,900 COUPLES-WINTER 0 0 0 435 0 0 COUPLES-YEARLY 0 54 30,955 575 50 28,750 INDIV - WINTER 0 1 315 315 1 315 INDIV - YEARLY 59 69 27,726 405 66 26,730 CHARTER 1 2 60 30 0 0 ASSOCIATES SWIM INDIV YEARLY 13 23 12,444 545 19 10,355 ASSOCIATES SWIM FAMILY YEARLY 15 16 13,458 850 20 17,000 ASSOCIATES SWIM FAMILY SUMMER 25 36 16,740 465 26 12,090 ASSOCIATES SWIM INDIVIDUAL SUMME 15 15 4,200 280 14 3,920 ASSOCIATES SWIM IND WINTER 0 0 0 425 1 425 ASSOCIATES SWIM FAM WINTER 0 0 0 650 1 650 TOTAL SWIM 890 968 335,878 105% 917 320,485 15,393 GOLF FAMILY 16 17 42,500 2,500 16 40,000 FAMILY-AFTER 12 4 5 8,750 1,750 4 7,000 INDIVIDUAL 55 55 87,733 1,600 55 88,000 INDIVIDUAL-AFTER 12 0 13 13,650 1,050 0 0 JUNIOR 2 5 1,125 225 2 450 ASSOCIATES INDIVIDUAL 8 12 20,400 1,700 8 13,600 ASSOCIATES FAMILY 0 0 0 2,700 0 0 ASSOCIATES FAMILY AFTER 12 1 2 3,500 1,750 1 1,750 ASSOCIATES IND AFTER 12 14 1 1,050 1,050 14 14,700 TOTAL 100 110 178,708 108% 100 165,500 13,208 LIFETIME MEMBERS 14 14 0 19 0 CART - PKGS FAMILY 12 8 17,600 2,200 12 26,400 INDIVIDUAL 30 34 51,000 1,500 30 45,000 ASSOCIATES CART FAMILY 0 0 0 2,200 0 0 ASSOCIATES CART INDIVIDUAL 4 1 1,500 1,500 4 6,000 TOTAL CART PKGS 46 43 70,100 91% 46 77,400 (7,300) TOTAL GOLF 160 167 248,808 102% 165 242,900 5,908 OCEAN PINES ASSOCIATION MEMBERSHIP REPORT PERIOD ENDING 7/31/2023 (FY24) FY 2023 - 2024 ANNUAL BUDGET GOAL 07/31/22 07/31/23 07/31/23 % OF 04/30/24 04/30/24 OVER TYPE #SALES #SALES $AMOUNT RATE BUDGET #SALES $AMOUNT (SHORT) TENNIS FAMILY 12 13 5,460 420 10 4,200 FAMILY-AFTER 12 11 6 1,050 175 8 1,400 INDIV 34 28 7,420 265 38 10,070 INDIV-AFTER 12 2 3 330 110 7 770 JUNIOR 1 3 165 55 2 110 ASSOCIATES FAMILY 0 3 1,935 645 2 1,290 ASSOCIATES IND 5 6 2,430 405 6 2,430 ASSOCIATES JR 0 0 0 80 0 0 ASSOCIATES IND AFTER 12 1 2 280 140 1 140 ASSOCIATES FAM AFTER 12 1 0 0 225 0 0 TOTAL TENNIS 67 64 19,070 93% 74 20,410 (1,340) PLATFORM TENNIS FAMILY 14 20 5,900 295 14 4,130 INDIV 46 49 8,760 180 49 8,820 ASSOCIATES FAMILY 0 0 0 410 0 0 ASSOCIATES IND 1 1 250 250 1 250 TOTAL PLATFORM 61 70 14,910 113% 64 13,200 1,710 PICKLEBALL FAMILY 66 72 21,166 295 67 19,765 INDIV 87 99 17,805 180 87 15,660 JUNIOR (10-17) 4 3 165 55 4 220 ASSOCIATES FAMILY 15 22 8,884 410 17 6,970 ASSOCIATES IND 53 68 16,895 250 57 14,250 ASSOCAITES JR 0 0 0 80 0 0 TOTAL PICKLEBALL 225 264 64,915 114% 232 56,865 8,050 COMBO FAMILY 13 9 5,895 655 13 8,515 INDIVIDUAL 12 19 7,980 420 12 5,040 TOTAL COMBO 25 28 13,875 102% 25 13,555 320 TOTAL RACQUET SPORTS 378 426 112,770 108% 395 104,030 8,740 GRAND TOTAL 3,738 3,917 1,132,256 103% 3,873 1,103,300 28,956 PERIOD ENDING 7/31/2023 (FY24) OCEAN PINES ASSOCIATION MEMBERSHIP REPORT
Source: OPA Finance Director/Controller Steve Phillips, from 2023 Audit Report
For first quarter of 2023-24, $1,13 million is collected, 103 percent of budget
By TOM STAUSS Publisher
The Ocean Pines Association recorded a $139,889 operating fund surplus in July, up from the more modest June result of about $12,000.
According to the July financials posted by Controller/Director of Finance Steve Phillips on or before Aug. 21, all but three membership amenities exceeded their budgets for the month. Those departments operating with positive variances included the Beach Club, golf, the Yacht Club, the Clubhouse Grille, beach parking, pickleball, and platform tennis.
Missing their budgets for the month were aquatics, tennis and marinas.
By TOM STAUSS
Publisher
The Ocean Pines Association recorded a $139,889 operating fund surplus in July, up from the more modest June result of about $12,000.
According to the July financials posted by Controller/Director of Finance Steve Phillips on or before Aug. 21, all but three membership amenities exceeded their budgets for the month. Those departments operating with positive variances included the Beach Club, golf, the Yacht Club, the Clubhouse Grille, beach parking, pickleball, and platform tennis.
Missing their budgets for the month were aquatics, tennis and marinas.
But all amenities through July are in the black.
The overall positive variance for the month resulted from revenues over budget by $220,868 and expenses over budget by $80,870.
For the fiscal year through July 31, the positive operating fund variance was $301,913, with revenues over budget by $366,968 and expenses under budget by $65,055.
Through July, golf has overtaken beach parking as the top-producing amenity department, with $495,337 in net revenues and $90,629 ahead of budget. At the same time last year, golf had generated net revenue of $450,419.
That’s a $45,000 year-over-year improvement.
For the month, golf generated $79,489 in net earnings, ahead of budget by $35,032.
Beach parking continues its usual pattern of stellar performance during the summer months when the Beach Club is open.
Through July, beach parking earned $448,281 in net revenue, ahead of budget by $36,803. A year ago at this time beach parking’s net stood at $440,607.
During July, beach parking netted $26,172, ahead of budget by $14,329.
Aquatics also continues on a healthy path, with a $273,356 operating net through July, ahead of budget by $9,867.
Membership revenue
From Page 38
variance of $5,564. The variance of all revenue for $1 more at $5,565, and the net operating variance was a positive $3,995.
Tennis had a negative variance from budget for July of $9,201. However, it retains a close year-to-date $23,695 versus budget of $22,216 for membership revenue. Total revenue, including classes, clinics, and drop-ins, had a negative $10, 250 variance for the month, and the net operating variance was $10,917.
However, this is well behind last year’s pace, when the operating net was $340,437 at the end of July.
This could be a byproduct of the fact that pools have been fully staffed this summer, adding to employee costs.
For the month, aquatics managed to earn $7,425, but that was behind budget by $23,271.
The Yacht Club after a slow start for the year is recovering nicely with $256,991 in earnings through July. That’s $20,879 behind budget for the year and off last year’s July cumulative earnings of $282,177.
But for the month, Yacht Club net revenue surged to $173,879, ahead of budget by $34,533.
If August continues this pattern, and by all accounts it has, then the negative variance to budget through July could turn positive for the year.
Marinas continue to be a cash cow for the OPA, but poor weekend weather has affected the bottom line thus far this year.
Net revenue through July was $217,266, behind budget by $31,116.
This is also well off last year’s pace. Cumulatively through July of last year, marinas had generated $248,380 in net earnings. That’s about $31,114 more than what’s been earned for the same time this year.
The Beach Club food and beverage operation is in the black for the year through July in the
amount of $131,485.
That’s $30,334 ahead of budget and not far off the July, 2022, net of $134,061.
One of the racquet sports, pickleball, generated $70,893 in net earnings through July, ahead of budget by a robust $20,885.
This is somewhat off the pace of a year ago, however, when the net through July was $57,192.
Pickleball earned $7,026 in July and was ahead of budget by $9,339.
The Clubhouse Grille is $65,500 in the black through July, ahead of budget by $20,532.
Through July of last year, the net for this operation was $38,324. That’s a year-over-year improvement of more than $27,000.
For the month, the Clubhouse Grille generated $25,562, with a positive variance to budget of $3,995.
Platform tennis was in the black through July in the amount of $8,904, narrowly under budget by $363.
For the month, the net was $796, well ahead of budget by $3,995.
Tennis had $2,777 in net earnings through July, but that’s under budget by $11,458.
Tennis was the only amenity to lose money for the month. The $12,817 in red ink missed its budget target by $10,917.
Reserve summary -- The July 31 reserve summary shows a total balance of $9.298 million, down from of $9.9 million in June and $9.66 million in May, the usual pattern of declining balances throughout the fiscal year.
The replacement reserve balance on July 31was $6.37 million, with bulkheads and waterways at $1.31 million, roads at $1.08 million, drainage at $389,239 and new capital at $146,054.
Balance sheet -- The July 31 balance sheet shows total assets of $44.85 million, up from $43.74 million in July of 2022.
