May 2025 Ocean Pines Progress by Ocean Pines Progress

MK Elections chosen as election vendor for second year

May 2025

Following the withdrawal of ACE Printing and Mailing of Berlin from the vendor selection process, the Ocean Pines Association Board of Directors voted 5-2 with two abstentions during a special meeting on May 2 to approve MK Election Services of Pittsburgh to manage all aspects of the 2025 Board election. Coverage begins on Page 12 and continues through Page 20.

INSIDE THIS EDITION Ocean Pines .............. Pages 1-45 OPA Finances ................. Page 46 Opinion ...................,...... Page 47 Lifestyles ........................ Page-49 Captain’s Cove ...... Pages 50-63

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

OPA attorney calls out commissioners for debt scheme

A sharply worded letter sent to Worcester County Commissioners by attorney Bruce Bright, representing the Ocean Pines Association as outside general counsel, calls the county’s plan to have ratepayers across all enterprise funds cover the cost of a $9 million water and wastewater deficit unlawful, unfair, and potentially grounds for civil litigation. County Commissoner Chip Bertino hosted a town hall to provide even more detail. Coverage begins on Page 42 and continues through Page 45.

www.issuu.com/oceanpinesprogress

Touch of Italy reopens Yacht Club First impressions by early diners May 1 were all positive; new menu to be finalized based on customer feedback By CINDY HOFFMAN Contributing Writer ouch of Italy officially opened the doors of the Ocean Pines Yacht Club for customers May 1. While the Yacht Club was not packed with diners right at the 4 p.m. opening, when a reporter stopped by to gather the ever-important first impressions, those that came were very pleased with both with the personal service from staff and management and what they said was the fantastic food. The late afternoon skies were a bit cloudy, but that did not stop customers from enjoying drinks and dinner at the tiki bar. Peter and Amy O’Ristian came by with some friends. They enjoyed the crab cake entry and the steak egg rolls. “The crab cake was a show stopper,” Peter said.

H U N G R Y?

FROM BREAKFAST TO HAPPY HOUR FIND IT HERE

“The steak egg rolls were fantastic,” Rick Farr, an Ocean Pines director, said. The Yacht Club Louie included delicious seafood and was big enough to bring home leftovers, according to Kim VanBuskirk. The inside of the Yacht Club was upgraded, with new lighting, artwork and decorative room dividers for privacy between some of the tables. The menu has not been finalized, suggesting May 1 was more of a soft opening than a grand reopening. A new chef is coming the week of May 4 and will have his own ideas, according to Manager Warren Dumarsair, who was visiting with guests in the restaurant. “After the first week, we will be evaluating what sold and share information with the new chef. We still want To Page 3

2 Ocean Pines PROGRESS May 2025

... And Don’t Get Taken for a Ride by the Wrong Roofing Company!

COVER STORY Yacht Club reopening

From Page 1 this to be the Yacht Club, and stay true to the basics and foundation, but make our own name,” he said. Dumarsair comes from the Spain Wine Bar, an upscale restaurant in Ocean City. “I want to bring that same high level of service here. Not just service but hospitality.” By May 15, the full menu should be locked in with an extended wine list as well. They are currently serving Touch of Italy house wines, which received positive reviews from folks at the tiki bar. Dumarsair said they will also be providing gluten free options on the menu and will be training the staff on allergy issues. “We want to bring the best quality to our guests for the best price,” Dumarsair said. “Ninety-five percent of the people coming here have been coming here for years. This is your Yacht Club. We will be catering to the community and want feedback.” “The most important thing is the guest,” Bob Ciprietti, chief executive offiicer and owner of Touch of Italy, said in a recent interview. “You’ve gotta take care of the people who take care of you.” There were rave reviews for the

May 2025 Ocean Pines PROGRESS 3

Warren Dumarsair, a manager at the Yacht Club, enjoyed circulating among the customers on opening night May 1.

clam chowder, shrimp tacos, spaghetti and meatballs, wings with sweet Gochujhang sauce and grilled jumbo shrimp. And save room for dessert. The giant chocolate eclair is not to be missed, and is definitely big enough to share. There are also options for handTo Page 5

To Page 5

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Yacht Club reopening From Page 3 held sandwiches, and flatbreads, salads, burgers and a nice list of starters. Main courses consisted of grilled flank steak, ribs, chicken and salmon, seafood Fra Diavolo and fish and chips. The wait staff was very attentive and willing to bring tastes of the chowder and wing sauce to the table. The restaurant was fully staffed and Dumarsair said more staff will be arriving for the summer, with many returning from last year. The Golf Clubhouse, which had a limited reopening last month, has also introduced a new menu. Lee Puryear is a regular, who visits the restaurant every Sunday with friends after church. “The food has been excellent,” he said. He likes the fact that the staff brings out items for them to taste and asks for their opinions. Ciprietti, being a golfer himself, really wants to cater to the golfers at the Clubhouse Grille. He plans to be open a half hour before the tee sheet and stay open to accommodate the late tee time golfers. To Page 8

Kim VanBuskirk, Amy O’Ristian, Doug Parks, Peter O’Ristian and Rick Farr enjoyed their first night at the tiki bar this season.

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Bruce Bright Letter to Worcester County Worcester County Commissioners c/o Roscoe R. Leslie, Esq., County Attorney Re: Planned Unlawful and Inequitable Water and Sewer Cost/Debt Allocation My Client: Ocean Pines Association, Inc. Dear Commissioners (and Mr. Leslie): I serve as outside general counsel for the Ocean Pines Association, Inc. (“OPA”), and submit this letter to your attention on behalf of the OPA Board of Directors. Certain aspects of this critical matter are, by now, well known and understandably have received a great deal of public and media attention. Other aspects of the matter are, unfortunately, not fully known, due apparently to the County’s failure or refusal to either fully investigate or to fully disclose information and details that are obviously of great public interest and importance. Here is what OPA presently (and generally) knows, thanks in large part to Commissioners Madison “Jimmy” Bunting, Jr. and Anthony W. (“Chip”) Bertino, Jr., appropriately sounding the alarm on behalf of their respective constituents (and other County residents/property owners)1: • In Setptember 2024, the Commissioners were first made aware of a significant Water and Sewer service area enterprise fund problem, specifically, the previously undisclosed mismanagement of those enterprise funds over time, and the resulting deficit/insolvency of many of the separate enterprise funds established and maintained for each of the eleven water and sewer service areas in the County (Ocean Pines being one of those eleven service areas). • Commissioner Bertino has publicly described the issue as accumulated deficits in service areas and (undisclosed and unauthorized) transfers that had been made between service area enterprise funds, from reserves existing in particular service area funds to cover deficits arising in other service area funds; all of which violated County financial protocols. • The mismanagement had occurred to such an extent that an overal deficit of over $9 million had accumulated, allocable to different service areas in different amounts (based on the particular and varying fiscal condition and needs of each service area). • Again, the mismanagement apparently included County staff, without authorization, “borrowing from” certain solvent enterprise funds (existing and reserved, by law, for certain service areas) in order to cover shortfalls in other enterprise funds (existing and reserved for other service areas). • Apparently, despite there being awareness of this financial malfeasance since September 2024 (or earlier), for unknown reasons, no formal and/or outside audit or investigation of the mater has occurred, and no detailed investigative or audit report of any kind has been issued, at least none that has been made publicly available. Indeed, the majority of the Commissioners appear committed to effectively burying critical details associated with this matter, and limiting the scope of public discussion. • In January 2025, to address the $9 million (aggregate) enterprise fund deficit, again arising from gross mismanagment of those funds over time and from unmet financial needs of certain service areas not covering their own costs and expenses, the Commissioners voted unanimously to transfer $9,061,187.00 from the County’s General Fund: 1) as a grant of $2,760,177 to the Riddle Farm service area; and 2) as loans to other service areas as follows: $242,000 to Edgewater Acres; $790,000 to the Landings; $1,730,000 to Mystic Harbor; $200,000 to Newark; and $3,339,010 to Riddle Farm. 1 The acts or omissions of the Commissioners with which OPA takes issue in this letter (and otherwise on this matter) are those of a voting majority of the Commissioners that does not include Commissioner Jimmy Bunting and Commissioner Chip Bertino, both of whom have been forceful and vigilant in opposing the proposed (unlawful) path on this matter, providing what information they can to OPA and the public, and generally advocating appropriately for the interests of ratepayers who would be unfairly burdened if the majority of Commissioners continues down its proposed path. • In County Commissioner meetings held on March 18, 2025 and April 1, 2025, certain Commissioners (again, those other than Commissioners Bertino and Bunting) have expressed support for a proposal (not yet formally adopted), formulated and advanced in connection with the County’s FY25-26 budget process, to recoup a portion of the $9 million deficit/ loan by equally imposing a surcharge on all ratepayers in all service areas, regardless of 1) how much each service area may have contributed (or not contributed) to that deficit/debt; 2) how solvent particular service areas may be (or were prior to the financial mismanagement); and/or 3) what the future needs may be of particular servic areas.2 • Notably, based on available information, the maximum portion of the $9 million debt which may be properly allocable to the Ocean Pines service area, based on its own fiscal and operational needs and expenses, is $116,699.00 (approximately 1% of the total), but the plan of the majority of Commissioners (excluding Messrs. Bunting and Bertino) is to allocate to OP service area ratepayers ten times that amount, through a surcharge to be paid over time. • Such allocation to Ocean Pines would occur without any regard for the historical solvency of the Ocean Pines service area (considered separately as it should be), the historical facilities improvements and upgrades in that service area covered responsibly and fully by Ocean Pines ratepayers, and the small portion of the $9 million debt that is actually u allocable to the OP service area.

OCEAN PINES

May 2025 Ocean Pines PROGRESS 7

Bruce Bright Letter to Worcester County - Page Two • This “plan,” if pursued by a voting majority of the Commissioners, is not only grossly unfair to Ocean Pines ratepayers, but just as troubling, would directly violate clear provisions of State and local law, would be contrary to the County Water and Sewer Plan, and would in our judgment subject the County to costly legal claims not only by OPA and/or its ratepayer members, but also by the ratepayers in other unlawfully and unfairly impacted service areas (e.g., Briddletown, Edgewater Acres, Lighthouse Sound, River Run, and West Ocean City). More specifically: • County Code section PW 5-202 states in pertinent part that “[w]ater and wastewater facilities and services shall be provided and managed on the basis of separate service areas . . . which shall be established as provided by law . . . The revenues and expenditures for each such area shall be accounted for in a separate enterprise fund in accordance with the financial managment rules of the county, and charges and fees shall be levied against the benefited properties in each such area sufficient to pay the operating expenses and debt service associated with each separate area; provided, however, that the County Commissioners may, in their discretion, make grants or loans from the general fund of the county to any such enterprise fund as they may determine to be necessary and appropriate.” 2 In the next fiscal year, under the subject budget proposal, $2,188,000 of the $9 million would be recouped through a surcharge payable in the same amount by all ratepayers throughout the County; in subsequent fiscal years, the balance of the $9 million would be recouped through similar surcharges. • County Code section PW 5-203 provides that “the revenues, expenses, assets, liabilities, and debt of each service area shall be accounted for in separate enterprise funds for each said service area.” • County Code section PW 5-304 provides that “sanitary service areas shall constitute separate taxing districts for the purpose of collection of assessments, charges, and user fees for sanitary services provided therein. The County Commissioners may levy such assessments, charges and fees within individual sanitary service areas as [they] deem necessary and appropriate to provide water and sewer services within the sanitary service area.” • County Code section PW 5-306 provides that, when water and/or sewer services are extended or provided from one service area to another, “in all such cases the recipient [service area] shall fairly compensate the [service area provideing the services] for maintenance and operation cost and for a proportionate share of the value . . . of the sanitary facilities required to provide the service.” • County Code section PW 5-310 requires a separate budget each year for each service area, and for assessments within a service area to be set to cover expenses of that service area and “to retire any indebtedness of the service area.” • Separate water and sewer service areas are contemplated and required under section 11-401, et seq. of the Local Government Article of the Maryland Code. • Section9-648(f) of the Environment Article of the Maryland Code provides that “each [water and sewer] service area . . . is a separate taxing district.” • Resolution No. 04-03, adopted January 20, 2004 by the Worcester County Commissioners, amended the County Water and Sewer Plan (“the W&S Plan”) to make clear and expand on its “Existing Ratepayer Financial Protection Policy,” and to further protect “existing ratepayers [in service areas] from costs unrelated to provision of service to them.” The bottom line here is that the “plan” proposed by a majority of the Commissioners (other than Commissioners Bunting and Bertino) to deal with the $9 million deficit that arises from the County’s mismanagement over time of service area enterprise funds (and to cover part of that deficit through a surcharge to ratepayers in the next fiscal year), is facially unlawful, would violate County Code and State law, and would violate the County’s W&S Plan, as amended. Furthermore, any thought that the County could render their “plan” lawful through self-serving legislative changes to the County Code and/or purported consolidation of the eleven separate service areas into one (County-wide) service area, is unavailing, both practically and legally. And in any event, any such outcomes – even if legally and practically feasible (they are not in our view) – would require a lengthy and public process that would include obtaining MDE approval; and in the unlikely event such outcomes would or could be achieved, they would not retroactively invalidate (or render moot) claims that OPA and its members presently have in this regard. If a majority of the Commissioners proceed with their unlawful and unfair plan, and take further deliberate steps in that direction, OPA and other ratepayers would likely initiate civil litigation, and advance claims against the County and certain Commissioners, including breach of fiduciary duty, equal protection violation under the Fourteenth Amendment of the U.S. Constitution, for declaratory and injunctive relief, for monetary damages and attorney’s fees, for violation of applicable State and County Code provisions, for administrative mandamus, and/or for unlawful taking. On the OPA Board’s behalf, I respectfully ask that you course-correct on this matter, and do so immediately. Very truly yours, Bruce F. Bright

PAID ADVERTISEMENT, Authority: Ocean Pines Association, Inc.

8 Ocean Pines PROGRESS May 2025

COVER STORY

Bette Wildgust and Andy Harper get ready to dig into chocolate eclairs at the Yacht Club. From the size of them, those with smaller appetite could easily share one.

Yacht Club reopening

From Page 5 He also wants to create more events at the golf course, including food truck themed events and sports viewing events. OPA Directors Jeff Heavner and John Latham both attended the Golf

01231456ÿ2489 ÿ

Appreciation Dinner at the Yacht Club on April 30, which was catered by Touch of Italy. “The food was first class,” Heavner said. Latham listed just some of the entries, including chicken parmesan, meatballs, sliders, sausage and peppers and said all of the food was amazing.

“This is going to become a destination,” Heavner predicted. Touch of Italy organized and served about 120 patrons at a hockey game watch party at the Clubhouse Grille last month, which OPA General Manager John Viola raved about at the April 26 Board of Directors meeting.

ÿ ÿ

It was the management company’s first more or less official special event, of which there will be many more to come. Banquets historically have been a large part of the Yacht Club’s revenue; that won’t change under Touch of Italy management. There’s no reason it couldn’t happen at the Clubhouse Grille, too.

May 2025 Ocean Pines PROGRESS 9

10 Ocean Pines PROGRESS May 2025

OCEAN PINES

Incumbents Lakernick, Rakowski to seek reelection to OPA Board of Directors Filing deadline is May 12, extended from ‘official’ date of May 10

By CINDY HOFFMAN Contributing Writer t’s election season in Ocean Pines. Any Ocean Pines Association member in good standing who wants to run for the Board of Directors has until May 12 at the close of business to file as a candidate. The official deadline is May 10, but because that falls on a Saturday, the deadline has been extended to the following Monday, May 12. Homeowners will have the opportunity to vote for candidates for three open seats. Those seats are currently held by Stuart Lakernick, Monica Rakowski and Steve Jacobs.

Stuart Lakernick

Monica Rakowski

Lakernick has taken on leadership positions including vice president and president of the OPA. Rakowski holds the position of OPA treasurer. Both Lakernick and Rakowski have confirmed that they will be

running for reelection. Jacobs said that “as of right now it is my intention to run for re-election, though nothing is set in stone.” He commended the efforts of General Manager John Viola and his team for ensuring a sound and healthy budget while making the necessary investments to maintain and improve Ocean Pines. “There are always things we can improve on and if I do run, I look forward to listening to my neighbors about what needs to be done.” OPA received the Lakernick and Rakowski applications as of April 29. Terms run three years. Applicant names will be released by OPA once

vetted by the Association Secretary. As the OPA treasurer, Rakowki’s focus is and will be “continued financial success with an emphasis on building the reserve accounts.” She is also prioritizing getting the Southside Firehouse renovated. She said her priorities include safety initiatives, infrastructure maintenance and maintaining and improving the amenities. “I will be open and available to our members,” Rakowski said. Currently serving as OPA presidents, Lakernick said that “serving the community has been an honor, and I believe there’s still important work to be done to ensure Ocean Pines continues to thrive both as a residential community and as a destination that balances quality of life, responsible growth, and fiscal responsibility.” Lakernick’s priorities include infrastructure and maintenance, including roads, drainage systems and public spaces that directly impact residents’ daily lives. He is also committed to keeping the Ocean Pines amenities maintained, with policies that reflect how To Page 12

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12 Ocean Pines PROGRESS May 2025

Board approves vendor for this summer’s election

Bruce Bright rebuts claim that the Board changed the rules after bids were submitted By ROTA L. KNOTT Contributing Writer ollowing the withdrawal of ACE Printing and Mailing of Berlin from the vendor selection process, the Ocean Pines Association Board of Directors voted 5-2 with two abstentions during a special meeting on May 2 to approve MK Election Services of Pittsburgh to manage all aspects of the 2025 Board election. Directors Monica Rakowski and Steve Jacobs were the abstainers. The motion to approve MK Election Services was made by Director Rick Farr. Farr’s motion came after the Elections Committee reviewed vendor submissions and provided a recommendation. Prior to ACE’s withdrawal, the committee had recommended the Berlin contractor for this year’s election. But before the Board mandated a formal RFP (request for proposals) earlier this year, the committee had endorsed MK as its preferred choice to manage the 2025 election. Based on the latest recommendation, Farr offered a motion to select MK Election Services as the election vendor for the 2025 election and to authorize the committee, working with legal counsel, to negotiate final terms of a written contract with the vendor. MK’s proposal had contained a provision for a multi-year contract. There was no discussion during the special meeting about that option. Farr’s motion called for the general manager and the vice president to

execute the election vendor contract once finalized. OPA President Stuart Lakernick, who is up for re-election this year, will not be involved in executing the final contract to avoid any conflict of interest. The selection of MK Election Services follows a formal request for proposals process that began in March. The RFP was sent to five national election service providers and one local printing company, inviting them to bid on administering Ocean Pines’ hybrid paper and electronic election. Submissions were due March 21, and the Elections Committee reviewed all received proposals, opting to recommend ACE as its preferred choice in a 3-2 telephone poll, conducted by committee chair Steve Ransdell. However, on April 28, ACE Printing and Mailing owner Thom Gulyas officially withdrew his company’s proposal following a contentious evaluation process and a formal objection submitted to the OPA. In his letter, Gulyas accused the Board of deviating from the published RFP requirements in discussions at the April 26 Board meeting, raising concerns about transparency and procedural fairness. [See article elsewhere on this page for details.] The OPA’s attorney, Bruce Bright, responded to the objections in a detailed letter. Bright emphasized that the Board’s actions, including its request for vendor references, online voting platform demonstrations, and information about proprietary equipment, were all appropriate

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and in alignment with the purpose of the RFP. “All information sought by OPA in relation to your proposal was appropriate information to be requested, obtained, and considered,” he wrote. “OPA’s RFP process is an informal and flexible process which may vary depending on the particular context but is broadly intended to solicit and receive proposals from potential service vendors.” Contrary to Gulyas’ comments, Bright clarified that no confidential information from ACE had been publicly disclosed and reiterated that the RFP did not preclude OPA from requesting additional relevant

OCEAN PINES information. Bright’s letter noted that Ocean Pines, as a private corporation, is not bound by the same formal bid protest procedures that govern public entities. According to Ocean Pines’ bylaws and associated resolutions, the Elections Committee oversees all aspects of the election process, including printing ballots, mailing materials, and supervising vote tabulation. The association is permitted to hire an independent vendor to conduct the election, with final approval of that vendor resting with the Board. MK was the vendor that conducted the OPA’s 2024 Board elections. The vendor has administered elections for numerous homeowners’ associations and condominium boards across the country. This year’s election will again include both paper ballots and electronic voting, making the selection of a vendor with that capability a critical factor in the decision.

