March 2023 Ocean Pines Progress

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OCEAN PINES GOLF CLUB

The Ocean Pines Association on Feb. 15 issued a request for proposals from local and regional law firms to provide a wide range of legal services. The deadline for submission of proposals, that include answers to an extensive questionnaire, is March 15.

Proposals are due back to OPA General Manager John Viola.

Jeremy Tucker, the OPA’s legal counsel for the past five years or so, is eligible to submit a proposal and is expected to do so. He is an attorney with Lerch Early and Brewer, a Bethesda, Md. law firm.

~ Page 9

Parks pivots on amenity policy

Ocean Pines Association President Doug Parks is pivoting away from portions of a Board Resolution M-02 amenity policy revision unveiled by his predecessor, Colette Horn, at the January Board meeting.

As an alternative, he is suggesting that at least some of the proposed changes, or variations of them, be included in an amenities rules book maintained by the general manager.

Parks subsequently told the Progress that the pivot away from M-02 in the amendment package is under review by an OPA working group.

~ Page 13

INSIDE THIS EDITION

Ocean Pines .............. Pages 1-25 OPA Finances .......... Pages 26-37 Lifestyles .................... Page 38-39 Opinion ..................... Pages 40-41 Captain’s Cove ......... Pages 42-55

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COVER STORY

Elections Committee urges return to all-paper ballots for Board of Directors vote more likely than not to prevail if case tion, says former OPA director Judge Oglesbu grants temporary injunc-

Janasek ban ‘bad faith’ in

Aty acted in

majority that a Worcester County Circuit Court tion of “bad faith” against a Board of Directors nother case, another day, another determinaPublisher

By TOM STAUSS

BoardJudge majorisays former proceeds to next level

Elimination of electronic voting likely in this summer’s OPA election

By ROTA L. KNOTT Contributing Writer oters in the August 2023 Ocean Pines Association election for the Board of Directors will likely be casting their ballots the old-fashioned way -- on paper. Tasked with reviewing problems with the 2022 election that resulted in a 940-vote error, the reconstituted Elections Committee is recommending elimination of electronic voting, at least for 2023, and a return to paper-only ballots this year.

In presenting an update regarding the status of the Elections Committee’s investigation into glitches with the voting system and pending recommendations, Chairman Tom Piatti told the Board during its Feb. 18 monthly meeting that cheap paper, folded ballots, and an inappropriate scanning system were to blame for

V

the initial bad ballot count during the 2022 election.

That, coupled with challenges of providing a way for owners of multiple lots to cast multiple ballots electronically, hindered the voting process, he said.

Piatti argued that those problems could all be addressed by returning to the way the voting used to be handled – Tom Piatti on smaller sized, heavy card stock paper ballots with property owners getting a physical ballot for every lot they own and scanning of the ballots to record the votes.

He said the Election Committee suggested doing away with electronic voting completely.

To Page 3

Board approves budget with $13 assessment decrease ~ Page 26

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NO COVER!

COVER STORY From Page 1 “It doesn’t work,” he said, adding that it possibly disenfranchised some owners of multiple lots.

When they cast a vote on-line, it was supposed to have been “weighted” for the number of lots owned. But there is no way to confirm that, and some owners of multiple lots ended up requesting additional ballots to ensure each lot had a voice in the election.

Another problem with last summer’s election is that those who cast paper ballots that were counted using the OPA’s malfunctioning scanner did not receive multiple ballots if they owned more than one lot.

This, too, could have led to a degree of disenfranchisement, according to Piatti.

During the Feb. 18 meeting, some directors charged Piatti with having made up his mind to do away with electronic voting prior to even being appointed as chairman of the repopulated committee.

Committee members who handled the election count last summer resigned en masse when criticism of their performance surfaced on social media and elsewhere.

But there’s evidence to suggest that this critique of Piatti was unfounded.

He told the Progress shortly after the election

that he would be attempting to find a vendor who could handle on-line voting that could produce a paper trail in the event of a recount. That effort is continuing but so far has been unsuccessful, Piatti said in a recent email.

The lack of a verifiable paper trail that could accurately account for on-line votes is another reason the committee is recommending eliminating this method of voting, possibly for good.

Director Colette Horn said that before the new Election Committee was even seated, she had heard that the person who would become the chair, Piatti, had already decided that electronic voting should be stopped.

She said there has been no analysis of any errors in the last election that were due solely to electronic voting or of what could be done to improve the efficiency of online or phone voting.

Further, Horn took issue with Piatti’s claims that reverting to the old paper ballot process and acquiring new scanning software would address the problems of the 2002 election.

“You’ve presented me with no convincing evidence that is the case,” she told him.

Director Steve Jacobs said the success of online voting in the election was indisputable based on the number of property owners who used it.

He said the Elections Committee has no reason to suggest it be eliminated.

“Folks, we’re in the 21st Century,” he said. He

recognized that not everyone has a computer and can vote electronically, but those who do should be allowed to vote that way.

During the meeting, Piatti said the online voting created more work for the Elections Committee because each week the contractor would have to collect the returned ballot envelopes and scan them.

He clarified that the contractor didn’t open the ballot envelopes but compared the identification numbers to those for votes cast electronically.

That report was transmitted to a second party contractor to compare the list of physical ballot returns against those properties for which votes were cast online. Any duplicates were set aside.

“That process happened every week,” Piatti said.

He also said there is the potential of “spillage” of personal data with electronic voting. Those challenges were another reason the committee is recommending doing away with online voting.

Piatti said the OPA disenfranchised multiple lot owners because of the way the electronic voting system was designed for the 2022 election.

A total of 479 multiple lot owners cast ballots electronically, and their votes were weighted according to the number of lots.

However, if they voted using the paper ballots, they could cast different votes for each of their To Page 5

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COVER STORY Elections Committee

From Page 3 properties – but only if they asked for multiple ballots. They were mailed a single ballot, he said, an omission that will not be repeated this summer.

Piatti said at the meeting that the paper ballots can be printed on heavier card stock in a smaller size that would eliminate opaqueness and the need for folding.

As for how to conduct the vote count, he said he needs to talk with the OPA’s IT team about that.

He said having the IT staff involved may be one option and another is to contract out the ballot counting and have it overseen by the Elections Committee.

Ace Printing and Mailing of Berlin, which has been involved in preparing election materials for OPA elections for more than 20 years and has been involved in counting ballots some years, is the most likely vendor to be hired if the committee goes that route.

Director Frank Daly asked if the Elections Committee knows the total number of lots that voted in the 2022 election.

“We do have that answer,” Piatti responded, but never actually gave the number. Instead he said he understands everyone’s concern about the 940 vote error in the vote count last year and said confidence in the election process can be returned to the community by going back to paper ballots only.

Actually the number of lots that voted was included in the former committee’s report issued after the election, and was cited by the new committee in its latest report.

Daly said if the number of votes cast are less than the number of lots that voted then there is no problem. But if the number of lots is less than number of votes then there is a problem with the process.

“That is one number I’d like to see,” he said.

Jacobs said the problem was with the hard copy voting, not the electronic voting, and the OPA runs the risk of disenfranchise people at a time when it should be encouraging them to vote.

“It is just counterintuitive in any way you look at it,” he said of eliminating electronic voting.

Jacobs said its counterintuitive to close that off the portion of the voting where there wasn’t a problem with that part of the ballot count.

The real problem was how to allow

March 2023 Ocean Pines PROGRESS 5 multiple lot owners to vote differently for each of their properties and maintain security, and those are areas that can be addressed by working with the vendor, he said.

To say there may be a problem in the future and therefore the OPA should abandon electronic voting “makes no sense at all,” he said.

OPA President Doug Parks said that the online voting “was pretty accurate” but added that he is concerned about the idea of weighting the ballots of multiple lot owners.

“If you have six properties you get six ballots, in my opinion,” he said.

“If the online system can’t address that then it should be tossed.”

Piatti later told the Progress that the committee has not found a vendor that can handle multiple ballots online as suggested by Parks.

Parks said he believes the OPA should offer electronic voting at some point, but it’s now February and the OPA needs to put in place a process for the 2023 election.

He said he was comfortable with the OPA returning to all paper ballots this year, but said it should promote electronic going forward.

Daly said as far as electronic vot-

ing is concerned, he’s agnostic. He just wants to ensure that voting of any kind has “total trackability.”

He said he is more concerned about how the vote count was so far off last year in the process the OPA has used for years, the paper ballots.

“The critical thing in an election is every legitimate vote is counted,” he said. “And clearly that did not happen.”

He said he’s not sure this problem hasn’t existed prior to the 2022 election.

Before the Board certifies the To Page 7

6 Ocean Pines PROGRESS March 2023

COVER STORY Election Committee

From Page 5 next election, Daly said he will want to know how many lots voted and have a comparison with the vote count.

Director Stuart Lakernick thought Piatti made good points about the challenges with the paper ballots, but concurred that the larger issue is that members didn’t get a separate ballot for every lot owned.

He said it makes sense to proceed with a traditional paper ballot election in 2023 and have the Elections Committee look into reinstituting electronic in 2024 without weighting the ballots for multiple lot owners.

“I’m good with his report,” he said of Piatti’s presentation.

“I realize that we are late,” Horn said, conceding that this summer’s election probably has to be conducted using only paper ballots.

Parks concurred, saying “perhaps we should go back to what worked” for this summer’s election and encourage the Elections Committee to continuing pursuing options for improved electronic voting.

March 2023 Ocean Pines PROGRESS 7

Horn, Jacobs critique committee for slow progress on ‘deep dive’ into 2022 election woes Chairman fires back, says answers to Board questions were provided

By ROTA L. KNOTT Contributing Writer ith some members of the Board of Directors taking to task the Elections Committee for not moving more quickly to make recommendations for ensuring the August 2023 will not be bungled like last year’s vote count, Committee Chairman Tom Piatti fired back during the Board’s Feb. 18 monthly meeting.

He said the committee is working as fast as it can, and that committee critics need to keep in mind that all of the members are new.

He said they “had to dig in and do a lot of research” to learn about both how the 2022 Board election process was handled and the

W

scanning equipment used to conduct and count the votes.

He said that answers to questions posed by the Board have been answered by the committee.

Following the resignation of the former Elections Committee members who were seated during the 2022 Board election, the Board appointed a new group of volunteers.

The new committee members were tasked with investigating and providing findings to the glitches in the voting scan system, tabulation of the votes from the last election, and making recommendations to prevent the same problems from happening in the future.

Piatti said the first task was to determine u

Colette Horn

Steve Jacobs

8 Ocean Pines PROGRESS March 2023 Committee critique From Page 7 why there was 940 vote error in the August 2022 election.

That vote error was actually determined by the previous election committee, he said, adding that it was due to double counting on the paper ballots due to bleed through on the light paper stock and because the ballots had to be folded in by placed in the return envelope.

At the behest of the Board, the committee then moved on to studying the systems and processes used to conduct the last election to determine where and understand why the breakdowns occurred.

Piatti said one of the first things the committee did was to meet with the OPA’s IT department to set up the scanner used to count the ballots and to go through that process.

He said the IT staff pointed out several problems with incompatibility of the software and equipment used to scan the ballots as well as the paper on which they were printed.

In 2022 the ballots were changed to an 8 x 11 pieces of paper, when in the past they had been printed on a heavy card stock. That allowed for some bleed through of votes that were then read multiple times by the scanning software.

That larger paper ballot also had to be folded in the mailing envelopes and straightened out for scanning causing errors.

Those are the reasons for the 940vote error in the 2002 election, Piatti said, adding that was discovered by the previous Elections Committee and they reported it to the Board.

Piatti said the new Elections Committee also reviewed years of historical documents, holding multiple work sessions and digging through filing cabinets.

The committee also talked with the printing contractor who has been printing and mailing the OPA’s election ballots for decades.

Another review was completed of the vendor of the software used to count the ballots, Snap Surveys.

Piatti said the software is an optical character read for use with surveys, not an optical mark reader that is necessary to accurately count ballots.

He added that prior to 2022, the OPA also used a different scanner.

“We still have one more thing to do. We have to meet with the IT department,” he said, regarding new scanning software.

OCEAN PINES Piatti said the Election Committee was not lagging behind in its duties but added that it was difficult to work during the holiday season. Still, he said it submitted its initial report to the Board on Nov. 15, well before the Dec. 1 deadline.

The Board then sent the committee more issues to investigate and questions to answer. “So we went back to work,” he said.

On Jan. 19, the committee rendered a second written report through its Board liaison, Rick Farr.

That report was specific to addressing the ballot count and online voting. “We think we answered both,” he said.

Not all Board members agreed.

“What we asked to have done was not done by this committee,” Director Colette Horn said.

She argued that the Board asked the committee to look at all of the sources of voting, determine where the errors were, and what could be done to prevent them from happening again.

“We got nothing,” she said. “I’ve lost confidence in this committee.”

She said the Board should look at the composition of the Elections Committee to make sure have it has the correct people on the committee.

Director Steve Jacobs said there is nothing in either of the Elections Committee’s two reports that suggests the committee talked to either the current vendor or any new vendor to address the electronic voting software problems to ensure the count is accurate.

“We have a potential problem but no discussion as to how to solve it with the current vendor or any prospective vendors,” Jacobs said.

He said he wasn’t even clear what exactly Piatti was presenting to the Board. He charged the committee with primarily doing Google searches about software vendors.

He said the committee may be right that it may not be the appropriate vendor for scanning the election ballots, but he said it was inappropriate to suggest a return “to pulling stuff out of filing cabinets” based on a Google search.

Jacobs was concerned about the Elections Committee holding meetings that were not open to the public and not posted.

He questioned whether the committee did the “deep dive” into the 2022 election problems that the Board requested.

“I’m not convinced that we have answered any of the questions that came up,” he said.

Instead the committee has created a new controversy by suggesting doing away with electronic voting, he said.

“We got a lot of information from that committee,” OPA President Doug Parks countered. ““To paint them as having done nothing is a little disingenuous,” Parks said.

Horn tried to cut him off, but Parks repeatedly called her out of order. It was a discordant note in the meeting. Parks is Horn’s successor as OPA president Horn told Parks she didn’t say

the committee “did nothing” but that the committee didn’t do the job assigned by the Board.

Most of the committee’s findings are based on work done by the prior election committee, she said.

She called out Parks for telling the previous Elections Committee members they could not talk with the OPA’s IT staff to try to resolve the issues that plagued the last election. That led to the resignation of the entire committee, she said.

Aside from the election challenges, Director Frank Daly said the Elections Committee’s slow progress is holding up another voting process, that of amendments to the declaration of restrictions in many sections of Ocean Pines.

He said the OPA needs to “move on that” but needs to make sure it has a system in place for the voting.

Daly pointed out that legal restrictions may prohibit electronic voting on changes to the restrictive covenants so that is not at issue.

And, he said, that process doesn’t involve the Elections Committee so there is no reason to continue holding up that process. He asked that the Board decide in the next 30 days whether to proceed with the vote of DR changes.

Joining in the critique of the committee during the Feb. 18 meeting was former director Amy Peck, who during the Public Comments segment said for months there had been nothing made public by the committee about the status of its probe into last summer’s election.

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OPA shopping for legal services Deadline March 16 for submission of proposals; some directors prefer local representation

By TOM STAUSS Publisher he Ocean Pines Association on Feb. 15 issued a request for proposals from local and regional law firms to provide a wide range of legal services. The deadline for submission of proposals, that include answers to an extensive questionnaire, is March 15.

Proposals are due back to OPA General Manager John Viola.

Jeremy Tucker, the OPA’s legal counsel for the past five years or so, is eligible to submit a proposal and is expected to do so. He is an attorney with Lerch Early and Brewer, the Bethesda, Md. law firm, who succeeded Ocean City attorney Joseph Moore.

The decision to solicit proposals for legal services reportedly had the support of all seven members of the Ocean Pines Association Board of Directors, who did not meet in open session to vote on the matter.

It is considered fairly routine for the OPA every five years or so to solicit proposals for various professional services, which otherwise are routinely extended each year when a new Board is organized after the August election.

The Progress has learned that at least some OPA directors are open to considering proposals from local law firms, with Bruce Bright, an Ocean City lawyer with the Ayres, Jenkins, Gordy and Almand law firm among those they hope may be submitting proposals.