OPA NET OPERATING RESULTS BY DEPARTMENT - JULY 2023
40 September 2023 Ocean Pines PROG- OPA FINANCES
MONTH MONTH YTD YTD YTD ACTUAL BUDGET $ VARIANCE ACTUAL BUDGET $ VARIANCE LAST YEAR GENERAL ADMIN (12,680) (27,963) 15,282 5,806,924 5,774,594 32,330 5,916,552 MANAGER'S OFFICE (38,087) (40,230) 2,143 (92,884) (98,576) 5,693 (48,796) FINANCE (87,772) (93,953) 6,182 (215,469) (229,797) 14,328 (187,128) PUBLIC RELATIONS (19,672) (25,021) 5,349 (68,491) (71,867) 3,376 (74,948) COMPLIANCE / PERMITS (1,970) (3,045) 1,075 (19,344) (2,715) (16,629) (15,611) GENERAL MAINT (84,757) (71,431) (13,327) (200,605) (188,017) (12,588) (158,028) PUBLIC WORKS (138,672) (150,559) 11,887 (375,411) (420,878) 45,467 (339,972) FIRE / EMS (84,076) (84,076) - (252,229) (252,229) - (266,006) POLICE 366,838 343,464 23,374 100,778 28,277 72,501 (457,043) RECREATION / PARKS (39,458) (10,978) (28,481) (95,037) (107,237) 12,200 (74,441) TENNIS (12,817) (1,901) (10,917) 2,777 14,234 (11,458) 15,546 PICKLEBALL 7,026 (2,312) 9,339 70,893 50,008 20,885 57,192 PLATFORM TENNIS 796 (3,199) 3,995 8,904 9,267 (363) 11,112 AQUATICS 7,425 30,696 (23,271) 273,356 263,489 9,867 340,437 GOLF OPS + MAINT 79,489 44,457 35,032 495,337 404,707 90,629 450,419 CLUBHOUSE GRILLE 25,562 11,893 13,668 65,500 44,969 20,532 38,324 BEACH CLUB 114,105 67,004 47,100 131,485 101,151 30,334 134,061 BEACH PARKING 26,172 11,843 14,329 448,282 411,479 36,803 440,607 YACHT CLUB 173,879 139,347 34,533 256,991 277,869 (20,878) 282,177 MARINAS 14,629 21,923 (7,294) 217,266 248,382 (31,116) 248,380 NET OPERATING 295,959 155,961 139,998 6,559,022 6,257,109 301,913 6,312,833
8/17/2023
OCEAN PINES ASSOCIATION NET OPERATING BY DEPARTMENT JULY 2023
Source: Ocean Pines Association Finance Department
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Tragic accident could lead to a reasonable plea agreement
The Aug. 18 dismissal in Worcester County Circuit Court of charges against Tyler Mailloux in the tragic death of Ocean Pines teen Gavin Knupp last summer no doubt sent shock waves through the ranks of the prosecution.
State’s Attorney Kris Heiser responded quickly with an appeal to the Maryland Court of Appeals, on the theory that Judge Brett Wilson erred in determining that state law requires the traffic violations, both alleged felonies and misdemeanors, be heard initially in District Court.
It seems unlikely that a jurist with Judge Wilson’s vast experience in the law would make such a fundamental error. An appeal is more or less expected in a case such as this, but that doesn’t mean it has much of a chance of success. Successful appeals are the exception, not the rule. This appeal has the virtue of affording the state time to consider its options going forward. Perhaps it’s time for the state to take this time to negotiate with the defense for a reasonable plea bargain that will result in a just outcome.
Kris Heiser and her legal team have been subject to a lot of unfair criticism on social media for supposedly making such a basic charging error. She is getting a taste of the vitriol on social media that has been directed at Mailloux and those in his orbit since the tragedy occurred.
Or as those in the DeAngelus/ Mailloux household might say: Welcome to our world. At least in comparison to the drumbeat of malice and prejudice directed against Mailloux, his family and others with only tangential knowledge of the accident since July of last year, the vitriol directed at Heiser has been less harsh and much shorter in duration.
Even so, if one wants rational and thoughtful discussion, social media may not be the best place to find it.
But the lesson to the state’s attorney is this: You will be respected and held in high esteem only to the extent that you perform in the way that the anti-Mailloux mob prefers. If you do not deliver the desired result, you will be vilified by those with a much inferior grasp of the law than held by you and your assistant state’s attorneys.
While assumptions are the bane of human existence, it’s possible that Heiser and her team assumed that a defendant and his attorney
LIFE IN THE PINES
An excursion through the curious by-ways and cul-de-sacs of Worcester County’s most densely populated community
By TOM STAUSS/Publisher
in a case of this nature would want a jury trial, which is only possible in Circuit Court. It only takes one juror out of 12 to reject the state’s narrative in a case, resulting in an acquital or a hung jury. In a District Court trial, the prosecution and defense need only persuade a single person, the presiding judge, on the merits of their arguments. So better chances with a jury, especially if there is a chance the trial can be moved to a jurisdiction with a less tainted jury pool?
We’ll never know for sure the reasons why the state filed initially in Circuit Court. Another possible reason is that four of the 17 charges in the case are felonies, with jail time ranging from five to ten years as possible consequences. Cases with such serious potential consequences usually end up in Circuit Court, and often begin there.
But as Mailloux attorney George Psoras persuasively argued, citing chapter and verse of state law, the originating court of jurisdiction in traffic violation cases is District Court. The defendant, not the state, has the right to determine where the case should be heard. Moving a case from District Court to Circuit Court for a jury trail is hardly a rare occurrence. Those of a certain age remember the infamous Sifrit murder trial of the early 2000s. It began as a proceeding in District Court, eventually making its was across the bay where it was heard in Circuit Court in Montgomery County.
Judge Wilson, after ordering a recess, apparently combed through the lawbooks and concluded that Psoras’s reading of the law was correct.
It basically means that the various motions filed in the case, such as a request for a change in venue, are now moot, or at least on hold pending the outcome of the appeal. This initial appeal could be followed by another appeal to the Supreme Court of Maryland. It could be months, even a year or more, before this case works its way through the legal maze.
Pam Correa, the lead attorney in the case for the prosecution, perhaps unthinkingly provided a pretext for why this case might be better settled in a plea agreement between
the state and the defense. During a debate over Psoras’ motion for a change in venue, Correa challenged the defense argument that Mailloux could not receive a fair trial in Worcester County:
“Media saturation ... has not been pervasive. It has not been prejudicial. It has been supportive for a juvenile who was killed in a tragic accident but killed at a young age.”
Indeed it was a tragic accident, and calling it that is perhaps the state’s first tangible acknowledgment that its theory of the case, as reflected in the charging document, is in need of revision. A “tragic accident” by definition permits ambiguity of motive; it implies that those involved in it did not intend to inflict injury and death and, perhaps, were unaware that injury and death had been inflicted until later.
That the state’s lead attorney in the case uses such language is cause for optimism that a plea arrangement is at least plausible.
Beyond that, however, is the state police report of this tragic accident, detailed in the August edition of the Progress, but oddly unreported elsewhere in the media. Salient points of this police report, known to the state when it filed its charges early this year, include the following:
• the defendant told the state police investigator he was unaware that an individual had been hit and killed on the night of the tragic accident. The defendant had hit a deer while driving a year or so prior.
• An attorney for the family alleged to have driven the vehicle that killed Gavin Knupp notified the state police of that fact on the day after the accident and made arrangements to turn the vehicle in several days later when the investigating officer returned a phone call.
• the decedent’s sister, who had been driving her late brother home from a party, had her vehicle parked on the side of the road with the high beams on. The defendant’s vehicle was heading straight into the glare of the high beams when
the tragic accident occurred.
• the decedent had blood alcohol of .06 according to the autopsy mentioned in the state police report. Not legally drunk for purposes of a driving under an influence charge, but of course he wasn’t driving, as he was only 14-years-old. But was he situationally impaired at the time of the accident?
When the defense presents its narrative of what transpired that awful evening, should this case make it to court on the merits, there’s little doubt this exculpatory evidence would be explored by the defense.
Unreported in this case, except elsewhere in this edition of the Progress, was the abortive attempt to close the Aug. 18 hearing to the public, which Judge Wilson rejected without comment. Pending was a related motion by the state to seal all the court documents on the case, which the defense had 15 days to rebut. This motion, too, was effectively dismissed, or put on hold, when the judge dismissed the charges against Mailloux on technical grounds.
Oddly, for several hours on the day before the Aug. 18 hearing, access to the case record on the state’s case look-up Website was not accessible; it was as if the case didn’t exist. It turns out the state can’t just purge its records of case documents; a motion and a judge’s concurrence is necessary for that.
The Ocean Pines Progress is a journal of news and commentary published monthly throughout the year. It is circulated in Ocean Pines and Captain’s Cove, Va. 127 Nottingham Lane Ocean Pines, Md 21811
42 September 2023 Ocean Pines PROGRESS OPINION
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u
A strong finish for Election Trust
Choosing a vendor to handle next summer’s Board of Directors is not going to be a slam dunk.
It probably will come down to which company can deliver on a multitude of tasks: on-time printing and mailing of ballots and election materials, hybrid paper and on-line voting, email confirmation of votes cast, remote viewing of the vote count and ballot adjudication, and an affordable price point for services.
Election Trust, this summer’s vendor, finished strong, delivering a flawless vote count and ballot adjudication process accessible to anyone interested via live streaming. Yes, much of the vote count appears to have occurred outside the view of the committee. Does it matter?
There is no reason whatever to doubt the accuracy of the vote count this year.
The Bainbridge Island, Washington state firm began the process poorly. Its mailing subcontractor, for reasons that have had not yet been revealed, delivered ballots to its local post office a week late. This caused a public relations nightmare for the Ocean Pines Association and the Elections Committee in particular, with cries of yet another botched election filling the oft-times fevered precincts of social media.
The election wasn’t botched; the Board of Directors in an abundance of caution simply pushed back the due date for return ballots by two weeks, giving OPA members plenty of time to have their ballots counted.
The annual meeting of the association also was pushed back two weeks, without any obvious inconvenience to members.
Interactions between the committee and the Election Trust in the final days of the process were harmonious and constructive.
The live streaming of the vote count, especially the adjudication of ballots that the scanning software had trouble with, was professionally handled by Election Trust.
Elections Committee chair Tom Piatti recently said that the committee was leaning against recommending Election Trust for next summer’s
Life in the Pines
From Page 42
Why was the state moving to quash an open court session on this case? Why was it trying to seal case records?
The state’s pleading on file in the clerk’s office makes for interesting reading.
It says it was because of concern that details of the police report, including the decedent’s blood alcohol level, had been revealed in print, possibly tarnishing Gavin’s reputation in the greater community.
election. After the flawless vote count and adjudication of rejected ballots, he’s now leaning in favor of retaining Election Trust. Even so, members remain annoyed that there was no immediately explanation or apology for the late mailing of ballots. The OPA on advice of counsel decided to send out a postcard notifying members of the new time, place and date of the annual meeting, costing an unbudgeted $5,000.
The OPA will need to recoup this expense and more from Election Trust to compensate for the late ballots. While the final stages of the election process were handled very well, Election Trust needs to atone for the early screw-up by negotiating a reasonable reduction in the contract price with the OPA. Failing that, the company shouldn’t bother to submit a new contract proposal for next year’s election.
Ace Printing and Mailing of Berlin, which lost the election contract this year after more than 20 years of working with the OPA, performed flawlessly in working overtime to print and mail the postcard notice of the annual meeting.
This demonstrates that its owner/operator Thom Gulyas is very interested in recapturing the OPA’s election business next summer. He’s said as much in a post on the the ROC Facebook page.
The committee is well aware that ballots sent to and from Washington state take roughly five business days to transit across country via the U.S. Postal Service, and that this unassailable fact counts as a disadvantage for any vendor based on the West coast.
This transit time also works to the advantage of any local vendor.
All else being equal, a local vendor such as Ace Printing and Mailing should have an advantage next year in its effort to regain the contract.
Gulyas should get an early start on putting together a contract proposal that hits all the bullet points needed to satisfy the objectives of the Elections Committee. Clearly, the committee doesn’t want to be involved in the direct handling of ballots, including the operation of scanning equipment used in counting ballots.
