September 2022 Ocean Pines Progress

September 2023

www.issuu.com/oceanpinesprogress

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THE OCEAN PINES JOURNAL OF NEWS & COMMENTARY

COVER STORY

Brady, Latham, Heavner win OPA Board seats

Elaine Brady

Farr, Lakernick likely to be elected president and vice president at Sept. 9 organizational meeting

John Latham

Jeff Heavner

By TOM STAUSS Publisher lection results for the 2023 Board of Directors were certified at the Aug. 16 annual meeting of the Ocean Pines Association when they were presented by Elections Chairman Tom Piatti, in accordance with section 11a of Addendum 1 of Board Resolution M-06.

The top two finishers in the election, Elaine Brady with 2,293 votes and John Latham with 2,237 votes, earned three-year terms.

Third place finisher Jeff Heavner, with 1,849 votes, will serve out the remaining year of the term of former director Frank Daly, who re-

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signed earlier this year. The Board elected not to fill the vacancy but instead opted to have it filled by OPA voters in this summer’s election.

Finishing fourth in the contest was Jerry Murphy with 1,460 votes.

Piatti said that there were 2,993 votes cast in the election, 89 more ballots than last year and representing 38.4 percent of potential votes.

The newly reconstituted Board will elect officers for the coming year at an organizational meeting Sept. 9.

Informed sources have said that current To Page 3

Canal water quality motion triggers positive reaction

Environment and Natural Assets Advisory Committee member Karen Baldwin offered a motion at the Aug. 26 annual meeting of Ocean Pines property owners to begin a discussion about the condition of Ocean Pines canals and how to improve their water quality.

While it ultimately was not voted on because it didn’t call for specific action by the Board of Directors or OPA management, it was generally well received by those in the audience.

~ Page 7

Election Trust contract renewal odds improve

Prior to the Board of Directors vote count, Elections Committee chair Tom Piatti said the committee was leaning towards a recommendation that the OPA not renew the Election Trust contract next year.

But after the vote count took place, live streamed from the Washington state offices of Election Trust, committee members were leaning in favor of renewing the contract, Piatti said.

~ Page 11

INSIDE THIS EDITION

Ocean Pines ............... Pages 1-35 OPA Finances .......... Pages 36-40 Opinion .................... Pages 42-43 Lifestyles ................... Pages 44-47 Captain’s Cove ......... Pages 48-63

State files appeal of Mailloux case dismissal ~ Page 36

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COVER STORY

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OPA election

Stuart Lakernick

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From Page 1 vice-president Rick Farr is likely to be elected president, and current secretary Stuart Lakernick will likely be elected vice president.

Monica Rakowski is likely to be reelected treasurer, with the position of secretary still to be decided among those newly elected.

The emergence of Farr and Lakernick as two of the preeminent corporate officers of the OPA represents a vindication, as both were politically targeted by former Board members before becoming directors.

Farr had to go to court to get his election effectively ratified over the opposition of a previous Board, and Lakernick was twice blackballed by a Board majority for appointment to two advisory committees, Strategic Planning and Elections. He is now the Board liaison to Strategic Planning and says he would like to replace Farr as Board liaison to the Elections Committee when the new Board organizes.

The Aug. 26 annual meeting began with the annual SamWilkinson Volunteer of the Year award bestowed on the local Kiwanis Club by Parks and Recreation Director Debbie Donahue.

Then it was announced that there were 135 OPA members attending the meeting in person, enough to establish a quorum.

That made it possible for election results to be certified upon presention by Piatti, without any formal acceptance required by the Board of Directors according to M-06.

Reports were then presented by OPA general counsel Bruce Bright, of Ayres, Jenkins, Gordy and Almand (legal); Chris Hall of the UHY accounting firm, Salisbury branch (audit report); Doug

Parks, retiring OPA president; and General manager John Viola and Senior Executive Office Manager Linda Martin (team report); and Controller/Director of Finance Steve Phillips (reserves summary).

Bright, appointed general counsel in May, said his law firm was well represented handling legal affairs for various boards and councils - Ocean City, Snow Hill, the Worcester County Board of Education - and homeowner associations from Ocean City to Salisbury to Easton.

There are 11 attorneys in his firm, with three associates. Bright said his firm takes a team approach to providing services to HOAs like Ocean Pines.

These services include litigation, which he said “hopefully there won’t be a lot of that”; support to the general manager, advice to the Board of Directors and advisory committees, contracts, and delinquent account collections. “We have a department dedicated to that,” he said.

Bright himself would handle any trial work should the OPA find itself embroiled in litigation requiring a courtroom presence.

Bright also mentioned that his firm’s hourly rate for services is “two thirds of the rate of our predecessor.”

Hall, who supervised UHY’s audit of OPA’s finances for 202223, said his firm was giving the OPA its best, cleanest rating possible.

Parks summarized the Board’s accomplishments this past year.

He cited preliminary work recreating Jenkins Point, near the Ocean Pines Yacht Club marina; the hiring of a new law firm, and extending the contract of the Matt Ortt Companies to manage OPA food and beverage amenities.

To Page 5

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COVER STORY Annual meeting From Page 3 The Board authorized an incentivized compensation package to attract and retain police officers, approved body cameras for police officers, funded three new police cars and endorsed the hiring of a new chief of police, Parks said.

He thanked former directors Daly and Colette Horn for their service as well as members of advisory committees, who he said volunteer many hours of work on behalf of the OPA. He also congratulated the three winners for their election to the Board.

Viola, armed with colorful photographs of various projects accomplished by the OPA this past year, recapped the initiatives completed or under way.

He also was forward-looking, telling the assembled OPA members of his top priorities for the coming year. Plans and funding options for a new or mostly new Southside firehouse will be presented in October, he said.

Also likely to be proposed in next year’s budget will be a replacement irrigation system for the Ocean Pines golf course, even as Viola pointed out the excellent condition of the course through the windows of the clubhouse.

Another priority will be the continuation of the OPA’s drainage program, including the innova-

September 2023 Ocean Pines PROGRESS 5 tive pipe lining program that has saved the OPA hundreds of thousands of dollars in replacement expense. Ditch cleaning also continues to be a priority, he said.

Funding for drainage is budgeted at $425,00 this year, compared to $767,565 spent in 202223 and $437,602 in 2021-22, $393,896 in 2020-21, and $611,983 in 2019-20.

The last year that drainage was not a priority was 2018-19, when spending was only $33,985.

Viola said that the OPA is facing headwinds in the form of statutory requirements to raise the minimum wage at intervals established in law.

He also said that the OPA’s commitment in support of public safety (fire, emergency medical services, police) has grown as a percentage of the budget. It was 22-23 percent a few years ago, but “today it’s 35 percent.”

He said it could go even higher as the OPA decides how to finance a new or mostly new Southside firehouse, and the day nears when the OPA will be responsible for paying professional firefighters.

Viola also offered a summary of where the OPA was operationally five years ago, where the OPA is today, what the trends are, and what issues will be addressed in the coming year. [See article on Page 26 for details.]

Martin then took over the presentation, summarizing various graphics based on the 2022-23

audit report. Among the salient results: • The OPA recorded a $1.113 million operating fund surplus for the year.

• Amenities netted $1.596 million in revenue, including $441,000 in food and beverage earnings and $1.115 million combined in golf, aquatics, Beach Club parking, marinas and racquet sports.

All of these amenities were in the black for the year, and only one, the Clubhouse Grille, missed its budget (and not by much, $16,000).

