Progress May-Early June 2015

May - Early June 2015

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Vol. 11, No. 2

www.issuu.com/oceanpinesprogress OPA, Landscapes Unlimited execute golf course pact

After weeks of negotiations that ironed out a few details, the Ocean Pines Association and Landscapes Unlimited of Lincoln, Neb., in the latter part of April executed a three-year management agreement for the Ocean Pines golf course and both floors of the Ocean Pines Country Club. April 30 was Billy Casper Golf’s final official day as Ocean Pines’ golf management company. ~ Page 6

THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY COVER STORY

Harkins, OPA finally resolve Yacht Club contract dispute

Board rejects closing Yacht Club during winter months

Fearing a negative impact on Yacht Club catering and banquet operations, the Board of Directors in late April overwhelmingly shot down a proposal by Director Marty Clarke to have staff develop a plan for enhancing the finances of that Ocean Pines Association amenity, including possibly shutting it down during the winter months.

At the April 30 regular meeting of the board, Clarke offered a motion “that the board directs our general manager to investigate options for the improvement of the operational bottom line performance at our new Yacht Club facility. ~ Page 15

Steen plans duplex subdivision for OP

The first new residential section in Ocean Pines since the late 1990s and early 2000s will be developed later this year if a proposed rezoning for a 30-duplex subdivision with a total of 60 housing units is approved by the Worcester County commissioners. Ocean Pines developer Marvin Steen is proposing his 30-duplex subdivision in a small section of a 200-plus acre parcel located just south of Ocean Pines, adjoining Section 10 and accessible from within Ocean Pines by an extension of King Richard Road.

The duplexes would be arrayed in what is now open field, backing up against a forested area that would remain untouched ... ~ Page 19

Final payment of $11,100 was whittled down from $150,000 requested by contractor shortly after the building was completed in May of last year

By TOM STAUSS Publisher t wasn’t easy, and it required three separate meetings, numerous phone calls and emails that were, according to the Ocean Pines Association project team, “emotional, combative, occasionally loud and always intense.”

But in the end, the OPA and Harkins Construction were able to resolve a dispute over roughly $150,000 in Yacht Club project costs, without resorting to

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arbitration or, worse case, litigation.

The result seemed to suggest that the OPA came out the winner in the protracted negotiations, as the net additional cost to the OPA from all the wrangling was $11,102.89, which was rounded off to $11,100 in a check issued to Harkins within seven days of the parties reaching agreement in early April.

A closer look at the numbers, however, indicates that the OPA and Harkins

almost split the $150,000 equally. Of the actual $151,270.78 in dispute, the OPA ended up agreeing to pay $83,551.98 of it.

What whittled the final payment down to the $11,000, though, was $55,949.09 in OPA back charges and in-house costs related to the work performed by the OPA Public Works Department in the hectic days leading up to the opening of the new amenity in To Page 13

Yacht Club ‘final report’ offers advice on future projects, slams ‘modified design-build’ approach ~ Page 13

Cover photo on ‘final report’ issued by the Ocean Pines Association administration on the new Yacht Club.

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May - Early June 2015

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Board votes to eliminate new lifetime golf sales ith 20 lifetime golf memberships sold to date but no new ones imminent, the Board of Directors has decided to eliminate the possibility of any new sales while fully honoring the sales already in place.

At the board’s April 30 monthly meeting, the directors unanimously agreed to a motion by Ocean Pines Association President Dave Stevens to eliminate the possibility of new sales.

The lifetime memberships were designed to raise a portion of the funds needed to pay for replacement of the greens at the Ocean Pines golf course and those sales did accomplish that goal.

But there’s been an operational cost to that diversion of membership revenue, according to Stevens. That cost is roughly a $50,000 loss in annual revenue to golf operations because those lifetime members no longer purchase annual golf memberships.

Stevens said that completing the sale of the ten lifetime memberships that were authorized would cost the OPA another $25,000 in annual revenue and

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that the additional revenue from lifetime membership really is not needed, as the greens have been fully paid for.

There was little discussion of the motion by the directors before it passed unanimously.

Board to redefine boat ramp usage

The Board of Directors on a proposal by Director Marty Clarke is moving ahead with a housekeeping change in Board Resolution M-2 that pertains to amenity usage in Ocean Pines. The proposed change in M-2 would remove the reference to the Ocean Pines boat ramp in Section 5.a as a general use amenity and add it to 5.b as a fee-based amenity.

Clarke said he was not proposing to impose a fee to use the boat ramp on Ocean Pines residents and property owners, however.

At the board’s April 30 monthly, the directors approved Clarke’s motion to correct what he said was a mistake

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4 Ocean Pines PROGRESS May - Early June 2015 extra attention and praise for its work OCEAN PINES BRIEFS From Page 3 in the drafting of M-2 when it was approved back on Sept. 20, 2011. He said it never was the intent of the board back then to treat the boat ramp as a general use amenity but that inadvertently it was placed in that section of M-2.

Clarke’s motion directs the Bylaws and Resolutions Committee to make the change in M-2 and to have it ready for passage on first reading at the board’s May meeting.

Committee replaces bald cypress trees

OPA Director Marty Clarke singled out the Environmental and Natural Assets Advisory Committee for a little

OCEAN PINES

recently to replace a number of bald cypress trees on Ocean Parkway that did not survive the winter, as well trees in the Wood Duck Park area where three trees were vandalized and destroyed, Clarke said that the trees were a gift to Ocean Pines from local developer Gene Parker, a long-time friend of Clarke’s.

“Mr, Parker is a well-known and highly respected local real estate developer.

He is a good friend to our community and deserves our thanks and appreciation,” Clarke wrote in a short commentary included in the agenda packet for the Board of Directors’ April 30 meeting.

Clarke said that as soon as the committee began its work “the sky opened up and the rain came down in buckets.” He cited committee members Tom List, Judy

Btuler, George Bowers, Austin Scorpio and chairman Bob Abele for braving the elements, replacing the dead trees and weeding and adding new mulch around the new ones. He also cited Jonathan Brown in the OPA Public Works Department for his assistance.

“This was a very worthwhile endeavor at little to no cost to our membership,” Clarke said.

Board approves tap lines to tiki bar

In order to make it more convenient for both bar staff and patrons, the Ocean Pines Association Board of Directors on April 30 approved installation of eight draught beer tap lines to the Yacht Club tiki bar. The lines were inexplicably omitted from the original Yacht Club project

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OPA General Manager Bob Thompson presented the $25,000 capital expenditure request as part of his monthly report. He said the project was included in the current fiscal year’s budget. It was not part of the original building construction project but the conduit for the tap lines was run from the Yacht Club to the tiki bar.

“Why are we spending $25,000 on a brand new $5 million facility?” asked Director Marty Clarke.

Thompson said last year the tiki bar operated without tap lines. Instead the Yacht Club used cans and bottles of beer and tried using a Kegerator for dispensing draft beer. Neither of those options worked well. Instead the OPA plans to install the eight taps lines to serve the tiki bar, he said.

Clarke quipped that the eight tap lines will match the number of customers at the tiki bar. “Everybody can drink their own brand,” he said.

He also wanted to know why the general manager secured only one bid for the project.

Thompson said that is because the contractor performed the initial installation of the draft beer system in the Yacht Club building.

The project was approved in a 5-2 vote with Clarke and Director Jack Collins opposed.

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OCEAN PINES Although there was no supporting documentation about cost in the board packet posted on the OPA Web site prior to the meeting, the Board of Directors approved new flooring for the Assateague Room in the Community Center along with a number of items grouped together in one motion.

The vote was taken at the April 30 meeting of the board, with the directors apparently having the supporting document that was not shared with the membership.

The capital items approved in the same 5-2 vote that approved new draught beer lines for the Yacht Club tiki bar also included a new Excavator, a Dingo, a trailer, a mower, tiki bar hurricane shutters, and the Assateague Room flooring.

The tiki bar shutters were budgeted at a cost of $25,000 in this year’s capital budget.

OPA seeks information on reserve study

As part of a three-pronged approach to planning for maintenance of existing Ocean Pines Association facilities as well as construction of new ones in the future, the Board of Directors is planning to solicit a request for information from consultants that can perform a facilities reserve study.

The RFI was crafted by a team of Ocean Pines staff and property owners that has been working to develop the reserve plan and capital improvement plan. The reserve study, essentially a snapshot of facility conditions, will give the CIP critical information while the comprehensive plan will direct the CIP in the long term. The OPA needs a new reserve study also because an existing study, conducted in 2008, does not include all facility components of each particular OPA campus.

The reserve study will detail how long the components of various facilities will last, where in that life cycle they are and the cost to replace them. The CIP itself is more of an operational document

that will be used day-to-day to make facility improvements.

Both of those plans, which focus on shorter term needs, are being drafted to complement a long-term comprehensive plan.

During an April 30 meeting, board members wanted to know when that RFI will be solicited in the community.

OPA General Manager Bob Thompson said he was not in charge of that item and asked the board for input regarding how they want to proceed. “I’m not the lead on that,” he said. “If you want it out tomorrow, I’ll have it out tomorrow.”

Board members said they had not had much time to review the RFI and asked for a few days to do so. OPA President Dave Stevens suggested that Thompson e-mail the document to board for comment and then send out the RFI to potential consultants the following week.

Steven said the intent of the RFI, as opposed to a request for proposals that would actively seek bids for the project, is to determine what companies in the area can provide such as service and to learn more about them.

Former OPA president scolds board on process

He may or may not be a candidate for the Board of Directors this summer, but former director and OPA president Bill Zawacki had some pointed advice for the directors at their April 30 meeting, following up on similar remarks he offered at the board’s March meeting. His visibility suggested to some that he might be thinking about a comeback, but after the meeting he declined to say one way or the other.

His advice to the board: Stop voting on motions before the public comments segment of the meeting, in order to give OPA members an opportunity to comment before a decision is made.

The issue arises because General Manager Bob Thompson’s monthly report is discussed in the meeting before public comments, and the monthly report usually contains action items requiring a board vote. Rather than wait for later in the meeting under old or new

business to take action, directors sometimes move to act on the spot.

Zawacki said this isn’t fair to OPA members whose views should at least be considered before any decisions are made. There was no direct response to his advice by any of the directors, who sometimes do engage with OPA members when they offer comments during the public comments segments of board meetings.

Memorial foundation to host May 25 party

The Worcester County Veterans Memorial Foundation is hosting a cocktail party celebrating the tenth anniversary of the memorial on Saturday, May 25, from 5 to 7 p.m. on the grounds of the memorial at the South Gate of Ocean Pines.

The catered event under the big white tent will feature the sounds of the USO shows that entertained troops during World War II. Performers will include Frank Nanna and The WWIIunes, as well as the Singing Waiter, Todd Cosby.

The party will include heavy appetiz ers, beverages and a cash bar. Attendees will have the opportunity to properly dispose of old American flags and purchase new ones.

To make a reservation, contact Barbara Robert at 410-208-3249 or Mary

Adair at 410-208-0376.

The cost is $25 per person. Mail your check payable to “WCVMF” to Barbara Robert, 1301 McHenry Court, Ocean Pines, Md., 21811. Proceeds from the event will be used for the WCVMF’s educational program for all 5th graders in Worcester County. Sponsorships and memberships are also available.

OPA schedules get-away trips

The Ocean Pines Recreation and Parks Department has scheduled several bus trips in coming weeks.

The Nationals host the Phillies at Nationals Park on Sunday, May 24. The bus will arrive in Washington in time for the game at 1:35 p.m. The cost for this trip, which includes transportation and game ticket, is $80 per person.

NASA’s Wallops Flight Facility will be the featured destination for a trip on May 19. Additional trips are scheduled for June 11, July 21 and Aug. 18. Tour companion Steve Habeger, a former employee at Wallops, will provide additional information during the facility tour.

The cost is $35 per person.

A trip to New York is scheduled for Saturday, May 30, with participants free to spend the day sightseeing, shopping or catching a show. The cost of the trip is $80 per person, which includes transportation only. The bus will stop for

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New flooring approved for Assateague Room

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6 Ocean Pines PROGRESS

OCEAN PINES

May - Early June 2015

OPA, Landscapes Unlimited execute pact Key Billy Casper Golf employees retained by new golf course manager

By TOM STAUSS Publisher fter weeks of negotiations that ironed out a few details, the Ocean Pines Association and Landscapes Unlimited of Lincoln, Neb., in the latter part of April executed a three-year management agreement for the Ocean Pines golf course and both floors of the Ocean Pines Country Club.

April 30 was Billy Casper Golf ’s final official day as Ocean Pines’ golf management company.

The new contract’s effective date – and the date LU assumed responsibility for running the day-to-day affairs at the golf course – was May 1. That afternoon, Landscapes Unlimited celebrated the transition by hosting an open house and putting contest at the Ocean Pines golf and country club. The free event was well attended by Ocean Pines residents.

Among the LU representatives in attendance were Regional Manager Soctt Nissley, Vice President of Finance Bryce Juedes and Vice President of Business Development Mark Mattingly.

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Also on hand were former members of the Billy Casper Golf staff that Mattingly, in an interview with the Progress, confirmed had been hired by LU. Among the carry-over staff attending the May 1 open house was Ocean Pines Director of Golf John Malinowski and course superintendent Rusty McLendon.

OPA President Dave Stevens earlier had indicated that he understood that Malinowski and McLendon had been approached by LU management to stay on and that both indicated their willingness to do so.

As a result, “golfers in Ocean Pines won’t really notice much difference” in golf course and pro shop management with the change in management companies, Stevens said.

The new contract sets out a base management fee of $6,500 per month beginning May 1, with a three percent increase per year on the anniversary date. In addition, the contract establishes an incentive package for LU, called a “contingent management fee.” It’s defined as ten percent of any improve-

ment in each fiscal year’s net operating income over a baseline net of a $100,000 loss. However, the first time the incentive fee could be paid out would be with the fiscal year ending April 30, 2017. It also would be capped at 25 percent of the base management fee in any given fiscal year.

In the golf course’s first fiscal year under LU management, the company is operating under a budget essentially drafted by Billy Casper Golf last year.

Under the new contract, LU will

supervise and operate the course on behalf of the OPA. Duties include collecting and disbursing revenue, negotiating and managing leases and contracts, employing personnel, promoting the course, purchasing and selling food, beverages, supplies and services, as well as purchasing and maintaining insurance coverage, handling disputes with third parties, and collecting and paying all appropriate taxes at the course.

To Page 15

OCEAN PINES BRIEFS

cludes transportation an game ticket.

The buses for all of these trips, which are open to the public, will depart from the Ocean Pines Community Center, located at 235 Ocean Parkway in Ocean Pines. Reservations are required. Refunds will not be issued for cancelations unless vacant seats can be filled.

For more information or to register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

From Page 5 breakfast and dinner along the way.

Orioles fans can watch as the team hosts the Yankees on Sunday, June 14 at Camden Yards. The bus will arrive in Baltimore in advance of the 1:30 p.m. game time, allowing time for lunch and to explore the Inner Harbor. The seats will be located under cover in left field.

The cost is $85 per person, which in-

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May - Early June 2015Ocean Pines PROGRESS 7

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Joe Reynolds photo

Golf course management change

May 1 marked a change at the Ocean Pines golf course, with Landscapes Unlimited taking over as the contract manager. An introductory party was held at the Country Club that day, attended by LU executives and members of the Ocean Pines Association Board of Directors. Pictured (left to right) are Scott Nissley, LU regional manager; Jack Collins, OPA treasurer and director; Bryce Juedes, LU vice-president of finance; Dave Stevens, OPA president; Mark Mattingly, LU vice-president of business development; Jim Bunting, Worcester County commissioner from District 6; Sharyn O’Hare, OPA director; Pat Renaud, OPA director; and Tom Terry, OPA director.

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GM predicts rocky finish to golf under Casper Ritaa’s Thompson Woorld data confirms April golfKK OCEAN PI N ES K 2000 Nails s course play off by 522 rounds of Wine i Beer & Spir S its ODOR FREE SALON Profeessional Nail Care for both 10% O OFF Ladies & Gentlemen CLEANERS & ALT TER RA ATIONS T

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By TOM STAUSS Publisher Nat a ur uraal Light g CK Mondavi here some good30news $15 not 99 1.5Lwas $9.99 Packkand $15.99 so good news in General Manager Bob Thompson’s April 30 written report to the Board of Directors about golf operations in April, the final month of the fiscal year and Billy Casper Golf’s final month of operating the Ocean Pines Golf Course.

The report also contained another volley in the continuing saga over whether and to what extent the board’s recent decision to change management companies at the Ocean Pines golf course may have affected the number of spring bookings at Understa anding the course.

This time, however, Thompson managed to offer up some data without triggering a contentious debate with board critics, something that he did not manage to accomplish in his March general manager’s report. In fact, his April report did not renew his earlier claim, disputed by certain directors, that uncertainty over golf course management contributed to

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the decline in rounds for April.

But he referenced reports from Ž March,’s February and January in which what impo ortant he predicted declines in spring rounds – or as he wrote in his April report, “a predictable decline in spring rounds.� “The anticipated decline in rounds now appears to be accurate as total rounds for the month of April are 522 lower than the same period for April 2014,� he wrote, adding that 412 fewer rounds from outside play constituted 79

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percent of the actual decline.

Thompson’s report did not contain any actual financial results for golf in April; those reports generally would be posted on the OPA Website by the third week of May, if the usual pattern is followed.

However, the significant decline in outside play almost certainly will have an effect on the bottom line for April and for the fiscal year.

A less than stellar April will most likely contribute to a hefty loss in golf for the

year ending April 30.

As is customary, Thompson used his April 30 general manager’s report to tout positive aspects to golf operations from the previous month while ignoring those that shed a less than favorable light. He said that golf finished March $11,317 better than budget and that after 11 months of operation, golf is only behind its budget by $13,913 for the year. He accurately reported that golf for most months of the

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From Page 11 plan for pickleball courts grew from including four to eight courts in this fiscal year. “We’ve always talked about four,� he said, in reference to the capital budget approved for this fiscal year back in February.

He said the OPA only has 63 pickleball members and that equates to about six users per court.

Director Jack Collins said it is a matter of the “economies of scale.� He said it

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410-629-1048 Clarke also questioned the need for additional platform tennis courts. While everyone keeps saying that sports is growing, the platform tennis membership has actually fallen by 35 percent, he said.

When asked by Collins about a timeline for building the new courts, Thompson said he couldn’t provide one yet.

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From Page 8 year has performed better than budget and much better in actual numbers than the previous year.

There’s been “a realized improvement of $164,095 over the same period of time” year over year, he said.

What he didn’t say is that golf operations in March lost $49,496. Because of three consecutive months of substantial actual losses, golf operations have slipped deeply into deficit territory for the year. The cumulative loss for the year through March is $146,198.

Much, therefore, hinges on April, where financial results are at the mercy of weather conditions. Last April, golf operations lost about $15,000. A reasonable

forecast for the year would have golf losing about $160,000, assuming that this April comes in close to last year’s numbers.

But that presupposed a good April for bookings and cooperative weather. Bookings last month were substantially off, according to Thompson’s own numbers, and April weather this year was punctuated as it often is on the Eastern Shore by lots of rain and cooler temperatures.

Soggy course conditions were the norm last month.

Issued prior to the decision to replace Billy Casper Golf with Landscapes Unlimited, Thompson’s end-of-year forecast in February had golf losing roughly $90,000 for the year. That would have required an April yielding a $56,000 surplus or more.

That seems virtually unreachable given the year-over-year decline in bookings detailed by Thompson in his April report to the board.

In April of last year, there were 1,076 member rounds, 2,034 non-member rounds, for a total of $3,110.

This April, there were 966 member rounds, a 110 decline from last year, and 1,622 non-member rounds, 412 less than a year ago. There were 2,588 total rounds this April, a decline of 522 from April of last year.

The decline in bookings could tee up a continuing blame game should actual golf losses for the year come closer to $200,000 than the $90,000 predicted by Thompson just a few months ago.

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Rocky finish From Page 11 on the bottom line is whether April will continue the pattern of recent months in which course maintenance costs show dramatic improvement when compared to budget.

In March, for instance, the actual maintenance expense came in at $7,136, compared to the budgeted $39,179. For the year through March, maintenance expenses are shown as $237,160, against the budgeted $312,113, a $74,953 differential to the good.