That’s a stretch. He was a teenager, and nowadays teenagers do what the police report said he did on the night he tragically died in a horrible accident.
Also postulated is that release of this information could potentially result in an unfair trial for Mailloux, a dubious proposition at best.
It was the Progress that printed details of the police report in its August edition.
Correa’s motions for an “in camera” proceeding and to seal court documents in the case is a very real tacit admission that this case is a not a
So Gulyas will need to craft a proposal that removes the committee from hands-on involvement in counting ballots. This shouldn’t be difficult; it’s been done to varying degrees in years prior, depending on the desires of the committee in any particular year.
One of the reasons Election Trust won the contract this year was its promise to provide for remote viewing of the vote count, a service that other vendors across the country apparently couldn’t guarantee. Gulyas has plenty of time to come up with a solution for this. If Election Trust has found the software to display ballots for adjudication, Gulyas certainly can do the same.
Gulyas also should be able to come up with a process for electronic voting. There is no shame in Gulyas or any other vendor to partner with companies such as Vote HOA Now, used by the OPA last summer for e-voting.
It might be advisable for Gulyas to arrange for an e-vote partner in advance of submitting a proposal to the OPA and then including it as part of his contract offer.
E-mail confirmation of ballots received was a nice addition to this summer’s election process, even though this e-mail confirmation arrived in the spam folders of some voters.
Gulyas would do himself a favor if he would find a way to offer this same service and overcome the spam issue, assuming that it can be.
Although there’s been a testy exchange or two on social media between Gulyas and some committee members, none of that should get in the way of clean slate for this coming year.
The parties can agree to disagree on details of what led the committee this past year to seek an alternative to Gulyas. It’s water under the bridge at this late date. Few care at this point.
Gulyas has performed admirably in years past in handling OPA elections, and he certainly deserves consideration next year as well.
But, so too, should Election Trust be given the opportunity to keep the contract, but only if it agrees to an adjustment in this year’s invoice for services. --
Tom Stauss
slam-dunk for the state.
In court, she suggested she wanted to seal the documents because she has some additional information about the case that she prefers to keep confidential.
There is an abundance of public interest in this case and a fair administration of justice should mean the state is transparent in what it hopes to prove and what it has in its arsenal of evidence to do so.
A competent attorney, and its clear Psoras is as competent as they come, is going to do his best to spin the police report in his client’s
favor. No doubt the state will do the same.
Whatever else the assistant state’s attorney has in the way of more evidence would eventually have to be shared with the defense.
Should it come to that, of course.
Note to Heiser and Correa: Consider working out a reasonable plea deal with the defense. There’s no shame in it. The alternative might be to lose it all, either in District or Circuit Court. If that should happen, the social media criticism thus far over an apparent charging error will seem like a walk in the park.
Ocean Pines PROGRESS September 2023 43 OPINION
COMMENTARY
Before there was an Ocean Pines ...
Plantation houses known as Buckland, Malvern and Middle Quarter were shown on map in the 1880s and existed in the 1920s on property that eventually was acquired by master developer U.S. Land and its subsidiary, Boise Cascade
44 September 2023 Ocean Pines PROGRESS LIFESTYLES
Present day Ocean Pines, with the original three plantation homes and their environs.
By ROTA L. KNOTT Contributing Writer
Zaidee Mumford, whose family was one of the original owners of much of the land that became Ocean Pines, will be remembered by many as “the Mother of Mumford’s Landing.”
In 1996, the Progress talked with her about her memories of the Ocean Pines area before it became the largest yearround community in Worcester County. The Mumford’s Landing area of Ocean Pines was so named to honor Mumford, who died in 2010 at age 96, and her husband, Tuffy, who worked for Boise Cascade during the early years of the community’s development.
Tuffy, whose name graced the original Ocean Pines Yacht Club bar for decades, died in 1977. The name survives today in the name attached to a swimming pool and boat ramp in the vicinity of the Yacht Club.
The property that ultimately became Ocean Pines had three plantation houses, Buckland, Malvern and Middle Quarter, located on it in the 1920s. While the houses are long gone, ownership of that land can be traced back directly to several important Worcester County lineages, including the Mumford, Henry and Purnell families.
In a past interview, Zaidee Mumford, whose mother, Margaret Kenly Hen-
ry, and aunt, Elizabeth Spense Purnell, sold the property known as Buckland to Boise Cascade shared her memories of what the area was like before it became Ocean Pines.
Mumford’s mother lived in a house called Malvern that stood on the property that became Mumford’s Landing.
Mumford said her mother lived at Malvern as a child and her grandfather, Edward Kenly, retired to the farm, moving there full-time from Baltimore. He lived there until the house was destroyed by fire.
The second house, Middle Quarter, was located about where the 15th hole fairway can be found on the Ocean Pines golf course.
A map of the property, among the archives in the Snow Hill library, that is more than a century old delineates the location of the three houses according to an April 15, 1883 survey.
The map shows the parcel known as Buckland with a northern boundary where Beauchamp Road is found today and a southern boundary at Manklin Creek, near the present day South Gate and Manklin Creek Road.
Buckland is described as being about 2,230 acres in size, including 1,878 acres of “high land” and about 331 acres of “marsh.”
The plantation house known as Buckland was situated on the St. Martin River, near the end of where Beauchamp Road is today.
All three houses that were built in the early 1880s were destroyed by either fire or the elements. Mumford recalled that both Malvern and Middle Quarter were burned down and no one ever rebuilt them.
“There was a fire in the woods on the Riddle Farm in about 1924 or 1925 and it jumped the creek over to what’s now Ocean Pines and burned Malvern,” Mumford said in a 1996 interview.
When Boise Cascade began preliminary development work in Ocean Pines in the late 1960s, workers uncovered the foundation for the Middle Quarter home, according to Mumford. At the time of the interview with Mumford, she said the site could be marked on the Ocean Pines golf course by a cluster of wisteria trees that stand near where the house was once located between the 14th and 15th fairways.
In a separate 1996 interview, another granddaughter of Edward Kenly and Mumford’s cousin, Sarah White, said she too remembered the house at Malvern. White’s mother, Elizabeth Spense Purnell, purchased the portion of the land owned by her brother and eventually controlled two-thirds of Buckland.
When she was a child in about 1925, White said she remembered visiting Malvern, where the entire property was actively being farmed. She said sometimes the family would take a horse and buggy and ride into Berlin.
“I used to go down there when I was a girl. I was about 10 or 12 and I would go and stay for a couple of weeks. Zaidee would go too,” White said in the 1996 interview. She said every summer her family would spend time at Malvern. She couldn’t remember what happened to the house. She said she heard about Middle Quarter and Buckland houses but never visited either of them.
White’s father was in the Armed Services, so the family moved around a lot, but when they fi-
nally settled it was in Berlin. Her parents bought a home there in 1915 and christened it Merry Sherwood. Today Merry Sherwood, located on Route 113 south of Berlin is operated as a country inn and hosts special events.
In 1968 Mumford’s mother and White’s mother both decided it was time to give up the land and sold it to become part of Ocean Pines.
The Buckland house was originally owned by John Selby Purnell and Matilda Hodges Purnell.
The Henry and Purnell families originally acquired the sprawling farmland and forest known as Buckland in the mid-1700s. It was a providence of Lord Baron of Baltimore that was called Mayfield Situate. The property was part of a land grant from Lord Baltimore patented on Oct. 9, 1693, by Colonel Williams Stevens. At that time the entire area was part of Somerset County. Worcester County was not officially established until the mid-1700s.
Stevens was a staff officer for Lord Baltimore and one of the first justices for Somerset County.
He was a large land holder, owning most of the property from Lewes, Del., south to the mouth of the Pocomoke River.
A copy of the original land grant for the Mayfield Situate, which is part of the William Pitts collections at the Snow Hill library, shows that Stevens was given 5,000 acres of property “in a neck of land called Synpux” by Lord Baltimore. The collection of Pitts, a local surveyor who died in 1993, includes maps, notes and photographs.
Synpux evolved to the modern Sinepuxent, both the neck and bay south of the Ocean City
September 2023 Ocean Pines PROGRESS 45 LIFESTYLES
u
The future Ocean Pines, circa the late1800s, showing the Buckland, Middle Quarter and Malvern properties
Before there was Ocean Pines
Inlet.
From Page 44
Pitts’s notes on the land grant to Stevens state that the property was from on the “seaboard” side of the state, an early reference to the Eastern Shore, to the southward of the St. Martin River, which forms a portion of Ocean Pines’ eastern boundary.
The land grant was marked by a “sound of water bay called Newhaven” and bordered land owned by William Tomkins to the south “at the mouth of a creek in a marsh.”
The grant also references the boundaries of the property as being defined by a long-lost “marked white oak” and on another side by a “marked red oak.” The location of these oaks are unkown today.
Stevens sold about 800 acres of the land almost as soon as he received the patent. He sold the property south of the St. Martin River to Col. Francis Jenkins, who in 1698 willed the land to his wife Mary Jenkins.
Another approximately 600 acres of the Mayfield Situate land was acquired by Francis John and Mary Henry, who sold it on June 7, 1711, to Robert Mills. Less than a year later Mills turned around and sold the property back to the Henrys.
The property’s ownership can be traced directly from the Henrys to their descendents, who by the mid-1700s had christened the Mayfield Situate land as Buckland.
That name stayed with the property up until it was acquired by Boise Cascade, successor to U.S. Land Corp., and the master developer of the subdivision that became Ocean Pines.
Henry, in 1715, willed several plantations in the area, including half of the Buckland property, to each of his sons, John Henry and Robert Jenkins Henry and his wife, Mary Jenkins.
In 1723, Mary Jenkins sold 200 acres of the Buckland property, known as “Sister’s Gift,” to Robert King and his wife, Priscilla, but the same year the property was deeded back to her. Upon her death in she willed the land to her son, another John Henry, who was deputy surveyor for the newly created Worcester County.
A decade later, Robert Jenkins Henry deeded 450 acres of property known as “Security” to John Henry.
The entire Buckland parcel was resurveyed in 1769 for John Henry, who at that time owned 1,793 acres of land in the area of present day Ocean Pines.
Through marriage, John Selby Purnell acquired the northernmost portion of Buckland along what is now Beauchamp Road and fronting on the St. Martin River.
An additional portion of the property was passed down to Margaret Campbell Purnell and her husband, Edward G. Kenly. William Pitts himself surveyed Buckland for Kenly on Jan. 25, 1887, when he purchased the northernmost portions owned by Purnell.
Kenly’s two daughters, Margaret Henry and Elizabeth Spense Purnell, and a son, Glenn Kenly, ultimately inherited the land from their father.
From that final bequest, the community of Ocean Pines was eventually born.