Bright has a record representing clients who have defeated the OPA in various legal battles, including current director Rick Farr and former directors Tom Janasek and Slobodan Trendic.

According to the RFP, proposals will not be opened until after the submittal deadline.

The OPA reserves the right to reject any or all proposals, to request additional information concerning any proposal for purpose of clarification, and to accept or negotiate any modification to any proposal following the deadline for receipt of all proposals.

The RFP says the successful candidate will: • Represent and advise the Board of Directors, the General Manager and assigned staff in all matters of

T

law pertaining to their office. Give advice or opinion on the legality of all matters under consideration by the Board of Directors, General Manager or by any officers of the Association.

• Attend and represent the Asso-

ciation’s legal interests at periodic Board meetings (including closed sessions and Board workshops), and other meetings on an as needed basis specified by the Board or General Manager.

• Provide legal opinions, advice,

assistance and consultation to the Board of Directors, General Manager and Association staff related to Maryland law issues, including the Maryland Homeowners Act, contracts and franchises, real estate u

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the existing building, renovating the the working group include razing conduct a capital campaign Options under consideration by Pines Association’s in the smaller footprint. ability to feasibility of the Ocean ity of the original study floor plan retained Contributing square feet, Writer with all the functionalBy ROTA L.size KNOTT building’s from 18,000 to 13,000 million work group was able to reduce the To make plummets this possible,to the$5.7 OPA building cantly to $5.7 million.

Estimated size, cost signifi of at $8.6 million, had dropped the building, originally estimated Advisory Committee that the cost of ing of the OPA’s Budget and Finance disclosure during an Oct. 27 meetpaign may have improved with a Prospects for a successful camproject in the community. gauge the level of support for the for a fundraising campaign and to derstand the association’s potential conduct the feasibility study to unProposals seeking a consultant to members developed a Request for representatives, and community Pines Volunteer Fire Department A work group of OPA staff, Ocean get under way in mid-November.

Southside Firehouse is expected to to help fund construction of a new

fundraising Firehouse Southside new line for ifies timeViola clar-

From Page 9 and property transactions, land use, environmental law, public improvements/capital projects, code enforcement, pending and current state and federal legislation and court decisions, tort liability and risk management, fees, taxes, assessments, personnel, human resources, collections of past due assessments and other matters as directed.

• Provide training and/or advice to the Board of Directors, General Manager and Association staff related to the Maryland Homeowners Act. • Review resolutions, staff reports, contracts, deeds, leases, and other legal documents required by the Association.

• Prepare legal opinions for Board of Directors, General Manager and others as directed.

• Coordinate legal activities with other Association and outside agencies.

• Provide written updates to new state or federal legislation or judicial decisions and suggest action or procedures to ensure compliance.

All proposals must provide specific and succinct answers to all questions and requests for information.

“Indirect, imprecise, or incomplete responses can serve only to the disadvantage of the applicant.

Answer the questions in the format and order presented,” according to the RFP. In a detailed questionnaire, applicants are asked to list all cases in which they were retained either for a Defendant or a Plaintiff in which Ocean Pines Association, its directors or general manager, and partners, principals, and associates who

may be assigned to work with the Association, It is anticipated that the Association will expect the selected firm to provide a system wherein “general” services are provided under a fixed monthly retainer and any additional “special” services are billed at pre-negotiated hourly rates.

In reviewing the proposals, the Board’s evaluation committee will weigh the following factors: • Responsiveness to the information requested in the RFP. • That the firm has no conflicts of interest about any work performed by the firm for the Association, and all potential conflicts have been identified.

• Proposed solutions to the specific legal needs of the Ocean Pines Association.

• Depth and breadth of experience and expertise in the practice of law, most specifically in those areas most often encountered in Homeowners Association operations.

• References.

• Range and quality of services provided by the firm.

• Capability to perform legal services promptly and in a manner that permits the Board of Directors, General Manager, and staff to meet established deadlines and to operate in an effective and efficient manner.

• Degree of availability for quick response to inquiries that arise out of day-to-day operating questions or problems.

• Degree to which firm and individual attorneys remain current through continued professional development and active communication with practitioners in the HOA law field.

• Communication skills, and To Page 13

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Parks pivots on guideline revisions for amenity use

OPA president says appeal process for aggrieved property owners will be considered to comply with new state HOA law

By TOM STAUSS Publisher cean Pines Association President Doug Parks is pivoting away from portions of a Board Resolution M-02 amenity policy revision unveiled by his predecessor, Colette Horn, at the January Board meeting. As an alternative, he is suggesting that at least some of the proposed changes, or variations of them, be included in an amenities rules book maintained by the general manager.

The proposed changes in M-02 didn’t make the agenda of the Feb. 18 Board meeting, but Parks subsequently told the Progress that the pivot away from proposals in the amendment package is under review by a working group of department heads and General Manager John Viola.

“Rather than amend M-02, let’s look at the GM’s rule book and see if that might not be the better place for some of these changes,” he said.

Following the January Board meeting, Parks outlined some issues he had with the proposed changes unveiled by Horn.

One is a new rule that limits group usage of OPA facilities to groups that are comprised of a least 60 per cent Ocean Pines residents. He wondered how the OPA could enforce that rule, because percentages of Ocean Pines membership in

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say, a card group, might fluctuate from meeting to meeting.

He also said he has concerns about a new policy procedure proposed by Horn to deal with unruly behavior at amenities in Ocean Pines. It establishes a new procedure in which the Board of Directors would be empowered to suspend members from amenities for poor behavior.

“I’m very sensitive to the Board’s policy role versus taking on an operational role,” Parks said, suggesting that OPA governing documents specify that amenity managers and the OPA general manager have the power to deal with behavior issues at the amenities.

These same governing documents also limit amenity suspensions to non-payment of association assessments and ongoing compliance infractions involving violations of restrictive covenants and guidelines administered by the Architectural Review Committee and the Department of Compliance, Permitting and Inspections.

Poor conduct by a member is not listed as a reason for suspending a member. Current procedures allow management to escort a member who is behaving poorly to be escorted off the premises.In a Feb. 21 telephone interview, Parks said that sensitivity to the Board not taking on a role best left to management is the primary reason he

March 2023 Ocean Pines PROGRESS 13 suggested the pivot to the GM rule book.

At the same time, he acknowledged a new state law mandates that homeowner associations in Maryland set up an appeal process for property owners aggrieved by management decisions that could include a GM-imposed amenity suspension.

“The chances of some sort of appeal process are Doug Parks probably pretty good,” Parks said. If it turns out that the Board of Directors is the body that considers appeals of management decisions, then it becomes a matter of at “what point does it become a Board issue.”

Parks previously had expressed concern “that [by giving the Board a formal role in activity that could lead to a suspending a member] we could be creating an internal conflict [between M-02, the amenity policy, and governing documents]. Maybe the Board shouldn’t be trying to inject itself into a process best left to operations personnel.”

He said in the recent litigation involving former Director Tom Janasek, who had been suspended from access to certain amenities by a Board majority, the judge said “stick to what’s in the by-laws” in its amenity policies.

Parks said that perhaps a “different procedure” could be drafted to deal with situations that led to a short-lived suspension for Janasek before it was lifted by the Court.

“I can’t see supporting it [the proposed Board role] as it is written,” he added. “We have a lot on our plate. We should be avoiding any new procedure that is usurping the role” of management.

A pivot to amending the GM’s amenities rules may be a way to resolve the dilemma, Parks said.

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Horn suggests $75 charge for contractors registry Directors balk at fee-based proposal but may support free listing

By ROTA L. KNOTT Contributing Writer proposal to create a paid registry of licensed contractors maintained by the Ocean Pines Association was shot down by a majority of the Board of Directors during a Feb. 18 discussion. However, most directors also supported the concept of a simple list of contractors that the Compliance, Permits, and Inspections office could hand out to property owners looking for someone to do work for them.

Director Colette Horn presented the proposal for consideration of a voluntary fee-based licensed contractor registry to the Board for discussion.

As background, Horn said there has been discussion among the Compliance Permits and Inspections staff and Architectural Review Committee members regarding the problem of work being done in Ocean Pines by contractors that are thought to be unqualified.

She said those individuals present themselves as qualified for new home construction, renovation or home improvements, installation of docks and lifts, and tree services when in fact they are not.

Horn noted two primary concerns, that the CPI may be unknowingly issuing permits to non-compliant contractors who are not meeting state and county licensing requirements, and that work is being done in a way that does not meet codes.

She contended that the ARC Guidelines specify that permitted work in the community must be done by a licensed contractor per Worcester County Law. While the ARC applies this requirement in its review of applications u

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OCEAN PINES for permits, the application itself does not require that the licensing and insurance status of the contractor or builder or any subcontractor trades be included in the application.

While the restrictions absolve ARC of any liability for defects in work done in accordance with any plans they approve, property owners are on their own to protect themselves from unwarranted work by contractors.

To help property owners find licensed contractors, Horn proposed the institution of a fee-based contractor permit process. Under her proposal, contractors would pay an initial $75 fee for CPI to verify their licensing and credentials, and a $50 renewal fee. They would then be included on a list of vetted contractors provided to property owners. The proposed registry was to contain a disclaimer about any endorsement of the work of contractors listed, she said.

Horn said she talked with several contractors who were enthusiastic about the proposal because it would get their names in front of Ocean Pines property owners as people with the proper credentials to do work. She said it would offer residents protection against people doing unlicensed and unwarranted work. “We can provide homeowners with a list of contractors whose credentials have been verified,” she said.

The list would reside in the CPI department, where it would be updated and where the funding would go to supplement its budget.

“I think this creates an overreach by this board,” Director Stuart Lakernick said. He said he talked with three contractors who were opposed to the proposal and argued that the fee would simply be passed on by the contractors to homeowners, who are adults and can do their own research to find a suitable contractor.

“This is not a requirement; it’s voluntary,” Horn responded.

But that didn’t convince Lakernick who asked what happens if a contractor on the registry does shoddy work. He said having a fee-based registry may open up the OPA for legal recourse from property owners if that occurs.

Still, Horn said the registry would not be an endorsement of those contractors on it but simply a verification that they have the proper credentials to do work in Ocean Pines.

“It’s just a registry, not a license,” she said. Additionally, Horn

March 2023 Ocean Pines PROGRESS 15 said there is no requirement on the OPA’s permit application for a contractor to submit their credentials.

Director Frank Daly pointed out that property owners need to get Worcester County permits before they secure approvals from ARC and the county verifies the contractors’ licensure.

“So when they come with a county permit to Ocean Pines we know they are licensed. Therefore, there is no need for CPI to do so,” he said.

Further, Daly said if an unau-

thorized contractor does work in Ocean Pines the OPA would have trouble enforcing any requirements.

The only recourse is that they will not get ARC approval if plans don’t meet the guidelines.

“It’s not so much an overreach,” he said. “It’s something we can’t enforce.”

He added that he might support a simple sheet of paper listing contractors that could be handed out to property owners.

Horn responded that’s exactly

what the registry would do.

Director Monica Rakowski supported the proposal, saying “It’s a service. As long we’re not legally bound by that information, it’s voluntary. I don’t have a problem with it.”

OPA President Doug Park wasn’t so enthusiastic. “I have a strong feeling about not ever introducing any risk to the association,” he said, adding that he believes the registry would be an implied endorsement To Page 17

16 Ocean Pines PROGRESS March 2023

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Contractor registry From Page 15 by the OPA of contractors on the list.

“I don’t want to see us have to be involved in people’s personal decisions on what contractor the use for the work that they want done. Period. I want to stay as far away from that as possible,” he said.

Parks said the fact that they must pull a county permit and their licensure is verified at that point is good enough for him.

“I do not want to the have the Board or OPA involved in personal business decisions for homeowners,” he said, but he added that he might be able to support a free listing that is offered to community members.

Director Steve Jacobs said he likes the idea of providing a level of consumer protection, which seems to be the goal of the proposal.

But, he agreed that this can be offered by CPI simply providing residents with information on the OPA’s Website or in flyers suggesting things like getting three estimates for any project, asking a contractor about their licensing, and consulting

Viola dealing with staffing shortage in police department General manager drops $50,000 proposed expenditure for independent review of staffing and organizational structure

By TOM STAUSS Publisher he Ocean Pines Association membership is well aware of one key staffing issue at the Ocean Pines Police Department, the absence of Chief Leo Ehrismen, who was placed on paid administrative leave in early January after revelations of missing material in the department’s evidence

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with others for recommendations.

“I do have problem with setting up this registry,” he said and cited a lack of redress for property owners and contractors about the quality of work. That is available at the state level through an administrative law judge, he added.

He also wondered if a contractor who doesn’t pay the registration fee

storage shed.

His duties are being temporarily handled by two lieutenants, one from the Worcester County Sheriff’s office and the other employed by the OPPD. Lt. Brian Caramone of the sheriff’s department had been dispatched to “provide oversight and assistance” to the Ocean Pines department as the investiu

will be squeezed out of the marketplace. “You’re allowing Ocean Pines to engage in that sort of restraint of trade,” he suggested. “I think you invite more potential problems than you’re trying to solve.”

Lakernick said he is OK with a free list but not with charging a fee.

Parks also said he may support a free listing but not in any form that

indicates the contractors are endorsed by the OPA. He acknowledged that the OPA can’t stop it if a property owner interprets that as a referral.

Horn said CPI may still be interested in creating the listing even if it is offered for free and said it will be up to CPI and the general manager to make that decision.

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From Page 17 gation unfolds.

Day to day oversight of the department is being handled by Lt. Shaker Koppin.

Both lieutenants report to General Manager John Viola, who in a Feb. 21 telephone provided some additional details on activities within the department during these recent challenging times.

There continues to be an absolute embargo on any information about

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the missing evidence.

That’s not likely to change any soon, at least not until Caramone completes the investigation and announces results and Ehrisman’s status is clarified.

Viola said that he recently had included in the proposed 2023-24 OPA budget $50,000 for an independent review of staffing and organization of the department.

He subsequently removed that proposed expenditure from the budget because Caramone has been able to offer insight on those issues, mak-

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ing it possible to avoid the expense of an independent study.

Viola said a focus of what is now an in-house review with the active assistance of Caramone is what the OPA needs to do to compete with area police departments for the retention of police officers, especially in the ranks of officers just starting out in policing or who have not yet attained the status of sergeant or lieutenant.

These lower ranked officers can be more easily lured away from police departments that offer better pay and benefits than Ocean Pines currently offers.

Viola said part of his departmental review concerns the possibility of developing a pension program for the OPPD as a way helping to retain police officers.

Other police departments in the area as well as county and state law enforcement agencies offer such a benefit.

Should Viola be able to set up a pension program for the OPPD, with the support of the Board of Directors, it is not without its complications.

If the OPA adopts a new, more generous pension program for the OPPD, then Viola acknowledged that similar programs in other departments may need to be considered.

He confirmed reports that the OPPD is short five lower ranked officer positions and one higher position, and that recruitment efforts are under way, in local publication and trade magazines with readership outside the local area.

He acknowledged that hiring and then waiting for new officers to be certified can take time.

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then these outside agencies, including the state police in Berlin or the sheriff’s department, will be dispatched to Ocean Pines.

Viola said that he is expecting to receive a bill shortly from the Worcester County Sheriff’s Department for services rendered to the OPPD by Caramone, some of which weren’t anticipated when he initially came on board to handle the missing evidence investigation.

Until such time as Ehrismen’s status changes, the OPA is in effect carrying the expense of two senior leaders, one of whom is absent.

It obviously carries unbudgeted expense.

Even with that, however, the OPPD financial performance this year because of the staff shortage is quite striking.

The department through Jan. 31 is almost $100,000 ahead of budget, the direct result of lower payroll and benefit expenses.

Ehrisman became police chief in August of 2020 on the retirement of former chief David Massey.

He was hired as a patrol officer in 1986 by then Chief of Police Rod Murray. He was the first person to have risen through the ranks to become Ocean Pines’ top cop.

Caramone is handling the investigation of the alleged robbery, with no involvement by any OPPD police officer, Viola said.

The OPPD is not the only department in Ocean Pines with staffing shortages.

