January 2016 ocean pines progress by Ocean Pines Progress

www.issuu.com/oceanpinesprogress

January 2016

443-359-7527 Thompson proposes $22 assessment increase in budget

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

Thompson unveils new draft of capital improvement plan Proposed spending would approach $30 million over ten years, but a proposed new administration/public safety building would send the price tag well beyond that By TOM STAUSS Publisher new iteration of a ten-year capital improvement plan prepared by General Manager Bob Thompson was distributed to the Board of Directors Jan. 4, the same day he gave out copies of his draft budget for 2016-17. While the proposed $13.7 million budget for the new fiscal year beginning May 1 is noteworthy because it calls for a $22 increase in the lot assessment, in some respects it is overshadowed by his new draft CIP because of its audacious vision of capital projects that total about $29.5 million in estimated cost from 2016 through 2026. Perhaps the most stunning proposal contained within the draft CIP is for a new administration/public safety building, to include new facilities for the Ocean Pines Police Department, a new Southside firehouse, a command center for emergency coordination, along with new offices for the OPA administration. Thompson envisions the OPA’s two-acre site on Route 589, in front of the post office and library and adjacent to Taylor Bank, as the site of this new building. Another component of Thompson’s vision: The existing Administration building in White Horse Park would be configured into larger and smaller meeting rooms once the administration relocates to Route 589. The Community Center’s Assateague Room would be converted into a fitness center, with men and women’s locker rooms, with show-

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ers, replacing the Community’s Center’s kitchen and a bathroom. Thompson also envisions moving the Pine’eer Craft Clubhouse in White Horse Park to the Community Center’s Marlin Room. In short, the Community Center would become a center of active recreation. The draft CIP’s ten-year financial worksheet contains no cost estimate for this new administration/public safety complex, but it would likely send the total cost of Thompson’s proposed spending plan well in excess of $30 million within the next ten years should OPA policy-makers support incorporating it into the CIP. The draft CIP, as well as Thompson’s proposed capital project for 2016-17, includes $75,000 for police center planning. That $75,000 could be an initial step in moving toward this concept if Thompson can convince at least four directors that his idea has merit. Thompson is using his draft CIP to push for his “community fitness center” idea. He’s attached a $350,000 cost estimate to it in fiscal year 2019. There are no cost estimates for renovating the existing Administration building, although Thompson suggests it could be done mostly with in-house Public Works Department labor. The draft CIP updates a version of it last completed by Thompson in November of 2014, in which roughly $18 million in potential capital spending was identified over a ten-year period. That version was never officially approved by the Board of Directors, was never the

subject of a town meeting, or even addressed in any meaningful way by the directors. The last time an OPA board took an official vote on a version of a CIP was June of 2012. In his 2014-15 term as OPA president, Dave Stevens attempted to jumpstart a CIP process that he hoped would lead to a revised CIP, but it fell well short of the goal of a completed CIP draft. Thompson was explicitly excluded from day-to-day involvement in the Stevens-led process, with facilities manager Jerry Aveta interacting with Stevens and Thompson supposedly updated by Aveta on a regular basis. With the 2015 board election resulting in a factional shift on the board and Stevens out as president this past August, there was no indication that Thompson or anyone else was continuing work on a new CIP draft. The emphasis instead seemed to be on a new reserve study. The board chose Design Management Associates to assess the condition of OPA assets including roads, bulkheads, the golf course and other OPA assets, including the Country Club and Beach Club. In early 2016, DMA is supposed to deliver what’s called a capital reserve management system to the OPA as part of its contract. It’s a computerized interactive program that, once operational, will give the OPA unprecedented facility component replacement projections, allow the OPA to establish priorities for To Page 16

General Manager Bob Thompson is proposing a $13.7 million budget for fiscal year 2016-17, including a $22 increase in the base lot assessment but no proposed increases in amenity fees. He presented the Board of Directors with copies of the draft budget book in a short meeting at the Country Club upper level on Jan. 4. The budget, including the proposed assessment increase, is far from a done deal. ~ Page 18

Thompson proposes Community Center design changes Much of the “meat” in General Manager Bob Thompson’s latest iteration of a capital improvement plan for Ocean Pines concerns his ideas for changes in the Community Center, relocation of the Pine’eer Craft shop, and perhaps the most ambitious proposal of all: a new administration/public safety building to be constructed on the Ocean Pines Association’s two-acre parcel on Route 589 in front of the library and post office, adjacent to Taylor Bank. Although all of these proposals are a long way from seeing the light of day, Thompson is using his draft CIP as a way of promoting his vision for Ocean Pines. ~ Page 15

Reassessments show Pines property values begin slow climb Property owners in Ocean Pines are among those in northern Worcester County who are finally seeing an increase in the assessed value of their lots. Overall, Worcester County experienced a moderate increase, at 9.4 percent, in the assessed value of residential and commercial properties as part of a tri-annual reassessment by the state, according to state-wide assessment data released on Dec. 29, 2015. ~ Page 9

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OCEAN PINES BRIEFS LU says OPA needs to replace 2009 golf course cart fleet before next season replacing the existing fleet with tradeins at $297,157.50. Bids could exceed or be less than the estimated amount. The company says the new carts are best delivered by April 1. “As the batteries age we are uncertain of the serviceability of the fleet in the spring,” LU notes. “Performance of carts after a winter period at the end of the battery life span is often disappointing and unsatisfactory.” LU says that “we suspect that at least some of the carts will perform but cannot guarantee that fleet performance will meet golf count needs in April.” The revelation that carts need to be replaced under a tight turn-around will no doubt be an issue during pending budget review meetings in January and February. There has been no discussion of the age or condition of the cart fleet or the need to replace it at the board level. In the draft capital budget that is part of General Manager Bob Thompson’s proposed budget for next year, golf cart replacement is not included as a proposed expenditure under golf or golf pro shop operations.

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uried on page 31 of Landscapes Unlimited’s business plan for Ocean Pines golf course operations in 2016-17 is a recommendation that could seriously roil discussions between the Ocean Pines Association and Ocean Pines’ golf course management company during the January-February budget review season. LU is urging the OPA to replace its 2009 model year golf cart fleet because “the batteries will not perform another year.” According to LU, “various cosmetic features and mechanical issues of the carts are compromised by use throughout six years of service.” Rather than investing in new batteries for the fleet, LU is recommending that the OPA replace the fleet of 75 Yamaha carts dating to 2009 with new 2016 carts. According to LU, the current fleet has a trade-in value of $750 each, or a total of $56,250. LU is saying that a new fleet equipped with heavy-duty batteries should last five years, citing the company’s experience with carts at its Renditions course near Annapolis. The company is estimating the cost of

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OCEAN PINES BRIEFS Stevens points out Board inconsistency

Director Dave Stevens didn’t exactly take issue with the minutes from a previous meeting during the Ocean Pines Association’s Board of Directors Dec. 17 meeting, but, in a roundabout way, he pointed out an inconsistency between a board vote at it November meeting and the action actually being taken on that vote. The issue was a meeting between the full OPA board of directors and Landscapes Unlimited, the company retained to manager the Ocean Pines Golf Course. After Director Carol Jacobs offered

motion to approve the minutes of the board’s November meeting, Stevens called for discussion on the motion. He read a section under “old business” that said Stevens moved that at the earliest convenience a special meeting of entire board and Landscapes Unlimited be held so the board could ask question of the golf management company. The minutes state that OPA President Pat Renaud said he is working on a report about LU’s plans for the golf course and after that is complete, if it is still needed he will call a special meeting. The minutes state that OPA General Manager Bob Thompson reminded board members that they will have the opportunity during the budget process to ask questions of LU. Stevens disagreed.

The minutes state that his motion passed in a 5-2 vote, with Stevens, Jack Collins, Tom Herrick, Tom Terry and Renaud in favor and two opposed, Jacobs and Bill Cordwell. “I want to make sure that’s correct in everybody’s mind,” Stevens said. He added that instead of following that motion, his understanding is that the meeting will now be scheduled as part of the budget discussion as suggested by Thompson. Cordwell called for a point of order under Roberts Rule of Order and said the discussion was inappropriate. “If the minutes are correct then I don’t know why we’re discussing something that’s not in the minutes.” Stevens said the reason he brought

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up the issues was because he wanted to make sure that the full board agrees that the minutes are correct. “That’s everybody’s recollection of what happened?” he asked. Directors responded in the affirmative. “That’s my point,” Stevens said. The board voted unanimously to approve the minutes of the November meeting.

OPA president makes committee appointments

During the November and December meetings, the Ocean Pines Association President Pat Renaud, with the concurrence of the Board of Directors, made appointments to several advisory committees. First term appointments were Annemarie Wolfsheimer to the Aquatics Advisory Committee, D. Gayle Lynch to the Clubs Advisory Committee and Mike Evans to the Comprehensive Plan Committee. Bob O’Malley was appointed for a second term to the Racquet Sports Advisory Committee. Doug Parks was selected as chairman of the Bylaws and Resolutions Committee.

OPA reviews draft of reserve study

The first draft of a reserve study of the Ocean Pines Association’s facilities and its ability to fund their maintenance from consultants Design Management Associates Inc. of Richmond, Va. was missing some items, according to General Manager Bob Thompson. During his Dec. 17 report to the Board of Directors he said he held a Dec. 10 conference call with DMA to review the preliminary schedule of components and expenditure summary for all items included in the first draft of the reserve study. “We were able to identify some missing items,” he said, adding that his team is reviewing the summary information provided by DMA for any additional items that may have been overlooked. A draft report from the consultants was due to the OPA by the end of 2015. The OPA hired DMA to perform an interactive reserve analysis that will detail how long the components of various facilities will last, where in that life cycle they are and the cost to replace them. The consultants first looked at a schedule of components and expenditures for bulkheads, roads and bridges. They then were to move on to studying the OPA’s other facilities. The OPA is pursuing with a threepronged approach to planning for improvements in Ocean Pines that includes developing a reserve study, a comprehensive plan and finally a capital improvement plan. The reserve study, essentially a snapshot of facility conditions, will give the CIP critical information while the comprehensive plan will direct the CIP in the long term. The CIP itself is a more operationally based document that will be used day-to-day

4 Ocean Pines PROGRESS

OCEAN PINES

January 2016 Ocean Pines PROGRESS

OPA solicits Sports Core pool renovation proposals

Panel supports tracking of Beach Club pool use

Although Ocean Pines’ aquatics department is well ahead of budget, and is on a course for a predicted operating deficit of $54,000 in the current fiscal year, a portion of the improved performance is an accounting change, the transfer of roughly $48,000 in Beach Club parking pass revenue to the aquatics department. It could be the best operating result for Aquatics since the Sports Core pool was enclosed in 2007. The accounting change was adopted for the 2015-16 fiscal year and justified on the fact that the Beach Club parking passes that cost users $175 to purchase include four Beach Club pool passes that can be used for daily access to the pool at the popular oceanfront amenity. The $48,000 transfer was based on the estimated cost of operating the Beach Club

21 ft

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Existing Pool Existing Deck AreaExisting Pool Free Swim Area Diving Area

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From Page 4 to make facility improvements. On Jan. 4, Thompson distributed a draft of a CIP to OPA board members.

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Proposed Pool Expansion Area

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Existing Deck Area

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referrals and references from previous mance; and responsiveness to questions clients; overall completion, legibility and requests during the review process. Bidders are asked to mail one hard and organization and responsiveness with regard to cost, schedule and perfor- 7

pool during the summer months. For some time, the OPA’s Aquatics Advisory Committee has been discussing better ways of determining the transfer of parking pass revenue to the Aquatics Department, based on actual use of the Beach Club pool passes during the Memorial Day through Labor summer season. Some committee members and Aquatics Department staffers believe the department is shortchanged by a relatively modest $48,000 transfer of revenue. Because of information technology deficiencies, so far there has been no efficient way of tracking Beach Club pool pass usage. But that may be changing, according to OPA General Manager Bob Thompson. He informed members of the Aquatics Advisory Committee in early December that he and Aquatics Director Colby Phillips have been discussing ways to track Beach Club pool pass usage. He said one way would be manual record-keeping by the pool staff next summer, but the much better way would be to electronically track the number of card swipes at the pool from Beach Club only pool passes. Such tracking has been used for other types of membership

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OCEAN PINES BRIEFS

Existing Deck Area

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geo-thermal heating as an alternative to propane or natural gas. The RFP indicates there is no guarantee that a contract will be awarded for the project. Contractors may submit proposals for some or all of the objectives outlined in the RFP. Proposals will be reviewed by a project review committee that will most likely consist of OPA General Manager Bob Thompson, OPA Facilities Director Jerry Aveta, OPA Aquatics Director Colby Phillips, and Public Works Director Eddie Wells. OPA President Pat Renaud, the board liaison to the Aquatics Advisory Committee, could also play a role in reviewing proposals. With the RFP issued on Dec. 28, a project walk-through was scheduled for the Sports Core pool at 9 a.m. on Friday, Jan. 8. Proposals are due to the OPA on Feb. 1, with a contract award expected March 1, a timeline that implies board approval in February. The RFP anticipates start of the project on July 10 and completion by Sept. 10. The Sports Core facility includes a heated T-shaped swimming pool, with a length of 75 feet and width of 36 feet. Total pool volume is 161,334 gallons with a depth varying from 3.5 to 12.5 feet; the pool perimeter is 292 feet. There are 12 eight-inch U-3 skimmers positioned around the pool, with several of them no longer functioning. The RFP asks that proposals include cost for materials, equipment and labor identified separately for each project component and a total project cost. Proposals will be judged on the quality of previous work and depth of experience;

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92 ft

he Ocean Pines Association in late ecember issued a request for proposals to renovate the Sports Core indoor pool, a project that, if fully funded by the Board of Directors, could close the pool for up to two months this summer. Bids are due to the OPA on Feb. 1, with a contract award expected March 1, a timeline that implies board approval in February. Plans are to begin the project July 10 with completion by Sept. 10. The work is anticipated to occur when the Ocean Pines’ four outdoor pools are open, thus minimizing the inconvenience to Ocean Pines’ aquatics members and other pool users. The summer pool closure was a recommendation of the Aquatics Advisory Committee, which has been advocating pool resurfacing and other improvements at the pool for years. Contractors are being asked to submit prices for four separate project components, all or some of which may be approved by the Board of Directors. According to the RFP, the project includes a pool stepped entryway expansion and other improvements, such as replacement of 12 eight-inch skimmers, installation of bull-nose safety coping stone around the pool perimeter, and Diamond Brite resurfacing; deck improvements, including a new rubber chip or similar surface to cover deteriorated concrete decking; pool technology improvements (ultra-violet disinfecting equipment and salt-generated chlorination equipment); and pool operational cost-saving options, such as solar or

cards at the pool, but Thompson said he’s been looking to upgrade the Beach Club pool passes so they can be tracked in the same way electronically. That would enable Phillips and her staff as well as the OPA membership department to assemble detailed information about usage at the Beach Club pool, including precise breakdowns of the number of swipes from the Beach Club pool only passes relative to the other kinds of cards commonly used at the amenity. From those detailed statistics it will be possible to determine a more accurate allocation of revenue from parking passes to the Aquatics Department, Thompson told the committee. Committee members were supportive of the proposed upgrades to the tracking system at the Beach Club pool. For 2016-17 year, Thompson is unlikely to propose any significant increase in the $48,000 allocation in place for this year.