• The excess of operating fund revenues over expenses in 2021-22 was $1.913 million, $800,000 more than the result for 2022-23.

• Amenity performance year-over-year improved from $1.461 million in 2021-22 to $1.596 million last year, a positive variance of $135,000.

• The operating fund balance was $6,000 on May 1 of 2016 and had grown to $2.586 million as of April 30 of this year. The Board last year approved a surplus transfer of $985,000 to reserves and $650,000 in assessment reduction.

• The operating fund deficit recorded in 201718 was $1.248 million, following the $370,000 loss the year prior.

• Surpluses in the years that followed were $26,000, $571,000, $1.446 million, $1.913 million and ending at $1.113 last year.

• Base assessments were $921 in 2017-18, topped out at $996 in 2021-22, fell to $896 in To Page 7

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COVER STORY

September 2023 Ocean Pines PROGRESS 7

Annual meeting

From Page 5 2022-23, and dropped to $883 in the current fiscal year.

Phillips then summarized past and estimated future activity of OPA reserves. He noted that the April 30, 2023, balance was $6.691 million, comprised of $5.154 million in the replacement reserve, $185,000 in drainage, $114,000 in new capital, and $715,000 in roads.

Budgeted revenue infusions include $2.025 million for the replacement reserve, $1.095 million for bulkheads and waterways, $105,000 for drainage, $35,000 for new capital, and $490,000 for roads.

Revenue sources include funded depreciation, the waterfront assessment differential, this year’s assessment (new capital), and casino revenues (roads) Planned expenditures total $2.746 million, including $970,000 from the replacement reserve, $1.151 million from the bulkheads and waterways reserve, $250,000 from the drainage reserve, $25,000 from the new capital reserve, and $350,000 from the roads reserve.

Motions offered by OPA members at annual meeting hit resistance

Janasek encourages OPA to jumpstart discussions to improve canal water quality

By TOM STAUSS Publisher nvironment and Natural Assets Advisory Committee member Karen Baldwin offered a motion at the Aug. 26 annual meeting of Ocean Pines property owners to begin a discussion about the condition of Ocean Pines canals and how to improve their water quality.

While it ultimately was not voted on because it didn’t call for specific action by the Board of Directors or OPA management, it was generally well received by those in the audience.

Other motions offered during the meeting, including one to require the OPA to install an electronic sign at the North Gate, failed to gain much traction.

Former OPA Director Tom Janasek, who also served as member, chair and Board liaison to the committee, offered his assistance to jumpstart discussion on ways to improve canal water quality.

He said the committee, duringhis tenture on it, had extensively researched the issue.

He said that at one time the OPA was conducting annual testing in the canals; he didn’t say whether

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these tests are continuing, but if they are they’ve gotten no publicity.

Janasek said there are “a lot of things we can do to improve” canal water quality, including the installation of grass nets.

Eight years ago the committee was heavily into coming up with ways to improve the canals, he said, and he said that effort could be revived.

In her motion to begin a discussion about canal water quality, Baldwin said “our canals aren’t healthy,” citing grass cuttings to cigarette butts to fertilizer run-off as pollutants that enter the canals, degrading water quality.

She said that grass cuttings in particular contribute to a very soft, mushy canal bottom, along with algae blooms that die off and sink to the bottom.

“We need to do something about that,” she said.

Retiring OPA President Doug Parks, presiding over the meeting, said that motions calling for discussion aren’t really necessary.

Motions that can be offered at the annual meeting call for specific action, he said. Such motions accordTo Page 9

8 Ocean Pines PROGRESS September 2023

OCEAN PINES OPA member motions From Page 7 ing to OPA by-laws are not binding on the Board, however.

Other motions were offered at the meeting to direct the OPA to convert the low-tech sign at the Ocean Pines North Gate to electronic, to create a new exit lane at the North Gate, and to conduct a referendum giving the OPA the authority to levy fines on violators of community rules and guidelines.

None of these motions passed.

Communications Advisory Committee chair Cheryl Jacobs offered the motion to install a North Gate digital sign, a proposal that has the support of her committee but which has met resistance at the Board level.

She called the proposed digital sign as “a step in the direction of the 21st century,” adding that the committee has a plan to add more electronic signs after the first one is installed.

She noted that the committee has learned that the installation of electronic signs do not require the elimination of the traditional marquee signs that are serviced manually.

The motion to install the digital sign only had 23 votes in favor of it among the 130-plus property owners attending the meeting.

That doesn’t improve the proposal’s chances should the committee bring it to the Board again through its liaison, Director Steve Jacobs.

One property owner advised that an electronic sign at Ocean Downs recently was removed, presumably because of the expense of operating and maintaining it.

A motion to add another exit lane at the North Gate also met resistance among those in attendance.

It was withdrawn before it could be voted on, with one property owner suggesting that such a proposal needed to be addressed by the OPA together with state highway officials.

Another resident suggested that adding another lane would compound the problem of inattentive drivers working their cell phones.

A motion calling for a referendum on changing by-laws to allow for fines to be levied on property owners who violate Architectural Review Committee guidelines and OPA restrictive covenants was ruled out of order by the parliamentarian, Bruce Bright, the OPA’s new legal counsel.

Parks said that amending the bylaws are “a different environment”

September 2023 Ocean Pines PROGRESS 9 than action by the Board.

By that he meant that by-laws changes can’t be approved by Board action alone. They must be drafted by the Board and approved for a referendum of OPA members.

A majority of those voting must vote affirmatively for the proposed changes in order for them be included in the approved by-laws.

The property owner who offered the motion said that her property values have been eroded by junk vehicles in her neighborhood.

She referred to a pending matter before the Board to conduct a referendum to include a provision levying fines.

She said the Board should proceed with the referendum.

In fact, the referendum proposal at issue is not to amend the by-laws, but rather to amend the declaration of restrictions in older sections of Ocean Pines that do not allow fines.

The property owner also seemed to be unaware that the “referendum” she referred would be targeted at those who run afoul of county and OPA rules on short-term rentals only, not other compliance matters regulated by the ARC and OPA’s Department of Compliance, Permits and Inspections.

The pending matter before the Board also technically isn’t a referendum as that term is commonly understood in Ocean Pines.

It’s a section-by-section plebiscite, in which a majority of property owners in a section must approve a

change in their sectional DRs. A typical referendum, for example, to amend the by-laws, requires only a majority of those voting to approve a change, a lower bar than a majority of property owners voting to change DRs. In the Public Comments segment of the annual meeting, comments included: • a request for a return of guest passes for use at Ocean Pines pools.

Guests of OPA or Aquatics members are required to pay what some regard as pricey daily fees at the pools, which are $15 for adults aged 18 and up and $13 for youth aged 5-17.

• a request that the Yacht Club pool, for decades an adults-only pool before it became a so-called “quiet” pool open to all ages, return to its status as adults-only. A property owner complained of kids slapping her and making noise and causing stress as the guards enforce the rules. The adults-only status was eliminated years ago because of complaints of families with kids that it amounted to age discrimination, contrary to federal rules.

• a suggestion that the OPA use Quickbooks accounting software instead of NorthStar. Parks told the property owner who questioned the use of NorthStar is that it’s much more than accounting software -it’s the software that allows departments to communicate and coordinate with one another and performs other tasks in addition to keeping

track of finances.

General Manager John Viola recently announced that the OPA is close to integrating NorthStar with software used by the golf pro shop.

The OPA’s investment in NorthStar is considerable, and complaints about outages and other performance issues are rare.