In the case of the Public Works Department, Viola has said that the OPA has been able to outsource certain functions through outside contractors.

In the case of the Aquatics Department, a concerted effort is under way to recruit lifeguards and support staff for the summer season, with more than 40 openings to be filled, Viola said.

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March 2023 Ocean Pines PROGRESS 21 Director Rick Farr has also said he’s reluctant to proceed.

OPA President Doug Parks recently said that the possibility of a mixed result concerns him, suggesting that a patchquilt of a different rules in sections throughout Ocean Pines could present administrative challenges in enforcement If Parks ends up joining LakWants Board decision on sending out ballots within 30 days Feb. 18 Board meeting ernick and Farr as no votes, that the OPA staff prepared to send out erendum process outlined in OPA leaves Monica Rakowski as the diBy TOM STAUSS ballots to property owners. governing documents. rector who could be the deciding Publisher During discussion at the Board’s The OPA can lobby those who vote. She’s not made any public prohe Board of Directors didn’t get around to tackling the short- Feb. 18 meeting concerning this haven’t submitted ballots to do so nouncements on the issue, but she term rental issue at its Feb. 15 summer’s Board election, Daly said in follow-up correspondence. The often has joined Parks, Lakernick monthly meeting, but Ocean Pines the voting to change the DRs does vote could result in some sections and Farr as part of a Board majority.

Daly and Director Collette Horn Association Director Frank Daly not involve the Elections Commit- amending the DRs, and others dewere part of a majority on last year’s wants his colleagues to settle the tee, with the sending out of ballots clining to do so.

“There’s no reason to hold up the Board in favor of giving the OPA issue on how to proceed within 30 and compiling results handled by OPA staff. Nor does it include the DR voting [because of issues relat- more tools to enforce rules on shortdays.

The issue facing the Board option of electronic voting to compli- ed to the Board election],” Daly said, term rentals. Daly told the Progress asking the Board to make a decision in a recent email that the issue isn’t is whether to authorize a sec- cate matters further, Daly said.

He described the ballots in the to proceed with the DR voting with- dead, that there was an approved tion-by-section vote to change the motion that the general managerDeclaration of Restrictions to reg- DR amendment election as proxies, in the next 30 days.

It’s not clear that there are four was to act upon. ulate short-term rentals in Ocean that would be transported down to “At one time the delay was to dePines, adopting county statutory Snow Hill after they’re counted by votes to proceed.

Director Stuart Lakernick has termine if the vote could be done via language and giving the OPA the staff. DRs can only be amended if a majority of property owners in each posted a message on oceanpinesfo- email. As I understand it, legal, as ability to fine violators.

It’s a matter that’s been hanging section approve them in a process rum.com that he opposes a commu- well as technical reasons, have elimover the Board since last year, with that is different than the usual ref- nity vote on short-term rentals, and inated that possibility,” he said.

Daly still pressing for vote on amendments to DRs restricting short-term rentals

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By ROTA L. KNOTT Contributing Writer inor revisions to two resolutions, one regardone-on-one complimentary, no obligation * ing the Ocean Pines Associations Book of Res(0.00%) TAX-FREE 3.25 % TAX-FREE* se contact me at 410-208-1704 for a one on one complimentary, no obligation, consultations or consultation or attend our seminar. olutions and another relating to OPA manuals, attend our seminar.

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Call for times, date anddates location Prince Georges Md (Name of MuniCnty Bond) were approved on second reading at the Feb. 18 Board Carrie Dupuie, AAMS 98.500 Price: Dupuie, (00.00) of Directors meeting.

Carrie AAMS® My picture Coupon: (00/00/00) 3.25 (Financial Advisor Financial Advisor Name) Director Steve Jacobs, liaison to the Bylaws and ResFinancial Advisor here Maturity Date: 07/15/2036 (00/00/00) (Approved Title) olutions Advisory Committee which recommended the 215 North Main Street 07/15/2028 Callable Date: (00/00/00 or N/A) 215 North Main Street 100 Call Price: (000) Berlin, MD 21811 changes, said the revisions to both Resolution B-01 and Berlin, Aaa /MD AAA 21811 Rating: (XXX/XXX) (Address) M-08 are essentially housekeeping. The committee rouOther:410-208-1704 (Obligor) 410-208-1704 tinely reviews the resolutions for any necessary chang(City, ST 00000) Carrie.Dupuie@RaymondJames.com es.

(000-000-0000) I (Toll-Free: Carrie Dupuie, AAMS 800-000-0000) Raymond James(Financial Financial Services Inc.,Name) Member FINRA/SIPC Advisor The changes to B-01 are simply to clarify the lan(Approved Title) James Financial Services Advisors, Inc. Investments advisory services offered Raymond Fax:through (000-000-0000) guage in the resolution regarding written legal review (Address) (E-mail (City, STAddress) 00000) of resolutions and amendments to resolutions and re(000-000-0000) I (Toll-Free: 800-000-0000) (Website) Fax: (000-000-0000) cord keeping of the legal review.

(E-mail Address) (Website) Originally the committee recommended an update to establish that when the Board seeks a written review of a proposal to add or amend a resolution that any opinSubject to availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exempt from federal taxation and may ion on the matter issued by legal counsel should also be also be free of state and local taxes for investors residing in the state and/or locality where the bonds were issued. However, bonds may be subject to federal alternative tax (AMT), and entered into the Book of Regulations. The current Resprofits and losses on tax-exempt bonds may be subject to capital gains tax treatment. Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to olution B-01 does not require but does allow for legal 6/07/2018 buy, sell or hold the security and may be subject to review, revision, suspension, reduction or 00/00. withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely review of a new or amended resolution. payment of principal and interest. No representation is made to any insurer’s ability to meet its vailability and price change.

Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally exempt financial commitments. Ratings and insurance do not remove risk since they do not guarantee Inissued. presenting the proposed revisions, Jacobs said the l taxation and may alsothebemarket free ofvalue stateof and local taxes for investors residing in the state and/or locality where the bonds were However, the bond. be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. proposal would make it easier for people to understand Securities offered through Raymond James Financial Services, Inc., member FNRA/SIPC. Moody’s/Standard & Poor’s.

A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, (c) 2015 Raymond James Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 spension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and inter- why a resolution was enacted or amended and review

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Ratings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to buy, sell or hold the security and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interest. No representation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do not guarantee the market value of the bond.

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esentation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do ee the market value of the bond.

by having the legal opinion attached to it.

When it was originally presented on first reading, OPA President Doug Parks was concerned about a language change that seemed to but the onus on the Board to get legal opinions on resolutions.

He said the Bylaws and Resolutions Committee should be able to seek advice from legal counsel prior to Board action on a resolution, as was stated in the current B-01.

Parks noted that part of the responsibility of the Bylaws and Resolutions Committee is to ensure that the resolutions it recommends do not conflict with the other governing documents, or to recommend legal review if they are unsure.

On second reading, that language regarding legal review was revised again to state that legal review of proposed resolutions or amendments is not required before adoption by the Board of Directors but that the committee may recommend that the advice of counsel be obtained.

It further states that when the Board seeks written legal review of any resolution or amendment, counsel must affirm their review by signature prior to entry of the Board approved resolution into the Book of Resolutions.

The Bylaws and Resolutions Advisory Committee To Page 24

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OCEAN PINES

OPA trying to hire 40 summer lifeguards

By ROTA L. KNOTT Contributing Writer he Ocean Pines Association is slowly filling vacant positions, including hiring a handful of new lifeguards, but needs dozens more new employees to fully staff the Aquatics Department for the upcoming summer season.

General Manager John Viola during his Feb. 18 GM report told the Board of Directors that the OPA needs to be competitive in the marketplace if it is going to attract lifeguards, public works laborers and even police officers to work in the community.

Viola said salary adjustments have been included in the fiscal year 202324 budget to meet the state’s new minimum wage of $13.25 per hour and to compete with other organizations and businesses seeking to hire. As a result, he said the OPA is getting applications from job seekers.

“This is the first I can really say over that last year, year and a half we’re seeing people come in” looking for employment, he said.

He said if the OPA wants to keep its pools open “we’re going to have to raise our wages” and try to hire from “whatever population of life guards are out there.” He acknowledged the OPA is facing a lot of competition in hiring and has to be competitive.

Viola said applications for lifeguard positions are coming in. The OPA has already hired two lifeguards and is in the process of hiring a third. But, that will just meet the need at the pools during the winter months. Currently, the OPA has one full-time and 17 part-time lifeguards.

Come summer, the OPA needs 40 lifeguards to meet demand. “The task is to get those pools open. That’s what it’s goings to take,” he said, adding “We certainly need a lot more at the pools for the summer.” In addition to needing to staff up to 40 lifeguards for the summer, the OPA also needs to have ten front desk employees and four bathroom attendants to keep all five pools open on a full-time schedule.

The OPA is also researching making adjustments to salary and benefits for officers with the Ocean Pines Police Department. “We value safety,” Viola said, including police, fire and emergency medical services. “I know we all do but there is a cost to that.”

He said there have been five inquiries from job seekers for positions with the police department. Currently, there are six openings.

Viola said the municipalities surrounding Ocean Pines are all increasing their pay, pension benefits, and bonuses for law enforcement, so the OPA will need to make adjustments in order to attract and keep qualified officers. “We are looking at that we need to be competitive. We value these individuals.”

T

Resolutions From Page 22 originally recommended rescinding in its entirety Resolution M-08 regarding association manuals. The committee acknowledged that there are certain OPA policy and operational manuals but there is no way of determining whether they are kept up to date so it suggested the resolution be eliminated.

While they agreed with the committee recommendation regarding operational manuals, some directors pointed out that there is a financial policy manual over which the Board does have oversight.

That financial management policy manual that establish items such as the general manager’s spending authority that the Board must en-

sure are kept up to date.

As a result, the committee revised its recommendation and proposed amendments to the resolution based on the need to distinguish which manuals are operational and should be reviewed and modified by the general manager and which require Board review and modification.

The policy notes that the general manager may change the list of OPA manuals as necessary, except for the financial management policy manual that only the Board may change.

Except for the OPA financial management policy manual, the manuals are required to be reviewed for current adequacy on a bi-annual schedule and documentation of the review is to be maintained. The Board will review the OPA financial management policy manual on an annual basis.

Viola said applications are also starting to come into the OPA for public works laborer positions. Public works currently has three openings for which the department received 32 inquiries. One new hire was recently completed and another is in the process of being brought onto the public works team.

Finally, he said that there have been five inquiries for the open racquet sports manager’s position and the OPA is in the process of conducting interviews.

He said open positions in the police, public works, aquatics and racquet sports are all posted on Indeed.com and a state jobs website. All online inquiries are sent an email from the human resources officer requesting that job seekers complete an online application.

Those applications are then forwarded to the appropriate hiring manager for the review.

New basketball court lights added

The bulbs on four lights on the OPA’s basketball courts in White Horse Park have been replaced with LED bulbs. Viola said the cost was $1,859 for the lights and supporting brackets.

Viola said the OPA had received inquiries about the lights for play at night on the courts. He added that bulbs are continuing to be changed to LEDs throughout Ocean Pines.

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OCEAN PINES Horse Park include new heating, ventilation, and air conditioning, updating restrooms, plumbing, ceiling, walls, and painting.

Viola said much of the work was done by the OPA’s “preferred” outside vendors. But he added that Public Works crews completed maintenance and repair work in-house, including replacing ceiling tiles and painting.

He said the cost of the long-deferred maintenance alone is more than $40,000. “Before this, I’ve never seen a building where you could just not regulate the air conditioning or heating,” he said regarding the poor condition of the HVAC system.

submitted a request for a bond issue of $1.5 million. “We all know that’s not going to happen,” he said, but added the OPVFD may get another $100,000 or $200,000 from the request.

In response to a question about the timing of the bond bill, he said it will be a few weeks before he knows whether or not it will be moving forward. He said the process includes several steps such as a review by the

bond committee.

If the committee approves of the request, the OPVFD will be asked to provide a justification for the funding. Then the request will go on to the legislature for consideration.

Dashboard activity

The Compliance, Permits, and Inspections office started January 2023 with 128 outstanding violations and processed and additional

27 violations during the month. CPI was able to close out 26 violations, leaving 129 outstanding at the end of the month. Of those cases 62 are being addressed by legal counsel, and no new cases were send to counsel during the month. Seven cases are pending hearing in the courts in March and another 20 are likely to be scheduled in April.

Public Works started January u

Yacht Club painting

At the Yacht Club, the exterior overhang has been spruced up and the interior ballroom ceiling was repaired by outside contractors at a cost of $3,100. The contractors sanded, primed, and painted the entrance way overhang.

The celling in the second floor ballroom has been repaired and repainted. Crews cut out loose plaster cut, patched and sanded those repairs and then repainted the whole ceiling.

“It needed a lot of work, not just painting,” Viola said.

Golf academy

Starting March 7 the Ocean Pines Golf Club will be offering private and group golf instruction with Matt Ruggiere.

“I’m very excited about this,” Viola said, adding that the clinic time is filling up quickly with both Ocean Pines members and outside golfers signing up.

He called Ruggiere “homegrown talent” who will lead the new golf academy at Ocean Pines.

More information and sign up are available at Ruggieregolf.com.

Fire station

At Viola’s invitation, Dave Van Gasbeck, president of the Ocean Pines Volunteer Fire Department, gave a brief update on funding for the proposed new Southside Fire Station. He said he has been working with Senator Mary Beth Carozza and Delegate Wayne Hartman to try to secure additional state funding for the multi-million project.

Previously, Carozza and Hartman helped secure $1.35 million for the new fire station. This year after talking with Hartman, Van Gasbeck

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OPA FINANCES

Assessment adjusted again, reduced to $883 Directors decide not to raise any amenity dues or fees; budget passes on 5-2 vote with Horn and Daly in opposition

By TOM STAUSS Publisher fter a flurry of 11th hour budgeting via email that reduced the base lot assessment an additional $9 from what had been discussed at an early February town meeting on the proposed budget for 2022-14, the Board of Directors at its Feb. 18 monthly meeting approved a budget that incorporate a base lot assessment of $883.

That’s a $13 decrease from the current assessment of $896, and $9 less than the $892 that had been proposed at the town hall meeting.

However, it’s $8 more than the $875 assessment General Manager John Viola had proposed in his preliminary proposed budget unveiled this past December.

The new budget passed 5-2, with directors Colette Horn and Frank Daly voting against.

While approving a modest reduction in the assessments compared to the $100 reduction approved a year ago for 2022-23, the directors decided to keep all amenity membership dues and user fees constant, a reversal from earlier indications that membership fees would be increased in the new fiscal year that begins May 1.

There were no daily user fee increases in Viola’s original budget, and that continues to be the case in the final approved version.

It was the decision to forgo increases in membership dues that was cited by Horn for her decision to vote against the budget.

Similarly, Daly, who said he supported much of what the approved budget contains, told his colleagues he would vote against it because Aquatics is budgeted to lose about $100,000 next year, compared to a projected surplus this year of about $20,000.

Daly wanted to increase Aquatics dues and fees to make up the shortfall, which is predicated on full staffing at the pools this summer, a goal which in the end could prove to be elusive despite a concerted effort to beef up recruitment.

If, as occurred last summer, recruitment falls short of the 40-plus summer pool staff, then it’s possible the projected deficit will work itself out with reduced payroll costs.

That in turn could produce pushback from pool users, some of whom objected to shortened hours To Page 28

A

Dashboard From Page 25 with 54 open work orders and received 71 new work orders during the month. On the customer service side of operations, the OPA received 109 contacts from residents in January via email at info@oceanpines.org or phone calls.

Linda Martin, OPA senior executive office manager, said there were 28 calls for amenities, 17 for CPI violations, 48 for general information, and 16 for Public Works.

Approved 2023-24 OPA Budget

March 2023 Ocean Pines PROGRESS

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Departmental Summary Approved 2023-24 Budget

Approved 2023-24 budget

From Page 26 at some of the pools last summer as Aquatics Director Kathleen Cook wrestled with staffing challenges.

In Viola’s initial budget draft from December, beach parking passes were slated to increase $35, from $215 to $250 for those with no other amenity memberships. That’s was a 16.3 percent increase.