Beginner pickleball clinics offered in Ocean Pines

Ocean Pines will be offering two-ses-

sion clinics this winter for beginners and advanced beginners interested in learning how to play pickleball, the fastest growing sport in America. Pickleball, which combines elements of tennis, badminton and Ping-Pong, is played with a wiffle ball and wooden paddles on a surface half the size of a tennis court. The game is family-friendly and accessible to almost everyone, regardless of age or athletic ability. The first of three scheduled Friday clinics will be held on Jan. 15 and 22. Other clinic dates are Feb. 19 and 26 and March 18 and 25. All clinics will be held from 2:30-3:30 p.m. at the Ocean Pines Community Center, located at 235 Ocean Parkway in Ocean Pines. The cost is for each clinic is $10 per person, and preregistration is required by calling the Ocean Pines Recreation and Parks Department at 410-641-7052. Each clinic will be limited to only 12 players. Ocean Pines offers drop-in indoor pickleball at the community center now through May 31. Drop-in times are 1:305:30 p.m. on Sundays, 7-9 p.m. on Mondays and 1:30-4:30 pm on Tuesdays and Thursdays. The cost is $5 per person.

6 Ocean Pines PROGRESS Sports Core pool

OOCEAN PINES

January 2016

From Page 5 copy of their proposals to Thompson and to email an electronic version to Aveta. In the area of pool expansion and improvements, the project calls for excavation, removal, disposal and replacement of the 12 deteriorated skimmers, with 12 new skimmers and piping to the existing influent line; installation of 12inch bull-nose safety-edge coping stones along the exterior surface of the pool; installation of a single row of waterline tile band along the interior wall of the pool, below the bull-nose coping; and installation of depth markers and “no diving” tiles within the interior tile band. The reconditioning of the pool surface, according to the RFP, includes the cutting-in and chipping of all racing lane lines and waterline tiles; preparation of existing pool surfaces for all interior pool fittings, lights, lane line anchors and pool rail anchors; acid-washing of all pool surfaces; application of a single bond coat to adhere to the old, existing Marblite surface; plastering the entire surface with a Diamond-Brite finish coat; and refilling the pool when the work is complete. The RFP calls for the contractor to install two 10 horse power three-phase commercial grade pumps in the pool pump room, reportedly already pur-

chased or on order by the OPA. Another component of the proposed project includes expansion of the pool by removing decking near the existing pool slide and replacing it with a stepped entry into the existing four-foot area of the pool. The new entryway would measure 18 by 36 feet for a total enlargement of 648 square feet. The sliding board would be removed, with a new one relocated elsewhere in the pool area. Additional improvements called for in the RFP include installation of a safety rail between the expanded pool area and existing pool diving area. The enlarged entry area will allow for a more defined and dedicated area for swim lessons, which now occur in the main pool area used by recreational and lap swimmers. The pool expansion was initially conceived by Phillips, the OPA aquatics director, and has the backing of the Aquatics Advisory Committee. Decking improvements include the proposed resurfacing of roughly 5,373 square feet in two sections. One section is the 34 by 34 foot entry area accessed from the bathhouse reception area, roughly 1,156 in size. The other section is the area around the perimeter of the pool. The RFP asks for separate costs for each section. The RFP calls for a rubber chip or similar product, such as the Rubaroc installed last year at the

Mumford’s Landing pool, as one possible resurfacing materia, to be troweled over the existing concrete. The troweling option is seen as the optimum way of dealing with pooling of water splashed on the decking caused by uneven concrete surfaces and poor drainage. The RFP calls for transitions to the pool area and side doors to assure proper drainage to the existing grate system in the existing decking and contouring to provide drainage to the outside of the facility, with the aim of preventing pool of spilled or splashed pool water. Contractors may also submit proposals for decking materials including granule or pebble surfaces, such as Aqua-Flex, or a reinforced PVD membrane rolled material such as Renosys. The RFP is calling for proposals to equip the pump room with an ultra-violet light system and a saltwater chlorination system that would work together to improve water and air quality at the Sports Core pool. According to the RFP, the proposed UV system would be designed to “treat the passing water flow with a high intensity germicidal ultraviolet ray that destroys multiple waterborne pathogens, including algae, bacteria, cysts, and viruses.” The UV sanitizing lamp would be housed in an industrial graphite hous-

ing or equivalent optimized for high flow rates. The device would release a highly concentrated electromagnetic energy that “destroys organic matter and eliminates the formation of dangerous chlorine by-products called chloramines that commonly lead to red, stinging eyes, skin irritations, asthma and allergies. This energy penetrates the cell walls of bacteria, viruses, algae, cysts and all pathogens.” According to the RFP, UV cannot leave or escape the sterilization chamber, so “UV never enters the swimming pool.” UV systems do not completely eliminate the need for chlorine as a disinfectant, but salt-generated chlorine can be a lower cost alternative to the commercial chlorine used in most pools. According to the RFP, “salt water chlorination is a process that uses dissolved salt (2,500 – 6000 ppm) as a store for the chlorination system. The chlorine generator (also known as a salt cell, salt generator or salt chlorinator) uses electrolysis in the presence of dissolved salt (NaCl) to produce hypochlorous acid (HClO) and sodium hypochlorite (NaClO), which are the sanitizing agents already commonly used in swimming pools. “As such a saltwater pool is not acTo Page 8

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Sports Core pool From Page 6 tually chlorine free. It simply utilizes a chlorine generator,” says the RFP. “Commercial saltwater pools utilize a very small level of common table salt (NaCl) to maintain their sparkling clarity. When the salt molecules in the water pass through the salt water chlorinator, the water is sanitized removing chloramine molecules that cause irritation and smell.” There is no salt-water taste to water that is chlorinated using this type of system. Finally, the RFP calls on contractors to submit proposals for alternatives to propane as a way of heating the pool, with the aim of producing operational cost savings. “The OPA would like to “explore any potential cost savings available by using alternative, less expensive supplemental energy sources to the current pool water heating system.” Alternatives could include solar power or geothermal energy. According to the RFP, proposed solar installations should “include a complete design to permit integration into the existing pumping configuration complete with pool water temperature monitoring and controls to optimize cost savings. Cost savings should be estimated with

suggested design detailing appropriate payback calculations based on current energy usages that will be provided by OPA. “Additionally, because land use is a premium around the current facility, proposals should consider a roof mounted collector array. Current roof structure is not adequate to support an array, so proposals should include alternate roof mounted collection array as part of a proposed parking shelter,” according to the RFP. “Costs estimates should include costs of the proposed installed solar supplement system as well as any construction costs in providing a roof mounted structure.” The RFP says that geothermal proposals “should include locating the optimal geothermal ground heat source near the facility. This source should be utilized with a Ground Source Heat Pump (GSHP) to transfer heat collected from the ground source into the existing pool water circulation system. “Proposals should include a complete design to permit integration into the existing pumping configuration complete with pool water temperature monitoring and controls to optimize cost savings. Cost savings should be estimated with suggested design detailing appropriate payback calculations based on current energy usages,” according to the RFP.

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Pines property values begin slow climb upward in annual state reassessment Property tax assessment notices reﬂect change in real estate market since 2013 By ROTA L. KNOTT Editor roperty owners in Ocean Pines are among those in northern Worcester County who are finally seeing an increase in the assessed value of their lots. Overall, Worcester County experienced a moderate increase, at 9.4 percent, in the assessed value of residential and commercial properties as part of a tri-annual reassessment by the state, according to state-wide assessment data released on Dec. 29, 2015. That 9.4 percent increase was recorded during the 2015 property reassessment, which included Ocean Pines and Berlin, and will be phased in over the next three years. By comparison, the 2014 reassessment, which included Ocean City, saw property assessments in the county increase by just 2.2 percent. Among the 24 Maryland counties, Worcester County placed seventh with its increase in its average annual reassessments. The county’s increase in assessed values fell just shy of the state-

wide average of just 10.9 percent. It fell behind Anne Arundel, Baltimore, Baltimore County, Charles, Montgomery and Prince George’s counties, which each had increases of more than 10 percent. A trio of other Eastern Shore counties, Somerset, Dorchester and Kent, continued to see small decreased in the value of the reassessed properties. More than 82.75 percent of all residential properties and 74.55 percent of all commercial properties in Worcester County that were included in the 2015 reassessment increased in value. Statewide 76.93 percent of residential properties and 70.51 percent of commercial properties included in the reassessment had increasing values. The full cash value change in the assessments in Worcester County before the phase-in for the year is $4.5 billion, up from $4.16 billion as of Jan. 1, 2013. The full cash value of the assessments statewide is $236.1 billion, up from $212.9 billion for the year beginning Jan. 1, 2013. The residential base of the properties

reassessed in Worcester County has increased by 9.9 percent. It increased to $3.43 billion as of Jan. 1, 2015 from $ 3.12 billion as of Jan. 1, 2013. Residential property values increased across the state. Statewide the total residential assessable base of properties reassessed in this cycle has increased by 9.5 percent to $185.9 billion from $169.7 billion. Commercial properties in the county that were reassessed had an increase in value of 7.9 percent. The commercial assessable rose from $1.04 billion as of Jan. 1, 2013 to $1.12 billion as of Jan. 1, 2015. Statewide the commercial base of $43.2 billion grew by 16.1 percent to $50.1 billion. During this cycle the Maryland Department of Assessments and Taxation reassessed one-third of more than two million real property accounts in the state. Assessment notices were mailed to 688,440 property owners across the state and reflect other changes in real estate values for residential properties in across Maryland. All of the properties included in this group of properties was

last valued in 2013. In Maryland, properties are reassessed by law once every three years. Properties are required to be assessed at their current market value so that all property owners pay only their fair share of local property taxes. The Department of Assessments and Taxation determines the values for both residential and commercial properties. The new assessments are based on the evaluation of 55,572 sales, which occurred in the reassessment area during the last three years, with 17,429 of those sales occurring in 2015. Within the property group, 70 percent of residential properties saw an increase with an average increase of 9.5 percent, and commercial property values increased by 16.1 percent. Any increase in property value is phased-in equally over the subsequent three years. Any decrease in property value is fully implemented in the first tax year and remains at the reduced assessment for a full three year cycle. Residential property owners, who apply and are eligible, can receive a Homestead Tax Credit. The Homestead Tax Credit states that all taxable assessments cannot increase by more than 10 percent per year. The purpose of the application is to certify a homeowner’s principal residence and to ensure the property owner’s continued eligibility for this credit. The annual assessment To Page 10

10 Ocean Pines PROGRESS

OCEAN PINES

January 2016

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Members of the Ocean Pines Hammerheads swim team joined Coach Brooks Ensor in delivering over 60 toys to the Emergency Department at Atlantic General Hospital in Berlin to be given to children that might be spending their holiday there. Pictured are Ocean Pines swim team members gathered around the box of toys collected and donated to the hospital.

Reassessments From Page 9 cap applies only to owner-occupied properties. In Worcester County that limit is 3 percent. Only Anne Arundel, Prince George’s and Talbot counties have lower Homestead Tax Credit limits. The reduced taxable assessment lessens the impact of past rising property values and assessments for homeowner occupied properties that experienced increases in prior years. The assessment only partially determines a property owner’s tax bill. Ultimately, next July’s tax bill will be calculated with the tax rates which local governments will set in the spring. As part of the budgetary process, the property tax rates are established by the revenue requirements of each local government. Local governments may offset assessment increases by lowering their tax rates to the “constant yield” tax rate level. The constant yield tax rate provides local governments with a stable level of property taxes from one year to the next. The increase in assessments could

translate into more property tax revenue for Worcester County for fiscal year 2016-2017. However, if the county maintains the current property tax rate of $.835 it would mean the owners of those properties that experienced na increase in value will pay more in property taxes during the next few years. For example, a home that had been assessed at a $200,000 value would have had a $1,670 tax bill. If the assessed value increased by $10,000 the tax bill would increase to $1,753.50. Anyone who received a reassessment notice and feels that the total new market value on their notice does not accurately reflect the market value of their property, can file an appeal with the State Department of Assessments and Taxation. The state offers an online appeal form at http://taxappeals.resiusa.org/. All property assessment appeals must be filed with the state by Feb. 11. Once an appeal is filed, the state will schedule either a personal or telephone hearing on the matter. Appeals can also be made in writing, eliminating the need for a hearing.

January 2016Ocean Pines PROGRESS 11

By ROTA L. KNOTT Contributing Writer ollowing extensive negotiations with the utility company, the Ocean Pines Association in December reached an agreement with Sandpiper Energy that provides funding of nearly $400,000 to the homeowners association in exchange for access to its property, resources and staff in order to facilitate the conversion from propane to natural gas service. The deal, which was approved in a 5-2 vote of the board, does not include payment of a franchise fee to the OPA, at least not anytime soon. The agreement allows for the future imposition of a franchise fee should other communities in Sandpiper’s area of operation obtain approval for such a fee from the Maryland Public Service Commission. That provision was enough to cause one OPA director, Tom Herrick, to vote against the agreement. Herrick and Director Dave Stevens also voted against the agreement because a final draft of it was not available when the directors voted for it in executive session prior to the regular monthly meeting of the board Dec. 17. [See separate article in this edition of the Progress for details.] Association President Pat Renaud announced during the Dec. 17 meeting that the Board of Directors had approved the agreement with Sandpiper and General Manager Bob Thompson provided an overview of the arrangement. “That’s a pretty exciting thing to be able to announce today,” he told the audience. Sandpiper will be paying fees for the right-of-ways, the land lease and other services that OPA will provide. The total value of the deal to the OPA is $394,750 plus attorney’s fees, Thompson said. The payments will begin 30 days after final execution of the contract by the end of December, and work by Sandpiper will commence within 90 days of that date. He noted that Sandpiper agreed to cover all of the OPA’s legal and attorney’s fees through the final review of contract documents. “We effectively established a relationship with them and covered our cost to do so,” he said. Thompson worked with Sandpiper Energy President Steve Thompson during the past six months to negotiate a mutually acceptable settlement package. The arrangement with Sandpiper, a subsidiary of Chesapeake Utilities Corporation, allows the company to offer an alternative solution for gas service to the residents of Ocean Pines, but for the privilege it will have to pay the OPA. “Our primary goal through the process, when we were working through this, was to reach a fair, balanced comprehensive settlement package that met both short term and long term issues that were raised as it pertains to natural gas,” Thompson said. That was achieved, he said, and the end result is that both parties “brought a number of different pieces to the table to create an overarching settlement

OPA board inks natural gas agreement with Sandpiper Pact will put almost $400,000 into association coffers agreement that includes three different elements: a ground lease, services agreement and a deed of easement.” The settlement provides Sandpiper with a perpetual, non-exclusive and uninterrupted easement and right-ofway for the purpose of the installation, operation and maintenance of the gas distribution system. Also included in the settlement are a land-lease agreement for a compressed natural gas injection facility and a services agreement where

OPA will provide certain communication and coordination services to Sandpiper in support of the conversion process. The ground lease provides Sandpiper with a site on OPA property at the public works yard where it can inject compressed natural gas or propane into the underground piped distribution system to provide additional gas supply when needed, Thompson said. He said the public works yard was selected as the most suitable site because it is a secure

area that is not accessible by the public. “When they do maintenance they need a spot to connect to their pipeline and force product into the pipeline,” he said. Additionally the company will be able to temporarily store propane tanks at the site for use as it is completing the process of converting customers in Ocean Pines. It also needed a place to store emergency repair equipment, the “things they might need in case of emergency and can have quick access to right in the community,” Thompson said, adding that will allow Sandpiper to execute the conversion as quickly as possible and keep the community safe in the future. “We thought that was appropriate and worked to everyone’s advantage.”