• praise of the Board and Viola

by Roelof “Dutch” Oosteveen, a onetime critic of OPA management who has become a supporter.

• a suggestion by Pines resident and local reporter Cindy Hoffman for speed limit signage.

• a call by By-laws and Resolutions Advisory Committee chair Lora Pamgratz for the Board to avoid factional infighting and for directors to treat one another with respect and courtesy. She said there has been less drama on the Board this past year and she encouraged more of that.

• a reminder by OPA Member Don Boger to members of advisory committees that their job is to offer advice to the Board and not direct employees how to do their jobs. He said that the OPA could soon lose a valued department head because of perceived intrusion in operations by advisory committee members.

After the meeting, Viola disclosed that the departing department head is definite. It’s Kathleen Cook, the aquatics director.

“I saw it coming,” Viola said. He advised contacting Cook for details about her reasons for leaving.

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Election Trust contract renewal odds improve Flawless execution of vote count and ballot adjudication impresses Elections Committee, but proposals for vendors closer to home are still in the running arrivals.

But in a follow-up interview after the Aug. 26 annual meeting, Piatti said that was a matter for the Board of Directors and legal counsel to resolve.

He seemed much less irritated with Election Trust than he had been before the vote count.

Prior to the count, Piatti said the committee was leaning towards a recommendation that the OPA not renew the Election Trust contract next year.

But after the vote count took place, live streamed from the Washington state offices of Election Trust, committee members were leaning in favor of renewing the contract, Piatti said.

The committee was very impressed with the way the vote count transpired, with Election Trust CEO Tom Thomas carefully displaying ballots to be adjudicated on the big screen in the meeting room of the Golf Clubhouse, visible not only to committee members but any OPA member who cared to watch.

Earlier the committee had kicked around the idea of two live streams, one without audio for

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OPA members and another with audio for the Election Committee to communicate with the vendor during the count.

Piatti and the committee scrapped that idea and instead decided to make the video feed with audio accessible to all.

Adjudication of ballots was necessary because 50 or so of them could not be read by Election Master’s scanning equipment. So Thomas displayed each ballot that needed human intervention to determine voter intent.

Despite clear instructions on the ballot that voters should fill in the bubble next to their preferred candidates, some voters used Xs and some voters filled in the bubbles and reinforced that apparent intent with an X. Thomas interpreted such markings as voters intending to vote for that candidate, and the committee in every instance agreed.

Once the adjudication process concluded, Thomas quickly produced the election results, suggesting that it was possible the ballots had been sent through the scanner before the adjuTo Page 13

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By TOM STAUSS Publisher rior to the completion of the 2023 Board of Directors election, the Ocean Pines Association’s Elections Committee decided it didn’t want to press the Washington state vendor handling the mailing and counting of ballots for why ballots were sent out by a sub-contractor a week late, actually eight days behind schedule.

Committee chair Tom Piatti in an interview several days before the Aug. 24 vote count said the committee was unhappy that the vendor, Election Trust of Bainbridge Island, Washington state, did not respond to an initial inquiry about why the ballots were mailed late.

The late arrival led to a Board decision to delay the ballot return deadline and the annual meeting by two weeks.

There was a lot of venom directed at the committee on social media, with claims that the OPA was conducting yet another failed election.

Now that the ballots have been counted, Piatti said the committee would not be pleased by a continued lack of explanation for the tardy ballot

Expi

12 Ocean Pines PROGRESS September 2023

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From Page 12 dication of the questionable ballots occurred.

Piatti estimated that the ballot counting probably didn’t last much longer than 15 minutes once the ballots were separated from the bar coded outer envelopes.

In the interview days before the vote count, Piatti said that the committee would be recommending that the OPA pursue a reduction in the $15,000 contract fee for election services.

Now it’s less clear whether the committee will press for that, instead leaving that to the Board’s discretion.

One quantifiable result of the delay in sending out the ballots was a $5,000 unbudgeted expenditure to mail out postcard notice to OPA members informing them of a new date for the annual meeting, held Aug. 26 in the Golf Clubhouse.

The initial date for the meeting was two weeks earlier, Aug 12.

Somewhat ironically, the OPA hired its former, long-time elections vendor, Ace Printing and Mailing of Berlin, to handle the postcard printing and mailing, which the company’s owner, Thom Gulyas, did by burning the midnight oil the same day he was given the contract.

That decision triggered a decision by committee George Altston to resign from the committee, on the grounds it was rewarding Gulyas for statements that could be construed as critical of the committee.

“I understand why they did it,” he said, later rescinding his resignation.

Piatti seemed less enthused about a contract price reduction in the second interview after the vote count.

He suggested that if the OPA pursues a reduction or rebate in the $15,000 cost of the contract, Election

Trust might decide it was no longer interested in a relationship with the OPA. Piatti said the OPA might come to regret that, because Election Trust, even with the tardy mailing of ballots, checked off all of the objectives the committee had with respect to this year’s ballot.

He said the company could provide live streaming of the ballot count and ballot adjudication, could send out confirmation emails when ballots were received, and next year will be able to provide on-line voting.

He acknowledged that the four or five days needed for ballots to transit from the West Coast to the East Coast and then back again is a disadvantage.

It was that transit time that had the committee prior to the vote count thinking a vendor close to home would be the better option next year.

“But we’re not sure there’s an East Coast vendor able to do everything that Election Trust can do,” he said. “We’ll certainly make the effort to find one.”

He also said that Ace Printing and Mailing could be in the running if Gulyas is able by the bid submission deadline next year to come up with ways to provide all the services that Election Trust provided this year.

He noted that Ace would have one clear advantage over Election Trust in that ballots would not need to travel cross country and would arrive in mailboxes much sooner than happened this year.

Piatti said that the four or five days needed for first class mail to transit cross country leaves a very compressed timetable for a company on the West Coast, roughly a month for voter information to be transmitted to the vendor, printing and mailing of ballots, and then having those ballots returned to the West Coast.

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He said that compressed timeline could be expanded somewhat by some modifications of the OPA’s governing documents, acknowledging that by-laws changes that might be needed require a referendum vote, and those are time-consuming to execute.

“That would have to be done by the Board working with the Bylaws and Resolutions committee,” and that might not be doable before next year’s election season. he said.

Election Trust was awarded the contract this year despite the continental separation because the vendor was able to provide live streaming of the ballot count, Piatti

said. The committee wants to be able to witness the vote count live, and other vendors closer to Ocean Pines couldn’t or wouldn’t provide that service, Piatti said.

The committee had decided going in to this summer’s election that it did not want to be directly involved in the handling of ballots, as has been standard procedure in years prior.

It did a nationwide search for a company that could handle printing, mailing and counting of ballots, with the option of accommodating electronically-cast ballots.

That latter was rejected for this summer’s balloting, but the commitTo Page 15

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Piatti confirms he’s leaving Ocean Pines in the spring

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he Ocean Pines Elections Committee will need to find a new chairman and member in the spring of next year if current Chairman Tom Piatti moves to South Carolina to be close to his daughter.

Piatti confirmed his intentions during a recent telephone interview.

Piatti will continue to have an influence over committee affairs until then.

As chairman, he will be writing up an after-action report on the 2023 Board of Directors election, with committee recommendations on how to handle next year’s election.

There is no obvious successor to Piatti among committee members.

Election contract

From Page 13 tee had been looking to return to a hybrid paper and e-voting process with Election Trust next summer, if this summer’s election was glitchfree.