In response to a question from Director Marty Clarke, Thompson explained the substantial savings over the fact that cold weather in March prevented some normal maintenance projects to be delayed.

What he didn’t say is whether delayed maintenance will show up as a large expense in later months, such as April or perhaps in May, the first month the course will be operated by Landscapes Unlimited, the successor to Billy Casper Golf.

If so, the results could trigger continued division among the directors over the fiscal effects of the management change.

In March, during the board’s regular monthly meeting, a one-liner in Thompson’s written report to the board triggered a litany of comments from certain board members about just where Thompson obtained his information about golf bookings and how much of it he should be sharing with them.

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“With the recent changes in golf, we should anticipate a decline in rounds and outside bookings for the spring season with anticipated recovery once the new management company is in place, Thompson said in his report, which was reviewed by the board during its March 28 regular monthly meeting. He also said that golf finished the month of February $5,382 better than budgeted, and year-to-date, the OPA has realized a $138,579 improvement in golf over the same time frame from the previous year.

But it was the comment about a potential slip in outside golf that irritated certain directors. Thompson supporters on the board jumped to his defense.

Director Marty Clarke demanded to know on what information Thompson was basing his projected downturn.

Thompson responded that it was based on the fact that there is no “clarity” regarding who will be managing the golf course this coming year and status of the bookings. “We don’t have anyone actively out there engaged until we have the new purveyors in. So I would say it is impacted,” he said.

Clarke said the booking agents to whom he has spoken have been very positive about outside play at the OPA’s golf course. “Contrary to what you’ve heard, the booking agents I’ve spoken to have said the other side,” Thompson replied.

It turns out Thompson was right about the bookings for April. The jury’s still out on the cause.

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May of last year. Another $16,500 was subtracted for a landscaping allowance in the original contract that was not paid to Harkins because the OPA handled most of the landscaping.

According to the April 14 final project report, the OPA was presented with a proposed change order #6 about a year ago that contained, in the opinion of the project team, a mix of valid and invalid items that totaled $151,270.

In the final showdown prior to settlement, the OPA provided to Harkins an “open book” of actual costs and project authorization limits, telling the contractor that the OPA would not settle beyond a final cost of $4,770,110, of which Harkins’ share could be no more than $4,092,834.

In its final offer to the contractor, the OPA agreed to pay the final $11,100 on change order #6 within seven days of execution, provided that Harkins agreed to a so-called “global settlement” of all claims, extras, back charges and all outstanding issues except those covered under warranty. It was understood that the contractor would continue work on replacing defective decking on the upper floor of the Yacht Club.

The OPA negotiation team, comprised of OPA General Manager Bob Thompson, Ocean Pines property owner and project team member Ted Moroney

Yacht Club report offers advice on future projects Project team criticizes ‘modified design-build’ process used to build new amenity

By TOM STAUSS Publisher t’s billed as a “final” report on the process that led to the completion of a new $4.77 million Yacht Club a year ago, but in many respects it turns out to be a tutorial on what not to do should the Ocean Pines Association decide to embark on any other major project in the future.

The April 14 report, authored in varying degrees by OPA General Manager Bob Thompson, Ocean Pines property owner and Yacht Club Task Force member Ted Moroney, and OPA Public Works Director Eddie Wells, contains several sections labeled “lessons learned.” These sections focus on the process and procedure leading up to the award of a construction contract and during construction, as well as operational challenges faced by staff once the building opened.

Perhaps the most noteworthy admission of the report is that the “modified design-build” methodology used to build the new Yacht Club didn’t work all that

I

well. The group is recommending that “nearly” all future projects should go to either an in-house design-build system, in which all aspects of design and construction are handled by a single firm under one roof, or to the more traditional architect-design, contractor-bid-andbuild approach.

The new Yacht Club was built under what was called modified design-build, which the report describes as an attempt “to marry the cost and design advantages of an in-house design team, while also using … a stand-alone architect who in theory brings a wider breath of experience to the design phase.”

According to the report, the decision to go with “modified design build” was driven by the Board of Directors over the objections of the project team. The preference for “modified design build” led to a board decision to award the construction contract to Harkins Construction, whose proposal contained what the report described as a “quasi stand-

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q

From Page 1

and OPA Public Works Director Eddie Wells, informed the contractor that if Harkins did not accept the final offer, the OPA would have no recourse but to invoke dispute resolution clauses in the contract.

Harkins agreed to the final number and the conditions “and both parties were satisfied with the final outcome,” according to the final project report.

A final project dashboard was contained in the final report, dated March 27.

It shows a total project value of $4,770,297, consisting of a construction cost approved in referendum of $4,314,297 in addition to another $456,000 approved by the board well after the referendum for new kitchen equipment.

The Harkins contract with approved change orders amounted to $4,092,834, with another $677,276 in OPA project costs, totaling $4,770,100.

The final dashboard indicates that the project cost came within budget, beating it by $187, perhaps giving the OPA administration bragging rights for accomplishing what some critics don’t necessarily believe occurred.

Actually, it didn’t, as the additional $456,000 approved by the board for new kitchen equipment was not part of the 2012 referendum but instead was tacked on to the project when it was belatedly discovered – some say

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Future projects From Page 13

alone” architect in the mix. A competing proposal by Lehman Brothers, preferred by the project team, cost less than the Harkins’ bid and included in-house architectural services.

The project team concluded that modified design-build approach involves an “innate conflict” between the independent architect and the contractor because the architect is not always “in the loop” with respect to costs. The result is that the customer – in this instance, the OPA – articulates a desire or objective and the contractor has difficulty delivering it on or under budget.

The OPA Board also decided it wanted a kitchen designer to assist Harkins as a subcontractor, but the hope or expectation that this would be of “great assistance” turned out differently.

“In reality, there were a number of coordination issues between the two and the contractor that led to significant disagreements between the OPA and Harkins,” the report said. “While these were resolved, in our opinion they only contributed to the unsatisfactory nature of the modified design-build delivery system.”

The report also addressed the much-criticized original decision by Thompson to include kitchen equip-

ment from the old Yacht Club in the new building, presumably as a way to keep costs down in the run-up to the referendum.

While the report exonerated Thompson for that decision – contending that it was “everyone’s belief (the old equipment could be reused” – the report authors recommended that in future major construction projects “it would be best to bid the project without any (used) equipment or materials.” If it turns out some of the equipment is salvageable, “it will result in a cost savings,” the report said.

The project team took pains to say that Harkins, AWB as the architect and Savoy-Brown as the kitchen designers all did a quality job, but that “placing them all under one contract” using the modified design-build approach” caused “inherent” problems and issues.

Noting that county requirements and regulations have become “more onerous and selective” since the OPA built a new Community Center a few years ago, the project team is recommending the spending of more upfront money before sending out an RFP (request for proposals) “to fully vet requirements and potential obstacles to design and permits.

This will save time and disputes in the long run,” the report said.

The project team also said that, in hindsight, it would have been better to have a line item in the Yacht Club con-

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struction budget for “inevitable in-house costs,” such as landscaping.

“While we were credited by Harkins for work we performed for them … much of the work OPA performed was to enhance the project and/or project campus,” the report said. “Extending landscaping through the parking lot and adding additional parking light … all made sense but were not originally anticipated.”

The project team recommended that, in future projects, 1.5 percent of project costs should be added for OPA miscellaneous labor and material. Noting that the included Yacht Club contingency was “just adequate”, in the future the team suggested that a contingency amount for major projects should be at minimum 7.5 percent of project costs and 18 percent for major renovations.

In another “lessons learned” section of the report the project team acknowledged problems encountered by the OPA once the building opened for business.

Because the winter of 2013 was one of the coldest and wettest on record, along with challenges “posed” by the county, completion of the project in time for the Memorial Day opening last year “was a continuing concern.”

While that deadline was met with little time to spare, the project team admitted to many challenges at the opening.

The Yacht Club staff “had little time to become familiar with the facility and the operational elements within,” the report said. “Insufficient training of staff, lack of operational understanding and some inefficient design elements created new challenges to overcome.”

The report blamed defects in the bar design on poor coordination between the parties, said the positioning of the outdoor tiki bar was the “best available” despite poor protection from the sun, and the kitchen design was also affected by poor coordination between the parties and that requested modifications “became a contentious issue” between them.

“In addition, the kitchen layout, to include the kitchen equipment, has left some deficiencies in electrical outlets and heating elements” that the report said would be addressed before Memorial Day this year.”

Finally, the report said “designed flow” from the kitchen areas to the service area “was not followed” by staff, creating service issues.

“Managing those processes more effi-

Yacht Club

fiscal year that began May 1. Arguably, some of these items reasonably should have been included in the list of items needed to “complete” the Yacht Club project.

For instance, the approved Yacht Club capital list for this year includes $17,972 in new kitchen equipment, $26,877 for a tiki bar draught beer system that was omitted last year, $25,000 for tiki bar hurricane shutters, $20,000 for an outside service bar, $17,858 in banquet furniture and equipment, and $20,000 for another fire pit, outdoor fans and a big screen TV for the downstairs bar area.

Moreover, there is the possibility of future capital expenditures needed to fix generally acknowledged defects in the building, including a downstairs bar that users have concluded is too small and an upstairs banquet area that does not easily accommodate smaller groups.

At some point, these defects will probably need to be addressed.

From Page 13

rather conveniently – that the old Yacht Club kitchen equipment was not usable in the new building.

The project team, according to the final report, implicitly rejects any conspiracy theory regarding the kitchen equipment.

“Until such time as the equipment was removed and examined, it was everyone’s belief it could be reused,” the report says. “In reality, examination after removal indicated major issues with the equipment and with the appropriate county inspectors.”

The report did not address why the county inspectors or kitchen design experts were not contacted before equipment reusability was assumed.

In addition, the final dashboard does not include $140,948 in new Yacht Club capital expenses approved by the Board of Directors in the budget for the new

q

14 Ocean Pines PROGRESS

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Board rejects closing Yacht Club during winter Residents complain of losses, suggest alternatives, including leasing

F

Future projects From Page 14 ciently this season will be one of the objectives of our new Yacht Club manager,” the report said.

The project team concluded with a prediction that help is on the way.

“Having the majority of design issues addressed, a new Yacht Club manager in place and a better understanding of operational flow will lead to overall operational improvements,” the report concluded.

Collins said closing in the off-season will hurt rather than help the Yacht Club’s bottom line. He said that a significant portion of the outside package play at the golf course begins in October when the motion calls for possibly shutting down the Yacht Club.

“There’s no question that there’s a big issue as to how well the Yacht Club performs,” Director Tom Terry said.

However, he said General Manager Bob Thompson is aware of the issue, partic-

Golf course contract From Page 6 The contract specifies a continuing role for OPA General Manager Bob Thompson in overseeing golf course operations, calling on him to “reasonably cooperate to permit” LU to carry out its responsibilities.

The contract also says that the general manager will have authority “to review … and provide guidance, approval and/or disapproval” of decisions and recommendations of LU “beyond the scope” of regular operations at the course.

The contract authorizes LU to operate the second floor of the Country Club, with the caveat that the OPA will be able to use the second floor for purposes unrelated to golf activities.

Even more emphatically, under a section called Major Decisions, the contract says that LU will submit proposals for all major expenditures (those $10,000 or more), improvements and events that affect the course, including annual budgets, to the general manager for review and approval by the “owner.”

That would seem to imply a role by the OPA board of directors in approving major decisions affecting the course.

The contract acknowledges that the OPA may be “required” to make alterations to the course or roads/ bridges to the course, in which case the general manager, representatives of the OPA board and LU “will confer and determine a course of action … to minimize impact on golf operations.”

That’s a reference to a bridge over a canal on Clubhouse Drive, just before the Country Club campus. If the bridge is closed to traffic, or perhaps limited to one-way, access to the golf course would be problematic.

The contract requires LU to submit a proposed operating budget for the following fiscal year no later than Nov. 1 of any calendar year, along with a written business plan for the golf course amenity no later than Oct. 15.

LU is responsible for coordinating all promotion, advertising and public

ularly in the off-season, and is already investigating ways to improve the bottom line.

Terry said that if the OPA stops accepting reservations for catered and banquet events while investigating the potential for closure, the damage will be done immediately. “If I’m a bride I’m walking away from the Yacht Club right now if the board announces Yacht Club may be close,” he said.

Regardless of how the motion is

couched, Terry said it is stating to the public that the board would rather close the Yacht Club than work to make it profitable.

“You pass this motion you have irreparably damaged the image of our Yacht Club,” he said.

“We’ve lost a quarter million dollars last six months,” Clarke responded. “And you’re worried about damaging our reputation?”

relations for the course in cooperation with the OPA public relations department.

The contract appears to bolster data reporting requirements, with the understanding that all such data and reports that heretofore have been submitted to the general manager only “are accessible” by the general manager and board of directors.

The draft business plan will be reviewed by both the general manager and “designated representatives” of the board.

Components of the business plan under the contract will include golf operations, maintenance, food and beverage, sales and marketing, membership and capital improvements.

The plan is supposed to include goals and milestones that in turn will “serve as the basis” for monthly reports to the general manager and “up to three designated” representatives of the board.

In addition, the contract calls for quarterly meetings of UL executives with up to three board representatives at a time, date and place organized by the general manager.

The contract contains typical provisions to deal with default situations, on the part of either the OPA or UL. A material breach of the contract, uncured af-

ter 60 days of written notice, can result in the contract’s termination.

In the event of a default by the OPA, UL would be entitled to receive an amount equal to the total unpaid management fees that UL would have earned had the agreement remained in effect for the full three-year term.

In the event of a default by UL, the OPA would be required to pay the contractor for services up to the time of written notice of default.

There also is an early termination option in the contract that could be invoked by the OPA on June 1, 2017, or later, in the event that UL fails to meet budget projections in the prior fiscal year’s golf budget by $50,000 or more.

There is a limitation on this option, however. The OPA must have given the contractor “accurate information” about all potential OPA actions that could have an effect on course operations or budget projections.

Bridge construction on Clubhouse Drive, for instance, is cited as an example of a potential project that could have unanticipated impact, provided that the OPA had not given UL “sufficient advance notice” of such actions to allow the manager to price those impacts into the budget.

q

By ROTA L. KNOTT Contributing Writer earing a negative impact on Yacht Club catering and banquet operations, the Board of Directors in late April overwhelmingly shot down a proposal by Director Marty Clarke to have staff develop a plan for enhancing the finances of that Ocean Pines Association amenity, including possibly shutting it down during the winter months.

At the April 30 regular meeting of the board, Clarke offered a motion “that the board directs our general manager to investigate options for the improvement of the operational bottom line performance at our new Yacht Club facility. Said options should include the possibility that we close down and winterize the Yacht Club facility on or around the first week of October 2015 and nor re-commission the facility until April 2016.”

His motion further stated that ”until such time as the GM can provide a report on these options no new banquet or catered events are to be booked which may impede the implementation of the off season closing option should that option be accepted by the board. Should there be any enforceable banquet or catered event contracts currently in place the general manager shall provide to the board evidence of same.”

Clarke said the off -season performance at the Yacht Club is “unacceptable by anyone’s measurement.” The board’s fiduciary responsibility to the membership does not include providing a “gathering place” for property owners during the off-season, he said, adding that in order to have an “open for business plan” the OPA needs to have business. Instead the Yacht Club has lost $224,962 in just the last six months, he said.

The board shot down the motion in a 6-1 vote with only Clarke voting in favor.

Director Jack Collins offered a second for the motion for discussion purposes, but ultimately opposed it.

Clarke argued that his motion is not a reflection of the work of anyone. But, he said, Ocean Pines is a summer resort and as such some of its facilities may not need to be open year round, such as the Yacht Club.

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16 Ocean Pines PROGRESS Yacht Club

OCEAN PINES

May - Early June 2015

From Page 15 Terry said there are new events taking place at the Yacht Club, such as trivia nights, that can help generate additional business and improve the bottom line. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s lots of activities and lots of things that can be done,â&#x20AC;? he said.

Director Sharyn Oâ&#x20AC;&#x2122;Hare said the Yacht Club the management is doing the best it can to keep costs down and generate revenue. â&#x20AC;&#x153;Hopefully they will do better.â&#x20AC;?

Director Pat Renaud was concerned about losing staff if the Yacht Club were to close for part of the year. He said it may be challenging to find employees who are willing to work only part of the year.

Ultimately the motion failed to garner any support from the board members other than Clarke.

During the public comments section of the April 30 meeting agenda, which was held before the board discussion on the issue, several property owners spoke in opposition or favor of Clarkeâ&#x20AC;&#x2122;s motion.

Steve Lind, a member of the Clubs Advisory Committee, said he wanted to make a â&#x20AC;&#x153;pre-emptive attackâ&#x20AC;? regarding the potential closure of the Yacht Club during the winter months. â&#x20AC;&#x153;The property owners were convinced of the need to invest five and a half million dollars in a new Yacht Club facility and after less than one year of operation the board has discussed the option of

Deer run grand reopening

Deer Run Golf Course owner Ed Colbert and a crowd of fellow golfers and friends celebrated a grand reopening Ribbon Cutting and Open House April 16 at Deer Run located in Berlin on Route 50, three miles west of Route 113. Chambers of Commerce for Ocean City, Ocean Pines, and Berlin helped with the ceremony along with Worcester County Economic Director Bill Badger, Donna Hoy representing Maryland Senator Jim Mathias, Worcester County Commissioner Chip Bertino, Berlin Mayor Gee Williams, and Maryland State delegate Mary Beth Carozza. Deer Runâ&#x20AC;&#x2122;s grand reopening celebrates 17 years of operations and a press conference announcing Phase I of the new RV Park between the club house and Rt. 50. Colbert is shown holding the scissors. closing it down in the winter months.

Is that an acknowledgement that we made a bad investment? Are the property owners being told donâ&#x20AC;&#x2122;t throw good money after bad? Or is it an acknowledgement that the administration canâ&#x20AC;&#x2122;t come up with a way to make the brand new campus at least break even while serving as an amenity on a limited basis to the year-round population?â&#x20AC;? Lind asked.

He said that spending $5.5 million of property ownersâ&#x20AC;&#x2122; money on a building that is to be shuttered after a year is fiduciary failure. But the OP has shown over the years that it cannot run a multi-million dollar business at the Yacht Club, he said.

Lind encouraged the board to lease out the Yacht Club with the stipulation that it be open all year. â&#x20AC;&#x153;We have nothing to lose trying this except losses,â&#x20AC;? he

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told the board. â&#x20AC;&#x153;What youâ&#x20AC;&#x2122;re essentially asking for is a business plan. A plan for how youâ&#x20AC;&#x2122;re going to improve performance,â&#x20AC;? Bill Zawacki, a former board member and OPA president, said of Clarkeâ&#x20AC;&#x2122;s motion. â&#x20AC;&#x153;It is a motion asking the general manager to provide options, one of which would be perhaps closing it. But itâ&#x20AC;&#x2122;s not the only thing.â&#x20AC;?

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Yacht Club From Page 16 Zawacki pointed out that by August of last year the Yacht Club had collected profits of $71,000 and then following month it broke even. “From that point on we had to just start giving it back,” he said. “By March of this year so far in the hole we’ll never see the light of day.”

Zawacki said Clarke’s motion was simply to ask for a plan from the general manager. This year’s budget shows a proposed $62,000 profit from the Yacht Club.

“I don’t see how anybody can vote against wanting to know how we’re going to get from a $225,000 loss to a $62,000 profit,” Zawacki said.

Tom Janecek said he doesn’t think that closing the amenity in the off season is the solution to its financial woes.

He said he voted in opposition to building the new Yacht Club, not because one wasn’t needed but because the OPA can’t successfully operate it.

“I was against it because we don’t know how to run a Yacht Club,” he said.

Janecek said the labor and food costs for the Yacht Club are too high, in the range of 60 percent. Other restaurants do not have such high overhead costs, he said.

“Somebody needs to run it correctly,” he said.

Doris Lloyd, another former board

member and OPA president, asked the board about any plans for improvements to the second floor of the Yacht Club to make it more user friendly. “The upstairs is not very conducive for Ocean Pines residents to have a group function,” she said, adding that they “get lost” because the room is so big.