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12 Ocean Pines PROGRESS

OCEAN PINES

January 2016

Stevens, Herrick vote against natural gas agreement Herrick cites possibility of future franchise fee as reason he opposed final Sandpiper pact By TOM STAUSS Publisher he two Ocean Pines Association directors who voted against the new natural gas agreement with Sandpiper Energy were Dave Stevens and Tom Herrick, the Progress has learned. The other five directors – OPA President Pat Renaud, Cheryl Jacobs, Tom Terry, Bill Cordwell and Jack Col-

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From Page 11 For the privilege of accessing the OPA’s property in the public works yard, Sandpiper will compensate the association with a $1,350 monthly fee for a tenyear term. The total value is $162,000. The second agreement between the two parties is a service agreement that outlines the services the OPA will provide for Sandpiper and the compensation that it will receive in return. Under that part of the agreement the OPA will provide access to the association website, newsletter and marketing staff for purposes of providing direct communication to Ocean Pines residents. Thompson said that when there is 11029 “a bigRacetrack change” Rd. like a switch in utilities 1 1029MD Racetrack Berlin, 21811 companies, one ofRd. the most challenging Berlin, is MDto21811 things ensure that the members understand and know what’s going on with the process. He said it is important to engage them proactively in activities like creating a page on the OPA website “where they can go on and push information out to members.” The OPA will also assist Sandpiper in coordinating the process of converting customers from propane to natural gas by providing space for the utility com-

lins – voted in favor of the agreement. Stevens voted against the agreement because General Manager Bob Thompson had not presented a final version of it before asking the board, in executive session in December, to vote for it. Herrick was opposed to it because the agreement’s fine print allows for the possibility of a future franchise fee to be imposed on Sandpiper customers in the event that any other community served by Sandpiper is able to obtain a franchise fee that it is approved by the Maryland Public Service Commission. Herrick told his colleagues that he opTo Page14 pany to hold community meetings. “We built that into this agreement,” he said. For those services the OPA will receive a financial benefit of $500 monthly for a total of $30,000 over a five-year period. The final piece of the three-part agreement is the deed of easement, which give Sandpiper a perpetual, non-exclusive easement across, in and under all roads and commons areas located within Ocean Pines. Thompson said those are in areas where there are existing pipelines in roadways and common areas. The OPA will receive a total of PRSRTupSTD $134,000 in payments front for the deed of easements. The OPA STD will be PRSRT USPOSTAGE paid $41,000 for the easement access USPOSTAGE on PAID Ocean Pines roads and another $93,000 PAID MAILMOVERS for the common area easements. ThompMAILMOVERS son said the value of the easements was determined by a third-party appraiser. The next step in the contract process is for the two parties to finalize the strategy for implementation, which will include public meetings planned for the first quarter of this year to discuss the conversion process for the Ocean Pines residents and OPA facilities. It is anticipated that the process will begin within the next 90 days.

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14 Ocean Pines PROGRESS January 2016 Sandpiper opposition From Page 12 posed the agreement because it retains the possibility that Sandpiper could impose a franchise fee on its customers in Ocean Pines at some future date. Director Jack Collins said he agreed with Herrick’s opposition to the possibility of a franchise fee but voted for the agreement anyway because he believes OPA members and Sandpiper customers are tired of waiting for natural gas conversion. But he said he would oppose any attempt to revisit the franchise fee issue in the unlikely event a future board decides it can ask for one under the new natural gas agreement. Collins said another issue that the directors will have to resolve is what to do with the one-time fees that will flow to the OPA as part of the agreement with Sandpiper. Collins told the Progress in an early January telephone interview that he is favor of allocating any proceeds received from the agreement to the OPA’s road reserve. He said he would raise the issue with his colleagues in future board meetings. He said he favor allocating the money to the roads reserve because he expects natural gas conversion will at some point involve damage to Ocean Pines roads.

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Collins said another reason he favored the agreement is that, according to comments from Thompson to the board, all appliance conversion costs related to natural gas will be absorbed by Sandpiper rather than individual customers as part of the agreement. “That covers stoves, water heaters, furnaces, even fireplaces,” Collins said. In an email to the Progress, Herrick referred to what he called a “Most Favored Nation” clause in the Sandpiper contract requested by OPA negotiators “which does, in fact, open the door to a possible franchise fee in the future. While campaigning for a position on the Ocean Pines Board of Directors, I explicitly expressed my stance and reasons why I was against such a revenue enhancement fee being imposed on our membership. I could not go back on my promise to those voters who agreed with

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statements were true. I personally felt uncomfortable conducting business in this manner and decided to vote no,” he concluded. Stevens in an email to the Progress said that the principal reason he voted against the contract is that he had “not seen the final version of the agreement that was being voted on, nor the specific recommendations of the attorneys the OPA hired to review the contract.” Stevens said that in a closed meeting Dave Stevens Cheryl Jacobs in November, the board had come to an my stance and voted for me,” Herrick agreement on the terms of the contract but decided to have a lawyer review it. said. “At the meeting in December Bob and During the last few weeks of negotiation, he said there were approximately Cheryl reported that they had found an 25 questions and issues that needed to attorney, who reviewed the contract and made some recommendations for minor be addressed. “The board was advised that (Gener- changes which they subsequently incoral Manager) Bob Thompson and Board porated into the draft,” Stevens said. But “they did not provide a written Director Cheryl Jacobs were to work with outside counsel to resolve those opinion from the attorney, or the final issues and to finalize the legal contract revised contract” before asking for a language,” Herrick said. “On Dec. 17, board vote, he said, and that was the the board was called to session to vote deal-breaker for him. “I do not doubt Cheryl and Bob’s on the final Sandpiper contract.” Herrick said the board was advised word that the contract that was voted on by Thompson that the questions and is- was substantially the same as that we sues had been resolved with the aid of agreed upon previously or that the lawan attorney, Randall Coates, from Ocean yer’s recommendations were of a minor nature and incorporated appropriately,” City. https://www.facebook.com/sunsetﬂ oors21842 “I was not presented with a final copy Stevens said. “But I had a major probof the contract for review and therefore lem voting for something I didn’t know was unable to qualify, for myself, if those for certain.”

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Thompson proposes Community Center design changes General manager wants to turn facility into a ‘movement and exercise’ amenity, with meetings and more sedentary activities shifted to a repurposed admin building By TOM STAUSS Publisher uch of the “meat” in General Manager Bob Thompson’s latest iteration of a capital improvement plan for Ocean Pines concerns his ideas for changes in the Community Center, relocation of the Pine’eer Craft shop, and perhaps the most ambitious proposal of all: a new administration/public safety building to be constructed on the Ocean Pines Association’s two-acre parcel on Route 589 in front of the library and post office, adjacent to Taylor Bank. Although all of these proposals are a long way from seeing the light of day, Thompson is using his draft CIP as a way of promoting his vision for Ocean Pines. His emphasis – his obvious preference – is for building new structures to replace aging ones. In his comments introducing his ideas for the White Horse Park campus, current home of the administration building, police department, Community Center and craft shop, Thompson says there “is an on-going struggle to provide space” for competing recreational activities, from events sponsored by the OPA’s Department of Recreation and Parks to meetings hosted by various social and community groups, and third party show promoters. “In addition to the limitations of physical space, meeting space for recreational activities is often very different from the space required for social/community activities,” he writes. “In general, physical activities often produce higher noise levels from music-playing, ball-bouncing, kids yelling, etc., which often create a disturbance, or disruption, to those playing cards, having a meeting or conducting a presentation.” Thompson’s proposed solution is to reconfigure the Community Center, where these competing activities generally take place, into a place for “movement and exercise.” More sedentary activities, such as meetings, would be shifted to the existing administration building, which would be renovated into larger and smaller meeting rooms. That would require relocating the Ocean Pines police department and OPA administrative departments, for which Thompson has a solution, a proposed new administration/public safety com-

plex to be built on the OPA’s two-acre Route 589 parcel. The only exception to the “movement and exercise” role for the Community Center would be the current Marlin Room, which under Thompson’s vision would become the new home of the Pine’eer Club’s craft shop. The Assateague Room would be converted into a fitness/exercise center, with cardio equipment such as Stairmasters, Treadmills, Elliptical machines and exercise bike. The existing kitchen and restrooms would be converted into locker rooms for men and women with showers, changing areas, sinks and toilets. With respect to the craft shop, Thompson says it is “inefficient to operate, is located in the middle of drive aisels, and is, frankly, an eyesore.” He is proposing its conversion into “much-needed” storage space or, alternatively, demolishing it. One proposal for reconfiguring the Administration building into meeting space includes removing all the walls within the police department to create one 2,400 square foot meeting room, to be used for board meetings or other large group meetings. The rest of the building would be repurposed into meeting rooms of various sizes. The proposed new administration/ public safety building would provide space for relocating OPA departments, but Thompson seems especially concerned about providing a safe working environment for the Ocean Pines Police Department. “The current facility was occupied in 1985, with what appears to be minimum consideration given to safety operations at least in comparison to more modern police facilities,” he says, adding that the existing facilities contributes to inefficient operations and lower morale. Among the defects of the current layout is the lack of a secure prisoner processing area, inadequate holding cells, an inadequate dispatch and public waiting area, poor basic amenities, and inadequate storage/evidence areas. Thompson foresees the new administration/public safety complex as the future home of a command center during emergencies, which he says the community currently lacks.

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COVER STORY

January 2016

From Page 1 various projects and evaluate alternative funding plans to finance them. Also in 2015 the OPA contracted with Salisbury University’s Business, Economics and Community Outreach Network (Beacon) to help develop a survey of Ocean Pines Association members to aid in the development of a revised comprehensive plan for Ocean Pines. These two initiatives seemed to consign the CIP to a more subordinate position, but it turns out that, without informing the full board of directors what he was doing, Thompson was working on a CIP update independently of the process that Stevens had launched. The 16-page document, plus various addenda, seemed to catch Stevens unawares during the Jan. 4 meeting when it was unveiled. Director Jack Collins also seemed perplexed by the draft, asking Thompson who had authorized it and whether he had any help in crafting it. Thompson didn’t address the authority question and conveyed the impression that the draft CIP was his alone, using various studies done over the years as a basis. In a subsequent conversation with the Progress, Stevens speculated that the general manager had help, possibly from OPA assistant treasurer and former board member Pete Gomsak, who actively served as a Thompson advisor even in his one-year

hiatus as assistant treasurer during the Stevens presidency. In any event, Thompson makes it clear that he doesn’t regard the latest draft as an end product, but rather a “stepping off point” towards a much more rigorous and detailed strategic planning process for the OPA in coming months and years. “In a perfect world, the reserve study and (comprehensive plan) would have been completed and fully incorporated” within his new CIP draft,” Thompson says early on. “To the extent possible, (some) reserve study results have been merged” into his draft. But he adds that “significant work remains to fully incor-

ly forsees a downsizing in the size and scope and footprint of the facility, with the aim of producing a cost savings over replacing both buildings separately. Beach Club renovation is also projected to cost $3.2 million in fiscal years 2021 and 22. Thompson envisions replacing the indoor pool at the Sports Core with a new aquatics facility costing $3 million in fiscal years 2021 and 22. Thompson devotes the equivalent of two pages in his draft CIP explaining his administration/public safety proposal in some detail, along with rationales for other proposed capital projects. [See story on Page 15 for details.]

porate (reserve study data) into a finalized version” of a CIP. The updated draft also is likely to be scrutinized in detail by directors who were elected on platforms that focused more on maintaining and renovating existing OPA buildings than replacing them. Thompson’s clearly stated preference is for replacement, with the Country Club and Beach Club amenities both targeted within the next ten years. Country Club replacement is projected to cost $3.2 million over two fiscal years, 2018 and 2019. Thompson proposes incorporating a new cart barn facility on the lower level of a new Country Club. The general manager general-

Pines promises to restripe Parke roads Thompson says work will be done in the spring when paint will adhere better to road surfaces By ROTA L. KNOTT Contributing Writer fter more than a year of lobbying, the Board of Directors for The Parke at Ocean Pines’ has finally gotten the Ocean Pines Association to agree to repaint the lines along the streets in that community. However, the work isn’t going to happen until the spring. Christopher Wanzer, vice president of the Parke’s board, approached the OPA Board of Directors during the public

comments segment of its Dec. 17 meeting. “Right now most of our lines are almost invisible,” he told the OPA board. The Parke is a 55-plus active adult community on Ocean Pines’ Southside with 503 homes, governed by its own homeowners association. Its roads, however, are supposed to be maintained by the OPA, of which Parke residents also are members. Wanzer said since most of the residents of the Parke are “more mature”

and can have trouble seeing the faded paint, especially at night, line visibility is an important safety issue. If possible, he asked that the lines on both sides of the roads be striped using reflective yellow paint, instead of white, in order to improve visibility. He said drivers may be more likely to take heed of a yellow solid line than a white one. He said the Parke’s board has been working since the fall of 2014 to address the issue of barely visible striping along To Page 18

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January 2016Ocean Pines PROGRESS

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Thompson proposes $22 increase in assessments in draft $13.7 million budget for 2016-17 General manager opts for no increases in amenity fees By TOM STAUSS Publisher eneral Manager Bob Thompson is proposing a $13.7 million budget for fiscal year 2016-17, including a $22 increase in the base lot assessment but no proposed increases in

amenity fees. He presented the Board of Directors with copies of the draft budget book in a short meeting at the Country Club upper level on Jan. 4. The budget, including the proposed assessment increase, is far from a done deal. The directors, assisted by the Bud-

get and Finance Advisory Committee, will be reviewing Thompson’s draft during January and into February, when it is scheduled for adoption by the board during their regular monthly meeting. Last year, the final budget was not approved until March.

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At least some directors will wage a determined effort to keep the assessment increase at zero or might even press for a reduction. Because of factional shifts on the board after last summer’s Ocean Pines Association, however, it is more likely than not that Thompson will have majority support for much of his budgetary proposals. If the $22 proposed increase survives budget scrutiny, the base lot assessment in Ocean Pines would increase from the current $921 to $943. The waterfront assessment would increase to $1,408, while the water/ non-bulkhead rate would increase to $1,033. The executive summary contained in the draft budget also represents a

18 Ocean Pines PROGRESS

Road striping From Page 16 the roads. He said the general manager and chief of operations for the Parke first met with the OPA’s public works director to discuss their concerns in September 2014. When they still had not seen any progress on the road restriping by the spring of 2015, the Parke asked again about the status of the project and was told by OPA staff that it was still a viable project, according to Wanzer. The Parke’s board also sent a letter to the OPA board regarding its concerns but received no response. Then in November 2015, he said staff said there was no money in the OPA’s budget for this year to do the work, even though there appeared to be a $17,000 line item for just that. “We were told OPA does line painting every three years,” Wanzer said. But the Parke was omitted when the restriping was last completed and no one seems to know why. At the Dec. 17 meeting, Wanzer said the Parke is now being told by OPA staff that there is money for the restriping of roads in the Parke but that the work will have to wait until the spring. He asked if it could be done sooner. OPA General Manager Bob Thompson the work is scheduled for the spring at the same time Ocean Parkway will be restriped. He said the work has to wait until the spring “when it’s warm and the paint adheres better.” Wanzer also took issue with the lack of direct response from the OPA board to correspondence sent by the Parke’s board. “We feel the manner in which we were given the information was not appropriate,” Wanzer said. He said that if the Parke’s board and president felt compelled to send a letter to the OPA, then the OPA should have had the courtesy to send a letter back to the Park acknowledging and explaining the situation. “If it’s not in writing it does not happen,” he said, adding that he wanted a commitment from the OPA board that the project would move forward in the spring. OPA President Pat Renaud responded that he will send a letter to The Parke’s board committing to repainting the street lines.

