Ocean Pines Progress September 2018

Daly calls out OPA for indifference on facility upkeep Hammering home the point that he believes the Board of Directors, general manager, and staff have all been negligent over the years by failing to maintain its facilities and ensuring employees have the tools necessary to do their jobs, newly elected Director Frank Daly repeatedly called out the Ocean Pines Association for fostering a “damnable culture of indifference.” He said the OPA has for decades ignored the maintenance needs of the association’s facilities. ~ Page 13

Board pressured to eliminate S&R bulkhead staging The Board of Directors continues to be under pressure from residents in the neighborhood of the Swim and Racquet Club to remove the bulkhead repair and replacement staging area located in a dock area adjacent to the club pool. Opponents cite safety, aesthetic and environmental reasons for their continuing push to have the staging area relocated.

Opponents say the staging area hurts their property values and enjoyment of their waterfront properties that are within view of the site. ~ Page 15

Hill to drop suit against directors on ballot exclusion Brett Hill, the former acting general manager and elected director who filed an amended complaint with the Worcester County Circuit Court asking for the court’s “immediate intervention” in his dispute with Ocean Pines Association Secretary Colette Horn over his blocked candidacy in this summer’s Board of Directors election, has decided to drop his suit against Horn and members of last year’s board of directors. ~ Page 21

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COUNTRY CLUB SNAFU Builders decline to bid on second floor renovation Trendic, Parks spar over failure to allow directors to review bid specs; Bailey to try again with fewer options and no penalty provision

By TOM STAUSS Publisher rea builders gave a resounding thumbs down to the Ocean Pines Association’s request for proposals for the Country Club’s second floor renovation project, with no contractors submitting bids by the Sept.

7 deadline.

OPA General Manager John Bailey suggested giving contractors an additional month to submit proposals. He proposed tweaking the earlier RFP in an effort to attract bidders.

Among the changes Bailey cited during his Sept.

8 manager’s report, he called for eliminating liability provisions that would have kicked in if the successful contractor had failed to complete the work by the date spelled out in the construction contract. A completion date would also be eliminated, although contractors would be asked to submit a date when they believe the work can be completed.

He would also reduce the number of moving parts in the RFP, 11 options over and above the base project. Once a contractor is secured, Bailey said the project could be valued engineered -- a bureaucratic term for change or-

A

ders much beloved by contractors -- with components added or deleted depending on cost.

Bailey blamed the lack of bids on a robust economy and concerns about the liability provisions.

He suggested eliminating four options that covered deck railings (cable or vinyl), and replacement exterior siding (vinyl or shingles).

He recommended making six items part of the base bid, including an outside wood deck, replacement windows, new gable windows, conduits for future work, interior blinds, and an elevator.

An 11th option, roof changes, he would reconfigure in order to reduce cost and complexity. To solve leak issues, he suggested replacing all roof shingles with new ones and new flashing in a raised roof area over the main meeting room.

The flat roof portion of the building over the Tern Grill, repaired in 2017, would remain as is, Bailey said. It turns out those repairs were covered by a 20year warranty.

It appears that other design changes in the roof line would be eliminated, at least for the time being.

To Page 40

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OCEAN PINES

Diller, other new directors fulfill campaign promise to explore alternatives to NorthStar software package

F

W

tions can be performed well and at less cost to the OPA by an outside company, making it possible for the OPA to avoid the expense of having to purchase or lease a software package licensed by a vendor such as NorthStar Technologies.

Viola will play a key role in preparing the RFP and vetting the proposals received. Bailey on the other hand has been an opponent of the outsourcing option in recent months, urging the board to accept the NorthStar proposal.

Director Esther Diller offered the motion to instruct Bailey to issue the non-binding RFP for comprehensive turn-key homeowners association management services, including informational technology solutions.

Her motion called for the general manager to draft the RFP by Sept.

30 and to present any responses to

Bertino to host Sept. 29 town meeting

orcester County Commissioner Chip Bertino of District 5 (Ocean Pines) will host a town meeting on Saturday, Sept. 29, at 10 a.m. at the Ocean Pines library.

He will discuss issues and developments impacting the Ocean Pines district and the county. Commissioner Bertino’s guests include Worcester County School Superintendent Lou Taylor and representatives from Worcester County Commission on Aging (WoCOA).

Superintendent Taylor will give an update on the construction of the new Showell Elementary School and the results of the most recent student testing.

Representatives from WoCOA will talk about the new Maryland Community For Life Program, a state pilot project in Ocean Pines de-

Chip Bertino

Jim Bunting

signed to enhance the quality of life for seniors living in the community.

Commissioner Jim Bunting will join the meeting as well.

Bertino, a Republican, will be on the General Election ballot in November. He is running for re-election in a contest with Judy Butler, a Democrat.

Bunting is running unopposed in a district composed of parts of North Ocean Pines. Bunting also is a Republican.

the board for review by Dec. 7. Other directors found her motion a little too far-reaching, instead voting 6-1, with Collette Horn opposed, to approve an amended version focusing on just the financial management aspects of the OPA. In making her motion, Diller said the OPA is currently budgeted to spend more than $1 million on new software over six year, but has not considered the costs for the same time period of turnkey outsourcing.

She said her motion will “bring other options to the table prior to spending such a large sum of money, so not only the software issues at hand might be addressed, but also the business processes of the association.” This will hopefully result in a reduction of dollars spent to achieve the same goals of the existing capital project, she added.

T

As background for her motion, Diller said the OPA has for decades been operating many front and back-office functions using outdated and poorly integrated software that has limited functionally and costly support services.

She said the OPA has reached a critical point and is no longer able to manage day-today operations successfully and efficiently in a financially prudent manner. Therefore, the board must weigh all potential options for improvements to its management services, including outsourcing of those functions, she said, suggesting that any OPA functions that use the outdated LANSA software package should be included in the RFP, she said.

Director Slobodan Trendic said Diller’s motion was trying to address a problem that has existed for a long time. “We have an issue. We are running outdated technology.

We are running all sorts of business functions within the organization on a custom code that only one vendor is supporting right now.”

He said that is an unacceptable business risk. “It’s something that’s been known as a need for quite some time and to not do anything is the wrong position of the board to take,” he said.

Diller agreed and said she is just putting forth a business strategy that any large business would take q

OPA to explore options for outsourcing finance department

By ROTA L. KNOTT Contributing Writer ollowing a lengthy discussion on Sept. 8, the Board of Directors instructed General Manager John Bailey to issue a non-binding Request for Proposals for back office financial management to include software, staffing options, and necessary information technology support for the Ocean Pines Association. The general manager and OPA treasurer and Chief Financial Officer John Viola will prepare and issue the RFP by Oct. 1 and present the results to the board Dec. 1.

Viola, the chairman of the OPA’s Budget and Finance Advisory Committee, has been open about the desirability of exploring outsourcing finance functions since at least this past February. He told the Progress that he believes that financial func-

3

September 2018 Ocean Pines PROGRESS

Board votes to approve Country Club architectural and engineering costs

he Board of Directors in its Sept. 8 regular meeting approved architectural and enginering costs for the Country Club’s second floor renovation project in the amount of $21,856 for services to date and authorized up to $8,000 for additional work through the RFP decision making process and contract negotiation.

All A&E costs are funded through the major maintenance and replacement reserve.

The action was on a motion offered by Director Ted Moroney, who said that changes to plans were made to add an elevator and to include structural, architectural, electric and mechanical design issues discovered during inspections.

In addition, Moroney said changes in the plans allowed for multiple options and alternates, including drawings and specifications, so that board will be able to “choose the best value long term by identifying, by cost, those added selection options.”

In further discussion of his motion, Moroney said that while all costs associated with the Country Club will be identified in the final selection process, “this motion recognizes changes and costs to date and potential costs through award of a construction contract.”

Moroney’s motion anticipated that builders would respond to the recently issued request for proposals for the Country Club renovation and would include costs associated with the various options in their proposals.

OCEAN PINES

September 2018

Outsourcing From Page 3

on to improve its operations. “Something has to change. We have to at least look at options.”

Horn made it very clear she was not interested in exploring outsourcing options.

“I do not support this,” said Horn, a proponent of moving forward with the Northstar proposal to get new software in place for use by the OPA. She was concerned about the risk of waiting and getting new proposals to outsource operations. “The concern that I have is the cost of this experiment and the biggest cost is the risk. We have an unsupported software environment. Any day could blow up and we have nothing.”

Horn argued the OPA has researched and prepared with a cost effective alternative to solving the known problem by acting on the Northstar proposal. She said that “known deficiency” is in the software itself, not staffing. “I’ve seen no evidence that the management

itself is the problem. I think the board may be the problem. We keep delaying these decisions and dabbling in the operations work and decision-making that should stay with the GM and the department heads,” she said.

Horn was also concerned about whether the board would get a true comparison between the NorthStar proposal and any responses to an RFP issued as a result of Diller’s motion. “In research what we look for is validity of results. We want to have a comparison that we can count on giving us a valid prediction on what the cost savings will be and what we can expect in the future,” she said.

Under an outsourcing scenario, Horn also questioned whether current OPA employees would be rebadged by the company assuming operations.

She said she would “definitely want to do that” because “they’re doing a great job.” But, it wouldn’t be the board’s decision if it contracts with an outside firm to manage as-

sociation functions, she said.

“They’re going to own those people. We will not,” she said, adding that even if they keep existing OPA employees, they could be sent to a different work location.

While saying he supported the general concept, Director Frank Daly was the first to question the scope of Diller’s motion. He said he still has questions about the NorthStar proposal for new informational technology that he would like addressed as well. On the point of how the board will be able to compare the NorthStar solution with other proposals, he agreed with Horn.

He said the board needs to be able to thoroughly explore its options, including outsourcing.

Daly noted that General Manager John Bailey had requested the board approve the NorthStar contract so the appropriate software could be installed and operational by next fiscal year. He said he wants Bailey to “tell us what you need to do that,” how quickly it can be done, the cost, and the exit program if

the board finds a better alternative.

Then, he argued, the board would have a basis for comparing the NorthStar proposal with competing outsourcing models.

Director Steve Tuttle also questioned the scope of the motion when Diller said every department that using the LANSA software would be included in the outsourcing proposal.

He asked how many departments that would include because it “sounds like that’s everybody to me.”

Tuttle said the focus of the motion needs to be narrowed down.

“My concern is this is just too broad a scope right now,” Tuttle said.

Director Ted Moroney agreed, saying “this thing is written as though we are turning it all over.”

He said Diller’s motion was very broad,” and asked, “What are the core areas we’re talking about?”

However, he said he is in favor of looking at outsourcing or at least getting pricing on outsourcing the financial backbone of Ocean Pines. q

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“What I am not interested in doing is outsourcing the entire operation, the entire management of Ocean Pines,” Moroney said.

He said he would be comfortable with soliciting an RFP for outsourcing the transactional side of operations and comparing the results to the NorthStar software proposal. He said the board needs to proceed on dual tracks to get all of the information it needs to make an informed decision.

“I agree in concept,” OPA President Doug Parks said of soliciting outsourcing proposals. That represented a shift for him, He had previously been a staunch proponent of proceeding immediately with the NorthStar software package.

At a board work session Sept. 1, the board’s center of gravity on the issue had clearly shifted in favor of at least exploring the outsourcing model through the issuance of an RFP. By the Sept. 8 regular meeting, Horn was the only director still resisting.

Parks said there is benefit in evaluating options for both new software and labor in the finance department, but that’s as far as he was willing to

go. He called it “ludicrous” to consider outsourcing management of the entire organizational management structure when the board should be focusing on an area already noted as having challenges.

“If it goes beyond that, it’s far too nebulous for me at this point and I wouldn’t be in support of that,” he said.

Trendic argued that the RFP needs to also consider areas like customer relationship management, human resources, marketing, and purchasing functions because they are so closely connected to finance.

He said the OPA can’t start with just financial management without considering some of the other areas that are directly linked to and have an impact on financial operations.

Parks said all of those ancillary areas were included the lengthy software study that led to the recommendation to purchase the NorthStar package.

“Do we go back and start at pretty much day one and add the labor factor in, in which case we’re no closer, or we compartmentalize it and get something that we can at least factor in to a comparison,” he said.

Moroney said as a normal outcome of looking at the financial q

Outsourcing

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functions the other pieces “will be sitting out there to allow us to pick and choose what we need.”

Based on the board discussion, Moroney ultimately offered a “friendly amendment” to Diller’s motion, to which she consented, to focus the RFP only on the back office financial management to include software, staffing options, and necessary information technology support for the OPA. After the meeting, Diller told the Progress that she agreed to the amended motion for pragmatic reasons.

“You have to start somewhere,” she said.

Trendic previously has indicated that he’s open to the idea of a hybrid management model, in which most but perhaps not all management of the OPA is outsourced to organizations that perform key functions more competently and at less cost than the OPA can do it in-house.

For the present, at least, the focus will be on finance functions, with six of seven directors interested to varying degrees in the possibility of outsourcing.

Beyond that, it’s too soon to say.

Even so, the motion represents a vindication of sorts for a former director, Tom Herrick, who retired from the board this past August after three years as a director, one year as president. This past year, Herrick often found himself out-numbered and out-voted on issues that mattered to him.

He was the only director earlier this year solidly in favor of issuing an RFP for financial management functions.

The amended motion offered by Diller was essentially the same motion offered by Herrick that failed 6-1 earlier this year, with only Trendic expressing some support for it.

As an alternative to an RFP, a majority of directors had indicated that it was willing to issue a request for information, or RFI, for outsourcing financial functions, but Herrick held out for a RFP. He argued, to no avail, that an RFI was only a half-hearted, insincere effort to explore outsourcing.

Only an RFP would be able to yield well-developed proposals for alternatives to in-house financial management, Herrick contended It took three new directors elected by the OPA membership to help deliver what Herrick had pushed for earlier this year.

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OCEAN PINES

September 2018 Ocean Pines PROGRESS

Parks re-elected president of OPA Trendic receives two votes, including Esther Diller’s in voice vote

By TOM STAUSS Publisher oug Parks was re-elected president of the Ocean Pines Association in an Aug. 19 organizational meeting but not without a recorded voice vote in which Director Slobodan Trendic received two votes, including his own.

Parks, who maintained somewhat frosty relations with Trendic in the 2017-18 board term, was nominated by newly elected director Steve Tuttle, who came under some pressure on oceanpinesforum.com to agree to serve as association president in 2018-19.

Tuttle was the top vote-getter in this summer’s OPA Board of Directors election.

Tuttle told the Progress following the meeting that he had weighed the views of residents on the forum but decided for the sake of “continuity” that Parks should remain as president.

He did not directly respond to a Progress question about whether he regarded Trendic as too controversial to head up the OPA for the coming year.

Newly elected director Esther Diller voted for Trendic as president, and indeed nominated him for the position.

Diller after the meeting said she wanted to send a message to Parks by nominating Trendic, adding that she nonetheless was OK with Parks as president and would give him the benefit of doubt at the beginning of the new board term.

She said she didn’t want a repeat of last year, when she said certain

D

Doug Parks

Steve Tuttle

actions were taken without the awareness or participation of all board members.

She said she has every expectation that Parks will be fully collaborative and the board fully transparent in its meetings and decisions this year.

Voting for Parks as president

I

were Parks and directors Frank Daley, Colette Horn, Ted Moroney and Tuttle.

In past years, voting for OPA officers was done through paper ballots or, on occasion, by voice acclamation.

This year, on a motion by Trendic, the directors voted to handle the election of officers by voice vote, the way most board business in public is conducted.

Other officers elected by the board include Tuttle as vice-president, Horn for the second consecutive year as secretary, and John Viola, who chairs the OPA’s Budget and Finance Advisory Committee, as treasurer.

Michelle Bennett was named assistant secretary, while Gene Rings-

Board renews Lerch-Early as general counsel, local attorney to be named later

n the face of legal expenses that have cost the Ocean Pines Association almost as much after three months as was budgeted for the entire 2018-19 fiscal year, the Board of Directors could have advised management to cut back on services rendered by the OPA’s non-local law firm, Lerch Early Brewer of Bethesda.

At the board’s organizational meeting Aug. 19, no such directive was issued. Indeed, there is no indication that any director is unhappy with the quality of services provided the OPA by Lerch Early attorney

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Jeremy Tucker, who subsequently provided a summary of OPA organizational and legal documents, and an update on legal matters, during an orientation for new board members later in August.

The Lerch Early firm has been credited with a more aggressive collection policy with respect to deliquent assessments, producing revenue for the OPA that might not have materialized otherwise.

The only hint that the board might be looking for legal services less expensive than those of a Bethesda law firm was a remark

7

dorf continues in the role of assistant treasurer.

After Moroney suggested Trendic as parliamentarian -- he declined -- Moroney then suggested, as a temporary solution, that the Lerch Early law firm serve as OPA parliamentarian.

The law firm that handles most OPA legal services doesn’t normally send a lawyer to OPA meetings, so it’s unclear who will resolve parliamentary issues should any arise this year.

According to the board’s Sept. 9 meeting agenda, Parks initially had proposed General Manager John Bailey as another assistant secretary. He would have joined his administrative assistant, Bennett, in that role. But without explanation, Parks announced that he was rescinding that motion from the meeting agenda. made by Director Ted Moroney when he proposed renaming the Lerch Early firm and Tucker as the OPA’s general counsel.

Moroney said the OPA will be shopping for local counsel to supplement Lerch Early in the coming months.

Whether that actually happens, of course, remains to be seen.

Factors in legal expenses exceeding budget for the first quarter or third of the 2018-19 fiscal year has been the protracted effort to draft a new Mediacom contract and Brett Hill’s law suit against the OPA and OPA secretary Colette Horn for denying Hill’s application to be a candidate for the board this summer.

Hill recently told the Progress that he will be dropping the suit.

[See separate article in this edition of the Progress for details.]