Lloyd said the OPA has worked with outside vendors to run the Yacht Club, Mariott and Canteen, and it has never worked well. “They make promises and don’t deliver,” she said.

However, she did not mention that neither Marriott nor Canteen leased the facility. They had management contracts with the OPA. Audrey Wahl, another member of the Clubs Advisory Committee, said the presence of so many property owners wanting to speak out on the Yacht Club proposal shows the level of concern about the welfare of the amenity. She said closing it in the winter is not going to have a positive effect. “It’s your responsibility as the board to support the amenity by encouraging its enjoyment and use,” she said.

Kent Waters said he has heard that the OPA received a proposal from an Ocean City restaurateur to run the Yacht Club. He encouraged the board to follow up on any such proposal.

“We need to have this thing run properly. We don’t seem to be able to do it ourselves,” he told the board.

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19

Steen announces 30-duplex subdivision

By TOM STAUSS Publisher he first new residential section in Ocean Pines since the late 1990s and early 2000s could be developed later this year if a proposed rezoning for a 30-duplex subdivision with a total of 60 housing units is approved by the Worcester County commissioners.

Ocean Pines developer Marvin Steen is proposing his 30-duplex subdivision in a small section of a 200-plus acre parcel located just south of Ocean Pines, adjoining Section 10 and accessible from within Ocean Pines by an extension of King Richard Road.

The duplexes would be arrayed in what is now open field, backing up against a forested area that would remain untouched during the development process.

There would be no direct access from Route 589 or nearby Gum Point Road, although there would be an emergency egress from the property possible by an existing dirt road that connects it to Route 589.

To accommodate the 30 duplexes,

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The proposed duplexes in a new section of Ocean Pines that would be called Triple Crown Estates, with access from an extension of King Richard Road in Section 10.

Steen needs to change the existing zoning from R-1 single family residential to R-3 multi-family residential. Back in the early 2000s, Steen had intended to develop a single-family section on the parcel, but in a recent letter to the Ocean Pines Association he said the current real estate market favors low-maintenance duplexes over larger single-family residences that he once envisioned on one-acre estate lots.

If all goes as planned, the new subdivision would become an official part of Ocean Pines, with future homeowners paying annual OPA lot assessments.

By an agreement negotiated with the OPA as part of a failed effort to develop a Northern Worcester County YMCA in 2002, every home sale in what Steen is now calling Triple Crown Estates will generate a $6,500 payment to the Ocean Pines Association.

That payment is compensation to the OPA for equivalent dwelling units (EDUs) reserved to Steen for water and wastewater treatment capacity at the county-owned Ocean Pines Wastewater Treatment Plant, EDUs that at one time had been reserved for use by the OPA. At build-out, which Steen told the Progress he hopes will happen three or four years after the first duplex is built

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Developer needs rezoning from R-1 single-family residential to R-3 multi-family residential; OPA board endorses it unanimously

20 Ocean Pines PROGRESS

OCEAN PINES

May - Early June 2015

Worcester County for approval.

The only significant caveat to the enFrom Page 19 dorsement is that the directors would and sold, the $6,500 payments will have like Steen and the county, as part of the rezoning process, to require some generated for unrestrictedCRS, useAssociate by the Broker OPA a total of $390,000, in addition sort of gated emergency egress from the Office: 410-641-5222 Cellthe 410-430-5743 existing dirt access road to to roughly $60,000 per year in new lot site• via assessment revenue. In addition, the Route 589. Steen has said he will agree future homeowners will be eligible to to that condition, which means that marleneott@remax.net purchase annual amenity memberships there will be another way for residents or to otherwise pay to use OPA ameni- to leave Ocean Pines should it be necesties, generating even more revenue for sary under major storm conditions. Un11049 Racetrack der Road, normal Ocean Pines, MD 21811 the road would conditions, the OPA. be blocked off by some sort of gate that In comments to the OPA Board of MAKE HAPPY MEMORIES HEREwould only be opened during emergency Directors during its April 30 regular Stunning custom-built 4 BR/2.5 BA home located on a quiet cul-de-sac. Home NEW LIS monthly meeting, Steen acknowledged has architectural character outside, quality upgrades & room conditions. to grow. Open inTING Rezoning proposals in the county vitingplanned floor plan w/duplexes gracious entry foyer into spacious great room with that his areflowing a change dramatic had cathedralbeen ceiling, proposed skylight & cozy fiback replace. in Screenedundergo porch plus deck a two-step approval process, from what overlook private fenced yard. Gourmet kitchen w/ large pantry,stainless steel with a pro or con recommenthe early 2000s, when his plan was appliances & bar for casual seating.

Breakfast area for + formal beginning dining room round outand all the ‘’I wants’’ .packages Spacious 1st floor master with tray dation by the Worcester County Plan60 one-acre lot home that closet, and estate slider to open 1 yr home warranty. ning Commission.

FinalAvenue approval after a would ceilings, havewalk-in generated lotdeck. assess55 Admiral $415,000 ment revenue for the OPA roughly one- public hearing is required by the county and-a half times that of non-waterfront commissioners. Before beginning road THE PRICE construction IS RIGHT on the property, and exlots.

Motiva ted Sell Will contribute $3,000 to Buyer for Allowance/closing! Much more than meets tending water and wastewater collection er the Economic conditions make sale of the eye! First level: Living rm with attached garage, huge screened rear porch on would such large lot-large home packages un-fencedlines overlooks small area with sidethe deck &property, access to 10x9 Steen storage shed.

Lg front also deck perfect for outdoor enjoyment.

Easy care landscaping.

H/P replaced in 2010.from need to obtain site plan approval feasible, Steen said.

Hot water heater in boxed in area in garage. Gutter w/gutter guards. Light color the planning commission. He hopes to Perhaps with the financial impact laminate flooring in LR & Bedrooms. Wilson flooring tiles in kitchen, all hisincounty approvals in place foremost in mind, the OPA Boarddining of areahave & laundry.

Ceramic baths. Craftsman style brick archway 20 Willow Way and woodstove to uniqueness.

Mostend. furniture conveys- See invenwelladds before year’s Directors, during its April 30 regular $205,000 TheNOW Steen rezoning proposal probamonthly meeting, unanimously tory en-list. PRICE dorsed the rezoning proposal needed to bly will have an easier time making it PICTURE PERFECT IN THE PARKE facilitate the project.

Steen Top notch Dunlin Model in the Parke 3 said BR/3 BAthat features 1stthrough level Master,the approval process because it formal living extended living room, sunroom w/2-sided fireplace.not Plus in any way increase the resiwithout the rm,board endorsement, he gasdoes with 3rd bedroom not and fulltobath on Level 2.with Hardwood/laminate floorsdensity on the parcel that has dential woulda loft have decided proceed and upgraded cabinetry. Deck and patio for outdoor enjoyment. The Parke Fees been in place since the early 2000s. submitting his Clubhouse proposed rezoning include managed w/exercise center, indoortopool &

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The planned duplexes are a change from what had been proposed in the early 2000s, when the idea was for 60 one-acre lots ...

Economic conditions make the sale of such large lot-large home packages unfeasible.

He’s proposing to change the original concept of 60 single-family residential units to 30 two-unit, or duplex, structures, a proposal that actually will use up less land than would a single-family development.

Roughly 15 acres of the total 200plus acres owned by Steen and his wife Beverly would be developed with the duplexes.

In his April 1 letter to the board, Steen said that “current market conditions are much more favorable for multi-family duplexes,” and he reminded the board of his previous experience in building duplexes in Wood Duck Isle II and Salt Grass Cove in Ocean Pines. He told the Progress that duplexes have sold well in River Run, a residential development just north of Ocean Pines.

He told the Progress that he intends to sell each duplex unit for roughly $300,000 or more, depending

on options, with roughly 2,400 square feet of square footage of living space in addition to a one-car garage.

He said at that price point new construction is salable, whereas a larger single-family home at a price of $450,000 would be far more difficult to sell in current market conditions.

What he didn’t say is that each duplex will yield roughly $600,000 in gross earnings for Steen, as opposed to $450,000 if each lot was sold with a single-family home. It would appear that Steen’s reputation as an astute businessman remains undiminished as he embarks on a rezoning change that, with the OPA board’s endorsement in hand, stands an excellent chance of making it through the approval process. He met with OPA board members individually prior to the April 30 public meeting, and that attention to detail helped produce the result he achieved at the meeting.

Director Pat Renaud’s original mo-

OCEAN PINES

May - Early June 2015Ocean Pines PROGRESS

tion called for a vote to approve Steen’s residential subdivision, but that was amended on the suggestion of Director Tom Terry to explicitly include an endorsement of the rezoning needed to accomplish Steen’s duplex development.

The approved motion calls for OPA President Dave Stevens to draft a letter to Worcester County officials endorsing the proposed rezoning.

Steen said that he came up with his idea for duplexes earlier this year. Had he not come up with the change in approach, it’s likely the Steen-owned land that adjoins Section 1 would have remained undeveloped indefinitely, he said.

Steen emphasized that he wants his 30-duplex section to become part of Ocean Pines, a concept that has been on the books since the early 2000s.

He cited the relatively recent installation of a wastewater collection line from the nearby Ocean Downs casino on Route 589 to the Ocean Pines collection system, with a portion of it running down the center of King Richard Road.

That resulted in the repaving of that side street earlier this year.

Steen’s plan, assuming he has all his county approvals in place this year, would be to build about ten duplexes per year, building when the units are presold. Depending on economic conditions, he hopes to complete build-out in three or four years.

King Richard Road access to property

The site plan of the proposed 30-duplex subdivision planned for South Ocean Pines, with access from King Richard Road in Section 10.

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22 Ocean Pines PROGRESS

May - Early June 2015

OCEAN PINES

Three candidates announce for OPA board Trendic, Herrick, Unger are first to file in this summer’s election

By TOM STAUSS Publisher s the May 11 filing deadline for this summer’s Board of Directors election fast approaches, three Ocean Pines property owners have already filed candidacy papers indicating their intent to seek one of the two board seats to be contested this summer.

The three announced candidates are Slobodan Trendic, Tom Herrick and Ray Unger. Trendic, a retired information technology executive with 28 years of experience in business development, was an announced candidate last summer who pulled out at the last minute, in order to improve the electoral chances of Dave Stevens and Pat Renaud, both of whom won decisively.

Herrick, a retired 30-year veteran of the New York State Police, spent the last nine years of his career as an investigator with the Violent Felony Warrant Squad in Brentwood, N.Y., assigned to the United States Marshall Service’s regional fugitive task force responsible for locating and arresting people wanted for violent felony crimes or who violated parole or probation having been convicted of those crimes.

He previously served as an investigator with the narcotics enforcement unit

A

Trendic

Herrick

in Long Island, N.Y., and as an investigator with the Bureau of Criminal Investigation in Riverhead, N.Y. Since retiring to Ocean Pines in 2009, he has been an avid sportsman, a member of the Ocean Pines golf and racquet sport clubs, including the vice-presidency of the platform tennis group.

Unger is a two-term former director whose effort at a comeback last year didn’t turn out well. He also lost in the Republican primary to succeed Judy Boggs as the Worcester County commissioner representing District 5.

Unless there is an 11th hour change of mind, neither Marty Clarke nor Sharyn O’Hare, whose three-year terms expire this year, will be seeking reelection to the board. Since both are consid-

Unger

Clarke

ered card-carrying members of competing board factions – Clarke is a consistent critic of OPA General Manager Bob Thompson while O’Hare is a consistent supporter/cheerleader – their voluntary retirements would seem to leave the ideological divide on the board more or less in place.

At least until the election results are announced at the annual meeting of the OPA, and that also assumes that the ideological divide on the board is real and not illusory. There is little evidence that Clarke is part of a four-person majority that some thought had resulted from last summer’s election: Clarke, Stevens, Pat Renaud and Jack Collins.

In recent months, it’s seemed as though Clarke was a faction of one, and

his frustration at being unable to bring his allies along, on such hot button issues as the contentious five-year-plan funding stream, at times has reached the point of combustion. While the four closed ranks over the recent decision to hire a new management company at the Ocean Pines golf course, that sort of cohesion has been more the exception than the rule since last fall.

He told his three erstwhile allies that if they didn’t support his call to defund the five-year-plan funding as part of the Fiscal 2015-16 budget – the fiveyear plan is now in its sixth year, but with a new placeholder name, legacy fund, courtesy of Stevens – he wouldn’t run for reelection.

They didn’t and he isn’t, absent some sort of miraculous conversion event on the last weekend prior to the filing deadline.

Last summer, Stevens and Renaud ran on a joint ticket calling for a change in direction, particularly a curb on what was regarded as Thompson’s dominant role in OPA affairs and the board’s acquiescence in that under the guise of letting the manager manage with the board providing guidance when needed. After the smoke cleared from the election, the two successful candidates

OCEAN PINES into reserves.

The decision not to seek reelection has opened up a seat that otherwise might not be readily available. One of the three candidates running for the board, Trendic, is running as someone who seems to consider himself a natural successor to Clarke.

Clarke has made no secret of the fact that he will be backing Trendic’s candidacy. They do agree on a lot.

Trendic burst on the Ocean Pines political scene more than a year ago when he penned a guest commentary in the Progress critical of the new three-year employment contract that the then board of directors gave to Thompson, well above the compensation that other chief executives of governmental or quasi-governmental organizations earn on the Lower Eastern Shore.

A 28-year veteran of the information technology industry as an executive involved in business development, Trendic also addressed the board urging the directors and Thompson to move ahead on technological upgrades to Ocean Pines aging IT infrastructure. Not much has happened on that front since he made those remarks and he said he’s going to renew his efforts to bring the OPA technology into the 21st century.

Note to staff: He’s an advocate of outsourcing when certain functions can be performed better and more cheaply by outside companies.

The Thompson employment package probably played a role in the defeat of the two incumbents who sought reelec-

tion to the board last summer. Trendic at the time received a lot of positive feedback on the commentary but also a lot of disappointment on the part of his supporters for his decision to withdraw from the contest.

Because Trendic had thrown his hat in the ring well after Stevens and Renaud, supporters of all three candidates felt Trendic as the late-comer was the one who should bow out of the race. He agreed, reluctantly.

But he’s determined to stay in the race this year and serve on the board if property owners vote him into office.

Trendic recently conceded that he has kept a low profile since his arriving on the scene more than a year ago.

“It was not for a lack of interest,” he said in an email to the Progress. “My wife and I decided to start remodeling our modest little home. Being that I am somewhat handy and a hands-on kind of a guy, working on my house has kept me busy since last fall. Also, my wife had a serious back problem and had to have surgery, a multilevel fusion procedure. A lot of my time was spent caring for and helping her with the recovery process.”

Trendic said he decided to run this year in part out of disappointment with what the new board has accomplished or not accomplished this past year.

“Many of us were anxious to see what the so called ‘new board majority’ would do,” he said of the Stevens-Collins-Renaud-Clarke alliance. “While we saw progress on few issues, I feel the board disappointed in other key areas. This

had a direct impact on every homeowner in our community.”

He cited the board’s approval of the 2015-16 budget as an example of where the new board has fallen short.

“I would have voted against it,” he said. “I am not a fan of raising HOA dues. We need to improve OPA’s efficiency and how we manage our financial resources. Raising annual dues or amenity fees is not what I would call creative management or good leadership.”

He said he also decided to run “because our community needs a candidate who is capable and willing to play a role of an objective representative and be their loyal advocate. This was the role Mr. Clarke played selflessly for several years. If elected, my leadership skills, my diverse experience and my management style will enable me to play this important role on behalf of all homeowners (full- and part-timers).”

He said his leadership is based on key principles: applying “best practice” every time it is determined to be a right solution to a common problem and promoting innovation.

“I spent 28 years with IT industry leaders (Digital, Indra, Oracle and SAP).

This has enabled me to experience firsthand outsourcing and cloud computing phenomena and witness tremendous innovation,” he said.

He said his first objective as a board member would be to “focus on improving how our community is being managed on a day-to-day basis. We continue to

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joined with carry-over directors Collins and Clarke to elect Stevens OPA president, with every other member of the coalition assuming corporate titles ranging from vice-president (Clarke), to treasurer (Collins) and secretary (Renaud).

Directors Tom Terry, Bill Cordwell and O’Hare weren’t pleased by the results – two incumbents they favored lost to Stevens and Renaud – and they opted out of the opportunity to continue as OPA officers. In the ensuing months, Terry has courted Renaud and the two have been quite chummy, even joining together to forge a budget compromise that for the most part kept the controversial five-year-plan funding of $1.1 million flowing into OPA’s major maintenance and replacement reserve.

Clarke believes that the OPA is over-funding its reserves by substantial amounts, an opinion it would appear other directors do not share, at least not to the same extent as he does. Clarke also has been on record as advocating leasing out the Ocean Pines Yacht Club or closing it down shortly after Labor Day to preserve summertime surpluses.

On that he’s been alone, as well.

If Clarke had opted for reelection, he believes he would have been easily reelected because a majority of property owners agree with his positions. But he told the Progress that he won’t run for reelection because it would violate his promise to his colleagues not to seek reelection if they opposed his plan to reduce OPA assessments by $50 or $60 or even more by reducing the dollars going

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OCEAN PINES

May - Early June 2015

Board candidates From Page 23

underperform in some areas.”

He said he “would start by outsourcing parts of OPA operation that do not require in-house ownership. Many third party service companies can perform certain work better, cheaper and faster.

There are many communities around the country doing this successfully. We need to learn from their experience, identify successful examples and apply similar solutions.”

His second objective “would be to fast track work on a ‘comprehensive planning’ initiative and capital improvement plan (CIP). The fact that it has taken this long and we are still working on them is another example of our management and leadership underperforming,” Trendic said.

He strongly endorsed Clark’s attempt to defund the so-called five-yearplan by diverting some of it to reduce certain reserve funds that were chronically in deficit and to give some of it back to property owners in the form of lower assessments.

“I share Mr. Clarke’s view on this subject. It is very difficult to place legitimacy on any long-term funding when the most important source of information is missing, the comprehensive planning document and the CIP. We also need to take into account the importance of a reserve study,” another idea pushed by Clarke, along with Stevens and Collins

‘I share Mr. Clarke’s view on this subject. It is very difficult to place legitimacy on any long-term funding when the most important source of information is missing, the comprehensive planning document and the CIP.’

would book a tee time in person at the pro shop or over the phone.

“If anyone gets a lower rate than anyone else, then it should be our own people, not outsiders,” he said.

Herrick said something similar has occurred with platform tennis, in which prospective members were given a free 30-day membership including free in—Slobodan Trendic struction from club members to learn in particular, Trendic said.

Herrick comes across as a passionate the sport.

Recently, he said, the free 30-day With respect to Thompson’s perfor- advocate of amenities in Ocean Pines mance as general manager, he said he who nonetheless is a critic of the way membership has been eliminated by OPA management, which then imposed respected him and “anyone else who they’re managed. steps up to do this challenging job.” But He said he’s seen up close how some a $15 per hour lesson rate on those he said his view on Thompson and his policies of the OPA discourage amenity learning the sport.

“Our club members are willing to compensation package “has not changed use by property owners and residents much” from what he wrote in his Prog- and drive them to other venues. He said give free lessons,” he said, “as a way to ress commentary last year. he plays golf with a group that used to encourage people to learn the sport and He said controversy around Yacht play the Ocean Pines course exclusive- then sign up as dues-paying annual Club performance continues, drainage ly but now takes advantage of the large members.

If elected, Herrick said he would work problems still have not been effective- number of competing courses in the to help the OPA “do better” in trying to ly addressed, ditches are still neglected area. and “the appearance of the North Gate “They all had bad experiences in encourage more use of the amenities entrance leaves a sad impression on Ocean Pines,” he said, expressing hope and better policies.

“I will be an advocate for policies that first-time visitors as well as the commu- that the new Ocean Pines golf course nity itself and so on.” management company, Landscapes Un- don’t discourage use,” he said.

Since his unsuccessful candidacies But he said that is just his opinion limited, will figure out ways to bring and what really matters “is to know how disaffected golfers back into Ocean last year, Unger has been serving as our homeowners feel about the gener- Pines as members or at least as fre- president of the Ocean City Aviation Association. He told a local weekly recently al manager’s job performance. This is quent players. what each board member should seek He also said that as an Ocean Pines that he was running again for the board out to learn. I certainly would.” golfer he became incensed when certain because he absolutely loved the experiTrendic said he would also be willing on-line tee time vendors sold tee times ence and has been a “little bored” since to explore outsourcing Yacht Club oper- on the Ocean Pines course for $17 or $18 his service ended.