For those who purchase other amenity memberships, the beach parking pass would have increased $25 from $140 to $165, a 17.9 percent hike.

Budget and Finance Advisory Committee members during their review noted the increase was much higher than the inflation rate, countering the staff’s initial position that supply and demand justified the higher rate.

At the recommendation of the committee, Viola subsequently lowered the proposed increase in parking fees, to $230 standalone and $150 with other memberships.

But in the final version of the budget, the directors went even further, eliminating the increase altogether.

The preliminary proposed budget had called for all amenity membership dues except for platform tennis to increase, in the range of 4.4 to 6 percent for swimming, about four percent for tennis, 3.4 to 3.9 for pickleball, and from 2 percent to 4.8 percent for golf, with slight percentage differences for family and individual categories. u

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All golf membership categories would have been increased across the board by $50.

Boat slips rates at Ocean Pines marinas would have increased by 5 percent.

The directors in the end overruled all of those proposed increases, resulting in a subsequent need to increase the assessment slightly from Viola’s original proposal.

A majority of directors seemed to agree with the sentiment expressed by Director Stuart Lakernick, who said that many Ocean Pines households are facing budgetary and inflationary headwinds and that relief from amenity membership dues increases would be appreciated.

It is also true that historically when the OPA raises membership dues, membership numbers decline, as some OPA members opt instead to use community amenities by paying daily user fees.

Lakernick scored a budgetary win when a majority of the Board went along with his proposal for a new couples membership in aquatics, priced at roughly between the dues for individuals and families.

If this initiative proves to increase membership revenues, as Lakernick hopes and believes it will, then it might be introduced in other membership categories a year from now.

Lakernick also hopes that the Aquatics Advisory Committee will come up with additional membership initiatives next year, including a membership for grandparents who bring their

Lakernick scored a budgetary win when a majority of the Board went along with his proposal for a new couples membership in aquatics, priced at roughly between the dues for individuals and families.

grandkids to the pools.

In addition to the base assessment of $883, the Board approved a waterfront assessment of $1,498, $8 more than the $1490 Viola had proposed in his preliminary draft budget.

However, that slight increase maintains the $615 waterfront differential, which is the difference between the base lot assessment and the waterfront assessment paid by most owners of bulkheaded property in Ocean Pines.

OPA Treasurer and Director Monica Rakowski’s motion for budget approval called for an operations budget of $14.42 million, bulkhead spending totaling $1.15 million, and capital spending

from the replacement, roads, drainage and new capital reserves of $1.024 million.

The approved budget is balanced at $16.593 million, which is actually an estimated $2.109 million less than projected revenue of $18.702 million this year.

Viola’s preliminary proposed budget was balanced at $16.635 million.

The revised iteration of the budget was $16.769, so each version of the budget resulted in modest decreases in projected revenue and spending.

To reach the approved budged of $16.593 million and assessment of $883, Viola made a number of last-minute adjustments, including eliminating $50,000 for an outside review of police department staffing and benefits.

The couples membership in aquatics resulted in an estimated erosion of $12,000 in membership revenue, despite Lakernick’s hope that it will have the opposite effect.

Viola also said he took $10,000 out of the Public Works budget for “equipment we don’t need.”

He also said he took some money out of $30,000 he had set aside to bolster lifeguard recruitment, which he said was made possible by three recent hires.

Together these modest changes made it possible to arrive at a base assessment of $883, which Viola said could be lowered further next year depending on factors to be determined over the coming year.

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Directors debate budget on route to approval with two dissenters Horn, Daly object to holding the line on amenity dues this summer, while Lakernick and Farr say OPA members are feeling ‘squeezed’ by inflation in household budgets

By TOM STAUSS Publisher hile five directors supported a 2023-24 budget that held the line on amenity membership fees and daily user fees, while reducing the base lot assessment by $13, two directors made it clear they preferred increases in Aquatics dues and fees to eliminate a projected loss in that amenity.

The dissenters were last year’s elected Ocean Pines Association leadership team, former president Colette Horn and former vice-president Frank Daly.

They were part of a solid Board of Directors majority, reduced to a minority this year by virtue of a 15-vote separation between the third and fourth-place finisher in last summer’s Board election.

The third place finisher, current OPA Treasurer and Director Monica Rakowski, beat fourth place finisher and former appointed Director Amy Peck by those scant 15 votes, and that has made all the difference in the political dynamics on the Board since the new Board was organized in August.

It’s unclear if Peck’s presence on the Board in place of Rakowski would have made a difference in the budget’s approval.

Had she been elected, she would have been in alignment with Horn and Daly on many issues, and possibly Steve Jacobs, the top vote getter in the election who so far this Board term has often sided with Horn and Daly on policy issues.

However, in the case of the 2023-24 budget, Jacobs, despite some reservations over the creation of a couples membership in Aquatics, voted with the Board majority of OPA President Doug Parks, Rakowski, and directors Rick Farr and Stuart Lakernick.

The debate that occurred in the Board’s Feb. 18 monthly meeting underscored the continuing differing perspectives on key issues between the prevailing Board majority and minority blocs.

Those divisions manifested shortly after General Manager John Viola explained the adjustments he made in the budget that made it possible to lower the base lot assessment from the current $896 to $883.

Horn was a right out of the box with a criticism of the budget’s projected $100,000 loss in Aquatics, telling her colleagues that OPA governing documents “require” that individual amenities

W

break even.

She also asked Lakernick how much a new couples membership in Aquatics he advocated would bring in new revenue.

“I’m concerned about any deficit (in amenities),” she said.

Actually, Board Resolution M-02 that sets out the policy to which Horn referred does not mandate break-even amenity budgets.

The language is “should” not “shall”, and M-02 also says that any shortfalls in the break-even goal “shall” be covered by the annual lot assessment.

Lakernick responded that holding the line on amenity dues increases is the proper response to “our members [who] are getting squeezed” by inflationary pressures in the economy.

“We have an [operating[ surplus],” he said, adding, “We can do this.”

Although Viola told the Board that he had reduced Aquatics revenue by $12,000 as a result of the new couples membership in Aquatics, Lakernick said he believes the new category will bring in new members and revenues.

He said the Aquatics Advisory Committee has also proposed a new membership category in Aquatics for grandparents.

Lakernicjk didn’t push to include this in the 2023-24 budget but but he said it introduced for consideration by the Board next year.

After Horn pointed out other potential budgetary pressures, such as a gradual move to an all-paid fire department in coming years and the need to improve benefits for police officers to retain them, Lakernick returned to the issue of the couples membership in Aquatics.

“I don’t think $12,000 [in potential lost revenue] is a problem,” he said.

Jacobs said he would have preferred if the couples membership had been deferred, suggesting that it should have been delegated to the Aquatics Advisory Committee for a package of possible membership changes next year.

He also noted that the Ocean Pines Volunteer Fire Department doesn’t have enough to pay its 50 percent share to buy new fire-fighting equipment.

He also said that surveys indicate that public safety is the number concern among property owners, and that there may be “big ticket” expenses in this area in coming years.

Those concerns were not sufficient to cause

March 2023 Ocean Pines PROGRESS 31 him to vote against the budget, however.

Daly declared he wouldn’t vote for the budget because of the projected $100,000 loss in Aquatics next year.

He said he supports the $883 base assessment “because our people are hurting” but that the Board should have supported dues and fees increases in Aquatics to make that amenity self-supporting.

“The governing documents say [amenities] should be break-even,” he said, echoing Horn.

Daly said the projected $100,000 loss in Aquatics next year adds $5 to every lot assessment.

Actually, $100,000 amounts to almost $12 for each of 8,452 properties in Ocean Pines.

Daly said he had asked Viola how many property owners in Ocean Pines use the pools, with Viola responding that information was not available.

“We have that information for golf,” Daly said.

He went on to say that there are 700 Aquatics memberships currently and there is data available that suggests that pool usage in Ocean Pines is 88 percent by members.

“I see no way to break even without higher fees,” he said.

Daly did not address the possibility that the OPA would save on labor expenses if the 40-plus lifeguards needed for a full schedule at the pools don’t materialize this summer despite the best efforts of the OPA to hire them.

Horn said that in addition to membership dues increases, daily fees could also be raised to bring Aquatics into balance.

OPA President Doug Parks pushed back on the idea that a loss in Aquatics would upset that many OPA members.

“People care about the assessment,” he said. “I will take a guess that members don’t put a lot of emphasis on amenities. Though I hear you,” adding that amenities “should be run in a business-like manner.”

He reminded his colleagues that a budget is an educated guess, and that by not increasing amenity dues and fees this coming year more OPA members may decide to buy memberships.

“I’m comfortable with the budget,” he said.

OPA Vice-president Rick Farr was on the same page with Parks.

He said a lot of OPA members haven’t been able to keep up with inflation and some people are saying they can’t afford to go to the pools.

“It’s the right thing to do,” he said of keeping dues and fees the same.

Horn and Daly then repeated their arguments, with Daly contending that the OPA has been dealing with the amenity subsidy issue for more than 50 years.

“We’ve eliminated them except for Aquatics,” he said. “It’s very correctable. Just increase” the dues and fees “as opposed to putting [the projected loss] on the backs of those” who don’t use the pools.

Parks said increasing these fees “might dissuade them from buying.”

In the end, only Horn and Daly were unhappy enough with the hold-the-line approach to vote against the budget.

32 Ocean Pines PROGRESS March 2023

OCEAN PINES ASSOCIATION FISCAL YEAR 2023-24 BUDGET PROPOSED ALLOCATION OF ACCUMULATED SURPLUS FUNDS

OPA FINANCES

More assessment relief in 24-25?

Viola shows how it’s possible with a graphic itemizing a proposed allocation of surplus funds PROPOSED ALLOCATION OF ACCUMULATED SURPLYS FUNDS Fiscal Year 2023-24 Budget Accumulated Surplus (Deficit) Year Retained Earnings Balance

OCEAN PINES ASSOCIATION FISCAL Net Operating Operating YEAR Deficit2023-24 BUDGET Prior Period Transfers from Prior PROPOSED ALLOCATION OF ACCUMULATED SURPLUS FUNDS

Income/(Loss)

FY17 FY18 FY19 Net Operating FY20 Income/(Loss) FY17 FY18 FY21 (1,247,692) FY19 25,532 FY22 FY20 570,660 FY21 FY23 EST 1,445,897 FY22 1,912,712 FY24 BUD FY23 EST 1,000,000 FY24 BUD

-

Recovery Funding

(1,247,692) 25,532 Operating Deficit Recovery Funding 570,660 1,445,897 1,912,712600,265 254,232 1,000,000 -

Adjustment

Accumulated Prior Period600,265 Transfers from Prior Surplus- (Deficit) Adjustment254,232 Year Retained Earnings (90,263) Balance (363,640) (88,811) - (1,611,332) -(985,535) (90,263) (250,906) (88,811)1,194,991 3,107,703 - (1,635,000) 2,472,703 -

(780,000)

FY18 FY19 FY20 FY21 FY22 (1,635,000) FY23 (780,000) FY24 PROPOSED

1,692,703

(363,640) (1,611,332) OPA (985,535) Non-Water Assessment (250,906) $ 921 $ 1,194,991 951 $ 986 3,107,703 $ 986 $ 2,472,703 996 $ 896 $ 1,692,703 883

OCEAN PINES ASSOCIATION FISCAL YEAR 2023-24 BUDGET PRIOR RETAINED EARNINGS BUDGETED TRANSFERS IN FY23: PRIOR RETAINEDPROPOSED EARNINGS BUDGETED TRANSFERS IN FY23: SURPLUS FUNDS ALLOCATION OF ACCUMULATED

REALIZED ROLLED-OVER SURPLUS ALLOCATED TO ASSESSMENT REDUCTION IN FY23 BUDGET (650,000) REPLENISH ROADS RESERVE (FY'23 BUDGET) (350,000) TRANSFER TO NEW CAP FUND FOR T-DOCKS PROJECT (FY'23 BUDGET) (60,000) TRANSFER TO CAPITAL REPLACEMENT FOR COURT RENOVATIONS (FY'23 BOARD) (75,000) ADDITIONAL TRANSFER TO ROADS RESERVE (FY'23 BOARD) (350,000) Accumulated TRANSFER TO NEW CAP FUND FOR MAILBOX PEDESTALS (FY'23 BOARD) (150,000) Net Operating Operating Deficit Prior Period Transfers from Prior Surplus (Deficit) Adjustment Income/(Loss) Recovery Funding Year Retained Earnings Balance TOTAL FY23 ALLOCATION OF SURPLUS FUNDS (1,635,000)

REALIZED ROLLED-OVER SURPLUS ALLOCATED TO ASSESSMENT REDUCTION IN FY23 BUDGET REPLENISH ROADS RESERVE (FY'23 BUDGET) TRANSFER TO NEW CAP FUND FOR T-DOCKS PROJECT (FY'23 BUDGET) TRANSFER TO CAPITAL REPLACEMENT FOR COURT RENOVATIONS (FY'23 BOARD) (363,640) FY18 TRANSFER TO ROADS RESERVE (FY'23 BOARD) ESTIMATEDADDITIONAL SURPLUS FOR FY23 1,000,000 (1,247,692) (1,611,332) FY19 25,532TO NEW CAP FUND 600,265FOR MAILBOX PEDESTALS (985,535) FY20 TRANSFER (FY'23 BOARD) ESTIMATED REMAINING SURPLUS FUND BALANCE @ 4/30/23 2,472,703

FY17 FY18 FY19 FY20 570,660 254,232 (90,263) FY21 1,445,897 (88,811) PRIOR RETAINED EARNINGS BUDGETED TRANSFERS FY22 1,912,712 - IN FY24: SURPLUS ALLOCATED TO -ASSESSMENT REDUCTION FY23 EST REALIZED ROLLED-OVER 1,000,000 - IN FY24 BUDGET (1,635,000) FY24 BUD ADDITIONAL DRAINAGE - RESERVE (FY'24 BUDGET)(780,000) REPLENISH NEW CAPITAL FUND FOR KAYAK LAUNCH ADDITION (FY'24 BUDGET)

TOTAL FY23 ALLOCATION OF SURPLUS FUNDS

ESTIMATED SURPLUS FOR FY23

(250,906) 1,194,991 3,107,703 (650,000) 2,472,703 (100,000) 1,692,703 (30,000)

TOTAL FY24 PROPOSED OF SURPLUSINFUNDS PRIOR RETAINED EARNINGSALLOCATION BUDGETED TRANSFERS FY23:

(780,000)

REALIZED ROLLED-OVER ALLOCATED TO ASSESSMENT REDUCTION IN FY23 BUDGET ESTIMATED SURPLUS FORSURPLUS FY24 (BUDGET TO $0) REPLENISH ROADS RESERVE (FY'23 BUDGET) TRANSFER TO NEW CAP FUND FORFUND T-DOCKS PROJECT (FY'23 BUDGET) ESTIMATED REMAINING SURPLUS BALANCE @ 4/30/24 TRANSFER TO CAPITAL REPLACEMENT FOR COURT RENOVATIONS (FY'23 BOARD) ADDITIONAL TRANSFER TO ROADS RESERVE (FY'23 BOARD) TRANSFER TO NEW CAP FUND FOR MAILBOX PEDESTALS (FY'23 BOARD)

(650,000) 0 (350,000) (60,000) 1,692,703 (75,000) (350,000) (150,000)

ESTIMATED REMAINING SURPLUS FUND BALANCE @ 4/30/23

FY21 FY22 FY23 FY24 PROPOSED

(650,000) (350,000) (60,000) OPA Non-Water Assessment (75,000) $ 921 (350,000) $ 951 $ (150,000) 986 $ $ $ $

986 996 896 883

(1,635,000)

1,000,000 Source: General Manager John Viola Presented During Feb.18 2,472,703 Board of Directors meeting

PRIOR RETAINED EARNINGS BUDGETED TRANSFERS IN FY24: REALIZED ROLLED-OVER SURPLUS ALLOCATED TO ASSESSMENT REDUCTION IN FY24 BUDGET TOTAL FY23 ALLOCATION OF SURPLUS FUNDS (1,635,000) ADDITIONAL DRAINAGE RESERVE (FY'24 BUDGET) Traditional Cremation Services ESTIMATED SURPLUS FORNEW FY23 CAPITAL FUND FOR KAYAK 1,000,000 REPLENISH LAUNCH ADDITION& (FY'24 BUDGET)

(650,000) (100,000) (30,000)

2,472,703 Arrangements Available for Pre-Need

ESTIMATED REMAINING SURPLUS FUND BALANCE @ 4/30/23

TOTAL FY24 PROPOSED ALLOCATION OF SURPLUS FUNDS

PRIOR RETAINED EARNINGS BUDGETED TRANSFERS IN FY24: REALIZED ROLLED-OVER SURPLUS ALLOCATED TO ASSESSMENT REDUCTION IN FY24 BUDGET ADDITIONAL DRAINAGE RESERVE (FY'24 BUDGET) REPLENISH NEW CAPITAL FUND FOR KAYAK LAUNCH ADDITION (FY'24 BUDGET)

ESTIMATED SURPLUS FOR FY24 (BUDGET TO $0)

(780,000)

(650,000) (100,000) (30,000)

The Burbage Funeral Home

TOTAL FY24 PROPOSED ALLOCATION OF SURPLUS FUNDS

ESTIMATED REMAINING SURPLUS FUND BALANCE @ 4/30/24

(780,000)

0 108 Williams Street, Berlin ESTIMATED REMAINING SURPLUS FUND BALANCE @ 4/30/24 1,692,703 208 W. Federal Street, Snow Hill Berlin• Ocean City Ocean Pines • Snow Hill ESTIMATED SURPLUS FOR FY24 (BUDGET TO $0)

410-641-2111

Since 1810, we’ve been caringTradition” for people like you “An Eastern Shore

0 1,692,703

By TOM STAUSS Publisher cean Pines Association directors received a number of emails from members asking OPA Non-Water for more reduction in the base annual lot assessments asAssessment this year’s budgetFY18 process unfolded, $ with the 921 directors delivering a more modest FY19 than some $would have 951 reduction 986 liked. FY20 After a flurry of$ last-minute emailsFY21 among the directors $ debating 986 the extent of the 2023-24 reduction, FY22 $ 996 they voted 5-2 in favor of an assessFY23 $ 896 ment of $883 at the Board’s Feb. 15 FY24 PROPOSED $ 883 monthly meeting.