Another contributing factor to the decision to hire Election Trust was that vendor’s ability to email a confirmation that a ballot had been received to those with a working email address on file with the OPA, Piatti said.

That happened in most cases, although some OPA members found their confirmation emails in their spam folders, suggesting that many voters who received such confirmation were probably unaware that it happened.

Piatti said the committee wants a one-shop vendor that is able to handle both paper ballots and voting electronically.

Committee members don’t want to count ballots themselves. This summer they did not.

Last summer, when the OPA experimented with e-voting, the committee had to deal with a cumbersome process of dealing both with Ace Printing and Mailing and an out-of-area remote vendor for e-voting.

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Vote count started outside committee’s view Process nontheless appears to comply with language in Board Resolution M-06

By TOM STAUSS Publisher harp-eyed viewers of the Board of Directors vote counting process at the Golf Clubhouse meeting room Aug. 24 may have noticed something odd as Election Trust CEO Tom Thomas and the Elections Committee together

S

adjudicated ballots that the vendor’s scanning equipment had trouble reading.

The vote count occurred remotely, presumably in the offices of Election Trust in Bainbridge Island, Washington state. The Ocean Pines Association’s Elections Committee decided to make the process visible and audible not only to committee Screenshot of livestream of ballot count showing vote totals as of 2:22 p.m. Pacific Daylight Time, or 5:22 p.m. Eastern Daylight time.

The vendor had clearly started tallying votes before adjudication of ballots that scanning equipment couldn’t read.

members but to any OPA member attending the meeting in person or seeing it on-line.

The process started at the scheduled time, 5 p.m., or 2 p.m. Pacific Daylight Time.

A large screen was set up in the meeting room, with Thomas and vote counting software clearly visible on screen.

Elections committee members were seated at a table positioned under the big screen. Thomas was conversing with committee members during the ballot adjudication.

At at least one point during the ballot adjudication process, a screen briefly appeared that had a running total of vote tallies for each of the four candidates competing for seats on the Board, in the order in which they finished.

The screen shot showed that as of 2:22 Pacific Daylight Time, or 5:22 Eastern Daylight Time, as ballot adjudication was under way, the outcome of the election was already determined and known.

It raises a question about when Election Trust opened the envelopes and separated them from the ballots inside, and when the vote count in Washington state actually began.

The 2:22 PDT timestamp suggests that it is To Page 20

September 2023 Ocean Pines PROGRESS 19

20 Ocean Pines PROGRESS September 2023

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Heavner with 1,842 votes and Jerry Murphy with 1,457 votes.

The actual results announced shortly after adjudication was completed differed very little from the screenshot tallies.

Brady had 2,293 votes, Latham 2,237, Heavner 1,849, and Murphy 1,460. Final totals reflected votes gained by each candidate as a result of adjudication.

Clearly the process in which ballots were scanned by Election Trust occurred unwitnessed by the committee or OPA membership on Aug.

Vote count From Page 18 very possible if not proven that the vote count occurred before 5 p.m.

EDT., with no member of the Elections Committee witnessing it.

Indeed, within minutes of the completion of the adjudication, final results were displayed on screen and announced by Committee Chair Tom Piatti.

The screenshot showed Elaine Brady with 2,287 votes, John Latham with 2,231 votes, Jeff

24 or before. Some critics of the process no doubt will find fault with this, but it’s actually not at odds with language in Addendum A of Board Resolution M-06 that governs Board elections.

Paragraph 9 of the addendum reads as follows: “Counting Ballots. It is the responsibility of the Committee to count the ballots either by the Committee itself or the Committee may delegate this responsibility to an independent contractor hired pursuant to Section 5.A. The ballot

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counting operation may be observed remotely by any association member. Association members may witness the ballot counting process remotely but will not be privy to vote totals during the counting process nor engage in any way with the ballot counting process, Election Committee, consultants, or Association staff.

“The ballot counting will be conducted in a room of sufficient size to accommodate the process and remote viewing of the process for Association Members wishing to observe the count, said room shall be properly equipped to allow clear remote viewing for Association members wishing to observe the count.

The Committee may request the assistance of a computer consultant and designated Association staff.”

This section clearly indicates that the committee may delegate the counting of ballots to an outside contractor.

If such delegation occurs, this provision does not explicitly mandate when the counting occurs or that the committee must witness it.

Perhaps this is implied, because there is language that says that OPA members “may witness” the count. It’s not a requirement, however. “May witness” means it’s an option. “Shall witness” would have required it.

How could a member witness the count if the committee itself was not witnessing the count?

Arguably, section of the Addendum A could use some tweaking.

The process that unfolded Aug. 24 would also appear to be consistent with language in the OPA by-laws pertaining to elections.

Section 5.03 reads as follows: “The Elections Committee shall supervise the printing of ballots, the mailing of election materials to members eligible to vote, and the procedures for safeguarding and tabulating return ballots.” Nowhere does it say that the Elections Committee has to witness the actual count.

The by-laws provide higher level guidance on matters such as elections, while Board resolutions offer more detailed instruction.

They’re not always up-to-date with current practice, however.

Section 4.02 says “there shall be a validation of the election as described in Section 5.03.” But Section 5.03 makes no reference at all to validating ballots. That’s addressed in Board Resolution M-06, Addendum A, paragraph 9.

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Gulyas interested in bidding on next year’s Board election Differences with Elections Committee won’t disqualify local vendor from submitting proposal next year, Piatti says

By TOM STAUSS Publisher ce Printing and Mailing Contractor president and chief executive of Tom Gulyas said recently he’s very interested in reacquiring the contract he lost earlier this year managing the Ocean Pines Association’s Board of Directors election.

But it’s also evident he’s not going to play nice with the Elections Committee just to make that happen.

In a recent post on the Ocean Pines Residents Oversight Community (ROC) Facebook page, Gulyas recapped his version of events that led to his not getting the elections contract this year, after more than 20 years of handling it for the OPA. Gulyas began his ROC post with the gloves off.

“Some of you people conjuring up your own facts are beginning to make my head hurt,” he said.

Then “one more time” he offered his narrative of what occurred.

“There was no way to give the committee a formal bid because the filing date for candidates had not passed. I told them this. I also said to the election committee chair, ‘If things are designed and printed the same way as in the past, there is no reason to believe that there will be a huge price increase. There never has been and I’m sure it will be approximately the same cost unless things change.’”

Gulyas said in his post that “it is impossible to price something, that I have no idea what I’m printing. It would be akin to saying to a builder “build me a house. I have no plans but give me the cost first!” I know that may seem elementary to some, but this is only an example.”

Gulyas rebutted claims by Elections Committee members that prior to the contract award to Election Trust they had made repeated attempts to contact him.

“There were never ‘repeated attempts’ to contact me. That statement is false. How do I know? I’m the easiest person in the world to find. I’m either at home, or at work. My email, website, cell phone… all of it is all over the Internet,” he said. “I met face to face with the elections committee only once. I got the feeling from the beginning that this time, it was going to be very different, and my intuition served me well again.”

To support his contention that he had not exhibited a lack of interest in renewing the contract, Gulyas posed this question: “Why would a contractor like me, who has been working very closely with OPA for over 20 years, suddenly decide not to work with them without notice? I don’t run my business that way. I never have, and this type of comment is nonsense.”

Gulyas called the committee “incorrect in what they believe are facts.

They are not. The election committee is incorrect in what they believe are facts.”

He then offered a critique of the committee’s decision to hire Election Trust.