8 Ocean Pines PROGRESS

r e l t u B y d u J Meet Your Candidate September 2018

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OCEAN PINES

September 2018 Ocean Pines PROGRESS

Bailey scales back collie program, skirts funding issue

B

ack in July, General Manager John Bailey to much fanfare announced that he was bringing in a team of collies managed by a firm based in Columbia, Md., to be on the front lines of the Ocean Pines Association’s battle against resident and itinerant Canadian geese that take up residence along and in Ocean Pines South and North Gate ponds.

By the Sept. 8 meeting of the OPA’s Board of Directors, the shape of the collie program seemed far less robust than it had on the original announcement.

Bailey told the directors that it was a trial program, scheduled to launch sometime this fall.

He said it would involve a team of trained collies that would patrol the perimeter of the ponds for a period of six weeks, costing $625 per week for a number of hours per week he didn’t specify.

He acknowledged that the program would cost $32,500 for an entire year, an expenditure that would exceed the $15,000 budget for wildfowl control during 2018-19. He acknowledged that he would need board approval for that expenditure, something he isn’t asking for and might not receive if he did seek board approval.

He said the six-week trial program would still leave about $4,000 in the wildfowl control budget for him to spend.

He didn’t say whether he would extend the trial program if it proves to be successful.

Bailey has come under withering criticism from residents in Ocean Pines incensed about a recent program initiated to euthanize anywhere from 250 to 300 geese back in July.

A group of Ocean Pines residents is meeting regularly at the Ocean Pines library and other locations in an effort to keep what they called a geese massacre alive as an issue in Ocean Pines.

Should the collie program fail, he and the OPA will be under pressure from this group avoid euthanasia in the future as a solution to goose over-population at the association’s ponds.

Back in July, Bailey addressed

the controversy about the euthanizing of hundreds of geese who called Ocean Pines their home, and said he hopes it won’t have to be done again.

“No one, and I repeat no one, wants to euthanize geese including the employees of the Unites States Department of Agriculture, Wildlife Services Agency, the members of the association’s Environment and Natural Assets Committee, the OPA staff, the Board of Directors, nor this general manager. However sometimes things of this world simply do not match up with our desires. Be that as it may we all have a role to play in trying to prevent such an action from becoming necessary again,” Bailey said.

He told the assembled residents at the meeting, some of whom protested the goose kill outside the Community Center before the July 27 meeting began, that the association has tried a number of methods over the years to prevent the geese population from growing too large and thus having a negative impact on the community’s amenities and the water quality.

So far, none of those efforts, including growing tall grass and stringing fishing line around the ponds, have made a difference, he said, adding, “now, it’s time to try something new” Bailey said one method that holds promise is the use of water collies.

Bailey added that he met with a company called Maryland Geese Control and received a proposal from the firm for managing the waterfowl population at the association’s ponds.

The presence of the water collies on site will disturb the geese and prompt them to move elsewhere, according to Bailey.

“We will be able to begin seeing them on site once a day within a matter of weeks,” Bailey said of the dogs.

The contract calls for once daily goose control on site at a rate of $625 per week.

Bailey said daily water collie service is necessary to be successful in slowly getting the geese to relocate elsewhere on their own “or at least with the help of our four-legged friends.”

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WORCESTER COUNTY RESIDENTS ONLY!!!

Household Hazardous Waste Collection Saturday, September 22, 2018 10 AM-2 PM Collections to be held at

SHOWELL ELEMENTARY SCHOOL RACETRACK RD., BERLIN

Household Hazardous Waste Collection WHAT WILL BE ACCEPTED: Computers & Laptops (No Other Electronics) Gasoline • Gas/Oil Mixtures • Fuels • Acids Cleaners • Solvents • Automotive Fluids • Bleach Ammonia • Pool Chemicals • Pesticides Dark Room Supplies • CFL Light Bulbs • Batteries Insecticides • Herbicides • Oil-Based Paints Thinners • Turpentine • Wood Preservatives Wood Strippers • Etc. All of these materials will go to a HAZ MAT disposal site.

Dispose of solidified water based paint in trash. (to solidify – add dirt, sand, kitty litter, mulch, etc.)

THESE ITEMS WILL BE ACCEPTED AT SHOWELL ELEMENTARY SCHOOL RACETRACK RD., BERLIN SEPTEMBER 22, 2018, 10 AM - 2 PM

WHAT WILL NOT BE ACCEPTED:

Explosives • Ammunition • Medical Waste Radioactive Materials • Picric Acid • Asbestos Televisions • TV Remotes • Keyboards Mouse • Printers • Modems • Scanners • Cables Misc. Computer Parts • VCR’s • CD Player’s Calculators • Cell Phones • Radios • Stereos CB Radios • Fax Machines • Misc. items ELECTRONICS WILL NOT BE ACCEPTED

For more information on this event, Please call Mike McClung, Recycling Coordinator 410-632-3177 Ext. 2405 or email at mmcclung@co.worcester.md.us No Materials will be accepted from Business, Industrial or Commercial Sources.

9

10 Ocean Pines PROGRESS

OCEAN PINES

September 2018

Board ponders whether to eliminate crabbing amenity in South Ocean Pines Directors keep options open with pending release of competing requests for proposals

By TOM STAUSS Publisher ometimes decisions by the Board of Directors are easy and painless. Other times it’s more difficult because, no matter the decision, one group or special interest won’t like the result and might even call out the decision-makers with criticism or, worse, invective that crosses the line into personal attacks.

Such a scenario could be emerging with respect to the protracted debate over whether to rebuild or relocate the closed crabbing pier at the Whitetail Sanctuary, an amenity originally intended as a neighborhood amenity but transferred to the ownership of the OPA more than 15 years ago by the section’s developer.

During a Sept. 1 board work session, someone said a decision on the contentious issue might be forthcoming at the board’s regular meeting Sept. 8. It wasn’t. Instead the board essentially kicked the can down the road by adopting two motions that did little to clarify the directors’ thoughts.

Offered by Director Ted Moroney, the motion directed General Manager John Bailey to do what he was doing anyway. Instructions to Bailey included a directive to continue work to complete a site survey and issue a request for proposals for removal of the existing crab pier, officially closed to public access for several months because of safety concerns.

The motion also instructed Bailey to issue an RFP to replace the existing pier with an observation platform, which would be the main feature of a wildlife conservation area advocated by a significant number of homeowners in Whitetail Sanctuary.

The motion instructed Bailey to issue a third RFP, this one to replace the existing crab pier at its current location, although the motion actually said “in the Whitetail Sanctuary.” No other site has been identified as a suitable location for a crabbing pier in Whitetail Sanctuary.

So the effect of this provision in Moroney’s motion essentially preserves the option of replacing the existing amenity with a new one at

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the same location.

Moroney’s motion directed Bailey to report to the board no later than Oct. 15 with “options, issues, and recommendations for relocating the existing crab pier elsewhere in Ocean Pines.”

In an explanation of his motion, Moroney said it would allow the demolition of the existing pier “while retaining the right to replace the existing pier (at its existing location).

In addition, the OPA will have pricing of options of Whitetail Sanctuay and options for potential relocation.”

The director said the crabbing pier issue is “a continuing subject that the board needs to move forward, so a decision can be made and implemented.”

Moroney apparently hopes that the competing RFPs will produce pricing information that will help the board make a decision on which option to choose. He also appears hopeful that Bailey will have recommendations to the board that will make it possible for the directors to come to a consensus. Bailey doesn’t have a particularly outstanding record of doing that, however.

In addition to rebuilding the crabbing pier at its present location, the directors will be considering the possibility of relocating the pier to other sites, such as the Swim and Racquet Club campus or even the OPA’s White Horse Park boat ramp area.

During discussion at the Sept. 8 board meeting, Director Slobodan Trendic offered a friendly amendment to Moroney’s motion to in-

struct Bailey to share copies of the pending RFPs with the board before they’re sent out. Moroney accepted the amendment, but some directors, including OPA President Doug Parks and Frank Daly, said that as a rule they don’t want directors involved in the RFP-drafting business.

Even with that skepticism about the merits of board involvement in drafting or tweaking GM-drafted RFPs, the board accepted Trendic’s friendly amendment and went on to unanimously approve the amended motion.

Trendic in a recent response to a Progress email was the first director to forthrightly declare his support for rebuilding the pier at its current location, with improvements such as ADA (Americans with Disability Act) features.

Other directors who responded to the email said they were awaiting cost information on the various options before deciding.

Trendic said the OPA has an obligation to maintain existing assets, in their current locations. In agreement with Southside residents who enjoy using the crabbing pier, Trendic said it would be a step backward for the OPA to be eliminating or relocating an amenity used by residents who live in a much larger area than the Whitetail Sanctuary neighborhood.

He noted the OPA had accepted the crabbing pier on behalf of the entire Ocean Pines community more than 15 years ago, and that poor maintenance or aging of the amenity doesn’t justify placing greater im-

portance on the views of the neighborhood residents over those who live elsewhere in Ocean Pines.

He suggested that the far south of Ocean Pines has few community-wide assets, and that relocating the crabbing pier to the Swim and Racquet Club would be much less convenient for those who walk to the pier now.

It’s acknowledged by all sides that the Whitetail Sanctuary location lacks adequate parking, but that deficiency doesn’t sway the thinking of those who advocate for rebuilding the crabbing pier.

During the Sept. 1 work session, proponents of keeping the current site said parking could be provided at Robin Hood Park, within walking distance of the pier.

To lessen safety and aesthetic concerns of residents who don’t appreciate it when pier users park their cars on the road near the entrance to the crabbing pier area, proponents of the current site say the Worcester County commissioners could be asked to approve the placement of no-parking signs in the area.

Once signs are posted, the Ocean Pines Police Department could enforce the ban by issuing parking tickets, the proponents argue.

The Sept. 1 and Sept. 8 meetings were both punctuated by generally articulate and passionate pleas by opponents and proponents of rebuilding the pier at its current location. Neighborhood spokesman called the wildfowl observation site a better alternative than a crabbing pier, but those who prefer the crabbing pier disagreed.

While they don’t appear particularly eager to choose sides, sooner or later the directors they won’t have much choice in the matter.

Fashion show

The board of the Republican Women of Worcester County met on July 31to prepare for their Tenth Annual Patriot Day Fashion Show Luncheon.

The fashion show will be held at the Dunes Manor Hotel, Ocean City on Thursday, Sept. 27. For reservations and more information, call President Beth Rodier at 410-352-5222 or 443668-8864.

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Parks’s remarks.

In an email to local media, Tren- makes one wonder if the Board’s OCEAN PINES dic said the Parks quote referencing decision (last August) was right and the polishing of a turd was “abso- it begs this question: Should Doug Parks continue to be the spokesperlutely reprehensible.”

Trendic said that this was “not son for the Association?” Trendic the first time Doug used a strong said, adding that he would request profanity and displayed his bul- a special meeting and “I intend to lying style. In one of the previous submit this very question before board meetings, Doug used the “f” the Board. My hope is that at least word and other vulgar language one more director will side with my that was witnessed by all directors concern and join me by requesting a as well as our legal counsel. I was special board meeting. Or that Doug the only director to comment back will do what is in the best interest of the OPA community,” Trendic said. in writing about Doug’s behavior.”

He left the distinct impression According to Trendic, “Doug’s that he believes Parks should recomments and his behavior at Saturday’s board meeting illustrates sign as president, something which, a certain management style that as this edition of the Progress was I have NO intention of tolerating. nearing press time, Parks showed Summer You might picnic be interested to know no sign of doing.

The Ocean Pines Anglers Club and the Atlantic Coast Sportsfishing AssociaIn a June 29 email to the Progthat last year tion hosted an Doug end ofrecommended summer picnic at the Ocean Pines Community Center the Board consider Approximately censuring me 100 members and guests were in attenin early September. dance. Budd Heim chaired the event. The food was prepared by DeNovos and the cake by Food Lion. Tom Narwocki won the 50/50 door prize. Other prizes included gift certificates to the Ocean Pines Yacht Club and DeNovos, custom-made buck tails from John Jewer and gift baskets from Avon Associate Broker donated by Toni Smitz and Ruth Jewer. Lee Phillips and hisCRS,assistant Finn The Real Estate Market Is On The Move ... and You Can Be Too! McCabe labored in the heat with the burgers, dogs and sausage.

Pictured left to right are Budd Heim, Walt Boge; Anglers Club Administrator Finn Office: 410-641-5000 • Cell 410-430-5743 McCabe, John Jewer, Lee Phillips, and Ron Smith, president of ACSA.

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OCEAN PINES

September 2018 Ocean Pines PROGRESS

Daly calls out OPA for ‘damnable culture of indifference’ about facility maintenance Board opts for directive to GM to establish asset management policy

By ROTA L. KNOTT Contributing Writer ammering home the point that he believes the Board of Directors, general manager, and staff have all been negligent over the years by failing to maintain its facilities and ensuring employees have the tools necessary to do their jobs, newly elected Director Frank Daly repeatedly called out the Ocean Pines Association for fostering a “damnable culture of indifference.” During a Sept. 8 board meeting, he said the OPA has for decades ignored the maintenance needs of the association’s facilities, allowing them to deteriorate to the point where many have become unusable.

Daly said the issue he wants to address is culture change and that is a board level responsibility. “The problem as I see it is over years and perhaps decades, the OPA has developed and nurtured a damnable culture of

H

indifference.

That continues to create barriers to our employees and GM. And that damnable culture of indifference is what I want the board to Frank Daly work with the GM to attack and eliminate.”

He said this culture of indifference has developed over the years in parallel with the actions of past boards and past general managers that created a top-down management style. He said the net effect of this change has been to discourage employees from requesting maintenance and operational changes in the budgeting process and to kill off creativity and revenue-generating ideas.

“In other words, a better career

path within the ranks has been defined as one where it is easier and better to ignore asking for maintenance funds, better tools, and revenue-generating projects than risk embarrassment to the supervisor, department heads, GM or board in the budgeting process,” Daly said.

13

“For the revenue-generating amenities this takes the form of trying to break even rather than attempting to maximize net operating project.”

Daly originally offered a motion calling for the general manager to provide the board with an organizational chart identifying specific staff members responsible for the operation, maintenance, financial performance and personnel “for each and every major amenity and non-mobile asset within the association,” but the board ultimately opted for a To Page 15

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Layfield lays out bulkhead plan for 2018-19 fiscal year

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acilities manager Kevin Layfield laid out the broad outlines of a bulkhead repair and replacement plan for the remainder of the 2018-19 fiscal year during a work session of the Board of Directors Sept. 1.

It contained no surprises. Work will be concentrated in the Wood Duck Isle section of Ocean Pines, with two separate request for proposals to be issued later this month, one for replacement of wooded bulkhead and another for a section of concrete bulkheading.

Layfield told the board that priority areas will be failed bulkheads, including those impaired by worm infestations.

The current year’s bulhead budget includes $800,000 for bulkhead replacement and $70,599 for repairs.

Layfield said the projected start of the program will be November of this year, beginning at 10 Mallard West and continuing along Mallard Drive West, 51 to 54 Pintail Drive in Pintail Isle, and bulkheading in the vicinity of a canal bridge on the Ocean Pines golf course.

Completion is expected by January of next year.

Weather permitting.

The timing is also contingent on the OPA receiving qualified bids for the work.

A complicating factor for any prospective bidder is the strong possibility that the OPA will not allow contractors to locate a staging area within Ocean Pines.

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September 2018 Ocean Pines PROGRESS

Directors grapple with spreading relocation costs to all property owners

By TOM STAUSS Publisher he Board of Directors continues to be under pressure from residents in the neighborhood of the Swim and Racquet Club to remove the bulkhead repair and replacement staging area located in a dock area adjacent to the club pool.

Opponents cite safety, aesthetic and environmental reasons for their continuing push to have the staging area relocated.

Opponents say the staging area hurts their property values and the enjoyment of their waterfront properties that are within view of the site. They want the area restored to its original condition as a park and recreational area. In addition to an outdoor swimming pool, the Swim and Racquet Club campus includes

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Facility maintenance From Page 13

simple directive instead.

In his initial proposal, Daly wanted designated staff members to “be responsible for submitting operations, maintenance and capital budgets for their assigned areas to the general manager as part of the strategic planning process and be responsible for the operations and maintenance of their assignment 24/7 /365…”

In discussion of his motion, Daly said during the last five or so years a number of facilities have experienced maintenance or operational issues that have resulted in financial, service, or credibility losses to the association. As examples, he cited replacement of the Yacht Club and its pool, bridge repairs, playground and crabbing pier closures, degradation of facilities at the Beach Club and County Club.

He said all of those problems – and more—have occurred because of lack of maintenance or operational awareness by the staff of the OPA. He argued that the effect of his motion would be to” assign specific responsibilities for maintenance, operations, personnel and finance for each major asset to insure operational readiness on a continuing ba-

a spray park amenity for toddlers, a basketball court and four “free” tennis courts.

It appears that a board majority is emerging that supports the staging area’s removal, but the board so far hasn’t directed General Manager John Bailey to order Hi-Tide Marine Construction, the contractor that is using the site in its current bulkhead repair and replacement work in Wood Duck Isle.

At the board’s Sept. 8 monthly meeting, directors voted unanimously to direct Bailey, in a request for repair and replacement bulkhead proposals to be issued no later than Sept. 30, to include in the RFP an option for a material and equipment staging area outside the confines of Ocean Pines “so that all location choices can be properly priced and

benchmarked.”

The motion for that option, offered by Director Ted Moroney, seems to at least preserve the possibility that the board will retain the existing site. At the board’s Sept. 1 work session, newly elected Director Steve Tuttle had suggested that the RFP should simply specify that the OPA wouldn’t allow an on-site staging area, thereby simplifying the RFP process and encouraging contractors to submit their best pricing proposals.

Moroney pushed back against that idea, suggesting that the OPA needed the competing options to assess the cost differential.

During the work session, Moroney said that when the time comes he would vote to order removal of the staging area, adding that he wanted

sis from the staff to the department heads, department heads to the GM, the GM to the board, and the board to the homeowners.”