Ocean Pines resident celebrates 101st birthday
Family and friends commemorated occasion at Yacht Club
By JOSH DAVIS
Contributing Writer
Ocean Pines resident Vivian Mumford celebrated a huge milestone on Friday, when she turned 101.
Mumford was born on Aug. 4, 1922, on a farm in a town called “Friendship” that today is known as Pittsville.
She said the farm grew various crops and had one cow and a few chickens. She remembers picking strawberries.
“I loved it because I didn’t have to work on it!” she said.
Mumford went to high school in her hometown, where she was an honor student and was crowned May queen her senior year. She earned a partial scholarship to attend college, but said the family at the time couldn’t afford the rest of tuition.
“Instead, I worked at Woolworth’s dime store. That was my first job,” she said. “And then I worked at J.C. Penney’s and Benjamin’s. I worked all over the place.”
Mumford did everything from running the jewelry counter, to serving as a buyer for a sporting department.
Her eyes lit up when asked about meeting her late husband, Jack.
“You know, we met in Ocean City, at the Pier Club,” she said. “I was there with some friends that I worked with, and I was dancing with another fella and he cut in,” Mumford said. “I found
46 Ocean Pines PROGRESS September 2023 LIFESTYLES
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Vivian Mumford (left) and daughter Susan Blanton celebrating Vivian’s 101st birthday
out later he worked in the dime store across from Woolworth’s called McCrory’s.”
Jack was drafted into the Army during World War II. After basic training he returned home, and the couple were married.
Around 1942, he was discharged and went to work for the electric company, then called Eastern Shore Public Service. Today, it’s Delmarva Power.
“He was a linesman when he first started, and he climbed poles,” Mumford said. “He put those spikes on his legs and climbed up those poles –they don’t do that now! They have a truck with a bucket.”
The couple had four children: Susan, Jay, Cynthia and Mike. She said Mike is the youngest and was born on her 46th birthday. Susan is the oldest.
“I have four children and four grandchildren – and I might have four great grandchildren,” Mumford said, pausing to count them off by name.
The family lived on Truitt Street in Salisbury for 38 years, and later nearby on Beaglin Park Drive.
Jack suffered from Alzheimer’s disease and passed away at Deer’s Head Hospital in Salisbury in 2006.
Mumford, on doctor’s orders not to drive any more, moved into the Gull Creek senior care facility in Berlin about eight years ago, at age 93.
Her daughter, Susan Blanton, often “ran back and forth” from Ocean Pines to help care for her.
“I lived there for four-and-half years, and then Susan said would it just be easier if you came and lived with me?” Mumford said.
That was four years ago in 2019, when Mumford moved in with Blanton on Ivanhoe Court in Ocean Pines.
Blanton said it was good timing, with the pandemic coming a year later and cutting off access to senior centers.
She said her mom was strict growing up.
“You didn’t mess with mother,” she said.
“But I always stuck up for you!” Mumford added. “She was seven months old before [her father] ever saw her,” because of his service.
Mumford said her children helped out with small chores, like doing dishes and clearing the table.
“She didn’t make us do too much around the house, because we couldn’t do it to suit her,” Blanton said with a laugh. “But everyone always thought my mother was the nicest and the prettiest.”
Now, Blanton is the caretaker for her mother –when she’ll let her be.
“She can still take care of herself. She does her own laundry and makes the bed. She does let me cook, because she can’t really remember recipes,” Blanton said.
“She doesn’t want me to turn the stove on, that’s what it is!” Mumford added. “But she does the cooking and I eat it – whatever it is.”
Mumford said she enjoys being in Ocean Pines with her daughter.
“I’ve got my own bedroom, and there’s a sitting room, and I read a lot,” she said. “I’ve read the same books over and over again.”
They also take frequent trips to the local li-
Red Shoe Book Club
Local author
Ocean Pines author Dr. Cynthia Roman displays her latest book at the Ocean Pines Library. Titled Don’t Call Me a Ghost!, the book is about albinism throughout the world. Albinism affects the production of melanin, the pigment that colors skin, hair and eyes. It’s a lifelong condition that affects coloring and eyesight. A Virginia native, she is a retired university professor, executive coach and the author of numerous academic books and novels. She and her husband, Jim, have lived in Ocean Pines since 2014. She is a past president of the Friends of the Ocean Pines Library.
On Aug. 8, the Republican Women of Worcester County held their “Red Shoe Book Club” meeting at the Ocean Pines Library. Their book selection was “Hidden Power, Presidential Marriages that shaped our History,” from a list of books through the Mamie Eisenhower Library Project. Republican women have donated thousands of books each year to schools, libraries and other public institutions through this project.
brary. “I like books that were written back in the time when there were dukes and princes and things like that, like ‘Gone with the Wind.’ And I’ve read a lot of Nicholas Sparks books,” Mumford said.
One Sparks series that she’s read many times frustrates her to no end.
“He wrote these two books [in a series] and this guy was so much in love with this girl, and then she died. If you want to read a book about how somebody mourned, that will really hurt you,” Mumford said. “I said I’d never read another one of his books. He killed that girl! But anyway, I have read many more of them.”
The most recent, she said, was “The Last Song.”
She’s also read “With Every Breath I Take” by Celia Martin at least three times.
“Every time, you find something different,” she said.
Mumford celebrated her birthday at the Ocean Pines Yacht Club with family and friends.
She said the milestone “just means I’m getting older.”
Asked for words of wisdom on living to 101, Mumford said, “Don’t smoke, don’t drink, but dance all you want.
“Just be yourself,” she said. “And be honest.”
Ocean Pines PROGRESS September 2023 47 LIFESTYLES
CURRENTS
Board approves $7.2 million budget
Annual dues increase from $1500 to $1700; waterfront assessment set at $500
By TOM STAUSS Publisher
The Board of Directors in a meeting Aug. 14 voted unanimously in favor of the $7.2 million 2023-24 budget presented by Senior General Manager Colby Phillips in late July.
Also approved was a $200 increase in annual dues to $1700, payable in two installments of $850. The waterfront assessment was increased to $500, on the recommendation of the Waterfront Working Group.
The budget calls for $7,690,556 in gross operating revenue and $7,217,066 in net revenue after cost of goods.
It projects operating expenses of $4,775,591 and an allowance for bad debts of $851,700, together totaling $5,627,291.
Depreciation, principal curtailment and interest expenses add up to $1,070,077.
The result is a budgeted cash flow from operations of $519,697, or 7.2 percent of revenue.
This compares to a projected cash deficit of $258,196 for the current fiscal year, which Phillips said has not been recouped in the budget for next year.
Had it been, the annual assessment would have been increased by another $89.
During discussion, Director Mark Majerus said the two main drivers in the assessment increase are bad debt and pending litigation.
“We’ve let people slide [on paying their dues] and carrying unpaid dues on the balance sheet,” he said. “You can’t keep pretending you’re going to collect.”
Majerus said that the Cove’s annual dues could be reduced by $328 if all property owners paid their dues on time and in full.
“The other half is litigation,” he said, referring to the Troon Golf and the Birckhead lawsuits. “We might get some of it {Troon legal expenses] back,” he added, depending on the outcome of the suit. “We filed against Troon because Troon screwed up our finances, and we have to pay for it [pending resolution].”
The forensic accounting currently indicates about $665,000 in discrepancies in revolving accounts.
“We hope to recover any cash owed and the costs associated with resolution of this legal effort,” he said.
The budget presented by Phillips in late July
itemized in detail the allocation of the increase in dues:
• Member litigation fees, $104
• Insurance cost increases, $30
• Increases in supply costs, road repairs, $43
• Health insurance increases of 13 percent from 2022 to 2023, $35
That actually totaled $212. Phillips rounded it back down to $200.
Majerus said that $5.08 million of the $7.2 million in net revenue is comprised of dues, or 70 percent of total revenue, with the remaining 30 percent in food and beverage revenue and other sources.
Majerus said that direct payroll costs of $2.09 million is 29 percent of the budget, with so-called “loaded” payroll of $2.61 million or 36 percent of the operating budget.
“CCGYC is as service and amenity organization, and this labor is not out of line,” he said. Majerus presented a graphic showing costs as a function of dues.
These included non-food and beverage payroll,
$544; bad debt expense, $328; general administration, $191; payroll burden, $179; roads and maintenance, $120; utilities, phone and trash, $120; legal fees (excluding those related to collections), $119; golf course, $45; pools and security, $18; depreciation, principle and interest, $370; and expenses related to a change in designating delinquent accounts from 270 to 91 days, $91.
These items totaled $2,125.
Other costs as a function of dues included a capital reserve contribution of $150,000, or $52, resulting in a total of $2,177.
These costs are partially offset by other income streams, Majerus said.
These include food and beverage net income, $65; accounts receivable collections, $69; other income streams, $151; and interest charges from delinquent accounts, $199.
Other income streams included Pender & Coward collections and foreclosure auctions, lot mowing, boat slips, guest passes, ECC fees, violations, and golf cart fees.
Town Center deck repairs were completed in mid-August by Cove a Mainteance Department crew.
