November 2018
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Buried in the results of a member survey just released by the Ocean Pines Association is this remarkable result: More than two thirds of responders support conducting a referendum on levying limited and capped fines on property owners who run afoul of covenants and regulations enforced by the OPA. ~ Page 10
THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY
COVER STORY
Bailey recommends against outsourcing financial management Legum and Norman, an HOA management company that was a contender to assume management of the Ocean Pines Association last year, is in the running again to run ‘back-office’ financial functions. But OPA’s general manager says the firm’s services would cost more than keeping management in-house and buying new management software from NorthStar Technologies By TOM STAUSS Publisher our companies, including one that was in the running in the summer of 2017 to assume day-to-day control over management of the Ocean Pines Association, have responded to a recent request for proposals to assume control over functions currently done in-house by the OPA’s finance department. But General Manager John Bailey, in a report to the Board of Directors early in November, recommends the rejection of all four proposals and renews his call for the acquisition of management software by NorthStar Technologies and keeping financial management in-house under the supervision of Director of Finance Steve Phillips. Acquiring the software could cost the OPA around $1 million over six years, according to earlier reports.
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Bailey says outsourcing financial management to Legum and Norman, which he said submitted the most credible proposal among the bidders, was more expensive than keeping management in-house and upgrading software. With upgrade options included, Bailey’s report suggests that L&N management would require an assessment increase to be affordable. The Budget and Finance Advisory Committee reviewed Bailey’s report and recommendation in a meeting Nov. 14. The committee’s chairman, OPA Treasurer and Chief Executive Officer John Viola, said following the meeting that no decision has been finalized and that, rather than make a recommendation, the committee will leave the issue in the hands To Page 40
Daly recommends, then pulls proposal for temporary golf course closure ~ Page 6 The New
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Poll responders back referendum to give OPA authority to fine
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Board directs GM to find ways to cut operating budget It hasn’t received much attention and never was voted on formally by the Board of Directors, at least in public session, but General Manager John Bailey has been directed to prepare a list of targeted cost reductions for board review during the budget approval process. In a recent email to the Progress, Director Frank Daly said that the board had directed Bailey “to develop a list of potential cost reductions for Board review and action that will achieve a 2.5% or greater reduction in the operating budget” in 2019-20. ~ Page 19
Board rejects motion to seek golf course lease proposals A motion by Director Slobodan Trendic to direct the general manager to issue a request for proposals for leasing out the Ocean Pines golf course failed for lack of a second. But the Board of Directors, in discussion after the motion, agreed that the idea warranted further research, and Trendic later said he wasn’t giving up on the idea even while he respected the judgment of his colleagues. The motion was offered by Trendic late in the Nov. 10 meeting of the Board of Directors. ~ Page 33