ACE Printing & Mailing withdraws bid for election services, blasts Board In scathing letter, Gulyas alleges that the directors materially altered RFP requirements By ROTA L. KNOTT Contributing Writer CE Printing & Mailing of Berlin on April 28 withdrew its bid to provide election services for the Ocean Pines Association’s 2025 Board of Directors election, citing concerns about fairness, procedural irregularities, and breaches of confidentiality throughout the selection process. The decision marked a dramatic

Board election

From Page 10 residents actually use them, especially during peak seasons. He is a firm believer in financial transparency and sustainability. “I will continue advocating for clearer, more accessible financial reporting and strategic long-term planning to ensure dues are used wisely and future assessments are minimized,” Lakenick said. He is committed to getting the referendum complete for the Southside Firehouse and “getting shovels in the ground before the end of the year.”

turn in what had already become a contentious procurement effort, raising broader questions about the integrity of the Board’s and Election Committee’s handling of the vendor selection process. ACE Printing, a Berlin-based business with nearly 30 years of experience supporting Ocean Pines elections, initially submitted a compliant proposal in response to the To Page 14 “We must support our police, fire, and emergency services while also improving community-wide readiness and communication during extreme weather or other emergencies.” He believes in inclusive and open communication between the Board and homeowners. He wants to use both in-person and digital channels to ensure residents feel heard and informed. “Ocean Pines deserves leadership that listens and leads with integrity. I am blessed with a diverse Board that works together to get things

May 2025 Ocean Pines PROGRESS 13

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From Page 12 association’s request for proposals issued on March 1. According to his April 28 letter addressed to the Board and Elections Committee by ACE President Thom Gulyas, the company participated in “full transparency, professionalism, and respect for the procurement process.” However, Gulyas now alleges that the Board, during its April 24 monthly meeting, materially altered

business practices by Steve Ransdell, the Elections Committee chairman, during a live Board meeting. Another concern was that the OPA may have accepted a late bid from a vendor after the RFP deadline, a move Gulyas decried as fundamentally compromising the integrity of a sealed bidding process and disadvantaged compliant bidders. Gulyas was also irked that proposal details were published in the Progress last month before any vendor had been officially selected, breaching the RFP’s confidentiality

the requirements after the RFP deadline, undermining the fairness of the bidding process. Among the issues Gulyas identified are new demands such as providing client references for homeowners association elections, which was not required in the original RFP, and unrequested demonstrations of a functioning online voting portal before contract award. He also cited questions about the ownership of ballot scanning equipment, despite no such stipulation in the RFP, and public airing of ACE’s

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protections. In his letter, Gulyas said that “this breach of confidentiality further erodes trust in the fairness and security of this process. It is deeply troubling that the same Board now demands ACE Printing provide confidential client references, when the association has already demonstrated it cannot guarantee the protection of sensitive information. ACE Printing has a duty to protect the privacy of its clients and will not subject them to unnecessary risk.” ACE Printing is not a newcomer to Ocean Pines. For decades, the company handled paper ballot services for the annual Board election, as well as referendums. When a different vendor faltered during the 2024 election by failing to deliver election materials to residents on time, the association turned to ACE to print materials. Within just 18 hours, ACE printed, mailed, and delivered notification postcards to the entire membership. “This performance, under pressure and without prior notice, demonstrates ACE Printing’s unwavering reliability, speed, and commitment to Ocean Pines,” Gulyas said. Despite this record, during the April 26 meeting, some Board members questioned ACE’s readiness to handle a hybrid election combining online and paper voting. During the meeting, Director Rick Farr expressed concern that ACE had not demonstrated a fully developed online voting portal or provided homeowners association references when asked. “Not being able to share references is a concern for me,” Farr said. “It’s a red flag.” ACE countered that such requests were inappropriate post-deadline additions and, given the Association’s leak of confidential information, exposing their clients to potential risk was unacceptable. “…the far more serious ‘red flag’ remains the Board’s failure to maintain the confidentiality of vendor submissions, directly violating the RFP terms and exposing bidders’ proprietary information to the public,” Gulyas said. Another point of contention is cost. ACE Printing & Mailing submitted a bid of $18,685, substantially lower than the bid submitted by MK Elections of Pittsburgh, the vendor chosen by the Board in a special meeting May 2 to handle the election now that ACE has withdrawn. To Page 16

May 2025 Ocean Pines PROGRESS 15

16 Ocean Pines PROGRESS May 2025 Election services From Page 14 MK’s bid of $31,539 represents a $13,000 difference in election expenses for OPA homeowners. MK Elections was the vendor selected by the OPA to conduct the 2024 Board election. Elections Committee members were divided on which vendor to recommend for 2025, with 3 in favor of ACE and 2 for MK Elections, Ransdell said. The majority voted in favor of ACE based on its history with Ocean Pines, even though MK Elections was praised for a smooth

OCEAN PINES hybrid voting experience in 2024. Ransdell acknowledged that he voted for MK Elections. The vote did not occur in a public committee meeting after discussion. It was actually a telephone poll conducted by Ransdell, with each member contacted separately, the Progress has learned. Though cost is not the sole factor in public procurements, several Board members expressed concerns about justifying such a steep differential, particularly given ACE’s flawless past performance. Director John Latham, the Board liaison to the Elections Committee,

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noted during the meeting that when additional referendum mailing costs were factored in, the gap would narrow but MK would still be significantly more expensive. “We’re not necessarily looking for the lowest cost provider,” Latham said, suggesting that fiduciary responsibility requires the Board to weigh the cost of competing proposals. Some Board members, even those who voted for ACE when a motion to accept the ACE proposal was put forward by Latham, were concerned by what they considered to be the lack of answers to questions about ACE’s hybrid voting capabilities, including ballot scanning methods, subcontractor involvement, and whether a proprietary or third-party online platform would be used. Director Elaine Brady voiced frustration that critical technical questions were left unasked by the committee. She was concerned about making a decision without all of the information. “We’re being asked to make a decision today when some of the questions that should have been asked were not,” she said. Similarly, Director Steve Jacobs

said there seems to be a lack of clarity around some of the details of ACE’s proposal. He said it “does seem to me that there are a number of questions that need further exploration that have been raised by the Board.” Cheryl Jacobs, an Elections Committee member, objected to Farr’s public questioning of Ransdell about his personal vendor preferences, calling it “completely inappropriate” and undermining the committee process. “It is completely inappropriate to put him on the spot,” she said. The Board voted on Latham’s motion to award the contract to ACE during the April 26 meeting, but the motion failed in a 3-3-1 vote. Latham, Jacobs, and Brady were in favor, while Farr, OPA president Stuart Lakernick and Director Jeff Heavener were opposed. Director Monica Rakowski abstained, reportedly telling Lakernick, in comments heard by the audience or those watching remotely, that she didn’t want to be part of the vote. Citing these cumulative breaches and procedural irregularities, To Page 18

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Resolution M-06 doesn’t require Board approval of an election vendor approve the elections contracts, with the president or vice president executing them. Resolution M-06 doesn’t contain language that would preclude Board involvement in selecting the election vendor. During the April 26 Board meeting, Director John Latham, liaison to the Election Committee, offered a motion to select ACE Printing and Mailing of Berlin as the election vendor for the 2025 election. Having received and considered information and a recommendation from the Elections Committee, Latham’s motion was to select ACE Printing and Mailing of Berlin as the election vendor for the 2025 election. ACE was the OPA election vendor for more than 20 years until the relationship ended with the 2013 election. During the subse-

quent two years, the OPA has used a hybrid voting system allowing for online voting and traditional paper ballots. The intent is to continue the hybrid system this year. With the Elections Committee unable to answer questions about ACE’s capacity to handle the hybrid voting model, Latham’s motion failed in a 3-3 vote with one abstention. When Latham was unwilling to table discussion on his motion until the next week to allow the Elections Committee time to gather more information from ACE, OPA President Stuart Lakernick called for a vote on the motion. Latham, and Directors Elaine Brady and Steve Jacobs voted in favor, while Lakernick, and Directors Rick Farr and Jeff Heavner were opposed. Director Monica Rakowski abstained. The Board then tasked Latham

as committee liaison to ask the Elections Committee, which voted 3-2 to recommend ACE, to get more information about their preferred vendor’s qualifications for conducting the hybrid election. The Board planned to meet and vote on a contract by early May in order to keep to the election timeline. ACE did not cooperate. Angered by what he saw on the meeting video, Gulyas withdrew his proposal the following Monday. The Board in a special meeting May 2 approved MK Elections of Pittsburgh as this year’s contractor [see articles elsewhere in this edition for details.] Resolution M-06, Elections and Referendums, establishes procedures for Board elections and referendums, and its Attachment A specifically addresses the hiring of an elections contractor. It states that the association will employ an independent contractor, via a written contract, to provide services during the election and/or referendum processes. To Page 22 To Page 20

He further warned that ACE fully reserves its right to seek injunctive relief, file a formal bid protest, and pursue legal avenues if necessary. “We will instead continue to align ourselves exclusively with organizations who value professional standards and honor their commitments,” he concluded. ACE’s withdrawal left MK Elections as the default vendor likely to be chosen to handle the election.

Several directors proposed delaying the vendor decision, revisiting the RFP process altogether, or committing only to a one-year contract while addressing outstanding concerns more thoroughly. MK’s bid proposal contained a provision for a longer duration contract, and it’s unclear whether the company will settle for a one-year contract. It’s an issue to be addressed as a contract is finalized.

Candidate applications for the 2025 Board election were to be submitted by May 10, which falls on a Saturday, so applications can be filed on May 12 by the close of business. Logistics like ballot printing and online voting setup require substantial lead time, pressing the Board to act swiftly. The Board held a special meeting May 2 and chose MK as this year’s vendor.

Some online chatter suggested that the Board shouldn’t involve itself in vendor selection, but by-laws sections s 8.07 and 9.05 mandate it By ROTA L. KNOTT Contributing Writer hile the Board of Directors has traditionally approved the vendor selected to conduct the Ocean Pines Association’s annual election, based on a recommendation by the Elections Committee, there is no language in Resolution M-06 or its attachments requiring Board contract approval. Some social media commentary has suggested because of that language, the Board has no business approving a vendor, that it should be left up to the committee to decide. That commentary ignored some superseding language in the OPA by-laws that say differently. OPA by-laws require Board approval for contracts over a certain dollar amount. Two sections specifically state that the Board must

Election services

From Page 16 Gulyas withdrew ACE’s bid from the selection process, delivering a scathing critique of the Board’s conduct in his April 28 letter. “We categorically reject any continued participation in a procurement exercise that so plainly violates fundamental standards of fairness, transparency, and professional ethics,” Gulyas wrote.

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May 2025 Ocean Pines PROGRESS 19

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20 Ocean Pines PROGRESS May 2025 Contract authority From Page 18 The resolution states that the written contract “shall be approved by the Elections Committee and signed by the Association General Manager or Association Board President.” There is no mention of Board involvement in the process, including a vote to approve the committee’s preferred vendor. It further specifies that the “com-

mittee shall be responsible for supervising the performance of these services in a manner that supports the election or referendum process.” If there are delays or events that may have an adverse effect on the election process, the resolution requires that the Board liaison to be promptly notified. Latham’s motion was to select ACE printing and mailing as the vendor for this summer’s Board election. His motion also would have au-

thorized the Elections Committee, working with legal counsel, to negotiate final terms of a written contract with ACE, and the General Manager John Viola or OPA Vice President Rick Farr to execute the election contract once finalized. OPA President Stuart Lakernick is up for re-election and therefore would not be able to execute the election vendor contract on behalf of the OPA. Under Resolution C-08, the Elections Committee administers the

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voting process for the election of members to the Board. Section 5.03 of the OPA by-laws states that the Elections Committee supervises the printing of ballots, the mailing of election materials to members eligible to vote, and the procedures for safeguarding and tabulating returned ballots. While Resolution M-06 says the association may employ an independent contractor to serve as election vendor, with the contract to be approved as to scope and services and the vendor to be supervised by the Elections Committee. Sections 8.07 and 9.05 of the bylaws state that the hiring of the election vendor must be approved by the Board. They also specify the contract with the vendor must be executed by the OPA president or vice president and attested to by the OPA secretary. It would appear that there is an inconsistency in the governing documents. By-laws take precedence over Board resolutions in the hierarchy of documents, however. “All purchases and contracts for services or supplies for the Association shall, to the fullest extent practicable, be made by open competitive procedures,” the by-laws further state. “Any purchase or contract in excess of the established limits or guidelines must have prior approval by the Board of Directors.” Based on those requirements, the Elections Committee developed and circulated a request for proposals for the selection of an election vendor for the 2025 election cycle. This was the result of a Board vote, after the committee initially recommended the rehiring of MK Elections without benefit of competing bids. The request for proposals was circulated in March, and it was forwarded to five national election service providers and one local printing company, providing them the opportunity to officially bid on the OPA’s hybrid election. One other vendor also submitted a bid but didn’t meet the qualifications. As experts in OPA governing documents have pointed out over the years, there isn’t perfect consistency between provisions in all the documents. Efforts have been made to bring them into conformity, but there always seems to a new inconsistency uncovered or an old one rediscovered.

May 2025 Ocean Pines PROGRESS 21

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Public Relations and Marketing director position split in two roles OPA searching for public relations coordinator

By ROTA L. KNOTT Contributing Writer he Ocean Pines Association has made organizational changes in its marketing and public relations department following the unexpected termination last month of Josh Davis, who served as the association’s marketing and public relations director for the past five years. In a structural overhaul revealed in a new organization chart posted to the OPA’s Website, the previously combined marketing and public relations director function will now be divided into two distinct roles: a senior marketing coordinator and a senior public relations coordinator. The senior marketing coordinator position is currently filled by Nancy MacCubbin. The new senior public relations coordinator position remains open,

The revised organization chart for public relations and marketing.

but the OPA is adveritsing for applications. The position carries a starting starting annual salary of $45,000, roughly half of what Davis was making as the director. Both positions will report to Linda Martin, who was recently promoted to senior director of administration. Martin’s expanded leadership role now encompasses Recreation and

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Parks, Public Relations and Marketing, Compliance, Permits and Inspections, and Strategic Planning. Martin previously served as director of business administration. To fill the senior public relations coordinator position, the OPA is seeking a communications professional with a bachelor’s degree in communications, public relations, or journalism or equivalent experience, and at least two years of related work experience. The new position will be responsible for a wide range of tasks, including acting as a liaison with the media, producing press releases and publications, managing social media and Website content, overseeing the PineCast podcast, and coordinating events and public meetings. The position seems to include all of the duties performed by Davis during his five-year tenure with the OPA, albeit at annual salary in excess of $80,000. It would appear that General Manager John Viola, who terminated Davis as an at-will employee, is seeking to fill the role at a consid-

OCEAN PINES erable cost savings to the OPA. Qualifications include a bachelor’s degree in communications, public relations or journalism. The changes come on the heels of Davis’s abrupt termination on April 1, delivered in person by OPA General Manager John Viola. The termination letter provided to Davis offered no reason for the decision, stating only that his employment was being ended “at will,” effective immediately. Davis, who began his tenure in April 2019, expressed shock and disappointment at the sudden move. In a public statement shared with local media, he highlighted his accomplishments, noting that he had increased departmental revenues to record levels while reducing costs. Davis also praised his team, especially MacCubbin, calling her “the anchor” of the department whose work allowed him to pursue special projects. In addition to restructuring the Marketing and Public Relations Department, the OPA also announced several key staff promotions set to take effect May 1. Justin Hartshorne has been promoted to senior director of golf maintenance. Hartshorne, who previously served as director of golf maintenance, will continue overseeing course upkeep while taking on increased responsibility for a major capital project involving irrigation system upgrades. OPA also announced the promotion of Ruth Ann Meyer to Deputy Director. Meyer, who currently oversees memberships and assessments, will now also be responsible for the Racquet Sports Department.