48 Ocean Pines PROGRESS September 2023 To Page 52
CAPTAIN’S COVE
Budget Fiscal Year 2024
Budget Fiscal Year 2024
Budget Fiscal Year 2024
CAPTAIN’S COVE CURRENTS
Approved Captain’s Cove Golf and Yacht Club 2023-24 Budget
September 2023 Ocean Pines PROGRESS 49
Source: Senior General Manager Colby Phillips Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No Marina Club - Wine $30,000 $30,000 Marina Club - Retail $12,000 $5,000 Misc Income $16,000 $16,000 Total Operating Revenue: $7,690,556 $6,904,834 Cost of Goods Sold Reforecast 2023 Cost Of Goods Sold-Pro Shop $11,000 $10,000 Cost of Good Sold-Marina Club Retail $6,000 $10,243 Cost Of Goods Sold-Town Center Food & Beverage $90,000 $105,000 Cost Of Goods Sold-Town Center Grocery $21,000 $19,919 Cost Of Goods Sold-Town Center Beer $28,280 $33,000 Cost Of Goods Sold-Marina Club Food & Beverage $231,800 $275,000 Cost Of Goods Sold-Marina Club Alcohol $44,100 $45,000 Cost Of Goods Sold-Marina Club Beer $32,220 $37,500 Cost Of Goods Sold-Marina Club Wine $9,090 $9,000 Total Cost of Goods Sold $473,490 $544,662 Gross Income: $7,217,066 $6,360,172 Golf Expenses Reforecast 2023 Golf Course Maintenance Payroll $186,369 $179,201 Pro Shop Payroll $60,900 $58,553 Maintenance Shop Supplies $7,956 $7,800 Supplies-Pro Shop $7,140 $7,000 Supplies-Golf Course/Small EQT $3,450 $3,000 Equipment Repair/Maintenance-Golf Course $11,550 $11,000 Top Dressing Sand $4,080 $4,000 Bunker Sand/Top soil $3,060 $3,000 Aerification/Fertilizer $4,950 $4,500 Chemicals $34,800 $30,000 Seed $1,440 $1,200 Irrigation repair $7,000 $4,000 Irrigation Computer $2,625 $2,652 Pump House/Course Supplies $7,000 $7,000 General -Golf Events $2,400 $2,400 Golf Cart Equipment Capital Lease Payment $30,744 $20,000 Golf Cart Maintenance $2,220 $2,200 Total Golf Expenses: $377,684 $325,306 Food & Beverage Expenses Reforecast 2023 Town Center Food & Beverage Payroll $140,000 $154,241 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget Licensing & Permits $6,000 $4,000 Cable TV $4,200 $4,200 Equipment Repair/Maintenance $6,000 $8,000 Equipment Rental $24,720 $24,000 Cleaning Supplies $9,270 $9,000 Food & Beverage Supplies $29,500 $40,000 Entertainment $34,200 $36,200 Sales & Use Tax Food & Beverage $0 $0 Paper Goods $11,000 $0 Total Food & Beverage Expenses: $648,430 $724,726 General Administration Operating Expenses Reforecast 2023 Administration Payroll $630,696 $540,000 Mileage reimb/travel $4,635 $4,500 ECC Expenses - Vista Reviews $39,000 $32,659 Marketing $24,000 $48,000 Community Events $23,000 $24,000 Preventative Main. Fire/Life/Safety $3,600 $3,200 IT - Supplies $3,548 $3,445 IT Licensing Subscriptions - CARDS/Toast etc. $116,461 $113,069 Postage-mailings-Iron Mountain-Copier $27,772 $26,963 Transcription Service - G&A - Administrative Supplies $43,760 $42,000 Professional Fees-Audit $30,385 $29,500 Insurance - Exclusive of Workers Comp & Health $196,928 $180,000 Rainy Day Fund $23,176 $0 VAPOAA Capital Reserve Study $15,000 $0 Total General Administration Operating Expenses: $1,181,961 $1,047,336 Legal Costs Reforecast 2023 Legal Fees General $43,260 $42,000 Legal Fees-Collections Member AR $95,000 $95,000 Prof Fees-Legal -Troon Legal Claim $100,000 $190,000 Prof Fees-Legal -Member Litigation $200,000 $100,000 Total Legal Costs Expenses: $438,260 $427,000 Removing AR and General, Legal fees account for $104 of the projected increase. Insurance increases account for $30 of the projected increase. 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Marina Club Food & Beverage Payroll $380,640 $441,185 Promo $2,400 $2,400 Uniforms - Food & Beverage $500 $1,500 Licensing & Permits $6,000 $4,000 Cable TV $4,200 $4,200 Equipment Repair/Maintenance $6,000 $8,000 Equipment Rental $24,720 $24,000 Cleaning Supplies $9,270 $9,000 Food & Beverage Supplies $29,500 $40,000 Entertainment $34,200 $36,200 Sales & Use Tax Food & Beverage $0 $0 Paper Goods $11,000 $0 Total Food & Beverage Expenses: $648,430 $724,726 General Administration Operating Expenses Reforecast 2023 Administration Payroll $630,696 $540,000 Mileage reimb/travel $4,635 $4,500 ECC Expenses - Vista Reviews $39,000 $32,659 Marketing $24,000 $48,000 Community Events $23,000 $24,000 Preventative Main. Fire/Life/Safety $3,600 $3,200 2024 Proposed Budget Marina Club - Wine $30,000 $30,000 Marina Club - Retail $12,000 $5,000 Misc Income $16,000 $16,000 Total Operating Revenue: $7,690,556 $6,904,834 Cost of Goods Sold Reforecast 2023 Cost Of Goods Sold-Pro Shop $11,000 $10,000 Cost of Good Sold-Marina Club Retail $6,000 $10,243 Cost Of Goods Sold-Town Center Food & Beverage $90,000 $105,000 Cost Of Goods Sold-Town Center Grocery $21,000 $19,919 Cost Of Goods Sold-Town Center Beer $28,280 $33,000 Cost Of Goods Sold-Marina Club Food & Beverage $231,800 $275,000 Cost Of Goods Sold-Marina Club Alcohol $44,100 $45,000 Cost Of Goods Sold-Marina Club Beer $32,220 $37,500 Cost Of Goods Sold-Marina Club Wine $9,090 $9,000 Total Cost of Goods Sold $473,490 $544,662 Gross Income: $7,217,066 $6,360,172 Golf Expenses Reforecast 2023 Golf Course Maintenance Payroll $186,369 $179,201 Pro Shop Payroll $60,900 $58,553 Maintenance Shop Supplies $7,956 $7,800 Supplies-Pro Shop $7,140 $7,000 Supplies-Golf Course/Small EQT $3,450 $3,000 Equipment Repair/Maintenance-Golf Course $11,550 $11,000 Top Dressing Sand $4,080 $4,000 Bunker Sand/Top soil $3,060 $3,000 Aerification/Fertilizer $4,950 $4,500 Chemicals $34,800 $30,000 Seed $1,440 $1,200 Irrigation repair $7,000 $4,000 Irrigation Computer $2,625 Pump House/Course Supplies $7,000 $7,000 General -Golf Events $2,400 $2,400 Golf Cart Equipment Capital Lease Payment $30,744 $20,000 Golf Cart Maintenance $2,220 $2,200 Total Golf Expenses: $377,684 $325,306 Food & Beverage Expenses Reforecast 2023 Town Center Food & Beverage Payroll $140,000 $154,241 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Utilities & Telephone & Trash Reforecast 2023 Utilities-Electric $63,860 $62,000 Utilities-Water/Sewer $82,488 $80,823 Gas, Fuel, Diesel $47,380 $46,000 Propane - All departments $57,890 $56,000 Telephone & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323 Committee Expenses Reforecast 2023 Arts & Craft League Committee $1,000 $1,000 CERT $500 $250 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Committee Expenses: $3,700 $3,450 Total Operating Expenses: $4,775,591 $4,646,578 Allowance for Bad Debt: $851,700 $900,000 Total EBITDA: $1,589,774 $813,594 Other Expenses Reforecast 2023 GF Depreciation $480,000 $480,000 WF Depreciation $24,000 $24,000 GF - Principal Curtailment $455,400 $455,400 Interest $110,677 $112,390 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Total ITDA: $1,070,077 $1,071,790 Budgeted Cash Flow from Operations: $519,697 -$258,196 7.20% (89.37) $ Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher Budget number then $200. As mentioned in the meeting, there were areas the team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment. 2024 Proposed Budget 2024 Proposed Budget Security & Pools Operating Expenses Reforecast 2023 Pool/Reception Payroll $153,133 $147,243 Security Payroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 R&M Operating Expenses Reforecast 2023 Roads & Maintenance Payroll exclusive of WF $343,395 $330,648 Housekeeping Payroll $15,000 $25,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Repair of Existing Roads $97,725 $7,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads Default Cure $20,000 $0 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Waterfront & Canals Reforecast 2023 Waterfront Payroll $50,000 $27,000 Supplies-Waterfront & Canals $10,000 $115,000 Dredge Repair $38,000 Dredging - Vendor $0 $0 Re-establish Reserve Account $70,000 $0 Total Waterfront & Canals Expenses: Placeholder $168,000 $142,000 Payroll Burden Reforecast 2023 Payroll taxes/FICA - consolidated $185,000 $180,000 ADP Processing fees/Payroll $6,695 $6,500 Medical & Health $302,637 $296,703 Workmans Comp. Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Budget 2024 Proposed Health Insurance increased 12% between 2022-23 as well as combining all departments into one budget will account for $35 of the projected increase. Cost increases to supplies as well as the recommended road repairs accounts for $43 of the projected increase. Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No Account Name Operating Revenue & Expense Reforecast 2023 Assessments Dues $4,911,300 $4,342,589 Waterfront Dues $168,000 $68,808 AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet $200,000 $200,000 AR Collections Legal Fees Posted to Member Accounts $95,000 $95,000 Interest Charges to delinquent accounts $575,000 $600,000 Gain on Sales of Lots $1,212 $1,200 Gain on sale of assets $900 $900 Boat Slip Fee $33,600 $23,000 Interest Reimbursement - Declarant $12,827 $21,664 Bulkhead Cure Collections $0 $0 Lot Mowing Fee $105,504 $75,360 Pool Fees (Lessons) $3,000 $3,000 Mailbox Keys $216 $200 Guest Passes (Amenity) $40,000 $38,000 STR Registration Fee $36,400 $0 CC&R Violation Assessment $22,000 $22,390 Disclosure Packets $13,130 $13,000 Environmental Control Committee Application fees $14,528 $14,384 Event Income $3,030 $2,165 Greens Fees $19,100 $55,639 Cart Fees $125,100 $52,000 Pro Shop Sales $5,050 $5,000 Golf Event Income $2,020 $2,000 Memberships/Golf/VSGA $0 $33,947 Marina Club Food & Beverage $612,000 $590,000 Town Center Snackbar $250,000 $235,000 Town Center Retail Beer $41,100 $40,000 Town Center Retail Grocery $52,500 $37,500 Misc Income & Disc (Food, Beverage, & Golf) $9,039 $6,088 MC Banquets $0 $0 Marina Club - Beer $123,500 $125,000 Marina Club - Liquor $157,500 $150,000
Captain's Cove Golf & Yacht Club, Inc. 2024 Proposed Budget Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Note: Include Zero Balance GL Accounts: No
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September 2023 Ocean Pines PROGRESS 51 CAPTAIN’S COVE
CAPTAIN’S COVE CURRENTS Approved budget
From Page 48
These “savings” against the assessment totaled $484.
When savings of $484 are subtracted from costs of $2,177, the result is $1,693, or $7 less than the approved assessment of $1700.
Majerus noted that food and beverage operations are projected to generate a profit of $184,000 in the current fiscal years.
Payroll reductions in security and repair and maintenance savings have been projected at $50.
In approving the budget, the Board adopted a property management team and Operating Committee recommendation to return to the former practice of including walking access to the golf course as part of the annual dues. Golf carts are extra.
During discussion prior to the budget’s approval, alternate director David Felt said he wanted assurances that canals in Captain’s Cove would continue to be dredged, at least for one more year, perhaps more, depending on how much capacity remains on the Cove’s spoil site, Treasure Island.
Dredging for next year is not guaranteed, as the developer/declarant CCG Note has rescinded the right of CCGYC employees to traverse land the developer owns near Treasure Island. CCGYC employees have crossed that developer-owned parcel to access Treasure Island as part of disposing of dredging spoil. Without the right to traverse this parcel, spoil disposal may be precluded.
Majerus has discovered deed documentation that transferred Treasure Island Drive to the Association, however.
This differs from what is shown on county tax maps.
“Resolution of the ownership [issue] may alter the ability of the Declarant to eliminate the right to traverse land to access Treasure Island,” Majerus said.