OPA BUDGET

January 2016 Ocean Pines PROGRESS

Draft 2016-17 budget From Page 18 shot across the bow of certain directors who wanted to see elimination in the five-year plan, or legacy reserve, in this year’s budget. Director Dave Stevens, in particular, recently pressed for inclusion of the zeroing out of the so-called legacy reserve at the end of 2016-17. That won’t happen if Thompson’s proposed budget emerges more or less intact from the pending budget review. In fact, the general manager is proposing to restore full funding of the fiveyear-plan or legacy reserve next year, to $1.1 million dollars. It had been reduced to $923,760 in the current year as the result of a budget compromise, with the differential reallocated to the future projects and golf drainage reserves to reduce both to zero. To restore legacy reserve funding to the $1.1 million, Thompson proposes reallocating $130 of the lot assessment to this reserve, in the interest of using it as “the funding solution to our major capital projects.” That statement would appear to be more of an aspiration for the next ten years than a description of how that reserve will be functioning for the coming year. The five-year-plan or legacy reserve is projected to carry a negative balance of $1.2 million at the end of the current fiscal year on April 30. By April 30 of 2017, this reserve will still be in deficit, by an estimated $608,258. That’s the result of the $1.1 million cash

infusion at the beginning of the new fiscal year and $500,000 in proposed new spending from this “negative” reserve next year. The primary source of spending for OPA capital projects is the so-called “historic” reserve component of the major maintenance and replacement reserve, or capital assets replacement reserve as it is called in some OPA reserve summaries. The source of “historic” reserve inflows is funded depreciation of OPA capital assets, projected to cost OPA members $1.5 million next year, the same as in the current budget. Funded depreciation is perhaps the least understood OPA revenue stream, because it is more or less imposed automatically on members with no board review or oversight. In any event, the historical or funded depreciation reserve is projected to have a balance of $4.6 million as of April 30 this year. With new contributions in assessment dollars of $1.55 million, and projected capital expenditures from this reserve of $1.49 million, this reserve will have a balance of roughly $4.7 million in April of 2017. The proposed budget includes one new position for the Ocean Pines Police Department and two positions that have been classified to full-time with benefits, including health care benefits consistent with the Affordable Health Care act guidelines. In his executive summary, Thompson said he and his budget team were able to make reductions in seasonal and

part-time staffing positions, resulting in a net increase of .18 full time equivalencies for the coming year. Thompson also indicated that salary, wages and payroll costs would grow by 4

percent over the current year’s budgeted level. Salary increases proposed “do not exceed 3 percent and are tied specifically to merit measurements,” Thompson To Page 22

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January 2016

January 2016 Ocean Pines PROGRESS

OPA BUDGET

January 2016

Thompson proposes $2.69 million in capital spending for next year General manager proposes ‘legacy reserve’ as funding source for $450,000 in bridge repairs, rather than the ‘historical reserve’ By TOM STAUSS Publisher eneral Manager Bob Thompson’s 6proposed capital budget for 201 in ion mill 9 17 anticipates $2.6 inor maj by led es, itur capital expend ne sysvestments in computer and pho bridge k, wor road tem improvements, quet Rac and m Swi to s rade repairs, upg ts at men rove club tennis courts, and imp . pool g min swim the Sports Core 0 in In actual dollar volume, $550,00 nt ifica sign t mos road resurfacing is the new the in e itur end exp tal proposed capi be fundfiscal year beginning May 1, to The rve. rese road ed out of the OPA’s from s fund act imp l loca of re OPA’s sha Casino video gaming operations at the source ary prim the is at Ocean Downs rve. rese s road the for ing of fund get Thompson’s proposed capital bud refor ing fund in 0 5,00 $42 also includes one on ges, brid es Pin an Oce two of s pair Drive Ocean Parkway near Clubhouse near e Driv use bho Clu on r and the othe rd Boa the ly, the Country Club. Official

of Directors are yet to decide whether to repair the bridges or spend money on replacing them, as Thompson reportedly prefers. Here, the proposed funding source is the so-called legacy reserve, once known as the five-year-plan, which was originally established to fund major capital improvements in Ocean Pines.

It might seem to be an odd choice for funding, because this fund is actually expected to be in deficit at the end of April by roughly $1.2 million and will continue to be in deficit even with the infusion of new funding May 1 in the amount of $1.1 million. Repairs of existing assets normally would be funded out of the so-called

Draft 2016-17 budget

forecast. [See story above for details.] The draft budget projects some optimistic forecasting for the three most prominent amenity departments in Ocean Pines – the Yacht Club, golf and related food operations, and aquatics. According to budget documents, Thompson and staff expect the Yacht Club to lose $39,111 in the current fiscal year. The draft budget forecasts a $34,496 surplus next year. For golf operations, at least in the current fiscal year, staff is projecting a loss of $141,454, which seems to be at odds with LU’s projection contained on

From Page 19 said. The proposed budget of $13.675 million is a fairly hefty increase over the approved budget of $12.865 million for the current fiscal year and the forecast of $12.311 million in actual spending this year. That’s $424,718 more in operational spending over the expected number this year. But most of the proposed increase is in capital spending -- $1.116 million more next year compared to this year’s

historical reserve, which is flush with cash generated by the funding of asset depreciation with assessment dollars every year. The so-called historical reserve is projected to carry a $4.6 million positive balance as of April 30, with another $1.5 million infusion from assessments on May 1. It would have little difficulty in absorbing another $450,000 hit should the directors decide to pay for bridge repairs with historical reserve money rather than the legacy reserve. If the legacy fund is not tapped for bridge repairs, its negative balance would be under $200,000 at the end of next year. According to the capital summary in Thompson’s proposed budget, this legacy reserve is also the proposed

22 Ocean Pines PROGRESS

page ten of its business plan. The company said the golf course is on a trendline for a $93,566 operating loss for the current fiscal year, on gross revenues of $1,372,294 and a gross profit after cost of sales of $1,252,571 and operating expenses of $1,346,137. Last year, Billy Casper Golf lost roughly $118,000. LU’s proposed golf budget for next year is projecting a loss of $83,378. According to budget documents, Thompson and staff are predicting a $37,762 loss in the aquatics department in the current fiscal year, with a $49,832 loss projected for next year.

OPA BUDGET

Capital budget From Page 22 source for $75,000 in capital spending related to studying or designing a new police center in Ocean Pines. The third largest project in dollar terms is the proposed resurfacing of the Sports Core pool and decking, replacement of skimmers and other pool repairs, along with a stepped walk-way entrance into the pool. The budgeted amount for this is $250,000. Refurbishing the Swim and Racquet club tennis has been been budgeted for $140,000. No other proposed capital expenditure reaches into six figures. Among the various departments, Public Works could be receiving its usual complement of new equipment, including a new truck for $61,000, a tractor/loader for $81,000, dump truck for $65,000, a skid skeer for $70,000, a Z-mower for $14,000, a salt spreader for $10,000, a bug hog for $7,000 and a snow plow for $,5000. Next year’s capital budget removes a placeholder item for a new police headquarters building that has been a source of contention, resulting in a board vote

January 2016 Ocean Pines PROGRESS

last year to remove all place-holders from the capital budget this year. Consistent with that vote, Thompson is proposing $75,000 to study options for a new police headquarters next year. In a draft capital improvement plan released at the same time as the proposed budget in early January, Thompson advocated for a new administration/ public safety building on Route 589. He suggested relocating the police department to that building, along with the OPA administration and the Ocean Pines Fire Department’s Southside firehouse. At the Yacht Club, Thompson is proposing a food truck for $55,000 and new kitchen air conditioning for $15,000, in addition to $5,467 in café furniture, $4,4770 in glass table tops, $4,094 in a refrigerator roof top, and $1,200 in air curtains. The golf course and pro shop is, compared to some years, lightly funded in the proposed capital budget. A replacement fairway sprayed is budgeted for $60,000, along with $3000 for golf course radios, $2,800 for a range ball dispenser, $2,300 in pro shop fixtures, and $1,500 in range picker reels. The Beach Club would be upgraded

with a $3,200 micro-register, a $3,126 horizontal freezer, a $1,708 heated display cabinet, a $1,905 hot dog roller, and $1,165 beer bottle cooler. The Yacht Club marina would receive $25,000 in water line improvements, a $9,000 roof for the gas dock building, and $9,883 for Kasco ice eaters. The aquatics capital budget includes

$14,094 in aqua cycle exercise bikes, $29,631 in pool furniture for all pools, and $17,500 for a replacement slide at the Sports Core pool. The bikes would be considered new capital and thus financed directly from the lot assessment rather than reserves. [A complete listing of proposed capital projects appears on this page.]

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OPA BUDGET

January 2016

LU retains net gain of 10 members in golf course business plan By TOM STAUSS Publisher he final version of a golf business plan submitted by Landscapes Unlimited and included as supporting documentation in the golf course management company’s budget for next year envisioned a gain of ten individual memberships over the 116 total memberships, individual and family, in place as of September this year. There was some expectation that the Ocean Pines golf course management company would revisit the projected increase in membership at the urging of the four-member golf working group that is overseeing LU. It’s still possible that LU will revise the projection later, in a membership plan appendix that seems to have been omitted from the golf business plan released Jan. 4 as part of the OPA budget. OPA General Manager Bob Thompson said the plan submitted to the Board of Directors with the golf budget Jan. 4 contained the “final” version of the business plan, which includes a reference to a net increase of ten memberships. How “final” the plan really is, howev-

‘Final’ version of plan doesn’t

area,” which Renaud told the Progress in a brief interview in early December could reflect continuing opposition among some golfers to the change in management last year from Billy Casper Golf to LU. According to the meeting summary, OPA representatives asked about any change original projection despite urging of OPA working group actions LU has taken to identify former golf members who had given up their memberships “and how many have been The OPA working group cited 143 memberships in March of contacted to entice them to return.” 2015 but only 116 memberships as of September of this year, The summary indicated that LU executives said that had identified more a loss of 27, excluding lifetime members that recently have than 300 previous members but that dropped below 20. there been no effort to contact them. When OPA working group members er, remains to be seen. According to a written summary of suggested revising the target memberOn page 32 of the plan, titled IX. Ap- the meeting, OPA working group mem- ship growth to 32, or about 10 percent pendix, there is a reference to a separate bers challenged LU’s draft membership of the lost memberships over the years, membership plan that does not appear plan that showed an increase of only ten LU executives “agreed to review the with the rest of the plan, at least in the new members in 2016-17, which would possibility of revising the target,” while copy of the budget placed out in the lob- not have rebuilt the membership to conceding that they don’t have a good by of the administration building on where it was before the June 1 transfer handle on how many individuals in the Jan. 6. of operational authority over the golf 300 memberships lost over the years are still available to be contacted. So it’s still possible that LU will recourse from BCG to LU. It would seem that after reviewing vise its projected net increase in mem“LU agreed they needed to re-look at bership if and when the membership the projected growth objectives in their the projected increases, LU executives decide to retain their original projection plan appendix becomes available. Membership Plan,” the summary said. The OPA golf working group, in the The OPA oversight group includes of a net gain of ten. As a practical matter, because of the most recent meeting with LU executives, Thompson, OPA President Pat Renaud, cited a reference to an LU objective of OPA Treasurer and director Tom Terry steady erosion of membership resulting from Ocean Pines’ aging golf membergrowing “member numbers.” The OPA and director Bill Cordwell. working group cited 143 memberships The OPA team told LU executives ship demographic, a net increase of ten in March of 2015 but only 116 member- at the meeting that there are “loyal represents more new memberships than ships as of September of this year, a loss members” of the Ocean Pines golf club that number suggests. If indeed the projected increase is ten, of 27, excluding lifetime members that 1508 “who are saying that theyHandout could NEW likely Complete Home Improvement with our type_Layout 1 2/3/15 1:22 PM Page 1 recently have dropped below 20. be leaving for other courses in the

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OPA BUDGET Golf business plan From Page 24 LU executives no doubt will be asked to explain and defend that number in budget meetings with the Board of Directors in January or February. In one interesting note, in a side note on page ten of its business plan, LU suggests that there is a downside to an increase in membership as a way of driving more rounds. An increase in memberships “will necessarily lower the revenue per round because of the low rates charged to members,” according to LU. Even so, building membership by targeting homeowners within Ocean Pines remains an integral part of LU’s marketing strategy. “We have identified 1,937 specific homes within the Ocean Pines community that have an expressed interest in the game of golf,” LU says on page 13 of its business plan. “This makes them ideal candidates for … marketing and advertising resources.” The goal is generating additional ocean Pines homeowner use of the golf course, either through membership recruitment or “through daily fee activity if their interest in golf is more casual in nature.” Page ten of the business plan contains financial and related goals for the course next year. Compared to 32,822 rounds projected for the current fiscal year, LU is setting

January 2016 Ocean Pines PROGRESS a goal of only 32,594 rounds for 201617, with no explanation offered in the plan for the lower projection. But at projected higher revenue per round, to $42.70 next year from this year’s trend of $41.81, actual revenues are expected to increase slightly, from $1,372,294 this year to $1,391,634 next year, a $19,340 improvement. That’s an increase of 1.41 percent. LU is setting a goal of $1,257,669 in gross profit after cost of sales and merchandise are subtracted from gross revenues, a slight $5,098 uptick from this year’s projected $1,252,571 in gross profit. LU is projecting operating expenses of $1,341,045 next year, also a slight $5,092 reduction from this year’s expense total. The result is an $83,376 loss, compared to LU’s projection of a $93,566 loss this year. LU’s forecast is substantially less than that offered by Thompson and OPA Controller Art Carmine in their proposed budget for next year. The OPA staff is predicting a $141,454 loss in golf operations this year, a slight reduction from an endof-year forecast recently offered by Thompson at the fiscal year’s half-way mark. At the time, Thompson’s predicted loss for golf was $150,000. So far, the general manager has offered no public explanation for why is forecasts are so much more pessimistic than LU’s.

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Thompson excludes Beach Club renovation in draft capital budget By TOM STAUSS Publisher t’s official: Despite the strong backing of Ocean Pines Association Director Jack Collins and local developer Marvin Steen, General Manager Bob Thompson has declined to include a proposed renovation of the Beach Club bathrooms in his draft budget for 201617 unveiled Jan. 4 at the Ocean Pines Country Club. The omission was not unexpected. In an interview with the Progress in December, OPA President Pat Renaud said he doubted that the proposed renovation would be included in Thompson’s draft capital budget for next year, primarily because it had been introduced at the Nov. 19 board meeting, well after Thompson had begun work on the budget for next year. Renaud also indicated that there has been some push-back from a couple of directors about the wisdom of including the renovation in the budget. He said they told him that the bathroom renovation should not push ahead of other proposed capital projects and that it should be considered in the proper order in the context of a new capital improvement plan. Renaud said he was not sure whether

he would support Collins’ push for the renovation in next year’s budget. “I do know it needs to be done, though,” he said. Collins told the Progress in an early January telephone interview that he intends to continue to push for the renovation’s inclusion during the upcoming budget process in January and February. He said he has been involved in an effort that includes Steen in which the developer has been meeting with individual board members to try to persuade them to fast-track the Beach Club renovation. “I will give me colleagues every opportunity to do the right thing on properly maintaining this popular and important amenity,” Collins said. “I encourage property owners to let board members know that they support this.” During the Nov. 19 meeting. Steen presented directors with schematic designs and a scope of work for renovation of the Beach Club bathrooms. Steen, who paid for the initial proposal development work himself, had local contractor Sens, Inc. evaluate the existing conditions of the men’s and women’s bathrooms, changing rooms and showers at the Beach Club and create a plan to renovate them.