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Former OPA director and acting GM Brett Hill found guilty of failing to pay $1 million in payroll taxes Facing prison time for each of 16 counts

By TOM STAUSS Publisher federal jury in Baltimore convicted Brett Hill, a former Ocean Pines Association director and acting general manager, in mid-April of 16 counts of failing to collect and pay about $1 million in payroll taxes. He will be sentenced at a later time. He’s facing up to five years in prison for each count of failing to pay these taxes to the United States government. There’s been no reports of any kind that he’s attempted to pay the taxes as a way of possibly avoiding prison time. Hill is married with three children and has an online presence that lists him as a consultant. Prior to that he was the chief executive officer of companies that installed high speed Internet, but those companies have not been in business for several years. Hill was elected to the OPA Board in August of 2016 and was subsequently appointed acting general manager later in the month, replacing former general manager Bob Thompson. Hill served until Sept. 11 of 2017, when he resigned after the Board voted to hire John Bailey as general manager and Hill’s replacement. Hill’s tenure as acting general was controversial, but he had the strong support of the Board during that year, with Director Slobodan Trendic the notable exception. During the year he served as acting GM, the Yacht Club generated a large operating deficit and even the venerable cash cow the Ocean Pines Beach Club lost money. The OPA’s operating fund deficit reached $1.6 million during Hill’s tenure, costing the OPA memberships higher lot assessments in subsequent years in the effort to recoup the losses. Then OPA President Doug Parks confirmed during the September 2018 Board meeting that

he had received a letter of resignation from Hill and that a second association official, then Finance Director John Viola, also had resigned his position. Viola, the current OPA general manager, subsequently was appointed to the Budget and Finance Advisory Committee where he served as chairman. Before Bailey’s hiring, Viola Brett Hill had been offered the GM position but decided against it. “[Hill] sent a very professional letter to all the board citing his priorities with his family and his business, and that was it,” Parks said at the time. “There was no blame. There was no finger-pointing … he considered his options and decided his time was better spent refocused.” Hill attempted a comeback in 2018 when he submitted an application to run for the Board, only to have his candidacy rejected by then Director and OPA Secretary Collette Horn on grounds that the annual lot assessment owed by Hill was unpaid by the candidate filing deadline in midMay. That in turn resulted in Hill filing suit against the OPA and Horn in June of 2018. He contended that other candidates also had failed to pay assessments by the filing deadline but had been given opportunities to pay without being disqualified as he had been. Hill voluntarily dismissed the case in October of that year, as it was moot because a Board election had occurred over the summer of 2018 with Hill not on the ballot. According to a Department of Justice press release, Hill, of Parkton, Md., in Baltimore County and Berlin, was the chief executive officer of two telecommunications companies.

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Hill was responsible for withholding federal income, Social Security, and Medicare taxes from his employees’ wages and paying those funds over to the government. He was also responsible for filing tax returns each quarter and for paying to the government the companies’ share of Social Security and Medicare taxes, the press release said. From the second quarter of 2016 through fourth quarter of 2018, Hill withheld taxes from his employees’ wages at one or both of his companies but did not file tax returns or pay those taxes over to the government. Hill did not pay over his companies’ share either. Instead of paying the taxes he withheld from his employees’ paychecks, Hill paid himself a salary and paid other expenses, according to the press release. In total, Hill caused a tax loss to the United States of over $1 million. Hill will be sentenced at a later date. He faces a maximum penalty of five years in prison for each count of failing to collect and pay over taxes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors, the press release said. In late October of 2018, Hill and the Ocean Pines Association reached an agreement to dismiss the suit that had been filed in June. Horn had determined that Hill was not eligible to run because he had not paid his property assessments by the May 15 candidate filing deadline. During the Board’s October, 2018, regular monthly meeting, Horn announced that the Board had voted by email “to accept the terms of the dismissal of the lawsuit by Mr. Hill.” “The motion itself was to accept the terms of the dismissal of the lawsuit by Mr. Hill. That motion was submitted by Director [Steve] Tuttle, seconded by Director [Frank] Daly, and all of the directors voted in favor of that,” she said. Circuit Court Judge Brian D. Shockley had signed an order to dismiss Ocean Pines from the case on Sept. 18, based on an Aug. 8 motion by association attorney Thomas J. Whiteford, who argued the “Board of Directors of Ocean Pines Association” named in the lawsuit was “not a legal entity having the capacity to be sued.”

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Former OPA director, president Tom Herrick dies Led the association during tumultuous 2016-17 Board term

By TOM STAUSS Publisher former Ocean Pines Association president and member of the Board of Directors, Tom Herrick, has died. He served three years on the Board from August of 2015 through August of 2018 and

president of the OPA in the 2016-17 term, a tumultuous year dominated by Board infighting. Herrick moved away from Ocean Pines some time ago to be closer to family in New York state. Herrick’s passing was announced in a press release by New York State

Police Superintendent Steven G. James last month, in which he said it was a line of duty death. Herrick was a retired New York state police investigator. James said that Herrick passed away from an illness resulting from his assignment in and around the

World Trade Center site following the terrorist attacks on September 11, 2001. “His death is a solemn reminder of the lasting toll borne by those who responded Tom Herrick selflessly in the aftermath of that tragic day,” James said. The press release said that Herrick had provided 26 years of honorable service to the New York State Police, retiring on August 19, 2009. He was last assigned to the Troop L Felony Warrant Squad, where he served with distinction. He subsequently moved to Ocean Pines where he became active in OPA governance. The press release said Herrick is survived by his wife, Margaret “Meg” Herrick, and their three children, Thomas, Ryan, and Matthew. Herrick resigned as president of the OPA in July of 2017, citing frustration with what he called Board dysfunction and what he said he regarded as the “totally inappropriate” actions of two of his colleagues, directors Slobodan Trendic and to a lesser extent Cheryl Jacobs. Trendic resigned sometime later to lead a successful petition effort to rein in Board capital spending authority. He’s no longer active in OPA affairs. Jacobs is a member of the Ocean Pines Elections Committee. In an interview with the Progress on July 31 of 2017, Herrick said his resignation was intended to send a message to the OPA membership. Herrick said that Trendic had been “relentless” in his efforts to undermine the administration of Acting General Manager Brett Hill and also was involved in contacts with OPA employees that Herrick said have encouraged certain employees to file human resources complaints against Hill, in Herrick’s view putting the OPA in some legal jeopardy. Herrick also said that Trendic bombarded him with a constant flow of e-mails. He said that Trendic asked for countless legal opinions from OPA attorney Jeremy Tucker about Board or Hill actions that Trendic regarded as improper or simply disagreed with. To Page 28

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From Page 26 “It went way beyond what could be expected as normal for a board member,” Herrick said, adding that while he could and did ignore some of them, other Trendic inquiries involved matters that Herrick said deserved at least some sort of response. “I hate to think what all this has cost the OPA in legal expense,” Herrick said, adding that he has spent

Trendic. “It just got to be too much,” he said, adding that he’s felt a “tremendous relief” no longer having to deal with the emails. While he added that he could have endured a few more weeks as president, he wanted to send the message that frustration with Trendic had reached a breaking point. Over time, Trendic’s contemporaneous negative assessment of Hill’s

term as acting general manager has become the prevailing sentiment. Given his more recent legal difficulties, it’s hard to find those who fondly remember Hill’s involvement in OPA affairs. Herrick, who contrary to some media reporting did not resign from the Board, was officially replaced as president by then Vice President Dave Stevens at a regular monthly meeting of the board July 27. Stevens stepped in unofficially when the OPA announced Herrick’s res-

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ignation a day earlier. OPA bylaws require a Board vote to replace a president when a vacancy occurs. Stevens was elected to fill the remaining weeks of Herrick’s term in a 6-0 vote, with director Doug Parks replacing Stevens as president of the OPA in August after that year’s Board election, in which Parks was elected to a three-year term. Stevens died several years ago, while Parks remains active in OPA affairs, currently serving as chairman of the Budget and Finance Advisory Committee. In an exit interview following his retirement, Herrick said he was “very relieved” his term was over and not in the least sorry he decided not to seek re-election that summer. “My high point on the board was definitely spent during the beginning of my term serving as president for the Association,” his second year on the board, Herrick said. “Although I accepted the position reluctantly, I did enjoy serving in this capacity during the period in which the board members were very effective in addressing many of our pressing issues.” Herrick said looking back he’s “proud to say, we as a Board, working cohesively with the [acting general manager], managed to renovate the Beach Club bathrooms, installed a new playground in Manklin Meadows, completely renovated Huntington Park, redecorated the inside and outside of the Yacht Club facility, including the removal of the terrible odor emanating from the bathrooms, provided eight dedicated outdoor pickleball courts and two new platform tennis courts, [and] made much needed and neglected improvements to the Country Club,” which has since been replaced. He cited mold remediation, drainage issues, repairs to the leaky roof, complete renovation to the downstairs bathrooms, refurbishing of locker rooms, and Tern Grille improvements. He also mentioned a change in golf course maintenance personnel that he said had greatly improved the playing conditions on the course. “So many positive changes to our community, in such a short time. Many long overdue. In addition, during this time, many discrepancies in the manner our association handled our finances and cash procedures were discovered, and were reported, which have resulted in ongoing criminal investigations and subsequently the onset of a forensic To Page 30

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From Page 28 audit being approved and conductWhen should you start receiving Social Security? Maturity Date: 07/15/2036 (00/00/00) ed.” Callable Date: (00/00/00 or your N/A) Think carefully about 07/15/2028 when to start receiving benefits. Herrick said one early low point was the failure of the board to pass 100 CallYouPrice: (000)your benefits by 39%. could be reducing a motion in January 2016 to establish an advisory body to explore outAaa / AAA Rating: (XXX/XXX) I am here to help make that decision easier for you. sourcing community management Other: Please contact(Obligor) me at 410-208-1704 for a services. It failed 4-3. one-on-one complimentary, no obligation * Another was “the total dysfunc(0.00%) TAX-FREE 3.25 TAX-FREE* ase contact me at 410-208-1704 for a% oneoron one complimentary, consultation attend our seminar.no obligation, consultations or tion of the board during the secattend our seminar. Call for times, and location. Call for times, date anddates location Prince Georges Md (Name of MuniCnty Bond) ond half of my term as president,” Carrie Dupuie, AAMS he said. “Ultimately [this] led to a 98.500 Price: Dupuie, (00.00) Carrie AAMS® My picture Coupon: (00/00/00) 3.25 (Financial Advisor Name) Board decision which deprived the Financial Advisor Financial Advisor here Maturity Date: 07/15/2036 (00/00/00) acting general manager of [the abili(Approved Title) 215 North Main Street Callable Date: 07/15/2028 (00/00/00 or N/A) 215 North Main Street 100 ty to fulfill] his duties ... without priCall Price: (000) Berlin, MD 21811 Berlin, Aaa /MD AAA 21811 Rating: (XXX/XXX) or approval from the board.” (Address) Other:410-208-1704 (Obligor) 410-208-1704 According to Herrick, Brett Hill (City, ST 00000) Carrie.Dupuie@RaymondJames.com twice asked the board to bring in (000-000-0000) I (Toll-Free: Carrie Dupuie, AAMS 800-000-0000) Raymond James(Financial Financial Services Inc.,Name) Member FINRA/SIPC Advisor professional consultants for food (Approved Title) James Financial Services Advisors, Inc. Investments advisory services offered Raymond Fax:through (000-000-0000) and beverage operations and fi(Address) (E-mail (City, STAddress) 00000) nance, but was denied by a Board (000-000-0000) I (Toll-Free: 800-000-0000) (Website) Fax: (000-000-0000) majority. (E-mail Address) (Website) “Yet when [those areas failed], several board members and a handpicked director who wasn’t involved Subject 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 made public allegations Hill was at 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 fault. Sad,” he said. profits 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 Herrick contrasted his produc06/07/2018 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 tive firstexempt year with a lackluster final payment of principal and interest. No representation is made to any insurer’s ability to meet its availability and price change. Minimum purchases may apply. The yield is the lesser of yield to maturity or yield to call. Interest is generally financial commitments. Ratings and insurance do not remove risk since they do not guarantee al taxation and may alsothebemarket free ofvalue stateof and local taxes for investors residing in the state and/or locality where the bonds were issued. However,major projects have been the bond. year: “No y be subject to federal alternative minimum tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. 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 andcompleted may be subject to review,... a glaring difference.” (c) 2015 Raymond James Financial Services, Inc., member FINRA/SIPC 15-MFI-0113 ICD BS 8/15 uspension, reduction or withdrawal at any time by the assigning Rating Agency. Insurance pertains only to the timely payment of principal and interHe hoped future Boards would presentation is made as to any insurer’s ability to meet its financial commitments. Ratings and insurance do not remove market risk since they do Financial Advisor

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Former ARC member says leaf removal is in homeowners’ best interest Counters criticism at recent Board meetings By ROTA L. KNOTT Contributing Writer n response to growing community concerns about enforcement of leaf violations, the Compliance, Permits and Inspections Department is continuing to focus on enforcement of leaf removal from ditches and yards in the community. Leaf violations now outnumber every other category in the monthly breakdown of pending violations detailed in the general manager’s report. One former member of the Architectural Review Committee during the April 26 Board of Directors meeting tried to bring clarity to the rules surrounding property maintenance, with a focus on fire prevention and public safety. Kevin Middleton, who helped develop updated ARC guidelines To Page 34

issue a request for proposals for professional financial services, a step he championed but the Board failed to pursue. “Failing to issue an RFP ... would be moving forward with a tunnel vision-like attitude, allowing other Board members to force their elitist

thought process upon them, which should never be tolerated,” he said. He also expressed concern about delayed Country Club renovations, capital spending without approved plans, and the dangers of short-term governance instability due to annual elections.

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GM REPORT Viola concedes racquet sport building is no renovation By ROTA L. KNOTT Contributing Writer hat began as a simple restroom and pro shop improvement project at the Racquet Sports Center in South Ocean Pines has evolved into a full-scale rebuild of the pro shop building after surprising discoveries during initial demolition work. “Once we started the demolition it became a different project,” General Manager John Viola said during the April 26 Board of Directors meeting Originally the project aimed to expand and update restroom facilities to better meet the needs of Racquet Sports members and expand the pro shop. However, once demolition started, contractors uncovered unexpected issues with the building’s construction, including the fact that it had been built on a sidewalk, prompting a significant shift in plans. As a result, the project has essentially turned into the construction of an entirely new building, Viola said during his April 26 GM Report. Many of the original windows could not be reused, adding further to the scope of the work. The renovations come at an estimated cost of $250,000 to $275,000, an increase over the $190,000 estimate provided by Viola during the February Board meeting, when Viola increased his estimate $50,000 from the $140,000 renovation cost originally approved in December of 2023. Despite the larger scope, Viola said the work remains on schedule for completion before Memorial Day. He said because the old structure had been built on the top of a sidewalk, new footings and a concrete slab had to be installed to support the structure. He also said the cost is increasing because existing back walls and windows that the OPA intended to incorporate into the project will not be able to be used. Viola said new windows are needed because the existing ones are outdated and do not meet code requirements. Before the Board approved a renovation of the building in December

Leaf removal From Page 30 that were adopted last year, delivered a detailed presentation aimed at explaining updates to the ARC Guideline 400.2D, Declaration of Restrictions 8.L., and an associated Resolution M-04. Middleton emphasized that the intent behind stricter enforcement was to align with the community’s overarching goal of protecting public health, safety, and welfare, as outlined in ARC’s general provisions. He was given a slot on the meeting agenda, as opposed to having his comments delivered during the Public Comments segment of the meeting, in which there is a five-minute time limit. “The flavor of the month last month was concerns regarding leaf violations,” Middleton noted. “Our goal today is to show that everything we’re doing is rooted in re-

search, safety, and the best interests of homeowners.” During the Public Comments segment of the March Board meeting, former director Amy Peck questioned the need for leaf maintenance in yards and why leaves are listed as inappropriate ground cover. She said the primary objective of the Architectural Review Committee guidelines is to preserve the natural beauty of Ocean Pines and that includes leaves. Peck said back in January 2024 there was a first reading of changes to the ARC guidelines but no red line copy in the Board meeting packet. She alleged that there was no discussion of leaf maintenance at that meeting or at the April 2024 meeting when the revised guidelines were approved. Peck argued that the OPA is now telling property owners that if the ground isn’t visible then they have

of 2013, members of Racquet Sports committees had pressed Viola and the Board to replace the building rather than renovate it, but they met resistance. Their arguments failed to persuade Viola and the Board at the time, but in the end the committees were proven right. The Whayland Company submitted the winning proposal for the project that will also include office space for the racquet sports director and additional interior storage. Viola at the time said he anticipated the project getting under construction in January of 2024 and being completed by May 2024. That didn’t happen, as Viola decided he didn’t want to begin a renovation during the busiest times of the year at the racquet sports complex. Work began earlier this year. In earlier iterations of the project, there was the possibility of adding a second floor to the building, but that idea was discarded because of cost considerations.

Mailbox replacement

Phase I of the Ocean Pines Association’s mailbox repair and replacement project has been completed, with Phase II set to begin in May. Public Works has placed the order for new mailboxes and pedestals, focusing next on Wood Duck and Cannon Drives. The total cost for this phase is significant: $72,519 for Wood Duck Drive and $25,933 for Cannon Drive, including the mailboxes, pedestals, and necessary paving work. Many of the existing mailboxes are heavily rusted, with at least one reported swaying in the wind, Linda Martin, senior director of business administration said during the April 24 Board meeting. General Manager John Viola acknowledged the financial impact of the project, noting, “The numbers are big.” He added that the OPA doesn’t have a reserve for mailboxes. “When you start to get numbers like that, it does affect the financials.” Viola said that for now, the costs will be covered through operations, but the OPA may need to consider establishing a reserve fund for mailu

an accumulation of leaves that must be removed. She asked from where this standard came. Middleton said the ARC was responsible for the last set of revisions to these guidelines. Older restrictions, originally written in the 1960s, were vague about leaf management. M-04 updated these with contemporary language, clearly stating that leaves are not considered acceptable ground cover. Pine needles, on the other hand, are considered acceptable. Middleton explained that accumulated leaves and yard debris pose serious fire risks, especially as Maryland faces extreme drought conditions. Drawing on data from the Maryland Forest Service, he highlighted that properties the size of typical Ocean Pines lots, about 0.26 acres or smaller, rank as the second-highest risk category for wildfires, primarily because of their close proximity and

the abundance of natural fuels. Wildfires are no longer just a Western states issue,” Middleton said. Maryland is increasingly seeing wildfire conditions, and the spring and fall are two highest risk seasons, he said. “They’re looking out for your best interest,” he said of CPI. The move to enforce leaf removal isn’t just about aesthetics or drainage concerns, Middleton said. “It’s about protecting your home, your family, and your investment,” acknowledging that maintaining property standards can be tough and sometimes unpopular. “I know the criticisms are painful,” he said. “But from the ARC perspective, we had a mission and we feel we’ve accomplished it.” Echoing the sentiment, OPA President Stuart Lakernick pointed out that this is more than just a drainage issue. Fire hazard reduction is critical, he said.