Prior to the vote to approve the budget and raise the dues, Majerus called for a show of hands among CCGYC members attending the meeting in person to gauge their support of next year’s spending plan.
Of the 100 to 150 members in attendance, most raised their hands in opposition to the budget.
Raising the annual dues is never a popular thing to do, but Cove directors concluded they had little choice.
52 Ocean Pines PROGRESS September 2023
$1 million loan possible for new road paving
Developer open to increase in ECC fees
By TOM STAUSS Publisher
The approved Captain’s Cove budget for 2023-24 includes increased spending for maintenance of roads, but the Roads Working Group that met Aug. 17 to consider a plan for the future has much loftier ambitions than mere upkeep of existing streets.
While much remains to be worked out, committee members indicated a willingness to recommend that Captain’s Cove Golf and Yacht Club secure a $1 million loan for road paving, specifically to complete Mutiny Drive and Seaview Street.
Also on the radar is resurfacing Davy Jones Boulevard
Consultant Chris McCabe said that paving Mutiny Drive and Seaview Drive might require wetlands mitigation, an issue that the Cove continues to deal with. The U.S. Army Corps of Engineers controls wetlands mitigation in the Cove, and there has been a long wait to obtain a delineation needed before the Cove can proceed with new road construction.
What’s called a “jurisdictional determination” for Sections 1, 7 and 10 is close to being approved, McCabe said. Also in the works is a determination for Section 1.
If any proposed new road is within an area defined as a non-tidal wetland, the Army Corps of Engineers would require mitigation elsewhere as a condition of a permit. Mitigation could occur on site or CCGYC could purchase credits from a mitigation site outside of Captain’s Cove.
The Cove’s strategy for Sections 1,7 and 10 was to provide for mitigation in the form of conservation easesments in marshy areas in those sections, along with a plan to restore what’s called a “phrag pit” located near Castaway Drive in Section 1.
If that effort succeeds, then CCGYC could use those mitigation “credits” to allow for the fill of low-lying lots or to build roads. Owners of several lots in the Cove have been unable to building their properties
pending this determination and the availability of mitigation.
During discussion of the possibility of securing a $1 million loan to pave Mutiny Drive and Seaview Street, CCGYC Director Tim Hearn said that the Cove declarant/developer, CCG Note, would be receptive to this idea.
“Declarant is open to adjusting ECC fees [to generate funds for servicing the debt] if the Birckhead suit is dismissed with prejudice,” he said.
He was referring to an on-going lawsuit filed by Cove resident Teresa Birckhead and six other CCGYC members to stop or delay a proposed townhouse development at the back entrance to Captain’s Cove off State Line Road.
Hearn also said that the declar-
ant has indicated willingness to make $50,000 per year debt service payments on a $1 million road loan “through the end of the original 20year term that began in 2012.
Hearn said that the declarant/ developer continues to control the activities and actions of the ECC, and that any decision to raise ECC fees for new construction permits and renovations would require CCG Note to agree.
Cove resident Andy Zubco suggested a fee of 1 percent of the value of any new construction or renovation project.
Hearn called that a “worthy idea.”
It was noted during discussion that the fee increase under consideration is called an “administrative fee” in the Cove Declaration, not an impact fee.
Hearn said that impact fees are often levied on developers with proceeds used for public improvements that aren’t necessarily connected to proposed development.
Administrative fees, in contrast, are related to the cost of a specific service provided.
Hearn reiterated that CCG Note is willing to open up discussion of higher ECC administrative fees once the Birckhead litigation is resolved.
When that might happen is unknown, but a court hearing on the many competing narratives in the case could be scheduled by the spring of next year, he said.
He suggested that Cove General Manager Justin Wilder, whose area of responsibility includes working with the ECC, come up with a recommendation on how ECC fees could be adjusted.
Also during the Aug. 17 working group meeting, there was discussion of the possibility of resurfacing some of the tar and chip roads in Captain’s Cove with a so-called fog seal, a half-inch surface that has the appearance of asphalt without the cost of asphalt.
September 2023 Ocean Pines PROGRESS 53 CAPTAIN’S COVE CURRENTS
Junior guard
Gavin Zubko on the stand during the final junior lifeguard day in mid-August.
54 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS
Roads transfer to county can’t be done, Hearn says
Tar and chip material, lack of curb and gutters mean Cove roads don’t meet ‘municipal’ standards
By TOM STAUSS Publisher
Captain’s Cove Director Tim Hearn fielded a question about the possibility of transferring Captain’s Cove roads to Accomack
County as a way of saving money.
His answer during an Aug. 17 roads working group meeting was that it can’t be done.
The reason is that Cove roads, dating back to the 1970s, are made
of tar and chip material, rather than asphalt, and also lack curbs and gutters.
“They don’t meet municipal standards,” he said, and therefore Accomack County officials couldn’t take
them over even if they wanted to,
The upshot is that the Captain’s Cove property owners association will have to continue to maintain them and plow them after a winter snowstorm, Hearn added.
He also used the occasion of the working group meeting to explain another impediment to a roads transfer, particularly Captain’s Corridor, which he said is not owned by Captain’s Cove Golf and Yacht Club from the back entrance on State Line Road down to Cove Commons.
That contention is one of the main issues in the Birckhead lawsuit against Aqua, CCGYC and CCG Note, the Cove declarant/developer.
The issue of ownership is an important one. The plaintiffs contend that the entire length of Captain’s Corridor is owned by the POA and that as a result the Cove Board of Directors and Accomack County have no right to grant access to the proposed Hastings townhouse project from the portion of Captain’s Cove that abuts.
As he has almost since the day the suit was refiled earlier this year, Hearn said that former state road 741, now Captain’s Corridor, was deeded over to the original Captain’s Cove developer, Cal Burns, in the 1970s.
An exception, Hearn said, was the portion of the road from State Line Road to Cove Commons.
That section was conveyed both to the developer, on the east side, and to the Hastings family, on the west side, with the boundary line in the middle of the road.
“When Cal Burns recorded Section 14, he expanded the original 15-foot width of the road on his side by 20 feet, resulting in a road width of 35 feet,” Hearn said. The Hastings family left its side of the road as it was.
Easements and improvements in Section 14, an undeveloped area of Captain’s Cove, have never been turned over to CCGYC, Hearn said, and to this day the Hastings family retains the western side of Captain’s Corridor, at least 15 feet of it.
Hearn said that Cove residents who leave Captain’s Cove via the back entrance are “driving on private property,” owned by CCG Note and the Hastings family.
He acknowledged that the Birckhead lawsuit “challenges all that.” He said that Cal Burns paved the portion of Captain’s Cove in dispute and that CCGYC has been maintaining it ever since.
To Page 58
September 2023 Ocean Pines PROGRESS 55 CAPTAIN’S COVE CUR-
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56 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS
September 2023 Ocean Pines PROGRESS 57 CAPTAIN’S COVE CURRENTS
Majerus explains reduction in security staffing, spending
Says department’s mission can be accomplished with smaller staff
By TOM STAUSS Publisher
Responding to criticism from some Captain’s Cove Golf and Yacht Club members that reductions in Security Department staffing will affect the safety and security of the community, CCGYC Director and Vice President Mark Majerus said it will not have that result. Even with approved reductions in staff, there will be one security officer per shift circulating throughout the community.
Director of Operations John Costello is also on call 24 hours per day to deal with emergency sit-
uations, if needed.
“If a call comes in at 2 a.m. and back-up is needed, John responds,” Majerus said.
But Majerus seemed to suggest that some of the criticism about reduced spending for the Security Department involves a misunderstanding of the department’s role.
He said the department is not a police force, and that situations involving possible criminal acts should trigger a 911 call, with the Accomack County sheriff’s office in Accomac or the state police based in Melfa the expected first responders.
During the Aug. 14 Board of Directors meet-
ing, Majerus detailed the Security Department’s mission.
One objective is to assist members in health or injury-related 911 calls to the county’s Emergency Center.
“A team member is often on-site within four minutes or less of a 911 Emergency Center notification,” he said. “All of the team is trained and certified in general first aid, Narcan, CPR and AED (automatic emergency defibrillator).
This is a valuable service to our members as an ambulance or paramedic service can take 20 minutes or longer to arrive, depending on which agency responds,” he said.
As the County continues to staff up the Greenbackville Fire Department ambulance facility, we should have faster response times in the coming months,” he added.
Majerus said the second mission of the Security staff is to manage and protect Association-owned property, which he said can be accomplished with reduced staff.
“With the reduction in the security staffing, there will be less visible patrols on the streets within the Cove,” he acknowledged.
The third objective of the department is to support the Property Management Team and the Association in the enforcement of the various codes, covenants, and restrictions.
Again, he said, this does not required the level of staffing that had been in place.
General Manager Justin Wilder’s job description includes a focus on Environmental Control Committee enforcement activities.
“The Security Team is not a law enforcement agency,” Majerus said. “They are not empowered or trained to act as such. If resident Members need such support in response to potential burglary, domestic violence, tripped security alarms, etc. they are advised to contact the Accomack County sheriff’s office.”
Roads
From Page 55
Hearn said that both the Hastings family and CCG Note, as the successors to Cal Burns, grant each other easements so that both can travel on that portion of Captain’s Corridor.
Even if it hasn’t been, it seems unlikely that CCG Note or the Hastings family would attempt to deny access rights to the entity that has been helping to maintain Captain’s Corridor in all the decades since it was originally paved by Cal Burns.
Meanwhile, during the protracted discovery process in the Birckhead litigation, Douglas Kahle, the Birckhead et al attorney, has declined to produce any document, specifically a deed or turn-over agreement, that purports to show the conveyance of the disputed portion of Captain’s Corridor to CCGYC. But he denied in an answer to an interrogatory that the disputed roadway is jointly owned by the developer and the Hastings family.
Hearn said that lawyers for CCG Note have produced the deeds that detail the ownership of Captain’s Corridor as described by Hearn.
58 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS
u
Majerus added that the call log to Security is reported monthly and is published on the www.captscove. com website under Public Documents -> Management Reports & Meetings -> Security.
The ratio of calls between the categories of community safety, violations/complaints, and community service has been fairly consistent, Majerus said, making it possible to reduce staffing and lower costs without risking the security and safety of Captain’s Cove.
The total reduction in staffing is about 15 percent, he added, with at least one car on patrol at all times.
With the recent adjustment in staffing, Majerus said CCGYC has about 30 full-time equivalent employees, and he said in some respects Captain’s Cove is a small town that he compared and contrasted with nearby Chincoteague.
Captain’s Cove has about 1,500 full-time residents, while Chincoteague has 3,000, he said.
While it has multiple boat ramps and one marina, it doesn’t have a golf course or swimming pools maintained by the town, Majerus said.
Captain’s Cove has a nine-hole golf course and three swimming pools, two outdoor and one indoor.
Chincoteague has 60 employees, he said, twice the current total in Captain’s Cove.