Director Collette Horn took issue with Daly’s assumption of the causal relationship between the problems at OPA facilities and lack of maintenance. “Where’s the evidence that that’s what it’s due to? How much of the issues are due to age and things that have nothing to do with maintenance?” she asked.

Director Ted Moroney said the issue isn’t as much about what has happened in the past but more about the future. He said the issue is about instilling “a sense of urgency, responsibility at every level, and a bottom up approach to getting things done.” That way is staff presented a maintenance or operations issue to the board and the board opts not to take action or spend the requested funds then “the blame then sits at this table not with the GM and not down below” he said.

Director Slobodan Trendic agreed in concept with much of Daly’s presentation but said he wasn’t prepared to vote on a motion at that meeting.

“I see this more as an asset management plan as opposed to what’s been written up. And I have asked for this in the past that we should

take a look at this and consider developing one.”

Instead of the proposal originally outlined by Daly, Trendic suggested the board instruct the general manager to develop an asset management policy or manual, similar to the OPA’s financial management manual.

“To me from a board perspective that is really what we should be doing as a governing body,” he said.

“I’m totally comfortable at looking at this but purely as a policy manual and instruct the general manager to develop one, which is basically going to address a lot of the things that you’re asking for without telling him how to do it.”

He said the board should focus on what it wants done and then give the general manager the responsibility and the freedom to come up with the right way to accomplish the task.

OPA President Doug Parks also supported the concept outlined by Daly but didn’t like the lack of operational flexibility afforded the general manager in the proposed motion.

“We can accomplish the same thing with a directive, both in the short term and the long term,” he said, adding the two most important elements are accountability of

all property owners to be aware of possible costs involved if the staging area is removed from the Swim and Racquet Club campus. Other directors, in recent comments, have also seemed supportive of moving the staging area out of Ocean Pines.

To precisely where is unknown.

Because no obvious option exists, Bailey hasn’t issued any directives to the OPA’s bulkhead contractor, at least not as of Sept. 15, to move the staging area out of Ocean Pines.

A second component of the approved motion orders the removal of the staging area if, “upon completion of the bulkhead bidding process” and execution of a new contract, the “off-site staging and storage option” is selected. The current contract with Hi-tide would also be terminated if and when another contractor is selected, according to Moroney’s motion. Hi-Tide currently is working on a one-year contract, mostly for emergency repairs and replacement.

One of the issues the directors are contending with is how and whether to allocate additional costs associated with removing the staging q

Board under continued pressure to eliminate Swim and Racquet bulkhead replacement staging area

15

staff and the board and having an “understanding of what we’ve got to do operationally to make sure that we don’t have this culture of indifference.”

He said the issue needs to be addressed at the higher conceptual level of the board rather than by the general manager.

“I think we’re perfectly well suited to make that policy or culture change,” Parks said. “I think we need to push that thinking in some manner without shackling the ability to be flexible in order to meet that demand or that requirement…”

Parks said he agrees “100 percent” that accountability and responsibility for facilities and operations should come from the bottom up. However, if staff brings an issue to the board then the directors can decide whether or not to address it.

Director Esther Diller supported Parks’s comments and said she too liked the idea of a directive.

“I’m perfectly fine with that,” Daly responded. He ultimately withdrew his motion in favor of the board issuing a directive to the general manager and staff relating to the issue.

He said he was fine with the less stringent approach to the issue because the ultimate goal is to “change a culture of indifference to a culture of operating excellence.”

16 Ocean Pines PROGRESS

OCEAN PINES

September 2018

Bulkhead replacement From Page 15

area from anywhere in Ocean Pines.

Moroney raised the possibility that, since removing the staging area benefits the entire community, not just waterfront owners, any costs associated with removing the site should be shared among all property owners.

Some non-waterfront owners object to that, but the issue really has yet to be fully joined, as key cost information is lacking.

Citing information from a marine contractor, presumably Hi-Tide, Bailey repeated during the board’s Sept.

8 monthly meeting, as he has said during other recent meetings, that repair and replacement costs could

increase by as much as 25 percent if the contractor has to transport materials and equipment across the bay from a staging area in West Ocean City. The board has not acted on a Bailey recommendation for an additional $25,000 to finance the removal of the staging area for work that is currently in the pipeline.

Bu the 25 percent number is an estimate, and it’s by no means certain that other marine contractors or even Hi-Tide would have to transport material and equipment from West Ocean City. Alternatives closer to Ocean Pines have been mentioned. One promising site reportedly is a dock area with road access in nearby White Horse Campground, located at the end of Beauchamp Road adjacent to Ocean Pines.

The site is controlled by the homeowners association that manages the campground. It use presumably would involve some sort of fee imposed on contractors, who then would embed the cost in their proposals to the OPA. Another site that has been suggested is county-owed bayfront property just north of Route 90 that is the site of the Ocean Pines wastewater treatment plant.

OPA Facilities Manager Kevin Layfield told the board during a Sept. 1 work session that this site appears unsuitable as a short-term alternative as a staging area. The site lacks a dock and a road access, and is located in the 100-foot critical area. To be converted into a staging area, a dock and road access would

have to be added within the 100-foot critical area, Layfield said, a difficult task at best that could consume years in various county and state approvals.

Director Ted Moroney suggested that the site isn’t workable as a practical matter.

At both the Sept. 1 work session and the Sept. 8 regular meeting, the board heard a complaint from one Wood Duck Isle property owner that the current contractor doesn’t maintain tidy work sites and will park without permission in neighborhood drive-ways.

Several residents said whatever contractor is selected when proposals are reviewed, the OPA needs to appoint a site overseer to ensure that the work is being done properly.

OCEAN PINES ASSOCIATION BRIEFS Parks & Rec offers travel opportunities

Area residents are invited to travel the world with Ocean Pines as the Recreation and Parks Department, in partnership with Collette Vacations Travel, heads to Costa Rica, Italy and Iceland in 2019.

A special presentation for those interested in the trips to Costa Rica and Italy will be held on Thursday, Sept. 20 at 5 p.m. at the Ocean Pines Community Center, located at 235 Ocean Parkway.

A nine-day trip to tropical Costa Rica will embark on March 25.

Travelers will visit San Jose, Guanacaste and the town of Zarcero and its topiary garden. Other highlights include visits to a coffee plantation, the Monteverde Cloud Forest Reserve, the Cano Negro Wildlife Refuge and a hanging bridges or ziplining adventure.

The price of the trip starts at $2,919 per person for triple occupancy and includes 13 meals and roundtrip airfare from Philadelphia International Airport. An early-booking discount is available.

Discover the history, culture, art and romance of Italy May 8-17. The trip will begin in Rome, head on a scenic journey through Tuscany to Siena and will make stops in Florence, Venice, Murano Island and Milan. Participants will also get to indulge in a chianti winery tour and cooking class.

The ten-day trip includes 13 meals and round-trip airfare from Philadelphia International Airport.

Prices start at $3,999 per person for triple occupancy. An early-booking

discount is available.

A trip featuring Iceland’s magical Northern Lights will be held Nov. 1-7. Over the course of seven days, travelers will experience Reykjavik, a Northern Lights cruise, Thingvellir National Park, the Skogar Folk Museum and more.

Starting at $3,829 per person, the trip includes ten meals and roundtrip airfare from Dulles International Airport. An elite airfare upgrade is available.

For more information about these trips, contact Debbie Donahue at the Ocean Pines Recreation and Parks Department at 410-641-7052 or ddonahue@oceanpines.org.

Financial seminars offered in Ocean Pines in September

The Ocean Pines Recreation and Parks Department will offer area seniors and those looking ahead to retirement the opportunity to learn about financial topics tailored specifically to their needs at free seminars this month at the Ocean Pines Community Center, located at 235 Ocean Parkway.

Carrie Dupuie, a financial advisor with Raymond James, will lead two seminars in September. The first, “Maximizing Social Security,” will be held on Wednesday, Sept. 12, from 2:30-4 p.m.

She will discuss ways to maximize Social Security benefits and optimize a retirement strategy for those aged 60-67 who are not yet taking Social Security.

Dupuie will also lead a “Navigating Medicare” seminar on Monday, Sept. 17 from 3-4:30 p.m. Suitable for ages 60-65 and their family members, this seminar will cover the health insurance program facilitated by the federal government.

Primerica will offer a “Saving for Retirement” financial wellness workshop

on Wednesday, Sept. 19, from 7-9 p.m.

The seminar will explore the root causes of the financial problems facing most families.

These seminars are free and open to the public, but spaces are limited and advance registration is required. To register, call the Ocean Pines Recreation and Parks Department at 410-641-7052.

Rec & Parks offers October bus trips

The Ocean Pines the Recreation and Parks Department takes the wheel for several bus trips in October.

On Saturday, Oct. 13, day trippers can explore a recreated 16th century English Tudor village at the Maryland Renaissance Festival in Crownsville.

The bus will depart Ocean Pines at 8 a.m. and arrive at the festival at 10:30 a.m.

It will depart at 4 p.m. for a 6:30 p.m. arrival back in Ocean Pines.

The fee, which includes transportation only, is $50 for adults and $38 for children ages 7-15. Tickets for the festival may be purchased at the gate or online at rennfest.co.

The Paradise, Pa., Rainbow Comedy Playhouse will stage “Love, Lies and the Lottery” on Sunday, Oct. 21.

The cost is $90 per person and includes transportation, lunch buffet and the show.

A day trip to Washington, D.C., for exploring the city on your own is schedule for Friday, Oct. 19. The bus will drop off participants at the National Mall at approximately 10:30 a.m. and will head back to Ocean Pines at 4 p.m. The fee for transportation only is $45.

NASA’s Wallops Flight Facility will be the destination for a trip on Tuesday, Oct. 23. Additional trips will be offered Nov. 8 and Dec. 4.

The five-hour visit will include a close-up look at NASA’s primary facility

for suborbital missions as well as time for lunch and a drive-by of the launch pad area. The cost is $45 per person, which includes the tour and transportation.

These trips are open to the public and buses 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 cancellations unless vacant seats can be filled.

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

Information regarding additional recreational programs, including an online version of the Ocean Pines Activity Guide, is available at OceanPines.org.

Lynne McAllorum to host Oct. 15 Medicare seminar

Lynne McAllorum, of Baby Boomers Insurance in Ocean Pines, will offer a free seminar on Medicare on Monday, Oct. 15., in the Ocean Pines Community Center from 3-4:30 p.m.

Topics include enrollment rules and products available on the market to supplement Medicare coverage.

The seminar also will be offered on Monday, Feb. 11, same time and place.

Doggie swim postponed to Sept. 22 at Mumford’s

Big Truck Day, scheduled for Sept.

15 at Veterans Memorial Park in Ocean Pines, was canceled because of Hurricane Florence.

But the annual Doggie Swim sponsored by the Aquatics Department, originally scheduled for Sept. 15 at the Mumford’s Pool in Ocean Pines, has been rescheduled to Sept. 22 at 10 a.m.

This event is an affair that occurs before the Public Works Department drains the pool for the season.

September 2018 Ocean Pines PROGRESS

17

tract and Thompson’s employment email by22. theHProgress to d fices in a invitation meeting Aug. lated three to amenity options.performance this year. contract makeforit it, even more lucrative tors whotovoted Jack Collins, was

By TOMPines STAUSS h the Ocean Association. ill’s motion to go into closed session cuss how and why the decision to te 18Publisher Ocean Pines PROGRESS SeptemberHill 2018in OCEAN PINES Newly elected director Brett Hill, who fordefeated in his election bid this summer, his explanation said that the Thompson. onminate Aug. 26the after the open session made Director Brett Hill was chosen by the motion to go into closed ses- with his contract extension vote a possi- sive procedurecontract occurred, citing t closed meeting that began with boardoffered “hasin an obligation to discuss a Stevens was participating in the no mention of possible termination. board majority to serve as interim sion, prepared remarks explaining his ble contributing factor. confi dentiality of the intended purpose of reviewing finesthe is closed not anmeetings. option in Trendic told Progress several objective bonus calcu-re- meeting telephone, and said was later Levying saidmeasure that five of board members Also via voting for the extension acting general manager pending a more motion General Manager Bob Thompthe enforcement daysOPA’s after the decision to arsenal. terminate was discovered disturbing heDave Stevens, who wasn’t on the had ballothe The releasetoannouncing lation,cently so a had notifi cation of“many a (reopened) might have voted differently employment contract, including rch forson’s a replacement. made that press “absolutely” waspotenno in- th A positive responsethere the Support for fi nes, rental property registration tested in questionnaire factors surrounding the handling of the this year but isn’t known as a Thompson what one director described as “disturbdecision said theboard contract negotiation would be in the best been at the person to hash out the de- tial tention or expectation by the ma- w levying of only finesthat could emboldAt a special meeting of the Board contract GM bonus (for the 2015-15 fiscal year),” Sept. fan. Both Collins and Stevens explained factors” involving a $30,900 bonus community survey sent out by Gen8 monthly meeting, Bailey rejority of Herrick, Trendic, Stevens By ing TOM STAUSS enmade policy-makers in taking stepsand to th for convenience, meaning that interest of allasparties to avoid further is- to tails of votes a renegotiation.

Directors Aug. 26, the directors vot- finanas well “adjustments already made their the best deal possible for for better-than-budgeted amenity eral Manager John Bailey and staff ported thatas1,642 responses to the Hill that Thompson’s contract would be so Publisher bring them about. board majority was not alleging any sues in future Elections have and this year’syears.” budget related to the bonus the OPA given that,consequences, at the time, there 5-2, with directors Renaud andcally cial performance, ended up with a highin thebeclosed session Aug. 26. last month and returned in early survey were received, with a close terminated hetherPat it’s a scientifi wouldn’t easy.

It probably clauses” that would have made it much was the a solid majority ofHill pro-Thompson diofItHewrong-doing on Thompson’s part A decision to revisit the contract by with election of and Slobodan ly contentious 4-3 vote to terminate the and other directors declined an th eryl Jacobs dissenting, to go into valid sampling may be de- September produced a respectable mix of hard copies and on-line in- would require amending restrictive easier for Thompson to earn a bonus re- rectors who could have renegotiated the contract bated and Thompson’s employment would have justifi a termination invitation by theedProgress to dis- f Aug. 31 ofdeadline would20 have openedof Trendic just under percent puts. it was apparent that Thompson email in theThompson’s coming weeksthe return ed session to discuss lated to amenity performance this year. contract to make it even more lucrative covenants in each of the sections with the Ocean Pines Association. cuss how and why the decision to Ocean Pines property owners.

“The hard part will be to decipher” and months, depending on whethera two-month cause. affor the board andthe noforlonger had a solid majority of sup- within Ocean Pines, requiring anterHill inwindow his explanation said that Thompson. tract, which had Brett been extended for by During Director was chosen thevote contract citing the the Board of Directors the results once they are tabulated, one agrees with its Hill findings, but theThompson fiminate rmative of a occurred, majority ofconvenien propThe termination for to renegotiate, something board “has an obligation to discuss a porters on the board.

Stevens was participating in the theon board ee years Aprilmajority 28. to serve as interim confiowners dentiality ofsection. closed meetings. said, suggesting thatand theysaid maylater be erty objective measure would of bonushave calcu- he meeting via telephone, means thatbyThompson will reap a gene Thompson probably or acting general pendingthat a more Indeed, there was an expectation Undisclosed at the timemanager the contract open to competing interpretations.

Another in the surThe press question release announcing the lation, so a notification of a (reopened) he might have voted differently had he search for a replacement. ousasks severance package, including sala welcomed.

Back in April, he be offered to inbeen the community at out some point, Theat survey willthat, provide insight vey whether property owners ension was made public was a prodecision said only that the contract was contract negotiation would in the best the person to hash the deAt a special meeting of the Board into at least two potentially controand benefi ts for nine months, althoug drop amenity-based bonus incentives in Thompson’s contract probably would be would support askingmeaning OPA members made for convenience, that the on that allows theAug. “new – in vot- interest of all parties to avoid further is- tails of a renegotiation. of Directors 26,board” the directors versial issues. to register their properties with the board majority was not alleging any sues in future years.”

Elections have consequences, and apparently he no longer will besort eligib exchange for a more predictable incenterminated by the new board.

In pubwiththat directors Pat FullRenaud Service Veterinary Centers Providing case,edthe5-2, board had three new and Onethe of election the questions in the sur- OPA if they’re rental homes. of wrong-doing on Thompson’s part that A decision to revisit the contract by with of Hill and Slobodan Jacobs dissenting, to go into tive the board at the time lishedasked accounts, Thompson himself said for any bonuses.

Exceptional Carepackage, Mondaybut through Saturday mbersCheryl as a result of this summer’s whether property own- would The have survey didn’t a question justifi ed a ask termination for the Aug. 31 deadline would have opened vey Trendic it was apparent that Thompson closed session to discuss Thompson’s months property of salary works to extend the contract for an-and he expecting to move in a about ers would be favorably disposed to cause.Nine whether ownersout A election – to revisit the contract ex- voted a6-1 two-month window for the board nowas longer had a the solidboard majority of supcontract, which had been extended for John Maniatty, VMD •three Anne years Flood,towithout DVM • Alichange.

Lovins,something DVM new $123,750 for work that notthe be pe imposing nes on OPA members would direction.

The betermination for aneed convenience renegotiate, willing to pay fee to porters on fi the board. sion, whether to renegotiate three years on April 28. it or ter- other Thompson whose properties are found in conmeans that Thompson will reap a generthat Thompson probably would have Indeed, there was an expectation for the privilege of using their formed.

Thompson served six years as gener- OPA at theastime the contractNew anointed OPA President Tom nate it, orUndisclosed keep it in force written. violation ofthat, OPA ous severance package, including salary welcomed. Back in April, he offered to tinuing in the community at restrictive some point, homes as veil rental properties. extension was made public was a proThe over deliberations in close Herrick was the onlyCITY, director to vote alcovenants OCEAN MD. manager,orandArchitectural that’s well within the and benefi The contract specifi ed an Aug. 31 ts for nine months, although Review drop amenity-based bonus incentives in Thompson’s contract probably would be With the pending tabulation and vision that allows the “new board” – in against the extension.