If elected, he said he would serve as ations through leasing if the amenity a round, when Ocean Pines residents continues to produce large operating and property owners were charged sub- a bridge between competing factions on thetype_Layout board. 1 2/3/15 1:22 PM Page 1 deficits.

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25

Stevens, other directors defend Search Committee Clarke says group that seeks out board candidates ‘call who they want to call’

By ROTA L. KNOTT Contributing Writer laiming that it is a valuable part of the annual Ocean Pines Association election process, members of the board of directors defended the Search Committee during an April 30 meeting. The committee’s sole purpose is to solicit candidates to run for the OPA’s governing body.

In an April commentary, the Progress questioned the need for the Search Committee, which is appointed each year for a few months of work asking property owners if they will do battle for one of the open board seats.

Dave Stevens, during the president’s comments section of the meeting agenda, took issue with the commentary calling for abolition of the Search Committee.

He said “everybody’s entitled to their opinion” but added that he disagrees.

He was particularly adamant that the OPA has a strong Search Committee in place now that is working diligently to find candidates for the 2015 election cycle. He said the OPA has a committee with “very capable volunteers in place” and trying to do their job.

“The author made it clear enough that he was not criticizing our committee. However, reading in the press that the job you are doing is worthless is discouraging,” Stevens said.

He pointed out that the OPA’s bylaws require the appointment of a committee with the charge of finding candidates to run for the board, and the committee members must be appointed by February of each year.

In order to eliminate that requirement, Ocean Pines property owners would have to vote in favor of changing the bylaws via a referendum. In the absence of such a measure, Stevens said the association has to follow the existing bylaws.

“Even if no search committee in the entire history of Ocean Pines ever pro-

C

duced a single candidate, they would still have a great value as an open and proactive process for encouraging members to participate in governance of the association,” Stevens said, adding that speaks very highly of the entire community. He said the current Search Committee is a very good example of just that.

At least two sitting directors were specifically recruited to file for the board by the Search Committee.

Director Jack Collins said if it was not for the persistence of a committee member he may never have considered seeking a seat on the OPA’s governing body. “If it wasn’t for her, I wouldn’t have run,” he said, adding that “She was very proactive, knowledgeable.”

Collins said he believes that the information and feedback of the Search Committee to potential candidates is very valuable. “I think it’s a good committee.”

Stevens said the committee met just the night before the OPA board meeting and discussed the status of the search for individuals to run for the board. He said so far the committee only has one person that may file for election this year.

“However, if that one person decides to run it was well worth it,” he said.

As of the board meeting, there were actually three candidates who had filed for the two board vacancies to be contested this summer – Slobodan Trendic, Tom Herrick and Ray Unger. The Progress has learned that none was inspired to run by contact from Search Committee members.

Director Sharyn O’Hare said the committee has been working extremely hard to find candidates. She called the Progress commentary “disingenuous for failing to recognize its efforts.”

Director Tom Terry said he too decided to run for the board after being encouraged to do so by the Search Committee. “I thoroughly disagree with that

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article,” he said.

“Now you‘re making me feel bad because nobody ever called me,” Stevens joked.

“Or me,” said Director Marty Clarke, who added “they call who they want to call.”

Clarke also noted that Roland Langevin, a candidate who ran two summers ago as a determined critic of the OPA administration, also was not someone who had been contacted by the Search Committee.

The committee is seeking a minimum of two candidates to run for the board in the 2015 election. To be eligible a candidate must be the owner of record of property in Ocean Pines as of Jan. 1, 2015, eligible to vote as of May 15 and have completed and submitted an application to the Search Committee or Administration Office by 5 p.m. on Monday, May 11.

The filing deadline was extended by one day this year because May 10, the day they are typically due, falls on a Sunday and the administrative office will be closed. An application is available at www.oceanpines.org, from any Search Committee member or the OPA Administration Office at 239 Ocean Parkway.

Little more than a year ago the board approved resolution M-09 establishing guidelines for the Search Committee. At that time directors were concerned that since the Search Committee is required to hold meetings that are open to the public, the names of property owners who are being solicited to run for the board or who have expressed interest in doing so would be mentioned during those meetings, before anyone officially becomes a candidate.

Prior to that, there was not a resolution that specifically outlined the responsibilities of the Search Committee, which replaced the OPA’s old Nominating Committee. While the Nominating Committee was charged with actually vetting candidates and recommending a slate, the Search Committee does not have that responsibility. Any property owner can file for election; the Search Committee’s job is to encourage property owners to do so.

The Search Committee holds meetings for anyone interested in running for the board and reviews topics like the purpose of the Search Committee, qualifications for candidates, responsibilities of OPA board members, and public input about finding interested candidates.

OPA to hire new agency to improve collections

By ROTA L. KNOTT Contributing Writer ore than $1.15 million in accounts receivable were outstanding from Ocean Pines Association members, including delinquent assessments, interest and other charges, as of Jan. 31, 2015. That amount was up by 22 percent, or $204,906, from the prior year figure of $951,018.

M

During an April 30 review of the overall status of delinquent assessments and collection results, General Manager Bob Thompson summarized information regarding the outstanding receivables. A committee, consisting of the treasurer, the general manager, the controller, the assessment supervisor, and a member of the Budget and Finance Advisory ComTo Page 28

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OCEAN PINES

May - Early June 2015

Collections From Page 25

mittee, is established to annually review all delinquent accounts by March 1. The committee determines what additional steps should be taken to gain compliance, provides an update on the overall assessment status, and makes recommendations to improve, or change, the OPA’s collection policies.

Thompson said one of the ways the committee is considering prompting payment by delinquent property owners is to engage a collections company that will report out their information to the credit bureaus. “It’s our intent to record the delinquents on the individual member’s credit report,” he said.

Sending accounts to collections is simply a “last ditch effort” to collect back dues and fees, he said, conceding that a local collection agency with which the OPA has been working has not been terribly effective.

“We have not had the level of success we had hoped for with the local collection agency,” he said. As a result the OPA is negotiating with national agencies to determine what services they can provide for collections and at what fee level. The review committee agreed that seeking alternative collection agency engagement was a good idea given the limited results obtained by the OPA’s current collections provider.

Thompson said allowing reporting of delinquent accounts on a member’s credit report will be brought to the board for a policy decision. He noted, however, that whenever the OPA places a lien on a property that is already recorded on the owner’s credit report.

Director Jack Collins said that he is concerned about doing so and that the OPA will have to be very careful. “You open yourself to some serious criticism and lawsuits if you don’t do it properly,” he said.

OPA President Dave Stevens asked if taking that extra step will help the OPA collect money from its delinquent owners. “Or is it simply punishing the people?”

Thompson said every year the OPA adds to its collection efforts and this would just be a next step in that process. “It really doesn’t cost us anything,” he said, adding that the collection agency will collect the funds, levy a fee that is paid by the account holders, and make reports to the credit agencies.

“We’re kind of out at that point.”

Director Sharyn O’Hare said it may prompt members to pay up and clean up their credit. If someone is trying to make a major purchase or otherwise obtain credit, the delinquency will show up on their report.

Thompson told the Board of Directors that the actual number of members whose accounts are currently de-

linquent is almost identical to the last year, with 363 owing funds to the OPA versus 366 a year ago.

Of the$1.55 million outstanding amount due, the actual assessment receivables, excluding interest and other charges, is $796,136 versus $689,822 for 2014, an increase of $106,314, or 15 percent. Current year total receivables are $335,740, down one percent from the 2014 figure of $339,481, with a decrease of $3,737.

Current year assessment receivables, excluding interest and other charges, were $295,667 versus $298,373 for the prior year, and represent 3.5 percent of the current year billed assessments of $8.39 million. A total of $359,788, or 31 percent of the 2014 receivable amount, represents interest, fees and other charges, an increase of $98,592 over the prior year.

For fiscal year 2015-2016, $5.2 million, or 62 percent of this year’s billed assessments of $8.39 million were paid prior to May 1, which is the beginning of the fiscal year. The number of OPA members with whom the OPA entered into payment plans in 2014 declined sharply to 185 as compared to previous year of 250. However, the number of members currently prepaying their property assessments increased to 189 from 169 last year.

Additional collections during the next several months will result in a

lower percent of account being outstanding at the April 30 end of the fiscal year, Thompson said.

“We have a series of processes that are in place,” he told the board regarding collection efforts, and said the OPA is considering taking additional steps that will encourage property owners who are in arrears to fork over what they owe.

This committee year’s review process did not focus on specific individual accounts, but rather the association’s overall collection process and effectiveness and the status of delinquent accounts as of Jan. 31, 2015.

Thompson said one area of discussion was the motion recently adopted by the board regarding initiating legal action against members owing $5,000 or more. He said the committee discussed a number of issues, questions and concerns.

For example, small claims court action in Worcester County is restricted to those members residing in the county. For members residing elsewhere, legal action would be required in their county of residence. For amounts owed in excess of $5,000, exclusive of certain charges, an attorney is required to represent the association.

The costs of filing a claim will depend on whether the debtor contests the action. If the legal action is successful, the court will enter a judgment

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OCEAN PINES against the debtor, but will take no action regarding collection. Following receipt of the court order, the association bears the responsibility for all actions to collect the debt, including attaching assets or garnishing the wages of the debtor. Collection actions will involve multiple steps, including searching for possible employers and serving them with papers, and searching for debtor financial information. Costs incurred in each case will vary widely and the cases pursued under this category have not seen positive results.

“The results were not good,” Thompson said of the OPA’s efforts to collect delinquent assessments and fees from property owners owing more than $5,000.

The committee also discussed initiating legal action against those property owners owing less than $5,000.

“The response has been better from the membership,” Thompson said versus those who owe more than $5,000.

Because an attorney would not be required, the process is less costly, as the association’s assessment supervisor can carry out the necessary tasks.

Legal actions initiated have been for those accounts selected after a review by the assessment supervisor.

Thompson said debtor objections have been less than for those owing more than $5,000. The objection or challenge to legal action has been less

May - Early June 2015Ocean Pines PROGRESS

than .03 percent or 2 out of 73 cases.

He said the results of this action have been favorable with nearly 50 percent of first 20 cases that have completed the process have been collected. This represents $30,991.00 is recouped funds. An additional 53 cases are currently going through this process.

Other considerations include the initiation of foreclosure proceedings on the properties of those members whose accounts are delinquent more than one year and who are not currently involved in either bankruptcy or foreclosure proceedings.

Foreclosures are turned over to legal counsel to initiate proceedings on those accounts with the highest amounts owed. Thompson said the OPA limits the number involved in the process at any given time to a reasonable number, in consideration of the time and cost involved. Members who have entered into a payment plan with the Association and are satisfactorily complying will be excluded from such action.

Director Marty Clarke said the OPA is beginning to have “some huge write off ” for foreclosures over which it has no control. “Banks finally realized people aren’t going to pay them,” he said.

Thompson concurred and said the OPA had budgeted for about $68,000 in write-offs this but it is likely to actually be closer to $190,000 to $210,000.

29

New boat ramp opens in White Horse Park

By TOM STAUSS Publisher he new $255,000 boat ramp in White Horse Park opened without incident on the weekend of May 2 and 3, one long-awaited project that finally can be checked off Ocean Pines Association’s to-do list. It represents a major accomplishment for the OPA’s Marine Activities Advisory Committee, which has considered it a priority for quite some time.

The new boat ramp overhauls and replaces the old complex, located in White Horse Park but accessible from a road off Beauchamp Road, Ocean Pines northern boundary. The project included the replacement of the two old boat ramps with new ones, replacement of three existing piers with one new pier and a temporary berthing dock for boats waiting to use the ramps. The project also included installation of a new vinyl bulkhead and the construction of a concrete pier with a gangway and floating dock.

Fisher Marine Construction was awarded the construction contract in a special board meeting back on Nov.

T

3. The company completed the project as expected within the deadline in the hopes of a spring opening.

OPA General Manager Bob Thompson’s April 30 written report to the board had May 15 as the date for when the boat ramp would be open for use, but during the April 30 meeting of the Board of Directors he announced that the ramp would be “fully open” the following weekend. It was.

The project was not without a bit of controversy, at the board level, with Director Marty Clarke last year objecting to the Fisher contract on grounds that, after issuance of a request for proposals, only one bid was obtained for the work. The $255,000 bid from Fisher was $5,000 over budget, not substantial enough to even generate any board discussion at the time.

Other directors for the most part didn’t object to what Clarke had called another example of sole-sourcing. The 4-1-1 vote approving the Fisher contract had OPA President Dave Stevens and directors Tom Terry, Bill Cordwell and Pat Renaud in favor, with Jack To Page 31

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Collins abstaining and Clarke in opposition. Director Sharyn O’Hare was absent from the meeting but would have voted in favor of the motion of approval, offered by Terry.

The project was one that exposed continuing tensions between Thompson and certain members of the board – most notably Clarke and Stevens and to a lesser extent Collins – over the timeliness of projects undertaken by Thompson.

Clarke said the RFP should have been sent out much sooner than it was, which would have given more contractors an opportunity to plan for and bid on the project. Stevens agreed, but his pique with the process was not acute enough to cause him to vote against the awarding of the contract.

Thompson said that the only lesson to be learned from the process used is in how the board wants to handle situations where only one bid is received for work. In the future, if only one bid is received, the OPA will not open it until the board of directors has been notified of the situation, Thompson said.

Clarke said his problem with the project is the timing, and he asked why the OPA waited until September to post the RFP when the board had approved

May - Early June 2015Ocean Pines PROGRESS moving forward with the project earlier in the year.

Thompson responded that the OPA applied for and received the required permits before putting out the RFP and that took almost a year.

Clarke said saying this can be used as a learning process is untrue because “clearly we don’t learn.” He cited similar situations with golf drainage and swimming pool projects where the board was pressured to quickly award a bid to a specific contractor. In both of those cases he said the work was completed behind schedule.

“We’re never going to get multiple bids until we put our foot down,” he said. He added that as long as the board keeps approving sole source, single bids “we’re never going to get a second bid.”

Terry argued that as long as contractors are showing up for pre-bid meetings, that shows interest in the OPA’s projects, at least initially. But if just one contractor shows up for those meetings “that’s when flags go up,” he said, adding, “I don’t think there was anything egregious that happened here at all.”

Clarke responded that there are other contractors who didn’t attend the pre-bid meeting because they would have had less than a month to complete the requirements of an 82-page RFP on the project. “It was outrageous. I wouldn’t have bid it,” he said.

Green team

County Officials recently recognize Bill Killinger, chair of the Green Team at the Community Church at Ocean Pines, with the Green Community Leader award during an Ocean City Hotel-Motel-Restaurant Association dinner meeting. Pictured are Worcester County Commissioner Joe Mitrecic (from left), Killinger, Deb Travers of Comcast Spotlight and Tourism Director Lisa Challenger.

Collins said he was concerned about only having one bidder for the work when the OPA’s procedure is to get three competitive bids. “That’s my problem with it.”

Cordwell said if the OPA keeps waiting for other contractors to decide to bid, it will never get anything done.

“Everybody had the opportunity to put in a bid and only one did,” he said, adding that the OPA cannot force contrac-

tors to submit bids.

He said that Fisher Marine has done work for the OPA in the past, including its annual bulkhead replacement program, and has performed well.

Clarke agreed that Fisher Marine is a good contractor, and he doesn’t have a problem with that particular company doing the work. Rather, his concern is the process that led to only receiving a single bid.

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32 Ocean Pines PROGRESS

OCEAN PINES

May - Early June 2015

Board votes on revised investment policy Final adoption unlikely with three directors already opposed to any easing of OPA’s conservative investing practices

By TOM STAUSS Publisher t’s déjà vu all over again.

Although a revised investment policy resolution narrowly passed the Board of Directors on first reading in late April – the vote was 4-3 in favor -- it could be tough sledding ahead for a proposed revised resolution that would change, albeit modestly, the Ocean Pines Association’s very conservative policy of investing its reserve funds in government-backed securities only.

On behalf of the Budget and Finance Advisory Committee, to which he is board liaison, OPA Director and Treasurer Jack Collins introduced for first reading, at the board’s April 30 monthly meeting, a proposed change in Board Resolution F-01. The resolution governs the OPA investment policy and has been on the committee’s agenda for years, with very little to show for the time and energy expended. A similar change in F-01 was adopted on first reading by

I

the board of directors in November of 2013, only to be pulled for consideration a month later when a board majority, including chief critic Marty Clarke, strenuously objected. The matter hasn’t been addressed formally at the board level since then.

Its chief architect and supporter is committee member Gene Ringsdorf, who so far has been unable to convince a majority of OPA directors that even a modest easing in the OPA’s investment policy is warranted. If Collin’s introduction of a revised F-01 shows anything, it’s that Ringsdorf is doggedly persistent.

Although Collins voted with the 4-3 majority to pass the proposed change in F-01 on first reading, it almost seemed as if he was doing so as a courtesy to the committee and Ringsdorf. After the meeting, he told the Progress he was not at all sure he in the end will be able to vote for any change in policy that would allow the OPA to invest in anything but low yielding investments backed by the

federal government. Those generally are certificates of deposits, CDs, or Certificates of Deposit Account Registry Services, known as CDARs for short.

The proposed F-01 introduced by Collins on behalf of the committee doesn’t explicitly address the types of securities in which the OPA would be allowed to invest. It doesn’t even modify the resolution’s current language that sets out “capital preservation” as the primary goal of the OPA’s investment policy. It adds “preservation of purchasing power” as a secondary investment goal, code for allowing higher yielding investments that won’t necessarily be government-backed securities such as CDs or CDARs. In addition to the language change pertaining to a secondary investment goal for OPA reserve funds that are held for longer periods of time, the proposed revised F-01 would establish a procedure for a quarterly performance review of the OPA’s investment portfolio by the OPA treasurer, OPA management (presumably OPA General Manager and Controller Art Carmine).

The revised F-01 also calls for an investment policy statement to be developed by the budget and finance commit-

tee that would specify allowable fund investments, subject to board approval, that would be recommended by an investment advisory professional. These investments would include investments “other than those guaranteed by the U.S. government,” according to a summary provided to the board by Collins.

No doubt aware that the proposed revision of F-01 as drafted would face resistance from a board majority, OPA Director Tom Terry suggested a revision to the motion of approval offered by Collins. Terry said that his amended motion would allow a sub-committee of board members to work collaboratively with the Budget and Finance Committee to work out yet another revision of F-01 that might be able to attract the votes of a board majority when it is presented for second reading. Although Terry didn’t mention it, it’s possible that the “collaborative effort” might also include development of a specific investment policy statement that could be presented to the board along with a revised F-01 on second reading.

Collins accepted Terry’s amendment, and it passed 4-3, with Collins, Terry, Pat Renaud and Sharyn O’Hare voting in favor. Opposed were Clarke, OPA Pres-

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ident Dave Stevens and Director Bill Cordwell, the latter of whom was serving as OPA treasurer when amending F-01 was last considered by the board in November and December of 2013.

Stevens said he wouldn’t accept any change in investment policy that sets forth the primary and only goal of capital preservation.

“We should stick with what we have,” he said.

Clarke echoed Stevens’ opposition, adding that as presented by Collins the proposed revision in F-01 did not include a proposed investment policy statement or a list of potential investments that might be included under it.

He said he couldn’t support the motion as presented by Collins or amended by Terry “because I don’t know what they (committee members) want to invest in.”

After Terry reiterated that a solution to the apparent impasse might be achievable through collaboration with the finance committee, O’Hare called the amended motion “a good start.”

Cordwell countered by describing himself as a very conservative investor who was even more conservative “with other people’s money.” He said he didn’t have a problem with the proposed F-01 revision on first reading – he voted against it anyway, in the end – but that it would “need significant change” before he could

vote for it on second and final reading.

Stevens then appeared to cast himself in solid opposition to any work product that might be produced by a collaborative effort.

“A second or third reading won’t change my mind,” he said.