He directed members to the CCGYC Website for a copy of the Cove’s organizational chart, which he said contains job descriptions for the top three tiers of management “so you can understand their roles.”
Majerus said the budget for 2023-24 was carefully constructed after numerous work sessions, with directors meeting with the property management team both individually and in groups.
Plaintiffs’ lawyer challenges
Aqua’s motion to dismiss
By TOM STAUSS Publisher
Ahearing is set for Monday, Oct. 2, in Accomack County Circuit Court on the motion by Aqua Virginia to be dismissed as a co-defendant in the ongoing case against CCG Note and Captain’s Cove Golf Club filed by Teresa Birckhead and six other plaintiffs.
On Aug. 8, the lawyer for the Birckhead plaintiffs, Douglas Kahle of Chesapeake, Va., filed a brief opposing Aqua’a motion to be dismissed as a defendant. Kahle’s motion underscored the wide gulf between the litigants on a number of contentious issues.
The Oct. 2 demurrer hearing may provide some clarity on how the judge in the case, William Revell Lewis III, will rule on these issues. A demurrer is a pleading in which a party challenges the legal sufficiency of an opposing pleading and demands the judgment of the court on certain matters before proceeding further.
Kahle’s brief opposing Aqua Virginia’s motion for dismissal offers a useful summary of the issues that divide the litigants.
One issue is a disagreement over Aqua’s long-term intentions to use ten numbered lots in Sections 13 and 14 for the construction of rapid infiltration basins to contain treated wastewater from Aqua’s waste collection and treatment system in Cap-
tain’s Cove. Said to be ten or more years into the future, the plaintiffs contend that the need for the RIBs and their eventual construction runs afoul of the CCGYC Declaration of Restrictions, sometimes called the Declaration for short.
The plaintiffs contend that the Declaration limits numbered lots for residential purposes, while the defendants have said at various times during the proceedings that numbered lots according to the Declaration can also be used for utility purposes.
Kahle’s latest motion says Declaration 4.A “specifically prohibits any structures on numbered lots other than residences and associated outbuildings”and Declaration 8
“prohibits any activity that creates an unreasonable annoyance or nuisiance in the neighborhood.”
The motion further states that the Virginia Code provides that “lack of compliance” with the Declaration gives a lot owner the right to “sue in equity to prevent Aqua’s planned violations of the Declaration’s restrictions.”
In its motion that Kahle is contesting, Aqua argued that the circuit court lacks jurisdiction over this dispute until a state administrative agency, in this case Virginia’s State Corporation Commission (SCC), has made a ruling.
According to Kahle, the SCC “does not have ‘primary jurisdiction’ over
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Scheduled Oct. 2 hearing may provide some clarity on whether Captain’s Cove’s water and sewer utility will continue as a defendant in the Birckhead litigation with CCGYC and CCG Note
Aqua Virginia
From Page 59 the recorded restrictions governing the use of lots in a subdivision, and Aqua has cited no law or Virginia Administrative Code provision which precludes the plantiff’s claim.”
Aqua has also contended that SSC’s approval years ago of Aqua’s purchase of utility assets,including a permit to withdraw groundwater, was a defacto authority to purchase ten numbered lots for use as a RIB parcel.
“Aqua’s argument ignores the inconvenient fact that the Order [granting approval of the sale] only references the prospective purchase of ten acres of unidentified land somewhere, to be used for the construction of RIBs,” the attorney says.
“The SCC was not asked to, and certainly did not, authorize the construction of RIBs on property subject to recorded restrictions limiting construction to residences and associated outbuildings.” he says.
Aqua is arguing the doctrines of collateral estoppel and res judicata, which essentially say that a matter
that has been adjudicated by a competent court may not be pursued further by the same parties.
Kahle is arguing that this issue of the ten lots has not been adjudicated and that therefore these doctrines do not apply.
With respect to Aqua’s demurrer motion, which challenges the sufficiency of plaintiffs’ amended complaint, Kahle argues that neither the SCC’s purchase approvals nor the groundwater permit is relevant to his clients’ right to challenge the use of the ten lots as a future RIB and to seek injunctive relief to prevent such usage.
Aqua also cited eminent domain in support of its right to acquire the lots for future RIBs. Here, too, Kahle argues that eminent domain is inapplicable in this case.
He contends that the purchase of the lots did not occur under “any theory of eminent domain” and to assert otherwise “amounts to an affirmative defense, and it therefore must be proven at a later stage where Aqua might introduce any evidence” in support of that theory.
Finally, Kahle argues against a contention by Aqua that his clients’ suit against Aqua is barred because
Pilot lot listing program approved
Up to 25 properties identified and made available for purchase on the local MLS
By TOM STAUSS Publisher
The Board of Directors has given its approval to a pilot lot listing program to test whether the Captain’s Cove Golf and Yacht Club’s inventory of lots can be reduced, bringing in more dues-paying members and thereby reducing the burden on dues-paying members for the costs of operating the association.
At the Aug. 14 Board meeting, General Manager Justin Wilder said the primary goal of the pilot program is to get up to 25 properties listed on the local Multiple Listing Service.
In a follow-up email to the Cove Currents, he said the listings will make it easier for “interested buyers or their agents to find and make offers on lots that CCGYC is willing to part with and has confidence in our asking price.”
In the process of selecting the lots, “we intentionally excluded propu
of the applicable statute of limitations.
“The plaintiffs are seeking an injunction against Aqua’s planned, prospective use of numbered lots
in Captain’s Cove in violation of the Declaration,” he asserts. “The plaintiffs do not seek an injunction against Aqua’s continuing ownership of these lots.”
60 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS
Wolff announces new recycling contractor
ESVBA moving ahead steadily with broadband installation, supervisor says
By TOM STAUSS Publisher
Accomack County Supervisor Ron Wolff has announced that Accomack County has signed a contract with Shore Waste LLC of Salisbury to haul and process recycled waste in the county.
He made the announcement during an Aug. 14 constituents meeting at the Marina Club banquet room in Captain’s Cove.
Wolff at an earlier meeting had disclosed that the county’s long-time provider, Tidewater Fibre Corporation of Chesapeake,Va., would not be renewing its contract with the county effective July 31. That left the county scrambling to find an alternative.
Shore Waste will be charging the county $130 per ton to haul and process recycled materials, which is a substantial over the $70 per ton that Tidewater had been charging. The increase results in a $3200 monthly budget gap that staff is recommending be filled with contingency fund money.
It turns out that Tidewater had submitted a bid of $150 per ton to continue servicing Accomack County.
Staff recommended and the Board of Supervisors approved the lower bid of $130 per ton submitted by Shore Waste.
In other disclosures and comments during the meeting,Wolff said that:
• Eastern Shore of Virginia Broadband Authority is “moving ahead steadily” with providing broadband high-spped Internet service to the two Eastern Shore counties and Captain’s Cove in particular.
Quoting ESVBA Executive Director Robert Bridgham, Wolff said installation is “ahead
Pilot lot program
From Page 60 erties where CCGYC, Inc., has an interest in retaining the property for various reasons, including possible future utility use (for maintenance or golf course operations purposes) or similar reasons,” he said.
The range in appraised value of the lots is between $5,000 and $25,000, and are located in Sections 1, 2 and 3.
Wilder said the program should launch in late August or early September.
“We have flexibility to pursue more targeted marketing opportunities in the future based on the response, but there is no plans for that at least until after 90 days after the pilot program starts, “ he added.
Wilder said that a listing agreement with Jonah Baker of Dockside Properties in Chincoteague was in the process of being finalized. It was Baker who identified the 25 lots to be listed on MLS, and that was reduced from a larger list that Wilder whittled down.
of schedule,” and that ESVBA is well along to spending all of the VATI grant money provided for that purpose.
Wolff added that the county has submitted an application for a federal V-grant, a program designed to provide broad band to under-served rural areas.
“We’ll find out in late fall to early spring [whether we get the grant],” he said.
The V-grant would be used to fund any shortfalls from the VATI grant, Wolff said.
• Rumors that Tyson Foods might be closing its poultry processing plant in Temperanceville appear to be baseless. The company had announced the sale of four plants throughout the country, but Wolff said the company recently installed new signage at its plant in Temperanceville, an indication that the company isn’t going anywhere.
“We feel confident that the plant will stay in business a long time,” he said.
• The Board of Supervisors has amended a county ordinance that mandates boat stickers on all vehicles parked at county boat ramp, with the change effective next year.
Next year only vehicles with boat trailers will require the stickers, which are available free to county residents but carry a fee for non-residents.
Wolff credited a Captain’s Cove resident he didn’t name for the change.
• There will be a ribbon-cutting ceremony Sept. 8 at the county’s new $5 million library in Parksley, which Wolff said will be an outstanding resources for resident of both Accomack and Northampton counties now that a lease with the Eastern Shore Public Library Foundation has been finalized.
He advised residents who are interest in genealogy to take advantage of documents that date back to the 1600s.
• A satellite sheriff’s office in or near Captain’s Cove “is not gonna happen.” In response to a question from a Cove resident,Wolff said that the sheriff is well situated in Accomac, the county seat, where the courthouse and jail are located. He mentioned that there are six deputies patrolling the county at all times, but that the sheriff is struggling to fill four vacancies in the department.
• He would not be engaging in a conversation with Board of Supervisors candidate Roger DeGeorges during the meeting. “We’re not doing politics,” Wolff said, with some heat. DeGeorgres is the Republican candidate for the supervisor seat currently held by Wolff, an independent. The election will be be held in November.
• Resignations by teachers in the Accomack County public school system are not the result of low salaries, but instead reflect the desire of teachers to return to areas where their families reside. Wolff was reacting to an assertion that teachers in the county use Accomack schools as a stepping stone to better paying jobs elsewhere.
He said teacher salaries in Accomack are competitive with those in near Worcester and Wicomico counties.
Wolff also said, in response to a perception that county schools are underperforming, said that it’s possible for students who want to learn to get a good education in Accomack County. The Ron Wolff problem is that too many parents are not sufficiently interested in their kids’ education, he said, noting that the parents of kids who show up to parent-teacher conferences are often the kids who do the best in school.
• 24-7 emergency medical service from the Greenbackville Fire Department is close, awaiting t a new class of trained recruits that is about half-way completed. When that occurs, the ten days of month when 24-7 service is available will expand to the entire month, Wolff said.
Book learning
September 2023 Ocean Pines PROGRESS 61 CAPTAIN’S COVE CURRENTS
Brittany Lynn Hines” boys checking out the county’s book bus in early August.
Lot swaps approved
AUG. 12 BOARD OF DIRECTORS MEETING NOTES
The Board of Directors at its Aug. 14 meting approved member lot swap requests.
The first one was for unbuildable lot 65 in Section 13 for Section 8 lot 34, on Doubloon Court.
The second swap was for two lots in Section 7 that are considered unbuildable because of wetland issues, lot 35 and 36, for two lots in the same section, 184 and 185.