That represents a $13 decrease from the current $996 and $8 more than $875 assessment embedded in the preliminary proposed budget unveiled in late December by General Manager John Viola.

It also represents a $9 reduction from the assessment in the revised proposed budget presented to the membership in a Town Hall meeting earlier in February, when the assessment had been adjusted to $992.

The relative small-ball adjustments in the assessments during this year’s budget process was in marked contrast to last year at this time, when the final assessment for this fiscal year was dramatically and historically dropped $100 to the current $896.

Viola recently told the Progress that in late December of this calendar year when the preliminary budget for 2024-25 is unveiled, it could contain significant additional assessment relief.

It would reflect this year’s projected operating surplus of about $1 million as of April 30, and a projected cumulative operating surplus as of the same date of $1.692 million.

Viola said he was more cautious in offering assessment relief in 2023-24 -- the new fiscal year begins May 1 -- because of potential cost headwinds and unknowns going into the new fiscal year.

He also said he prefers to offer that kind of assessment relief after the previous fiscal year’s surpluses are realized.

That means certified by the OPA’s auditors and reported in the prior year’s annual report delivered just before the annual meeting of the association in early August.

Viola said the projected fiscal u

O

OPA FINANCES year-end operating surplus of $1 million and cumulative operating fund surplus of $1.7 million should be sufficient to handle any unanticipated expenses that might arise during the remainder of the current fiscal year and in 2023-24.

If all goes well, then that $1 million in realized surplus recorded in 2022-23 will be available for assessment reduction in 2024-25, Viola said.

It actually could turn out to be more than $1 million. As of Jan. 31, it is already at $1.1 million, rounded off, and February, March and April may yield surpluses as every month has so far this fiscal year.

But that’s not guaranteed, as weather in April can be fickle, affecting play at the Ocean Pines golf course and use of other amenities.

Plus, Viola is known to guesstimate conservatively because he dislikes surprises that turn surpluses into deficits.

According to a schedule of proposed allocation of accumulated surplus funds presented by Viola during the Feb. 15 Board meeting, the estimated operating fund surplus as of April 30 of this year will actually be $2.473 million, a reduction from the $3.1 million cumulative operating fund surplus recorded as of April 30 of 2022.

During the current fiscal year, budgeted transfers from the operating fund totaled $1.635 million, much of them related to various capital projects accomplished during the year.

The estimated surplus for this fioscal year adds $1 million back to the calculation.

Transfers included $150,000 to the new capital reserve for cluster mailbox refurbishment, a $350,000 transfer to the roads reserve, $75,000 to the replacement reserve for racquet complex court renovations, $60,000 to the new capital reserve for t-docks at the Yacht Club marina, and an additional $350,000 to the roads reserve.

Also occurring this year was $650,000 allocated from the operating fund for assessment reduction.

This may seem somewhat confusing, because this year’s $100 reduction in assessments actually cost the operating fund $845,200 [8452 lots x $100].

It’s all about timing. Viola treats assessment reduction as if it’s a time-release capsule.

He’s elected to spread out assessment reduction over multiple years.

March 2023 Ocean Pines PROGRESS 33 Another $650,000 in assessment reduction allocated from the operating fund is anticipated for 2023-24, the fiscal year that begins this May 1, according to the published schedule of proposed surplus fund allocations.

Over two fiscal years, assessment reduction would total $1.3 million.

The difference between what’s been allocated in assessment reduction and what’s been paid out so far will, assuming Board approval, be reflected in another downward draft to be proposed this December for

2024-25.

A rough calculation by the Progress is that there’s $350,000 remaining to be allocated from that $1.3 million, or about $41 per lot.

In addition to a second $650,000 in assessment reduction, 2023-24 transfers include an additional $100,000 to the drainage reserve and $30,000 for a new kayak launch.

According to the schedule, the total allocation from the operating fund is $780,000, resulting in an estimated operating fund surplus as of

April 30, 2024, to $1,692,703.

The schedule says it’s a balance of $1.69 million as of April 30 of this year, but that’s a likely typographical error.

It’s also a projection.

Should the approved budget for 2023-24 produce operating fund surpluses, the cumulative fund surplus would reflect that.

If it’s another banner year relative to budget, it in turn would make Viola’s aim of additional assessment relief even more attainable.

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34 Ocean Pines PROGRESS March 2023

OPA FINANCES

Replacement reserves to grow substantially Collections, interest will far outpace capital spending next year

General Replacement Reserve - Six-Year Projected Growth

Source: Approved 2023-24 Ocean Pines Association budget

By TOM STAUSS Publisher f interested Ocean Pines Association members want to assess the OPA’s financial health, they need go no further than various schedules that depict the status of various reserve funds, particularly the venerable Replacement Reserve, the pot of cash used to pay for capital assets that wear out over time.

The OPA manages four other reserve funds, including bulkheads and waterways, roads, drainage and new capital.

But it’s the replacement reserve that garners the most attention, perhaps because it carries balances that exceed all the others combined, While the bulkhead and waterways reserve has been around for as many decades as the replacement reserve, roads, drainage and new capital are relative newcomers.

In the just approved budget for 2023-24, the Board of Directors ratified a plan to increase the replaceu

I

Capital Summary Approved 2023-24 Budget

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OPA FINANCES ment reserve at a robust pace, with revenues far exceeding expenditures in the coming year.

The growth in the replacement reserve is projected to continue in the five or six years that follow.

The replacement reserve is funded through a mechanism that’s been in place in Ocean Pines for decades.

The Board doesn’t explicitly approve the mechanism in any given year; the mechanism is more or less on auto-pilot and produces a dollar contribution that is never controversial and rarely discussed.

It just gets approved as part of the budget every year. And it’s a cash cow that keeps on giving.

The mechanism is funded depreciation of OPA assets that are listed in the DMA reserve study, a detailed inventory of capital items owned by the OPA. The funded depreciation calculation is a percentage of these assets, and in recent years has come out to a little less than $1.8 million.

In 2023-24, the contribution from the annual lot assessment to the replacement reserve will be $1.775 million.

With interest rates on the rise, the budget anticipates that this reserve will generate another $160,000 in interest rate next year, with the total contribution rising to $1.935 million.

There are always expenditures from this reserve in any given year, and it will be no different in 202324.

But contributions will far exceed anticipated capital expenditures

March 2023 Ocean Pines PROGRESS 35

Reserve Summary Approved 2023-24 Budget

from this reserve next year. This is relatively uncommon. Most years, spending from the replacement reserve is $1 million or more.

The Board of Directors as part of the budget approved capital expenditures from the replacement reserve of only $399,163 next year.

That works out to a differential of more than $1.5 million more in collections than anticipated disbursements in the new fiscal year.

As a result, the replacement reserve is projected to grow from about $5.3 million at the end of this fiscal year to about $6.9 million in April of 2024.

The percent of full funding of the replacement reserve -- full funding would mean the OPA would have in reserve what’s needed to replace all of the OPA’s capital assets -- is pro-

jected to increase from the current 23.9 percent to 30.8 percent at the end of the 2023-24.

How much should the OPA prudently carry in its replacement reserve?

There’s no state law that mandates a particular percentage, but it’s probably true that the OPA’s percentage is on the high end of all HOAs in the state.

Current Board policy says the percentage should range from 22 to 28 percent, but the Budget and Finance Advisory Committee has suggested a 33-35 percent range.

The Board has not acted on this recommendation, and it’s unclear if it will be considered.

Or if it’s considered, whether it will be approved.

However, the projected increase

Bertino to host town meeting

W

orcester County Commissioner President Chip Bertino will host a town meeting on Wednesday, March 15, at 6 p.m. at the Ocean Pines library. Commissioner Bertino will give an update on what is going on around the county.

His guests include Worcester County Chief Administrative Officer (CAO) Weston Young and Atlantic General Hospital President and CEO Don Owrey.

Young has served as CAO for Worcester County since August 2021 when he was promoted from Assistant Chief Administrative Officer. He is a certified professional engineer, having graduated from the University of Maryland. Prior to joining Worcester County, he has worked for the City of Hampton, VA, Salisbury and Wicomico County, primarily in administration and public works.

Owrey has more than 30 years of health care experience and leading regional health care strategy. Prior to joining Atlantic General in 2022, he spent 20 years in various leadership roles with the University of Pittsburgh Medical Center (UPMC). Most recently, in addition to his role as President of UPMC Williamsport, he served as the COO for UPMC’s northern region, which comprised six rural and community hospitals, a 450-provider medical group and more than 5,000 employees.

Owrey graduated from Thiel College, in Greenville, PA, and earned a master’s degree in business administration from Robert Morris University, in Pittsburgh, PA. “This will be an informative meeting,” Bertino said. “There’s a lot going on in the county and I believe my two guests will have a lot to share.”

to 30.8 percent in the approved budget for next year is outside the approved policy, and the percentage is only projected to grow in the years that follow.

By 2028-29, the percentage according to a schedule in the approved budget is projected to grow to 42.7 percent, which is much higher than the range recommended by the budget and finance committee.

The anticipated balance in the replacement reserve at the end of that year is $9.5 million.

It’s always possible that some cataclysm will occur that requires outlays from the replacement reserve that far exceed the schedule of disbursements outlined in the DMA reserve study.

Big ticket items that might draw down anticipated hefty balances include a new Southside firehouse or a larger contribution for new firefighting apparatus than the current 5050 split with the Ocean Pines Volunteer Fire Department calls for.

OPVFD officials have warned the OPA that the department’s reserves are insufficient to cover its share of apparatus costs, and that may manifest itself in future funding requests greater than that currently anticipated.

Or perhaps there will be an effort to replace the aging Beach Club in Ocean City.

The Community Center operated by the Parks and Recreation Department is at capacity.

The latter two items are not on any official radar at the moment, but OPA General Manager John Viola mentioned at the Feb. 18 Board meeting that advisory committees are beginning to agitate for more funding for various capital projects.

36 Ocean Pines PROGRESS March 2023

OPA FINANCES

OPA notches a $43,000 surplus in January

Positive operating fund variance for the year close to $1.1 million

By TOM STAUSS Publisher he Ocean Pines Association recorded a $43,120 operating surplus in January, roughly half of the surplus in December, but still healthy for a time of year that historically has been known for deficits.

The cumulative surplus for the 2022-23 fiscal year through Jan. 31 $1,079,o14 , with only three months remaining in the fiscal year.

The positive operating fund variance in January resulted from revenues over budget by $18,141 and expenses under budget by $24,706.

T

The positive operating fund variance through Jan. 31 resulted from revenues over budget by $946,618 and expenses under budget by $132,396.

For the month of January, all amenity departments except beach parking were in the red, as is typical for this time of year.

Amenity departments that outperformed their budgets in January were golf, with a $6,183 positive variance; pickleball, with a $1,453 positive variance; tennis, $620 ahead of budget; and the Beach Club, now closed, ahead of budget by $593.

Departments that were under budget for the month included the Clubhouse Grille, with a

OPA NET OPERATING RESULTS BY DEPARTMENT - JANUARY 2023

Source: Ocean Pines Association Finance Department

RESERVE SUMMARY PERIOD ENDED 1/31/2023 UNAUDITED RESERVE SUMMARY ENDING JAN. 31, 2023 - UNAUDITED REPLACEMENT

BULKHEADS WATERWAYS

ROADS

DRAINAGE

NEW CAPITAL

TOTAL

BALANCE APRIL 30, 2022

4,769,395

535,600

4,666

687,014

150,090

6,146,765

TRANSFERS FROM OPERATING FUND: CONTRIBUTIONS FROM ASSESSMENTS

1,710,166

1,053,850

-

-

-

2,764,016

TRANSFER FROM PRIOR YEARS' SURPLUS

75,000

210,000

985,000

INTEREST INCOME (EXPENSE)

101,945

1,946

144,896

700,000 20,888

RESTRICTED CONTRIBUTIONS: TRANSFER OF CASINO FUNDS TRANSFERS TO OPERATING FUND: OPERATING EXPENSES CAPITAL ADDITIONS

(878,559)

BALANCE JANUARY 31, 2023

5,777,947

Source: Ocean Pines Association Finance Department

(645,522)

964,816

12,955

7,162

350,000

100,000

(225,872)

(610,141)

(231,405)

(645,522) (1,945,977)

841,749

184,035

130,631

7,899,178

450,000

$7,515 negative variance; the Yacht Club, with a $6,842 negative variance; aquatics (-$3,352); platform tennis (-$1,706); with marinas and beach parking more or less break even for the month.

But three quarters into the fiscal year, all amenity departments with the exception of tennis are in the black, and all but the Clubhouse Grille are ahead of budget.

Beach parking remains the OPA’s dominant cash cow, in the black by $498,213 for the year, ahead of budget by $23,215.

Golf is also having a banner year, in the black by $414,588 and ahead of budget by $208,686 through January.

The Yacht Club has a year-to-date net of $301,816, ahead of budget by $91,512.

Marinas recorded a $247,354 operating surplus through Jan. 31, ahead of budget by $35,217.

Next is the Beach Club, in the black by $223,234 and ahead of budget by $87,806.

Aquatics is in the black by $200,875, ahead of budget by $138,027, behind only golf operations in the positive variance to budget metric.

Pickleball continues to be the top performing racquet sport, notching a $61,143 net through January, ahead of budget by $20,548.

The Clubhouse Grille had a positive net of $45,679, under budget by $8,185.

Platform tennis recorded a $747 operating net through January, ahead of budget by $10,726.

Tennis had an operating deficit of $3,256 through January, but that was ahead of budget by $3,281.

The Parks and Recreation Department, funded by a combination of lot assessments and class and program fees, is ahead of budget for the year by $95,805. Its positive variance to budget for January was $11,447.

Most other assessment-funded departments are ahead of budget for the year so far, led by Public Works with a positive variance of $196,135.

Public Works is short-staffed and has had payroll cost savings as a result. The department has been meeting needs by hiring outside contractors, which is also saving money that is reflected in the bottom line.

Also ahead of budget is the Police Department, similarly short-staffed. Its positive variance for the year through January was $97,785.