Ringsdorf, watching board discussion from the audience, was invited to address the board after Stevens initially resisted the idea of suspending regular order to allow it. Ringsdorf, reacting to a comment during board discussion regarding the possible hiring of a professional asset manager to advise the OPA, said that would only be necessary for investments other than those that might not be U.S.-government backed.

“We (would not need) a financial manager if the goal is (only) to protect asset value,” he said, clarifying that professional help would only be needed if the secondary goal of preserving purchasing power was added to the policy. He also said that the current F-01 refers to an investment advisor and that if the board decides not to adopt a secondary goal of preserving purchasing power, any reference to a professional investment advisor should be stripped from F-01.

On that more nuanced point, the directors seemed to agree.

Whether the current iteration of a revised F-01 will ultimately fare any better than the one debated in November

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At the annual Kiwanis Italian dinner May 3, held at DeNovo’s Tratorria in Ocean Pines, guests savored a traditional Spaghetti and Meatballs dinner and, at the same time, helped to fund scholarships awarded annually by the Kiwanis Club to local deserving graduating senior students. The event was co-chaired

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In December of 2013, Cordwell, then OPA treasurer, pulled a draft resolution F-01 from consideration and a vote on second reading approval. He offered little explanation at the time, saying it would be sent back to committee for a partial rewrite.

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OCEAN PINES

May - Early June 2015

OPA FINANCES

OPA’s misses budget by $42,000 in March

By TOM STAUSS Publisher he Ocean Pines Association in March recorded a negative operating variance to budget of $41,568, an improvement over the previous month’s negative variance of $58,869.

For the fiscal year through 11 months, the OPA has accumulated a negative variance to budget of $104,159, building on the cumulative negative variance of $62,847 at the end of February.

For most of the earlier months, the OPA had recorded positive variances.

The OPA remains in the black cumulatively for the fiscal year, in the amount of $543,922.

For March, the actual loss was $653,838, a sharp increase from February’s $544,917 in red ink.

In the most recent year-end forecast, OPA General Manager Bob Thompson predicted a modest actual deficit for the year of $24,492, compared to the budgeted surplus of $198,301.

To meet that forecast, losses in April,

T

the final month of the fiscal year, would have to come in at roughly $520,000.

According to Controller Art Carmine’s March financial report, the $41,568 negative variance to budget was produced by revenues under budget by $7,504 and expenses that exceeded budget by $34,064.

For the year through March, revenues are over budget by $159,024 while expenses exceeded budget by $263,182.

New capital expenditures, those funded from the annual assessment rather than reserve funds, are over budget by a mere $257.

All major amenity departments lost money in March, but those losses were expected and generally budgeted for.

As it did in January and February, the Yacht Club led the pack as the amenity department that missed its budget by the most significant margin.

The negative variance to budget was $11,986, and its actual loss for the month was $36,217. Still, that was an improvement over February, when the Yacht Club recorded a $46,692 actual loss.

Through the end of March, the Yacht Club is $153,673 in the red with a $124,222 negative variance to budget.

There were some bright spots in the Yacht Club financial performance in March. Gross revenues of $59,025 exceeded budget by a large margin,

$36,685, driven by robust regular food and beverage business.

After subtracting cost of sales, net revenues were $37,818, and that beat the budget forecast by $23,202.

But management continues to be unable to control costs at the facility in a way that will satisfy critics. Total expenses of $74,035 were $35,188 over budget, with wages/benefits, services/ supplies and utility expense not coming anywhere close to budget.

The Yacht Club is budgeted to break even this year, a goal that would appear to be unachievable with only April remaining to affect year-end results.

In a year-end forecast delivered in late February, Thompson predicted a $76,513 loss for the year.

If April’s losses are the same as those recorded in March, then the actual loss for the year will come in at roughly $190,000.

Golf operations in March lost $49,496, a slight improvement over February’s loss of $53,389 but much better than January’s $70,596 loss.

The results continued a pattern of most of the year in which this amenity beat its budget for the month.

The $11,317 positive variance for the month is not matched by year-to-date numbers, however.

Because of the three consecutive months of substantial losses, golf opera-

Net Operating by OPA department, March1 through March 31, 2015

tions have slipped deep into deficit territory for the year.

The cumulative loss for the year is $146,198 and the negative variance to budget for the year is $13,913.

Much hinges on April, where the numbers are at the mercy of weather conditions. Last April, golf operations lost about $15,000.

A reasonable forecast for the year would have golf losing about $160,000, assuming that this April comes in close to last year’s numbers. But that presupposes a good April for bookings and cooperative weather.

April bookings this year are more than 500 fewer than a year ago and likely will affect golf financial results for the month.

Issued prior to the decision to replace Billy Casper Golf with Landscapes Unlimited, Thompson’s most recent end-ofyear forecast had golfing losing roughly $90,000 for the year, which would require an April yielding a $56,000 surplus or more.

With the change in management, Thompson more recently has backpedaled from that rosy forecast.

But it never was realistic, if past performance in April is any indicator.

One notable line item buried in the golf financial summary: Golf course maintenance expenses have come in significantly less than budgeted in recent months.

In March, for instance, the actual maintenance expense is shown as $7,136, compared to the budgeted $39,179.

For the year through March, maintenance expenses are shown as $237,160, against the budgeted $312,113, a $74,953 differential to the good.

Normally that would count as good news, but some OPA directors recently have wondered how a monthly budget could be so dramatically out of synch with actual performance.

They have speculated whether certain golf course maintenance expenses have been purposely delayed until the warmer months.

For instance, May of last year was a particularly bad one on the financial front, digging a hole relative to budget that subsequent months have only partially offset.

Delaying certain expenses could have the result of making this year’s actual results look better than they would otherwise.

Landscapes Unlimited, which took over the course operations May 1, could be facing some unexpected expenses related to keeping the course in optimum condition. So far in the early season, though, the course seems to be in great shape.

In other budget results for March, aquatics lost $29,618 for the month

q

Yacht Club, golf losses push negative variance to budget for the year so far above $100,000

OCEAN PINES

May - Early June 2015Ocean Pines PROGRESS

35

OPA reserves drop to $4.06 million in March

By TOM STAUSS Publisher he reserve summary released as part of the March financial report shows that the Ocean Pines Association’s allocated reserve balance dropped to $4,064,822, a sharp decline from Feb. 28, when the balance stood at $4,306,867.

The reserve balance was $4,398,600 in January, $4,483,293 in December, $4,699,394 in November, $4,871,868 in October, $5,128,136 in September, $5,178,302 in August, $5,519,149 in July, $5,786,683 in June, and $6,003,165 in May of last year.

The erosion is typical as the OPA makes expenditures from the reserves through the year.

The May reserve summary reflects the annual contribution from assessments that traditionally is recorded in

the first month of the fiscal year.

Usually, most of the month-to-month reduction in the overall reserve balance is attributable to activity in the Major Maintenance and Replacement Reserve, which as of May 31 last year had a balance of $4,754,531, reflecting the full annual transfer from lot assessments into this fund.

This reserve explains much of the decrease in the overall reserves. As of March 31, the balance was $3,693,632, compared to $3,853,356 on Feb. 28 and $3,865,232 on Jan. 30.

For the year through March 31, total capital spending from this reserve was $1,385,677, comprised of $1,149,396 from the funded depreciation component of this (labeled historical in the reserve summary) and $236,281 from the fiveyear capital plan funding stream, most of which would be related to Yacht Club

construction costs.

The other OPA reserve funds – bulkheads, future projects, roads, golf drainage, and operating recovery -- were mostly unchanged or only insignificantly changed from earlier months.

The exception to this was the roads reserve, which had a balance of $10,524 on March 31, down from the $83,728 balance in February.

There was some activity in this reserve during March, with $230,000 in casino funds allocated to it and $287,758 in spending subtracted from it. The roads reserve had a carryover balance of $67,068 at the beginning of the fiscal year.

The bulkhead/waterways reserve had a balance of $928,532, a slight decline from February’s $937,323 and January’s $1,016,914 balance.

The future projects reserve had a

deficit of $60,434, the golf drainage reserve had a deficit of $643,301 and the operating recovery reserve had a surplus of $135,869.

The operating recovery reserve had been zeroed out last year, on the theory that previous year deficits had been sufficiently offset by subsequent surpluses, but the OPA Board of Directors last year authorized $135,100 from the current year’s assessment to be allocated to this previously zeroed out reserve.

The purpose of resurrecting this fund and adding money to it purportedly involved the possibility that funds will be needed to address certain tax liability issues in future years.

More recently, it’s been suggested that this reserve could serve as a source of funds for any operating deficits that might occur this year or in future years.

against a budgeted loss of $28,307, for a very modest $1,311 negative variance to budget. Year to date, through March, aquatics has lost $142,083, with a $51,252 negative variance to budget.

The improvement over last year, however, is significant.

Through March of 2014, the department was $188,709 in the red. That translates into a $46,626 improvement year-over-year in aquatics.

Once again part of the explanation is savings in utility costs at the indoor Sports Core pool -- $11,174 against the budgeted $17,140, the result of a less expensive propane delivered to underground tanks by Sharp Energy, as opposed to propane delivered by pipeline

by Sandpiper Energy.

The switch in companies was an idea pressed by OPA Director Marty Clarke for more than a year and finally executed by Thompson after some apparent inertia.

Aquatics beat revenue projections for

the month by $1,767 -- $22,267 actual against the budgeted $20,500. But total expenses of $51,885 exceeded budget by $48,806, driven by service/supplies $4,368 over budget and maintenance expense that was $3,110 over budget Thompson is projecting a $173,783 loss in aquatics for the year, according to the year-end forecast issued in late February.

If April losses can be kept to $30,000 or so, that projection would appear to be realistic.

Status of reserves – The reserve summary released as part of the March financial report shows that the OPA’s allocated reserve balance dropped during the month to $4,065,822, compared to $4,306,867 in February, $4,398,600 in January, $4,483,293 in December, $4,699,394 in November, 4,871,868 in October, $5,128,136 in September, $5,178,302 in August, $5,519,149 in July, $5,786,683 in June and $6,003,165 in May.

The annual contribution from assessments traditionally is recorded in May, the first month of the fiscal year. The reserve balance tends to drop throughout the fiscal year reflecting transfers out of reserves to pay for capital expenditures.

[See separate story for details] Status of the balance sheet – According to the March 31 balance sheet, the OPA has assets valued at $36,182,576, against liabilities of $9,803,752 and owner equity of $26,378,824.

This is a rather significant increase from the Feb. 28 balance sheet, when OPA assets were valued at $28.7 million, liabilities of $1.5 million and owner equity of $27.2 million.

The difference is attributable to the fact that assessment notices were sent out to property owners and have been booked on the balance sheet -$8,765,807 in accounts receivable on the asset side of the ledger and $8,500,374 showing up as liability under “deferred assessments,” an accounting practice

designed to keep the balance sheet in balance.

The March balance sheet indicates an increase in operating cash to $1,648,757 from February’s $1,025,804.

Cash on hand was $1.74 million in January, and $1,384,425 on hand at the end of December.

This compares to operating cash of $2,133,033 at the end of November, $1,402,913 in October, $1,719,990 in September and August’s $2,281,360.

These kinds of fluctuations are considered normal.

The March balance sheet indicates that the OPA had $2,013,757 in shortterm investments as of March 31, a sizable reduction from February’s $3,020,750 and January’s $3,019,058 balances.

This compared to $4,020,819 in short-term investments as of Dec. 31, $4,018,768 in November, $5,315,829 in October and $5,612,201 on hand at the end of September.

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AQUATICS

May - Early June 2015Ocean Pines PROGRESS

37

Beach Club to expand with sandy ‘deck’

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Because of that, users of Ocean Pines’ popular beachfront amenity were facing another summer of very cramped deck space, with more people wanting to enjoy the pool there than could fit inside the fenced-in pool area on busy summer days.

In a recent conversation with Aquatics Director Colby Phillips, OPA General Manager Bob Thompson in effect decided that wasn’t good enough. She

informed the Aquatics Advisory Committee in a meeting May 5 that the general manager came up with the idea to go ahead and replace the Beach Club fencing immediately – that was in last year’s budget – and then do something other than a concrete deck in the expanded area inside the pool enclosure.

After Thompson came up with the idea, Phillips said that she and Eddie Wells, the OPA public works director,

“ran with it.

“We’re going to fill the expanded deck area with white sand, palm trees, a few umbrellas and lounge chairs,” she told the aquatics committee, whose members were enthused about they regarded as creative thinking by the general manager.

They speculated that once Ocean Pines residents and property owners

q

By TOM STAUSS Publisher here’s $100,000 in this year’s capital budget to expand the concrete deck at the Ocean Pines Beach Club pool in Ocean City, but it looked as though because of time constraints the work was going to have to be postponed until the fall. Replacing the existing fencing at the pool was also going to wait to be done at the same time.

Solution for splash pad still slip-sliding away Thompson says he won’t have amenity ready by Memorial Day weekend

By ROTA L. KNOTT Contributing Writer oddlers hoping to make a splash at the Swim and Racquet Club will have to wait until later in the summer. The splash pad will not be repaired and ready for play by the traditional Memorial Day weekend opening of the Ocean Pines Association’s swimming pools.

“We’re still wrestling that one to the ground,” General Manager Bob Thompson told the board of directors during an April 30 project update. “We will not have it open by Memorial Day.” But he said the weather is still chilly in mid to late May and toddlers don’t usually start using the amenity at that time anyway.

He did not offer a date for when the splash pad would be ready for use.

Thompson had been attempting to resolve problems with the splash pad by negotiating with Best Aquatic, the contrac-

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tor that built the faulty amenity last year.

He said from the time it opened there were concerns about the workmanship, very slippery tiles, hard edges on some of the equipment and uneven surfaces.

But now, under pressure from the Board of Directors that was evident during the March board meeting, he is seeking alternatives from other contractors and well as county and state inspectors.

“We are still working to figure out how and when we can get it (done) this season,” Thompson said.

He said staff met with inspectors to discuss the slipperiness of the splash pad and other issues. Inspectors are primarily concerned about deficiencies in the tile work – tile is peeling off -- because it presents a tripping hazard. The splash pad was only inspected prior to opening and one additional time last season and the problems with it had not yet begun to

appear, or at least had not been as acute.

Drainage issues were apparent from the outset.

Thompson said inspectors have already visited the splash pad once this season and provided some feedback. Largely, however, that feedback is that regulations for splash pads are in a “gray area.” He said the challenge from a compliance standpoint is simply that there are not many regulations regarding construction of splash pads. There is only one section of the building code that addresses maintenance and monitoring requirements for such amenities.

“It’s a relatively new item, and they’re trying to make some updates there,” Thompson told the board members, many of whom chastised him last month for not yet having resolved the issues with the splash pad. However, he said new regulations may be coming and he wants to OPA to be positioned to meet them.

Thompson said staff has also talked to some other contractors about the options for repairing or replacing the splash pad.

However a request for proposals only generated interest by one company and that bid came in after the filing deadline.

That probably was related to the lateness of the hour; pool companies this time of year are very busy preparing swimming pools for their seasonal clients. The Ocean Pines Aquatics Advisory Committee for years has recommended that the OPA focus on pool repairs in the fall, when pool companies are less pressured.

“So we’re still working out what options we have there,’ Thompson said, adding that he will have a final recommendation for short and long term improvements to the board sometime in May. OPA President Dave Stevens said there are at least three different problems with the splash pad: splitting, peeling and unleveled surfaces.

Instead of redesigning the old children’s pool at the Swim and Racquet Club to make it handicap accessible, the OPA last year opted to replace it with a new splash pad.

Mumford’s, Swim and Racquet pools near ready for season

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rogress is being made on repairs and resurfacing of two of the Ocean Pines Association outdoor swimming pools. Contractors are wrapping up work at the Swim and Racquet and Mumford’s Landing amenities, and both are expected to be complete and ready for use by Memorial Day weekend according to OPA General Manager Bob Thompson.

Beach Club and Yacht Club pools will also reopen as scheduled for the holiday weekend.

After months of debate about how to address problems with air pockets under the Mumford’s Landing pool that led to sinking of one end, work is in progress at that facility.

The contractor, Pools & Spas, poured a concrete slurry mix in areas under the pool floor and decking, allowing gravity to fill voids in the soil as required and is now working on repairs to the pool itself.

The contractor used a gravity fill method to force the concrete grout material into the voids under the pool.

The work involved digging a trench around the perimeter of the pool, pouring the fill material into the trench and allowing gravity to work it into the voids.

To make sure that work is done in conformance with the recommendations of John D. Hynes & Associates, the Salisbury-based engineering firm that performed soil borings around and under the pool and made recommendations for repairs to the facility, the board also voted to retain that firm to oversee the project.

In lieu of simply resurfacing and retiling the Mumford’s Landing swimming pool once structural issues are repaired, the board on the recommendation of Thompson voted to install a pool liner at the amenity rather than do a traditional plaster resurfacing. Thompson said the liner technology offers several advantages as compared to traditional pool surfaces.

The Natare line system provides for a pool surface that is easily cleaned and maintained, and the smooth surface

membrane generally does not allow dirt to penetrate the surface of the membrane and is formulated with anti-microbial agents designed to inhibit the growth of bacteria and algae. Natare warrants its system for a period of ten years against peel, flake, crack, tear, delaminate and guarantees that it will retain its integrity as a watertight membrane during the warranty period.

He said staff considered both repairing and replacing the existing Mumford’s Landing pool. They also reviewed two types of pool replacements, one that was a conventional plaster pool and the alternative of using the pool liner technology.

Pool liners were evaluated as proposed by two different installing contractors, both of whom would have purchased the materials from the same company.

At the Swim and Racquet Club the project includes repairs to the family pool and deck including removing and replacing tiles, lane markers and plaster finish.

The project calls for changing the lad-

ders by installing wall treads and top railings, reinstalling swim blocks so they line up evenly and repairing the expansion joint in the first phase of the work.

The second phase involves replacing the handicapped entry chair for a pole that swings either way, replacing all tiles and applying the bond coating and a new Diamond Brite finish coat.

“That’s coming along,” Thompson said of the Swim and Racquet Club pool where contractors are making repairs and resurfacing the pool.

He said tile work, lane lines, depth markers and new stairs are already in place, and the plaster work is under way.

The work there will be finished in early May, he said.

Thompson said the Mumford’s Landing pool project is about a week behind the work at the Swim and Racquet Club.

New at the Swim and Racquet Club pool this summer, food service will begin on a limited basis on weekends starting Memorial Day weekend, to expand to daily service in mid-June.

38 Ocean Pines PROGRESS

OCEAN PINES

May - Early June 2015

Board to consider updates to sign regulations letions marked in yellow.

Stevens is the board liaison to the Bylaws and Resolutions Advisory Committee, which is responsible for reviewing proposed changes in OPA regulations, often assisted by former committee chair Jim Trummel.

An analysis by the Progress revealed no substantive changes in policy in the new signage regulations, which appear in Section 600 of the ARC guidelines.

The change amounts to a fine-tuning and a clean-up of existing language, or codifies existing enforcement procedures.

In one modest change, under Section 600.2.C., the revised guidelines insert

language that gives “any authorized agent of the association” the power to remove any sign “placed so as to be a hazard to road traffic, pedestrians or navigation,” a power that has been exercised by the CPI department since the earliest days of Ocean Pines.

This section of the draft does not attempt to define what constitutes a hazard and the reference to navigation is interesting, as signage along Ocean Pines waterways has not heretofore been identified as a problem area.

The draft sign regulations seem to delegate formal responsibility for issuing sign permits to the CPI department, at least those signs that meet criteria

defined in the documents. Existing language conferred the power to issue sign permits to the committee, so it seems that this proposed change simply brings the ARC guidelines into conformity with existing practice.

Stevens, during the Board of Directors’ April 30 regular meeting, advised his colleagues that consideration of the signage draft would be added to a future meeting agenda.

He did not specify a date but said the proposed changes were posted on the OPA Web site, inviting his colleagues and OPA residents to check them out.

The ARC sign regulations govern

Beach Club

area.

She said that she and her staff will monitor usage of the expanded space this summer and will keep tabs on how well patrons like the expanded sandy “deck.” She said it’s possible that if the expanded sandy deck is a hit, it might not be necessary to do the concrete decking in the fall, thereby saving up to $100,000.