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May 2025 Ocean Pines PROGRESS 35

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box replacements in the future.

Dashboard data

As of March 1, there were 408 outstanding property violations outstanding with the Compliance, Permits, and Inspections office. Another 435 violations were initiated in during the month, including 330 maintenance, trash or debris; 29 no permit, 6 signs, and 70 miscellaneous, such as easements, vehicle parking, permit expiration, trailers, and junk vehicles. CPI closed out 316 violations during the month, but there were still 527 remaining as of month end, including 290 maintenance, trash and debris, 78 no permit, 8 signs, and 151 miscellaneous. Public Works had 52 open work orders as of March 1 and received 118 new work orders during the month, including 85 bulkheads, 61 drainage, 15 grounds and landscaping, 6 roads, 3 signs, and 2 general maintenance. It had 120 open at the end of the month, with 65 of those open work orders for drainage issues. Martin said the number of drainage work orders has increased as people come to the community to open their properties for the season. She said many of the calls are related to blockages in the culverts under driveways. The OPA hires a contractor to address those situations where the property owner can’t clear out the pipe. The OPA had 80 customer service contacts in March, including 28 for amenities, 14 for CPI, 5 for drainage, 22 in general questions or comments, and 11 for public works.

Work is officially under way at the Ocean Pines Association’s Community Center to replace the water-damaged gymnasium floor, with installation of a new surface set to begin next month. Public Works crews started removing the existing floor on April 21 to prepare for the installation of a matted poured concrete floor by Dynamic Sports Construction. The $62,300 project is scheduled to begin on May 5 and be completed by June 2. During the April 26 Board meeting, Donahue expressed excitement about the new floor, noting that it should put an end to issues the facility has faced in the past. “We’re real excited about getting that floor in and not having any more of these types of issues,” she said. The decision to replace the gym floor follows significant water damage caused by a leak earlier this year. In February, a faulty O-ring on a pipe supplying water to the radiant floor heating system leaked, allowing water to pool under the hardwood floor. The damage went undetected for several days, causing extensive deterioration to the existing surface. Last month, the Board voted unanimously to approve staff’s recommendation to install the DynaForce System matted poured concrete floor. Donahue explained that staff considered multiple repair and replacement options before selecting this flooring, which is designed to be shock-absorbent and highly resistant to future water damage.

Landscaping updates

Hockey watch party

The Ocean Pines Association’s first-ever Hockey Watch Party hosted at the Clubhouse Bar and Grille, operated by Touch of Italy, was a big success, drawing between 110 and 115 excited fans, according to Viola. Viola said the event had a fantastic turnout, with everyone enjoying a night filled with great food, drinks, and plenty of hockey spirit. The event featured special food and drink offers, 50-50 raffles and trivia. Debbie Donahue, director of recreation and parks, praised the event’s success, noting, “We had a really good turnout for our first one. Touch of Italy did a great job.” She said she hopes to hold more such events in the future.

Ocean Pines is bursting into bloom this spring as the association’s landscaping crew carries out its annual mulching and beautification efforts across the community. Crews have been busy freshening up landscaped areas, including the playgrounds. Residents can already enjoy the vibrant sight of spring flowu

Shades of Spring

Bocce ball courts

The Ocean Pines Association’s bocce ball court is etting a major upgrade. According to Debbie Donahue, director of Recreation and Parks, demolition of the existing court has been completed to make way for two brand-new bocce ball courts installed end to end at the Yacht Club, near the swimming pool. Public Works crews prepared the site starting April 18, setting the stage for the next phase. Installation of the new courts, which will be handled by Southwest Greens Delaware Valley, is scheduled to begin May 12. The project, costing a total of $50,692, is on track to be finished before Memorial Day. Interest in bocce ball has been growing steadily, with 88 players already signed up for league play along with a full roster of substitutes. The OPA expects more than 100 members to participate once the courts are complete, Viola said.

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Road paving work began in April on several Ocean Pines streets, according to Martin, who shared presentation duties with Viola during his April 26 GM report. Residents will soon see improvements to Canal Road, Commodore Court, Dinghy Court, Fairhaven Court, Juneway Lane, Portside Court, Riverside Drive, and Weeping Willow Court. Asphalt Maintenance, the contractor handling the work, is completing the projects at a total approved cost of chnot does Cool in*S o apply to insurances Expires 5/30/25 ook $170,173.50. The Board gave its approval for the project during its meeting on Sept. 28, 2024. In addition to these neighborhood roads, paving work also beganSalisbury this Berlin ptical ptical week on Manklin Creek and Cathell Roads. That work is being completed by Allan Myers, Worcester County’s designated contractor. 410-546-1369 410-641-2020

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36 Ocean Pines PROGRESS May 2025

OCEAN PINES

Federal, state funding cuts impact Ocean Pines Coastal Bays Program facing Jenkins Point, South Gate pond cut-backs

By CINDY HOFFMAN Contributing Writer he Ocean Pines Association has partnered with the Maryland Coastal Bays Program (MCBP) on two big projects in the community: the restoration of Jenkins Point and the South Gate Pond. These projects rely on state and federal funding, which could be in jeopardy with the budget issues the state is dealing with and the widespread cuts by the Trump administration. Jenkins Point sits south of the Route 90 Bridge, in the Isle of Wight Bay. It used to be an unbroken peninsula but has eroded into a series of islands. Ocean Pines owns the land and is working with the Maryland Coastal Bays Program to restore the peninsula. “This is a good example of a nature-based resiliency project,” Kevin Smith, the executive director of the Maryland Coastal Bays Program said. Rebuilding the peninsula and restoring marches will provide resilience from storm action and natural protection for infrastructure, including the Yacht Club, condos and marinas, that Smith estimates could be worth $1 billion. It will also provide habitat for terrapins, horseshoe crabs, shore birds such as oyster catchers, dunlins and black skimmers, a species that is endangered in Maryland. The financial turmoil on the state and federal level could affect this project, according to Smith. The designs are complete, thanks to funding from the state and Ocean Pines. The next step is the permitting process, which is being done with state money.

The South Gate pond remains a tranquil setting for Ocean Pines resident wildfowl.

MCBP is applying for funding from the National Fish and Wildlife Foundation, a private conservation foundation created by Congress that receives its funding from fines for oil spills and other settlement actions. This will be the

GM report

From Page 35 ers and cherry trees, now in full bloom throughout the community, Viola said during his April 26 GM report. In addition to the traditional spring plantings, Ocean Pines is also adding more palm trees at the clubs. The sunflower garden at the North Gate is also being replanted.

Clubhouse improvements

The Ocean Pines Golf Clubhouse is undergoing a series of improvements designed to enhance the customer experience and provide more amenities for golfers. Viola said one of the upgrades is the outdoor paved area, which has been updated to accommodate an expanded shade canopy, as part of Touch of Italy’s takeover of the dining amenities. Additionally, the clubhouse will be getting two new televisions. In response to the demand for quicker and more convenient service, a new service bar area has been installed, offering grab-and-go refreshments. The irrigation system is also getting a major upgrade, with work continuing as the project moves toward completion. The new system will be hooked up to the pump station by mid-May, Viola said. Other improvements include replacement of netting at the driving range by the Public Works team, and enhancement of the pond patio area.

second application for this project, but Smith said that once the permitting process is further down the road, chances are better for this funding. The entire project will cost in a range of $8 u

Maintenance projects

As summer approaches, the OPA is completing essential maintenance to get facilities ready for the season. All pools are being prepared to ensure they’re ready for summer use. Public Works is replacing worn boards on the Beach Club deck. Once finished, the contractor will paint the outside deck. New concrete will be installed at the Mumfords Pool pad and around the Swim and Racquet Club walkway. Parking lot striping will be redone at the Yacht Club, Swim and Racquet Club, and the Administration Building for better organization.

Jet skis and kayak racks

New jet ski slips and additional kayak racks have been installed in the community. Viola announced the addition of six floating slips at the Swim and Racquet Club, which were installed the third weeks of April. The slips, previously unusable for boats, have been reconfigured to accommodate jet skis. The total cost for these new slips amounted to $20,000. Viola shared that there may still be one or two slips available for those interested, encouraging residents to get their names in quickly if they wish to secure one. “If we do have a waiting list, we’ll see if we can increase the number of slips next year,” he said. Martin said new kayak racks will be installed at both Pintail Park and the Swim and Racquet Club. Each location will see six additional spaces added, with a total cost of $3,627 for the racks and the necessary concrete installation.

OCEAN PINES million to $12 million. MCBP is also working with the OPA on addressing the shore erosion issues at the South Gate Pond. It received $150,000 from the Infrastructure Investment and Jobs Act, which was passed during the Biden Administration in 2021. Ocean Pines hired VISTA Engineering to work on the design, but had to pause spending on the project two months ago when federal funding was frozen, according to Smith. “We are now back to work on the design and moving toward the permitting process. “All the money is in place for design and permitting. Any remaining funds would not likely be enough to get the project implemented,” Smith said. He expects that there should be about one third of the funding left over for implementation. The project will address the shore erosion issues along the pond and provide a living shoreline with consideration for fishing access for local anglers. The Maryland Coastal Bays Program is one of 28 national estuary programs across the country that receives EPA funding in order to work toward the restoration and protection of “estuaries of national significance.” It receives base funding of $850,000 a year from EPA. This keeps the lights on and pays the employees, according to Smith. The organization also receives $900,000 from the Infrastructure Investment and Jobs Act. This money is directed towards projects such as initiatives, research grants, and mini grants into the local community. “There was a period of a month or two when these funds were frozen,” Smith said. This has been rectified. “The real question is future funding.” Most recent mini-grants are funding tree planting and outreach programs in Berlin and Ocean City; a pollinator garden at Worcester Tech, Assateague Coastal Trust’s Coastal Kids program, Go Green OC, the Eastern Shore Ballet on the Beach and an aquarium program at local libraries through Stephen Decatur High School. Smith expects one more year of mini-grants from the Infrastructure Act budget, but said the future of the funding is unknown at this time. Organizations that are part of the National Estuary Program met in DC recently, but received no answers on future funding. Smith is

May 2025 Ocean Pines PROGRESS 37

The South Gate pond is a favorite spot for Souhside residents needing a respite from everyday challenges.

concerned MCBP could be zeroed out of the budget, which happened during the first Trump administration. Smith noted there is a lot of support from Congress and the Senate for the National Estuary Program. But Congress is not as empowered as they used to be, said Smith and the asks will be big next year, including health care and food programs for kids, he said. “Environmental issues are very important but people prioritize health care and food, so we don’t come out at the top of the list.” During the last Trump Administration, the National Estuary Program was zeroed out, but funding for the program was put back by Congress. “That may have to happen again if we are zeroed out for Federal Fiscal year 2026,” Smith said. “We will be working with our federal representatives to hopefully prevent that from happening.” Smith does not see as many issues on the state level as he expected. He came out of the Maryland legislative session with a slightly optimistic view of the budget world. But he said big changes in federal funding will have a trickle down effect on the state. “I am not sure the state has felt u

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OCEAN PINES

Officer with extensive investigative experience joins OPPD Vicki Martin sworn in during April 26 OPA Board meeting

he Ocean Pines Police Department on Saturday, April 26, welcomed its newest officer, Vicki Martin, during a swearing-in ceremony at the Ocean Pines Clubhouse. Ocean Pines Association President Stuart Lakernick conducted the ceremony during the March regular Board meeting. “This is one of the great things that we’ve instituted here in Ocean Pines,” Lakernick said. “We the Board are delighted, and I have the honor of swearing in Officer Vicki Martin.” Ocean Pines Police Chief Tim Robinson said Martin comes to Ocean Pines following a distinguished 27-year career with the Ocean City Police Department, which was followed by several additional years with the Worcester County Sheriff’s Office. During his three-decade-plus career in law enforcement, Martin worked as a uniformed patrol officer before moving to criminal investigations in Ocean City where she spent most of her career, specializing in child abuse investigations. She developed a reputation as a capable and experienced investigator and was often called upon to handle high profile investigations throughout the region. Following her retirement in 2013, Martin transferred to the Worcester County Sheriff’s Office as the detective assigned to the Worcester County Child Advocacy Center. During her tenure, Martin received numerous accolades that included the Silver Star Award in 2019 and the Detective of the Year award in 2023.

OPPD Chief Tom Robonsin (left) and OPA President Stuart Lakernick welcome the department’s latest recruit, Vicki Martin, at the Board of Directors’ April 26 monthly meeting. She was sworn in during the meeting by Lakernick. She joins the department after extensive investigative experience with the Ocean City Police Department and the Worcester County Sheriff’s office.

South Gate pond project on hold By ROTA L. KNOTT Contributing Writer lans to restore the eroding shoreline at South Gate Pond have been put on hold because to a federal freeze on grant funding, forcing the Ocean Pines Association and the Maryland Coastal Bays Program to delay their highly anticipated environmental project, Linda Martin, senior director of business administration, said. She provided an update on the project during the April 26 Board of Directors meeting. “All grants are on hold,” she said. The restoration effort, which has been in development for more than a year, aimed to stabi-

Cutbacks From Page 37 that yet,” Smith said. He does not have a rosy outlook but “the state has done a pretty darn good job at working out its budget issues.” “There is no way to predict with any accuracy what the future looks like,” Smith concluded.

lize the deteriorating shoreline, improve water quality, and protect local wildlife. Thanks to the work of MCBP, the project secured a $150,000 reimbursable federal grant to fund the planning and design phases. Final conceptual drawings were completed and delivered last year, putting the project on track for implementation this year until federal funding cuts halted progress. The estimated total cost for the full project is approximately $500,000, with key features including a submerged gravel wetland at $200,000 to $250,000, a fishing area at $100,000, and extensive landscaping at $100,000 at $150,000. An important part of the design also includes a turtle-friendly layout to protect the pond’s resident turtle population. Martin explained that without active funding, the project must be postponed. The delay impacts not only the schedule but also the broader environmental goals that the project was designed to achieve. The soft shoreline restoration project originally grew out of concerns about the increasing pres-

ence of Canada geese at South Gate Pond. More than a year ago, the Environment and Natural Assets Committee proposed creating a 20-foot vegetated buffer of native plants around the pond to discourage geese, reduce erosion, and improve water quality. Their research suggested that the habitat changes could reduce the resident goose population by more than 50 percent, while also filtering runoff and stabilizing the eroding pond banks. The committee’s early proposal evolved into the larger shoreline restoration effort in partnership with MCBP. Funding was allocated for both site planning and environmental improvements using plantings and natural materials to protect against erosion. However, the federal funding freeze means the project cannot move forward as planned. When the project does proceed, plans call for work to start on the most vulnerable section along Route 589, where erosion has severely reduced the buffer strip between the road and the pond.

OCEAN PINES

May 2025 Ocean Pines PROGRESS 39

OPA seeks $915,000 in county support Most of that is for the Ocean Pines Police Department

By ROTA L. KNOTT Contributing Writer s Worcester County officials prepare a budget for the 2025-26 fiscal year budget, the Ocean Pines Association has submitted a request for $915,000 in funding, seeking critical financial support across three primary areas: public safety, roads and bridges, and parks and recreation. At the forefront of the OPA’s funding request is continued support for the Ocean Pines Police Department, which plays a crucial role in safeguarding the community, responding to a 9,230 calls for service in 2024 alone. These included 332 calls for mutual aid and joint agency operations with other law enforcement entities throughout Worcester County. While the department has consistently demonstrated exceptional service and efficiency, according to OPA President Stuart Lakernick, he noted a unique and ongoing challenge for the department in his letter requesting funding support. Ocean Pines, as a non-municipality, is not eligible to participate in the Law Enforcement Officers Pension System. He said his exclusion has placed the community at a distinct disadvantage when it comes to recruiting and retaining qualified law enforcement officers. In an effort to mitigate this issue, the association has implemented an enhanced pension-equivalent 401(k) program, but the financial demands of supporting competitive benefits continue to strain resources. Lakernick emphasized that the requested grant funding of $725,000 for public safety is imperative to meet the growing demands on the police force, particularly as the community’s population continues to grow, and the number of visitors increases year-round. The funding would

support officer recruitment and retention, advanced training programs, equipment upgrades, and operational enhancements, ensuring that Ocean Pines remains one of Maryland’s safest communities. “Your help in providing much-needed funding is imperative,” Lakernick said. “It will help us meet the related and growing needs for recruitment, training, and response time, keeping Ocean Pines the safest city to live in Maryland.” The second component of the OPA’s request focuses on roads, bridges, and related infrastructure. With 82 miles of community-maintained roads, four bridges, and nearly 400 drainage pipes, much over 50 years old, the need for maintenance and upgrades continues to grow. Lakernick said the association has already taken significant steps to assess and address infrastructure issues, including developing specific plans for roadway improvements and drainage system repairs. These efforts, however, require substantial and ongoing investment. Without additional support from Worcester County, the pace of necessary repairs could slow, potentially leading to deteriorating road conditions, increased flooding, and other public safety hazards. “Ocean Pines taken a more aggressive approach in maintaining our roadways and repairing drainage pipes,” Lakernick said. “If funding from the county were to be made available, these projects could continue and we would be able to alleviate road and drainage problems that currently have an impact on many of our property owners.” In addition to direct funding, Lakernick asked the county to consider including the OPA in discussions about the use of Casino Impact Funds, revenue generated from table games and other

casino operations at Ocean Down. The association hopes that, if additional resources become available through this channel, Ocean Pines residents might also benefit, he said. For the coming fiscal year, the OPA requested $150,000 in county funding to continue infrastructure projects, maintain safe roadways, replace aging drainage pipes, and ensure the long-term viability of transportation networks critical to both residents and visitors. The final component of the OPA’s funding request is for the Recreation and Parks Department, which provides a wealth of free or low-cost programming and amenities to the public yearround. Offering services seven days a week, the department plays a vital role in enhancing quality of life, promoting wellness, and supporting tourism in the region, Lakernick said. The facilities and programs managed by Recreation and Parks are popular with residents and visitors alike, Lakernick said. Amenities include concerts in the park, holiday events, basketball courts, soccer fields, playgrounds, a skate park, walking trails, and a wide range of special event programming. However, he said that these amenities come with substantial operational and maintenance costs that are primarily borne by Ocean Pines residents. Despite the community’s best efforts to maintain these facilities without burdening residents, the rising expenses associated with upkeep, programming, staffing, and supplies have made additional funding necessary. To help sustain these high-quality programs and facilities, the OPA asked the county for $40,000 in Recreation and Parks funding for FY26.