Reserve summary -- The Jan. 31 reserve summary indicated total reserves of $7.9 million, down from $8.254 million in December and $8.814 million in November.

The replacement reserve balance at the end of January was $5.78 million, with bulkheads and waterways at $964,816, roads at $841,749, drainage at $184,035, and new capital at $130,631.

Balance Sheet -- The OPA’s balance sheet as of Jan. 31 shows total assets of $39.429,122, up from $38,002,041 at the same time in 2022.

Board OKs delinquency interest rate for 2023-24

The Board of Directors at its Feb. 15 monthly meeting unanimously approved a 6 percent annualized interest rate for delinquent accounts, for those property owners who fail to pay their annual lot assessments by the May 1 due date.

OPA FINANCES

March 2023 Ocean Pines PROGRESS 37

There’s a grace period to June 1 before a pro-rated monthly interest rate is levied.

The 6 percent annualized rate has been constant for several years.

Bills will be mailed to Ocean Pines Association members on or about March 15.

They may be paid via credit or debit card with an additional 3.5 percent convenience fee.

Payments may be mailed or dropped off at the

Administration Building in White Horse Park for no additional charge.

which was $900,000 more year-over-year. That was a $1.2 million reduction from the Dec. 31 total.

OPA still flush with cash

Rakowski said the OPA held $11.1 million in CDRs and $2.8 million in insured cash sweep accounts, money market and other operating accounts.

In a report delivered during the Feb. 15 Board of Directors meeting, OPA Treasurer Monica Rakowski summarized the OPA’s cash positions as of Jan. 31.

The OPA had $13.9 million in cash on hand,

The OPA continues to benefit from an environment of higher interest rates.

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38 Ocean Pines PROGRESS March 2023

LIFESTYLES

Chamber, Shamrock to host Restaurant Week

A

ll are invited on from March 10 to 16 to participate in the 2nd Annual Ocean Pines Restaurant Week.

Last March, Kerrie Bunting, CEO and executive director of the Ocean Pines Chamber and Kelly MacPherson, a Realtor with ERA Martin Associates Shamrock Division in Ocean Pines, organized the first Ocean Pines Restaurant Week.

The goal for restaurant week is to encourage local dining at participating Ocean Pines area restaurants.

It also provides the opportunity to announce the Ocean Pines Chamber’s new location off of Racetrack Road and introduce ERA Martin Associates, Shamrock Division, to the community, the result of a 2021 merger with the former real estate brokerage, Shamrock Realty Group.

The fun continues this year with dining opportunities at numerous participating locations.

During the first visit to any participating restaurant, patrons will receive a card to keep and complete as they dine at three participating restaurants. Completed cards are collected at the ERA Martin Associates Shamrock Division office at 11049 Racetrack Road between the hours of 9 a.m. to 5 p.m. Monday through Friday.

There is also an after-hours drop box location.

Participants are asked to drop off completed cardd no later than March 17 at 10 a.m. A live drawing will take place at noon on March 17 for the opportunity to win gift cards from participating restaurants.

For more details, visit Facebook.com/Ocean Pines Chamber or call 410-641-5000.

Ocean Pines Chamber sets March 28 Job Fair

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he Ocean Pines Chamber of Commerce will host a Seasonal Job and Resource Fair on March 18 from 9 a.m. until 12: p.m. at the Princess Royale Oceanfront Resort l at 9100 Coastal Hwy in Ocean City.

Spaces are available for $150 for current chamber partners and $200 for business non-partners.

If a business joins the Ocean Pines Chamber of Commerce upon registering for the Fair, the fee is $250 with $100 going toward a down payment toward the first year’s dues.

Prospective members will be sent a partnership application and invoice for the balance.

Along with hundreds of seasonal employment opportunities, the fair will feature resources from Ocean City such as housing assistance, transportation information, legal aid providers, safety information, urgent care facilities, and more.

To reserve space, employers can do so online at https://business.oceanpineschamber.org, under Events.

Registration can be completed by clicking the job fair event in the March calendar.

“Spread the word about the Fair to potential employees by using [the Chamber-prepared flier],” said Chamber President and CEO Kerrie Bunting. “The more promotion this event receives, the more great employees you will find.”

Information about the Ocean Pines Chamber of Commerce and annual dues and benefits can be found at the Chamber Website.

Anglers Club to meet March 11

The Ocean Pines Anglers Club will meet on Saturday, March 11, at 9:30 a.m. in the Ocean Pines Library.

The speaker will be Don Pino of “Hook Optics

by An Optical Galleria” who specialize in premium specialized sun glasses.

He will speak on “Protecting Your Eyes On The Water.”

Members of the club will also be conducting a seminar on Trout fishing.

Non-members of the club are welcome to attend.

Pancake breakfast March 4

The Ocean Pines - Ocean City Kiwanis Club will host its traditional Pancake Breakfast on Saturday March 4, at the Ocean Pines Community Center’s Assateague Room from 8 to 11 am.

Cost is $9, with children under 4 are free. Tickets are available from any Kiwanian before the event or at the door. Proceeds benefit local youth.

Kiwanis Wednesday meetings

Every Wednesday except for special occasions the Ocean Pines - Ocean City Kiwanis Club meets

in the Assateague Room of the Ocean Pines Community Center.

Doors open at 7:30 a.m. for the meeting that starts at 8 a.m.

The meeting of March 15 will be a pizza luncheon in the Ocean Pines Library at noon.

Cost is $8, with reservations available by contacting Dick Clagett at 301-788-1517 a week before the event.

Guests are encouraged to visit and learn about what the club is and does.

See www.kiwanisofopoc.org and Facebook for more information.

LIFESTYLES

March 2023 OceanP ines PROGRESS 39

Homegrown talent inaugurates Golf Academy Matt Ruggiere to offer lessons to golfers of all skill levels and ages

T

en years ago, a junior golfer named Matt Ruggiere could be found at the Ocean Pines Golf Club most mornings, his car headlights pointed at the driving range as he practiced chipping just before class.

This March, Ruggiere will return home to lead a new Golf Academy at Ocean Pines, offering lessons to players of all ages and skill levels.

Ruggiere grew up in the South Gate area of Ocean Pines and played golf for Stephen Decatur High School. He also toured the Mid-Atlantic region on junior golf teams.

He said the Ocean Pines Golf Club is still a favorite, because of the Robert Trent Jones design.

“Ocean Pines was always my home course. The design is just spectacular,” Ruggiere said. “I do think it’s one of the most challenging in the area, so being a competitive junior and having a place to play and practice, I felt like I always had an edge over kids that came from other courses. That helped me a lot when I started competing.”

Right after high school, Ruggiere moved to Colorado to teach snowboarding.

“I think being up there and away from golf for a couple of months was what really drove me to realize my passion for golf,” he said.

He moved back to Ocean Pines the next summer to refocus on golf, and then went to Florida for five years to tour the southeastern United States and West Coast as a competitive golfer.

He played in several U.S. Open qualifying rounds and built up his professional resume working at courses like the LPGA International in Daytona Beach, Florida, and the Indian Peaks

Golf Course in Boulder, Colorado.

After suffering from a nagging wrist injury several years ago, Ruggiere decided it was time to transition from playing to teaching.

“Through playing, the competition, and some of the networks and friends I made, I really found my passion in teaching and coaching,” he said. “I got the ball rolling with that and kept pursuing it.”

Ruggiere created the www.ruggieregolf.com website that helped brand his teaching program.

A few months ago, he messaged Ocean Pines Golf Director Bob Beckelman about bringing that program to the community where he grew up.

“For me, it was perfect timing,” he said. “I already had the backbone of the website ready to go, and I couldn’t wait to get started in Ocean Pines.”

Ruggiere’s name was brought up during recent budget meetings, and the Association started heavily advertising the new golf academy last month.

“My family’s been telling me there’s a little bit of buzz around town, which great to hear. My aunt and uncle in Virginia were even sending me pictures!” he said. “My finance, Lindsey, has also been super supportive.

“It’s just really exciting to be able to go back and be the face of the instruction program, because I have great memories of growing up and playing in Ocean Pines,” Ruggiere continued.

“Hopefully, I get some juniors who have the same passion that I did, and I can help them grow and pursue their goals.”

March 10 event to benefit Veterans Memorial Foundation programs

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he Worcester County Veterans Memorial Foundation will host an event on March 10 at the Ocean Pines Yacht Club to benefit the foundation’s educational outreach programs The outreach programs sponsor annual field trips to the memorial for all fifth-grade students in Worcester County.

The foundation recently released a video about the memorial, its mission, and the educational program for students viewable online here: https://youtu.be/W_SbPKZDcYc. Each student also receives a student activity booklet to take home, encouraging further discussions.

“This event will directly benefit our educational outreach programs,” Veterans Memorial Foundation President Marie Gilmore said.

“We feel this is one of most important things that the foundation does, and that all children should realize the sacrifices that veterans

The Veterans Memorial in Ocean Pines.

have made to protect our freedoms.”

Entertainer Tony Pace, previously named as the event headliner, announced in late February that he would not be able to participate.

Pace released a statement explaning his

The academy officially starts on March 7, but players can start booking private and group lessons now.

That includes an eight-week spring and summer program for juniors and women, and a spring break clinic for junior golfers on April 6-7.

“I think the game of golf has so much to offer.

It’s a sport where you can always push your- Matt Ruggiere self, whether you’re a junior just learning to play, or whether you’re 80 or 90 years old,” Ruggiere said. “It’s also just a great way to get outside, enjoy nature, and spend time with family and friends.”

Ocean Pines General Manager John Viola said he’s excited to welcome Ruggiere back.

“This young man is a homegrown talent, and I remember seeing him play as a junior golfer and being very impressed,” Viola said. “It’s just a great story, and we think Matt is going to be a fantastic addition to our team and to our Golf program.”

For more information and scheduling for the Golf Academy at Ocean Pines, visit www.ruggieregolf.com, or call 386-846-3505 or email mruggiere54@gmail.com.

decision.

“It is with profound sadness that circumstances have forced me to withdraw from participating in the March 10 Worcester County Veterans Memorial Foundation fundraiser,” he said. “The event is for the benefit of veterans and children’s educational programs. The Worcester County Veterans Memorial Foundation’s efforts are to be praised and worthy of your continued support. It is my hope and prayer that you all continue to support their cause, despite my absence.”

Gilmore said another act, which she described as a “top-notch entertainer from Atlantic City,” would fill in for Pace.

Doors open at 4:30 p.m. and a buffet dinner will be served at 5:30 p.m.

The show will start at 7 p.m.

Tickets are $70 and a cash bar will be provided.

Checks may be sent to WCVMF, PO Box 1576, Ocean Pines, MD 21811.

Tickets are limited and no tickets will be sold at the door. Single tickets are available, or tables of 10 can be purchased.

For more information call Sharyn O’Hare at 410-603-4777 or sharynop@gmail.com.

40 Ocean Pines PROGRESS March 2023

OPINION

COMMENTARY Elections Committee has done its due diligence

N

otwithstanding some unnecessarily harsh and unfair criticism by certain members of the Board of Directors, the Ocean Pines Association’s Elections Committee has performed admirably in its deep dive of what went wrong with last summer’s Board election and in its recommendations on how to avoid similar problems in this summer’s balloting.

While reasonable people can disagree on the merits of eliminating electronic voting this summer, one of if not the key recommendation of the committee, to fault the panel for not doing the job tasked to it is unacceptable hyperbole and an insult to the hard work of appointed volunteers.

Director Colette Horn’s critique was egregiously over the top and factually wrong. Here’s what she said during Board discussion of committee’s latest report: “What we asked to have done was not done by this committee.”

She contended that the Board asked the committee to look at all of the sources of voting, determine where the errors were, and what could be done to prevent them from happening again.

“We got nothing,” she said. “I’ve lost confidence in this committee.”

She said the Board should look at the composition of the Elections Committee to make sure it has the “correct” people on the committee.

A better idea is a deep dive into the composition of the Board of Directors to determine whether the “correct” people are serving.

In its most recent report to the Board, the committee did a thorough, commendable job explaining where the errors were and what can be done to avoid similar problems this summer.

The errors were well known even before the current members of the committee were appointed, after the former committee resigned en masse.

The new committee essentially confirmed what should be known by anyone paying attention as the election and its aftermath unfolded.

Simply point, the scanning equipment malfunctioned, resulted in an initial election result that produced more votes than what could have been produced by the number of participating lots. This result was fixed by a subsequent handcount, in which the number of votes cast were well under the number of votes that could have been cast by the number of lots whose owners participated in the election.

The old committee provided this explanation in its reports last year and it was confirmed by the new committee in its latest report.

The committee’s report detailed the reasons for the malfunctioning scanner, from the wrong kind of paper to software glitches. This isn’t rocket science.

Then there was the issue of owners of multiple lots not receiving ballots matching the number of lots owned.

This problem was identified even before last

RICK MENARD summer’s election was concluded, and it’s easily fixed.

It will be. A ballot will be sent to every lot in Ocean Pines whose owner is a member of the OPA in good standing. Again, this isn’t complicated.

It’s not crystal clear what Horn meant when she contended that the committee had not looked at all the sources of voting.

It’s hard to imagine the committee doing anymore than analyzing paper ballots that were initially scanned and then hand counted, and the category of ballots that were cast electronically.

These are the only conceivable “sources” of voting in Ocean Pines elections, as no one has seriously alleged ballot box stuffing by non-members or widespread hacking by Nigerian nationals.

This particular criticism is nonsensical.

Director Steve Jacobs echoed Horn’s unfair allegations about whether a “deep dive” had been conducted -- it was, at least as “deep” as it needed to be. But his more substantive criticism suggested that the committee had created a “new controversy” by advocating for the elimination of electronic voting at least for this summer.

As controversies go, this is a tepid one. Support for eliminating e-voting, whether temporarily for this coming summer only or permanently, surfaced after problems with last summer’s voting manifested.

Moreover, there was sentiment in the community in opposition to e-voting well before the prior Board voted to adopt it for the 2022 election. Check out the Ocean Pines Forum Website for confirmation.

But Jacobs’ cogent support for continuing e-voting in some form or another represents fair comment and is a legitimate issue for debate. As Jacobs and other supporters of e-voting content point out, last summer’s controversial election did not allege any substantive allegations that the e-voting system malfunctioned. True, some owners were confused by the “weighting” of ballots cast by owners of multiple properties, and some owners would have preferred, and subsequently asked for, one ballot for every lot owned.

This was not so much an issue of malfunctioning equipment as it was of poor communication to voters, and perhaps a poorly thought-out decision to employ “weighting” of ballots.

But this could be easily fixed simply by restricting e-voting to owners of single lots only, with owners of multiple lots participating in traditional voting by paper ballots.

This idea has been debated by the Elections Committee, but in the end discarded in part because no good solution has been found for producing an e-vote paper trail in the unlikely event of a request for a recount.

The software for that is elusive as is a vendor who might be able to find a solution.

The committee is also wary of the degree of communication necessary between the local vendor that handles paper ballots and the on-line vendor who accepts and then counts ballots submitted electronically.

Here the issue is ensuring that OPA members don’t try to vote more than once. u

OPINION

March 2023 OceanP ines PROGRESS 41

OPA budget deserved seven favorable votes

A

lthough the 2023-24 Ocean Pines Association budget passed 5-2 at the Board of Directors’ Feb. 18 monthly meeting, it really should have been unanimous.

The reasons for voting against it by two directors were flimsy at best.

They displayed an unseemly amount of pearl-clutching over a projected $100,000 loss in Aquatics and an alleged violation of an OPA policy that sets out as a goal breakeven finances for each of the OPA’s fee-based amenities.

This policy prescription is a goal, unlike other policy prescriptions in the governing documents that constitute requirements. Here’s the applicable language in Board Resolution M-02, Amenity Policy: “Fee based amenities and those providing food and beverage services shall be budgeted separately.

These amenities should be managed to cover, at a minimum, operating costs through fees and operating

Elections Committee

LIFE IN THE PINES An excursion through the curious by-ways and cul-de-sacs of Worcester County’s most densely populated community

By TOM STAUSS/Publisher revenues.”

Note the use of the word should, not shall, with respect to covering costs.