That was a high side estimate included in the budget, in the event that Ocean City required pilings to be driv-

en to support the concrete.

The only possible downside from the sandy deck idea is that there is greater potential for sand to be brought into the pool, which already occurs when beach-goers don’t shower properly when entering the pool.

She said that staff will have to be vigilant to ensure that people wash off excess sand at the outdoor showers before entering the pool.

Phillips will be implementing another innovation this summer, with

the addition of limited food service at the Swim and Racquet Club pool Memorial Day weekend, continuing on weekends until June 19, when daily service will begin.

For this summer at least, there will be no rule against outside food and beverage at the Swim and Racquet Club pool, mainly because of the limited selection of hot dogs and pizza and similar items that will be offered.

As the selection expands, that policy could change, Phillips said.

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From Page 35 realize that this amenity suddenly has become more user-friendly, use of the pool will increase.

She said that OPA had met with officials from Ocean City who gave the goahead for the fence installation. They had no problem with the alternative plan for the decking area, she said, which adds 3,930 square feet of usable space inside the expanded fenced-in

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By TOM STAUSS Publisher he Board of Directors shortly will have an opportunity to review proposed updates to sign regulations in Ocean Pines that are enforced by the Department of Compliance, Permits and Inspections and the Architectural Review Committee, Ocean Pines Association President Dave Stevens has announced.

The proposed changes are posted on the OPA Web site under forms and documents, in the section headed documents for board review.

It’s a five-page document, with additions apparently marked in red and de-

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OCEAN PINES

May - Early June 2015Ocean Pines PROGRESS

39

Board rejects ARC decision on van with Ravens insignia

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size, locations, height, materials, col-

ors, wording, number and placement of signs on Ocean Pines numbered lots.

Mentioned specifically are construction signs, real estate for sale or lease by owner signs, real estate stakes, open house signs, brochure boxes, yard, garage and rummage sale signs, political and referendum signs, and advertising and direction signs to temporary functions or community organizations and churches.

OPA’s governing documents that were before the board for approval to begin legal action.

“What’s the story behind this?” Director Jack Collins asked about the issue.

He wanted to know if it was a commercial vehicle or just a privately owned van that the owner takes to football games on the weekends.

“Mr. Collins. This is a policy matter.

The board can take a look at the picture and tell me what you want to do,” Thompson responded.

Director Marty Clarke chimed in “Here’s my guess. His neighbor’s a Redskins fan.”

While those posting signage on their

properties are supposed to obtain CPI permits, some residents choose not to, and enforcement is uneven.

Language in the guidelines, not proposed for any changes, give agents of the OPI the authority to remove any sign or flag not adhering to requirements in Section 600 of the guidelines.

This suggests that it’s possible some signs won’t be removed if a permit has not been issued, provided that it complies with the listed criteria.

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Director Tom Terry, board liaison to the ARC, said the issue is one of the size of the vehicle, and the antenna mounted on top of it is a secondary issue. He said as it is registered and manufactured, the vehicle is too big to be parked on streets or private property in Ocean Pines.

“So they really had no choice but to follow the rules as they are,” Terry said of the ARC’s recommendation to refer the violation to legal counsel for action. “It is in violation of the size of vehicle that is allowed to be packed on somebody’s private driveway.”

Director Jack Collins wanted to know what the difference is between the subject van and a recreational vehicle. “They’re rather sizable. They’re like buses. I mean, are they outside the guidelines?”

Terry said he is “not a car expert” but that the issue was one of weight capacity. He said he would not vote in favor of taking any action on the violation. “I personally don’t have a problem with this thing,” he told his colleagues.

OPA President Dave Stevens responded to Collins’ question, saying that RVs not allowed to be on the owner’s property either.

Clarke said the declaration of restrictions states that “no vehicle shall be parked on any street of the subdivision.”

He added that the governing documents also prohibit any vehicle with load capacity of one ton or greater.

Yet, he said, every day he sees two vehicles in Ocean Pines that are exactly the same as the one parked on Cannon Drive. If the OPA sends the issue to court, he said the association better hope the judge is not a Raven’s fan.”

Director Sharyn O’Hare was adamant about enforcing the prohibition against larger vehicles. “It’s a violation of the guidelines,” she said.

She offered a motion to act on the ARC recommendation and send the violation to the OPA attorney for disposition. Stevens offered a second to the motion.

“I just think it’s an infringement of an individual’s right to be raven, redskin, eagles, New York Giant football fan.”

Collins said. “This is nothing but a van painted purple, granted it’s got an aerial on top of it.”

He said the owner is probably a fulltime resident of Ocean Pines who enjoys watching his favorite football team.

“I don’t see where we have a right to do this. I’d hate to see us go to court with this one,” he said. “We will lose this one,” Thompson said the association has pursued the removal of big trucks from



By ROTA L. KNOTT Contributing Writer hile the Architectural Review Committee ruled that a purple van bearing the Baltimore Ravens insignia should “nevermore” be parked on the owner’s property, the Ocean Pines Association’s board of directors overturned that decision during an April 30 meeting. That doesn’t happen very often when the board considers recommendations from the ARC. The “tell-tale” about the van parked at 41 Cannon Drive was presented

by General Manager Bob Thompson as part of a series of violations of the

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40 Ocean Pines PROGRESS ARC decision

May - Early June 2015

From Page 39 Thompson said the association has pursued the removal of big trucks from properties in Ocean Pines via the court.

He said the court agreed with Ocean Pines and mandated that the owners have them removed.

“This is not a box vehicle,” Collins responded.

“It’s a very big vehicle,” Stevens said.

O’Hare said the property owner received notification about the violation and could have attended the ARC meeting to defend himself but chose not to.

“He’s not done anything about this,” she said..

Collins responded with “that’s a good point.” But it was not good enough to sway his vote.

Ultimately the pendulum swung in favor of the property owner, with O’Hare’s motion failing to garner majority support. It lost in a 4-3 vote with Clarke, Collins, Terry and Pat Renaud opposed.

Voting with O’Hare were Tom Terry and Bill Cordwell.

The so-called new board majority prevailed.

“Does this mean we just drop this whole case” asked O’Hare following the vote.

“I think that’s what it means,” Stevens responded.

COUNTY BRIEFS County fined $8,000 for wastewater overflows

The Worcester County Commissioners have agreed to pay $8,000 in fines levied by the Maryland Department of the Environment for sanitary sewer overflows that have occurred primarily in the Ocean Pines wastewater treatment plant between June 2011 and June 2014.

John Tustin, county director of public works, met with the commissioners in April to review and discuss the problems that ultimately led to the fine. He said the MDE identified 17 instances of overflows that occurred during that three-year period.

Tustin said that none of the overflows resulted from operator error but rather from a combination of pump station mechanical and electrical failures, sewage force main structural failures, and leaks in the flow equalization tank at the Riddle Farm treatment plant. All of the problems were reported promptly to MDE by county system operators.

Tustin said each instance of system overflow is subject to a penalty of up to $10,000 per day, per fine.

However MDE offered to settle all 17

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The commissioners were concerned that the fines being levied were out of their control. But they agreed to pay the $8,000 in order to settle the outstanding issues.

Bertino to host town meeting

Chip Bertino, Worcester County Commissioner for the all-Ocean Pines district 5, will hold a town meeting on Saturday, May 16, at the Ocean Pines library. The meeting will begin at 10 a.m.

Bertino will discuss issues and developments occurring within the district and the Worcester County. Additionally, Fred Webster, Worcester County director of emergency services, will be the guest speaker.

Ocean Downs gets wastewater capacity

The Worcester County Commissioners in April approved a deed of assignment of sewer service for 63 equivalent dwelling units of capacity in the Ocean Pines system being conveyed to Ocean Downs.

County Attorney Sonny Bloxom said last year the county entered into an agreement with Ocean Enterprises 589 Inc., the owners of Ocean Downs, granting the company the right to make

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The property owners have since paid the $11,417 per EDU price, a total of $719,271, for buying into the Ocean Pines system. Therefore, Bloxom said, Ocean Enterprises 589 Inc. is now entitled to be assigned the EDUs. The deed of assignment was approved by the commissioners and will be recorded in the county land records.

Ocean Downs wanted the capacity in the Ocean Pines system to serve its existing improvements and facilities located on 166 acres along Route 589.

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May - Early June 2015Ocean Pines PROGRESS

41

State allows county to keep casino impact funds Commissioners deny Snow Hill, Pocomoke allocations; OPA share may increase

By ROTA L. KNOTT Contributing Writer uring the final days of the 2015 session, the General Assembly sliced language from the administration’s budget bill that would have significantly reduced the amount of money coming to Worcester County, and by extension to the Ocean Pines Association, in the form of local impact funds from the Ocean Downs Casino.

State Senator Jim Mathias said an early proposal in the legislature would have stripped away much needed local impact funds that come from the state’s casino revenues. “By working with my colleagues in the legislature and Governor’s office, we were able to restore these much needed funds to Worcester County, Ocean City, Berlin, and the Ocean Pines community.”

As originally proposed by the Hogan administration, the Budget Reconciliation and Financing Act of 2015 would have taken local impact fund money that is distributed to Worcester County and then divvied it up to the OPA, Ocean City and Berlin. In the budget, the Hogan administration proposed transferring some of the funds currently allocated as local impact money to the state’s Education Trust Fund.

Local impact grant funds are designated to be used for improvements in communities in immediate proximity to the video lottery facilities and may be used for infrastructure improvements, facilities, public safety, sanitation, economic and community development including housing and other public services and improvements.

In fiscal year 2015, Hogan initially proposed that $4,073,964 of the funds that would otherwise be allocated as video lottery terminal local impact grants statewide, be moved to the Education Trust Fund instead. In the following fiscal year 2016, the state would have taken $3,887,697 of the funds for the Education Trust Fund.

Worcester officials argued that proposal would have created a direct loss of revenue to the county of roughly $300,000 annually and would have affected the county’s ability to cover the debt payment on Worcester Technical High School, where the funding was designated.

Instead, more money should be staying local this year. The opening of the Caesars Entertainment’s Horseshoe Baltimore Casino in August 2014 allows more local impact funding from the Casino at Ocean Downs operation to be distributed to Worcester County, OPA, Ocean City and Berlin. Although not a municipality, the OPA was designated to receive a portion of the local impact grant funding because of the community’s proximity to the Casino at Ocean Downs.

Since its opening, an 18 percent portion of the impact funding from Ocean Downs was funneled to Baltimore and Prince Georges counties. With the open-

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ing of the Horseshoe Casino, however, that money will become part of what is distributed locally.

In March, the Worcester County Commissioners reviewed a letter from Snow Hill Mayor Charlie Dorman asking that local impact grant funds be provided to both the Town of Snow Hill and the City of Pocomoke. He argued that since the 18 percent that previously went to Baltimore City and Prince George’s County is now coming to Worcester County, those two municipalities should also get a piece of the pie.

“We feel at this time with the 18 percent of withheld funds having ceased, it is an opportunity to distribute 5 percent to Snow Hill and 5 percent to Pocomoke, which would still afford Worcester County the remaining 8 percent,” Dorman said in a letter to the county.

Dorman said he has continually expressed his belief that all of the municipalities feel the impact of the casino and therefore should also benefit from the local impact grants.

“We are well aware that Ocean City, Ocean Pines and Berlin are the most affected areas; however, Snow Hill and Pocomoke serve as a main thoroughfare from Route 13 and Route 113 that leads to the Berlin/Ocean City area. Both municipalities offer various restaurant and lodging opportunities to those visiting the casino. Additionally, Snow Hill is the Worcester County seat and should be considered as an integral part of this funding.”

One of the components of the original legislation that was amended in 2009 by the General Assembly provided for establishment of local development councils.

They advise the county regarding expen-

diture of local impact grants received from video lottery terminal facilities located in the jurisdiction. Prior to the expenditure of any funds, the county must develop in consultation with the LDC a multi-year plan for use of the funds. The county has opted to use its funds to reduce the debt service for Worcester Technical High School because it provides a large portion of the workforce development education and training for local workers.

Dorman argued that County Attorney Sonny Bloxom said at an LDC meeting four years ago that it is possible for the county to designate some of its funding for distribution to Snow Hill and Pocomoke if warranted.

However, the county argued that there is more to what Bloxom said during that meeting. The meeting minutes show that, in response to a question, Bloxom advised the LDC that the county could designate funds for use in any area, including Snow Hill and Pocomoke if the need warrants.

For example, he said the county could designate a portion of the funds to provide additional bus service to transport residents living in the southern end to work at the casino.

The county’s share of the local impact grants is spent pursuant to a multi-year plan approved by the commissioners, which shows that it will go toward paying down the debt service on Worcester Technical High School. However, its share of the casino funding doesn’t fully cover the entire annual debt service. Therefore if the county decided to redirect part of its share to Snow Hill and Pocomoke City, then there will be less money available for debt service. Additionally, the multiyear plan would have to be amended and approved with review and comment by

the LDC. The current state law specifies that the distribution of proceeds from video lottery terminals includes a 5.5 percent designation for local impact grants. Another 2 percent goes to the State Lottery and Gaming Control Agency, 33 percent to the video lottery operation licensee, seven percent to the Purse Dedication Account up to $1 million annually, until the issuance of a license in Baltimore City 1.75 percent goes to the Racetrack Facility Renewal Account, and 1.5 percent to the Small, Minority and Women-Owned Business account.

It also specifies that 6 percent goes to the licensee if they own or lease their terminals except for Anne Arundel County licensee, which gets 8 percent. After the issuance of a license for a facility in Prince George’s County, however, that changes to 8 percent for the Anne Arundel licensee and 7 percent to the Baltimore County licensee.

The current law says that “the remainder,” about 28 percent, goes to the Education Trust Fund, a special state fund that provides money for public elementary and secondary education, through continuation of the funding and formulas established under the Bridge to Excellence in Public Schools Act. That’s where Hogan was hoping to dump the funding he proposed to take from local impact grants.

The fiscal year 2014 revenue distributions to Ocean Pines, Worcester County, the Town of Ocean City and the Town of Berlin topped $2.347 million. The OPA was given a total of $234,715 in slots funding for fiscal year 2014 according to a Maryland Racing Commission report, and is expecting to receive about $300,000 by the end of this fiscal year.

Editorial Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPIC, a Registered Investment Advisor.

M and H, Phyllis R. Mitchell Financial Services, Inc., and NPC are separate and unrelated companies.

42 Ocean Pines PROGRESS

CAPTAIN’S COVE

May - Early June 2015

Cove board likely to continue support for Aqua acquisition of CCUC assets Cove Vice-president defends sale of rights to Section 14-15 RIB site use rights of the ten-acre parcel to Aqua Virginia, the company that is in the process of purchasing water and wastewater treatment assets from CCUC. Based on Kieffer’s comments, it seems doubtful that there will be any change in the Cove board’s position anytime soon.

Aqua wants to set aside the parcel, which is part of the platted nine-hole golf course in Sections 14-18 that has never been developed and never will be because of regulatory hurdles regarded as insurmountable, for potential future use of what’s called a rapid infiltration basin, or RIB, in the event that RIBs elsewhere in Captain’s Cove have to be abandoned.

Aqua was not interested in securing an easement to the ten acres but instead wanted the Cove POA, by selling the use rights, to abandon any right to develop or in any way utilize the property in future. The property remains under the ownership of the Cove declarant/ developer, Captain’s Cove Group Note, LLC, not the Cove POA, as is sometimes mistakenly believed. Use rights or

By TOM STAUSS Publisher he Captain Cove property owner association’s Vice-president recently took to the POA’s online message board to defend the pending sale of Captain’s Cove Utility Co. assets to Aqua Virginia and an issue tied to it – the transfer of usage rights of ten acres overlapping parts of Sections 14 and 15 to Aqua as a wastewater disposal site known as an RIB. Cove POA Vice-president David Kieffer, acting as a stand-in for Cove President Tim Hearn who is recuperating from surgery, has had the unpleasant chore of defending the pending sale that some Cove resident property owners are resisting. The Concerned Citizens of Captain’s Cove (CCCC) is leading a low-decibel campaign that is encouraging residents to write to the Virginia’s State Corporation Commission questioning the sale, without necessarily opposing it.

In late October last year, the directors approved in a 4-0 vote the sale of future

T

easements are not the same as actual ownership of land.

Aqua, which included the rights to the ten acres as one of its conditions for the purchase of the CCUC assets, agreed to pay the Cove association $31,500 for the use rights, which was based on an appraisal arranged by Mike

Inman, the Cove attorney, after a Cove board meeting last July.

Inman, at the same meeting, was tasked with researching whether the Cove POA had the right to sell its use rights and whether the board could authorize the sale or whether it would have to be decided in a referendum of property owners.

Since that time, Inman reported back that the use rights could be sold, and no referendum of property owners was required.

Previously, Cove President Tim Hearn had disclosed that as part of the To Page 45

Berkshire Hathaway to celebrate Cove sales center grand opening

S

aturday, May 23, will mark the grand opening of the Berkshire Hathaway Pen Fed Realty sales center at 4242 Captain’s Corridor in Captain’s Cove, from10 a.m. to 5 p.m.

The grand opening event will included a live radio broadcast by WCTG, 92.5 FM, out of Chincoteague, from 10 a.m. to 1 p.m.

Beginning at 11 a.m. and continuing while supplies last, the sales center will host a free pig roast, including soft drinks and other items. The event will also include face painting and a bounce house for the kids.

Real estate agents will be on site to assist those looking to buy property, resale homes and new homes in Captain’s Cove.

The sales office is located just inside the main entrance into Captain’s Cove, on the right just off State Line Road.

Cindy Welsh

For A Virtual Tour of Captain’s Cove, Please Visit My Web site at captainscoveproperties.com

4243 Captain’s Corridor, Greenbackville, VA. 23356

302-381-6910 (cell)

888-241-9590 (office) candhwelsh@aol.com

Captain’s Cove -- Hidden Treasure on Virginia’s Eastern Shore

Buildable Association-Owned Lots for Sale in Sections 1-11 LIST PRICE $4000

2247 Smugglers Way • $128,700

37059 Neptune Court • $179,900

37129 Wheelhouse Dr. • $189,900

UNDER CONTRACT UNDER CONTRACT

3BR/2BA • 1202 sq. ft. • Concrete driveway

SOLD

BR 2.5 BA 1464 sq ft., 2 Car Garage

Ask Me About ...

3BR/2BA loaded with upgrades

3844 Captain’s Corridor • $199,500

Section 1, Lot 471, Captain’s Corridor

37453 Beam Court • $274,500

REDUCED

REDUCED

NEW LISTING

DIRECT BAY VIEWS

Call Cindy Welsh, Listing Agent, $65,000 3/1439 $69,900 3/1443 Cleared canal Cleared canal w/ 60’ w/120’ Bulkhead for Details Bulkhead

UNDER CONTRACT

3BR/2.5 BA 2170 sq ft, Bonus Room

Your Home

Lot 4, Jolly Roger Drive Section 9, Lot 20, Jolly Roger Drive Section 9, Lot 43, Half Staff Court* Section 9, Lot 163, Yardarm Drive 3BR/2.5 BA Located on Golf Course 3 BR 2 BA 1986 sq ft., Bonus Room Section 5, Lot 19, Brigatine Boulevard Section 11, Lot 7, Jolly Roger Drive Section 5, Lot 2473, Bounty Court $4000 5/19 Wooded Section 11, Lot 27, Jolly Drive $5000Roger 4/2039 Wooded WATERVIEW LOTS Section 5, Lot 2562, Captain’s Corridor Section 11, Lot 85, Pieces of Eight $5000 8/48 ClearedDrive $18,000 3/1623 Cleared W & S $4000 4/2092 Wooded Section 7, 3/1629 Lot 275,Cleared Smuggler’s Section 11, Lot 97, Jolly $5000Roger 4/ 2104Drive* Wooded, Septic Approved Septic Approved $18,000 W &Way S $4000 9/38 Cleared, $5000 4/2130 Wooded, Septic Approved $4000 9/66 Cleared, Septic Approved * Approved for septic $24,000 3/1628 Cleared W &S

UNDER CONTRACT CONTRACT AssociationSection 1,UNDER Lot 806, Castaway Drive Lots StartingSection 4, Lot 1964, Mayflower Drive* at $4000Section 4, Lot 2092, Mayflower Drive

Section 8, GOLF COURSE

37309 Blackjack Court • $199,500

$4000 1/471 Wooded $4000 4/1964 Wooded

Could Be Listed Here

$5250 1/1252 Wooded, W & S $5500 5/2403 Wooded, Septic Approved

Captain’s Co

3BR/2BA • 1202 sq. ft. • Concrete driveway

BR 2.5 BA 1464 sq ft., 2 Car Garage

3

3844 Captain’s Corridor • $199,500 37453 Beam 3844 Captain’ s Corridor • $199,500 B For A Virtual Tour of Captain’s Cove, Please Visit 37453 UNDER CONTRACT GOL UNDER CONTRACT May - Early June 2015Ocean Pines PROGRESS

43

Ask Me About ...