One of the directimeguidelines. of the service managers apparently he of no the longer will beresults, eligible Committee exchange for a more predictable incen- average terminated by new for board.

In pub-of deciphering dline this for making decision on three the new survey case, the a board that had 410.213.1170

ASurvey produces 1,642 responses

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tive package, but the board at the time voted 6-1 to extend the contract for another OCEAN three yearsVIEW, without change.

DE. New anointed OPA President Tom Herrick was the only director to vote against the extension. One of the direc-

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What’s precious to you isprecious precious What’s to to us.

lished accounts, Thompson himself said Enforcement of these documents he was expecting the board to move in a currently is limited to letters from newARC direction. the staff, legal counsel and, Thompson served generultimately, the filingsixofyears civilasaction al manager, and that’sowner well within the against the property to force average time of service for managers of compliance.

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for any said bonuses.

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OCEAN PINES

September 2018 Ocean Pines PROGRESS

New Ocean Pines Swim Team season

19

Under the direction of Coach Trevor Rill (right, standing), the Ocean Pines Swim Team fall season is under way, with practices taking place at the Sports Core indoor pool beginning at 3 p.m. weekdays and lasting until 9 p.m., except Fridays, when practices end around 5 p.m. The team also practices at the pool Saturday mornings. Even when team practices take place at the pool, the Aquatics staff will keep at least one lane open for lap swimmers. About 80 swimmers are participating in what Rill calls the fall short course season, with the first meet scheduled for October. The season ends in March.

Meets during the short course season are generally invitationals comprised of multiple teams, rather than dual competitive meets.

Short course seasonal meets take place in shorter yard pools and are designed to help swimmers improve individual times. Membership in the Ocean Pines Swim Team overlaps with membership in the Stephen Decatur High School swim team, which begins its afternoon practices at the Sports Core pool in November. That in turn causes practice hours for the Ocean Pines Swim Team to adjust. Rill encourages his high-school swimmers to participate on the Decatur team in addition to the Ocean Pines team. Rill also coached the Hammerheads, the Ocean Pines summer swim team, this past summer.

The Hammerheads racked up an 8-0 dual meet record, the second consecutive summer the team went undefeated in one-on-one competitions with teams that make up the Delmarva Swim Association league. There were 144 kids on the Hammerheads team during the summer long-course season. The summertime Hammerheads and the fall-winter Ocean Pines swim teams are roughly 75 percent comprised of Ocean Pines residents, with most of the rest coming from nearby Berlin. The team placed second in the Delmarva Swim Association standings this summer, only 13.5 points behind the Salisbury YMCA. Assisting Rill is former Head Coach Brooks Ensor, pictured near the slide.

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BOARD OF DIRECTORS

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Parks makes committee liaison appointments

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ith no board vote or public announcement, Ocean Pines President Doug Parks recently made advisory committee board liaison appointments.

OPA bylaws, which require confirmation of the full board of committee appointments, do not require the OPA president to obtain board approval of board liaisons to these committees.

However, in past years, it’s been customary to at least discuss the appointments in public session, with some past presidents asking colleagues to ratify the appointments.

Parks did neither. Instead, the liaisons simply appeared on the OPA Web site recently in the section that also lists committee members.

Essentially that means that Parks cleared specific appointments with individual directors via email.

According to the Web site, board committee liaisons are as follows: Aquatics, Parks; Architectural Review, Ted Moroney; Budget and Finance, Frank Daly; Bylaws and Resolutions, Esther Diller; Clubs (food and beverage), Slobodan Trendic; Communications, Colette Horn; Elections, Steve Tuttle; Environment and Natural Assets, Tuttle; Golf, Daly; Marine Activities, Trendic; Recreation and Parks, Horn; Strategic Planning, Moroney and Diller; 50th Anniversary, Horn; Search Committee, Parks.

Tuttle returns to the Elections Committee, a panel he previously chaired prior to announcing his board candidacy this summer, as liaison.

Moroney and Diller are both serving as liaisons to the Strategic Plan committee, the first time two directors have served in a joint role.

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BOARD OF DIRECTORS

September 2018 Ocean Pines PROGRESS

Says dispute is moot now that election is over

By TOM STAUSS Publisher rett Hill, the former acting general manager and elected director who filed an amended complaint with the Worcester County Circuit Court several months ago asking for the court’s “immediate intervention” in his dispute with Ocean Pines Association Secretary Colette Horn over his blocked candidacy in this summer’s Board of Directors election, has decided to drop his suit against Horn and members of last year’s board of directors.

Hill said he expected the paperwork closing out the suit would be filed the week of Sept. 16.

He said lawyers for the OPA’s insurance company are aware of his decision and even provided him with copies of the relevant documents to file.

B

Brett Hill

Colette Horn

Hill told the Progress that by declining his request for an immediate injunction to stop the election or to order his inclusion on the ballot, the court effectively rendered his legal action moot.

Even if he had eventually prevailed on the merits, Hill said it was far too late to be of much value, since the election transpired without him on the ballot, and a new board has

already been seated.

He said re-running the election at this point would be a mistake that would destabilize OPA governance at a time when the board needs to work together.

Horn blocked Hill’s candidacy in her capacity as OPA secretary.

She interpreted the OPA bylaws to say that by failing to pay an annual OPA assessment by a deadline established in a board resolution, Hill forfeited his right to run in the election In his initial request for the court to issue a temporary restraining order, to stop the election process in its tracks, Hill had noted that the OPA’s bylaws require the submission of election materials to the secretary for printing no later than the first Friday in July, which this year was July 6.

Horn had ruled that a board resolution requires submission of candidate forms and certification of a paid assessments by May 15.

He asked for the court’s “immediate intervention” to protect him from this “immediate, substantial and irreparable harm,” more specifically the printing and mailing of ballots, and to order the cessation of “candidate forums and other promotional events until a list of qualified candidates can be determined by the court.”

The court issued an initial ruling that Hill had made some filing errors in his original suit, so he promptly filled a corrected version that remedied the defects.

In the amended suit, Hill asserted that Horn, as an OPA director and OPA officer charged with overseeing the election process, breached her fiduciary duty to abide by OPA bylaws and the Maryland Homeowners Association Act to properly conduct an election, to submit all eligible candidates to the Elections Committee and to treat “all candidates equally and without prejudice.”

The suit alleged that Hill q

Hill to drop suit against Horn, directors on ballot exclusion

21

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22 Ocean Pines PROGRESS

BOARD OF DIRECTORS

September 2018

Hill lawsuit From Page 21 breached her duties in a way that “was willful, intentional and in bad faith,” causing the plaintiff and members of the OPA to have sustained, and will continue to sustain, substantial damage and loss.”

Hill was asking for $24,4525 in compensatory damages and $50,000 in punitive damages to compensate for this alleged breach of fiduciary duty, which he said would be donated to the OPA’s general fund if it had been awarded by the court.

In the initial filing, Hill only asked for punitive damages of $50,000.

Hill said one of the reasons for dropping the suit is that a hearing on his suit was not scheduled until sometime next February, simply too late to be relevant.

The dropping of his lawsuit against Horn leaves the dispute between Hill and Horn unresolved.

Until such time as the bylaws are clarified, removing even the possibility of conflicting interpretations, it’s possible that the situation that occurred this past election cycle could happen again.

But it’s not easy to amend OPA bylaws.

First, the Bylaws and Resolutions Advisory Committee, or legal counsel, or both working together would have to come up with language that all would accept.

The board of directors would then have to vote to allow property owners to vote on the proposed language in a referendum to amend the bylaws.

Finally, OPA members would have to vote accept the changes Hill had argued that the May 15 deadline is not supported by language in the OPA bylaws, Sections 5.02(a) and (d) and 3.01(c), which he said should be interpreted to read that he should be certified as a candidate if his assessments are paid within 35 days of the vote count in August.

Horn, who under the OPA organizational documents is the sole corporate officer given the task for certifying candidates, cited 5.02(d) of the bylaws and board resolution M-09 as setting a hard deadline of May 15 for candidate eligibility.

Section 5.02(d) says that the secretary “shall verify that the Associa-

tion’s records as of May 15th support each candidate’s eligibility and shall submit a list of eligible candidates to the Elections Committee no later than June 1st.”

Hill argued that this language gives the secretary flexibility to certify candidates after May 15.

She disagreed.

Hill said next year, should he decide to file again as a candidate, another potential issues looms even if he files after paying a lot assessment by May 15.

Hill said that because he recently sold his house on Windward Court, his remaining ownership of Ocean Pines property is through an LLC (limited liability corporation) in which he is one of two equity partners.

The LLC is the owner of record of an unimproved building lot in Ocean Pines.

Hill said he is not at all certain that Horn, as the OPA secretary, would recognize the validity of his ownership of Ocean Pines property through an LLC for purposes of certifying him as a candidate.

“The bylaws and resolutions are silent on this question,” Hill said. “I

don’t know that Colette would certify me as a candidate even if I produce documentation that proves I’m an equity partner.”

Hill said that Horn has proven that when faced with conflicting interpretations of the bylaws, she will choose the one “most restrictive and inflexible” that prevents an otherwise qualified candidate from running.

Hill said it’s far too early to even think about whether he might be interested in running for the board next year. “‘I’ve invested too much time into the affairs of Ocean Pines just to walk away,” Hill said, but that’s not the same thing as saying he intends to be a candidate.

He said that the top-voter this summer, Steve Tuttle, proves that candidates who work really hard in talking with voters and getting their message out will be the ones who win in the end.

“You can’t just sit back and expect that people will vote for you because of you did something in the past,” he said. “They are most interested in hearing what you intend to do in the future.”

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24 Ocean Pines PROGRESS

September 2018 Ocean Pines PROGRESS

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26 Ocean Pines PROGRESS

BOARD OF DIRECTORS

September 2018

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BOARD OF DIRECTORS

September 2018 Ocean Pines PROGRESS

Board envisions Beach Club’s second floor as venue for small parties, similar events General manager authorized to draw up request for proposals to make Ocean Pines’ ‘crown jewel’ more user friendly

By ROTA L. KNOTT Contributing Writer ecognizing that the Beach Club is underutilized and has the potential to become a revenue-generator for the Ocean Pines Association, the Board of Directors unanimously endorsed a proposal to make improvements to the amenity’s second floor.

Working in conjunction with Matt Ortt Companies, operators of the Yacht Club restaurant and the Beach Club’s summertime fast food venue, the board directed General Manager John Bailey to develop a request for proposals for improvements to the second floor that could turn it into a revenue-generator.

Others have tried over the years.

The last unsuccessful effort occurred last summer, when Acting General Manager Brett Hill tried extended evening hours and restaurant service on the second floor. The effort contributed to an operating deficit at the Beach Club. By returning to traditional emphasis on the summertime fast food operation downstairs, the Beach Club has been restored to profitability under the aegis of the Matt Ortt Companies this summer.

Averse to making the same mistake twice, the current thinking is to convert the oceanfront amenity with its panoramic beach and ocean views into a venue for small parties and other similar events.

Director Slobodan Trendic offered a motion during the board’s monthly meeting Sept. 8 for the general manager to “develop a desirable scope of work with help from Matt Ortt Companies, issue a request for proposals for improvements to the second floor

by Sept. 28, and present the results and recommendations to the board

by Oct. 20.

Concerned about the tight timeframe proposed, directors ultimately approved a slightly amended motion, changing the date for release of the RFP to Oct. 31 and having it due back to the board in December.

In making his motion, Trendic said the intent is to “improve the

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second-floor conditions and appearance, which will allow Matt Ortt Companies to market this premium OPA asset that has been underutilized for years. This will enable the OPA membership to enjoy many benefits that renovated second floor will offer and to improve the financial performance of this highly viable OPA amenity.”

He said much of the poor condition of the second floor was caused by years of neglect and deferred maintenance, adding that many of the original windows are inoperable and some are leaking causing water damage to the floor. Additionally, an outdated room design and the overall layout presents a challenge for Matt Ortt Companies to market this space to the OPA membership, he said.

“The concept I don’t have a problem with,” Director Ted Moroney said. But he was concerned that the original motion didn’t allow enough time for Bailey to develop the RFP and get back any responses. “Is the intent here to come out with drawings and specifications and can we do that in three weeks?” He offered the amendment to Trendic’s motion to extend the timeline, saying the short turnaround time originally proposed may be impractical.

Moroney said he is in favor of trying to improve the environment at the Beach Club but questioned whether a business plan should be developed for the effort. “Do we need a business plan for this?” he asked.

If the OPA is going to invest thousands of dollars in improvements to the structure, he said the board should know what type of return on its investment to anticipate.

Director Esther Diller, who gave a second to Trendic’s motion, said that she, Trendic, and Director Frank Daly during a recent tour of the Beach Club had a chance to speak with Matt Ortt about the proposal to improve the upstairs.

She said Ortt was “very positive” about supplying the OPA with a business plan, and wants the op-

portunity to do so to bring in small parties and other functions to that venue.

“He was very optimistic that he could get this done in a tight timeframe. He just wanted to get moving,” she said of Ortt.

Daly joked that his first reaction when he saw the second floor of the Beach Club was to call the OPA’s Communications Committee “and let them know that we found a time capsule. We were standing in it. It was the second floor of the Beach Club.” He said he would urge anyone to “walk up there and look at that.” He said the poor condition of the facility was created by years of indifference that have caused problems like leaky windows.

“Windows don’t leak overnight,” he said. In his first month as a director, Daly has on several occasions railed against what he calls the OPA’s “culture of indifference” toward maintenance that leaves many of Ocean Pines’ aging facilities in need of major renovation because of years of neglect.

The directors visited the facility in August. But no one was using the second floor of this “prime oceanfront venue” because it’s not usable, Daly said. “This is ridiculous.”

He supported the motion saying improvements to the Beach Club could be made in phases that would allow for increased use of the upstairs.

“It is the prime asset in this community. It is a gold mine,” he said, agreeing with Moroney that a business plan is needed but in the meantime the OPA can get prices for the work necessary to make the space usable.

“I’m 100 percent behind this. This has clearly been too long; it’s been deferred too long. We need to obviously put an investment in that environment because it is the jewel of the Ocean Pines Association,” OPA President Doug Parks said in support of the motion.

His concern was that the OPA has signed a two-year agreement

27

with Matt Ortt Companies to run the Yacht Club restaurant and the Beach Club.

Given the current condition of the Beach Club’s second floor, he wasn’t sure the timing would be compatible. His questioned the timing, but said he would defer to Ortt. “We all agree that’s where we have to get,” Parks said, adding that improvements to the amenity will help Ortt be successful in operating the oceanfront amenity.

Bailey said he has spoken with Ortt and and his partner Ralph Diangelo and both are onboard with the proposal. “They are all for all this conversation that we’ve been having,” he said.

However, Bailey said the timeline proposed by Trendic was a challenge for them. He suggested issuing the RFP by the end of October and reporting back to the board later in the year.

Diller said the board has to “let it be their timeline.” Otherwise, she said, the OPA is setting them up for failure.

Trendic agreed to modify his motion to extend the timeline. “The idea really is to leverage the offseason periods so that we can get the proposals back and also do the work in time for the grand opening,” he said.

He said the company has already demonstrated success at Yacht Club.

“It’s a total turnaround,” Trendic said. “So I’m sure they can do phenomenal job with the Beach Club also.”

In addition to making improvements to the upstairs, Moroney pointed out there are issues that need to be addressed on the first floor of the Beach Club as well. As an example, he cited the lack of Americans with Disabilities Act compliance for the first floor restrooms, which are not wheelchair accessible.

Trendic said he specifically didn’t include in his motion any improvements to be made on the first floor of the Beach Club.

He said he wanted to be clear about the intention of the motion to spur use of the upstairs at the amenity.

He acknowledged there are issues to be addressed on the first floor as well.

But, he said, he sees those as operational matters that the general manager can bring to the board and directors can decide whether to expend funds to make specific improvements.

28 Ocean Pines PROGRESS

BOARD OF DIRECTORS

September 2018

Board approves Sports Core pool maintenance, replacement items Clear Comfort disinfecting equipment, new painted floors greet swimmers at indoor facility

By TOM STAUSS Publisher he Board of Directors during its Sept. 9 regular meeting approved two capital expenditures for the indoor Sports Core pool. Both items, a new dehumidification unit and recoating external roof panels, were approved unanimously and without debate.

The dehumidifer, essential equipment in any indoor pool facility, will be supplied by Pace-Adams Havted of Mooresville, N.C., at a total cost including sales tax of $106,675.

It replaces the original unit installed in 2017 when the Sports Core pool, previously an outdoor amenity, reopened after a $1 million enclosure by Structures Unlimited of Bow, N.H. The only other bid from a local supplier was for $148,570.

The Ocean Pines Association’s

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Public Works Department will install the equipment, but the company will program it on site.

The board also approved a sole source bid for Structures Unlimited to recoat external roof panels at a cost of $58,289 including sales tax.

The work was recommended by the company to prolong the life of the panels and also to preserve the warranty.

According to information provided in the meeting packet, Structures Unlimited willl be coating the panels with the Weather seal #96 L-R. “Structures Unlimited is the premier single source manufacturer of structures built using Kalwall systems. Structures Unlimited has been servicing the structure yearly and talked to us about getting the panels done with the weather seal to help increase the life of them.

They suggest that it be done every

8 to 12 years in normal conditions,” according to the packet information, provided by Aquatics Director Colby Phillips.

“They first mentioned it to us back in 2015 that we should strongly consider having this application done,” she said. “We got a price from them in January 2016 but did not get in the budget until this year. We got an updated price ... We were not able to find this product anywhere else.”

The sole source bid did not raise any concerns from directors because the enclosure roof is a proprietary roof supplied only by one vendor.