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OPA BUDGET

January 2016

Open meeting with LU execs may occur during budget review By TOM STAUSS Publisher hat initially appeared to be a clear-cut “win” for Ocean Pines Association Director Dave Stevens in an ongoing debate about oversight of Ocean Pines golf course operations now appears to be much less than that. During the Board of Directors Nov. 19 monthly meeting, Stevens was on the winning side of a 5-2 vote calling for Ocean Pines General Manager Bob Thompson “at his earliest convenience” to set up a special open session of the board to meet with representatives of Landscapes Unlimited to discuss the company’s golf course business plan, particularly its ideas for rebuilding an aging and declining membership base. By the board’s December meeting, it was evident that Thompson’s “earliest convenience” was not as soon as Stevens had been hoping for. Stevens remarked that he had concluded that Thompson intended to invite LU executives in to discuss the company’s golf course business plan with the directors during the 2016-17 budget review process, and not before. Thomp-

son, who had said during the November board discussion that the business plan was a budgetary issue, did not disagree with Stevens’ assessment about when the meeting would occur. Stevens seemed irritated by the scheduling but did not press the matter at the December board meeting. In an early January telephone call, Stevens said he would continue to press for a “separate meeting” with LU officials “not part of the budget review process” consistent with the 5-2 vote in November. “They will probably just ignore me” and hold the meeting as part of budget review process, Stevens said. He brought the issue up again during a brief board meeting on Jan. 4 called for the purpose of directors receiving copies of the draft 2016-17 budget from Thompson. After a short debate, during which Stevens recapped the Nov. 19 board vote, Director Tom Terry said the matter should be handled by the OPA President, Pat Renaud, who agreed to try to set up a meeting with LU executives independent of the budget review sessions.

Terry said the issue was not one that had been scheduled for discussion during the Jan. 4 meeting and therefore Stevens was out of order by bringing it up for discussion. Terry noted he had voted for the motion back in November. Thompson told the directors at the November meeting that he had just received an updated version of the membership plan from LU, but Stevens told the Progress that if an updated version of the membership plan had been submitted, he had not seen it. It’s consistent with what Stevens apparently believes is a pattern of failing to keep all directors fully appraised of interactions with LU executives in a timely way. A four-member working group has been meeting with LU executives on a monthly basis. Working group members include OPA President Pat Renaud, directors Tom Terry and Bill Cordwell, and Thompson. It was a Stevens’ motion in November that passed 5-2 calling for a special meeting of the entire board and LU to discuss the company’s business and membership plan. Stevens and Directors Jack Collins, Tom Herrick, Terry, Renaud voting in favor, with Cordwell and Cheryl Jacobs opposed. Feeling left out of discussions being held between the golf working group and LU, Stevens said he believed the full board would benefit greatly by meeting with LU to discuss its business plan, which is a contract requirement. Renaud initially took issue with Stevens’ accusation that information has not been shared by the LU board liaisons with other directors in a timely fashion. “We did the job. We went and talked to the people. We don’t have any final vote,” he said of discussions with the golf management company’s executives about the proposed business plan.

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GM recommending St. Martins Lane drainage work By ROTA L. KNOTT Contributing Writer

he Ocean Pines Association has a plan to alleviate drainage woes on St. Martins Lane but no funding was budgeted to pay for the work in fiscal year 2016. Bob Thompson, during his Dec. 17 general manager’s report to the Board of Directors, said the association has received proposals for the drainage project but had not evaluated them as of that meeting date. Thompson said the OPA worked with representatives from Worcester County public works to develop plans for a drainage project that will correct the stormwater problems on St. Martins Lane. He said it will “help alleviate some of the backlog drainage that occurs on St. Martins during heavy rain storms.” The project strategy, as identified by a drainage committee that included both OPA and county team members, involves replacing the existing drainage pipes that cross St. Martins Lane with a larger diameter pipe. Thompson said the project requirements were developed using the county’s specifications for pipe size and will increase the existing 15inch diameter drainage pipe to one that is 24 inches in size. Typically the OPA’s Public Works department can address drainage related issues in-house, according to Thompson. That usually requires closing off access to the work area. However because St. Martins Lane is a main thoroughfare and serves as the only truck entrance to Ocean Pines, closing the road isn’t an option. So instead of having Public Works tackle the job, the OPA solicited a request for proposals for the work. During the Dec. 17 meeting Thompson presented the bid packages to the board but said it was for informational purposes only – not for a vote at that time. “This is just for you all to review it,” he told directors and said he will be seeking action to approval to move forward with the project next month. Thompson said no funding was allocated in the fiscal year 2016 association budget for the drainage work but it is a project that was identified by the drainage committee and that committee is asking for a remedy to be implemented. But to proceed with a project like this “I would need guidance” and a vote to proceed from the board, he said. Director Dave Stevens asked if the drainage work would be considered a capital replacement project. Thompson responded that it would be considered part of the OPA’s drainage program as the association does replace drainage pipes regularly. Stevens then asked how the OPA will pay for the work. He wanted to know

26 Ocean Pines PROGRESS

BOARD OF DIRECTORS

By ROTA L. KNOTT Contributing Writer he owner of a property found in violation of the Ocean Pines Association’s restrictive covenants allegedly assaulted at least one public works crew member when they entered onto the property in December to remove trash. OPA General Manager Bob Thompson told the Board of Directors during a Dec. 17 meeting that the week prior the owner of 42 Ocean Parkway came to the property while public works crews were on site to remove trash and debris that he had allowed to accumulate. During the time when the crews were there, “the owner of the property affected an assault on one of our public works

St. Martins Lane From Page 26

if the funding will come from the major maintenance and replacement reserve. Thompson said he will have a final recommendation about funding when he formally presents the project to the board for consideration and approval at its January meeting. “But more than likely, yes, sir,” he told Stevens. He said he will present a financing solution regarding from where to draw the funds “unless the board directs otherwise.” Stevens cited the project as a “good example of something where, whether it’s budgeted or not budgeted,” the board can direct the general manager to take funding form the historical reserve fund to cover the cost. He said he was “just pointing that out” and added that as a policy it is “not written down anywhere

January 2016Ocean Pines PROGRESS

Renaud tries to regain control over rancorous OPA board meetings President wants to shorten meeting agendas we truly wish to serve our constituents these practices will have to stop.” Renaud said in the future he wants to shorten meeting agendas so that OPA board meetings last no more than two hours. He also plans to make sure that all directors keep their comments to the specific discussion topics as listed on the meeting agendas. “Everyone can certainly have a say about any issue but interrupting a fellow director and/or raising your voice is not acceptable,” Renaud said, promising OPA members that he will try to better control board meetings. To do so, he called for a more strict enforcement of parliamentary procedures using Robert’s Rules of Order, from which he read during his comments. Robert’s Rules of Order calls for directors to stand and address the

chairperson by title if they wish to obtain the floor to speak. The chairperson must recognize the director and then that person can introduce a motion for debate. Renaud said he would waive the requirement for directors to stand when asking to be recognized by the chairman, but he didn’t offer to waive other rules including a ten-minute limit on each director’s time to speak or that they not be granted the floor more than twice. Still, he said, everyone who wants to speak will be given the opportunity to do so at meetings. He called for directors to adhere to the dictated decorum and carrying on debate in an orderly manner without making personal attacks on fellow directors. He said they should keep their comments to the merits of the question at

Owner charged with assault during OPA clean-up effort Directors had authorized trash removal from property at 42 Ocean Parkway teams.” He said the incident was reported to the Ocean Pines Police Department and criminal action is being pursued against the property owner. Worcester County District Court records show that the property owner, Arthur Eugene Ford II, was issued a

but we can still do it and move ahead.” The so-called “historic” reserve refers to funded depreciation, one of two funding components in the major maintenance and replacement reserve. The other funding component is the legacy reserve, once called the five-year-plan, that is generally treated as a supplemental funding source for major capital projects in Ocean Pines, such as the new Yacht Club. Director Jack Collins asked why the drainage project couldn’t simply be considered a standard maintenance issue rather than a true capital improvement. Thompson agreed that is an option as well, and again said he was not making a recommendation at that time regarding a funding stream. “I’ll have that recommendation at the next board meeting,” he said.

criminal summons on Dec. 10 for second degree assault for the incident, which occurred on Dec. 9. In November the board reviewed 42 Ocean Parkway case and, based on the recommendation of the Compliance, Permits and Inspections Department, found the owner to be in continuing violation of the declaration of restrictions for having trash and debris on the lot. CPI found numerous maintenance

hand and not conduct personal attacks on another member’s motives. Instead all statements and remarks should be addressed to the meeting chairman. The rules even call for directors not to use each other’s names or to speak directly to each other using the second person; instead they should always address fellow directors in the third person. Finally Renaud pointed out that Robert’s Rules of Order call for the chair not to participate in issues up for debate by the board except through the vice chairman. “A lot of people don’t think I say a lot,” he said, adding that’s why he stays mum during board discussions. “I’m supposed to be the arbitrator.” There was little response to Renaud’s comments from his colleagues. Apparently not hearing Renaud’s initial statement that he was waiving the requirement that directors stand before making comments, Director Jack Collins did so shortly after Renaud concluded his remarks, to the amusement of some of those watching the proceedings. Collins, known for his occasional facetiousness, sat down immediately when Renaud repeated that he was waiving the rule about standing before making comments. violations to exist on the site, including an open water meter hole that is full of water, trash and debris, weeds, a broken gutter, and a window that is open to the weather. At that time CPI said the property, which has been cited for violations in the past, appeared to be abandoned and that the property owner left unclaimed four certified letters from the association regarding the matter. While typically such issues are sent to legal counsel, who would send a letter to the owner demanding clean-up, the board wanted action on 42 Ocean Parkway sooner rather than later. Directors instructed Thompson to try to “fast-track” the clean-up and get legal advice regarding the OPA’s ability to go q

By ROTA L. KNOTT Contributing Writer at Renaud has put fellow members of the Board of Directors on notice that as president of the Ocean Pines Association and presiding chairman of board meetings, he will no longer tolerate disrespectful and rancorous dialogue. During the president’s comments segment of the Dec. 17 board meeting, Renaud outlined the main tenants of parliamentary procedures included in Robert’s Rules of Order that he expects directors to follow during meetings, including being courteous and respectful of each other. Renaud said following the board’s November meeting he was approached by several community members who complained about some directors’ lack of respect and consideration for others and the overall negative atmosphere at board meetings. He said that when he became president in August 2015, one of his goals was to conduct more civil meetings. He said he wanted board members to listen peacefully to each other’s concerns and finally vote upon a course of action related to the issues discussed. “This has not occurred as both the rhetoric and rancor have increased at each meeting,” Renaud said, adding “if

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28 Ocean Pines PROGRESS

OPA FINANCES

January 2016

Owner charged From Page 27

on-site and remove the trash. Fast tracking action against a property owner gives staff the ability to resolve issues without coming back to the board for further action. At the December meeting, Thompson said that he and the public works director walked the property at 42 Ocean Parkway and took numerous photographs of the items on the site, including a disconnected hot tub that was being used to store debris, to validate that the items were considered trash and not personal property. The photographs were sent to legal counsel, who gave the go-ahead to remove all of the items except the hot tub. When public works crews entered onto the property to conduct the cleanup, that’s when the property owner is alleged to have shown up and committed the assault. According to the OPA, the property owner is also delinquent on homeowners association assessments for the last two years and has a current balance due $2,423.52. Liens have been placed on the property. At the Dec. 17 meeting, the board found three additional property owners in continuing violation of the restrictive covenants and agreed to send all of the cases to legal counsel for resolution. At 105 Sandyhook Road, CPI cited the owners for having trash in the yard.

As with the lot at 42 Ocean Parkway, if the issue is unable to be resolved in a timely fashion, staff will seek a legal opinion distinguishing trash from personal property and enter onto the property to remove those items considered trash. The other two violations considered by the board were for the construction of unpermitted structures on lots in Ocean Pines. At 15 Castle Drive, the owners reportedly erected a fence without acquiring the proper permit from the OPA and at 79 Boston Drive the owners reportedly built a deck on the rear of the home also without the benefit of an association-issued permit. Thompson said letters have been sent to both of the property owners but there has been no response. As a result, he said the “next step is to elevate it” and send it to the attorney for letters to the property owners demanding resolution. “It’s a more formal letter coming from counsel,” he said. Director Cheryl Jacobs asked how to remedy such situations where a property owner builds a structure without a permit. Thompson said the property owners simply have to apply to the OPA for the proper permits and pay the applicable fees. As long as the structure meets necessary requirements, such as setbacks, the permits would likely be approved. “It not a hard process,” he said.

OPA close to break-even in November, ahead of budget by $186,000 for year Yacht Club well into deficit territory for the month, but still ahead of last year by $160,000 By TOM STAUSS Publisher s Ocean Pines amenities enter into a time of year when deficits are expected, November Ocean Pines Association financial results were mixed. All major amenities lost money for the month, led by the Yacht Club’s $46,355 deficit and the golf operation’s $37,545 loss. But two major amenity departments, golf and aquatics, both performed substantially better than budget. Golf recorded a $20,812 positive variance to budget, while aquatics exceeded its budget target by $9,127. The Yacht Club missed its budget by $8,993. For the year through November, both golf and the Yacht Club are behind budget. The good news is that both remain in the black for the year so far and both, the Yacht Club in particular, are ahead of 2014 for the comparable period in the fiscal year. Golf is $29,000 behind budget through

November, while the Yacht Club has a $32,865 negative variance for that same period. Golf has an $87,786 surplus for the year through November, however, while the Yacht Club’s year-to-date surplus is $165,873. Golf under the management of Landscapes Unlimited is performing $20,000 better than it did under Billy Casper Golf the previous year through November. The Yacht Club is roughly $157,000 ahead of where it was in November of 2014. Going into the winter months, the real issue is how monthly operating deficits at the Yacht Club will erode surpluses run up in the warmer months. The Yacht Club is budgeted to earn $62,132 for the OPA this year. If the Yacht Club could achieve an average monthly loss of $20,000 from December through April of next year, the remaining five months of the fiscal year, it would come very close to meeting that budgeted surplus. To Page 30

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OPA FINANCES

January 2016

Financial summary From Page 28

years. What’s worrisome is the $46,355 actual loss in November. Is it a harbinger of even worse numbers in the ensuring months? If the Yacht Club records

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$50,000 losses in December, January, February, March and April, that would produce $250,000 in red ink for the remainder of the fiscal year. Losses that large would wipe out the cumulative deficit of $166,000 through November and then some. Losses in the amount of $250,000 for the last five months of the fiscal year would produce a loss of roughly $84,000. Because the marina and food and beverage numbers are combined in the year-end forecast, it’s impossible from the one-page document to know precisely what the general manager predicts for food and beverage operations this year at the Yacht Club. No director asked Thompson for a more precise breakdown during the November Board of Directors’ meeting. Golf has an operating surplus of $87,786 through November. It’s budgeted to lose only $100,000 for the year, although the year-end forecast released

by Thompson indicated that he expects the amenity to lose $150,000 for the year. So far this year, the golf course under Landscapes Unlimited management is performing better than the previous year under Billy Casper Golf by roughly $20,000. Last year, golf operations lost roughly $118,000. That means that Thompson is predicting that the course under LU will be losing at least $30,000 more than it did in BCG’s last year. In his November general manager’s report, Thompson offered no explanation for why he believes this year’s golf numbers will be so much worse than last year, especially since LU’s numbers through November are $20,000 ahead of last year’s But he did offer a caveat. If spring outside play is better than is now expected, then he said the projected loss could be less than $150,000. April is the last q

The question is whether the Yacht Club’s actual $46,355 loss in November represents an anomaly or is more predictive for the December through April period. In a year-end forecast made public during the November meeting, OPA General Manager Bob Thompson predicted that the combined Yacht Club food and beverage operation, along with the Yacht Club marina, will earn roughly $181,000 for the year. Marina operations have produced a $206,507 surplus through November, and are effectively closed for the season, with modest carrying costs over the off-season. Marina operations lost about $5,000 in November and could be expected to lose that much each month for the rest of the fiscal year, for another $25,000 in possible losses. That would mean marina operations could lose about $181,000 for the year, equivalent to Thompson’s predicted combined marina/Yacht Club surplus. That seems to suggest that Thompson now believes the Yacht Club will roughly break even for the year, well off the budgeted $62,132 surplus. Even so, an actual break-even result probably would be celebrated given historic losses recorded by the Yacht Club over the

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January 2016Ocean Pines PROGRESS

By TOM STAUSS Publisher he reserve summary released as part of the November financial report shows that the Ocean Pines Association’s allocated reserve dropped again modestly in November to $6.47 million, down from $6.59 million in October and from the high of $6.9 million recorded at the end of May, the first month of the 2015-16 fiscal year. May is always the reserves’ high mark because that is the month when annual lot assessments are recorded. The reserve balance declines as expenditures from the allocated reserves occur throughout the year. At the end of April, the conclusion of the previous fiscal year, the reserve balance stood at $3.5 million. The OPA this year is scheduled to collect roughly $2.5 million in assessment dollars that are allocated to the major maintenance and replacement reserve. The total balance in this reserve as of Nov. 30 was $4.34 million, a slight de-

OPERATIONAL RESULTS ONLY OPERATING RESULTS

OPA reserves drop slightly to $6.48 million in November cline from the Oct. 30 balance of $4.37 million There are two distinct revenues streams into this reserve. One is OPA assessment dollars collected to fund depreciation of OPA assets, with a Nov. 30 surplus of $5.53 million. This funding stream is called “historical” in the OPA’s reserve summary. There was $1,549,032 in new depreciation-related funds added to this reserve on May 1. The other revenue stream within the major maintenance and replacement reserve is supplemental funding for major projects, also collected as part of the annual assessments. The funding source for the new Yacht Club, it was previously known as the five-year plan, changed to the “legacy” reserve as part of a reserve “compromise” during the budget review and approval process a year ago.