The swaps are contingent on the members paying all related costs and fees for the transfer.
Another foreclosure auction
The 16th foreclosure auction of properties in Captain’s Cove whose owners are delinquent on their dues will be scheduled for late September or early October.
The Board of Directors at its Aug. 14 meeting approved CCGYC as a credit bidder at the auction to protect its lien rights. Pender and Cowder once again will serve as trustee for the auction.
Director Mark Majerus said that 60 properties initially were on the foreclosure list, but that number will likely decrease as the pending foreclosure auction acts as leverage in collection efforts.
The July 10 foreclosure auction began with 60 properties originally listed, followed by 39 of those paid in full or in a payment plan. Four were sold at the auction. Nine of the properties have generated $59,000 in recovered dues, fees and interest.
CCGYC eventually will gain title to the remaining 17 lots.
Delayed 2021-22 audit under way
As the Troon audit of the “missing” six months of financials in 2002 is more or less complete, CCGYC auditors Rosen, Saperstein and Friedlander have begun the annual audit of the 2021-22 fiscal year. Results are due at the end of September, Majerus said.
With $850,000 allocated for unpaid dues, Majerus said that it would be helpful if all CCGYC members paid their assessments.
Majerus defends advertising policy
In response to comments during the meeting’s Member Forum, Majerus defended the Property Management Team’s decision to purchase advertising in the Cove Currents. He said it’s a PMT decision where to spend marketing dollars within the budget, and that a canvassing of local media indicates that Currents advertising “is the best value for those dollars.”
Majerus told critics that “you may not agree with the content” of the Currents, “just as you may not agree with the content of Fox News or MSNBC,” adding that he understands that comments from Director Tim Hearn that are quoted in the publication can be perceived by some CCGYC members as “contentious.”
He suggested that members with opposing views should send in letters to the editor for publication.
“Try that,” he advised.
He also said that CCGYC does not pay for content in the Cove Currents.
He noted that the electronic version of the publication is extracted from the print version of the Ocean Pines Progress every month and e-blasted to CCGYC members and, together with the print edition, reaches close to the entire CCGYC membership.
That was a reference to complaints that CCGYC marketing dollars are being spent primarily to promote Captain’s Cove in Ocean Pines.
“We get it [the e-version] for free,” he said.
An on-line petition launched by Cove member Patty Borrelli collected 302 names in favor of asking the Board to stop spending association fees on Currents advertising. It was not included as an agenda item for the Aug. 14 Board meeting.
Majerus provided additional comments about the issue in a subsequent email.
“These articles are generated and published as a part of the Ocean Pines Progress,” he said. “The advertising that the Cove purchases is for adver-
tising space in the Ocean Pines Progress. The Cove Currents is a separate publication [both as a section within the Progress and as a standalone electronic publication],” Majerus said.
He added that the Cove Currents is generated as a courtesy to Cove and is “provided in electronic format for our distribution.” The publisher extracts the articles from the Ocean Pines Progress and includes additional details and events from Ms. Phillips weekly e-blasts to generate the Cove Currents, he said.
“It is important to understand the distinction between these two publications,” he continued. “CCGYC pays for ads in the Ocean Pines Progress about public events in the Cove, typically bands coming to the Marina Club, etc. CCGYC pays nothing for the Cove Currents.”
Majerus said this distinction is key and the fundamental problem with the petition launched by Borrelli.
“She indicates that CCGYC spends $21,000 a year for all of the ads or content in the Cove Currents. That is a factual error. The Cove Currents is provided free,” he added.
He suggested that some people may have signed the petition based on the premise that CCGYC spends money on the Currents.
“We don’t spend anything on the Currents, so that’s an erroneous basis for a petition,” he concluded.
Short-term rental fee tabled
The Board tabled a proposed administrative or service fee for properties in Captain’s Cove that are rented out short-term. The fees, calculated at $65 per hour and 14 hours per lot for staff to administer, equates to an annual fee of $910.
The motion to table had three yes votes and two no votes, and two abstentions.
The proposed fee has been postponed for consideration at a future meeting, probably in an amount less than $910 per year.
A fee for services rendered is permitted in CCGYC governing documents and the Virginia Property Owners’ Association Act.
Work Group agrees directory will continue
The Cove Directory work group met Aug. 22 and agreed that, despite some interest in no longer publishing a community directory, the directory will continue at least for another year.
New next year will be a PDF version in addition to the hard copy. It will be available on request to those listed in the directory, as a way of not creating a security issue.
“We will be offering the opportunity to fill out your directory form either on-line or through a hard copy you can either pick up at reception or have emailed to you,” Senior General Manager Colby Phillips said in an email blast after the meeting. “These are not due until Feb. 1, so more information will come out as we get closer.”
She acknowledged that there have been complaints about inaccurate information in the directory, and the work group “ has volunteered to help the team with checking and double checking the information provided by the membership, so we can get the directory as accurate as possible with hopefully little to no mistakes.”
In addition, she said the working group together with the property management team will establish a directory email list. With submissions sent in by members this year containing email addresses, the PMT “will be able to just reach out ... in following years and confirm your information. We hope this will help those who do it each year from having to resubmit, but also to confirm no information has changed from the previous year,” she said.
62 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS
u
Five candidates running for two Board seats
Dave Felt seeks ‘promotion’ from alternate to three-year director
By TOM STAUSS Publisher
The complexion of the Captain’s Cove Golf and Yacht Club’s Board of Directors after this fall’s election is not going to be much different from the current Board.
That’s because there is only one three-year seat to be filled this year, along with the usual one-year alternate position.
That leaves six carry-over members who will be serving on the Board when election results are announced at the annual meeting of the association in November.
There are three candidates running to fill the three-year seat now occupied by George Finlayson. He was the alternate director when he was appointed to fill a vacancy cre-
Cove directory
From Page 49 Phillips said that the publisher of the Cove Directory, apparently having heard that the directory might be discontinued next year, “reached out to us and offered to waive the mailing fee, which was around a $3,000 to $4,000 cost. ... So, this was great news to hear prior to our meeting today.”
The ads in the directory are sold by the publisher and are used to pay for printing the hard copy.
CCGYC incurs no expense in the printing and mailing of the publication,
Willingness to waive the mailing fee suggests that the directory has been a profitable activity for the publisher over the years, even with the mailing expense incurred by the publisher.
The publisher is Chip Bertino, an Ocean Pines resident and president of the Worcester County Commissioners.
Republican party’s monthly meeting
The Accomack Republican Party invites the public to attend its onthly meeting on Sept 18, beginning at 7 p.m. at the Sage Diner in Onley.
For more information, contact Chairman Sam Sellard at 757-7098252.
ated by Roger Holland’s resignation. Finlayson was not interested in running for an elected term.
The candidates for a three-year term include David Felt, the current Board alternate director; Rosemary Hall, a former director seeking a comeback; and newcomer Richard Painter.
Hall and Painter are also running for the one-year alternate seat, along with George Guthridge and David Kieffer. The latter also is a former director.
Ballots and candidate biographical information were scheduled to be mailed to all members on Aug. 25.
To avoid some of the confusion that occurred during last year’s election season among some CCGYC members, the Property Management Team decided not to send out proxies to CCGYC with the ballots and biographical information this year.
Instead, proxies will be mailed with the dues statement that will be mailed to members in early September.
That is the only change in the way this year’s election will be conducted, according to CCGYC secretary and director Pat Pelino.
Ballots will be collected and counted by the association’s accounting firm, Rosen, Saperstein and Friedlander, with results announced during the annual meeting.
A candidate’s forum is scheduled for Tuesday, Aug. 29, at 4 p.m. in the banquet room of the Marina Club.
Yet to be determined is whether CCG Note, the Cove’s declarant/ developer, will cast ballots in this year’s election.
It will depend on whether a working group of Operating Committee members and senior members of the Property Management
LETTERS
It’s time to take off the gloves and go bare-knuckles. I have had it. Comparing the Town of Chincoteague to Captain’s Cove?
You forgot some important points, Mark.
First, Chincoteague has fair elections. The Mayor doesn’t get three votes for each property he owns. Chincoteague has a true appeals process for building and zoning issues. Chincoteague has a residency requirement for their Town Manager. Chincoteague hired a highly experienced engineer as their Town Manager.
True, they don’t have pools, but they have a huge harbor, several real parks, five boat ramps, and an entire network of state roads for which they receive a lot of VDOT money. For a house comparable to my house on Rudder Court, Chincoteague town taxes would be less than $1,000.
Mark wants you to believe that Captain’s Cove is managed like a town. He failed to mention that in a town, the man who owns 100 lots only gets to vote ONCE. Let’s try that in the next Cove election. Each owner gets one vote regardless of how many lots he owns.
Chuck Ward, Captain’s Cove
Mark Majerus’s reply to Chuck Ward:
You seemed to have missed the point of the discussion.
The topic was the Association’s staffing and how many elements of it are similar to a town. Chincoteague is a great comparison, due to its proximity to the Cove. It has the same swell in population in the summer season, and it’s about twice the full-time
Team, formed to offer advice to CCG Note on how to allocate CCG Note votes in the election, actually comes up with a slate of candidates it can recommend.
“If the working group doesn’t come up with candidates it recommends, then I would think that CCG Note would probably decide not to vote the properties that they own through Note,” CCGYC Director Tim Hearn said recently.
That would mean that 1,200 or so lots controlled by the developer would not be a factor in the election, leaving Class A members as the only participants and thus able to affect the outcome of the vote, something that hasn’t occurred in Captain’s Cove for more than ten years.
The Cove Currents has been told by an informed source that the working group is leaning against making such a recommendation.
residential population.
We have a Board of Directors, they have a Town Council. We have a Senior General Manager, they have a Town Administrator. We have a security team, they have a police force. We have a small marina and boat ramp, they have a commercial harbor and several ramps. We have 27 miles of road that we maintain without any outside support. The town gets federal, state, county and local funding from taxes, grants, etc. to maintain roads and other public projects.
We have an Environmental Control Committee, they have a Building Department. We have a Controller, they have a Finance Director. We have an accounting department and they have a business office. We also have a restaurant, grill, three pools and a nine-hole golf course that must be staffed, maintained and operated.
This staffing comparison was the point. Although we are not an incorporated town, we have numerous staffing similarities and responsibilities. And we have half the number of full-time staff as the town. This was not about elections or taxes.
Obviously, a property owners association has its own governing documents. For the past 50 years, our documents have granted the Declarant (developer) a 3-to-1 vote option. This was modified in the 2012 Settlement agreement such that the 3-to1 may only be used when the Association is operating at a loss.
This makes sense as the Declarant has invested millions of dollars in the development and needs to be able to exercise some control over events when necessary.
September 2023 Ocean Pines PROGRESS 63 CAPTAIN’S COVE CURRENTS
64 Ocean Pines PROGRESS September 2023 CAPTAIN’S COVE CURRENTS