“Ask yourselves these questions: “Why would the committee take this mailing clear across the country to an outfit who reportedly had to find other vendors to help them? I never have.

“Why would the committee select a company who is charging well over twice the price that I’ve ever charged? You mean to tell me that nobody on the elections committee questioned the inflated cost increase?

“Why would a mailing company from across the USA mail some envelopes with preprinted indicias, while some were mailed with stamps?

To Page 24

A

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From Page 22 “Why exactly were the ballots sent out in batches, albeit a week+ late, and not all at once? (This really confuses me, but I do have my thoughts) ... I could go on, but I’m going to stop there.”

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Subject to availability and price change. Minimum purchases may apply. The yield is the lesser In the case of printing and mailof yield to maturity or yield to call. Interest is generally exempt from federal taxation and may also be free of state and local taxes for investors residing in the state and/or locality where ing ballots, Committee chair Tom Pithe bonds were issued. However, bonds may be subject to federal alternative tax (AMT), and profits and losses on tax-exempt bonds may be subject to capital gains tax treatment. Ratatti has acknowledged that Election ings by Moody’s/Standard & Poor’s. A credit rating of a security is not a recommendation to 06/07/2018 buy, sell or hold the security and may be subject to review, revision, suspension, reduction or /00/00.

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Committee member George Alston told the Progress that Gulyas is incorrect when he says that Election Trust is charging the OPA more than twice Ace Printing’s most recent charge.

Alston said that Ace Printing’s billing last year was about $10,000, not including postage.

Election Trust’s bid was for $15,000, including most of the mailing cost, he added.

“When postage cost is factored in, the two bids were comparable,” he said.

As far as the late mailing of ballots, the Elections Committee is not defending Election Trust. It continues to be a source of irritation, particularly because the company had not offered a credible explanation for why ballots were mailed to OPA members well past the deadline.

In his ROC post, Gulyas opined on what might result from this year’s election.

“This year’s fiasco will only serve to drive other potentially good people away from committees…. probably most of them,” he said.

So far, unlike last year, when the former Elections Committee resigned en masse, there is no indication that the current committee intends to resign. Piatti has con-

firmed that he is planning to move out of Ocean Pines in the spring, but he said that is to be close to his daughter in South Carolina, not because of any distress over this year’s election process.

He did concede some sleepless nights during the period when OPA members were waiting for ballots to arrive.

Gulyas summarized his narrative of events by saying he holds no animosity toward the OPA, the Board or the Election Committee or any Ocean Pines residents.

“The decision was what it was and the committee decided to take another course. That’s fine. ... If future election committees wish to work with my company, and I hope they do, I’ll be more than happy to help them and guide them,” he said.

Gulyas claimed that he has “more knowledge about OPA elections than anyone. My job was to keep your costs in line. My job was to make sure elections went off well, but only to the best of my ability and what I was tasked with. I’ve saved OPA residents tens of thousands of dollars over the years.”

He said he had been “made the scapegoat” in this year’s election saga.

To Page 26

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26 Ocean Pines PROGRESS September 2023

OCEAN PINES

Viola sets out priorities for the coming year Golf course irrigation, Southside firehouse at the top of list

By TOM STAUSS Publisher ohn Viola set out of his major priorities for the coming year as part of a detailed general manager’s report he delivered during the Aug. 26 annual meeting of the Ocean Pines Association.

Viola said his priorities are in-

J

stalling a new irrigation system for the Ocean Pines golf course and presenting a plan for a substantially new Southside firehouse. He detailed his major priorities for the coming year in an interview with the Progress the day before the annual meeting.

Most of his report was recapping

various capital projects completed this past year, liberally punctuated with photos of the work in progress or completed.

He’s particularly proud of the drainage improvements that have been accomplished in recent years using an innovative process that has been responsible for substan-

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tial cost savings.

He said the work group that’s been working on the firehouse project would be presenting a plan with funding options to the Board of Directors in October.

Another capital project, that Viola said he didn’t expect to propose in the 2024-25 budget, is for a new racquet sports building.

There still is no consensus in the racquet sports community on whether a new building, one or two stories, or renovating the existing building will suffice.

“At minimum, we’ll be proposing new bathrooms for the building,” he said.

With various improvements to the Administration Building now complete, Viola said another project in the mix is a Board room addition, but he said he wasn’t sure it “would make the cut” in next year’s budget.

“It’s something we should do in the next two or three years, though,” he said.

The North Gate bridge renovation is mostly complete, with some additional trim yet to be installed.

A second fountain for the North Gate pond was delivered but didn’t To Page 28

Thom Gulyas

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From Page 24 “What is not fine is allowing certain individuals to slander my company, my employees or me. You want to come to me, I’m fine with that.

You want to have an adult discussion, I’m good there too… just make sure you bring your “A” game,” he concluded.

While committee members dispute Gulyas’ version of what transpired earlier this year, neither Piatti nor Alston said that Gulyas was disqualified from bidding on next year’s contract.

Piatti said that the printing and mailing of ballots close to home gives Ace Printing and Mailing a clear advantage over the competition.

But he also said the committee is looking for a vendor that can manage all aspects of the process, even if certain functions are sub-contracted out.

“No company does it all in-house,” Piatti said.

The invitation to Gulyas seemed clear enough.

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OCEAN PINES GM report The raised flower box on the North Gate bridge, one of many improvements made to this iconic structure this past year.

From Page 26 function when installed. That meant he couldn’t produce a photograph of the North Gate ponds with two fountains, something he had hoped to do in time for the annual meeting.

There were plenty of other photos on display during his report, however, graphically depicting a robust list of projects he and his team delivered to the OPA membership.

Viola said another fountain from

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“We’ve done a lot to the bridge to make it more attractive, but it still retains its old charm and character,” he said.

He mentioned the Swim and Racquet Club’s new roof costing about $25,000 and maintenance of the Beach Club boardwalk decking and the planting of palm trees at the Beach Club prior to the season.

“We’re probably going to have to replace the deck in the next several years,” he said, while the roof replaced under a previous GM has at least another ten years of useful life.

The golf clubhouse has just undergone an exterior power washing, the carpeting in the lobby has been cleaned, and the meeting room has been needed on occasion to accommodate bar and restaurant business.

Viola said that there has been a lot of good feedback of the new t-docks and gas lines at the Yacht Club marina, and that boaters from the outside are coming to purchase gas and dine and drink at the Yacht Club.

Elsewhere at the Yacht Club, the rusted out ceiling ironworks at the front entrance have been cleaned and the banquet room ceiling painted, with more sprucing up to continue in January when it’s closed for business.

Two outside contractors were used on these projects.

Viola told the Progress that ten years or so spending on police, fire protection and EMS was about 24 percent of the OPA budget; it’s now about 35 percent.

“I anticipate that the percentage will increase once we build a new firehouse and we move toward a paid firefighting staff in three to five years,” he said.

NorthStar software is performing well, and there will be an effort to gain even more efficiency by year’s end.

The intent will be to integrate golf operations, and the E-Z link software, with NorthStar, Viola said.

The general manager said that the OPA is operating on all cylinders, with recent operating surpluses invested in improvements while keeping assessments level.

In addition, he said the OPA has been increasing the level of cash held in reserve fund, raising the percentage of assets covered by cash to 27-28 percent, up from 22-24 percent.

The goal is to raise it to the low 30s, he said.