Ask Me About ... 2247 Smugglers Way My Web site• at $128,700 captainscoveproperties.com37059 Nep Cindy Welsh Association

Association Lots Starting 888-241-9590 (office) LotsatStarting $4000 candhwelsh@aol.com at $4000 302-381-6910 (cell)

REDUCED

UNDER CONTRACT UNDER CONTRACT

4243 Captain’s Corridor, Greenbackville, VA. 23356

G

UNDE UND

3 BR 2 BA 1986 sq ft., Bonus Room

3 BRon 2 BAVirginia’s 1986 sq ft., Bonus Room Shore Captain’s Cove -- Hidden Treasure Eastern REDUCED

2247REDUCED Smugglers Way • $128,700

3BR/2.5

3BR

5/19 Wo WATERVIEW LOTS $4000 $4000 5/19 4/2092 WATERVIEW LOTS 3BR/2BA3/1623 • 1202 sq. Cleared ft. • Concrete driveway BR 2.5 W Waterfront Living $18,000 W & S $4000

REDUCED 37059 Neptune Court • $179,900

37129 Wheelhouse Dr. • $189,900

UNDER CONTRACT UNDER CONTRACT

37309 Blackjack Court • $199,500

SOLD

$65,000 3/1439 $69,900 3/1443 $18,000 Cleared 3/1439 canal Cleared canal3/1443 w/ 60’ $65,000 $69,900 w/120’ Bulkhead 3BR/2BA • Bulkhead 1202 canal sq. ft. • Concrete driveway BR 2.5w/ BA 1464 Cleared Cleared canal 60’sq ft., 2 Car Garage $18,000 w/120’ Bulkhead Bulkhead 3844 Captain’s Corridor • $199,500

UNDER CONTRACT

$4000 4/209 3/1623Cleared ClearedWW&& $18,000 3/1629 S S$4000 9/38 Cle $4000 9/38 $4000 9/66 Cle 3/1629 Cleared W & S 3844 Capt $24,000374533/1628 Cleared W & S $4000 9/66W Court • $274,500 Ask Me About ... S$4000 1/471 $24,000 Beam 3/1628 Cleared W&

At Its Very Best ...

3BR/2BA loaded with upgrades

3BR/2.5 BA 2170 sq ft, Bonus Room

Your Home UNDEW $4000 4/1964 AssociCouldatioBen Listed $4000 4/196W Here5/2473 $4000 GOLF COURSE LOTS $4000 5/247 $4000 9/163 C Lots Starti n g GOLF COURSE LOTS $9,000 2/379 Cleared, Alt. Septic $4000 9/163 $4000 5/2562 W $9,000 2/379 Cleared, Alt. Septic $10,500 2/134 Wooded, Septic Approved $4000 5/256 $4000 $4000 11/97 W $10,500 2/134 Wooded, SepticatApproved $4000 11/97 $12,000 2/261 Cleared, Septic Approved

NEW LISTING Ask Me About ... DIRECT UNDER CONTRACT GOLF COURSE UNDER CONTRACT Call Cindy Welsh about these and other available properties in Captains Cove 1/471 NEW LISTINGAssociation BAY VIEWS $4000 DIRECT UN

BAY VIEWS Lots Starting 37749 Broadside Court • $314,900

at $4000

38020 Sailors Court • $459,950

$73,500 3/1408 NEW LISTING 3 BR 2 BA 1986 sq ft., Bonus Room $74,500 1/940 REDUCED $73,500 REDUCED Cleared 3/1408 canal $74,500 Cleared Canal1/940 w100’ 3BR/2.5 LOTS BA WATERVIEW Cleared canal Cleared Canal w100’ w/50’ Bulkhead Bulkhead 2160 sq. ft.W & S $18,000 3/1623 Cleared $65,000 3/1439Bulkhead $69,900 3/1443 w/50’ Bulkhead Master BR W & S Cleared canal Cleared canal w/ 60’ $18,000 3/1629 Cleared

3BR/2.5 BA Located on Golf Course NEW LISTING

$5000 4/2039Custom Wooded Designed $4000 5/19 Wooded $5000 8/48 Cleared $4000 4/2092 Wooded 3BR/3 BA $5000 4/ 2104 Wooded, $4000 9/38 Cleared, Septic Approved 2800 sq. Septic ft. Approved w/120’ Bulkhead Bulkhead $5000 4/2130Loaded Wooded, with Septic Approved with Sitting $24,000 3/1628 Cleared WArea, & S $4000 9/66 Cleared, Septic Approved NEW LISTING $5250 1/1252 Wooded, W S Oversized Garage $4000 1/471 Wooded DIRECT Upgrades,&Bonus BAY VIEWS $5500 5/2403Room, Wooded,Oversized Septic Approved & Workshop, $4000 4/1964 Wooded CANAL VIEW $6,000 1/1250 Wooded, & SViews $4000 5/2473 Wooded, Septic Approved Bay Views $73,500 3/1408 Garage, W Bay $74,500 1/940 CANAL VIEW REDUCED Cleared canal $6000 9/127 Wooded, Septic Approved Cleared Canal w100’ $4000 9/163 Cleared, Septic Approved REDUCED REDUCED $9,000 2/379 Cleared, Alt. Septic REDUCED w/50’ Bulkhead Bulkhead Approved $4000 5/2562 Wooded, Septic Approved $6500 7/276 Cleared, NEWSeptic LISTING $10,500 2/134 Wooded, SepticDIRECT Approved BAY VIEWS $75,000 1/1195 $75,000 1/1196 $7000 9/64 Cleared $4000 11/97 Wooded, Septic Approved $75,000 1/1195 $75,000 1/1196 $12,000 2/261 Cleared, Septic Approved Cleared Cleared canal w/75’ CANAL VIEW Canal, $7000 11/3 Wooded $4000 1/806 Wooded REDUCED Cleared $15,000canal 2/221 Cleared, Septic Approved Cleared Canal, w/75’ w/100’ Bulkhead Bulkhead $4000 11/27 Wooded NEW REDUCED PENDING $7000 11/2 Wooded $75,000 1/1195LISTING $75,000 1/1196 $15,000 2/206 Cleared, Septic Approved w/100’ Bulkhead Cleared Canal, Bulkhead Cleared canal w/75’ $7000 11/14 Wooded $4000 8/4 Cleared Approved w/100’ Bulkhead Bulkhead 1383 Sail Court, $54,900 1439 $15,000 High Seas2/184 Court, Cleared, $65,000 Septic940 Sailors Court, $69,500 1443 High Seas Court, $69,900 Sailors Court, $73,000 Wooded $4000 4/2338 Wooded, Approved $7000 11/4926 40’ water frontage 120’ new bulkhead, bay views 100’ bulkhead, unobstructed 60’ Septic bulkhead 60’ bulkhead, minutes to bay, bay views elevation Cleared $4000 3/1657 Wooded, Septic Approved $7000 8/38high NEW LISTING $7000 9/101 Wooded NEW LISTING $4000 6/86 Wooded NEW LISTING MARSH VIEWS BUYER INCENTIVE $500 10/159 Wooded $7000 1/733 Wooded NEW LISTING $4000 9/185 Cleared $75,000 1/1045 $75,000 1/958 NEW LISTING NEW Wooded, canal LISTING Cleared canal $2000 1/881 Wooded NEW LISTING $7900 4/2177 Wooded, Septic Approved $4021 6/40 Wooded, Septic Approved w/60’ water front w/60’ Bulkhead $3000 5/9 Wooded $8500 4/2358 Wooded, Septic Approved $4200 6/45 Wooded, Septic Approved SOLD $75,000 1/1045 $75,000 1/958 $3500 10/140 Wooded $75,000 1/1045 $75,000 1/958 BAY VIEWS NEW LISTING $4430 5/2482 Wooded, Septic Approved $8900 3/1723 Wooded, Septic Approved NEW LISTING DIRECT canal Cleared canal 1408Wooded, Captain’s Corridor, $73,500 1195 Salty Way, $75,000 Salty Way, $75,000 Scimitar Way, $75,000 Bayside Drive, $75,000 $3500 7/169 Wooded, Septic1196 Approved Wooded, canal Cleared canal $8900 11/10958 Wooded, Septic Approved $75,000 1/1209 $78,000 1/1021 $4500 5/41 Wooded, 1045 Septic Approved 60’ bulkhead, centrally located 100’ bulkhead, marsh views, 75’ bulkhead, protected canal, 60’ water frontage, wooded 60’ water frontage, bay views Cleared canal w/60’ Cleared, canal w/60’ water front w/60’ Bulkhead $3500 1/467 Wooded, Septic Approved BAY VIEWS close to all amenities easy access to bay $1500 Discount in May/June canal lot $9000 9/126 Cleared, Septic Approved $5000 6/17 Wooded, Septic Approved w/60’ water front w/60’ Bulkhead w/75’ bulkhead Bulkhead $4000 9/20 Cleared $5000 4/1962 Wooded, Septic Approved $10,000 9/168 Wooded, Septic Approved BAY VIEWS DIRECT BAY ACCESS $4000 7/275 Cleared $5000 11/101 Wooded, Septic Approved $10,000 11/32 Wooded, Septic Approved NEW LISTING $4000 11/85 Wooded $80,000 4/1414 $80,000 3/1290 BAY BAY VIEWS NEW LISTING $4000 VIEWS 11/7 Wooded Cleared canal w/60’ ClearedNEW canal w/60’LISTING NEW LISTING

3 BR 2 $12,000 2/261 Cleared, Septic Approved $4000 1/806 W GOLF COURSE LOTS $4000 1/806 $15,000 2/221 Cleared, Septic Approved $15,000 2/221 Cleared, Septic Approved $4000 11/27 W $4000 11/27 $15,000 Approved $15,0002/206 2/206Cleared, Cleared,Septic Septic Approved $4000 8/4 Clea $4000 8/4 C $15,000 Approved $15,0002/184 2/184Cleared, Cleared,Septic Septic Approved $4000 4/2338 W $18,000 3/16 $4000 4/233 $65,000 3/1439 $69,900 3/1443 $4000 3/1657 INTERIOR LOTS Cleared canal $4000 3/165W Cleared canal w/ 60’ $18,000 3/16 w/120’ Bulkhead Bulkhead $4000 6/866/86 Wo $4000 $24,000 3/16 $500 $50010/159 10/159Wooded Wooded $4000 9/185 C $4000 9/185 $2000 $20001/881 1/881Wooded Wooded $4021 6/406/40 Wo $4021 $3000 $30005/9 5/9Wooded Wooded $4200 6/456/45 Wo $4200 $3500 $350010/140 10/140Wooded Wooded $4430 5/2482 $4430 5/248W $73,500 3/1408 $74,500 1/940 $3500 Approved $35007/169 7/169Wooded, Wooded, Septic Approved $4500 Cleared canal ClearedSeptic Canal w100’ $78,000 5/415/41 Wo $78,0001/1021 1/1021 $4500 Cleared canal w/60’ Cleared canal w/60’ $9,000 2/379 Cle w/50’ Bulkhead Bulkhead $3500 1/467 Septic Approved $3500 1/467Wooded, Wooded, Septic Approved $5000 6/176/17 Wo $5000 Bulkhead Bulkhead

WATERV

INTERIOR INTERIORLOTS LOTS

Bulkhead

Bulkhead

$75,000 $75,0001/1209 1/1209 Cleared, Cleared,canal canal w/75’bulkhead bulkhead w/75’

1209 Keel Court, $75,000 80’ new vinyl bulkhead, open canal, marsh views

1021 Bayside Drive, $78,000 60’ bulkhead, protected canal, bay views

1200 Salty Way, $79,000 60’ new vinyl bulkhead w/ boardwalk, boat lift poles

1290 Blackbeard Court, $80,000 75’ bulkhead, direct bay access and views

GOLF CO

1414 Starboard Street, $80,000 60’ bulkhead, wide canal

44 Ocean Pines PROGRESS

May - Early June 2015

CAPTAIN’S COVE Utility asset sale From Page 42 pending asset sale to Aqua, the Cove POA would be paid $105,000 plus interest to retire the demand notes associated with the outstanding loan advanced to the CCUC several years ago by the Cove POA to help keep the CCUC afloat in a stressful time financially. At the end of 2014, the debt including interest was about $145,000, Hearn said.

Retirement of the demand notes remains part of the pending Aqua acquisition, and that revenue would be lost to the POA should the CCUC sale fall through.

Kieffer, in a comment posted on the Cove POA’s Web site in late April, pushed back against the idea, reflected in another message board posting, that selling the use rights to the ten acres diminished Cove assets without the consent of property owners “by entities not authorized to do so.”

Kieffer said the sale of use rights by the board is fully authorized by Cove articles of incorporation and POA by-laws.

He cited Inman’s advice to the board as authority. The Cove attorney also advised the board that, if the directors voted to do so, they could have authorized a vote of property owners to either endorse or reject the proposed sale of use rights.

The board decided not to go the referendum route, a decision that some Cove residents contend deny them their rights to help decide the status of Cove assets. Because developer interests control a significant number of Class A lots in Captain’s Cove along with voting rights, a referendum almost certainly would ratify the sale of use rights if the developer elected to participate.

But some residents contend that any referendum might require unanimous approval of property owners, an idea that Kieffer did not attempt to refute in his post. Instead he said that if such a scenario played out, Cove residents would end up the losers because the CCUC asset sale would not take place.

A requirement of unanimous approval “postulates a hypothetical worst case scenario … that would be a practical impossibility,” Kieffer wrote. “If such a scenario played out, the result would be no sale of our rights, no sale of the land that CCG Note owns to CCUC, no sale of the ten acres to Aqua, and no asset sale, as Aqua’s requirement for a future RIB would not be met.

“Without an asset sale and without a new manager of the utility company, (the Cove POA) would not receive repayment of the $113,000 in demand notes plus interest that is owed it from CCUC,” he continued. “The utility customers of the Cove would continue to be strapped with paying high … rates to a utility company - CCUC- which is a company that is inefficient and doesn’t provide the services that it originally said it would to its customers.”

Kieffer went to say that CCUC customers would not see a new improved sewer system, would not see water meters installed, would not see improved

May - Early June 2015Ocean Pines PROGRESS drinking water quality and, in general, would have very poor quality water and sewer service.

“I do not think any of those outcomes are in the best interest of the Cove Community,” he said.

In recent emails to Cove residents seeking support for a campaign pushing back against the proposed sale, the CCCC included a “sample letter” to the Virginia SCC that seemed to suggest that, so far at least, the interests of many property owners in Section 14 “who may soon be looking at the proposed RIBs from their property” had not been not taken into account.

The CCCC letter also contended that Aqua “in its first presentation” to Cove property owners “indicated they planned on expanding their water and sewer outside” Captain’s Cove. This could mean, the CCCC said, that the ten acres in question would not be used for the “use and enjoyment” of Cove POA members as originally envisioned.

The CCCC letter went on to express hope that the SCC staff “would properly consider the prudence of dumping sewage-related waste products through RIBs adjacent to the Bay. In addition, we believe that certain areas of already existing drainage ditches between Section 14/15 will continue to drain into existing Cove wetlands,” the letter said.

The CCCC also expressed concern that the CCUC will remain in business after the asset sale to provide financing for grinder pumps that will be replacing the Cove’s vacuum sewer system in years to come.

“We believe the utility (Aqua) is the proper entity for providing affordable financing for the pumps which we were told unofficially would be in the area of at least $3,100.00. There are many Class A Members who are CCUC

customers that live and survive within the Cove depending on their Social Security payments. Our hope is that the interest rate provided for pumps will be affordable for everyone,” the letter said.

The CCCC also does not accept the notion that the Aqua purchase will result in lower utility rates for Cove residents than would occur if the CCUC assets remain under current ownership.

If the sale goes through, Cove residents’ “water and sewage rates could be due for a seismic shock-like increase,” the letter contends.

Previously, Hearn, the Cove POA president and CCUC managing partner has said that, on the contrary, Aqua rates will be much lower than would be required if the sale doesn’t go through.

During the protracted approval process, rates in Captain’s Cove have not gone up at all.

Affected Cove residents have until May 12 to file comments on the proposed asset sale or to seek a formal hearing with the SCC. Board meeting – Not having met since this past February, the Cove POA board of directors will meet on Monday, May 11, at 10 a.m. in the Marina Club’s banquet room.

While no agenda had been posted on the Cove Web site prior to the Progress May press time, it would probably be posted late in the week prior to the meeting.

If the Cove Web site’s message board is any indication, one policy question that is likely to be discussed at the May 11 meeting regards the indoor pool, and the fact that it remains closed much of the time because staff is not on duty at the front desk to monitor the pool when it’s being used.

Away on Vacation?

Back home across the bridge?

Stay in touch with Ocean Pines when you’re somewhere else.

Visit OceanPinesToday.com for the latest edition of the Ocean Pines Progress online Important updates are posted throughout the month.

WELCOME TO CAPTAINS COVE So enjoyable ... 2000-acre subdivision with all the amenities: 4 outdoor and indoor pools, 9-hole championship golf and pro shop, 20,000 SF Marina Club, Fitness Center, parks and playgrounds. An easy 45 minute ride from Ocean Pines and Ocean City, and, a scenic 20 minute ride to Chincoteague, Assateague and Wallops Islands.

So affordable....New homes by Grace Construction from $158,500 Ready to build lots with community water and sewer from $9000 37285 Barracuda Ct. 3BR/2BA Jib Model ready to move in, screened porch $158,500

412-02 Blackbeard Rd. Walk to Golf and Marina Club, quiet cul de Sac $9,000

www.ColdwellBankerEasternShore.net EASTERN SHORE

45

1-800-258-5843

Worcester/Accomack North/Captain’s Cove Office - 37054 State Line Road, Greenbackville, Va

LIFESTYLES

March - Early April 2015

Saturday, May 9 Ocean Pines Anglers Club, monthly meeting, 9:30 a.m., Ocean Pines library. Guests: Heather Bahrami, former manager of AKE Marine, and a detailer of boats for more than 10 years, speaking on water spot removal on windshields, compounding, waxing and name removal; Dr Roman Jesian, chief scientist of Maryland Coastal Bays Program, speaking on dredging in local bays and the status of the Bishopville Dam. All welcome.

Monday, May 11 Ocean Pines Camera Club, monthly meeting, 7 p.m., Ocean Pines library. Guest speaker: Irene HinkeSacilotto, on wildlife photography.

Guests welcome. 410-208-904.

Tuesday, May 12 Ocean Pines Boat Club bike ride, all or part of the Lewes-Rehoboth Bike Loop, 6, 8, or 15 miles. Lunch after at the Big Fish Grill, Rt. 1, across from the Tanger Outlets. Joe or Gail Jankowski, 410-208-3470, josephajankowski@ yahoo.com. www.oceanpinesboatclub.org Thursday, May 14 Ocean Pines Garden Club, monthly meeting, 10 a.m., Ocean Pines Community Center. Guest speaker: Warren Pfeiffer on Chrysanthemums.

Visitors welcome.

Saturday, May 16 Town meeting, hosted by Chip Bertino, Worcester County Commissioner for the all-Ocean Pines district 5, Ocean Pines library, 10 a.m.

Issues and developments occurring within the district and Worcester County. Guest speaker, Fred Webster, Worcester County director of emergency services.

Armed Forces Day prayer service, jointly sponsored by Democratic Women’s Club of Worcester County and the Republican Women of Worcester County, 1 p.m., Worcester County Veterans Memorial at Ocean Pines, Route 589 and Cathell Road.