BY THE NUMBERS

REVENUE

EXPENSE

FORECAST NET

Period ending 30 April 2016

BUDGET NET

VARIANCE

Administration

$5,469,000

$1,722,000

$3,747,000

$3,840,688

$93,688

Public Works +

$200,000

$1,982,000

$1,782,000

$1,789,740

$7,740

Public Safety

$462,000

$2,064,321

$1,602,321

$1,645,939

$43,618

Recreation +

$375,000

$879,000

$504,000

$519,920

$15,920

Aquatics

$760,000

$814,000

$54,000

$113,000

$59,000

$1,267,000

$1,417,000

$150,000

$100,000

$50,000

Golf Ops + F&B Beach Club +

$755,000

$244,000

$511,000

$441,242

$69,758

Yacht Club +

$1,521,000

$1,340,000

$181,000

$189,151

$8,151

$10,809,000

$10,462,321

$346,679

$302,482

$44,197

TOTALS

Financial summary From Page 30

month of the fiscal year, and weather during that month is notoriously mercurial on the Eastern Shore. After missing its budget target by $7,350 in October, aquatics recorded a positive variance to budget of $9,127 in November, with total revenues of $18,635 ahead of budget by $11,286. Swim class revenue of $9,624 was $3,624 over budget, and rental fees paid by Stephen Decatur High School and the Ocean Pines swim team were recorded in November in the amount of $7,700. Aquatics is ahead of budget. Through November, the department has generated $668,258 in revenue, compared to $527,089 a year ago. That’s a $141,000 year over year swing in revenue The $48,000 revenue contribution from Beach Club parking passes represents a little more than a third of that, suggesting that Aquatics would be having a solid year even without the infusion of cash from parking passes. The bottom line is equally impres-

sive. Through November, the aquatics surplus is $124,168, compared to a Nov. 30, 2014, cumulative deficit of $12,758. That’s represents a year-over-year improvement of almost $137,000. Aquatics is almost $96,000 ahead of budget on the bottom line through October. In his year-end forecast, Thompson suggests that Aquatics will lose $54,000 for the year, which will be the lowest deficit since the Sports Core pool enclosure in 2007-08. The budgeted loss for the year is $113,000, which means that the general manager believes Aquatics will beat its budget by $59,000. If the pace continues as it has for most of the year, Thompson’s forecast could turn out to be conservative. According to Controller Art Carmine’s monthly report for November, the OPA generated a positive operating fund balance of $4,592 in the month, on revenues that outperformed budget by $637 and expenses that were under budget by $958. New capital expenditures were under budget by $4,913. For the first seven months of the fiscal year – May through November – the

The so-called legacy reserve had a $1.2 million deficit as of Sept. 30. Consistent with the board reserve compromise, the November reserve summary reflects transfers from the historical (funded depreciation) column to the future projects, roads and golf drainage reserves, reducing the future projects and golf drainage reserves to zero. The transfer out of the major maintenance and replacement reserve totaled $814,577, with $60,463 allocated to future projects, $110,508 to roads, and $643,607 to golf drainage. The roads reserve was not zeroed out by this action, because casino funds in the amount of $250,000 were allocated to this reserve. Next to the major maintenance and replacement reserve, the bulkheads and waterways reserve is the most flush

with cash. Starting the fiscal year with an $893,432 balance, this reserve has grown to $1.6 million on the strength of $822,367 in new money from the socalled waterfront differential, the difference between the base annual assessment and the waterfront assessment paid by those who live on bulkheaded property in Ocean Pines. Through November, only $126,431 has been spent from this reserve. The operating recovery reserve, set up to offset losses in previous fiscal years or possible future tax liabilities, increased from a $135,933 balance on April 30 to $271,982 on Nov. 30, reflecting $135,216 in new contributions from assessments. This reserve had been zeroed out as of April 30 last year, on the theory that previous year deficits had been sufficiently offset by subsequent surpluses, but the OPA Board of Directors last year authorized $135,100 from last year’s assessment to be allocated to this reserve, ostensibly to cover possible future tax levies.

Thompson pessimistic on golf losses in current fiscal year By TOM STAUSS Publisher n a fiscal 2015-16 year-end forecast delivered to the Board of Directors in November, Ocean Pines Association General Manager Bob Thompson is projecting a $346,679 operating surplus, a $44,000 improvement from the budget for the fiscal year approved in March of last year. There are two notable changes in the forecast over the approved budget. Aquatics, budgeted to lose $113,000, has been revised to lose only $54,000 for

OPA had a positive operating fund variance of $185,742, on revenues that were under budget by $111,300 and expenses under budget by $300,396. New capital was over budget by $3,354 through November. In his year-end forecast, Thompson is predicting that the OPA will exceed its budgeted operating surplus of $302,482 by $44,197. The forecast net is $346,679. Status of the balance sheet: According to the Nov. 30 balance sheet, the OPA has assets valued at $32.9 million, against liabilities of $1.58 million and owner equity of $31.31 million. The November balance sheet indicates that the OPA had $1.24 million in operating cash on hand as of Nov. 30, compared to $2.13 million a year prior. Short term investments were valued at $7 million as of Nov. 30, compared to $4.02 million a year previous. Status of reserves: The reserve summary released as part of the October financials indicates that the OPA’s total allocated reserve balance stood at $6.447 million, little changed from the month prior.

the year. That’s a $59,000 improvement and reflects much better year-to-date revenues than had been forecast earlier in the year. Golf and related food and beverage operations, on the other hand, seem to have fared worse in the budget forecast than they did in the approved budget. Originally projected to lose $100,000 in the current fiscal year, Thompson now projects that the Ocean Pines golf course will lose $150,000 for the year, which happens to be more than $30,000 worse than the golf course did in 2014-15. Thompson, who said the golf deficit won’t be that large if the golf course records a good March and April of outside play, did not explain his relative pessimism about golf operations in the current fiscal year. Through Nov. 30 of this year, golf is performing roughly $20,000 better than the original budget anticipated. That suggests that Thompson believes golf will be underperforming against budget by $70,000 for the last five months of the fiscal year, absent a good March and April. If golf simply performs on budget for the rest of the fiscal year, the actual golf deficit would drop below $100,000 for the year. The “By the Numbers” forecast for the remainder of the fiscal year obscures the general manager’s predictions about the performance of the Ocean Pines Yacht Club. That’s because the forecast combines Yacht Club marina operations with food and beverage operations, with no breakout. Other departments are similarly merged in the forecast, making meaningful comparisons between the original budget and the revised forecast difficult

OPA FINANCES

32 Ocean Pines PROGRESS

WORCESTER COUNTY

January 2016

AROUND THE COUNTY County honors service of former Commissioner Louise L. Gulyas

ormer Worcester County Commissioner Louise L. Gulyas died on Dec. 17, 2015. Gulyas was elected as a County Commissioner to represent the Ocean City District - District Seven in 1998. She was the second woman ever to be elected as a commissioner, and she served four consecutive terms until retiring in 2014. “Louise loved people, and everyone she met became an instant friend,” Commissioner President Jim Bunting said. “She championed the needs of her district and the interests of the entire county as a whole.” Throughout her time in office, Gulyas acted as a strong voice for senior citizens and the disabled. She served the Board of County Commissioners as vice president for three years and president for one year. At the local level, Gulyas represented the Commissioners on the Worcester County Commission on Aging Board of Directors and the Wor-Wic Community College Board of Trustees. Regionally, she served as a member of the Gray Shore Committee Task Force and former chair of the Tri-County Council Health Care Committee and MAC, Inc. “Louise was one of the most dedicated public servants I’ve ever known,” Commissioner Bud Church said. “She referred to Ocean City as ‘My Ocean City’ in almost every conversation I ever had with her. Worcester County and Ocean City lost a true public servant.” Gulyas also chaired the State Commission on Aging where she received the Governor’s Leadership in Aging Award for her advocacy efforts and support of senior citizens. In 2015, she was named to the Maryland Senior Citizens Hall of Fame.

Transfer station stops accepting yard waste

Yard waste no longer be accepted at the Berlin homeowner convenience cen-

Golf losses From Page 31 to ascertain. Thompson predicts that Yacht Club food and beverage and marina operations combined will make $181,000 this year. In his Jan. 4 draft budget, there is greater clarity and precision with respect to management amenity forecasts for the remainder of the year. The updated numbers show Thompson is now less bullish on Yacht Club operations than apparently he had been at the half-way mark into the fiscal year Thompson predicts the Yacht Club will lose $39,111 this year while marina operations will earn a positive $180,757. Combined, that’s a $141,646 net surplus.

ter as of Jan. 1 as a result of the to accommodate a project to cap and close the rubblefill located at the site. Starting Jan. 1, homeowners should take yard waste to the Central Landfill in Newark for disposal. “We hope to be able to build up the area and resume accepting yard waste at the Berlin HOCC at some point in the future,” John Tustin, county public works director, said. “However, we won’t know for sure whether this will be a possibility until the project is complete.” Cleanup of the Berlin rubblefill is anticipated to last three months, with the cap and closure project to begin in spring 2016. The project, funded through general obligation bonds totaling $3.4 million, is expected to take approximately nine months to complete, once the project is approved by the Maryland Department of the Environment. The Public Works Solid Waste Division operates three homeowner convenience centers located in Berlin, Pocomoke and Snow Hill. Homeowners who purchase annual permits may dispose of household trash and recyclable goods at the HOCCs. Yard waste from commercial entities is not accepted at the HOCCs and should be taken to the central landfill in Newark.

Worcester extension office receives $1,000 grant

The Worcester County office of the University of Maryland Extension received a $1,000 grant from the Community Foundation of the Eastern Shore to support its “Farming: Pencil to Plow Program.” The Pencil to Plow program is a nationally recognized workshop for beginning farmers conducted by the National Association of County Agriculture Agents. It is designed for aspiring small farmers and those producers interested in diversifying their farming operations. This program allows new farmers to examine their business ideas and develop them into feasible farming endeavors that can be successful. Participants in the workshop will have a prepared business plan to present to lending sources in addition to a certificate of completion issued by NxLevel, a nationally recognized entrepreneurship training provider. The UME is a statewide, non-formal education system with the University of Maryland’s College of Agriculture and Natural Resources. The University of Maryland Extension is a source of research based agricultural technical information.

Exit strategy proposed for liquor control

A revised plan for Worcester County’s exist from the liquor business could have a $2.3 million financial impact.

During a Dec. 1 meeting the Worcester County Commissioners reviewed an updated exit strategy for the Department of Liquor Control. “There is still no way to wind up and terminate the DLC operations without having a negative impact, financial and employee-wise on the county. However, we have attempted to minimize those negative impacts with the revised exit strategy,” County Attorney Sonny Bloxom said. He said under the worst case scenario the shift will cost the county $2.3 million. The cost could be less depending on factors such as reducing or eliminating employee severance amounts and how quickly the county can sell or sublet its liquor stores. The DLC has four stores, one owned by the county with a mortgage of less than $40,000 and three that are leased. The “most problematic” is a lease for a store on 16th Street in Ocean City on which the county has eight years left. Additionally the county owns the DLC warehouse in Snow Hill, with a mortgage of about $465,000 on that building, and the inventory and equipment. The department has 19 full-time employees and two part-time workers in its wholesale, retail and administrative sections. Under its current operations, the DLC lost $492,554 in fiscal year 2015, exhausting a $400,000 departmental reserve. By cutting severance packages and eliminating leased retail spaces, the county may be able to reduce its losses to about $1 million, Bloxom said. The county intends to cease wholesale operations by Sept. 30, 2016 except to continue stocking county liquor stores and to liquidate remaining inventory. All remaining wholesale and retail operations will stop by June 30, 2017. The county will ask legislators to introduce a bill to allow a Class A beer, wine and liquor license store in the county, with the provision that no license can be issued within a 10 mile radius of an existing county retail store without the commissioners approval. Bloxom said the proposed plan will give the county t.he best chance of liquidating its inventory and selling or subletting the retail stores, while downsizing the number of DLC employees

Coastal Bays Program releases report card

The Maryland Coastal Bays Program has unveiled the 2014 Report Card, a detailed assessment on the health of the bays behind Ocean City and Assateague. The aim of this report card is to provide a transparent and geographically detailed assessment of the 2014 Coastal Bay’s health. Coastal bays health is defined as the progress of four water quality indicators and two biotic (living) indicators toward scientifically derived

ecological thresholds or goals. The six indicators are combined into one coastal bays health index, presented as a report card score. Overall, for 2014 the Coastal Bays received a grade of C+, the same as 2013. Improvements in Newport and Sinepuxent Bays were offset by declines in Assawoman Bay, while the other regions remained stable. The first collaborative effort of a report card which gave Maryland’s coastal bays a C+ grade was launched in 2008, finding sea grasses rebounding but still at levels little more than half of those seen earlier in the decade. The report card is a scientific collaborative effort between the Maryland Coastal Bays Program, University of Maryland Center for Environmental Science – Integration and Application Network, the Maryland Department of Natural Resources, and the National Park Service. Part of the National Estuary Program, the Maryland Coastal Bays Program is a non-profit partnership between Worcester County, the towns of Ocean City and Berlin, the National Park Service, the U.S. Environmental Protection Agency, and the Maryland Departments of Natural Resources, Agriculture, Environment, & Planning. One of only 28 such programs nationwide, the goal of the Maryland Coastal Bays Program is to protect and enhance the 175-square mile watershed, which includes Ocean City, Ocean Pines and Berlin, and Assateague Island National Seashore.