OCEAN PINES

Aquatics director resigns, cites Board inaction on HR complaint Apologies by Aquatics committee too little, too late

By TOM STAUSS Publisher or Aquatics Director Kathleen Cook, public apologies by the Aquatics Advisory Committee were too little, too late.

She resigned in late August, agreeing to work through Labor Day to complete what she says was an excellent summer for Aquatics, fully staffed with lifeguards, open pools, and a very positive bottom line.

After taking a month off in September, she’ll be working for the state of Maryland as a health officer, inspecting pools. Her coverage area could include inspections of Ocean Pines pools, which would be a somewhat ironic outcome.

“That’s up to my [new] boss,” she said. She will work out of the county-state office building on Isle of Wight. She’ll continue to live in Ocean Pines.

Triggering her resignation after 11 years in the employ of the Ocean Pines Association, the last

F

two-and-a-half years as aquatics director, were criticisms of her demeanor and job performance by members of the Aquatics Advisory Committee at its June meeting, available for viewing as a You-Tube video After that meeting, she lodged a complaint with OPA General Manager John Viola and the OPA’s human resources specialist.

“They were great,” she said, but then in her view the process seemed to bog down, with no formal action taken by the Board of Directors on the HR complaint. There was no public apology or statement of regret by the Board, she said, or any action taken against the offending committee members.

OPA President Doug Parks and Vice President Rick Farr met with the committee to discuss their complaints, the result of which was a public apology by Committee Chair Gary Miller and other committee members at the July meeting. More

September 2023 Ocean Pines PROGRESS 29 apologies came in at the committee’s August meeting, which Cook attended remotely.

“They were antagonistic towards me personally, my knowledge about pools, pool safety, my ability to find and hire staff,” she said of the committee during its June meeting.

She credited Miller with coming up to her later “very sincerely, very professionally” to apologize, which she said she accepted.

But “at the end of the day, I felt they (the Board) didn’t respect me,” she said. “I never have had a formal response by the Board to my complaint.

There’s been no urgency whatever to respond.”

Stuart Lakernick, the committee’s Board liason, said in his view the situation had more to do with operations and personnel in particular and that such matters are best left to the general manager to address.

“The Board is [about] policy,” he said, adding that the offending committee members had apolized numerous times.

He said that he was sorry that Cook had resigned and wished her the best in her new job with the county.

“She did an amazing job with us,” he said, adding that she was leaving on a high note with Aquatics running well.

Cook said there was a disconnect between the way the Board dealt with statements made by an outspoken former member of the Parks and Recu

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OCEAN PINES

Resignation

From Page 29 reation Advisory Committee, Amy Peck, and the complaints against Cook by aquatics committee members.

Both were personal in nature, she said, but in the case of Peck, a former appointed director, she was removed from the committee. Cook said there was an inconsistency in the way the Board handled the two committee personnel issues.

Despite the public apologies by the Aquatics committee members, Cook said she still believes there is hostility directed towards her and an unwillingness by some members to accept her professional opinion on certain issues identified by the committee.

She cited the committee’s continued interest in adding a new set of stairs in the shallow end of the Swim and Racquet Club pool. She told them again during the August meeting that this was not possible, that there simply isn’t enough room in the shallow end even if it was a good idea otherwise.

“Lap lanes are in use at the pool,” she said. “Inconveniencing lap swimmers to address a non-issue with the stairs is not a good idea.” She said there is a pattern of the committee keeping an issue alive after she contends it’s been dealt with.

“They won’t listen to reason and they won’t let up.”

She disputed Miller’s contention that the ex-

isting stairs is a magnet for kids hanging on to it or monopolizing it, denying easy access for adults who want to enter or leave the pool. To the extent there is a problem, she said the guard staff is instructed to ask kids not to hang out on the stairs.

She also mentioned an incident at the same pool in which a pool patron was unable to vacate the pool because the handicap chair was broken.

She said the incident was quickly dealt with by Public Works, and that affected person was willing to wait for the chair to be fixed before exiting the pool.

She said the committee greatly exaggerated the severity of the problem with the handicap chair.

“And it was her choice to stay in the pool for a short time, before help arrived,” she said.

Cook said that she’s not leaving the OPA because of any dissatifaction with Viola or anyone working in OPA management.

“They’ve all been great,” she said. “All the department heads work great together. John (Viola) has been a great boss.”

The resignation occurred despite an obvious effort by the committee at its Aug. 18 meeting for a reset of its testy relations with Cook.

It began with another to apology to Cook for remarks made in the June meeting, and continued with a pledge by Miller that such comments would not happen again.

It then kicked into an even higher gear when Miller and other committee members commend-

ed Cook for exemplary performance at the pools this summer, particularly the full staffing of lifeguards. With the exception of pool closures caused by the weather, Miller noted that pools were fully open this summer.

After Miller concluded his remarks, committee member Steve Ransdell jumped in with his own apology to Cook and his congratulations for “all the hard work” of the Aquatics staff this summer.

Ransdell was attending the meeting remotely.

It was Randell’s comments in the June meeting in particular that triggered the controversy. In the of the meeting quotes him as saying that Cook has “negative personality” and needs “coaching” to be more people friendly.

Committee members also said during the meeting that they had been in contact as individuals with Aquatics staff and didn’t like what they were hearing. It wasn’t clear what they didn’t like in particular.

Cook told the Progress that committee members asking questions of staff is inappropriate, well outside the bounds of how a committee should function.

“And yet there have been no consequences for that,” she said.

Cook attended the August meeting remotely.

Her presence made it possible for some committee questions and misunderstandings later in the meeting to be addressed. Early on, it seemed as if her presence was unknown to those attending the u meeting in person.

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OCEAN PINES Miller apologized to her for not noticing her on-line presence earlier.

Lakernick, also attending remotely, weighed in on a charging document from a previous meeting that had been rejected by the Board and sent back to the committee. It had to do with giving pool members preferential access to the Yacht Club pool whenever a long line forms with some non-members competing for space inside the pool area with members.

Lakernick said the Board determined that no such preferential treatment was possible, that it would be discriminating against renters. Lakernick said that renters or others who don’t purchase annual or seasonal pool memberships are in effect “one-day members” when they use an Ocean Pines pool.

Miller initially disputed that, suggesting that renters are not a “one-day member” until they “get up to the desk and pay.”

Lakernick didn’t address that argument, instead saying that he was unaware of any complaint from pool members that they had been denied access to the Yacht Club pool because renters had been given preferential treatment. He asked Miller if he had any example of that.

Miller replied that there had been one complaint posted on Ocean Pines Forum.

Lakernick said that neither he nor the Board will respond to complaints on social media.

“If not specifically emailed to us, it doesn’t happen,” he said. The way to contact the Board or

September 2023 Ocean Pines PROGRESS 31 OPA manaagement is to send an email to directors@oceanpines.org or to info@oceanpines. org, Lakernick said.

“We don’t have any record” of denial of service complaints and “you can’t go by social media posts,” Lakernick added.

After Miller seemed to acknowledge that the proposed charging document had hit a dead end, he changed the subject to discuss a proposal for a one or two-week membership for guests of OPA or Aquatics members.

Lakernick indicated he was receptive to this idea and that it could be discussed further, suggesting that a cap of four individuals per shortterm membership should be considered.

He also is an advocate of a special membership for grandparents, or perhaps a reduced rate for grandkids of members. The grandparents option was not discussed during the Aug. 18 meeting.

He didn’t definitively answer a question about whether there is a membership option available for renters who want to use the pool for one or two weeks.