In related news, the Sports Core pool reopened Sept. 10 after a weeklong hiatus with new flooring in the entrance lobby and bathrooms, repairs to the rubberized deck surface, a refilled pool and new disinfecting equipment by Clear Comfort, designed to improve air and water

Directors push back on suggestion about evaluating board performance

By TOM STAUSS Publisher ver the years, newly reorganized Boards of Directors have set goals for themselves, objectives they hope to achieve by the end of their terms.

At an Aug. 19 organizational meeting, the directors kicked around a few ideas, not coming to any consensus, at least not evident to anyone in the room who weren’t directors.

One idea that surfaced during a brief discussion was a suggestion by Director Colette Horn that the board should periodically evaluate itself, in what way was not made clear.

Director Slobodan Trendic shot the idea down, questioning Horn about how she would establish a procedure for such an evaluation.

Horn suggested that the board have a conversation about how it could be done. She said it could involve self-evaluation by individual directors rather than directors evaluating one another.

She said the purpose of the evaluation would be to help directors get along better.

Perhaps the two directors who most frequently are at odds, Trendic and OPA President Doug Parks both expressed skepticism about Horn’s suggestion.

Parks said that “performance is the wrong” word and that he would strike it from a list of

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board objectives this coming year. He suggested “sharing perspectives” instead, Other directors moved the conversation in another direction entirely.

Frank Daly said that General Manager John Bailey and OPA Treasurer and Chief Financial Officer John Viola should be the ones coming up with a list of objectives for the coming year with “operational excellence” as a goal.

“We need to set boundaries” for the GM and CFO, Daly said, but allow both to do their jobs.

In a gentle jab at Trendic, who often suggests that the board should review requests for proposals (RFPs) before they’re posted by Bailey, Daly

Newly installed Clear Comfort system equipment is designed to cut down on the amount of chlorine needed to disinfect the Sports Core indoor pool.

quality at the indoor amenity.

The unit will cost the OPA roughly $500 per month in rental fees.

“I’m excited to see what kind of difference it may make,” Phillips said in a text to the Progress. “We keep the pool water very clean ... but we are always looking for anything to make it better.”

opined that writing an RFP constitutes too much involvement in the day-to-day affairs of the OPA. “Why is a board member writing an RFP?” Daly said, advising his colleagues that the board’s proper role is to provide oversight and “strategic excellence” for the OPA. He did not say that the board shouldn’t on occasion review RFPs, however.

Director Esther Diller said the board needs to “simplify” its functions to “get to the finish line” on various projects and to stop “over-thinking” matters before making decisions.

Moroney said the task for the board is to decide how it wants to operate to maximize its effectiveness.

Horn then said that evaluating director performance really wasn’t what she was “trying to say,” but she didn’t offer any alternative matters before the directors dropped the subject entirely.

Florence mostly a non-event in Ocean Pines

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cean Pines was preparing for the worst with expected landfall of Hurricane Florence in the Sept. 14-15 timeframe, but Ocean Pines and the Delmarva Peninsula was spared from the devastating effects of the hurricane that hit the Carolinas. Heavy rains and gusty winds never materialized to the extent feared by some officials.

The Ocean Pines Association issued several advisory warnings to residents, advising them how to cope with the possibility that the hurricane would veer northward and perhaps affect local environs more significantly than she did.

Local television news media also hyped the storm’s affects long after its path clearly took it well away from Delmarva, in fact bypassing most of Maryland with the exception of some outer bands.

BOARD OF DIRECTORS

September 2018 Ocean Pines PROGRESS

Board sets meeting schedule for the coming year, mostly first Saturdays of the month

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Directors strive to establish pattern that non-residents and working members can remember in the hopes of boosting attendance

By TOM STAUSS Publisher n an effort to impose predictability on what traditionally has been a chaotic meeting schedule, as well as attracting non-resident property owners and those who work weekdays, the Board of Directors has decided on a meeting schedule for the 2018-19 board term that for the most part sets meeting on the first Saturday of every month.

There are four months, September, October, February and March, that are exceptions, to eliminate dates when certain directors are unavailable.

The September meeting was set on the second Saturday of the month, Sept. 8.

The October meeting has been shifted to Oct. 20, the February meeting to Feb. 16, and the March meeting to March 9.

All other meetings are set for the first Saturday of the month at 9 a.m.

For now, the meetings are scheduled for the Assateague room in the Community Center.

If the Country Club second floor is completed in the 2018-19 board term, then the expectation is that board meetings will be held there.

In addition to the Oct. 20 meeting date, the board at its organizational meeting Aug. 19 set meetings for the remainder of the 2018-19 board term.

Those dates are Nov. 3, Dec. 1, Jan. 5, Feb. 16, March 9, April 6, May 4, June 1 and July 6.

The board during its Aug. 19 organizational meeting reaffirmed its intention to host three town meetings in the coming year, on subjects to be determined. Dates have not been established.

Director Slobodan Trendic suggested that the board should not lock itself into three town meetings, but other directors said the new board should go along with what the previous board decided on this subject.

One purpose of the town meetings is to allow property owners to discuss any subject of their choosing with the expectation that directors

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BOARD OF DIRECTORS

September 2018

Board reaffirms instructions to Bailey on hiring insurance consultant GM calls approach ‘not the best nor financially beneficial,’ but Moroney tells him to do it anyway

By TOM STAUSS Publisher ast March, on a motion by Director Slobodan Trendic, the Board of Directors instructed General Manager John Bailey to conduct an independent review of the Association’s commercial insurance policies, to recruit an independent industry expert with no previous relationship with the OPA to assist in the review, and to provide a report and recommendations to the board no later than July 2.

The motion limited the cost of the consultant to no more than $5,000.

In a candid implicit admission in his GM’s report read into the record at the board’s Sept. 8 monthly meeting, Bailey effectively acknowledged that he did not meet the July 2 deadline for a report and indeed had not even hired the consultant.

He put the onus for that fully on the board for giving him an instruc-

L

tion that he didn’t care for all that much.

“The approach to rereview our insurance policies that was so directed, I believe was not the best approach, John Bailey nor the most financially beneficial. The best approach to ensure proper coverage at the best price is to achieve competition in the market place – at the broker level and at the carrier level,” Bailey said.

At the conclusion of a detailed report on activities at the broker and carrier levels that he believes was the better approach, Bailey recommended that the board authorize him to issue a request for proposals

for insurance broker services.

“If the Board would still prefer that we achieve a review by an independent consultant ... I have identified three companies that I know for sure offer such services for a fee – one in Maryland, one in New Jersey, and one in New York. If that is still the Board’s prerogative, then I will pursue that approach with all due diligence,” Bailey said.

The reaction by the directors to Bailey’s revelation that he not yet acted on the marching orders delivered to him last month was muted.

Director Ted Moroney, without engaging in a conversation with Bailey on the merits, simply told the GM that he should proceed with implementing the board’s directive from March.

No other director disagreed with Moroney, so it appears that the board, implicitly, reaffirmed its earlier directive to Bailey.

The general manager told the board that if was directed to implement the March instructions, he would diligently proceed to do so.

There was no push-back on the idea of issuing an RFP for insurance brokers, which Bailey said was last done more than ten years ago.

The OPA’s current insurance broker is Avery Hall Insurance of Salisbury. Presumably the firm will want to keep its OPA business and will submit a proposal to that end when Bailey’s RFP is posted.

“Insurance brokers want to acquire books of business,” Bailey said. “By issuing an RFP for broker services, we will directly challenge the interested brokers to indicate why we should choose them over another broker.

“One way for them to do that is to review our existing policies for any deficiencies and provide us with how they might go about resolving any such findings,” he continued.

“The issuance of an RFP for broker services should yield, at a minimum, two or three firms that will be competing for our book of business and will provide us with examples of q

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how we might look to improve our coverages and/or costs.”

According to Bailey, the OPA’s insurance policies renew May 1 every year, and Avery Hall reviews the policy coverages and shops them every year.

“Avery Hall gets a renewal quote from the existing carrier, as well as competing quotes from other carriers. That addresses the carrier level market place,” Bailey said.

With regard to broker services, Bailey said the OPA has not issued a RFP for insurance broker services in over a decade.

“This should be a business requirement at least every five years.

The timing for the issuance of a broker services RFP is 180 days before the policy renewal date of May 1. For our purposes, we should issue said RFP in October 2018,” he added.

Bailey told the board that the timing for the annual shopping of the coverage policies themselves is 90 days before renewal.

“Brokers do not shop coverages before then. The broker therefore would begin to shop coverages in the month of January each year.

The broker can submit applications on Feb. 1 for a May 1 renewal date.

Thirty days lead time is ideal for a broker to gather information to submit to the carriers.

Board approval of renewal policies (including any changes) should occur in the month of April each year. The presentation of insurance renewaloptions is typically provided in March/April,” he said.

Bailey told the board that Kathy Bennett, an executive from Avery Hall and two representatives from nsurance carrier Selective Insurance, recently conducted an on-site loss control inspection and “refamiliarized themselves” with OPA properties and facilities.

“We also had them evaluate the existing coverage values,” Bailey said.

He told the board that the only OPA asset that that may be undervalued is the Sports Core pool.

“That deficiency is being addressed by Avery Hall,” he said.

As for the safety inspection, Bailey said the two main areas of concern were related to the handling and usage of the gasoline tanks at the golf course.

After conferring with “peers” at other large-scale HOA’s about the

September 2018 Ocean Pines PROGRESS OPA’s umbrella coverage, which is extra liability coverage, Bailey said he recommends increasing the limit from $10 million to $25 million.

So far, he said, only one carrier has submitted a proposal for the increased coverage.

“Most carriers will not provide the additional umbrella coverage unless they have the whole package of insurance coverages,” Bailey said by way of explanation, adding that umbrella coverage “does not extend over certain operational coverages, such as directors and officers, police professional, marine operator, and camps and day programs.

“While we do have policies in place for these areas, the coverage amounts need to be increased. Avery Hall has been directed to get quotes on increasing the level of coverage for these policies as well,” Bailey said, adding coverages currently in place “for various properties match the asset value, except for the Sports Core Pool. That will be adjusted accordingly.”

On the sometimes controversial topic of flood insurance, Bailey said the OPA has the maximum coverage of $500,000 under the federal flood insurance program for both the Yacht Club and Beach Club.

“We already have excess flood for the Yacht Club ($3.2 million for the building). Contents coverage for the Yacht Club is $500,000. We also have excess flood for the Beach Club ($1.86 million); contents coverage for the Beach Club is $168,400,”

ccording to Bailey.

He then addressed the lack of coverage of Ocean Pines swimming pools as well as docks and piers, which one large area property owners association, Captain’s Cove Yacht and Golf Club, has been able to obtain, recently with a reduction in premiums.

“Research indicates that their savings was likely achieved in part due to a substantial change in the FEMA flood maps which availed them of savings through the National Flood Insurance Program (NFIP).

We are not so lucky as to have such a change,” Bailey said “In addition, they may have different limits on their buildings and contents that we are not aware of.

Also of note, NFIP does not cover pools (or their respective equipment) – anywhere, indoor or out,” e added.

The general manager said that supplemental flood policies that “go over NFIP flood policy are considered to follow form, meaning that if the NFIP policy excludes something (like pools) then so does the excess flood policy.

“Docks and piers currently only have property coverage and are not covered for flood. Avery Hall has found a carrier that will possibly provide such coverage (to the OPA), so we are applying for that so we can get a quote on such coverage” Bailey said.

Part of that statement by Bailey has been consistently contradicted

by Tim Hearn, president of the Captain’s Cove POA. He has said that the Cove POA has been able to obtain supplemental flood coverage for pools, docks and piers through the assistance of an independent insurance consultant based in New Jersey.

Notwithstanding the instruction to hire a consultant, Bailey said that he is preparing to issue a broker services RFP for release next month with a deadline of Oct. 31.

He anticipates presentations by bidders in November and selection of a broker at the board’s November meeting.

In December and January, the broker would gather information to submit to carriers, and in February the broker would begin to shop policies.

In April of next year, the broker would make a recommendation on renewals or changes to the OPA’s insurance coverages.

If Bailey follows through with his pledge to the board and hires an independent consultant, the broker and indendent consultant would do that work together.

Hearn has said that Captain’s Cove’s independent consultant has been able to obtain quotes from carriers that the POA’s broker, working alone, would have been unable to obtain.

He has emphasized that an independent consultant can work with a broker to get the best quotes from carriers.

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Parks, Bailey scolded for way joint meeting with B&F committee was publicized Parks says OPA by-laws don’t require three days notice

By TOM STAUSS Publisher eetings of the Board of Directors traditionally have been publicized on the OPA Web site three days before the meeting, with the posting of the meeting agenda and board packet information available in the “forms and documents” section of the site.

But the Ocean Pines Association by-laws, as noted by OPA President Doug Parks at the outset of a joint between between the board and the Budget and Finance Advisory Committee Sept. 8, don’t actually require such notice.

Parks was responding to a criti-

M

OPA FINANCES

September 2018

cism of him and by extension General Manager John Bailey because notice of the joint meeting was not posted on the OPA Web site until the day before the meeting, with no supporting documentation on the purpose of the meeting.

In fact, the purpose was a discussion of the committee’s recommendations to the board on budget guidance to Bailey in the preparation of the 2019-20 budget.

Notice was posted on the home page of the Web site Sept. 7. The agenda was included, with a reference to the budget guidance topic but no document containing the recommendations.

As of Sept. 11, the recommendations had not been posted on the OPA’s Web site.

Property owner Joe Reynolds told Parks because of the failure to inform OPA members of a meeting of importance in a timely fashion, along with the expected content of that meeting, it should be rescheduled. Parks resisted that suggestion, citing the by-laws.

Section 5.08 says that any notice of a regular of special meeting of the board “shall state the date, time, place, and purpose(s) of the meeting. ... Notice of each Board meeting shall be given to each Director personally or by mail, telephone, or electronic means at least three days prior to the meeting ... Notice of each Board meeting shall be posted at the Association’s office and, when practicable, shall be provided to media sources having a general circulation in the Subdivision and made available to members by electronic and other means.”

The three-day notice requirement applies to directors, not OPA members.

Parks, who did not apologize for the way the meeting was publicized, said it should take place because most members of the committee were present.

Six of seven board members were, too.

Committee chair John Viola, the OPA treasurer and chief financial officer of the OPA, was more apologetic in his response to Reynolds. He said he agreed with Reynolds that notice and the content of the meeting should have been publicized in accord with usual procedures.

He offered to postpone the meeting but left it up to Parks and the board on whether to reschedule.

He also noted that the committee’s budget recommendations were provided to the board at least a week prior to the meeting, with a request that they be posted on the OPA Web site.

Viola said he didn’t know why the usual meeting notice was not provided.

Viola provided a copy of the recommendation to the Progress Sept. 3 in response to an email request.

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OPA FINANCES

September 2018 Ocean Pines PROGRESS

B&F committee forwards budget guidance recommendations to board of directors Panel says prior year losses need to be addressed, which could clash with new directors hope to reduce assessment next year

R

ed the state road reserve account), and the casino source is unpredictable,” the committee says.

Why it makes that claim is not exactly clear. Since the introduction of slot machines at the nearby Ocean Downs casino about ten years ago, the funding stream to the OPA in the form of local impact funds has been steady.

OPA’s status as an authorized recipient of those local impact funds generated from video gaming is codified in state law.

There has been no interruption in the receipts of those funds, roughly $250,000 per year, in all of those years.

Two victorious candidates for the board this past summer, Frank Daly and Esther Diller, explicitly said that the board should work toward a reduction in the base lot assessment next year, with Steve Tuttle, the summer’s top vote getter, also indicating that a reduction was a worthwhile goal.

Among carry-over directors, Slobodan Trendic has been closely identified with proposals to reduce OPA expenses and the desirability of reducing lot assessments.

Other committee recommenda-

tions are relatively straight-forward and probably won’t engender a lot of debate among directors, who met with committee members after a regular session of the board Sept. 8.

Among key recommendation, the committee says that: •Any departmental revenue or expense increase or decrease of 5 percent or $5,000 whichever is less requires justification.

•Relevant “objective performance metrics” should be used in documenting expenses and revenues.

Items should be properly documented or not included in the budget at all. Prior years revenues and expenses by category should be included for reference.

•A membership schedule should be presented with detailed explanations. Revenue projections should be reflected for each category of membership.

•The OPA’s human resources specialist should present to B&F Committee a current payroll study.

The study should contain metrics, comparable salaries for positions in the Budget. There should be an FTE [full time equvilency) schedule by department.

“Any changes to staff will need

to have complete substantiation.

The study should evaluate our salary structure and determine what Quartile classification. There should be a review of benefits and fees,” according to the committee.

•Salaries, overtime and FTE’S need to be broken out by time period.

•Food and beverage budgets should be in line with prior year margins and should be calculated and explained.

“The contract with Matt Ortt should be presented and explained.

There should be a Banquet detailed plan explanation. The Beach Club should be in line with years prior to FY 2016/2017. There should be a budget for Tern’s Grill reflecting the Country Club build. If there will be special banquets or “bashes”, the committee asks for separate detail.

•Legal expenses should be broken out by type of spend (i.e. con* tracts, litigation, etc.) Consultants need to be explained, reason, timeframe, cost perGeorges hour.

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By TOM STAUSS Publisher ecommendations for the 201819 Ocean Pines Association budget by the OPA’s Budget and Finance Advisory Committee includes two suggestions that, if fully implemented by the Board of Directors, could make it more difficult for newly elected directors to fulfill campaign promises to reduce the base lot assessment next year.

In recommendations forwarded to the board in early September, the committee said that “prior year losses need to be addressed with a plan to fund.”

While there was no suggestion that losses of $1.2 million last year and $360,000 the year prior to that would need to be offset in a single year, any plan to fund the losses even over a period of years probably would negatively affect the lot assessment.

In addition, the committee has renewed its call for the funding of road depreciation, a perennial recommendation that falls to the wayside during the protracted annual budget process.