Elsewhere in M-02 the language is even clearer: “Fee-based amenities are funded, insofar as possible, by revenue generated by charging fees for use of that amenity. Operating costs not covered by fees shall be covered by using a portion of the annual assessment.”

There’s no ambiguity here.

Break-even amenities are a goal, not a requirement. When the goal isn’t reached, the assessment “shall” be covered by the annual lot assessment.

That said, directors Frank Daly

From Page 40 To the extent that the Elections Committee can determine it, the safeguards built into the system prevents that from happening. Emails containing pertinent data must be exchanged between the vendors, but the committee apparently believes this situation is ripe for error.

Perhaps it is, but this past summer there was no credible information to suggest that mistakes happened.

Director Frank Daly, who last year had pressed for an audit of the 2022 voting by an independent firm, during the Feb. 18 Board meeting did not join with Horn and Jacobs in criticizing the committee.

Instead he posed a question that he should have already known the answer to: How many lots participated in the 2022 election?

That information was included in the former committee’s two reports from last year and in the new committee’s report completed in late January. This number is not in dispute, or at least there is no reason to suggest it should be.

Daly wanted this number so he could determine whether more votes were cast in the election than could have been cast by the number of lots whose owner participated in the election.

That’s Daly test to determine whether the reported hand recount in September produced an accurate result.

Here’s the information contained in the former committee’s report from October and also cited by the new committee in its latest report.

According to both groups, 2,906 lots voted, comprised of 811 ballots voted on line and 2095 scanned ballots.

and Colette Horn are entitled to vote against the budget because of objections to the projected deficit in Aquatics in 2023-24. What they’re not entitled to do is to misquote or misinterpret M-02 to justify their vote.

As for the projected Aquatics deficit, it should be kept in mind that it’s only a projection.

It’s a best guess based on full funding of 40 lifeguards and additional support staff at the pools this summer. Full funding is needed for a full schedule at all five OPA pools this summer.

It’s always possible, though, that staffing shortages will once again be a problem this summer, a situation that while undesirable has a silver

Those 2,906 lots represented a total of 8,718 potential votes cast [2906 x 3].

Addendum four of the former committee’s report confirmed that 2,095 paper ballots and 811 on-line ballots were cast.

Results of the election after a Sept. 30 hand recount were Steve Jacobs, 1,894 votes; Stuart Lakernick, 1,682 votes; Monica Rakowski, 1,363 votes; Amy Peck, 1.348 votes; Josette Wheatley, 990 votes; and Paula Gray, 836 votes.

The number of votes counted for all six candidates totaled 8,113.

That’s 605 votes less than the owners of 2,906 lots potentially could have cast, meaning that under Daly’s test for a valid or invalid election, the reported results after the hand-count were not flawed.

Again, this is not rocket science.

OPA President Doug Parks during Board debate Feb. 18 disputed Horn’s contention that the Board had received “nothing” from the committee in the response to the Board’s inquiries from last year.

“We got a lot of information from that committee,” Parks said. “To paint them as having done nothing is a little disingenuous.”

That’s putting it mildly.

A better way of putting it is that accusing the committee of not being responsive to the Board’s quest for information is insulting, unfair and about as inaccurate as it’s possible to be.

Doctor Horn should apologize, but of course she won’t, any more than she apologized for going down the “bad faith” rabbit hole exposed in recent litigation involving former Director Tom Janasek and, before that, sitting director Rick Farr.

It is richly ironic that Farr is now Board liaison

lining: Payroll costs would be less than budgeted, conceivably enough to cover the projected $100,000 loss in Aquatics, or a portion of it.

Daly in his comments during the Feb. 18 budget discussion focused entirely on what he regarded as a need to raise Aquatics membership dues, with Horn adding that daily fees could also be adjusted to cover the projected loss.

This ignored the history of membership dues increases in Ocean Pines and basic economics: Charging more for something means there will be less of it, in this case fewer members.

Daly in particular said only revenue increases will suffice to eliminate the projected deficit, ignoring or perhaps blissfully unaware that staffing shortages could result in lower labor costs.

Daly’s prescription is the wrong one, as of his colleagues readily understand.

to the reconstituted Elections Committee and part of a Board majority resistant to whatever agenda Horn chooses to pursue in the waning months of her final year of her second term as a director.

Meanwhile, the Elections Committee is doing what it should be doing in recommending ways to avoid repeating last summer’s mistakes, as they work to restore faith in OPA’s elections.

If the price for that is elimination of electronic voting this summer as a search for a paper trail system continues, then so be it. -- Tom Stauss

The Ocean Pines Progress is a journal of news and commentary published monthly throughout the year. It is circulated in Ocean Pines and Captain’s Cove, Va. 127 Nottingham Lane Ocean Pines, Md 21811 PUBLISHER-EDITOR Tom Stauss stausstom@gmail.com 443-359-7527 ADVERTISING SALES Frank Bottone frankbottone@gmail.com 410-430-3660 CONTRIBUTING WRITER Rota Knott 443-880-3953

42 Ocean Pines PROGRESS March 2023

CAPTAIN’S COVE

CURRENTS

Judge calls for plaintiffs to produce evidence of Corridor ownership Hearn says that it’s still very early in the Birckhead case and premature to celebrate procedural wins

By TOM STAUSS Publisher he judge presiding over the lawsuit filed by Theresa Birckhead and six other Captain’s Cove residents challenging road access to the proposed Hastings/Mariner Townhouse project has told the plaintiffs that they must produce evidence that Captain’s Cove Golf and Yacht Club owns the entire length of Captain’s Corridor, including the portion that provides direct access to the proposed townhouse development.

A hearing was held in Accomack County Circuit County Feb. 17 to address issues raised in initial arguments by the plaintiffs and defendants. CCGYC and CCG Note, the Cove’s developer, are being sued by

T

By Tim Joliet

the Birckhead group.

Ownership of the main thoroughfare that runs through Captain’s Cove is just one of many issues raised in the litigation that is pitting the seven Cove residents against the CCGYC Board of Directors and CCG Note and affiliates.

CCGYC President Tim Hearn, who has and has had business relationships with CCG Note principles, has said that the Mariner/Hastings family never conveyed a portion of Captain’s Corridor adjacent to the proposed townhome development to the Cove property owners association.

If the plaintiffs fail to produce a deed or other evidence proving Cove association ownership of the entire length of the Captain’s Corridor,

then one of the primary arguments of the plaintiffs will fail, Hearn said in a Feb. 22 interview with the Cove Currents.

The judge during the hearing said the plaintiffs in the discovery process must be able to prove ownership of the entire length of Captain’s Corridor, Hearn said, adding “no such conveyance or deed exists.”

Hearn acknowledged that some of defendants’ motions in the pending case were not granted by the judge, except that he determined that the deed to Captain’s Corridor proving ownership will need to be produced during discovery.

Some of the plaintiffs in the case have taken to social media declaring victory in the Feb. 17 court hearing on the case, but Hearn was dismis-

sive of any claims of victory this early in the case.

“That’s like saying you won the game because you showed up for the national anthem on time,” he said.

“It’s very early.”

Hearn said another issue to be addressed during discovery will be the contention by the plaintiffs that a certain builder had not been assessed annual lot assessments.

“They’ll be asked during discovery what evidence do they have that assessments haven’t been paid,” Hearn said. “If they don’t have evidence, it’s very likely that the judge will reject this argument in the suit even before the case goes to trial.”

Previously Hearn has said that the builder in question had been assessed but was in arrears.

“This builder just made a $65,000 payment to the Cove including interest,” he said.

Another issue in the case involves a transaction that resulted in Aqua Virginia, the Cove’s water and sewer utility, acquring CCGYC land for possible use as future rapid filtration basins (RIBs), Hearn indicated that the judge’s order for the plaintiffs to either drop the claims about the RIBs or to include Aqua Virginia in the lawsuit is “interesting. Including Aqua will drive up legal costs for the plaintiffs, To Page 44

CAPTAIN’S COVE CURRENTS

March 2023 Ocean Pines PROGRESS 43

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44 Ocean Pines PROGRESS March 2023

CAPTAIN’S COVE CURRENTS

Marina Club, restaurant reopen 4 December 2022 Captain’s Cove Currents

Hearn said no such charge and that “bulkheads on the gut required for any of the hundreds the authority to exempt Capital from waterfront. In addition, there is and all HVAC and refrigeration equipment hasStonewall language. paying assessments on 30 lots An it purchased from the Army Corpswas of Engineers been returned to the roof and turned back on. original cost estimate of $400,000 for Note inin Sections 7 and 10roof in 2019. such a bulkheading int “The shingles will CCG be started about 1, two the only, The and suit ancillary costs not includedactivity in quoted Jimcontractor Silfee, a CCGYC director andestimate investoris the He saidfor that eros weeks. The weather has set the back the original reason thestormwater, expectCCGdue Note, “falsely” stating thatfinal Stonewall control permits have been obt on starting these rightinaway to aas previously ed higher cost. assessments. from Accomack County in an scheduled project,” sheCapital said. was exempt from paying The roof replacement project is quite involved.

Hearn acknowledged that the declarant/develing Seaview Street at some da The project began in early February.

It includes removal of all the HVAC equipment, oper can’t delegate the dues exemption it enjoys But CCGYC is still awaiting The pool closure could last for up to 90 days. gas lines and vents from the roof, using a crane, to a buyer of lots in multuple sections of Captain’s U.S. Army Corps of Engineers, Gillis Gilkerson of Salisbury is the general con- and then putting it all back.

Cove, and could only do so if a buyer purchases an whether and when that might h tractor firm on the project, assisted by sub-conDuring the estimated 22-day closure of the entire section.

There is no governing docum tractors building, refrigeration trucks were moved on site But he said the plaintiffs seem to be unaware Cove that obligates the decla The not-to-exceed cost of the project is to protect inventory from spoiling. that CCGYC is billing Stonewall Capital for the complete road construction in S $650,000, according to the agreed upon contract With the reopening of the Marina Club restauannual dues of the 30 building lots it owns.

13 in the community, and it’s rant, that phase of the project is complete.

“They’re not exempt,” Hearn said.

2002 that CCGYC is responsi An additional protective ventilation layer is Indeed, the Cove Currents has been informed provements according to an a judgments on their validity, Hearn said.Capital appears being on added to the substructure under the roof, that Stonewall an accounts Declaration in that year.

Another issue to bereceivable resolved in the suit is a to prevent the sort of moisture build-up list of property owners who are delinThe suit repeats that a complex a contention that CCG quent Note in has failed to pay of the roofing in thesuit, indoor pool area paying annual duescaused to themuch CCGYC. earlier alleging that CCG N $50,000 per year to CCGYC pursuant to the 2012 to deteriorate.

The plaintiffs allege that CCGYC does not in violation of restrictive coven settlement agreement.have the authority “to chargeAdjustments will be Captain’s made to protect equipassessment-payCove numbered res “To say this hearing was some great victory ment with moisture control, with 50 to 60 percent ing members the cost of constructing a bulkhead lots to the former Captain’s C for the plaintiffs as hasalong been Starboard said on social media humidity the target, with a pool temperaStreet, a cost that should be paidalong pany operated

by Hearn, whic isn’t factual,” he said. by CCG Note.” According to ture of 82 degrees. the suit, the associa- to Aqua Virginia.The lots, consi In remarks during the Feb. 24 Operating Com- a bulkhead The building’s butaside there’sfor possi tion is proposing to install alongroof theis mostly acres, shingle were set mittee meeting, committee Chairman Mark Maa large area not visible from the ground where (RIBs) edge of Starboard Street abutting CCG Note lots rapid infiltration basins jerus said on advice of at counsel his only update on equipment is mounted on a flat roof. the expense of the Cove association.”

The CCGYC deed restriction the case would be a “no comment.”

All areas are undergoing structural repairs.

New lawsuit filed Pool remains closed as roof continues From Pageproject 1

By TOM STAUSS Published he Marina Club reopened Feb. 24 as the roof replacement project has made substantial progress. The restaurant reopened for business Feb. 24, and March has a full slate of live entertainment scheduled.

The indoor pool, however, remains closed, as this is the area of the roof project which has required the most extensive reconstruction.

In an e-blast issued in mid-February, Senior General Manager Colby Phillips said that the flat part of the Marina Club roof had been completed

T

Birckhead litigation

From Page 42 and will also mean that Aqua will be able to include its costs to defend in its next rate case, thus causing water and sewer rates to be increased by its Captain’s Cove customers,” Hearn said.

The Cove Currents has learned that the plaintiff’s attorney indicated that he would be adding Aqua as a defendant to comply with the judge’s order.

The judge allowed other issues in the case “to go forward” to discovery without making any

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CAPTAIN’S COVE CURRENTS

March 2023 Ocean Pines PROGRESS 45

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Audit of Troon books shows accountant didn’t review cash receipt files, Hearn says Cove president says suit against former Cove management company might proceed after completion of forensic probe by CohnReznick

By TOM STAUSS Publisher here’s been some developments in the ongoing forensic audit of Captain’s Cove Golf and Yacht Club finances for the first six months of the 2021-22 fiscal year ending this past October, in which the Cove’s former management company, Troon Golf, did not produce monthly financial reports.

The omission resulted in the termination of an agreement under which Troon through an affiliate provided management and financial

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services to CCGYC. It also resulted in a lawsuit filed against the management company

by CCGYC to find out the status of more than $1 million in unaccounted for CCGYC funds under Troon’s control. The parties have agreed to put the lawsuit on hold pending completion of the audit.

“Just because we will eventually receive the audit does not mean that the lawsuit is over,” CCGYC President Tim Hearn said, suggesting that the audit might not end up resolving differences at issue..

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Hearn said the amount of cash that was possibly used inappropriately by Troon management and without authorization of CCGYC might now be closer to $1.2 million The Cove Board of Directors hired the regional auditing firm CohnReznick to conduct the forensic audit of Troon’s Captain’s Cove books, a process that has been under way for several months.

The results so far have been disappointing, Hearn said.

“We’ve learned that Troon’s accountant didn’t review the cash receipt files for individual [Captain’s Cove] accounts,” he said, instead only compiling a composite monthly total.

“CohnReznick concluded there was a gap in what the accountant did compared to what was supposed to have been done,” he added. “It’s disappointing that Troon didn’t do what they said they would do in the

operating agreement with CCGYC.” Hearn said that the auditors are having to review individual cash line items to produce an accurate schedule of accounts receivable activity for the six months at issue.

In addition, Hearn said the auditors are trying to identify whether there were any operating losses during this period and will be producing a statement of cash flows.

Hearn has said it’s not necessarily true that $1 million or more is truly missing, but he expressed doubt that the problem lies simply with unaccounted for accounts receivables.

“If it was in AR, they wouldn’t have been able to operate in Captain’s Cove as long as they did,” he said.

His interpretation of what’s been learned so far during the audit is that the accountant in charge of the CCGYC may have been trying to shift blame for errors in cash accounting to others working for Troon.

If that’s the case, then getting to the bottom of the unaccounted for more than $1 million will prove to be more elusive than Hearn had hoped it would be.

The audit is being conducted on the premises of Troon Golf offices in Reston, Va. Documents that are being examined include general ledgers, bank reconciliations, balance sheets and income statements.

Board rejects ballot review complaint Some procedural changes may be adopted for future Cove elections

By TOM STAUSS Publisher he Board of Directors has formally rejected a Nov. 23 complaint from a group of property owners unhappy with the way a review of ballots in the 2022 Board election was handled. A hearing on the complaint was held during a Jan. 23 Board meeting, with no final decision issued at that time.

The Board dealt with the complaint as a consent agenda item Feb. 6, deciding “not to accept or implement the actions requested by the complainants in the manner stated in the complaint.” Property owner F. Barrett Magrogan was the spokesman for the group during the Jan. 23 Board meeting.

Consent agenda items are those addressed via email or other electronic means between regularly scheduled Board meetings.

The complaint alleged that there was a prior lack of instructions by reviewers as to the ballot inspection process.

The complainants said they were unable to ask questions prior to To Page 48

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CAPTAIN’S COVE CURRENTS Ballot complaint

From Page 46 the review or to secure the mailing list of ballots.

They were not given direction on to how the ballots should be displayed during the review, nor was there a code of conduct in place during the review, the complainants said.