OPA announces staff promotions

cean Pines Association General Manager John Viola in early April announced a pair of promotions to staff members effective May 1. Viola said Linda Martin, currently the Director of Business Administration, has been promoted to senior director of administration. She will continue to report to the general manager. In her new expanded role, she will have responsibility for recreation and parks, public relations and marketing, ompliance, permits and inspections, and strategic planning. Additionally, Justin Hartshorne, currently the drector of golf maintenance, will be promoted to senior director of golf maintenance. Reporting directly to Viola, Hartshorne’s responsibilities continue to be golf maintenance, and he has had a major role in overseeing a major capital project on the Ocean Pines golf course, replacement of a 50-year-old irrigation system. Both Martin and Hartshorne have made significant contributions to the Ocean Pines Association, according to Viola.

By investing in the professional growth and development of its staff, OPA aims to continue providing results and customer service to the community, as well as succession planning, a reference to whom among the current staff might take over Viola’s job when he decides to retire. Steve Phillips, senior director/controller of finance, announced the promotion of Ruth Ann Meyer to deputy director effective May 1. In her new role, she will continue to be responsible for memberships and assessments, and has taken on the additional duties of racquet sports. Terry Underkoffler, racquet sports pro, will now report directly to Meyer. For more than 25 years, she has held several positions with Ocean Pines. “Ruth Ann has stepped up for us on a number of occasions, and she’s extremely knowledgeable about our organization,” Phillips said. “Ruth Ann earned this and I am proud of her personal growth of taking on additional duties throughout the last few years,” Viola said.

40 Ocean Pines PROGRESS May 2025

Board reviews updates to financial resolutions

September meeting to review budget goals would be rescinded in F-02 because the process is already well under way by then

By ROTA L. KNOTT Contributing Writer ousekeeping updates to two Ocean Pines Association financial resolutions and one new resolution were presented for a first reading by Director Monica Rakowski during an April 26 meeting. The resolutions under discussion, Resolution F-01 on Investment Guidelines, Resolution F-02 on Annual Budget Development and Monitoring, and Resolution F-03 on Financial Reserve Accounts, are designed to strengthen the association’s financial management practices and ensure compliance with its governing documents and state law.

Rakowski began by introducing Resolution F-01: Investment Guidelines, noting that while no substantive changes to policy were made, the resolution needed reformatting to correct section numbering and improve overall readability. She said proper formatting is essential to ensure clarity and consistency across all governing documents. Resolution F-01 outlines the investment strategies for OPA’s reserve funds, which are primarily collected through member assessments and operational revenues. These funds are categorized into two main groups: operational reserves needed during the fiscal year,

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and restricted reserves earmarked for long-term maintenance, capital improvements, and asset replacement. The resolution emphasizes that investment strategies must adapt to changing interest rate environments. In normal-rate periods, intermediate-term investments typically yield higher returns, while during low-interest rate periods, extending investment terms may offer little benefit and could pose risks. The revised format ensures that these important guidelines are clear and accessible for both the Board and OPA members. Following discussion on F-01, Rakowski presented Resolution F-02: Annual Budget Development and Monitoring. This resolution provides the framework for developing the Association’s annual budget and monitoring financial performance throughout the fiscal year. Key revisions to F-02 include the removal of a previous requirement to hold a meeting each September specifically to discuss budget guidelines and goals. According to Rakowski, the Finance Department and General Manager John Viola endorsed this change, noting that budget development is already an ongoing process and that a required September meeting was redundant. Additionally, several grammatical updates were made to improve clarity. Resolution F-02 aligns with Section 5.14 of the OPA By-laws, which mandates that the Board approve a budget before the start of each fiscal year, and Section 9.04, which assigns responsibility for budget preparation to the general manager and the Budget and Finance Advisory Committee. The final resolution reviewed was Resolution F-03: Financial Reserve

OCEAN PINES Accounts. Rakowski explained that this resolution sets policy regarding the establishment and management of the Association’s various financial reserve accounts. A first reading was held to establish Resolution F-03 regarding the Financial Reserve Accounts. Resolution F-03 provides for the establishment of the various reserve accounts necessary to ensure that the Association provides funding to maintain or replace, as necessary, capital assets and to provide for future capital assets that have been approved in the Association’s multi-year plans. The By-laws of the Ocean Pines Association, Inc. authorizes the Board of Directors to establish appropriate reserve accounts. The changes included clarifying language to specify that the policy refers to reserve “accounts” and an added provision ensuring compliance with the Maryland Homeowners Association Act, Section 11B-112.3. This ensures that OPA remains in compliance with legal standards governing reserve funding for homeowners associations. The resolution defines the types of capital expenditures eligible for funding from reserve accounts. These include the purchase or replacement of buildings, major equipment, vehicles, and furniture with a useful life of at least two years and an acquisition cost of $2,000 or more. Groups of lower-cost items that together represent a significant investment, totaling at least $2,000, also qualify. Expenditures for bulkhead replacements were specifically excluded from this category. Rakowski said both the Finance Department and Viola confirmed that the updated definitions will ensure better tracking and reporting of reserve spending, supporting long-term financial planning and transparency. All three resolutions were presented for first reading only. No formal votes were taken during the meeting. Each resolution will return for a second reading and potential adoption at a future Board meeting, allowing time for additional review and possible public comment.

Anglers to host fishery biologist May 10 The Ocean Pines Anglers Club will meet on Saturday, May 10, at 9:30 a.m. in the Ocean Pines Library. The speaker is Steve Doctor, Department of Natural Resources fishery biologist. He will be discussing summer flounder, seabass, and the bluefin tuna recreational fisheries and their biological monitoring processes, updates on charter opportunities, regulations and all things fishing. All are welcome.

OCEAN PINES

May 2025 Ocean Pines PROGRESS 41

PUBLIC COMMENTS

Rakowski, Jacobs issue friendly reminders By ROTA L. KNOTT Contributing Writer irector Monica Rakowski took to the podium during the Public Comments segment of the April 26 monthly Board of Directors meeting to encourage members to attend the Worcester County Commissioners May 6 public hearing on the water and wastewater enterprise fund budget proposal. The county is considering spreading enterprise fund deficits across all service areas in the county and Ocean Pines would pay more than necessary to cover the cost of operating its service area. It’s been a contentious issue, to say the least. “It is so important that we get your support. Spread the word,” she said. The Ocean Pines Association will be providing bus transportation to the meeting in Snow Hill for anyone who needs a ride, she said. Also during Public Comments, Cheryl Jacobs, a member of the Ocean Pines Association’s Elections Committee, encouraged property owners to make sure the OPA has their correct mailing address and email. With the annual Board of Directors election coming up this summer, she said it is important that the OPA have proper contact for members to ensure they receive their election packet. “That’s how we get the ballots out to you,” she said. Jacobs said there is a lot of activity in Ocean Pines with new people moving in and others changing homes within the community. “It’s so important that administration has your correct address and your email,” she said., Jacobs also encouraged people to attend the May 17 Ocean Pines Season Kick Off. “It’s free, free, free for everybody,” she said. No other OPA members spoke during Public Comments.

CPI violations

The Board of Directors voted during its April 26 meeting to find numerous properties in continuing violation of the restrictive covenants and to suspend the owners’ use of Ocean Pines Association amenities and their

voting rights. Linda Martin, senior director of business administration, said the owners of all of the subject properties received first and second notices of the outstanding violations and none of them requested a hearing before the Board. One property, 819 Ocean Parkway, was cited for 13 violations. Properties at 2 Quarter Staff Place and 5 Avon Court had two violations each. Properties with one violation were 97 Pinehurst Road, 60 Abbyshire Road, 26 Moby Dick Drive, 100 Tail of the Fox Drive, 78 Robin Hood Trail, and 119 Watertown Road. One property, 26 Moby Dick, was removed from the list for Board action because the violation was rectified. The Board reviewed and approved having a contractor enter onto member-owned properties to resolve another batch of violations. Those properties were: 31 Seabreeze Road, 40 Martinique Circle, 73 Burr Hill Road, 11 Brandywine Drive, 84 Crest Haven Drive, 48 Beaconhill Road, 7 Marview Drive, 7 Dinghy Court, 115 Nottingham Lane, 29 Beaconhill Road, 7 Nottingham Lane, and 214 Windjammer Road Also 1054 Ocean Parkway, 31 Tail of the Fox Drive, 18 Southwind Court, 13 Hickory Way, 20 Seagrave Lane, 11 Hickory Way, 696 Ocean Parkway 7 High Sheriff Trail, 28 High Sheriff Trail, 30 High Sheriff Trail, 26 Gloucester Road, 37 Gloucester Road, 13 Gloucester Road, 795 Ocean Parkway, 131 Watertown Road, 6 Watertown Road, 4 Watertown Road, 97 Pinehurst Road, and 59 Castle Drive.

Interest rate established

The Board unanimously approved a motion to establish a 6 percent interest rate for delinquent assessment fees for the 2025-2026 fiscal year during jts April 26 meeting. OPA Treasurer Monica Rakowski introduced the motion, explaining that the action is required annually under Section 12(3) of the Association’s Declaration of Restrictions. Rakowski emphasized that the governing documents authorize the Board to set an annual interest rate on unpaid assessments.

Sen. Carozza requests halt to offshore wind project

enator Mary Beth Carozza (R-District 38) recently sent a request to the federal government to immediately halt US Wind’s Offshore Wind Project in the Atlantic Ocean off Maryland’s Coast. The request was sent to U.S. Secretary of the Interior Doug Burgum after the Trump administration halted the construction of New York’s massive offshore wind project. “As the State Senator representing Ocean City which is Maryland’s only ocean beach town, I join with my Maryland constituents in calling on the federal government and requesting an immediate halt to the continuation of US Wind’s Offshore Wind Project off Maryland’s Coast,” said Senator Mary Beth Carozza. The conclusions of the Environmental Impact Study by BOEM [Bureau of Ocean Energy Management] were insufficient and weakened the case for Maryland’s offshore wind energy project. While public comment was taken, multiple concerns were never addressed. BOEM conceded in its report that many of those concerns are valid, referring to them as “‘unavoidable adverse impacts’ that could be detectable, measurable, of severe intensity, and long-lasting or permanent.”

A view of West Ocean City harbor where US Wind wants to build a staging area for an offshore wind project.

“Offshore wind energy development is the most expensive way to generate electricity, and the Bureau of Ocean Energy Management has failed to show that offshore wind energy generation is in the best interests of the community and

of Maryland ratepayers,” said Senator Carozza. “Further, BOEM’s own report on US Wind’s offshore wind energy project highlights multiple negative impacts on the environment off Maryland’s Coast.”

42 Ocean Pines PROGRESS May 2025

Bertino rallies residents on county‘s ‘unfair’ wastewater proposal

OCEAN PINES

and Riddle Farm for $3.3 million. Repayment of these loans is to begin in Fiscal Year 2027. The Riddle Farm community has had significant issues that have caused it to pump and haul waste to Ocean Pines and other Pressure continues to be exerted on commission majority to change course county facilities. Numerous attempts service areas. By CINDY HOFFMAN were made to adThe second issue is the repayment of an emerContributing Writer dress problems with Chip Bertino gency $6.2 million loan made from the county’s cean Pines residents turned out in force for a meeting called by County Commis- general fund to the enterprise funds to keep them membrane malfunctions at its facility to no avail, with pumping and hauling costs continuing to sioners Chip Bertino and Jim Bunting at solvent. The commissioners were made aware of this climb over the years. Riddle Farm residents have the Ocean Pines Library on Wednesday, April been paying about $700,000 a year to have the 23. At issue was the impact of a wastewater rate issue in September of 2024. This crisis has been years in the making, ac- waste hauled to the Ocean Pines facility. proposal that would in their view charge Ocean The commissioners have approved a plan by Pines residents in an effort to address a shortfall cording to Bertino. He told the audience that the in the county’s enterprise funds due to misman- Worcester County finance department, which the Public Works Director Dallas Baker to make oversees the Enterprise Funds made a decision major upgrades to the Riddle Farm facility to coragement. The issues are complex. Bertino explained about 20 years ago, contrary to county financial rect the problem, which should be completed in them through a Powerpoint presentation that policy, to make transfers regularly between the December. Once complete, the pumping and haulvarious service area enterprise funds without ing of waste should end. was later shared with attendees. In March of this year, the commissioners were For background, there are 11 service areas/ notifying county administration or the Worcester told that for Fiscal Year 2026, a $2 million comenterprise funds within Worcester County. Those County Commissioners as required. “Over many years, when there was a shortage bined deficit is expected in the service areas. Of include Assateague Point, Briddletown, Edgewain one individual fund, financial transfers were this projected deficit amount, the Ocean Pines ter Acres, The Landings, Lighthouse Sound, Mysmade from one individual fund to another. Even- service area is projected to only be responsible for tic Harbor, Newark, Ocean Pines (including the tually, there was no money to transfer. In short, $116,699. shopping areas, Ocean Downs and Crabs to Go), money transfers were made on paper between To make up for this $2 million deficit, a majoriRiddle Farm, River Run and West Ocean City. fund accounts that had no money in them,” Ber- ty of the commissioners, Elder, Fiori, Mitrecic and There are two key financial issues the commisPurnell voted to require all service areas, regardsion needs to address. The first is the payment tino said. In January of 2025, the commissioners unan- less of debt contribution, to repay the shortage of a $2.1 million projected shortfall in FY2026. Bretino explained that this occurred due to oper- imously agreed to transfer more than $9 million amount in equal shares. Both Commissioners Bunting and Bertino votational cost increases and capital improvement from the county’s general fund as a grant of $2.7 needs not being commensurate with revenue. million to the Riddle Farm service area and as ed against this measure. This equates to about $32 per ratepayer per Through the years, rates were not adjusted to loans to Edgewater Acres for $242,000, the Landu adequate funding and operational levels at all ings for $790,000, Mystic Harbor for $1.7 million

County Commissioner Chip Bertino presiding over an April 23 townhall meeting at the Ocean Pines library.

OCEAN PINES

May 2025 Ocean Pines PROGRESS 43

Lakernick raises alarm over debt shift OPA presidentn promotes May 17 season kick-off celebration By ROTA L. KNOTT Contributing Writer cean Pines Association President Stuart Lakernick issued a call to action during the April 26 Board of Directors meeting, alerting residents to what he called a “very important” and urgent financial threat facing the community. The issue centers on a controversial proposal from Worcester County to distribute nearly $9 million in accumulated debt from various water and wastewater service areas across all 11 districts in the county, including Ocean Pines. “As your [association} president, I’m here to alert you to a serious financial matter that will impact every household in our community,” Lakernick said, underscoring the potential consequences of the county’s proposed cost-shifting plan. “It’s unacceptable for our residents to shoulder the burden of mistakes that they did not make.” Lakernick said the debt originated from years of what he described as underfunding, mismanagement, and a lack of transparency within Worcester County’s wastewater management system. Rather than isolating the financial fallout to the service areas responsible for the shortfall, the county is now considering spreading that burden countywide. Worcester County’s current proposal includes substantial increases to quarterly water and sewer bills, a development that has raised concerns about affordability and the long-term sustainability of such cost hikes, he said. “These increases will hit families hard,” Lakernick warned. “And there’s no clear plan in place to prevent even more hikes in the future.” Ocean Pines is one of the largest and most organized communities in Worcester County, and Lakernick emphasized that it deserves answers and accountability. In response, the Ocean Pines Board has been working closely with

quarter, on top of any other rate adjustments that are necessary within a service area. “This is ridiculous,” Bertino said. He called it a “stupid plan” that does not fix the problem. We are already paying debt services in our bill at a cost of $31 now, according to Board Director Elaine Brady. The $32 would be added to this. If this plan is approved, Ocean Pines ratepayers will pay 10 times more in quarterly dept service than they contributed. Further, it is feared that this plan could be used as a model to require Ocean Pines ratepayers to help repay the $6.2 million loan beginning in FY2027 even though the district contributed nothing to the debt. This is not a done deal at this time. Bertino emphasised that this was only a proposal, which could change or be substituted by another plan at the discretion of the Commissioners. But at this point, it is the only plan that has been put forward for the public hearing, which is scheduled for May 6. Since that vote, Bertino has alerted the Ocean Pines Board of Directors to the issue and encouraged residents to write to commission members over the unfair rate hike. He also called for an outside independent forensic audit of the county finance office. That motion failed with only Bunting and him

Commissioners Chip Bertino and Jim Bunting to address the issue and push for a more equitable resolution. But Lakernick stressed that community involvement is crucial. He called on residents to participate in a community-wide letter-writing campaign aimed at pressuring the county to reconsider its approach. “Make your voice heard,” Lakernick urged, telling resident to email the commissioners at commissioners@co.worcester.md.us. “Tell them we’re watching,” he said the residents should demand a fair and sustainable solution. He also encouraged residents to attend the upcoming enterprise fund budget hearing on May 6, where the issue will be discussed publicly. Lakernick also took time during the meeting to highlight upcoming events and milestones in the Ocean Pines community. He announced that the annual Season Kickoff event will take place on Saturday, May 17, with a new venue to accommodate its growing popularity. Previously held at White Horse Park, the event has now outgrown the location and will move to the Worcester County Veterans Memorial at Ocean Pines. “I really think this is going to be a great event,” Lakernick said. “It was so popular last year that it outgrew White Horse Park.” The celebration will feature a wide range of vendors, food options, and family-friendly activities. It also serves as a showcase of all things Ocean Pines, from community committees and clubs to volunteer opportunities and civic engagement. “Don’t miss it,” he added. “Admission is free, and there’s truly something for everyone.” In another highlight from the April 26 meeting, Lakernick swore in Officer Vicki Martin to the Ocean Pines Police Department. “This is one of the great things we’ve instituted here in Ocean Pines,” he said.

supporting it. “We don’t know what we don’t know,” Bertino said regarding the lack of an audit. “We need to move forward on a foundation that is firm and sound.” It is the responsibility of the commissioners to be as transparent as we can, he said OPA engaged its attorney, Bruce Bright, who sent a letter to the Commissioners and the Worcester County Attorney, Roscoe R. Leslie. In the letter, Bright said, “This “plan,” if pursued by a voting majority of the Commissioners, is not only grossly unfair to Ocean Pines ratepayers, but just as troubling, would directly violate clear provisions of State and local law, would be contrary to the County Water and Sewer Plan, and would in our judgment subject the County to costly legal claims not only by OPA and/or its ratepayer members, but also by the ratepayers in other unlawfully and unfairly impacted service areas (e.g., Briddletown, Edgewater Acres, Lighthouse Sound, River Run, and West Ocean City). He called the proposed plan facially unlawful and a violation of County Code and State law. Bright threatened civil litigation if the plan is approved. “The Ocean Pines Association has our backs,” Bertino said. “That does not mean we are going to win.” A representative from Lighthouse Sound was

in the audience and said the community just found out about this issue recently and that “we arein this with you.” There are three other options that the county staff drafted which have not been discussed by the Commissioners. The first provides no rate change and brings the county further into debt. The second requires each service area to pay for their own operations and capital improvements. Another option is to use the general fund to offset the debt. Bertino is advocating for the second option listed above, which he said would be the fairest for all service customers. He wants to see the commissioners work through the issue with a longer horizon that balances the challenges of the smaller service areas and is fair for all service area customers. “The rate payers are not at fault,” Bertino said. “They are victims as is everyone else.” Bunting said the commissioners have received hundreds of letters from residents and both he and Bertino encouraged people to continue to raise their voices. Bertino encouraged the audience members to reach out to commission members, especially those who may know them personally, to reason with them. “Government works best when the people are involved,” he said.