“I don’t know that we have a provision for that,” he responded.

There is no weekly membership available in Ocean Pines for renters or anyone else. There was one at one time, but it was eliminated a few years ago. Instead, renters like members of the general public can pay daily fees at the door.

The same is true for OPA members who don’t buy Aquatics memberships.

Lakerneck then disposed of another idea that has been suggested from time to time, that of a access fob that would let a member into a pool when an attendant is not available.

“It’s incredibly cost prohibitive,” he said, and a fob could be easily passed from one user to another, defeating the purpose of a membership.

“The fob idea is a dead idea,” he said.

After a brief discussion of other “perks” that could be devised as a way to promote pool memberships, Miller raised several other issues that Cook subsequently addressed.

Miller mentioned that the spongy surface at the Swim and Racquet Club splash pad was coming loose in places, creating a safety hazard; that the ramp from the Swim and Racquet pool deck to the splash pad was very hot, and that perhaps some sort of new ramp surface could be installed to protect feet; and that kids at the Swim and Racquet Club pool were holding on to and crowding stairs in the pool’s shallow end.

Miller asked Lakernick if he would be willing to ask General Manager John Viola whether a second set of stairs could be added to the shallow end of the pool.

Cook’s on-line presence had not been noted up to that point in the meeting although her name had been visible on screen.

Lakernick invited Cook to respond to the suggestion for a second set of stairs.

The short answer: It wouldn’t be practical. u

thru hru Oct. 27

10-27-23

OCEANPINES

32 Ocean Pines PROGRESS September 2023 Aquatics committee From Page 28 The pool is the practice and meet pool for the Ocean Pines swim team, and the steps have to be manually moved to accommodate those activities.

She said the steps that are there now are ADA-compliant and are an improvement over built-in wall steps that some pool users have trouble navigating.

The steps were added at a cost of $10,000.

Cook said she visits the Swim and Racquet Club pool three or four times a day and rarely have the stairs been occupied by kids. Whenever she sees a problem, she said she advises guards to ask kids to move.

“We have to manage [it],” she said, adding that the guard staff does a good job of doing that.

Lakernick then asked about the hot ramp to the splash pad. Cook said she would check with Clint Parks, the Public Works employee who has handled maintenance at the pools for more than 20 years, to see if there is an alternative.

But she noted that hot decking surfaces are not unusual at Ocean Pines pools, noting the tiles at the Yacht Club pool are very hot.

Pool patrons learn to wear shoes rather than go barefoot, she said.

She rejected a suggestion for some sort of indoor-outdoor carpet on the ramp, because she said it would be a magnet for mold.

As for the condition of the splash

Racquet Center repairs

Ocean Pines Public Works and a team of outside contractors in late July finished repairs to a wind-damaged platform tennis court at the Ocean Pines Racquet Center. The damage occurred in March, when extreme weather whipped through Ocean Pines, and high winds gripped the mesh wind screens and pulled down the fencing. Public Works Director Eddie Wells said staff, along with outside contractor Total Platform Tennis and a local welder, Waggoner Welding, contributed to the repairs. He estimated the total cost to be between $25,000 and $30,000. Public Works also recently completed a new blue shade structure at the racquet center that includes ceiling fans.

pad surface, she said she and Clint Parks would be proposing a new splash pad surface as part of the Aquatics’ capital budget for next year.

With Cook leaving Ocean Pines, it will be up to Parks or whoever replaces Cook to press the issue in time to be included in the proposed budget for 2024-25.

Rubaroc, the surface that’s there now, doesn’t hold up well to expo-

sure to chlorine, she said, and for that reason staff will be proposing a new brand of surface, one that has worked well at Jolly Roger Amusement Park in Ocean City.

“No ifs, ands or buts, we will be proposing” a new splash pad surface with an alternative to Rubaroc, she said.

Finally, Cook fielded a complaint about the two deep end ladders at the Yacht Club pool. Miller said that a pool user had emailed him to com-

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plain that these ladders were not slip proof, and that this user had suffered an injury while climbing up the stairs.

Miller said this user said an email had been sent to Cook about this incident, with no response.

Cook said she had not received the email at issue and was unaware of the complaint.

But she said she always responds to email, and “now that we know there’s an issue with the metal ladders not being slip proof we can do something about them” in time for Memorial Day next year.

An easy solution would be some sort of tread on the existing ladders, but she said it may be necessary to replace them entirely.

There was then some discussion on how best to forward complaints or questions about the pools to Cook.

She responded that the best approach would be to send emails to Viola or to Lakernick, who then could forward them on to Cook.

But it was clear that Cook’s presence at the meeting was appreciated and afforded opportunities for issues to be brought up and addressed immediately by her.

Given her resignation just days after the meeting, however, it was clear that for her, at least, the committee’s overtures were too little, too late, and didn’t address what she regards as the Board’s inaction in formally addressing her HR complaint.

September 2023 Ocean Pines PROGRESS 33 the July edition of the Progress [issuu.com/oceanpinesprogress].

The floor plan showed a one-story building of roughly 14,350 square feet, which Viola said in June was a possibility but not definite. It includes all the meeting, training, administrative and equipment rooms contained in a proposed design of a new building presented by the OPVFD several years ago, at a price Cost estimate remains at $5.5 million, but savings from keeping tag that seemed very high to some observers at the time. existing apparatus bays could reduce that Viola said some of the rooms to cover the cost.

By TOM STAUSS continues to draft a proposal to in- have been made smaller when comViola told the Progress that op- clude details on how much the OPA pared to that earlier design, but Publisher eneral Manager John Vio- tions could also include borrowing might need to assess OPA members that he believes OPVFD officials are la confirmed in an Aug. 18 for some or all of the cost. for a portion of the cost of the proj- pleased with the latest design as it As an example, he said that bor- ect. That number has been elusive is shaping up. telephone interview that a The most recent cost estimate for hoped-for large grant for rebuilding rowing $1 million at 4 percent would to date. Viola said the size and scope the Southside firehouse has failed cost the OPA only $40,000 per year of the building will depend in part the project ranges is about $5.5 milto materialize, which leaves a sub- in interest expense. Including paying on the extent to which the OPA and lion, but that was very preliminary, stantial portion of the eventual cost down principle, Viola said the impact OPVFD will be able to raise grant and did not include keeping the exto be absorbed by the Ocean Pines on the annual assessment would funds and donations to help defray isting equipment bays. only be a few dollars.

Costs will also be estimated for Association. the cost.

The OPVFD already has $1.6 milIn a report to the Board of DirecViola said anyone interested in temporary housing of the OPVFD tors in June, Viola had said that a lion on hand from two previous state the working group’s planning to during construction, and build-out formal proposal for a new or mostly grants and $1 million in designated date could look at rough drawings of items typical for a new firehouse.

The site of the new building Southside firehouse could be pre- savings for a new or substantially of the exterior, front and back, as sented the following month or per- new Southside station. well as the interior floor plan of the seems to have been narrowed down Viola has previously estimated building that he included in the to the current Southside location, on haps the annual meeting in August.

Those possibilities turned out to the cost of a new station at a range meeting slides for his GM report in the footprint of the existing building be overly optimistic, with Viola now of $5.5 million to $5.7 million, but June. Those plans were published in but possibly larger. saying that a formal proposal will he told the Progress that could be be presented to the Board in Octo- reduced if the working group recber, including a number of funding ommends keeping the existing three equipment bays. options.