“The funding of roads is now only from casino funds, (the state deplet-

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34 Ocean Pines PROGRESS

OPA FINANCES

September 2018

Budget guidance

Trendic pushes back against funding road depreciation

From Page 33

be presented with all programs. Rec & Parks, Racquet Sports and Marina should provide budgets consistent with other amenities,” the committee suggests.

•Golf Operations “need to reflect the Country Club renovation’s effect. A detail of the inventory for maintenance should be presented.

The Golf Pro Shop should have a separate plan presented.”

•The OPA’s custodial account for Ocean Pines Volunteer Fire Department capital exp[enses “should be closed.”

•The police department, general administration, and finance departments “should provide detail of expenses and any revenue. All consultants must be substantiated.”

•The capital expenditure budget “should be presented separate from operating budget and be structured in a rolling, multiyear format that includes budgeted but unexpended capital items from prior year(s).

Requests for new or replacement capital expenditures should include dollars and rationale.

•Variances should have proper explanations and supporting detail.

No item should be a part of the Capital budget that does not meet the criteria.”

•The Board should call upon he committee “to provide assistance in the review and development of the Reserves. Reference to the Reserve Study guidance. At this time, we believe that there should not be any release of any balances. We need an approved Capital Plan.”

•Management should produce a “detailed current fiscal year spending projection. Based upon this projected spend compared to the fund balance and the detailed work plan for FY 2019, B&F will give guidance.”

The committee also is request detail on Swim and Racquet Club bulkhead replacement staging area issue costs.

The committee offered a timeline for the coming budget process, suggesting that the board of directors should approved budgetary guidance to the general manage no longer than Friday, Sept. 28.

There is no regular meeting scheduled by the board this month in which the guidance could be approved.

Nor has a special meeting meeting been announced during which a decision could be made.

Would save $26.50 on the assessment if board passes on Budget and Finance Committee recommendation

By TOM STAUSS Publisher t’s as perennial as dandelions in the spring and very much in the budgetary weeds. The Budget and Finance Advisory Committee, like it does almost every year, recommends funding road depreciation in its latest iteration of budget guidance, this time for 2019-20 fiscal year.

In a joint meeting of the Board of Directors and the B&F committee Sept. 8, there was some pushback on that idea from Director Slobodan Trendic.

Trendic said that the Ocean Pines’ road resurfacing program is adequately funded by casino local impact funds, and that roads spending on average in recent years has been less than the revenues provided by casino money. The B&F said in its recommendation that casino money is unreliable, but in fact it’s been a gift that has kept on giving since the Ocean Downs casino opened on Route 589 just south of Ocean Pines with video gaming, about ten years ago.

There has been no indication that the state and county will reduce local impact fees derived from video gaming revenues. Table game revenue, on the other hand, a recent addition to the Ocean Downs Casino, is perhaps less guaranteed that impact fees derived from video gaming, according to some reports.

B&F committee chairman John Viola, also the OPA’s treasurer and chief financial officer, seemed less than adamant in support of the committee’s recommendation. He said that if the General Manager does not produce a plan for road resurfacing requir-

I

ing additional resources by the new year, when the OPA undergoes its budget review process, the committee would likely remove its support for funding roads depreciation.

Viola said the OPA should not be collecting more from property owners than is needed for road resurfacing, any more than it should be doing that for bulkhead replacement.

In the 2018-19 budget cycle, Bailey and the board initially were prepared to fund road depreciation in the amount of $26.50 per property, generating roughly $225,000 in revenue. In the 11th hour, the board diverted money from road depreciation and the roads reserve into the operating fund to pay for the ongoing forensic audit.

Trendic, who advocated for the forensic audit but was less than enthused about the funding source, doesn’t want road depreciation funded in Bailey’s initial budget draft. Whether Bailey will go along remains to be seen.

If it’s not included, it would make it more difficult for the board in the 11th hour to divert assessment dollars already baked into the budget for some other purpose.

Trendic has said he believes the base lot assessment can be reduced next year by prudent cost-cutting and other measures, including the defunding of what he believes is unncessary and unwarranted road depreciation.

The forensic audit presumably won’t be a factor in the 2019-20 budget.

Believing in tomorrow

The Ocean Pines Anglers Club and the Atlantic Coast Sportfishing Association cooperate to bring a boating and fishing experience to families who have a child dealing with a life-threatening illness.

These families come to Ocean City as part of the Believe-in-Tomorrow Foundation that provides a weekly respite opportunity at five different locations in Ocean City and Fenwick Island. Susan Blaney, program coordinator, sent a special thank you to the captains and mates that volunteer to take families into coastal waters to enjoy several hours of sightseeing, fishing, crabbing, wading and other activities. Captains participating in this summer’s program are pictured: First row, Ken Thompson, Adam Thompson, Dave Peaper, Frank Watkins. Second row, John Mcfalls, Jack Tellman, Mike O'Malley, Fred Stiehl. Third row, Ricky Kerrigan, John Henglein. Fourth row, Budd Heim, Claude Lewis.

OPA FINANCES

September 2018 Ocean Pines PROGRESS

B&F committee suggests elimination of OPA’s OPVFD custodial account Memo of understanding from 2011 would be retained if OPA board accepts recommendation

By TOM STAUSS Publisher he Budget and Finance Advisory Committee is recommending changes in the way that the Ocean Pines Association handles funding of its share of capital expenditures by the Ocean Pines Volunteer Fire Department. Funding for fire and emergency services is a recognized department within the OPA to record OPA annual contributions to the OPVFD to help fund ambulance services within Ocean Pines and the OPA’s share of OPVFD capital expenditures.

The OPVFD is an independent organization unaffiliated with the OPA. The proposal, initially recommended by a subcommittee of the B&F committee headed by member Larry Perrone and supported by the full committee, would amend the 2011 Memorandum of Understanding between the OPA and the OPVFD. One significant change in the MoU would be the elimination of a separate and controversial custodial reserve fund that the OPA has used over the years to pay for OPA’s share of OPVFD capital equipment or buildings. A significant expenditure from this reserve in the amount of roughly $200,000 was made during the administration of former Acting General Manager Brett Hill early last year to pay down debt associated with the North Side firehouse.

Hill said he had been unaware of the existence of the custodial reserve until learning of well into his one-year tenure as acting general manager.

The custodial reserve fund is controversial in part because it was not established by board resolution in accord with OPA bylaws. Nor has it ever been recognized in the official annual audits of OPA operations. Since the paydown of the firehouse debt, the amount contained in the reserve fund, a checking account initially held in a local branch of PNC Bank, the reserve reportedly has held only a nominal amount of OPA funds.

In an Aug. 21 memo to the B&F committee by Perrone, he said that in the “spring of 2018, significant actions were required by the Board of Directors of OPA and the OPVFD to ensure that funding of the Fire Department was in accord with the MoU. After that action, the B&F Committee was asked to review the MoU and provide recommendations. Over the last few months, a sub-group of the OPA B&F committee reviewed the MoU” and came up with a number of recommendation to the board of directors.

What Perrone didn’t say in his memo is that the OPA had withheld operating funds from the OPVFD in the months of February, March and April, resulting in a polite demand letter from the OPVFD to the OPA asking for the withheld funding. The OPA complied with the request, and included

T

funding for the OPA’s share of a new ambulance that the OPVFD purchased and began operating in 2017-18.

The payment, though made in the 2018-19 fiscal year, was included in the audited results for 2017-18, apparently with the blessing of the OPA’s auditing firm.

In its recommendation to the board, the B&F says the current MoU should remain in effect, but with changes.

The committee recommends that: • the MoU should be changed to eliminate a 10 percent hold-back by OPA for OPVFD capital purchases.

• the MoU should be amended “to reflect that OPVFD must obtain OPA approval of all capital purchases in excess of $20,000.”

• The OPA checking account that holds the custodial reserve and used “to hold the 10 percent hold-back” should be eliminated.

• As part of the OPVFD annual budget, funds should be included to “provide accurate quarterly financial statements to both parties.”

• The MoU should be “simplified to the extent possible so both OPVFD and OPA can administer it without the need for extensive accounting assistance.” This recommendation presumably would eliminate a complicated “true-up” process specified in the original MoU, in which overages or underfunding of the OPVFD in one year fiscal year would be made up in the following year. Earlier this year, Hill said to the best of his knowledge, the true-up process was seldom or never used since it was established.

Additional recommendations include improving the budget process with the OPVFD by including a pre-budget meeting between the B&F committee representative, the general manager, finance director and OPVFD representatives. Also, as part of the annual budget process meeting, the OPVFD as required by the MoU would annually update a capital replacement schedule and meet with OPA and B&F committee representatives to discuss current and projected capital asset acquisitions.

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36 Ocean Pines PROGRESS

September 2018

Solid results in July trim operating fund deficit the negative variance through June exceeding budget by $74,671.

OPA’s first quarter negative

OPA FINANCES

quarter.

In July, golf produced a $23,886 surplus, ahead of budget by $14,158.

Through the first quarter, golf is in the black by $105,817, ahead of The year-over-year improvement budget by $82,110. of $137,712. in half variance to budget is cut almost This is very close to golf’s perforwas significant. A year ago, the Better than budgeted perforBy TOM STAUSS mance a year ago, when, after the Yacht Club’s lost $163,117 through mance at the Yacht Club and Beach Publisher first quarter, golf operations had reClub in July, with August numbers the first quarter.

The Beach Club recorded a corded a $107,119 surplus. he Ocean Pines Association expected to be similarly positive, Actually, however, the overall $52,336 surplus in July, beating explain most of the turn-around in had a very good month in picture for golf is better this than budget by $11,633. the OPA’s financial performance July, financially, recording last because the Tern Grill food and For the first quarter, the Beach through the first quarter year over a $68,464 positive operating fund beverage operation, back under the Club produced a $27,694 surplus, year.

Golf operations are also comvariance to budget and trimming supervision of Director of Golf John about $35,000 behind budget. fortably ahead of budget for the year. what had been a negative operating Malinowski, is in the black.

A year ago, the Beach Club was The Yacht Club recorded a fund variance to budget of $137,712 For the first quarter, the Tern through the first two months of $100,300 surplus in July, exceeding roughly $70,000 in the red for the Grille recorded a $4,810 operating first quarter. budget by $75,060.

2018-19 by roughly half. The cumusurplus, behind budget by roughly Golf operations are also doing For the first quarter, the Yacht lative negative variance of $69,248 $3800 but better than a year ago, well through the fiscal year’s first Club produced a $78,199 surplus, through July compares favorably to when the amenity was $3,752 in the red.

JulyAlthough 2016Ocean PROGRESS 53 OPINION in Pines the black for the first fession reportedly sets a range of 30 to 70 percent as Clarke points to three years of cumulative Yacht quarter and likely to be a net reveElection Commentary within acceptable limits for ACC funding. The OPA Club deficits. Clarke and Gomsak, elsewhere in this From Page 52 currently funds its replacement reserve at the low end edition of thenue-generator Progress, spar over which three years for the OPA by year’s by the multitude of candidates. of the “acceptable” range. should be used for analytic purposes.

Aquatics hasnew fallen well under Supik is seen as a Thompson cheerleader, and For what it’s worth, Thompson reportedly has Let’s look atend, the two years the facility has been someone in the mold of Pete Gomsak, a former board recommended 50 percent funding of the ACC, to be open. An OPA member could take a look at the April budget for the year.

30, 2016, (end-of-fiscal-year) Yacht Club profit-loss member and current assistant OPA treasurer very achieved over ten years; the recommendation is constatement to conclude that the new Yacht has much aligned with the Terry-Jacobs faction. tained in a document that the board majority won’t Aquatics recorded a Club $11,053 not performed well financially.

Both Gomsak and Supik are retired accountants, let him release to the OPA membership. surplus in July, missing by The statement is posted on-line on thebudget OPA Web both are identified with the notion that OPA reserves A 50 percent funding level still would require a sigsite (under forms and documents, monthly financials). are underfunded, and both are wedded to the idea nificant increase in the lot assessment, over a number $39,974. exclude depreciation, which Operational statements that the OPA’s reserve levels should be tied to someof years, and talking about assessment increases is appear in departmental summaries in the thing called the annual component cost (ACC), a comnever popular, especially during election season.

Through the first contained quarter, the deannual audited financial statement released in early putational confection conceived and embraced by the The rationale for keeping the document secret, acAugust. The unaudited numbers usually come close to accounting profession. cording to Thompson, is that it is a working document partment has produced a $284,472 the “official” ones available in August.

Gomsak and Terry tried to persuade Supik to run involved in the updating and completion of the OPA’s surplus for the OPA, is under The Yacht Club’s operational loss inbut 2015-16 was for the board last year, failing to do so, but they sucongoing reserve study. $76,219; a year earlier it was $181,875. ceeded this year.

That’s absurd, because the document itself is combudget by $115,473. A year ago, the Granted, the year-over-year improvement was sigIf anyone is the anointed candidate of this particuplete and has been referenced in one or two board nificant, but asurplus loss is a was loss and a $76,000 lar faction, it’s Supik in spades. meetings. Property owners paid for that document, $406,477 for loss the (plus first hefty funded depreciation on a $5 million buildSupik has said that, as chairman of the Budget and and it ought to be released immediately. ing) this past year still requires a substantial subsidy Finance Advisory Committee, she is used to navigating quarter.

Thompson seems willing to release it, but he’s bethrough the annual lot assessment. in very roiled waters, forging a consensus in a group ing stymied by some of his board overseers, who in Lastshed year, thelight OPAondidn’t offer Supik could have more the subject with, at times, sharply conflicting views. this instance prefer secrecy over disclosure and transhad she indulged in less cheerleading on what the Other candidates over the years have said that parency. Perhaps they fear that the Thompson recoma parking-only option at the Beach most recentl numbers actually say. they, like Supik claims now, can end board factionalmendation could become an election issue, adversely Supik also Club, seems but firmly in past the camp of replacing ism and infighting. It continues, despite the best efaffecting certain candidates, particularly Supik, who this February, as part (rather than repairing and renovating) existing ameforts of those who say they can end it. has been open in her viewpoint that OPA reserves are ofCountry the 2018-19 budget, the of nities, with the Club an example of Board that. The Factional infighting will probably continue regardunderfunded. current minority faction favors substantial renovation; less of who is elected this year. It goes with the terWhat they don’t seem to realize is that by keepthat possible. it’s not certainDirectors where themade majority stands.

With Some Supik ritory. It becomes ugly when the infighting becomes ing it secret, it could also have the effect of adversely part of the majority, the board gain ato voice personal, such as when one director says he’s going to affecting certain candidates, particularly Supik, even members who lastwould year opted buy strongly biased in the direction of replacement. throw a colleague through the wall for the temerity more so than if they had allowed Thompson to release The candidates most likely to embrace Thompson’s of seeing issues differently. his recommendations, and their rationales, to the OPA the bundled parking-pool passes continued tenure as general manager are Supik, SiOcean Pines’ ACC has been estimated at roughly membership. thisprobably year to buy parking mon, Daly, Rayelected Unger, and Larrythe Perrone. $14 million, which could mean that OPA reserves are Supik also has come under fire from former board Those who like the status quo are not without opunderfunded by $10 million if 100 percent funding of member Clarke for her public statements to the effect only option instead, significantly aftions. Perhaps too many, but that’s how it is this electhe ACC is the goal. that the OPA and the Ocean Pines Yacht Club is doing tion season. – fecting Tom Stauss Actually, have to be; the accounting well fi nancially.

Aquatics membership reveOperating resultsitbydoesn’t Ocean Pines Association departments in Julypro2018. Source: Director of Finance Steve Phillips nue.

The negative variance to budget in membership revenue is $88,580.

The Ocean Pines journal More than halfProgress, of thata negative of news and commentary, is pubvariance is offset by higher than lished monthly throughout the year.

It is circulated in Ocean Pines, Berlin, budgeted revenue for Beach Club Ocean City, and Captain’s Cove, Va. Letters and other parking, which is editorial $46,300 submisahead of sions: Please submit via email only. budget the be year.

Lettersfor should original and exclusive the Progress.

Include phone All toother amenity departments number for verification.

Fast, Courteous & Efficient for the first quarter of the fiscal year 127 black Nottingham Lane ahead of are in the and are Lawn Care Service Ocean Pines, MD 21811 budget.

PUBLISHER/EDITOR If August results for the OPA mirTom Stauss ror thosetstauss1@mchsi.com in July, it’s possible that 443-359-7527 the cumulative operating deficit for Advertising Sales the first four months of the fiscal Frank Bottone year will be 410-430-3660 zeroed out.

Reserve summary -- As of July ART DIRECTOR 31, the OPA Rota had Knott 10,281,834 in re•Lawn Mowing, Edging & Trimming•Aerating•Landscaping serve CONTRIBUTING accounts, comprised of $6 WRITER •Mulching•Shrub Maintenance•Leaf Removal•Powerwashing Knott million in theRota replacement reserve, InkwellMedia@comcast.net $3,140,014 in the bulkheads and 443-880-1348 waterways reserve, and $1,141, in the roads reserve.

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Ed Tinus, Write-In Candidate For Delegate District 38C, Maryland House of Delegates Why I am seeking office: From the desk of: Ed Tinus

Age: 59 years Occupation: Master Upholsterer, Universal mechanical technician

ForFirst, God,ICountry, Community.

To serve with transparent, interactive, representa-can down load the ED App -- an inwant toAnd thank the hundreds tion.

We have the technology for all voters to securely be engaged with the political teractive vehicle that will drive you to of voters that elected me to the Central process.

We The will have an voting App for your smart devises. A vehicle that will drive you to Annapolis from the comfort of your Committee.

Primary turnout the open doors of legislation in Annapolis, from the comfort of your own home. Down was low. The winner received under 2000 own home. Download the Bills that load Bills and take an active roll with digesting the verbiage. Citizens and government votes.