44 Ocean Pines PROGRESS May 2025

OCEAN PINES

OPA attorney blasts county over enterprise fund ‘mismanagement’ Urges ‘course-correction’ to avoid legal action over $9 million payoff plan By ROTA L. KNOTT Contributing Writer sharply worded letter sent to Worcester County Commissioners by attorney Bruce Bright, representing the Ocean Pines Association as outside general counsel, calls the county’s plan to have ratepayers across all enterprise funds cover the cost of a $9 million water and wastewater deficit unlawful, unfair, and potentially grounds for civil litigation. In the detailed 10-page letter sent to the commissioners last month, Bright accused the county of mismanaging public enterprise funds and attempting to unlawfully burden ratepayers in fiscally responsible communities, like Ocean Pines, with costs they did not create. The April 2025 letter outlines in detail the OPA’s objections to what

it characterizes as a planned “unlawful and unfair” water and sewer debt allocation scheme. The heart of the controversy is a county proposal to uniformly impose higher fees on ratepayers across eleven water and wastewater service areas, regardless of each area’s financial standing or contribution to the deficit. The letter, addressed to the commissioners and County Attorney Roscoe Leslie, outlines numerous alleged violations of the county code, county water and sewer plan, and Maryland law. In the letter, Bright warns that unless the county immediately “course-corrects,” the OPA will likely take legal action, including filing suit for constitutional violations, breach of fiduciary duty, and unlawful taxation. The debt stems from years of be-

hind-the-scenes financial maneuvers, specifically, unauthorized and undisclosed transfers of funds from some solvent service areas to others running deficits. These transfers by county staff violated legal mandates requiring that each service area operate as a separate financial entity. The Ocean Pines Service Area, one of the largest and most financially stable in the county, is being asked to pay ten times the amount of deficit that was actually incurred in that service area. Ocean Pines’ share of the deficit is $116,699. Under the current proposal, however, Ocean Pines rate payers would be charged approximately $1.1 million, an amount Bright describes as “grossly unfair” and illegal under county and state law. Under the current proposal, unveiled during commissioner meet-

ings on March 18 and April 1, $2.1 million of the deficit would be recovered through rate increases across all service areas in the upcoming fiscal year. More would follow in subsequent years. This charge would ignore the historical solvency of individual service areas, like Ocean Pines, Bright claims. He said the plan, if adopted, “Is not only grossly unfair to Ocean Pines rate payers, but just as troubling,” the letter states, “would directly violate clear provisions of state and local law, would be contrary to the county water and sewer plan, and would in our judgment subject the county to costly legal claims not only by OPA and/or its ratepayer members, but also by the ratepayers in other unlawfully and unfairly impacted service areas.” The letter goes on to cite numerous county code provisions and Maryland State laws that require separate financial management of each water and sewer service area, as well as protections to ensure ratepayers only fund services provided to them. u

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OCEAN PINES Bright goes further, citing no fewer than nine separate local and state legal provisions that require distinct accounting, budgeting, and debt servicing for each service area. Key among them is county code PW 5-202, which states that each water and wastewater service area must be accounted for separately and that “charges and fees shall be levied against the benefited properties in each such area sufficient to pay the operating expenses and debt service associated with each separate area.” The OPA argues that any attempt to retroactively legalize the equal surcharge by consolidating the separate service areas into a single, countywide entity would be “unavailing, both be legally and practically.” Even if such consolidation were pursued, it would require a lengthy public process, approval from the Maryland Department of the Environment, and could not legally be applied retroactively. “They would not retroactively invalidate (or render moot) claims that OPA and its members presently have in this regard,” Bright warned in the letter. If the plan proceeds, OPA indicates it will pursue a range of legal remedies, including injunctive relief to prevent the surcharge from being imposed, declaratory judgments that the county’s actions violate existing law, monetary damages and attorney’s fees, claims for violation of equal protection rights under the U.S. Constitution, and claims of unlawful taking, as protected by constitutional property rights. These actions “violated county financial protocols,” Bright wrote, further alleging that the county has yet to conduct or release a formal audit or investigation into the matter. Bright points to Resolution 0403, adopted by the County in 2004, which reinforced an “Existing Ratepayer Financial Protection Policy.” This policy, he argues, is designed precisely to prevent the kind of broad-brush cost-spreading now being proposed. “Course-correct on this matter, and do so immediately,” Bright urged the commissioners in closing. The commissioners have yet to formally adopt the surcharge plan, but budget discussions are ongoing with a public hearing scheduled for May 6. The situation was first brought to light in September 2024 when county staff disclosed the fund deficits and unauthorized internal borrow-

May 2025 Ocean Pines PROGRESS 45

Bright provides chapter and verse of alleged county code violations

n his recent letter to the county attorney and county commissioners challenging a plan to charge Ocean Pines Service Area ratepayers for expenses incurred in other service areas, OPA counsel Bruce Bright contended that if such a plan is enacted, it would violate clear language in the county code and thus would be illegal. Here are the code provisions cited by Bright. • County Code section PW 5-202 states in pertinent part that “[w]ater and wastewater facilities and services shall be provided and managed on the basis of separate service areas . . . which shall be established as provided by law . . . The revenues and expenditures for each such area shall be accounted for in a separate enterprise fund in accordance with the financial managment rules of the county, and charges and fees shall be levied against the benefited properties in each such area sufficient to pay the operating expenses and debt service associated with each separate area; provided, however, that the County Commissioners may, in their discretion, make grants or loans from the general fund of the county to any such enterprise fund as they may determine to be necessary and appropriate.” • County Code section PW 5-203 provides that “the revenues, expenses, assets, liabilities, and debt of each service area shall be accounted for in separate enterprise funds for each said service area.” • County Code section PW 5-304 provides that “sanitary service areas shall constitute separate taxing districts for the purpose of collection of assessments, charges, and user fees for sanitary services provided therein. The County Commissioners may levy such assessments, charges and fees within individual sanitary service areas as [they] deem necessary and appropriate to provide water and sewer services within the sanitary service area.” • County Code section PW 5-306 provides that, when water and/or sewer services are extended or provided from one service area to another, “[i]n all such cases the recipient [service area] shall fairly compensate the [service area provideing the services] for maintenance and operation cost and for a proportionate share of the value . . . of the sanitary facilities required to provide the service.” • County Code section PW 5-310 requires a separate budget each year for each service area, and for assessments within a service area to be set to cover expenses of that service area and “to retire any indebtedness of the service area.” • Separate water and sewer service areas are contemplated and required under section 11-401, et seq. of the Local Government Article of the Maryland Code. • Section 9-648(f) of the Environment Article of the Maryland Code provides that “each [water and sewer] service area . . . is a separate taxing district.” • Resolution No. 04-03, adopted January 20, 2004 by the Worcester County Commissioners, amended the County Water and Sewer Plan to make clear and expand on its “Existing Ratepayer Financial Protection Policy,” and to further protect “existing ratepayers [in service areas] from costs unrelated to provision of service to them.”

ing resulting in insolvency of service areas to the commissioners. Commissioners Jim Bunting and Chip Bertino, both of whom represent Ocean Pines, began raising concerns immediately about the mismanagement and cross-subsidization between service areas without proper approval or transparency. Both have continued to oppose the plan to spread the deficit across all enterprise funds and have worked with OPA to ensure their constituents are informed. Bright’s letter applauds the efforts of Bertino and Bunting in opposing the proposed surcharge plan, for “sounding the alarm on behalf of their respective constituents.” However, the attorney criticized the majority of the commissioners, accusing them of trying to bury critical details and avoid public accountability. Beyond the legal and financial implications, the letter raises broad-

er concerns about trust in local governance. Bright criticizes the county’s lack of transparency in handling the matter and its apparent refusal to conduct or release a formal audit of the enterprise funds. “Apparently, despite there being awareness of this financial malfeasance since September 2024 (or earlier), for unknown reasons, no formal and/or outside audit or investigation of the matter has occurred,” the letter notes,” and no detailed investigative or audit report of any kind has been issued, at least none that has been made publicly available. Indeed, the majority of the Commissioners appear committed to effectively burying critical details associated with this matter, and limiting the scope of public discussion.” “Other aspects of the matter are, unfortunately, not fully known, due apparently to the county’s failure or refusal to either fully investigate or

to fully disclose information and details that are obviously of great public interest and importance,” Bright said. The letter further warns that the county could face lawsuits not only from Ocean Pines, but from other service areas that would be unfairly impacted under the current plan, including Briddletown, Edgewater Acres, Lighthouse Sound, River Run, and West Ocean City. The full text of the letter appears on Pages 6 and 7 of this Progress edition as an advertisement placed and paid for by the OPA. Meanwhile, OPA rallied residents in opposition and encouraged people to turn out for a May 6 public hearing on service area budgets for 202526. The OPA provided bus transportation for residents from Ocean Pines to Snow Hill for the public hearing.

OPA FINANCES

46 Ocean Pines PROGRESS May 2025

Another $1 million year for the OPA very plausible

With $109,000 operating fund variance in March, net positive for the year so far reaches $935,810; there’s one month left in the fiscal year By TOM STAUSS Publisher he Ocean Pines Association recorded a positive operating fund variance of $109,258 in March, increasing its year‐to‐date performance to a net positive of $935,810. According to a report issued by Controller/Director of Finance Steve Phillips, March’s results reflected revenues over budget by $22,118 and expenses under budget by $87,140. For the year through March, revenues are over budget by $412,971, while expenses are under budget by $522,839. The OPA continues to head toward another excellent year financially, with a $1 million in a projected positive variance very plausible. At the February Board of Directors meeting, General Manager John Viola predicted a year‐end operating fund positive variance of about $850,000. At the March 29 Board meeting, Viola revised the estimate to $950,000. It now appears possible that the positive variance will exceed $1 million for the year. Viola acknowledged that real pos-

sibility at the April 26 Board meeting during remarks on OPA financial results for March. As the OPA moves into the final month of the fiscal year, all amenities are performing well. With only two exceptions, tennis and platform tennis, every amenity posted a positive result in March compared to budget, and all except pickleball and the Yacht Club are operating ahead of budget for the year through March. Golf remains the association’s most profitable amenity. Year-todate through March, golf generated net earnings of $513,583, which is $213,103 above budget. In March, the golf operation recorded a deficit of $26,260, an improvement of $12,789 over budget. Compared to last year’s year-to-date net of $396,899, this marks a year-overyear improvement of $116,684. Beach parking continues to be a strong performer, with year-to-date net revenue reaching $544,420, ahead of budget by $14,743. For March, beach parking netted $11,676, slightly ahead of its target by $139. This represents an im-

provement of $14,630 over last year’s year-to-date figure of $529,790 The marinas delivered a yearto-date net result of $258,195, exceeding budget by $50,120. However, March’s performance showed a slight loss of $3,160, missing budget by $54. Compared to $202,807 from last year through the same period, marinas improved by $55,388 yearover-year. The Beach Club continues its role as a cash generator. Its year-todate net revenue reached $255,839, coming in $79,013 ahead of budget. In March, the Beach Club recorded a loss of $1,574, ahead of budget by $5,418. Compared to last year’s $215,873 through March, this is an improvement of $39,966. The Yacht Club has underperformed relative to other amenities. Year-to-date, it has generated only $18,709, falling short of its budget target by $181,469. In March, the Yacht Club lost $1,817, though this loss was $81 worse than budgeted. Compared with last year’s year-todate net of $217,374, this represents a decline of $198,665 year-over-year. Aquatics, despite trailing last

Net Operating by Department - March 2025

Source: Ocean Pines Association Finance Department

year’s pace, is in the black by $28,522 through March. For the month, aquatics posted a net of $3,359, which was $20,491 ahead of budget. Compared to $47,744 last year through March, this is a decrease of $19,222. Though not a high revenue earner for the OPA, the Clubhouse Grille consistently operates in the black. Through March, it had netted $70,427, ahead of budget by $4,392. For the month, it lost $18,024, under budget by $13,889. Through March of last year, the Clubhouse Grille had produced earnings of $95,934, a yearover-year decrease of $25,507. Racquet sports remain a modest profit center for the OPA in 2025. Year-to-date through March, pickleball netted $70,826, $5,371 under budget. Platform tennis showed a small YTD loss of $2,470, but that’s $14,142 ahead of budget. Tennis produced a $25,542 deficit, though that was $15,077 better than budget. For the year so far, combined racquet sports remain in the black by approximately $42,814. Reserve funds: The OPA’s reserve fund balance through the end of March was $6.76 million, down from $7.187 million in February, and 7.681 million in January. The replacement reserve as of March was funded in the amount of $4.9 million, with bulkheads/waterways at $471,664, roads at $1.7 million, drainage at $185,472 and new capital at $24,746. Balance sheet: As of March 31, the OPA had $47,774,390,569 in assets, compared to $46,631,107 at the same time in 2024. Membership: OPA amenity memberships remained at 107 percent of budget by the end of February, no change from prior months. Total memberships sold through February were 4,193, compared to 4,065 a year prior. Membership dues collected through March were $1,309,727, ahead of budget by $87,379. Cash and investments: The OPA’s cash and investment position increased by about $900,000 from the end of February to the end of March, with about $14.3 million on hand on March 31, according to OPA Treasurer Monica Rakowski at the April 26 Board of Directors meeting. That compares to about $13.5 million in cash as of Feb. 28. Cash decreased $600,000 from the same time last year. Of the cash on hand, $8.8 million was invested in CDARs, and $46,000 in interest income was recognized for the month.

May 2025 Ocean Pines PROGRESS 47

OPINION

COMMENTARY

Odd process and a costly result

he process used by the Elections Committee to come up with a recommended vendor to handle this year’s Board of Directors election and Southside firehouse referendum doesn’t deserve a passing grade. Transparent it wasn’t. As Yoda would say, in secrecy cloaked it was, and oftentimes a flawed process will yield a flawed result. Thankfully that didn’t happen. The work product of a process that didn’t bother with adhering to Ocean Pines Association open meeting requirements -- indeed, there’s no record of the committee even meeting to discuss competing proposals -- really was exemplary. The committee majority did its job without fear or favor. As coverage in this edition of the Progress reports, the committee by a 3-2 vote recommended to the Board that the association hire ACE Printing and Mailing of Berlin to handle the election, with tasks including mailing out ballots to eligible property owners, counting return paper ballots, compiling ballots cast on line, and then providing for a fully transparent remote viewing experience of the vote count for those with the stamina to withstand the boredom of it all. A process of adjudicating the intent of those casting ambiguous ballots is also a part of it. ACE Printing and Mailing’s bid proposal met all the RFP (request for proposal) requirements according to a analysis of five proposals by staff, or the committee -- it’s really not clear who did the vetting -- and was less expensive than the other contender, MK Elections, by about $13,000, give or take. None of this matters now, of course, as in a blistering letter to the OPA on April 28 ACE President Thom Gulyas withdrew his proposal after watching the video of the April 26 Board of Directors meeting. The Board was knotted in a 3-3 tie on which vendor, ACE or MK Elections of Pittsburgh, should get the contract. The directors asked the committee to seek additional information from ACE about its bid, specifically how it planned to handle on-line voting. It also wanted references. Gulyas was not amused, nor in the least bit inclined to accommodate what he regarded as the Board changing the rules after the fact. In a telephone interview with the Progress, Gulyas said there were no circumstances under which he would reconsider his withdrawal. This in effect meant that MK Elections was assured of obtaining the contract, at a much higher cost to the association than it needs to be. This is an unfortunate result. OPA General Counsel Bruce Bright in a reasoned, measured reply to Gulyas’ broadside defended the Board’s request for additional information. He in effect argued that RFPs aren’t the end-all-be-all of what the Board can ask for from prospective vendors. Asking about how ACE intended to manage online voting seems reason-

able. Perhaps asking for a client list for references is asking too much. That’s a matter of opinion. Gulyas seems to have overreacted to the Board’s actions at the April Board meeting, but that was his choice and the way he’s programmed to react. The result is that the OPA will be paying much more for elections services this year than it should have. MK managed last year’s election process, which was plagued by MK’s printing subcontractor getting ballots to the post office a week late. That resulted in the late arrival of ballots to eligible voters and a subsequent decision by the Board to delay counting of ballots by two weeks. The traditional certification of election results at the annual meeting didn’t happen because of the snafu. MK also managed to broadcast election results before final adjudication of ballots had occurred, resulting in an early distribution of the election winners before the counting process was officially complete. Oops. There was no harm done, really, as the committee released the final tally hours later. This year, it’s not at all surprising that a committee majority favored ACE’s proposal, even without the benefit of a committee meeting in which the pros and cons of the competing bids were fully aired. ACE Printing handled annual OPA elections for more than 25 years or so before losing the contract two years ago in an embarrassing public spat with the committee in place at the time. Members complained that Gulyas failed to submit a proposal in time for committee consideration. He lost the contract probably by assuming that the job was his because it had been for all those many years. It’s pointless to re-litigate that kerfuffle. Reflecting the committee’s 3-2 split on which vendor to recommend, the Board of Directors at its April 26 monthly meeting couldn’t quite decide whether to accept the committee’s recommendation in favor of ACE. The vote was 3-3, with director Monica Rakowski abstaining. As an announced candidate for reelection to the Board this summer, she said voting on this issue was inappropriate. It was a principled, ethical position, one that other directors contemplating reelection could have adopted. Instead of a 3-3 tie, Stu Lakernick and Steve Jacobs abstaining would have resulted in a 2-2 tie vote. It would have been far preferable for the Board to have stayed out of the process entirely, consistent with language in Resolution M-06 which authorizes the committee to execute an election contract with either the general manager’s or OPA president’s signature. M-06 doesn’t specifically preclude Board involvement in the process, and there is language in the by-laws that provides for the Board voting to approve a vendor recommended by the committee.