Financial report confirms county’s financial standing

An independent audit report shows that Worcester County’s financial statements are both complete and accurate due to the exercising of tight budgetary controls, Chris Hall of TGM Group, LLC, Certified Public Accountants met with the commissioners on Dec. 1 to review Worcester County Government’s annual financial report for the year ending June 30, 2015. Hall said the audit report shows that the county remains compliant with generally accepted accounting principles. Worcester County Treasurer’s Office officials recently completed the County’s Comprehensive Annual Financial Report for fiscal year 2015. This format, which adheres to the guidelines recommended by the Government Finance Officers Association, provides full accountability to Worcester County citizens and others with an interest in government finances. Worcester County Government remains compliant with the internal policy requiring that a reserve fund be maintained at a level equal to 10 percent of budgeted annual General Fund expenditures.

CAPTAIN’S COVE

January 2016Ocean Pines PROGRESS

CCG Note contends that the county has levied taxes on lots that were valued in excess of ‘fair market value’ By TOM STAUSS Publisher he apparent refusal of the Accomack County treasurer’s office to accept a proposed $272,597.43 check from two developer entities as an “offer in compromise” in mid-December to settle a protracted dispute over property tax valuations in Captain’s Cove and related property tax levies for multiple years has led to a decision by the developer to sue Accomack County. CCG Note LLC, the primary Cove developer/declarant, in late December, sued the Board of Supervisors of Accomack County to adjust tax assessments for years 2011 through to 2014 to reflect the “fair market value” of roughly 1,350 developer-owned lots in the Cove. The suit was filed in the Circuit Court of

Accomack County by a Virginia Beachbased law firm, Pender and Coward. The suit does not specify the fair market value of the properties at issue, declaring that the values will be proven “at trial.” The suit asks the circuit court to adjust taxes, interest and penalties “for the period 2011 through 2015 … in the amount of $400,000” or any such amount “as may be proven at trial,” to order a refund to be issued to CCG Note for amounts overpaid, with interest, and “to grant such further relief as this cause merits.” According to documents filed with the court, the plaintiff alleges that Accomack County has assessed the Cove lots at issue “at amounts that exceed their fair market value and/or are not uni-

form in application. The lawsuit cites the Virginia constitution’s mandate that “assessments of real estate and tangible personal property shall be at their fair market value.” The suit also cites a provision of the Code of Virginia, which specifies that all assessments “shall be made at 100 percent of market value.” The suit says the Circuit Court in the county in which an assessment dispute occurs, if it determines that an erroneous assessment has been made, but no tax paid, may order that the assessment be corrected and the “applicant exonerated from the payment of so much as is erroneously charged.” According to the suit, the Virginia Code also mandates that the court order a refund of any overpayments made, with interest. The suit alleges that the state tax as-

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sessor in 2015 adjusted the valuations of developer-owned lots in the Cove. In what amounts to the crux of the suit, the plaintiffs contend that the county ignored these adjustments by sending out tax bills on lots “not valued at their fair market value.” The suit also alleges the county’s assessments are not uniform in application, which, according to the developers’ offer in compromise, refers to the practice of “grouping of lots” or mass appraisal of certain kinds of lots. The plaintiffs contend that such mass appraisal fails to distinguish real differences between lots that are grouped together for appraisal purposes. The “offer in compromise” dated Dec. 14 was sent to Accomack County Treasurer Dana Bundick. Captain’s Cove property owner association President Tim Hearn, quoting Cove board member Jim Silfee, a principal in CCG Note, said that Bundick had not been responsive to Silfee when he contacted her to discuss the matter. She indicated unwillingness to discuss the matter until some other unspecified time, Hearn said, causing Silfee to conclude that she was not interested in a settlement. The only recourse was to the courts, he said. q

Developer sues Accomack County, asks court to adjust lot values and related property taxes

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Developer lawsuit From Page 33 The Cove property owner association has not joined the developer in its suit against the county, with the Cove board last year deciding to pay outstanding tax bills on their “full valuation” as determined by the county. The Progress in early January contacted Bundick for a comment on the offer of compromise and related matters. She declined comment other than to say that a report on the assessment controversy published in the December edition

contained inaccurate information that she declined to specify. She also declined to say for sure when she might be available for a comment. The December Progress reported that the treasurer’s office had not deposited checks totaling $37,000 from the Cove POA for property taxes from last year and previous years that had been in dispute. Hearn said there is “no conceivable reason” why the county treasurer is not depositing the checks sent to the county last year by the Cove POA. “She’s not giving us any answers. She’s not responding to us or our law-

yers, giving us any explanation at all for why she’s not depositing our checks,” Hearn said at the time. He said the Cove POA, which originally had sided with the developer in attempting to reduce assessed valuations on unimproved lots in Captain’s Cove from the traditional $4,000 to closer to $1,000, had decided to pay property taxes on Cove-owned lots on the county’s “full evaluation.” Hearn said the Cove POA changed its stance last year in reaction to criticism from some within the Cove year-round residential population that the Cove, in

disputing the higher lot valuation and declining to pay taxes on POA-owned lots based on that higher valuation, were in effect tax deadbeats, costing everyone else in the county more for government services as a result. In early January, Hearn said he wasn’t sure whether the county had deposited the checks submitted last year. The Progress report in December also quoted Hearn as saying that the county had not deposited checks related to the sale of Captain’s Cove Utility Company assets to Aqua Virginia, a major water q

34 Ocean Pines PROGRESS

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January 2016Ocean Pines PROGRESS Monday, Jan. 11 Budget and Finance Advisory Committee, OPA 2016-17 budget review, Ocean Pines Country Club, upper level, 10 a.m. GM overview, Ocean Pines Police Department, Public Works, Parks and Recreation, Yacht Club, golf. Tuesday, Jan. 12 Budget and Finance Advisory Committee, OPA 2016-17 budget review, Ocean Pines Country Club, upper level, 9 a.m. Capital budget, capital improvement plan. Wednesday, Jan. 13 Budget and Finance Advisory Committee, OPA 2016-17 budget review, Ocean Pines Country Club, upper level, 10 a.m. Committee decisions and recommendations. Friday, Jan. 15 Ocean Pines Boat Club Caribbean cruise, ten days. Port of departure is Bayonne, New Jersey – Royal Caribbean Anthem of the Sea. Stops in San Juan, Puerto Rico; Charlotte Amalie, St. Thomas; Basseterre, St. Kitts and Philipsburg, St. Maarte. Helene or Larry Caplan, Ship Ahoy Cruises, at 877-4827245 or hlcvc@att.net. Tuesday, Jan. 19 Ocean Pines Association, Board of Directors, 2016-17 budget review, Ocean Pines Country Club, 9 a.m. Allday session. Additional sessions possible. Genealogy Group, monthly meeting, 10:30 a.m. to noon, Ocean Pines library. Short presentation on “Getting around the Missing 1890 Census” followed by open discussion. Everyone welcome, from beginning researchers to experienced genealogists. Moderated by Tom Dempsey, past vice president, SCGS, and life-long researcher. Wednesday, Jan. 20 Retired Nurses of Ocean Pines, monthly meeting, 3 p.m., Ocean Pines Library. Carolyn Moore, Peninsula Regional Medical Center, presentation on “Humor is the Best Medicine.” 50/50 raffle for the scholarship fund. Guests welcome. Gale, 410-208-1590. Thursday, Jan. 21 Pine’eer Crafts club, monthly meeting, 9:45 a.m. refreshments, 10

Developer lawsuit From Page 34 and sewer utility operator with affiliates elsewhere in the country. At roughly the same time the Progress was circulated in December, Hearn sent out a press release announcing that the checks totaling several hundreds of thousands of dollars for fees related to the Aqua asset purchase were deposited by the county, roughly two weeks after they were paid. That effectively concluded the settlement process related to the asset sale, Hearn said.

HAPPENINGS a.m. business meeting and planning session, Ocean Pines Community Center. No craft this month. Saturday, Jan. 23 Ocean Pines Association, 2016-17 budget presentation, 9 a.m., Ocean Pines Community Center. OPA General Manager Bob Thompson. Sunday, Jan. 17 Italian dinner, sponsored by the Church of the Holy Spirit, catered by Carrabba’s, 4 to 6 p.m., at the church, 100th Street and Coastal Highway, Ocean City. Chicken Bryan, Penne Pomodoro, Caesar Salad, Focaccia Breadsticks, iced tea, lemonade and coffee. Desserts $1. Tickets $12, available at the church. 410-723-1973 or Monica at 443-2358942 for further information. Wednesday, Jan. 27 Valentines for Veterans, card collection deadline. Sponsored by Caring for America, a mission of the Republican Women of Worcester County. Cards will be delivered to Charlotte Hall Veterans Hospital, Baltimore Rehab Center, Baltimore VA Medical Center and Perry Point Hospital. Drop off new or homemade cards (no youth cards) at Shamrock Realty Group, Copy Central, the Ocean Pines Library and the Ocean ines Community Center. Thursday, Jan. 28 Ocean Pines Association, Board of Directors, monthly meeting, Ocean Pines Community Center, 9 a.m. Agenda posted on OPA Website before meeting. The Democratic Club of Worcester County, monthly meeting, 6:30 p.m., Ocean Pines Community Center Assateague Room. Demonstration by the Worcester County Board of Elections of the new voting machine to be used for the first time in the April primary election. Saturday, Jan. 30 Cooking class, with Ocean Pines Yacht Club Executive Chef Tim Ulrich, 2-3:30 p.m., Ocean Pines Community Center. Featuring football foods – preparation of dips, wings and more. Fee $40 for Ocean Pines residents and $50 for nonresidents, includes all materials and food. To register, call 410-641-7052, Ocean Pines Recreation and Parks Department. Tuesday, Feb. 2 Free investment seminar, Ocean Pines Community Center, 3-4 p.m., Carrie Dupuie, AAMS, certified financial investor, Raymond James. Topic: How to maximize Social Security income. Advance registration required, Ocean Pines Recreation and Parks Department, 410-641-7052.

Thursday, Feb. 4 Women’s Club of Ocean Pines, monthly meeting, 10 a.m., Ocean Pines Community Center. Discussions involved the proposed 2016-17 budget. Light refreshments, 50/50 raffle. Dianna Bolyard at 410-208-9326 or diannabolyard@yahoo.com. Saturday, Feb. 20 Cooking class, with Ocean Pines Yacht Club Executive Chef Tim Ulrich, 2-3:30 p.m., Ocean Pines Community Center. Featuring preparation of appetizers and desserts. Fee $40 for Ocean Pines residents and $50 for nonresidents, includes all materials and food. To register, call 410-641-7052, Ocean Pines Recreation and Parks Department. Tuesday, March 1 Free investment seminar, Ocean Pines Community Center, 3-4 p.m., Carrie Dupuie, AAMS, certified financial investor, Raymond James. Topic: potential benefits of market-linked notes. Advance registration required, Ocean Pines Recreation and Parks Department, 410-641-7052. Sunday, March 20 Mid-Atlantic Symphony Orchestra spring concert, 3 p.m., Community Church of Ocean Pines, $38 per person. Featuring Jean Ferrandis playing Mozart’s “Flute Concerto in G Major.” Also Faure’s “Fantasy,” Poulenc’s “Deux marches et un intermede” and Mozart’s “Symphony No. 39.” 1-888-846-8600 or www.midatlanticsymphony.org Ongoing Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers, the rest is provided. Annual memberships start at $150. Line dance classes, Monday and Wednesday, 9:30 -10:30 a.m., Ocean Pines Community Center. Beginners welcome. Betty Daugherty, 410-7261818, or bettydau@aol.com Pinesteppers Square Dance Club, Wednesdays, 7-9 p.m., Ocean Pines Community Center with caller Dennis O’Neal. Visitors welcome. The group also hosts a dance the fourth Saturday of the month from 7-9:30 p.m., Ocean Pines Community Center. Guest callers lead the dancers with music and choreography. Mainstream/Plus square dancers welcome to join in. President Arlene Hager, 302-436-4033. Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in. Lori at 410-251-2162 or tntandcompany@gmail.com.

Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday, Wednesday and Friday, noon to 2 p.m. All levels welcome. Eric Bowers, 410-208-1794. Suicide Grievers Support Group, 3rd Wednesday every month, 6 p.m., Worcester County Health Department, Healthway Drive, Berlin, adjacent to Atlantic General Hospital. Open to anyone who has lost a friend or loved one to suicide. Free of charge. Quiet listening, caring people, no judgment. 410-629-0164. The Kiwanis Club of Greater Ocean Pines – Ocean City every Wednesday at 7:45 a.m. in the Ocean Pines Community Center. Sanctioned duplicate bridge games, Ocean Pines Community Center, Sundays 1 p.m., Mondays noon, Tuesdays 10 a.m. Partners guaranteed. $5, special games $6. Third Sunday of every month is Swiss teams (no partner guaranteed for teams). Felicia Daly, 410208-1272; Pat Kanz, 410-641-8071 The U.S. Coast Guard Auxiliary, Flotilla 12-05, meets the first Monday of each month at 7:30 p.m. in the U.S.C.G. Station, Ocean City. Visitors and new members are welcome. Dennis Kalinowski, 410-208-4147. Web site http://a0541205.uscgaux.info. Kabbalah class with Saturday services, coffee, juice and bagels, 9:30 a.m., Saturdays, Temple Bat Yam, 410641-4311. Life after loss support group, second and fourth Tuesday of each month at the Community Church at Ocean Pines, 11227 Race Track Road, Berlin, 11 a.m. Help in coping with any type of loss. 410-641-5433. Worcester County Democratic Club meeting, fourth Thursday of each month, 7 p.m., Marlin Room of Ocean Pines Community Center. No December meeting. Club membership is not required. All those interested in Democratic platforms and agendas are welcome. Beach Singles, every Thursday, 4-6 p.m., Castaways, Coastal Hwy. at 64th Street, Ocean City, 45+ singles for socializing and monthly activities, 302436-9577. Republican Women of Worcester County, fourth Thursday of each month, 11 a.m. meeting, lunch at noon, local restaurants. Call membership chair Barbara Loffler at 410-208-0890. January through June, and September and October. Dinner meeting in November. YOGA, James G. Barrett Medical Office Building, Berlin, rotunda, Tuesdays 5:30-6 p.m. All levels welcome. Contact Georgette Rhoads at 410641-9734 or grhoads@atlanticgeneral. org with any questions. Cost: $72 for 8 sessions, or $10 drop-in fee for first time. T.O.P.S. of Berlin, Group 169, Atlantic General Hospital, Conference Room 1. Mondays 5-6:30 p.m. Take Off Pounds Sensibly is a support and educational group promoting weight loss and healthy life style, meeting weekly. For more information contact Edna Berkey, 410-629-1006.