This campaign speaks out against are in session, help me digest the intechnician working together interacting on your Rights, Laws, Tax’s. Returning more power to the both party’s method of representation. It formation, vote on term limits, repeal people of our community. Regardless of your party affiliation. To protect the services for is archaic, mathematically improbable and unconstitutional laws, hold your repour DD 214 Veterans as well our first responders they are my real hero’s. To serve with alienates the voters from interacting with resentatives accountable, and have an honesty, integrity, and morals to lead us into a Better Maryland. Praying that my Trust in their representatives. active role in protecting your Liberties ent, interactive, representaGod as a Forth Degree Knight of Columbus, guides me to represent you well. Amen.

It was no surprise that the establishment

and Rights.

engaged the political voters with of Ithestand: primary chose a candidate The Archaic Method: 3000 Bills in Where who will conform to the archaic method a 90-day legislative session? Not one hicle that will integrity, drive you 1: Voting everyto election cycle some of our votes are mishandled, lost, or simply not counted. The archaic of daily business in Annapolis. representative canpaper read ballots and underof voting has outgrown itself. The State Board of Election does ts very best trying to upload to ort ofmethod your own home.

Down The primary system has failed unaffiliatstandwith all the verbiage.

Theyall form comintergrade with our technology.

A few basic measures can make your votes more secure little cost. That forms ge. Citizens and government ed photo and Democrat voters. leaves onlyU.S. onecitizen displayed. That your voting registrationmittees; receives stack Bills of I.D. from MVAItwill have is swipeeach stripe codeda on theofbotcandidate on the ballot, thus subjugating to review.

Then the committee informs tom back.

This way when you Returning more power to move the your voting registration is automatically transferred. Even in the event of death as those voters not to have a choice of candirepresentative vote. your license expires so does your voting status. The merchant processing equipment your can be adapted tohow this to I.D. pro-That tion. To protect the services for dates minimizing to vote for. the cost and time. is second-hand information. This is cess, am aConstitutional Constitutionalist.

Theare constihowfor mistakes are made. my real2:I hero’s.

To serve with Our Rights undermined and disregarded. Example: Our new law gun control HB 1302 viotution states that all voters have the right Ex: HB 1302 the FLAG several laws. Our representatives have overstepped the boundaries of what The Maryland ConstitutionRED allows yland.lates Praying that my Trust in to votetoinenact all elections.

You Constitutional cannot vote if nature. We the People through a popular vote BILL. This is unacceptable mathethem law of this must first amend the and Maryland doesn’t happen. there is you no choice.

On these matically improbable.

Take a jar of jelrepresent well.

Amen.

Constitution granting ourgrounds GeneralI filed Assembly the right to do so. The Republic and society has no checks and balances in

Everyone that talk apolitics with of andcommunication place to hold our elected into officials accountable.

With the EdI App new level allow the voters to to continue our campaign the Genly beans, askwill a 10-member committee listensthat to my agenda, all state “That’s How have a voice as ofarepeal. must not make laws break laws. eral Election write-inWe candidate.

Now to guess the amount. They will always

is Supposed to be funding .” My agenda is simProtecting Security, Bay, our first responders, education To 116 we3:have a choice,Social but still the SBErestoring will not theitChesapeake have anand incorrect vote. needs.

Now have ple.

Give the voters more Power to hold reduce taxes through wiser spending. my name on the Ballot?

Voters not counted. The archaic voters guess the amount and the vote es are display mishandled, lost, orThe simply me accountable and interact with me on will have to Write-in Ed Tinus in the area will be greater than 87% correct. The Election does ts very best trying to upload paper ballots to basisisthrough our Smartmethod Devices.of representation.

We stand at the edge of a great divide ona daily one side our traditional Where Wayne H the below Hartman’s name. more people digesting the Bills, offers his O.C. councilmen experience of regulations, fines, and tax’s that gives him the ability to vote for you in AnBoth parties do not want you to gain Change votes is not easy.

If Hartman wins he n make your more secure with little cost. That all forms more perfect the outcome. Imagine napolis.

Remember the tax payers of Worcester county paying forgovernment.

50% of the inlet dredging?

Joe thousands S stands on the power to are regulate your will learn how the archaic method of repeventually having ofthis civic hat your voting registration is swipe stripe coded on the bottraditional Working as a Hogan appointed agent to follow leadership of Mr. Hogan.

Mr. Hogan A Write-in DNR vote for Ed Tinus is an the investresentation side worksalso. in Annapolis.

Nothing minded voters interacting with me in signed HB 1302 law.

Theorunconstitutional gun regulations.

Joe that he will protect rights?

Ed ment forthe you and your grandchildren.

My on is automatically in event of states death as will change otherinto thantransferred. a name party. Even helping myyour vote gun be more effective.

Tinus the leadership effective change.

Standing steadfast calling representation agenda is a evolutionary process that willfor theI evolution Theoffers Plain Truth is that 60%into of thereal voters ask you toofgrab the Bull by the hant processing equipment can begovernment adapted to this I.D. prothrough technology.

Where citizens and work together for a Better Maryland.

Both parties do want lead us together into a future of represenare fed up with politics, hence the low priHorns and invest in a votenot for Write-in the loss of power to the voters for intervention. never therefore I am not beholding to any special tationIthat youask willfor be donations integrated with. mary turnout. 33% do not bother to vote; candidate Ed Tinus for Delegate 38C. interest. The voters will hold me accountable.With your Smart Devices the voters realize no matter wins,law change arded.they Example: Ourwho new for gun control HB 1302 vio-

Vote of EdEd Tinus forfor Delegate Primary, Tuesday, JuneNov. 26, 6,2018 he boundaries what The Maryland Constitution allows Write In Tinus Delegate38C, 38CRepublican in the General Election, Tuesday, 2018 Early Voting June 14-June 21, 10Maryland a.m.Nov. to 8 1,p.m. eople through a popular Early voteVoting must firstOct. amend the Thursday, 25, through Thursday 10 a.m. to 8 p.m. www.united-us.org do so. The Republic and society has no www.united-us.org checks and balances in Paid for by Friends of Ed Tinus, Curtis Andrews Treasurer d App a new level of communication will allow the voters to

38 Ocean Pines PROGRESS

OPA FINANCES

September 2018

then subpoenaed by WCBI. • viewed portions of video from cameras in OPA administration building for certain dates selected based upon timing of missing cash deOcean Pines PROGRESS July - Early August 2014 WORCESTER posits (viewed in the detective’s office).COUNTY • obtained from the Bank of Ocean City list the performance matters program in- tion project and the completion of the on the same SES property fora slightly of feasibility all OPA accounts compared stead.

Showell Elementary School more atand $37.4 million. to accounts From Page 40 Zanich and Henderson gave brief study.

Overall, after including design and maintained on OPA’s books. overview of the program, how it is any used, The plan outlines the challenges fac- management fees, playground equipties and to have a health andThere’s wellness no indication yet whether • attempted to access the OPA’s MICROS committee site coordinator who oversees and the benefits of an assessment data ing the schools system, including popu- ment, movable equipment, portable point of sale system data from for system. of thedrive renovations this committee. serious fraud or theft will be uncovered lation growth, aging buildings, technol- classrooms, phasinga hard periods in 2016 and early 2017, but it was deThe performance matters platforms ogy needs, and changing program needs. and additions, technology costs and misIn the area of staff wellness, the pollink student and educator data.

The A major renovation and addition or cellaneous costs like inspection fees, it icy states that the Worcester County termined that the system was set up with a reThe investigators did not disclose why the Worcester County Bureau of Investigadata is used to drive the decisions made replacement school project at SES has will be less expensive by about $4 milpublic school system will promote staff tention period of 370 days and the information bank did not just turn over the documents retion detective and Jim Kern of Gross health and wellness by providing a va- by teachers, administrators, board mem- been prioritized in both the school sys- lion to build a new school than renovate longer available. quested withoutstudent requiringtem’s a subpoena.

Mendelsohn, the OPA’s forensic bersauditand parents to improve educational facilities sought master was plan no and expand the old one. riety of organized programs for staff, • reviewed numerous AMEX corporate credlearning and educator performance.

The and the capital improvement program The cost of keeping the current buildAccording to the post summary, Kern and the ing firm, met with Banktheir of Ocean City’s designed to enrich and the improve system can be used for teacher observafor many years. ing but renovating it and adding on was nutritional, physical, mental and emoit card charges for IT upgrades and equipment detective: president/CEO and vice president/bank secution and evaluation.

In May, the school board voted to $44.8 million while the total estimattional well-being. purchases, reviewed fixed asset reports, and dis• reviewed documents produced by Bank of rity officer in August to obtain information re“We believe that in using data we can move forward with planning for the ed cost of building a new SES was just The Board of Education during its cussed them with information technology Ocean in student. response to the subpoena, per-Showell garding the handling and of OPA’s meet the needs City of every construction of a new Elemen$40.9OPA million.

June 17 meeting also heard an processing update better specialists.

It is part of our success in helping our tary School, based on the results of the Finally, during the meeting the formed detailed tracing of deposits listed on deposits duringmatters July and August of 2017. on the performance program. students be successful for life.”

Zanich Showell School feasibility study.

The school board approved the fiscal year Worcester County Public Schools Gross Mendelsohn’s Technology Solutions bank’s deposit log form to deposit information in The team posted a summary of its August said. board accepted the recommendation of 2014-2015 operating budget for Worcesusesactivities a variety of types of data to create Group (IT Specialists) performed a network OPA’s records, identified questions based on reon the OPA Web site early this The school board also adopted an up- the architectural and engineering team ter County Public Schools. its master plan, goals, and instructional security assessment, including obtaining inforview of bank’s documents, evaluated bank’s month. dated educational facilities master plan, led

by Beckerthe Morgan Group to proceed The budget includes funding for salprograms. mation about OPA’s IT system and practices which is required annually to be subwith the design of a replacement school processing of certain deposits and met to discuss ary step increases for eligible employIt the wasyears the we fourth summary posted “Over havesuch discovered to the Maryland Department of at an anticipated cost of about $37 milees, scans, a longevity step, a .5 percent thatsince this the could be an arduous task.several It mitted through internal external scans, ques-cost observations and questions. forensic audit began months 1. lion. of living allowance, a 3 and percent increase had ago. become an overwhelming burden to Planning by July • tionnaires, documentation review, discushad a second meeting with Bank of Ocean The 2014-2015 Plan is presented in The consultant determined that the for bus contractors and an 8 percent our teachers. We searched for a way to sions withforOPAincrease personnel.

City’s vice president/bank security officer, and comparable It’s clear from sections: goals, standards and guide- construction costs were in insurance rates. The budsupport ournot teachers in thethe useinformation of this fiveposted A report has been and will be pro- of also met with the bank’s Ocean Pines branch lines; community analysis; enrollment renovating and expanding the existing get also prepared includes major expenditures whether the investigators getting close to data,” Coordinator of Instructionare Stephprojections; inventory and evaluation of school versus building a completely new $354,000 to replace gymnasium floors at anieferreting Zanich and Data Specialist Rebecca vided to the OPA this month. manager, to ask questions based on the review out fraud or outright theft. school facilities; and facility needs anal- facility. Because of the extensive nature Berlin Intermediate, Pocomoke Middle Henderson said in their written report The team began preparation of a report on a of the documents produced.

The WCBI detective and Kern ysis. identified All five sections have been revised of the renovations and expansion that and Snow Hill Middle schools, $144,000 to the board. forensic investigation of the food and beverage The detective and Kern developed a list of addocuments to be requested, which, they said reflect current information, including would be required, the cost of that op- to replace gymnasium bleachers at SteThe school system started using a to also will be issued this month. documents to be requested which were successful bidding phase tion was estimated at $36.8operations, million. Onwhich “had called to be subpoenaed

by WCBI.” phen Decatur High School and $200,000 program Edusoft but quickly dis- updates on theditional

Forensic auditors, County Bureau 40 of Investigation team up to interview School board bank officials in ongoing probe

A

covered it was not robust enough. Using Race to the Top funding, it purchased

and start of construction for the Snow Hill High School renovation and addi-

the other hand, the consultants said a brand new school could be constructed

in non-recurring costs for student technology.

September 2018 Ocean Pines PROGRESS 39

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COVER STORY

September 2018

Country Club RFP From Page 1

The directors neither endorsed nor rejected Bailey’s recommendations, initially putting off a decision until a special meeting the following week on a suggestion by Director Ted Moroney. Bailey said the revised RFP should be issued “as soon as possible” in order to allow contractors time to submit proposals by a new deadline of Oct. 5.

But that special meeting, subsequently scheduled for Sept. 15, never happened.

Director Slobodan Trendic told the Progress that OPA President Doug Parks decided not to proceed with the meeting, in effect freeing Bailey to proceed with his proposed changes in the RFP and giving contractors as much time as possible to submit proposals based on the new streamlined specifications, The OPA’s architectural and engineering firm, Davis, Bowen and Friedel, will be assisting Bailey in revising the bids specs.

Under the assumption that contractors would submit proposals with these simplified specs, Bailey expressed the hope that the board would be in a position to select a contractor at its scheduled Oct. 20 monthly meeting.

Trendic and Parks sparred over the content of the original RFP. Trendic criticized Parks and Bailey for sending out the RFP without giving directors an opportunity to vet it before it was posted last month.

Trendic said his original motion earlier this year calling for an RFP included the board review provision which he said both Parks and Bailey ignored.

Had this review occurred, Trendic said, it might have been possible to catch problems with the RFP that deterred builders from submitting proposals.

Parks disagreed. He said a board review would not have resulted in a different outcome in the bid process.

Trendic told the Progress that given an opportunity to review the RFP he would have concluded that it was far too cluttered with options and that the liability provisions would deter contractors.

“This situation was avoidable,” he said.

In discussion later during the Sept. 8 meeting, Trendic said he was not “sold” on the changes recommended by Bailey.

Other directors demurred, with Moroney suggesting that more sub-

stantive discussion should occur during the special meeting that ever happened.

The board debate during the Sept. 8 regular meeting was foreshadowed by a lengthy discussion of escalating costs of the Country Club project during a Sept. 1 work session.

Directors Trendic, Esther Diller, Steve Tuttle and Frank Daly critiqued rising cost estimates, expressing hope that the board would trim them once bids were submitted and vetted by OPA management.

At the time, no one was suggesting that area contractors wouldn’t submit proposals by the Sept. 7 filing deadline. That apparently caught everyone by surprise.

In the work session, Trendic said that $510,000 had been expended so far on the Country Club, with another $1.3 million or more estimated for the second floor.

By the time the project is completed, he said the cost could be “borderline” $2 million.

After telling his colleagues he was “struggling” with escalating costs, he said the project should be scaled back to “what is reasonable to

all members, not just golf members.”

He cited the fixed bar in the main meeting room as one item that could be eliminated.

Trendic several days later went back to inspect the Country Club after a heavy rain and discovered no leaks, suggesting to him that roof issues may have already been addressed, at least to some degree.

Daly questioned the need for several items, including replacement siding, replacement windows and interior blinds among them.

Diller said she had a problem with spending so much money for a new roof line, later adding that she also had a problem with spending “this much money for a small number of people,” alluding to golfers.

OPA Treasurer John Viola, who chairs the OPA’s Budget and Finance Advisory Committee, pushed back against the idea that the second floor is primarily a golf amenity.

Acknowledging that it will be used for golf banquets, Viola said it will also be used by other organizations for meetings.

It also is the venue anticipated for board meetings, with improved audio and visual equipment.

Viola said that whatever the board decides to do about the Country Club, “it should do it fast.” He said that leaks persist and that at the very least the building needs to be sealed to avoid more damage to the $500,000 investment already made on the lower level.

That was Moroney’s main point, as well, emphasizing the need to fix what he called the building “envelope.”

Director Steve Tuttle remarked that flat roofs are the worst possible design for buildings.

He also said that it appears that the renovation is shaping up as a “Cadillac. I’d like to buy a Chevrolet” instead, he told his colleagues Unaware that the bid process wouldn’t produce any pertinent data by the Sept. 7 filing deadline, Parks said the “bid process” would produce clarity on which of the 11 original add-ons would be the “Cadillac options.”

He also said that of the $500,000 spent so far on the lower level, about “$384,000 was cash out the door,” with the remainder labor provided by the OPA’s Public Works Department.

Showell Elementary School construction to begin this fall

Commissioners approve $39 million contract replacement of aging school

By ROTA L. KNOTT Contributing Writer fter years of debate and planning, construction of a new Showell Elementary School will begin in October. The Worcester County Commissioners, during an Aug. 7 meeting with representatives from the Board of Education, the project’s construction management firm, and architect, approved $39.045 million in contracts for the long-awaited new elementary school on Route 589 north of Ocean Pines.

Lou Taylor, superintendent of schools, said he anticipates holding a ground-breaking ceremony this month, beginning construction in October, and opening the new facility to students for the September 2020 school year.

The commissioners voted unanimously to approve bids for SES. The documents also have to be forwarded to the state for its consent. Commissioner Jim Bunting said of the cost of replacing SES, “It didn’t come in where I wanted it,” but he said the school system did the best it could do to reduce the cost.

The school board held bid opening for proposals received for the project on June 13 and received 29 bids for the 15 bid packages for work on the school. Those bid packages include site work, concrete, masonry, structural steel, carpentry, roofing, paint, carpet, tile and flooring, food service equipment, gym equipment, mechanical, electrical, drywall and acoustical, and windows and related features.

After reviewing the bids, Oak Contracting LLC, the construction management firm for the project, presented 15 of them to the Board of Education for consideration in the amount of $39.045 million. The bids were approved by the school board on July 17, contingent upon final approval by the commissioners.

The commissioners reviewed a summary of the approved bids awards, approved bid alternates and updated the project budget, which includes building and construction costs of $34.83 million and site work and demolition of $4.215 million. However, the total cost of the new school is more than $47 million, including design and construction management fees.

With the State of Maryland set to contribute just $8.672 million of the total funding for the new SES, Worcester County will pick up the tab for the rest. On June 11, the state Interagency Commission on School Construction approved the school system’s capital improvement program request for $4.336 million of the $8.672 million total maximum state allocation for the project. The school system will request the balance of the funding in its FY 2020 capital improvement program in October.