The dissenting directors wanted the committee to provide additional information about the ACE proposal, particularly how the local company plans to handle on-line ballots. In the years in which it had the contract, the OPA used paper ballots only. The current hybrid system -- paper ballots and online voting -- went into effect the same year that Gulyas lost the contract to a vendor in the Seattle, Washington, area. His proposal didn’t fare well last year, either. In reviewing the ACE proposal, committee members, at least a majority of them, must have been satisfied with ACE’s ability to accommodate online voting, even if it has to subcontract it out. There’s no shame in that; MK didn’t have all the services it provided to the OPA last year available in-house. If subcontracting is required, so be it. Gulyas told the Progress that although it’s a moot point now, since he’s out of the running for this year’s contract, he has the capability to handle on-line voting in-house. As for the committee’s lack of transparency this year, that seems to have the operational preference of committee chair Steve Ransdell, whose term on the committee expires in April of next year. It would behoove the Board to appoint a chair who is more attuned to the way any advisory committee in Ocean Pines ought to be run. How difficult is to conduct meetings in public, open to the memberships or viewable remotely, since the OPA has the technology for that? How difficult is it to post minutes on a timely basis on the OPA Website? Not difficult at all for the right person in the chair. ~ 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 WRITERS Rota L. Knott 443-880-3953

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48 Ocean Pines PROGRESS May 2025

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LIFESTYLES

May 2025 Ocean Pines PROGRESS 49

Symphony to conclude season with May concerts

Ocean City Performing Arts Center to host ‘Romantic, Triumph and Celebration’ program May 11

his May, the Mid-Atlantic Symphony Orchestra concludes its season with Romantic Triumph and Celebration, a program highlighting the emotional depth of 19th-century Romantic music. Performances will take place on Thursday, May 8, at 7:30 p.m. at the Todd Performing Arts Center in Wye Mills; Saturday, May 10, at 3 p.m. at Cape Henlopen High School in Lewes; and Sunday, May 11, at 3 p.m. at the Performing Arts Center in Ocean City.. The program includes Fanny Mendelssohn-Hensel’s Overture in C major, a vivid and lyrical orchestral work; Robert Schumann’s Cello Concerto, known for its warmth and poetic character; and Felix Mendelssohn’s Symphony No. 4, the “Italian,” filled with vibrant rhythms and sunlit melodies inspired by his travels through Italy. The featured soloist is Gabriel Martins, an award-winning cellist who has appeared with leading orchestras and in major concert halls worldwide, including Carnegie Hall and Wigmore Hall. He is a winner of the Concert Artists Guild/Young Classical Artists Trust Grand Prize and the Sphinx Competition Gold Medal. In addition to the orchestral performances, the MSO will present its season finale ensemble series concerts, offering audiences a more inti-

mate chamber music experience featuring members of the orchestra. These performances will take place on Saturday, May 17 at 7 p.m. at Epworth United Methodist Church in Rehoboth Beach, and Sunday, May 18 at 4 p.m. at the Academy Art Museum in Easton. The Ensemble Series program includes Phantasy for Oboe, Violin, Viola, and Cello by Benjamin Britten, String Quartet No. 3 “Mishima” by Philip Glass, Langsamer Satz by Anton Webern, and Quartet for English Horn, Violin, Viola, & Cello by Jean Françaix. Tickets and more information are available at www.midatlanticsymphony.org. The Mid-Atlantic Symphony Orchestra (MSO) is the only professional symphony orchestra serving southern Delaware and Maryland’s Eastern Shore with a full season of programs. The MSO is supported in part by the Maryland State Arts Council, the Talbot County Arts Council, the Worcester County Arts Council, the Sussex County (Delaware) Council, and the Community Foundation of the Eastern Shore, Inc. A complete schedule of the 2024-2025 season’s Masterworks and Ensembles programs, including venues, times, and other details, is available at www.midatlanticsymphony.org.

Teal Bay Mitzvah Team launches shoe drive

he Teal Bay Mitzvah Team, recently honored as the first recipient of the Good Neighbor Award in Ocean Pines, has launched a community shoe drive to benefit Sole4Souls, a nonprofit that provides footwear to people in need across the U.S. and around the world. The team has placed collection boxes in four locations. People can drop off their gently worn shoes throughout April and May at the Ocean Pines Community Center, Ocean Pines Library, Teal Bay Mitzvah (2 Riverside Court, Ocean Pines), and the Titan Gym (10452 Old Ocean City Boulevard, Berlin).

Each box carries a flyer explaining how the shoes will help. Some will go to entrepreneurs in developing nations. Some will land in the hands of children who have none. All will stay out of landfills, and none will go to waste. Moyer Move Management stepped up, donating 50 cartons for shipping, and Zappos for Good is covering the cost to send them where they belong. “Thanks to the generosity of local businesses, organizations, and individuals, we can give new life to gently worn shoes while making a meaningful impact for people in need,” Margit Novack, a member of the Teal Bay Mitzvah Team, said.

Mixed Bowling League season ends with roll-off

here was a nail-biting ending to the Ocean Pines Mixed Bowling League on April 21, with the championship roll-off at the Ocean Lanes Bowling Center in Ocean City. The competition was between the Monday Champions and the Tuesday Champions. The Monday Champions were the Ospreys with team members Glenn Jacoby, Kathy Monaco, George Payne and Denise Stevens. The Tuesday Champions were the Seagulls with team members Donny Spahn, Alan Wildt, Donna Wildt and Cathy Willis. The Ospreys became the official 2025 champions, winning the best two of three games. The league will begin their next season in late September. A kickoff meeting will be held on Monday, August 25, at 1 p.m. in the Ocean Pines Community Center. Current and prospective members are invited.

The OPMBL has been active for more than 25 years. This year there were 24 teams divided between Monday and Tuesday. It is a mixed league with four people on each team. Contact Barbara Harman at 301-980-7798 for more information. Roll-off champions left to right are Glenn Jacoby, Denise Stevens, Kathy Monaco and George Payne.

Flags for Heroes returns to Veterans Memorial

he Berlin/Ocean City Rotary Club along with the Worcester County Veterans Memorial Foundation has announced that “Flags For Heroes” will be returning to Veterans Memorial Park in Ocean Pines on May 17. The annual display of flags honoring many different kinds of “heroes” will fly from May 17, Armed Forces Day, through July 4. Anyone can sponsor a flag for any hero. Many flags each year honor veterans, first responders, parents, teachers, doctors, and siblings. Each flag will have a medallion attached with the name of the “hero” and sponsor. Medallions may be removed at any time and kept as a reminder of the person honored. There will be a locator map at the flag display to help find a sponsored flag. The fee for each flag sponsored is $5. Sponsor forms are available on the Veterans Memorial website: www.WoCoVets.org. Flags for Heroes supports the Educational Outreach programs of the Veterans Memorial and Rotary Scholarships. The deadline for ordering a flag is May 12.

50 Ocean Pines PROGRESS May 2025

CAPTAIN’S COVE

CURRENTS

State senator aiding CCCC in an attempt to erode CCG Note’s involvement in Cove governance Housing Commission to hear complaints at May 22 meeting in Richmond By TOM STAUSS Publisher tate Senator Bill DeSteph has responded positively to attempts by the Concerned Citizens of Captain’s Cove (CCCC) to see if there is some sort of legislative remedy that could curb CCG Note’s involvement in the governance of the Captain’s Cove association. There is no remedy that is possible for this year, but DeSteph is holding out the possibility that one could be introduced in 2026 in the Virginia legislature. Precisely what that remedy might entail is uncertain at this time. CCCC objects to language in the governing documents of Captain’s Cove Golf and Yacht Club, the formal name of the Cove property owners association, that confers on the declarant/developer CCG Note the right to cast three votes for every lot it owns in Captain’s Cove. The Cove Currents has seen a post on social media by CCCC President Teresa Birckhead in which she indicates she has asked DeSteph to introduce legislation that would eliminate CCG Note’s voting rights on any lot in the Cove that is considered unbuildable because of wetland or other issues. DeSteph’s office arranged for a meeting with Cove residents in New Church on the afternoon of April 16, in which he updated residents about next steps, including a meeting of the Virginia Housing Commission in

Richmond in which he invited Cove residents to attend to press their case against CCG Note involvement in Cove governance. That meeting is set for 1 p.m. May 22, in Senate Room C (Room 311), in the General Assembly Building. The meeting agenda includes neighborhood transitions, local land use and the Community Living Workgroup. Captain’s Cove governance issues don’t appear on the agenda. The Currents has learned that any Cove resident who attends will be invited to speak during the public comments segment of the meeting, suggesting that perhaps Cove governance is not yet a top concern of the housing commission. The commission’s Website says that commission meetings are live streamed. At the New Church meeting, Senator DeSteph described the process of working with the Housing Commission to hear from the various parties and work towards common solution prior to engaging civil litigation. He has used the process before successfully. He said that he hopes that not only those gathered would be able to present their issues, but so would the Cove association, that all parties need to be heard. Association member Lance Stitcher asked if the declarant/developer [CCG Note] would be allowed to make a presentation at the housing

commission meeting as its interests would likely be different from either those present at the meeting or the association. The senator responded that CCG Note should be invited, and that set off a round of objections. Association President Mark Majerus attended the New Church meeting, to the consternation of some attendees, but it was a constituents’ meeting called by the senator and Majerus is a constituent. His presence changed the format of the remainder of the meeting, which lasted about two hours, to a Town Hall format, where the senator acted as the moderator and Majerus answered numerous questions. Among the topics was the complaint that Board meetings of the POA have been conducted at 3 p.m., said to be inconvenient to members who are at work at that hour. DeSteph indicated that there is no violation with holding meetings at that time. Majerus indicated that written transcripts, auditory recordings, all presentation material, and minutes are all available to anyone to review on the public website. When DeSteph asked Birckhead to confirm that this was correct, she agreed. Another association member complained that the Board only allows members to comment for three minutes during the Members Forum segment of Board meeting and the response is often a simple “thank

you.” The Senator responded that the practice of not engaging in give and take with members during the Members Forum sounds like every Board of Education, town or city hall meeting he has ever attended and there is nothing wrong there either. Another attendee requested that the state force an independent CPA audit of the Association’s books. Majerus responded that this done every year with by an independent CPA and the results are published on the association Website and the past decade of such audits are available for review. Again, the senator DeSteph asked Birckhead to confirm that and she did. The discussion then focused on the topic of the Board being controlled by the Declarant, the heart of Weslowski’s et. al. lawsuit in Accomack Circuit Court, that the plaintiffs prefer to call a judicial election review. Because the action seeks injunctive relief, as evidenced by a cover sheet filed by their attorney, Majerus has said that the filing is in fact a lawsuit filed against the association, CCG Note and five members of the Board. Dave Felt, a Board member and vice president of the association, strenuously objected to that characterization and said he was tired of what “the lie” that he and other directors not directly affiliated with CCG Note are controlled by the declarant/developer Birckhead conceded that CCG Note does not control the individual actions of individual directors. The issue of the 3:1 voting right of the declarant/developer also came up and Majerus indicated that he would not address it as it was under civil litigation. The Senator seemed to be unaware of the litigation after Majerus indicated that there had been was a hearing in Accomack just the day before. The Senator agreed to discontinue that particular topic. Near the end of the meeting, To Page 52

May 2025 Ocean Pines PROGRESS 51

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52 Ocean Pines PROGRESS May 2025 Legislative remedy

From Page 50 Birckhead gave an impassioned summary of her group’s grievances, most of which have either been litigated or are under active litigation. She further added that there was something criminal going on in the Cove, without offering any support

CAPTAIN’S COVE CURRENTS for that allegation. She was nominated ‘on the spot’ by those in attendance to make a presentation to the Housing Commission at its May 22 meeting in Richmond. Although it’s clear that the New Church meeting didn’t unfold the way that many attendees had expected, and in some respects De-

Steph was given information at odds with the narrative he had heard previously from the CCCC, there is no indication so far that the senator is backing away from helping to find a legislative remedy to CCCC complaints. So far he has ignored invitations from the association to discuss the complaints in a meeting with the

Board of Directors. Majerus’s answers to questions at the New Church meeting, however, may have broached subjects that would be covered in a meeting with the association Board. The senator’s stance at least as evident prior to the New Church meeting was defined in a letter his chief of staff, Jill Eyler, wrote to a Cove resident this past February. “On behalf of Senator DeSteph, please accept our thanks for your calls, emails and letters regarding the [property owners] association in Captain’s Cove. We especially thank you for your patience as we looked for ways to help. “We are so very sorry about the frustrations you have conveyed to us. Many of you expressed concern regarding the governance of the [POA] and alleged influence and misuse of funds by the developer. As you know, in the preceding months, we have had discussions and meetings with representatives at the state level who might be able to assist in some way. This included the Attorney General’s office and just recently, the Director of Legislative Services. “Unfortunately, as this is a civil issue, they believe the best ways for us to help is to send a letter to the Virginia Housing Commission [asking it to assist],” she wrote. That letter was sent. It asks the commission to “study whether the declarant control provisions of the Virginia Property Owners Association Act are adequate.” The letter also requests the commission to review association governance issues. “This is a broader option that may reveal opportunities for legislation for the 2026 session that can address issues such as yours throughout the commonwealth,” Eyler wrote. She also advised that residents can file a complaint with the Department of Professional and Occupational Regulation (DPOR). “Senator DeSteph will reach out to DPOR. The Common Interest Community (CIC) Board, which is housed under DPOR, may have some ability to become involved. Complaints can be filed by going to: https://www.dpor.virginia.gov/ Report-Licensee. Some of you may have already done this. “DPOR can also be reached at (804) 367-8504,” her letter concluded. Cove Board of Directors alternate Tim Hearn also has attempted to u

CAPTAIN’S COVE CURRENTS Legislative remedy

From Page 52 persuade DeSteph to take another look at the CCCC complaints. In a recent letter to the senator, Hearn said that “while it is always nice to see political leaders be responsive to their constituents, some remarks continue a path of lies and libel perpetuated by the Birckhead et al. faction within Captain’s Cove. “There has never been any evidence of a misuse of funds by the developer, despite Birckhead’s claims to the contrary. Her claims were

based on a financial desire not to have the Association be responsible for constructing and maintaining roads that were deeded to the Association in the early 1970s. “Birckhead et al. filed several lawsuits against the developer and the association in an attempt to support these fictitious claims, and both Judge Revel Lewis and Judge Linwood Lewis of the Accomack County Circuit Court ruled against or ordered dismissals on seven prior claims. “It should also be noted that Birckhead et al. also filed eight prior

May 2025 Ocean Pines PROGRESS 53 legal claims against the same defen- minish the prior rulings from these dants in 2022. They voluntarily dis- judges, especially those of Judge missed those claims via the Virginia Linwood Lewis. Judge Lewis was non-suit statute when they could previously an elected representative not present the necessary discovery with nearly 20 years in the Virginia documents. Other lawsuits filed by legislature.” many of the same Birckhead et al. He concluded his letter by enfaction have similarly never been couraging the senator to seek insuccessful in Virginia’s courts,” formation from all parties “before Hearn said. casting the type of accusations you The Cove’s alternate director, the have made to the regulatory bodies association’s president for many of included in your correspondence, as the years after 2012, told DeSteph well as others on the email distributhat “it appears that you have also tion list.” chosen to not only accept the BirckIn a recent email to the Cove Curu head lies at face value, but also to di-

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54 Ocean Pines PROGRESS May 2025

No ruling yet in election challenge case Judge says he’ll issue a written opinion on the merits at a later time

By TOM STAUSS Publisher he legal challenge to the 2024 Board of Directors election by three candidates who were not announced as winners at last November’s annual meeting of the Captain’s Cove association was heard in Accomack County Circuit Court on April 16 by Judge Lynwood Lewis, who declined to issue any rulings on the merits. He said he would be issuing a written opinion but did not indicate when that might happen. The hearing lasted about two

hours, with both sides given ample opportunity to make their arguments, many of which were made in the initial filing by the plaintiffs and in the defendant’s responses, extensively covered in the February, March and April editions of the Cove Currents. At the conclusion to the hearing, the lawyer for the plaintiffs advised that he may need to amend his filing and ask for a 90-day extension if the judge rules against one of the attorney’s “key” arguments. Plaintiffs in the legal challenge to the election results are Cove res-

idents Virginia Weslowski, Catherine Malstrom and Patricia Borrelli, all active members of the Concerned Citizens of Captain’s Cove and candidates in the 2024 election. Their announced vote totals were less less than those received by the five announced victors, Michael Glick, James Silfee, Roger Holland, John Costello and alternate director Tim Hearn. Along with Captain’s Cove Golf and Yacht Club, the Cove’s property owners association, all five are named as defendants in the suit heard by Judge Lewis. CCG Note,

the Cove’s declarant/developer, is also a named defendant. Emily Hurley from the O’Hagan Meyer law firm represented the association and individually named directors. Dan Berger from Pender and Coward represented CCG Note. Zachary Handlin represented the plaintiffs. Much of the hearing revolved around the defendants’ demurrer defense, which essentially is an argument to dismiss a case in its entirety, with prejudice, contending u

Legislative remedy

From Page 53 rents, Hearn continued his broadside against the CCCC, calling the effort to seek legislative remedies “a desperate attempt at intimidation in the middle of multiple lawsuits.” He said CCCC members had signed off on Cove governing documents when they bought their Cove properties and now they repeatedly try to change them. “If they were truly trying to be genuine in updating docs, they’d should start with having unimproved lot owners no longer subsidizing the amenity costs for homeowners who have daily access to golf course, pools and other amenities,” he said. He suggested an update that would reduce unimproved lot owner assessments by up to 75 percent while increasing homeowner assessments by 75 percent. Hearn said that legislative remedies sought by the CCCC would violate the U.S. Constitution. “Anyone familiar with the 5th amendment that property rights can’t be taken away without equitable payment,” he said, predicting that attempts to erode CCG Note property rights in Captain’s Cove through legislation would, in the end, fail to gain traction in the Virginia Assembly. Majerus said there exists a formal process for updating the Declaration of Restrictive Covenants, which no one from the association nor CCCC “has made any effort to affect change.” He suggested that CCCC try that approach “rather than end-runs via civil litigation or legislative action.”