In a Feb. 9 letter to Magrogan in accord with Captain’s Cove Golf and Yacht Club governing documents, General Manager Justin Wilder on behalf of the Board countered allegations contained in the complaint.

Wilder’s letter said that Cove association members were provided instructions at the beginning of their review session, “and if they desired an additional time to review the ballots, that was available to them. Lists of members not eligible to vote and a mailing list of members [were] already available to members per the VAPOAA [Virginia Property Owners Association Act] and CCGYC processes.”

The letter indicated that the Cove property management team determines the display of ballots during the review process, and those members inspecting the ballots “are required to not relocate the ballots into other segments, or separate the ballots from their envelopes, as was attempted by one of the complainants.”

With respect to complainants’ contention that certain Board members should not have been allowed in the room during the review process, Wilder’s letter said that Virginia non-stock corporation law “indicates that new directors are immediately seated after the announcement of election results. The ballot review occurred well after the election result announcement. Board members observing the ballot review are acting within their fiduciary duties,” he said.

According to the letter, the property management team allowed for ballot review groups of up to five members at a single time to review ballots.

“When the larger numbers occurred, it was deemed appropriate to have multiple observers present to ensure the integrity of the process,” the letter said, adding that CCGYC employees operate under a code of conduct within their employment agreements, and Board board members do so under the CCGYC bylaws.

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ESVBA offers update on broadband build-out Non-profit enrolls 189 Captain’s Cove customers so far

By TOM STAUSS Publisher astern Shore of Virginia Broadband Authority has signed up 189 customers in Captain’s Cove as of Feb. 24, recently completed laying of high speed fiber-optic cable in a swath of the community, and will soon be completing another area that will bring its build-out to 59 percent.

That’s ahead of a two-year plan to make high-speed Internet available to the entire community, said ESVBA Director of Construction Kyle Bundick, who was invited to provide a broadband update during a Feb. 24 Operating Committee meeting.

He said a swath of Captain’s labeled Section 3, not to be confused with a neighborhood in Captain’s Cove also called Section 3, was completed weeks ago, comprising 32 percent of the community.

Contractors began laying cable in a second swath, called Section 4, about 2 and a half weeks ago, Bundick said, adding then when completed Section 4 will result in broadbank availability to 59 percent of Captain’s Cove.

The community is divided up into five sections, with build-out to occur in priority sequence of 3,4,2,5 and 1.

“That is subject to change,” depending on ground conditions, Bundick said.

He asked for patience and also said that phone calls asking about availability to particular streets or home addresses are not helpful.

Homeowners will be notified when broadband is available to them, he said.

Bundick said ESVBA’s contractor that is installing cable has been helped by the winter’s mild weather.

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Ron Wolff to host March 13 town hall

Senior General Manager Colby Phillips has announced that Accomack County Board of Supervisors President Ron Wolff will host a town hall meeting in Captain’s Cove on Monday, March 13, at the Marina Club banquet room beginning at 6:30 p.m. The meeting will be in-person and accessible via Zoom.

This will be the first meeting hosted by Wolff since last fall. Edward Taylor, District 2 Board of Education member, will also attend the meeting, Phillips said.

A preview of the next county budget to be unveiled later that week is likely, she said.

The announcement of Wolff’s town hall was made during the Feb. 24 Operating Committee meeting.

During the property management team segment of the meeting, Phillips announced that: • An initial draft of the 2023-24 Captain’s Cove Golf and Yacht Club bud-

Ballot complaint From Page 48 “It was disappointing to the employees and volunteers who monitored the ballot inspection process that several of the complainants chose to kick and bang on the entry doors to the room. These actions caused other ballot inspectors to report of being intimidated by this group,” the letter said.

The letter to Magrogan indicated that there may be some relief given to the complaints despite the fact that “no violations of any bylaw or rule were cited by the complainants.”

He letter said that the complaint will be referred to the Operating Committee, the CCGYC secretary and property management team “to determine if aspects within the complaint can be developed for adjustments to election and ballot review procedures which are equitable to both Class A and Class B Members, as well as aligned with the VAPOAA statutes and CCGYC organizational documents.”

The Jan. 23 hearing was recorded, and the meeting audio is available and the complete transcript will be posted on the CCGYC website when it is available.

get will be introduced May 19, with in-house departmental reviews scheduled from May 22 to June 1.

Budget meetings open to the membership will take place beginning in June, she said.

• Stride and ride days will take place weather permitting the second or third Wednesday of the month through October on the cart paths of the Cove golf course, once play has ended for the day. Walkers and bikers but no motorized vehicles will be allowed on the course during these events, she said.

• Fling golf, an alternative to traditional golf that uses a club-like instrument to “throw” a golf ball rather than hit it, will be coming to Captain’s Cove in the spring. It will be played on the Cove golf course. Lessons will be offered on how to properly “fling” a golf ball. Phillips said the game generally proceeds faster than a regular game of golf.

Since a golf ball is flung rather than hit, it also produces less wear and tear on a golf course, avoiding divots.

Wilder offers tips for speedy ECC approvals

Property owners who would like fast approval of their applications for new homes or modifications to existing homes should avoid submitting incomplete applications, with missing information that requires follow-up to address, General Manager Justin Wilder said during the Feb. 24 Operating Committee meeting.

He said applicants need to supply relevant drawings, photos and other material, inviting property owners intending to submit applications to meet with him before hand to discuss requirements.

Roof repair and replacement is one area where there are few requirements, Wilder said.

He announced that inspections of homes to ensure that fuel tanks are properly screened with lattice or shrubbery will commence May 15, and that the annual bulkhead inspection by boat will also occur in the spring.

Majerus announces new auditing firm

Operating Committee Chair Mark Majerus announced during the committee’s Feb. 24 meeting that the firm of Rosen, Sapperstein and Friedlander of Towson, Md., has been hired to conduct CCGYC’s annual audit, replacing UHY, a large national accounting firm that acquired Trice, Geary Myers (TGM), the Cove’s long-time auditing firm, last year.

Majerus said UHY declined to continue TGM’s business relationship with the CCGYC. Rosen, Sapperstein and Friedlander is a prominent regional firm handling a wide range of financial services, according to its Website.

Majerus said the annual audit can’t begin until the ongoing forensic audit of the first six months of 2022-23 by CohnResnick is completed. Those six months cover the period when Cove finances were managed by an affiliate of Troon Golf.

The new auditing firm will also handle the Cove’s annual Board of Directors election, Majerus said.

He also announced that: • The dredge boat that was severely damaged by a recent act of vandalism can be repaired.

“It’s good news,” Majerus said, adding that it means the Cove won’t have to spend a large sum of money buying a new dredge boat.

Repairs will be done by the Cove’s maintenance staff in the spring when this season’s two-month dredging program is completed, he said.

So far, this year’s program has removed 1900 cubic yards of of infill from the canals, he said.

Two weeks were suspended because of a starter failure in the leased dredge boat, but Majerus said another two weeks will be added on beyond the contract’s end date at no addition charge to the Cove.

Majerus said requests for canal dredging beyond that which is already on the map for this season can’t be honored because of the cost involved in relocating equipment.

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Committee recommends amenity fees Pro-rated, six-month plan for golf would last through Sept. 31, with annual memberships returning in 2023-24

By TOM STAUSS Publisher n amenity user fee structure for swimming pools in Captain’s Cove and a pro-rated membership structure and daily fees for the Captain’s Cove golf course were endorsed by the Operating Committee at its Feb. 24 monthly meeting. It now goes to the Board of Directors for final approval, which is likely.

The daily user fees and golf membership structure were devised by the Property Management Team and a working group and then forwarded to the Operating Committee for review.

Committee Chair Mark Majerus unveiled a proposed annual membership structure for golf but said that dues would be reduced by one half to cover the six-month April through September time-frame.

This pro-rated rate structure for golf will be a one-time event, he said, with memberships reverting to a one-year cycle beginning in October, the beginning of the 2023-24 fiscal year.

The half-year membership is designed to bring the membership into alignment with Captain’s Cove and Yacht Club’s October through September fiscal year.

Two Cove’s two outdoor and one indoor pools are available for use by Captain’s Cove Golf and Yacht Club members for no additional charge, but the Operating Committee is recommending fees

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for guests of members. Fees for longer-term renters have also been proposed.

The recommended pool daily fee for guests of members is $5 per individual, with a three-day pass costing $10 and a seven-day pass costing $25. These fees are non-refundable, with dates and names of a guest to be provided by a CCGYC member in the case of an advanced purchase.

For the category of non-member guests, or renters, the daily pool fee would $15 for individuals and $75 for seven days. An annual pass is available for long-term renters at a cost of $750 for individuals.

There is no charge proposed for children four and under.

For the remainder of the 2022-23 fiscal year only, six-month golf membership plans are proposed at half the cost of an annual plan. Members and non-members alike may also pay daily rates to play the Cove golf course.

Member daily rates are $11 greens fees for walkers playing nine holes, with a golf cart an additional $5.

The 18-hole rate is $22 greens fees, with a golf cart an additional $10.

For non-Cove members, which could include renters or public retail golfers, the cost for nine holes would be $22 for walkers and an additional $8 for a cart. The proposed 18-hole rate is a $44 greens fee and a $16 cart fee. Non-Cove members

would pay an additional $10 on holiday weekends and holidays.

The six-month pro-rated golf membership plans include a walking plan for CCGYC members with unlimited greens fees at $220 for individuals and $330 for two full members per lot. A CCGYC member may opt to rent a cart for $5 per nine holes.

With a growing number of member-owned carts in the community, the committee is endorsing a bring-your-own-cart plan including unlimited greens fees at an annual rate of $385 and a family (two full members per lot) at an annual rate for $577.50.

For those who want an annual pre-paid plan for cart usage, the cost is $550 for individuals and $825 for member households with two full members.

Long-term renters would be able to purchase an annual golf plan at the same rate as Cove members.

The prorated golf plans for the general public would be $337.50 for individuals and $500 for two-member households, including unlimited greens fees for walkers and an additional $8 cart rental fee per nine holes.

The unlimited cart use plan for the non-member general public including unlimited greens fees and unlimited cart use would be $800 for individuals and $1,100 for two-member households.

Phillips commends Cove employees for longevity

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Represent more than 200 years of service to community

enior General Manager Colby Phillips cited 14 employees of Captain’s Cove Golf and Yacht during the Feb. 24 property management team meeting for their longevity.

“As I approached my two-year mark this past week, I asked Dana [Massey] to get together a list of employees who had been with Captain’s Cove for five years or more as I wanted to share. Not only was I impressed by what I saw, but WOW!” she said.

“The experience the 14 of you bring to the team is awesome! Longevity in a job means something and that is dedication, commitment, and hard work, plus care for something you do. I see that in each of you, as do your peers, and it was important to take a moment to recognize all of you,” she added.

Phillips thanked the employee and told them they were appreciated and valued.

The 14 employees with five or more years of employment include: golf and maintenance, Tammy Bowden, 15 years this June; David Suiter, 12 years this April; and Cole Scott, 23 years this April.

In food and beverage, Riki Smith, 18 years this July; Shanon Clark. nine years this December; Christina Burkhead, six years this January; Brittany Burkhead, eight years this June; and Leanne Hisert, eight years this May. Roads and Maintenance, Jimmy Giddings, 16 years this May; Mike Harmon, 24 years this December; and Elwood Taylor: 26 years this May. Administration, Justin Wilder, ten years, February; Dana Massey, 30 years this August; and Julia Knopf, five years, January.

Phillips said that that combined all 14 employees represent more than 200 years of service to Captain’s Cove.

Shanon Clark

Jimmy Giddings

Mike Harmon

Julia Knopf

Dana Massey

Cole Scott

Riki Smith

Justin Wilder

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Committee defers decision on Fleming Road signage Phillips to convene working group to deal with structure that advertises the Marina Club and Gemcraft Homes

By TOM STAUSS Publisher enior General Manager Colby Phillips will organize a working group to consider whether to continue to lease land at the intersection of Fleming Road and State Line that’s the site of a sign that jointly advertises Captain’s Cove Marina Club restaurant and Gemcraft Homes, a builder active in Captain’s Cove.

Once the working group makes a recommendation to the Operating Committee on whether to continue with the land lease, cancel it or not renew it, the matter will then be kicked up to the Board of Directors for a final decision.

The lease costs Captain’s Cove Golf and Yacht Club $200 a month, or $2400 per year.

Gemcraft Homes, which built the sign about five years ago in exchange for having its business advertised on it, does not pay any portion of the land rent, a situation that some members of the Operating Committee during discussion at their Feb. 24 monthly meeting said they would like to end.

Committee member George Finlayson offered a motion to remove Gemcraft from the sign, but he later withdrew it pending creation of the working group, its findings and recommendations.

CCGYC President Tim Hearn, who isn’t a member of the Operating Committee, told members that Gemcraft at no cost to CCGYC rebuilt the sign about five years ago.

It was similar in design to a 1970s-era sign on

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site that was in poor condition. Finlayson said he recalls a similar structure at that locations for decades.

Hearn said the basic question to be considered is whether the Cove wants to continue with the land lease or give it up, with the likelihood that a commercial entity would jump at the opportunity to take it over.

If the decision is made to continue with the lease, Hearn said the Operating Committee could then consider whether it wanted to continue to allow Gemcraft to share space on the sign.

Most committee members seemed inclined to remove the Gemcraft signage, but that was before they were made aware that Gemcraft had borne the cost of rebuilding it.

Some committee members suggested that Accomack County could be approached to install signage on the property promoting Captain’s Cove or directing motorists to Captain’s Cove and its amenities Other than this particular sign, there is no way for those unfamiliar with the area other than through vehicle GPS to know where to turn to find Captain’s Cove.

Phillips said she would explore the idea of some sort of county signage with Ron Wolff, the Accomack County Board of Supervisors president who is scheduled to host a town meeting in Captain’s Cove on March 13.

Another suggestion that the working group could explore is whether the cost of the land lease

Dated signage on land leased by Captain’s Cove Golf and Yacht Club.

could be shared by CCGYC and Gemcraft.

Phillips said that any Cove resident who would like to serve on the working group should contact her.

She said her intention is to have gathered sufficient information to make a recommendation to the Operating Committee at its next meeting March 31, but no later than the committee’s April meeting.

Majerus withdraws solar guideline motion Working group to be established to hash out rules for solar panels on roofs in Captain’s Cove

By TOM STAUSS Publisher andidly expressing frustration at the inability of the Operating Committee to reach consensus on proposed guidelines for rooftop solar installations in Captain’s Cove, Committee Chair Mark Majerus withdrew a proposal he offered that would have introduced more flexibility in situations where solar is problematic.

During the committee’s Feb. 24 meeting, Majerus offered a motion to establish a procedure in which an owner could apply for a variance that would allow for rooftop solar panels or collectors in situations that, under current rules, would most likely not be allowed.

Majerus said his proposal for greater flexibility in the application process would bring the Cove into compliance with the Virginia Property Owners Association Act (VAPOAA).

His proposal would retain language in the current Cove solar policy in which solar panels would be expected to have a minimal visual impact on the immediate neighborhood, would not be visible from a street, would lie flat on a unit’s roof, and would be located on the rear roof.

But these restrictions could be circumvented if the owner could show that they prevent the desired energy production of a solar installation.

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In an application to the Environmental Control Committee, an owner could present documentation from an independent solar design specialist that a proposed solar design increases solar energy collection by five percent over the cost of an alternate roof installation, or that the alternative design would reduce the desired energy production by ten percent.

The designer would need to be certified by the North American Board of Certified Energy Practitioners and licensed in Virginia and could not be employed by the solar installer hired by the homeowner.

Majerus’ proposal suggested that the Environmental Control Committee or Board of Directors could require an interview with the design expert to verify findings. He said his proposal would add flexibility to the Cove rules and would bring it into compliance with VAPOAA language.

But committee members didn’t embrace Majerus’ suggested guideline changes. In one instance, a member suggesting elimination of the current rules requiring no visibility from the street and placement of panels on the rear roof.

When it appeared no consensus could be reached on his motion to approve the variance procedure, Majerus withdrew it and pivoted to a proposal for Senior General Manager Colby Phillips to create a working group to deal with the issue. Committee members agreed.

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