A

September 2018 Ocean Pines PROGRESS

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42 Ocean Pines PROGRESS

CAPTAIN’S COVE

September 2018

Wilder named GM by Cove board, will be defending against Ward criminal complaint in early October

By TOM STAUSS Publisher ustin Wilder, communications director of the Captain’s Cove property owner association since March 2013, was named general manager of the Cove POA in August by the Cove Association’s board of directors.

Cove President Tim Hearn said that Wilder accepted the board’s offer. Previously, Hearn had indicated that the board wanted to promote from within the Cove POA for the recently reestablished position, last filled more than six years by Lance Stitcher.

Hearn, who has announced that he will be stepping down as Cove POA president when a new board term begins later this year, in some ways served as a defacto general manager in his volunteer role as Cove president.

Earlier this year, a consensus emerged on the board that it was time to hire a full-time general manager. Wilder will continue with his communications director duties in

J

his expanded role.

According to a press release posted on the Cove Web site, Wilder’s role includes working with the board to “manage important Association matters, including compliance with state regulations and [Captain’s Cove] organizational documents and procedures. In addition, this position will work with the board of directors to collaborate with the facilities, finance, food, beverage and golf operations aspects of the Association.”

His office will continue to be located above the golf pro shop in the Town Center complex of Captain’s Cove.

One of his first actions as the new general manager was to set a GM’s community meeting for the afternoon of Sept. 12, including a member’s and candidate’s forum. There is no board meeting set for September or October, at least so far.

Prior to his appointment as communications director, Wilder was employed with the Babcock & Wilcox Company in Charlotte, North

Carolina, where he was in the Corporate Communications Department of this publicly traded energy company. He received his bachelor’s degree in journalism from Averett University in Virginia, and worked for the Lynchburg News & Advance as weekend an business editor after he graduated from college.

Since 2013, Wilder has managed the Cove Web site and has overseen the site’s message board, sometimes responding to comments from Cove property owners.

He generally has tried to respond to criticism in a measured way, for the most providing factual information without engaging in debate with members.

But he has found himself in the crosshairs of a continuing dispute between the board of directors and property owner and former director John Ward, who recently filed a criminal complaint against Wilder for his involvement in posting private tax information lae last year in the form of federal 1099 forms on the Cove Web site.

Wilder’s trial in Accomack County District Court is scheduled for early October. His defense is being handled by the Cove’s insurance company, but Hearn said the Cove POA will be bearing the cost of the lawyer because of the insurance company’s deductible.

Recently, Hearn was found not guilty for his involvement in the posting of the 1099s late last year.

Complaints were filed against him by seven Cove residents, including Ward. The latest complaint against Wilder was filed by Ward only.

Ward told the Progress recently that Wilder, called to the stand during Hearn’s trial, testified that he didn’t recall who told him to post the information on the Web site.

According to Progress reporting last year, it was Hearn who advised Wilder to post the 1099s, initially without redacting Social Security numbers. The Social Security numbers were subsequently removed from the posted 1099s, which appeared on the members only section of the Cove Web site.

More recently, Hearn told the Progress that the decision to post the information was made by the board of directors, in response to a request by Ward to provide evidence that $200,000 or more had been paid out to board members and members of the Environmental Con-

Expires 10-21-18

To Page 44

September 2018 Ocean Pines PROGRESS

Cindy Welsh

43

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44 Ocean Pines PROGRESS Justin Wilder

CAPTAIN’S COVE

September 2018

From Page 42 trol Committee in the years prior to 2012, when Hearn and business allies effectively took control over of the Cove POA, known officially as Captain’s Cove Golf and Yacht Club.

The dollar amounts posted on the Web site didn’t come close to $200,000, but Hearn said that was because there were no 1099s posted for ECC members, who were considered Cove employees and therefore did not receive 1099s.

He said at the time that federal and state law precludes the public posting of private employee information.

Hearn has described the payments as travel expenses to and from board and committee meetings.

Ward told the Progress in a recent email that fees paid to board members and ECC members prior to 2012 were not related to travel, but were a form of compensation for attending meetings.

He said receiving a modest payment to attend meetings is normal in the corporate world and that there’s nothing immoral or improper about it.

Hearn told the Progress that directors and committee members should not expect to be paid for volunteer work, and that cutting out the payments saved the Cove POA significant sums of money over time.

Hearn said he simply declared that former directors and ECC members had taken money from the Cove POA, being careful not to accuse anyone of breaking laws.

Ward said depending on the outcome of the Wilder complaint, or perhaps even before that outcome is known, he is considering filing a complaint against the directors for their involvement in the posting of the 1099s, which he said is a violation of Virginia privacy law against the public dissemination of private tax information.

Hearn said that it’s possible the Cove board, working with its insurance company, will file a civil action against Ward to recover costs associated with Ward’s complaint against Wilder.

Hearn, who hired his own attorney to defend himself in the earlier court case, said he, too, may consider filing an action against Ward to recover his legal expenses.

He said a decision on how to proceed will be made after Ward’s complaint against Wilder is decided in early October.

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From Page 46 July 30th board meeting -- Th June 7 board meeting cancelled b cause of the Hearn arrest has bee rescheduled for July 30th, with very light agenda, Hearn has a nounced.

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OPINION

September 2018 Ocean Pines PROGRESS

45

COMMENTARY Recommended budget guidance for board’s consideration agreed that absent a road resurfacing plan with costs that aren’t met by casino funding, road depreciation should not be funded next year.

The GM recently attempted to justify the need for bolstering the roads reserve by alleging, without evidence, that replacement costs for roads is $400,000 per mile. There’s research that suggests actual replacement costs in the real world are one fourth that. Ocean Pines roads are mostly relatively narrow tar and chip side streets (less expensive to resurface than asphalt on the wider Ocean Parkway) and don’t have bike paths or other add-ons that could increase resurfacing costs. They’re Chevy’s, not Maseratis.

During the last budget cycle, funding roads depreciation almost made it through the process.

It was deleted in the 11th hour on Director Ted Moroney’s suggestion. Assessment dollars already baked into the budget for road depreciation was diverted -- repurposed is the politer, politically correct -- term, to be used instead to fund the forensic audit.

And yet the roads reserve as of July 31 held $1.141 million of OPA assessments dollars, more than enough to cover roads spending in the current fiscal year. Clearly, additional funding was not needed for roads this year and never should have budgeted to begin with.

Including it again in the draft 2019-20 budget creates the appearance if not reality of a quasi-slush fund easily diverted for some other purpose when the need arises.

According to its recommended guidance, the committee would like to establish a plan -- no details are provided -- to fund prior year operating deficits. No rationale is provided for why this is deemed necessary or presumptively desirable.

Nor is any explanation offered for what happens if prior year “deficits” are not the subject of a funding plan.

There’s a good reason for that. Actually nothing happens, so long as the deficit sins of yesteryear are not repeated ad nauseum. So the operating fund has a cumulative deficit. Big deal.

That can be whittled down by surpluses. The OPA in the current year budget made some substantive downpayments on that objective in this year’s budget.

All OPA “funds” held in short-term investments are co-mingled, so the operating fund is better understood as a conceptual construct. The OPA balance sheet is healthy, with short-term investments almost $3 million better as of July 31 year-over-year. Operating checking accounts funds are about $1 million less year-over year, suggesting improving cash and asset management by the OPA. The point is, even with last year’s operating loss, the OPA financial condition remains healthy, even robustly so. The balance sheet is the more accurate barometer over the gossamer operating fund.

The language in the committee’s recommen-

dation implies assessment dollars would be needed to offset these prior year deficits. Alternatives exist, such as eliminating deficits at the Yacht and Beach clubs and producing a substantial surplus by not staying open during months when the Yacht Club historically has lost money.

If business goes south come January, the Matt Ortt Companies no doubt will do what’s necessary to protect this summer’s surpluses.

The best way to offset previous year operasting deficits is to operate more efficiently and to produce an operating surplus this year and in future years without resorting to earmarking assessments funds for losses that occurred in the past.

OPA organizational documents authorize the collection of assessments for current and future purposes, not offsetting prior year deficits. What the committee suggests, if it involves collecting assessment dollars, runs counter to this.

The committee, on the positive side of the ledger, has done well in recommending the elimination of an unauthorized (by board resolution) OPVFD custodial reserve. Streamlining the Memo of Understanding between the OPA and OPVFD is a worthy goal, including such burdensome and complicated provisions as true-ups and the ten percent hold referenced by the committee in its recommendation.

Simplifying and treating the OPVFD with the respect it deserves -- the custodial reserve in place since 2011 or so is paternalistic and condescending -- should be in the board’s budget guidance, just as a precaution. According to OPA Director of Finance Steve Phillips, the custodial reserve currently has a minimal amount in it and will be closed by the end of the month.

As the saying goes, trust but verify.

The board should also consider adding to the guidance advice to the GM that his draft budget should continue or even expedite implementation of the two-year benefits reform begun this year. This is crucial. There should be no backsliding on this in next year’s budget.

In another area, though, the board should make it easier to fund certain desirable new capital projects next year, including a new party/ training room at the Sports Core indoor pool and some modest equipment additions recommended by the Parks and Recreation Department with the backing of the Recreation Advisory Committee.

Funding new capital projects out of current year assessment is an outmoded way of improving the quality of life in Ocean Pines. Its application is onerous and draconian, as the relatively modest list of unfunded projects in this year’s budget book reveals.

The board should direct the GM to create a new capital reserve by using an existing, authorized-by-board-resolution but dormant req

T

he Board of Directors and the Budget and Finance Advisory Committee earlier this month met to hash over the committee’s recommended budget guidance for 2019-20.

What normally occurs this time of year, some years sooner than later, the board tweaks or rubber stamps the guidance and sends it on the general manager, who’s supposed to incorporate its pearls of budgetary wisdom as he drafts the budget for the following year.

While there is much in the committee’s recommended guidance that is non-controversial, common-sensical and constructive, the document is best construed as a starting point. The board itself needs to tweak the guidance and let the GM know where it stands on certain hot button issues before he and his staff get too buried in numbers.

Here are a few suggestions.

Three candidates in varying degrees of intensity this summer expressed the view that this year’s assessment increase should be scaled back in next year’s budget. Budget guidance to the GM should reflect this position as a goal. The committee’s recommendations are silent on assessments, although Viola did state, in an offhand comment that was easy to miss, that he thought there should be no increase in the assessment next year.

That’s a positive step, but the board should go further.

The committee recommended funding roads depreciation again next year, as it does almost routinely every year. This isn’t a trivial matter, as it would have cost $26.50 per property owner if road depreciation had been funded in the current year, more than $200,000 in new revenue to the OPA. Contrary to the committee’s claim, the casino funding source is not all that uncertain or unreliable. It’s been a steady source of roads funding for the past ten years or so. Casino impact funds are at least as reliable a revenue source as are key OPA amenities, perhaps more so. Until such time as casino impact funding is reduced, let’s not fret so much about worst case scenarios or base policy on them.

There is no spending plan/needs justification in place to justify additional roads funding over and above what the OPA has been spending historically. Until there is a roads plan in place that demonstrates a need for increased spending, the OPA should not be extracting additional dollars from members. This is no different for roads than it is for bulkheads. Because of excessive collections for bulkheading without corresponding spending in recent years, the bulkhead reserve is bloated, prompting even Bailey to suggest recently that a waterfront differential holiday could be considered. Let’s avoid the same mistake with roads.

In the joint meeting with the board, Viola

46

I

OPINION

Ocean Pines PROGRESS September 2018

Rebuilding the crabbing pier in place the better choice

t’s certainly understandable why the Board of Directors has been reluctant to make a decision on rebuilding the Whitetail Sanctuary crabbing pier or opting for a wildlife observation platform advocated by an apparent plurality of owners polled on the matter. Whatever the decision is -- rebuild or relocate -there will be those who react negatively. No board or individual directors likes to make decisions that offend some segments of the Ocean Pines community.

In this case, however, it’s unavoidable.

The board earlier this month authorized the sending out of several competing requests for proposals that preserve options on this issue.

Buying a little more time is not a crime. But sooner or later, a decision will have to be made on the merits.

Cost will be an important factor but, in the end, probably not dispositive.

Rebuilding the crabbing pier, as other far South Side (and some Sanctuary residents) prefer, won’t break the bank. The OPA’s replacement reserve can handle it, whatever it turns out to cost.

So far, at least as is evident by public statements, in response to a recent email request, only Director Slobodan Trendic has expressed any real opinion on the best option to pursue. He’s not one to dodge a politically charged issue.

He is clear-sighted and candid and well aware that his job is to represent the entire Ocean Pines community.

He believes the board should authorize the rebuilding at its current location an asset owned not by a

Budget guidance From Page 45 serve called Future Projects for that purpose. Advise him to consider as funding sources for this resurrected reserve Seacrets parking revenue (bayside and overflow Beach Club parking lease money), Mediacom franchise fees, and, perhaps, the sale of OPA-owned building lots. For budgeting purposes, Seacrets lease revenue and Mediacom parking fees seem like the better bets.

Yes, using these funding sources for a resurrected Future Projects reserve puts a dent in operating fund revenues. Ted Moroney is right about that. But so be it. As noted

by Director Slobodan Trendic, this is

signs along the street close to the crabbing pier, and vehicular traffic can be diverted to nearby Robin An excursion through the curious cul-de-sacs An excursion through theby-ways curious and by-ways and cul-de-sacs Hood Park. Walking or riding a bike of Worcester County’s County’s most densely community. of Worcester mostpopulated densely populated community. will take care of the rest.

By TOM STAUSS/

By TOM Publisher STAUSS/Publisher As for unpleasant nocturnal acneighborhood sub-association but articulate advocates who aren’t shy tivities, neighbors might considby the OPA. in making their case at board meet- er banding together for a robust He’s not one who supports the ings. They even have legitimate con- Neighborhood Watch or calls to the subtraction of amenities, expecially cerns, such as the lack of parking Ocean Pines Police Department if in an area of Ocean Pines (south of and some sketchy after-hour activ- and when these nocturnal activities Manklin Creek Road) that have ex- ities that reportedly occurred at the cross over the line into actionable actly two -- Robin Hood Park and pier when it was operational. law-breaking. the crabbing pier, closed down earBut as the pier is not a neighborBottom line, though, the neighlier this year because of unsafe con- hood asset but one owned by the en- borhood erred in not keeping control ditions. tire Ocean Pines community, it’s the over its destiny all those years ago.

Trendic’s clarity on this issue is interests of the entire Ocean Pines There’s a price to be paid for that. both refreshingly candid and based community that should weigh more That price is that the entire on an unassailable premise. in the resolution of this issue than Ocean Pines community’s interests The crabbing pier is an OPA as- the views of some affected neigh- take precedence over the relative set, not a Whitetail Sanctuary asset bors. few. per se. The section’s developer back The community interest is the Directors are elected to represent in the late 1990s or early 2000s of- preservation of community assets, those interests. fered the crabbing pier to the neigh- not their dimunition through aging It’s really boils down to that. borhood, and the neighborhood said and neglect.

The decision to rebuild the crabno, suggesting as an alternative that If there was no support for the bing pier at its current location ownership should be transferred to crabbing pier either in the Sanctu- shouldn’t really be all that difficult. the OPA. ary or elsewhere in Ocean Pines, the Which isn’t to say that a new That’s exactly what happened. proponents of the alternative obser- crabbing pier at Swim and Racquet That the OPA hasn’t been the most vation platform might have a more is a bad idea. It isn’t. But protectpro-active protector and maintainer persuasive case to make. ing and replacing an existing asset of this asset is hardly a revelation.

But there is a support for it. Re- should take precedence over buildBut it doesn’t logically follow from locating it to the Swim and Rac- ing new. this that this asset shouldn’t be re- quet Club campus on the Northside If neighborhood residents oppose placed in situ. isn’t going to be much help for the a decision to rebuild the pier, they The Whitetail Sanctuary commu- nearby residents of Section 10 or are free to gather signatures in a nity forfeited ownership rights to along Ocean Parkway who can walk petition to force a referendum vote. the crabbing pier and thereby for- or ride bikes to the crabbing pier.

Those signatures might not be feited its right to dictate what hap- They would be losing a favorite and that easy to collect. And that should pens to the pier almost 20 years lat- scarce amenity close to home. They, tell the directors something if they er. In fairness to the neighborhood too, have been articulate advocates have ears to listen. advocates of an wildlife observation of their point of view at board meetplatform, they’re not trying to dic- ings. tate, but they certainly are trying Parking issues can be resolved to influence. They have some very by posting and enforcing no parking

LIFE IN THE LIFE INPINES THE PINES

where the OPA needs to figure out ways to squeeze out unnecessary expenses by outsourcing important maintenance functions to private contractors.

Viola and the board are on the right track by moving in the direction of outsourcing back office financial functions.

The devil is in the details, to be sure, but Viola seems confident that savings are possible.

He and Bailey have been tasked with drafting a request for proposals to that end. Having Viola as the leading agent in drafting the RFP seems like a good idea. Having key directors with backgrounds in business vetting the RFP seems like a good idea, too.

Care needs to be taken to ensure that a resurrected Future Projects reserve doesn’t become a slush fund for unneeded new capital expenditures.

To that end, the board eventually should adopt Moroney’s super majority rule for approval of expenditures from the Future Projects reserve. This rule could be augmented by a unanimous rule for new capital projects recommended for funding for the first time in any given fiscal year. These rules should prevent spending abuse.

In addition, the board should be able to create robust vetting mechanisms, involving the advisory committees and the Budget and Finance committee in particular. - Tom Stauss

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. 127 Nottingham Lane Ocean Pines, MD 21811

PUBLISHER/EDITOR Tom Stauss tstauss1@mchsi.com 443-359-7527

Advertising Sales Frank Bottone 410-430-3660

CONTRIBUTING WRITER Rota Knott InkwellMedia@comcast.net 443-880-1348

September 2018 Ocean Pines PROGRESS

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