Lawn chairs recommended. In the event of inclement weather, the service will take place at the Ocean Pines library.

Sunday, May 17 Sharing Sunday, 1-3 p.m., Democratic Women’s Club of Worcester County. Collection of non-perishable food, toiletries and paper products at the South Fire Station, Ocean Parkway (South Gate). Supplies will be shared with a local food ministry. 410-641-8553.

Monday, May 18 Democratic Women’s Club of Worcester County, monthly meeting, 10 a.m., Ocean Pines Community Center.

Featuring G. Ray Thompson, a history Professor at Salisbury University. 614322-2119.

HAPPENINGS Thursday, May 21 Pointe Performing Arts Center fundraiser, 9 p.m., Globe Restaurant, 12 Broad Street, Berlin. No reservations necessary, seating begins at 5 p.m. Free viewing of the movie musical Annie on the big screen, along with “It’s a Hard Knock Life” on stage by The Pointe Dance Theatre. A percentage of the dining proceeds will go towards The Pointe Dance Theatre’s production of this year’s annual production of Annie in June. 209-277-0001.

Veterans Memorial Park, South Gate, Ocean Pines, 11 a.m., free event. www.OPVETS.com for additional information.

Saturday, May 23 Worcester County Veterans Memorial, 10th anniversary cocktail party, Veterans Memorial Park, South Gate, Ocean Pines, under the big white tent, 5-7 p.m. Featuring the sounds of USO shows that entertained troops during World War II, performed by Frank Nanna and The WWIIunes.

Also the Singing Waiter, Todd Cosby.

Heavy appetizers, beverages and a cash bar. $25 per person, check payable to WCVMF, mailed to Barbara Robert, 1301 McHenry Court, Ocean Pines, MD 21811. Reservations Barbara Robert, 410-208-3249, or Mary Adair, 410-2080376.

Thursday, June 4 Annual wine tasting luncheon, hosted by the Women’s Club of Ocean Pines, 11:30 a.m., Harrison’s Harbor Watch, Boardwalk at the Inlet in Ocean City. Cost of $33 includes lunch and the pairing of a wine per course.

Reservations, Kay Hickman, 410-6000552, no later than May 28.

Monday, May 25 Annual Memorial Day elebration,

Thursday, May 28 Ocean Pines Association, Board of Directors, monthly meeting, 3 p.m., Community Center’s Assateague Room. Agenda and board packet posted on OPA Web site a few days before meeting.

Thursday, June 11 Ocean Pines Garden Club’s annual garden tour and luncheon.

Tour (rain or shine), 9 a.m. to noon, featuring local artists as well as local garden vendors. Registration 9 a.m., Ocean Pines Yacht Club. Luncheon, 12;30 p.m., Yacht Club. Deadline for luncheon reservations is June 4. Choice of entrees: grilled chicken,

mozzarella and pesto panini with a side salad; strawberry spinach salad with marinated chicken topped with goat cheese and almonds; or vegetable lasagna w/ side Caesar salad. Chef’s choice dessert and coffee, hot or iced tea included. Cash bar. Tickets for tour only $10.00. Tickets for the tour and luncheon $30. Reservations, 301-385-0839.

Ongoing Free platform tennis clinics, Saturdays at noon, Manklin Meadows tennis complex. Bring sneakers, the rest is provided. Annual memberships start at $150.

“Ask a Master Gardener” clinic, Ocean Pines Library, 11107 Cathell Road, Ocean Pines, May to September, every Tuesday afternoon, 1-4 p.m.

Sponsored by the University of Maryland Cooperative Extension Service. Free.

Master Gardeners will be available to help you with your gardening questions.

Have bugs or other plant problems?

Penny McGrath, master gardener, 41064l-5570, plantladyop@aol.com.

Pine Tappers free adult tap dance classes, Tuesdays, 2-3:30 p.m., Ocean Pines Community Center. Exercise and have fun with choreographed tap dancing routines. From 2-2:30 p.m., brush up on basic techniques and a review of the routines, then join the regular class from 2:30-3:30 p.m. Every week or drop-in as convenient. Lori at 410-251-2162 or tntandcompany@gmail. com.

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46 Ocean Pines PROGRESS

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B

March - Early April 2015

COMMENTARY Yacht Club ‘final’ agreement a satisfactory outcome

y any fair assessment, the final agreement between the Ocean Pines Association and Harkins Construction over $150,000 in change orders and several tens of thousands of dollars in work performed by the OPA’s Public Works Department at the new Yacht Club is a satisfactory outcome to about a year of wrangling over money.

Anytime such a process can end without either party feeling a need to resort to arbitration or lawyering up is a good day for everyone.

So OPA General Manager Bob Thompson, Public Works Director Eddie Wells and Yacht Club task force member Ted Moroney can feel some justifiable pride in delivering a final contract resolution that cost the OPA roughly $11,000 more in fees.

Given the amount of cash that was being negotiated over, the outcome could have been a lot worse for the OPA than it was.

The three also delivered a final report on the Yacht Club project that summarizes lessons learned in the process, and includes a final “dashboard” of costs. The dashboard purports to show that the project came in under budget, just barely, and that the OPA therefore avoided those embarrassing, nasty cost overruns that everyone pretends to hate so much.

More on that later.

The “lessons learned” portion of the report on the surface offers up some useful, hard-hitting self-criticism, at least on the surface, but also seems somewhat self-serving when it blames some difficulty in the working relationship between the OPA, Harkins and some of its sub-contractors – the architect and kitchen consultant in particular – on a policy preference by the OPA Board of Directors for something called “modified design build.”

The task force comes out in opposition to this approach because, they say, decision-making and accountability needs to be under one roof, under a pure design-build approach including in-house architectur-

al services, or under two roofs, with an independent architectural firm doing design work and a successful bidder following detailed architectural specifications in putting up a building.

The hybrid approach adopted by the board invites dysfunction, according to the task force, and this is a “lesson” that at least needs to be considered in the run-up to any new large future project.

There is also the possibility that some of the dysfunction had more to do with the way the personalities involved worked or didn’t work with one another rather than any inherent flaw in the “modified design-build” methodology.

Both the architect and the kitchen consultant were supposed to be working under the umbrella of Harkins, with oversight by the OPA, and perhaps this is where the difficulties arose.

Recall that at one point in the process, Thompson and Moroney were barely on speaking terms, and it took some board intervention – board micromanaging if you will – to get the process on track and Moroney, an experienced contractor by trade, again intimately involved in planning and oversight. Maybe by the time this relationship was repaired the bulk of the dysfunction was in the past. We’ll probably never know for sure.

What seems to be clear is that Moroney’s involvement eliminated a lot of dysfunction that might have occurred had he not been directly involved.

One “lesson learned” from the experience but not included in the report: Someone the caliber of Moroney needs to be in charge of OPA oversight on any future project of any magnitude.

The final report glossed over real design flaws in the building that are manifestly evident now that the building has been open for a year.

The downstairs bar was perhaps the most egregious flaw, as it clearly is too small to accommodate demands for service. The upstairs is a mausoleum, too

cavernous and acoustically challenged to be the sort of place where small groups want to hold their events.

Who was responsible for this? How much is it going to cost to fix it and when? The final report is silent on these points.

As for the dashboard purporting to show that the final cost of the building was right on budget at roughly $4.7 million, two points of refutation need to be made.

The first is that $4.7 million is not what property owners approved in referendum. The board added about $500,000 to the approved amount to address a major screw-up: the need for new kitchen equipment once it became evident that the old equipment could not be recycled for use in the new building.

It does not take a conspiracy theorist to suspect that the assumption that the old kitchen equipment could be used was a very convenient one and had the effect of keeping the cost down as a way to improve the odds for a successful referendum.

The additional $500,000 was an unbudgeted cost over-run, simple as that.

In addition, the $4.7 million that appears on the final dashboard conveniently omits another $141,000 or so in capital spending approved for the Yacht Club this year to address omissions from the original project.

The approved capital list includes $17,972 in new kitchen equipment, $26,877 in a tiki bar draught beer delivery system, $25,000 in tiki bar hurricane shutters, $20,000 in a second fire pit, outdoors fans, and a big screen tv for the downstairs bar area.

When doing a final tally on the costs of the Yacht Club, these items need to be added to the total, regardless of whether they’re retroactively added to the dashboard.

The same is true when somebody proposes to do something about the mausoleum upstairs and that teeny-tiny bar downstairs. – Tom Stauss

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From Page 42 Ocean Pines Ping Pong Club, Ocean Pines Community Center, Monday noon to 2 p.m, Wednesday and Friday noon to 3 p.m. All levels of players welcome. Neil Gottesman, 732-773-1516.

The Kiwanis Club of Greater Ocean Pines – Ocean City every Wednesday at 7:45 a.m. in the Ocean Pines Community Center.

Sanctioned duplicate bridge games, Ocean Pines Community Center, Sundays 1 p.m., Mondays noon, Tuesdays 10 a.m. Partners guaranteed. $5, special games $6. Third Sunday of every month is Swiss teams (no partner guaranteed for teams). Felicia Daly, 410-208-1272; Pat Kanz, 410-641-8071 The U.S. Coast Guard Auxiliary, Flotilla 12-05, meets the first Monday of each month at 7:30 p.m. in the U.S.C.G. Station, Ocean City. Visitors and new members are welcome. Dennis Kalinowski, 410-208-4147. ife after loss support group, second and fourth Tuesday of each month at the Community Church at Ocean Pines, 11227 Race Track Road, Berlin, 11 a.m.

OPINION

COMMENTARY

May - Early June 2015Ocean Pines PROGRESS

49

A few positive developments in Ocean Pines

L

est someone out there in readerland conclude that the Progress has little positive to say about the way Ocean Pines is being run, here are some recent examples of where the Board of Directors and General Manager Bob Thompson have performed well.

Granted, it was in a 4-3 vote, but a board majority at last has decided to return $450 to Star Charities for a fund-raising event the group hosted recently in the Community Center. The fee was improperly extracted from Star Charities in the first place, in contravention of a reasonable application of existing use policy, and so any delay in refunding the money as a new policy is under development was improper. It took several months and some leadership by OPA President Dave Stevens and Vice-president Marty Clarke, but the injustice was at last cured at the board’s April 30 monthly meeting.

General Manager Bob Thompson has had an unpleasant time lately dealing with a board that is not willing to rubber-stamp his every move. It would be safe to say that he at times has reacted to the enhanced oversight in less than constructive ways. He even has one of his board supporter/cheerleaders contending that the board is engaging in micro-management that has run amok, when in fact it’s little more than proper oversight of the hired help. It’s not micromanaging to recalibrate and revitalize the important oversight role a well-functioning board should exercise over the

general manager. That’s what last summer’s election was about, in part, along with the overly generous compensation package that the then board approved for Thompson early in the year. Thompson’s role will probably be front and center as an election issue this summer, too.

Thompson at times can be too slow in dealing with maintenance issues, such as the splash pad that apparently won’t be open in time for Memorial Day weekend.

But he has made up for that little faux-pas by coming up with a creative improvement at the Beach Club this summer that arguably will affect more people than a delayed reopening of the splash pad.

Rather than wait until the fall to install a new fence and an expanded deck at the Beach Club, Thompson has decided to proceed with new fence installation immediately, while expansion of the concrete decking will still be delayed, if it occurs at all.

Thompson’s new idea is to fill the area where the concrete decking is proposed with white sand, palm trees, lounge chairs, tables, picnic tables and the like, making roughly 4000 square feet of additional space usable by the membership this summer. If the improvements are a hit – and there’s no reason they won’t be – then it’s possible the $100,000 budgeted for the decking this fall may not need to be spent. It’s not just about money, though. This project will add to the ambiance of this aging amenity and will make

it possible for the pool area to accommodate many more people than heretofore had been possible.

There’s also word that Thompson is getting behind a project at the Sports Core indoor pool in late summer to resurface the pool and improve the concrete decking, along with other improvements at this facility. Perhaps he’s tired of Clarke constantly carping about a project that’s been in the budget for five years without any discernible evidence that Thompson is serious about accomplishing it.

No matter why he’s doing it, these are all good moves and it’s precisely what a general manager should be doing to earn his keep. Keep it up and he won’t have anything to fear from a resurgent board.

– Tom Stauss

Search Committee call-out It was gratifying to hear OPA President Dave Stevens offer a full-throated defense of the obsolete Search Committee at the April 30 Board of Directors meeting, even if a commentary in the previous edition of the Progress was the foil for his remarks.

No offense taken. Let’s just say that he took the bait in a way that offers another opportunity to explain why the committee should be buried at the earliest opportunity, even if it requires changing the bylaws.

Prospective candidates for the OPA board shouldn’t need to be coddled and cajoled to run for office. It really is as simple as that. -- Tom Stauss

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OPINION

May - Early June 2015

Why Marty Clarke opted not to seek re-election

B

arring some last-minute change of heart, Ocean Pines Association Director Marty Clarke won’t be a candidate for reelection this summer.

That’s too bad. Perhaps more than any other director, Clarke has been a stalwart advocate for conservative OPA spending practices and adhering to approved budgets. He will be difficult to replace. Had he decided to seek another three-year term as a director, he would have been shoo-in for reelection, a claim that relatively few incumbents could credibly assert over the years in Ocean Pines.

Clarke tells friends that his decision to bow out doesn’t mean he’s going to sit back and tune out the dull roar of the “system” such as it is in Ocean Pines.

He plans to stay active, and who knows, maybe he will launch some referendum petition drives to accomplish via plebiscite what he couldn’t accomplish as a director.

Maybe he’ll consider another run for the board after a year’s lay-off. That’s a formula that has been successful in Ocean Pines in the past; property owners seem to reward the occasional candidate who doesn’t seem to need the position and is able to take time off from the spotlight to refresh, reflect and reenergize. Clarke won his three-year term back in 2012 after just such a layoff. So did Dave Stevens last year. Dan Stachurski did it a few years ago. Perhaps lightening will strike in a good way for Ray Unger, who’s making a second try at a comeback. He’s going to have to work on a message, though. That he’s kind of bored and enjoyed his previous stints on the board and thinks he can be a bridge-builder between competing

a glacial pace – is a powerful force that few can resist. Clarke could, and he’s to be commended for it.

An excursion through the curious cul-de-sacs Perhaps OPA President Dave SteAn excursion through theby-ways curious and by-ways and cul-de-sacs vens of Worcester County’s most densely populated community. of Worcester County’s most densely populated community.could have collared his erstwhile allies together to hammer out a budget

By TOM STAUSS/

By TOM Publisher STAUSS/Publisher deal, but for whatever reason – too much on his plate, inability to decide what sort board factions isn’t exactly a ticket back both. The result is that the inability of of budget he really wanted until it was to the table. the four member coalition to stay to- too late, frustration at Clarke’s frequent This year would have seemed a gether on an important issue related to forays into bombast, opposition in the no-brainer for Clarke to have run for the budget means the board is losing a end to what Clarke really wanted to another three-year term. After last member who has been right on so much accomplish – that meeting never took place. Clarke felt betrayed, understandsummer’s election, he was part of a new over the years. four-member board coalition that, had it Much has been said about the “com- ably; those who voted for Renaud and stuck together, could have pretty much promise” struck between directors Tom Stevens thinking they were getting two dictated OPA policy on all fronts for the Terry and Pat Renaud on the budget candidates who agreed with Clarke on next year. this past February and March, suppos- this fundamental issue of assessing and It hasn’t worked out that way, and at edly giving both factions on the board spending have reason for disappointtimes Clarke’s frustration level has been something they could like even if they ment.

The coalition they thought they were off the charts, much of it directed at his didn’t get everything they wanted. getting is a mirage, for the most part. Its erstwhile allies who, in his view at least, Here’s another way to look at what haven’t lived up to their potential. It occurred, and it is a perspective not en- most notable achievement was staying would be too facile to attribute his short cumbered by “let’s all get along” senti- united on a decision to change management at the Ocean Pines golf course. fuse to the personal tragedy he has en- mentality.

So in the absence of leadership from dured this past year with the loss of his If indeed the budget that was finally Stevens on the budget, former OPA wife, though it might have been a factor. struck was a compromise, it was a compresident Tom Terry stepped up and No, what drove him to retire from promise made necessary because the the board when his term ends this sum- coalition of Stevens-Collin-Clarke-Re- worked out a so-called compromise with mer was a simple matter of keeping a naud was unable to agree on a budget Pat Renaud, with whom he’s developed promise to his erstwhile board allies. He outline. Clarke really wasn’t a member a rapport. Both are church-goers, both made it clear that if they did not sup- of a four-person coalition when the rub- have mastered the fine art of corpoport his budget plan for the new fiscal ber hit the road on the budget. He was rate-speak, neither seems wired for con-

LIFE IN THE LIFE INPINES THE PINES

year, specifically his proposal to effectively eliminate the five-year-plan extortion that supplements the OPA’s major maintenance and replacement reserve, he would not run for reelection this summer. They didn’t and so he isn’t.

Depending on your point of view, his decision was either unjustified pique or commendable consistency and follow-through. Or it could be some of

a coalition of one. His erstwhile allies in the end didn’t want to give up the cash flow represented by the five-yearplan funding; they didn’t then and who knows whether they will in the future.

Collecting and holding on to other’s people’s money – even when there is no plan to speak of to spend it, only a capital improvement plan that is in seminal stages of development, progressing at

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The Ocean Pines Progress, a journal of news and commentary, is published monthly throughout the year.

It is circulated in Ocean Pines, Berlin, Ocean City, and Captain’s Cove, Va. Letters and other editorial submissions: Please submit via email only.

Letters should be original and exclusive to the Progress. Include phone number for verification.

127 Nottingham Lane Ocean Pines, MD 21811

PUBLISHER/EDITOR Tom Stauss tstauss1@mchsi.com 410-641-6029

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May - Early June 2015Ocean Pines PROGRESS

LETTER Different approach, but same result?

Now that the Board of Directors has settled on a new management team for the golf course it is time to comment on the new marketing approach of Landscape Unlimited.

The new vendor at least was honest enough to admit that the Ocean Pines course cannot “compete on price” with the 16 other courses in the immediate area. So, they will increase membership by attracting residents with… what?

Good will? Here are the benefits and cost of joining another nearby course: Two on site courses of completely different styles.

Unlimited play with a cart and the

frontation if it can avoided, both demonstrate an ability to work across factional lines, sometimes voting with one faction, sometimes with the other. In some respects they’re their own coalition of two.

But make no mistake: The so-called compromise on the budget was heavily weighted to the Terry position on the five-year-plan funding, which represents a $1.1 million annual extraction from property owners. Clarke wanted to use most of it to pay off some negative balances in various reserve funds and fund road depreciation, with a significant portion of it to be returned to property owners in the form of lower assessments.

Terry wanted to park most of it in the major replacement and maintenance reserve, and that indeed is what will happen. Roughly $150,000 or $175,000 or so of it will be used to pay for some new capital expenditures this year; that is a change – a compromise if you want to call it that – from prior years, when “new capital” expenditures would have caused the assessment to rise.

A little less will be parked in the replacement reserve this year as a result of the “compromise.”

Terry supposedly “gave” away $150,000 or so in personnel costs that seem to have shown up in the approved Yacht Club budget, as if that was a significant concession that has any chance of happening in the real world. The “cuts” have resulted in a paper surplus at the Yacht Club, according to the budget. That, to put it mildly, is a joke. Does anyone really think the Yacht Club this year is going to show a surplus? Not likely, especially if the powers that be decide to keep the place open over the winter so the intelligentsia can play trivia games.

Renaud didn’t exactly get snookered by his smooth-talkin’ colleague, Terry, but he didn’t get very much in the way of a compromise, either.

It’s kind of sad, really, the way it all turned out.

Saddest of all is that property owners are losing a director who, far more than most, has convictions and is willing to go to the mat for them.

right to reserve tee times months in advance.

Playing privileges at two other courses, including one designed by the greatest golfers of all time. Cost per round: $20 USGA handicap service.

Unlimited range use.

A 20 percent reduction in pro-shop items.

A $100 gift card for the pro-shop.

Member’s only events.

The cost for all this is $2400. The same package at the Ocean Pines course costs $4300.

I think that about says it all.

Reggie Shephard Jr. Ocean Pines

51

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