36 Ocean Pines PROGRESS

January 2016

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OPINION

January 2016Ocean Pines PROGRESS

COMMENTARY Budget document offers mirror on future policy debates

dropped to below 20 as the result of the aforementioned cycle of life. Apparently some of the membership erosion is attributable to continued opposition within the membership base to the management change earlier this year, in which a slim board majority voted to replace Billy Casper Golf with LU. It doesn’t take a whole lot to push some golfers from their home course, a phenomenon hardly unique to any particular fiscal year. Not that many years ago, a proposed “trail fee” for golfers who prefer to walk the course over riding produced a mass exodus of golfers from the Ocean Pines membership rolls. No matter that the trail fee was never imposed. Members left anyway to greener fairways in the area because they didn’t like that the idea had even been proposed. According to a written summary of a recent quarterly meeting of LU executives and the OPA golf working group, consisting of the general manager, Bob Thompson, and three OPA directors – Pat Renaud, Tom Terry and Bill Cordwell – LU has agreed to look again at its membership growth projections. LU’s business plan included as part of this year’s proposed budget may be the company’s response to the working group’s entreaty to be more ambitious in its membership growth projections. It appears that the company is continuing to say that a net gain of ten individuals is realistic, despite the entreaties of the OPA golf working group. The LU business plan also contains an overt warning to OPA decision-makes about the condition of the golf course’s 2009 golf cart fleet. Essentially LU executives are telling the OPA that the fleet won’t last another year and should be replaced before April of this year. That means “unbudgeted” action would need to be taken in the current fiscal year. Imagine the outcry if the course reopens for play in the spring and the carts experience periodic breakdowns because the batteries that drive the carts are failing with regularity. Who, then, would be blamed

for the failures? The far more prudent action would be for the OPA to immediately take action to purchase (or lease) golf carts so they’re ready for use in April consistent with the LU recommendation. If the OPA continues to insist on being in the golf business, then it needs to accept the costs and responsibilities of that decision. The unavoidable fact is that maintaining a cart fleet is an important part of owning and managing a golf course. It’s an issue that can’t wait until the 2016-17 fiscal year begins this coming May 1. Of particular interest in Thompson’s budget draft for next year is the proposed capital improvement/ project list. Not unexpectedly, a capital project that has been strongly endorsed by Director Jack Collins – renovation of the bathrooms at the OPA’s Beach Club amenity, has not been included in the capital budget for next year. Collins vows a concerted fight to have money for the renovation included in next year’s budget. The explanation for the omission might be a very simple one. Thompson in his draft CIP wants to replace the Beach Club at an estimated cost of $3.2 million withn the next ten years. It could be he would prefer not to renovate a building he wants to tear down sometime before 2026. The proposed capital project list for next year includes $75,000 in engineering and planning money for an expanded police department, or perhaps a new public safety complex out on Route 589 as proposed by the general manager in his latest effort to craft a ten-year capital improvement plan for Ocean Pines. Here’s a thought for OPA policy-makers to consider: Why not unceremoniously nix any thought of a new police headquarters anywhere in Ocean Pines in favor of enlarging the existing space in the administration building, to include changing rooms and perhaps a renovated holding cell or cells for the occasional miscreant who passes through. Whatever the police department thinks it needs to operate more effectively, but without expending (i.e. wasting) OPA dollars on a new police building, should be considered. It shouldn’t be that difficult to redesign the existing space together with some additional square footage to meet the needs of the OPPD for the foreseeable future, at minimal cost to property owners. Of signficant impact on property owners is the proposed increase in the lot assessment in the GM’s proposed budget for next year. That’s unfortunate. Every effort should be made by the directors to maintain the existing $921 assessment, or even reduce it. CERTIFIED FINANCIAL PLANNER™ The OPA is collecting much more than Registered Representative is needed in its reserve funds -- funded depreciation of corporate assets (the Investment Advisor Representative historical reserve) and the supplemental Phyllis R. Mitchell Financial Services, Inc. five-year-plan (legacy) reserve -- to pay Registered Investment Advisor for a reasonable capital improvement plan over the next ten year. The bloated, fantastical CIP proposed Professional Plan Consultant™ by the GM is a political document intended to justify an increase in the lot assessInvestment Advisor Representative ment next year and the continuation of Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPIC, a Registered Investment Advisor. the five-year-plan (legacy) reserve. That M and H, Phyllis R. Mitchell Financial Services, Inc., and NPC are separate and unrelated companies. really is too bad. -- Tom Stauss

he proposed Ocean Pines Association budget for fiscal year 2016-17 served up by General Manager Bob Thompson and distributed to members of the Board of Directors Jan. 4 makes for some interesting reading, as most OPA budgets tend to do. Eyes glaze over with numbers that runneth over, of course, but the annual budget draft often contains references to policy matters that resonate throughout the year and longer. For those not averse to too much detail that can be processed at one sitting, the budget book is open for perusal by OPA members in the reception area of the administration building during normal business hours. Multiple trips may be necessary, as will a strong stomach and perhaps even a sense of humor. This year’s draft document is no exception. Particular attention should be directed to the business plans or rationales offered by various Ocean Pines amenity departments, notably the plan produced by Landscapes Unlimited, the contractor that assumed day-today management of the Ocean Pines golf course in May of last year. An initial iteration of the LU business plan as it pertains to rebuilding Ocean Pines’ sagging golf membership contained a rather unambitious target for membership growth next year – a net increase of only ten members. Given that there is some erosion every year of the membership base because of the advanced age of many Ocean Pines golfers – call it a local application of the cycle of life – a net increase of ten members must entail many more than ten individuals joining the ranks. Even so, a proposed net increase of only ten memberships is not particularly inspirational. As of March 2015, just before LU took over management of the golf course from Billy Casper Golf, there were 143 golf memberships in Ocean Pines. By September, that number had dropped to 116, a loss of 27, excluding lifetime members whose numbers have

38 Ocean Pines PROGRESS

OPINION

January 2016

An ambitious – and divisive – capital facilities plan renovating it would make more sense. The nearby cartbarn also is showing its age, but that, too, could be renovated An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs and updated if the will was there to do of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. it. By TOM STAUSS/ By TOM Publisher STAUSS/Publisher Thompson would be well advised to adjust his Country Club cost estimates downward. rooms in next year’s budget. Prospects future. Probably the most potentially controDone properly, a joint venture with are uncertain, with at least two directors advising OPA President Pat Renaud Seacrets, or some other restaurateur/ versial and divisive proposal in Thomprecently that they were opposed to the developer, should be cost-free to the son’s draft CIP is for a new administraCollins initiative. Renaud himself could OPA, which holds free and clear title to tion/public safety building that would be the swing vote; he will be subject to extremely valuable oceanfront property. house the Ocean Pines Police Departall sorts of pressure from both sides as Let the “partner” contribute necessary ment and a new Southside firehouse, in the directors wrestle with the proposal reconstruction funds, if indeed recon- addition to the OPA administration. The during 2016-17 budget discussions that struction is even warranted in the ten general manager proposes this for the two-acre, OPA-owned parcel on Route years covered by Thompson’s draft CIP. will begin shortly. Since there is no evidence that the 589 in front of the post office and library, Collins’ initiative is smart policy and smart politics should he decide, as many building is structurally unsound, or in adjacent to the Taylor Bank Ocean expect he will, to seek another three- need of replacement, the estimated $3.2 Pines’ branch. Mercifully, his draft CIP for the next year term on the board this summer. million allocated in the draft CIP should ten years does not include a cost estisimply be deleted. Even those who think that the Beach The same is true for the estimat- mate for this proposed new complex. Club someday will need replacement won’t be disturbed if the OPA decides ed $3.2 million to replace the Country But Thompson’s draft capital budget for to gut the bathrooms and replace them Club. An engineering report of a few next year includes $75,000 to study a with all new fixtures, appliances, floor- years ago said the building is structur- new “police center,” so who knows what ally sound, in need of new HVAC equip- might result from that. Millions of doling and the rest. Thompson’s updated CIP mentions ment, but that’s a far cry from saying lars, possibly, if the decision to build new the possibility that some sort of re- the building itself is unsound. As golfers trumps a simple addition. Here’s an idea: Instead of building a placement facility could be planned in have been saying for years, the building concert with the owner of Seacrets, the is in desperate need of a deep cleaning new police station, add on to the existing restaurant-nightclub located across and a concerted effort to deal with mold one and renovate it if that will improve Coastal Highway from the Beach Club, and mildew problems. Neglected general work flow concerns. The Southside and that’s an idea that could be pursued maintenance is no justification for tear- firehouse isn’t that old; whatever defects at some future date, in the far distant ing down and building new. Gutting and

LIFE IN THE LIFE INPINES THE PINES

ne thing that can be said about General Manager Bob Thompson’s updated ten-year capital facilities plan, sometimes called a capital improvement plan, is that it pulls no punches. It represents the GM’s unbridled preference for building new structures to replace aging facilities, some of which remain in decent shape today but are in need of updating. The Country Club and Beach Club are examples of buildings that could be renovated. Thompson’s draft CIP is biased toward replacement, and therein lies its weakness. Politically, a substantial number of Ocean Pines Association members prefer renovation over new, as evidenced by the fact that they fairly consistently elect directors who emphasized maintenance of existing facilities over tearing them down and starting over. The new Yacht Club, sad to say, reinforces the view that new buildings aren’t always an improvement over what they replace. It’s too bad that decades of neglect – especially in the area of rotting pilings – helped make a case for replacement. Among the current crop, Jack Collins, Tom Herrick and Dave Stevens are probably the directors least likely to endorse replacement of the Beach Club and Country Club with new buildings. Collins is leading the charge for renovation of the downstairs Beach Club bath-

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

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OPINION

January 2016Ocean Pines PROGRESS

GUEST COMMENTARY

Some arresting facts on diabetes and drunk driving By SLOBODAN TRENDIC Exclusive to the Ocean Pines Progress he recent headline in a local weekly newspaper, “Trendic DUI,” drew the attention of my friends and political supporters in Ocean Pines. They advised me not to keep my silence any longer, that the time has come for me to respond. The article says that I blamed high blood pressure as one of the reasons that caused my accident last year. This is NOT correct; the writer misquoted me. The medical records I provided during the trial this past summer showed my health history and treatments for Diabetes and Crohn’s Disease. I also disclosed the nature of my eight abdominal surgeries. The Honorable Judge found me “not guilty” on 14 charges including the two most serious ones, DUI (driving under the influence of alcohol) and leaving the scene of an accident. The Court found me guilty of the lesser charge of driving while impaired (DWI) by alcohol. The negligent driving charge was merged with the DWI charge. Local media prominently covered my accident with the unfortunate emphasis on the most negative charges. Luckily the Ocean Pines Progress decided to conduct its own research, reporting all facts including the discovery of my medical condition. The Progress representative also attended my trial thereby gaining even greater insight into the accident and the charges that resulted from it. Its own follow-up story reported many new facts brought up during my trial. For example, I was about to return to the scene of the accident with my personal note when a member of the Ocean Pines Police Department arrived at my house and found me in my other vehicle. Remember, this accident occurred just before midnight at the location that is half a mile from my home. My thought process was to get home as quickly as possible and get my diabetic condition under control. The Progress story also reported that I testified under oath at my trial that I informed the arresting officer of my two medical conditions and that I did not eat my dinner that evening. This information does not appear in the accident report. My testimony was not rebutted, refuted or even addressed by the prosecution. The above mentioned headline caused me to do some research in order to better understand what happened that night, and what could have caused the police officer to conclude that I was driving while intoxicated with alcohol. What I learned was eye-opening and revealed little known facts. I learned that my perceived “intoxication” was directly influenced by my diabetic condition that night. My Crohn’s Disease, consuming two beers during entire evening at the Yacht Club and not eating

The articles say that thousands of people suffering from diabetic conditions were falsely accused and convicted of drunk driving. Sadly, I have become a part of this unfortunate statistic. SLOBODAN TRENDIC dinner were contributing factors. The articles on sites like EMS1 and Diabetes Health say that more education is needed on false symptoms and breath readings associated with diabetes. The articles say that thousands of people suffering from diabetic conditions were falsely accused and convicted of drunk driving. Sadly, I have become a part of this unfortunate statistic. The articles state that the distinction between intoxication and diabetic emergency can easily be blurred. The research also shows that the similarity in symptoms caused by alcohol intoxication and low blood glucose levels is striking and commonly leads to easy but often false conclusions by law enforcement officers. Some of you might be thinking that I should have taken a Breathalyzer test when asked to do so by the police officer. Even the honorable judge told me that I might have not had to face the Court had I taken the test. The same thoughts crossed my mind after the arrest and in the months before and after the trial. But guess what my research later found. It turns out I made the correct decision after all. These breath-alcohol machines use infrared beams of light. The light beams are absorbed by any chemical compound in the breath sample (including ethyl alcohol) that contains the “methyl group” in its molecular structure. The more absorption, the higher the blood-alcohol reading. The machine is programmed to assume that the compound is “probably” alcohol. Assumption and probability become absolute certainty when Breathalyzer test results are entered into the court record. A well-documented byproduct of hyperglycemia is a state called “ketoacidosis” that causes the production of acetones in the breath. In other words, the Breathalyzer will read significant levels of alcohol on a diabetic’s breath, where in fact there may be very little or none at all. My final discovery was the scientific article titled “Hypoglycemia: Driving Under the Influence” published in Medical and Toxicological Information Review which reported the following: “Hypoglycemia (abnormally low levels of blood glucose) is frequently seen

in connection with driving error on this nation’s roads and highways, including accidents with personal and material damage. Even more frequently are unjustified DUIs or DWIs stemming from hypoglycemic symptoms that can closely mimic those of a drunk driver. “Actually, you don’t even need to be a diabetic to display hypoglycemic-induced symptoms of intoxication. Perfectly normal, healthy individuals can experience temporary conditions of low blood glucose after consuming small amounts of alcohol, resulting in exaggerated but false symptoms of intoxication. “Fasting glycemia can exist if a person has not eaten in 24 hours or has been

Life in the Pines From Page 38 that exist can be dealt with the oldfashioned way: consistent maintenance and upgrades that are planned for and completed over time. And the OPA administration can stay right where it is for decades into the future with little inconvenience to OPA members. In his draft CIP, Thompson identifies a need for more meeting space and addresses what he says is a conflict in the Community Center between more active pursuits and more sedentary activities like group meetings and cardplaying. His solution is to move the more sedentary activities to a repurposed administration building after the police department and the OPA administration are relocated to the proposed public safety complex on Route 589. That, of course, is an extremely expensive way of dealing with a “problem” than can be solved much more easily and with a lot less cost. A better solution is to renovate the upstairs of the Country Club to create the meeting room space Thompson wants to carve out of the administration building. The general manager also envisions creating a fitness center and locating it in the Community Center’s Assateague Room. He would eliminate the kitchen that OPA members paid for with their assessment dollars a few years back; some organizations use the kitchen for community dinners that take place

on a low-carbohydrate diet. Production of glucose in the liver is stopped while the alcohol is broken down. Result: The blood glucose level will drop, affecting the central nervous system—and producing symptoms of a person who is under the influence of alcohol.” Some of you may ask what I have learned from my accident. Well I hope never to face this situation again. But if I do, I will not self-medicate. I will call 911 and ask to be taken to an emergency room for medical treatment and get a sample of my blood drawn. Only the blood test results can provide accurate level of alcohol and clear innocent people from getting the drunk-driver rap. Some of you may also ask, what compelled me to write this commentary. I wanted to share my own experience and my findings with all members of our community, the residents that might have similar health issues, members of our local law enforcement and judicial system, and our great EMS teams. Better public awareness and understanding of this issue may save innocent people from facing similar incidents and encounters with the criminal justice system. throughout the year. He would replace the kitchen and a nearby bathroom with locker room/changing facilities for men and women using his proposed fitness center. With all due respect to the GM, the idea of eliminating the Community Center kitchen is a non-starter. There is no need to inconvenience the local organizations that use it to the benefit of Ocean Pines residents. An OPA-run fitness center is not exactly a top priority given the large number of gym facilities run by private enterprise in Ocean Pines, West Ocean City and Ocean City. Let the private sector continue to provide this service. The capital projects identified in Thompson’s draft CIP already are close to costing an estimated $30 million over ten years; it won’t take an advanced accounting degree to pare it down significantly. A new $3 million aquatics center, a $350,000 fitness center in the Community Center’s Assateague Room, and $1.2 million in more golf course drainage are among those capital expenditures that can be axed, while barely breaking a sweat. Thompson’s last stab at a CIP, in November of 2014, never was adopted by the Board of Directors; in fact it was barely discussed. The updated draft deserves a better fate this time. Let the OPA host town meetings and the board conduct a special meeting or two to debate it. And then pare it back to something far more reasonable.

40 Ocean Pines PROGRESS

January 2016

Troy Snyder

JUST TEN MINUTES FROM OCEAN PINES

Cell: 410-726-5889 Work: 410-835-8338 Email: tsnyder@prestonmotor.com

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