May 2025 Ocean Pines PROGRESS 55

Election challenge

From Page 54 that even if the facts in the complaint are true, there’s no legal basis for the claim. The judge also heard competing arguments on the defendants’ plea in bar defense that seeks to completely and permanently defeat the plaintiffs’ case, either by denying the facts or alleging a reason why the case should not proceed. Lewis made it clear he was not going to rule on either. Berger opened his remarks on the plea in bar defense by asserting that the plaintiffs are not parties to the 2012 Settlement Agreement that is a document that contains details about the CCG Note’s right to cast ballots in Board elections. He argued that the plaintiffs lack standing to challenge the agreement because of the statute of limitations that requires a more timely filing. “We are now 13 years after the fact,” he said. Regarding the plaintiffs’ argument that the declarant and the Cove association have breached the 2012 agreement, Berger contended that the elections in the Cove have been run “in exactly the same manner” every year since the agreement was signed. If there was a breach of the agreement with regards to the handling of elections or the interpretation of the clear language of the Agreement, it is well past the period to object to any breach, he said. He argued that that the mere fact that the names on the ballot have changed do not introduce “a time period for re-setting the clock.” Handlin framed his clients’ legal challenge as a cause of action issue, that the election was an ‘action’ and did not involve a contract dispute. He aruged that a cause of action lawsuit moves forward automatically and that each election in the Cove is a new action and that therefore the statute of limitations does not apply. Berger responded that the dispute does indeed involve the interpretation of the 2012 agreement and that no breach has occurred as the election process has remained fixed. He contended that the plaintiff’s challenge is against the election process and that CCG Note’s rights to participate in that process were established in the agreement. Indeed, that involvement is also spelled in other CCGYC governing u

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CAPTAIN’S COVE CURRENTS

56 Ocean Pines PROGRESS May 2025 Election challenge From Page 55

documents, he has said. Judge Lewis said he would rule on the competing arguments after reviewing cases cited by the attorneys into their written briefs. The hearing then shifted to the demurrer defense, with Hurley making the argument that the 2012 agreement conferred three to one voting rights to the declarant under certain conditions and that, contrary to a goal of the plaintiffs, there is no provision for independent oversight of the agreement by a third party. She also pushed back on the plaintiff’s argument that the Cove Board is effectively controlled by CCG Note because the declarant voted for candidates other than the three acknowledged declarant members on the Board. She said that the plaintiffs lack standing to challenge the agreement but even if they did, there are only three declarant members on the Board and that voting for other candidates does not constitute control of the Board by CCG Note.

She said that as the plaintiffs aren’t parties to the agreement, they can’t claim violations of it, including the interpretation of language pertaining to the CCG Note’s three to one voting rights. She also reminded the court that the plaintiffs have admitted in documents filed with the court that they are not aware of any breach of contract. She also argued that even if the court were to rule that CCG Note had no right to cast three votes for each of the lots in Captain’s Cove in the 2014 election, it would not have mattered. “They lost on a one to one basis, so the issue is immaterial,” she said. She also countered the plaintiffs’ argument that a request for a members’ list had been denied, when in fact had been delivered after the initial denial. As for the plaintiff’s request that the Court give designated association members authority to oversee the election process, she said there is no authority that would give the Court that kind of power. There is no basis in law for such

relief, she said. Hurley pushed back against the plaintiffs’ request for injunctive relief against future Board conduct. She argued there is no “fact” of future misconduct that a vague request for an “unidentified reward” violates the law’s requirement for specificity. She concluded her remarks by telling the court that was no basis for naming Cove directors in the suit. She said no specific relief can come from any individual directors and that the Court should remove them as defendants, which would leave CCG Note and the association as the only defendants. The hearing then took a somewhat hard-to-understand detour into an issue not raised in the initial filings by the plaintiffs. It was introduced by Handlin in an April 9 filing with the Court. The defendants’ attorneys reportedly did not receive a copy via fax until two days prior to the April 16 hearing, the Currents has been told. Nonetheless, the issue of a third-party beneficiary in the case

arose during the hearing. It appears that the third-party beneficiary according to Handlin would be association members. He said they are a key element to his case. Berger said any attempt to make association members a party to the case would require the filing of what he called a derivative action, which hadn’t been done as of April 16, and that the attempt to add association members as third-party beneficiaries to the 2012 agreement is baseless. The agreement clearly identifies the parties of interest and they don’t include association members, he said. Berger told the Court that declarants have always enjoyed three to one voting rights since the inception of CCGYC and that the 2012 agreement limited the conditions under which they would be used. “And what keeps getting overlooked within the agreement is that the declarant will always retain at least a 1:1 voting right as called out in the last sentence. Elections u

CAPTAIN’S COVE CURRENTS Election challenge

From Page 56 don’t work that you can only vote for three directors and then you can’t vote again. Just because you vote for someone that does not mean you control them,” he said. Handlin tried to explain his reasoning for introducing the third-party beneficiary issue. Calling it a key element to his case, he said the third party beneficiary to a successful outcome of the case would be the 1,000-plus association members who did not vote for the candidates supported by CCG Note in the last election. Handlin said there are two political groups active in Captain’s Cove, the developer and 20 association members, and the 1,000 members who don’t vote for candidates supported by CCG Note. With this division within the Cove, the 1000 members becomes the implied third party beneficial group, according to Handlin. As named parties in the 2012 agreement, the Cove association and the declarant apparently are

the first two parties under Handlin’s reasoning. He told the judge that the Court has the discretion to determine an equitable resolution to the case that rejects the defendant’s demurrer argument and upholds the interests of the 1,000 members. The Court may order any relief it deems appropriate, he said. Handlin then contended that Hearn, elected as an alternate director, is affiliated with CCG Note and is a fourth CCG Note director, a violation of the 2012 agreement. In response to Handlin’s third party beneficiary argument, Hurley said the 2012 agreement was developed for an expressed purpose and did not reference association members but only the association Board and the declarant. She said that any relief given the Court to the plaintiffs must be grounded in law and supported by facts, again arguing that Handlin’s proposed relief was not “properly claimed,” and that the plaintiffs were not parties to the agreement and have no basis for interpreting language within it or challening it

May 2025 Ocean Pines PROGRESS 57

Cove road repairs begin; should be completed by May 1at a cost of $100,000

aptain’s Cove residents no doubt noticed that road repair began in late April on five streets in the Cove. The work was performed by American Paving, at a cost to the Captain’s Cove association of $100,000, Streets included in the project were Blackjack Court, Sailors Way, Bayside Drive, Blackbeard Road and Anchor Court. The Cove association targets high priority repairs every year, with the most seriously degraded roads given top priority.

in court. Berger challenged Handlin’s contention that Hearn is a fourth CCG Note director. Hearn is not a director but an alternate who should not be counted as a fourth CCG Note director, Berger said. He also argued that Hearn is a lot owner in Captain’s Cove and has a right to run for office. He argued that if Handlin wants

to add association members to the case, the derivative action process must be used. Handlin said that if the judge rules in favor of the defendants on that point, he may need to file an amended suit and request a 90-day extension. That’s when the judge said he would make no rulings that day but would do so in writing at a later time.

CAPTAIN’S COVE CURRENTS

58 Ocean Pines PROGRESS May 2025

Captain’s Cove GM Justin Wilder resigns Senior general manager says she won’t fill the position but will disburse duties to others on the PMT

By TOM STAUSS Publisher fter 12 years in Captain’s Cove serving as general manager, the last four under Senior General Manager Colby Phillips, Justin

Wilder has resigned as a member of the Cove’s Property Management team to take a job elsewhere. The resignation occurred abruptly in mid-April and was effective immediately. Nonetheless,

the parting of ways was amicable, with Captain’s Cove Golf and Yacht Club officials on the same page commending Wilder and wishing him the best in his new endeavor. Phillips in a statement announc-

ing the resignation said Wilder’s position would not be filled by a single individual, an action with implications on association finances, essentially a cost savings over the rest of the 2024-25 fiscal year. “Several of the team have stepped up to take on pieces of what Justin’s responsibilities were. The area I feel needs the most attention is the Environment Control Committee piece, and that takes someone with qualifications in that area, communication with members, understanding architectural guidelines, our governing documents, etc.” Phillips said she would fill the ECC component of Wilder’s duties with a part-time position. Interviews started the last week of April. “I have received five applications with hopes to announce that person by the beginning of May,” she said. As for the other duties that Wilder had handled for the association, Phillips said that Community Relations Director Julia Knopf will take over information technology, the members forum and Website oversight; Accounts Receivable Analyst Angela Winder, Controller Sara Shifflett and Phillips will handle foreclosures; Shifflett will oversee the lot sale program; Winder and Knopf will coordinate ballot mailings and statements; and Phillips will handle disclosure packets. Wilder in a recent telephone interview with the Cove Currents declined to say who his next employer will be, but he confirmed that he has moved on to a new position. He said he was precluded by a non-disclosure agreement to identify his new employer but said he was staying in the area. That would seem to narrow down the list of possible employers, as most of them in Accomack County would not be particularly sensitive about the job description of a new employee or care that the employee told friends and former co-workers about the new position. In a statement issued on April 15 through Phillips, Wilder said that “after 12 unforgettable years at Captain’s Cove, I leave with a full heart and deep gratitude for the friendships I’ve built and the skills and lessons I’ve learned within this precious community, from the devotTo Page 60

May 2025 Ocean Pines PROGRESS 59

60 Ocean Pines PROGRESS May 2025

CAPTAIN’S COVER CURRENTS Wilder resignation

From Page 58 ed property management team to the members who became like family to me. “The lessons I’ve learned here about group effort, consistency, and fairness will stay with me always, shaping not just my career but the person I continue to become. This place, and all of you, will forever be part of my story, and I’m thankful for all of it,” he concluded. In his telephone interview with the Currents, Wilder acknowledged that he was well aware of criticism directed against him and other members of PMT on social media by members of the Concerned Citizens of Captain’s Cove but said that such criticism did not push him to seek employment elsewhere. “Although members of the Board of Directors told us to ignore the criticism, I know it hurts members of the PMT and leads to less job satisfaction,” he said, adding that so much of the criticism has been mean-spirited, uninformed and unfair. He said he was gratified by the number of Cove residents who reached out to him after his resigna-

tion was made public, thanking him for his years of service to the community and wishing him the best in his undisclosed endeavor. Association alternate Board member Tim Hearn, who was part of the team that hired Wilder as general manager 12 years ago, said he had enjoyed working with Wilder over the years and was particularly impressed with how he handled it when Phillips was brought in more than four years ago as senior general manager. The senior general manager position eclipsed Wilder’s role, who had been the head of the PMT before Phillips arrived on the scene. Hearn speculated that the drumbeat of criticism directed at the PMT on social media might have played a role in Wilder’s decision to resign despite Wilder downplaying it as a factor. “Many members of the PMT feel they are under attack by the a segment of the community … third party message boards contain regular attacks against Colby, Justin and [Food and Beverage Manager Charlie] Getz. As a Board we ask them to ignore them, as no one should have to work in an environment where that level of abuse occurs.”

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May 2025 Ocean Pines PROGRESS 61

Cove ahead of budget by $630,000 through March Monthly financials show a negative variance to budget of $92,000

By TOM STAUSS Publisher inter months are not generally top performers for the Captain’s Cove association, and March provided true to form with an negative variance to budget of $91,000. But for the year through March, there’s a positive variance to budget of $630,000, so it’s hardly a narrative of doom and gloom. Through February, the positive variance was more than $700,000. The association through March recorded $1,025,42 million in net income compared to the budgeted $412,726. For the year through March, the association brought in $3.64 million and spent $2.62 million, resulting in the net income figure of $1.02 million. Revenues in March only missed budget by $11,816, led by a $16,961 negative variance to budget in food and beverage, continuing a recent pattern. Without that, it would have been a positive variance. On the expense side, there was a $80,168 negative variance, most of that attributable to bad debt expense that missed its budget by $59,761. For the year through March, the financial picture is much rosier. Total operating revenue was $55,630 ahead of budget, and total operating expense was $556,482 less than budgeted, resulting in a cumulative net operating income through March of $612,112. Interestingly, non-operational revenue and expense came in almost exactly on budget, $584 in both cases. There was no discussion of the financial report at the April Property Management Team meeting, as they had not yet been posted. At the February Board of Directors meeting, association president Mark Majerus expressed concern about a decline in the number of guests at the Marina Club. That trend has continued in March, but may improve as temperatures warm and stay that way in the summer months, when non-resident homeowners flock to Captain’s Cove and perhaps are more free-spending that year-rounder residents of the Cove. Also during the February Board meeting Majerus discussed the bad debt issue. He said the current year’s budget had been built around 531 lots in the Cove whose owners were not paying annual dues. But for the October billing, “we had a much larger number” of non-payers, in the range of 200 more than budgeted, which has since decreased to about 80 lots, he said. That has resulted in a $75,000 shortfall through February, which could increase to $150,000 if the April billing yields similar results, Majerus said. The problem manifested itself in March, with the bad debt line that month under budget by almost $50,000.

Captain’s Cove Golf and Yacht Club - March 2025 financial results

Source: Director of Finance Sarah Shifflett

APRIL 21 PROPERTY MANAGEMENT TEAM MEETING

Phillips, department heads recap recent and pending events By TOM STAUSS Publisher t was a relatively short meeting when the Property Management Team met April 21. Senior General Manager Colby Phillips announced that the vacancy created with the departure of 12-year Cove employee Justin Wilder, who’s filled the role of general manager

for the past 12 years, would not be filled by a full-time employee.[See story elsewhere in this edition of the Cove Currents.] Phillips also announced during the meeting that: • Tar and chipping of roads scheduled for resurfacing this year began the third week u of

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62 Ocean Pines PROGRESS May 2025 PMT meeting

From Page 61 April and is complete. • The 24-7 emergency medical service at the Greenbackville Fire Department has rolled out as announced last month. • A golf tournament honoring the late Rob Giard, a long-time chief of

security in Captain’s Cove, will take place in October. Community Relations Director Julia Knopf announced that the Farmer’s Market will open for the season on May 22, lasting through Sept. 4. Vendors will be set up on the Marina Club parking lot from 3-6 p.m. on Thursdays throughout the sea-

son. She said that there are openings for additional vendors. Security Chief John Fox announced that there were 56 incidents handled by his department in March, with 17 of those violations of community rules and regulations. Inspections of homes throughout Captain’s Cove for algae build-up are under way, with notices being

sent out to homeowners whose home exteriors need to be cleaned. “Just because you get a violation notice doesn’t mean you’re going to be fined,” he said. The association just wants homeowners to take action. The members forum only had one association member with an issue, one involving road maintenance.

21530 Taylor Rd., Accomac VA 23301

CAPTAIN’S COVE CURRENTS

May 2025 Ocean Pines PROGRESS 63

COVE CHRONICLES

Farmers market to reopen May 22 for second Cove season By JULIA KNOPF Contributing Writer s the warmth of summer approaches, family meals often embrace the fresh, colorful, and local. For the second year, Captain’s Cove Farmers and Artisan Market will be your one-stop shop on Thursdays to make the most of those vibrant summer meals. Every Thursday starting May 22 and running through Sept. 11, from 3 to 6 p.m., the public and members alike are invited to the Marina Club parking lot at Captain’s Cove Golf and Yacht Club for the market. The second season promises a delightful array of fresh produce, locally sourced seafood, meats, bakery items, and unique artisan creations. Vendors from throughout the Shore have been carefully selected to showcase their products, offering the variety shoppers want. Cornerstone vendors from the first season will be back, including, Scott’s Produce, Baywater Seafood, Bratten Farms, Mill Pond Bakery and more. Pies Etc. will attend approximately three-quarters of the markets, bringing their gluten-free pies and treats. An Eastern Shore summer meal is not complete without seafood and strawberries! IClam4U will offer bags of Chincoteague clams, ready to be steamed or grilled, while Bayswater Seafood specializes in Chincoteague Salts, arguably the best variety of oysters. Baywater will also bring steamed crabs when available. The strawberries will not be hard to miss. Bratten Farms’ vibrant red berries shined like a beacon last season and are on the must-buy list for this year. Twin Oak Farms will be introducing local meat this season, something many shoppers had previously inquired about. The Captain’s Cove Farmers and Artisan Market would not be possible without the efforts of core volunteers Carol and George Pedrick and Ralph Burner. Carol summed up her thoughts by saying, “The market has grown since last year; seeing many of our consumable vendors anxious to return was exciting. I am proud of the local selection of goods we have been able to secure.” As the season unfolds, the market will not only serve as a place to

shop but also as a hub for community connection. It’s an opportunity to engage with local farmers and artisans, learn about their products, and support the vibrant economy of the Shore. Whether you’re looking to stock up on fresh ingredients for a summer barbecue, searching for unique

artisan gifts, or simply enjoying the lively atmosphere, the Captain’s Cove Farmers and Artisan Market has something for everyone. So, grab your reusable bags and bring the family out for an afternoon of exploration and flavorful finds. Join your neighbors, enjoy the sunshine, and celebrate the bounty

of our local farms every Thursday from May 22 to September 11, 3:00 to 6:00 pm. We can’t wait to see you there! Julia Knopf is community relations director of Captain’s Cove Golf and Yacht Club. ,

64 Ocean Pines PROGRESS May 2025

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