An engineering firm from SalisThe failure of substantial grant funding to come through means a bury is being brought in to evaluate working group that has been formu- the condition of the bays’ outer walls. lating plans in close consultation If they’re deemed to be in good conwith the Ocean Pines Volunteer dition, they would be retained, Viola Fire Department has had to refocus said, with a savings somewhat less attention on funding, which could than $1 million “but still significant.”

The rest of the existing firehouse include community fund-raising and assessing OPA members for a would be razed, with a new building erected on the existing or somewhat portion of the cost.

Special assessments aren’t on expanded footprint,Viola said.

The working group, chaired by the table, Viola said, but there could be a one-time assessment increase former OPA Director Ted Moroney,

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34 Ocean Pines PROGRESS Sep-

ROC’s Clifford pressing ahead with requests for data from last year’s e-voting

OCEAN PINES

be addressed once she obtains documents related to e-voting. Once that matter is resolved, she said she would then decide whether she still wanted to pursue the emails.

Rick Farr, the OPA vice president and likely president this coming year, told the Progress that it’s unlikely the OPA will be willing to accommodate the request to provide any on-line material from Vote HOA Now. “As far as I’m concerned, that won’t happen,” OPA provides copies of e-mails to Amy Peck related to her dismissal from the Farr said. “This case is closed.”

He said he’s uncertain that the vendor even Parks and Recreation Advisory Committee, but ROC founder hasn’t given up has retained the information from an election on request for more than 20,000 email documents conducted last year, from an association that is no

By TOM STAUSS said. The objective is to verify vote counts from longer a client, or would be willing to provide it Publisher e-voting, without the potential for any tampering even if it is still available.

He suggested that if Clifford wants that data, t’s not over, the month’s long saga of the Res- from the OPA before she is able to examine data she probably will need a court order to make it idents Oversight Committee (ROC) trying logs and related documents. to obtain access to documents related to the She said the recent examination of paper bal- happen.

That’s exactly what the hiring of Bruce Bright 2022 Board of Dirctors election. Back on June 28, lots from last year’s voting produced an additionthe OPA finally accommodated the request of the al seven votes for former director Amy Peck, re- as the new OPA general counsel was supposed to ROC founder Sherrie Clifford for access to the ducing the margin between her and the winning forestall.

He has said part of his job description is to keep paper ballots related to the 2022 Board of Direc- third place candidate, Monica Rakowski, to ten the OPA out of court. tors election. votes.

As for the Board emails related to the 2022 elecBut it hasn’t ended there, despite comments She said it’s possible an examination of the in July to the effect that as far as OPA officials e-votes will produce additional votes for Peck, suf- tion, Farr said he doubted that Clifford in the end would want to pay the cost of producing copies of were concerned, the document request had been ficient to overturn the election. accommodated and the matter closed.

A second set of documents she hasn’t given up 20,000-plus emails.

“I guess we’ll find out soon enough,” he said. “I It turns out that Clifford didn’t get that memo. on are all Board emails related to last summer’s just don’t see the point in revisiting an election She’s not done, and intends to press ahead to ob- election. tain two additional sets of documents related to Clifford said her first priority is the e-voting that’s been over and done with” for more than a last summer’s election. documentation, with the emails to be addressed year.

Meanwhile, Clifford confirmed that her ROC That could set up a clash with the OPA. once the e-voting is addressed.

One set includes all the data related to the She said her attorney has received communi- colleague, Peck, has received copies of Board electronic voting handled last summer for the cation from OPA attorney Bruce Bright indicat- emails related to her recent dismissal as a memOPA by Vote HOA Now, an election services com- ing that emails related to last summer’s election ber of OPA’s Parks and Recreation Advisory Committee. pany based in Tigard, Oregon. number 20,000 or more.

The administrative cost of obtaining those Last summer’s balloting was a hybrid affair, “That must include a lot of duplicates [conincluding both paper ballots and electronic bal- tained in email threads],” she said, acknowledg- emails, which Peck is reviewing, was $240, Cliflots cast on a special Website established for the ing that there would be no easy way to isolate the ford said.

No expenses related to Bright’s time reviewpurpose of collecting and counting ballots from duplicate posts.

OPA members.

She’s been advised through her attorney that ing the documents were included in the invoice to Clifford said she wants the data showing the expense of providing the requested emails Peck.

Clifford has said that she never should have candidate vote counts from Vote HOA Now and could be several thousands of dollars. She’s been would like to work directly with representatives told that Bright’s office would need to review the had to hire an attorney to get a response to her document request. from that firm to obtain what she’s looking for. emails prior to their being turned over to her.

The attorney has been on the job since Febru“I don’t want any material transferred to OPA She said her immediate focus is on the e-votservers but raw data from Vote HOA Now,” she ing, with the emails of secondary importance to ary on Clifford’s behalf.

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OCEAN PINES

Tree compromise may have fallen through Homeowner says she’s going to ask for the $900 back that she paid the OPA

By TOM STAUSS Publisher athleen Conforti has been engaged in a war of words with the Ocean Pines Association over a tree that was removed from her property in March, without her approval. The tree appeared in a photo to have been partially uprooted, possibly putting a nearby home in peril.

Although it seemed the dispute had been resolved in mid-August, when she paid the OPA $900 to reimburse it for the cost of having the tree removed, she has since reconsidered the compromise.

She told the Progress in a voice mail message that she would be demanding her $900 back. She said she planned to make a presentation at the Aug. 26 annual meeting of the association, but that didn’t happen.

She contends that while OPA governing documents allow for OPA crews to enter onto a property to address alleged violations of community rules, there should be a Board determination of a

K

continuing violation.

No such determination occurred in her case, she said.

There is no indication that the OPA is interested in reopening the dispute or returning the $900.

But if the $900 is returned, an informed source told the Progress that a much higher amount could be tacked on to next year’s assessment.

The $900 that she agreed to pay was $2,000 less than an invoice sent to her in May for $2,900, comprised of a $2,800 contractors fee and a $100 OPA administrative fee.

She was advised that the $2,900 would be added to her assessment for this year, and that her right to vote in this year’s Board election and to use OPA amenities would be suspended unless she paid up.

After a report about the matter in a local weekly, oceanpinesforum.com reported that she had agreed to pay the OPA $900 as a way of resolving the matter.

Conforti told the Progress in an Aug. 24 phone message that she had reconsidered the $900 payment she made and would be asking for it back.

According to Conforti, she had never received certified letters from the OPA advising her of the tree and that the OPA Public Works Department, or a contractor, would be entering onto her property to remove the tree, action that is permitted in the Declaration of Restrictions for Section 9.

Her home is located on 22 Tail of the Fox Drive, in Section 9.

OPA officials say that have proof that certified letters were sent to Conforti.

In any event, since the OPA has been paid the $900 and seems unwilling to return it, regarding the issue as closed, it would appear that Conforti would have to sue the OPA to get her money back.

“If she wants to spend thousands of dollars in legal fees to get $900 back, that’s her choice,” Rick Farr, expected incoming president of the OPA, said recently. “I’m not sure any court would agree with her, but she’s welcome to try.”

Ocean Pines Police adopt body camera policy

O

Ocean Pines well ahead of deadlines in state law

cean Pines Police have adopted a policy for body cameras, with the equipment going into use on Aug. 9.

Body cameras were leased by Ocean Pines at an annual cost of $30,000. However, there was a delay in implementation because police first needed to adopt a policy to use the equipment.

Even so, the usage of body cams by the OPPD is well ahead of deadlines for their use mandated in state law, which is July 1, 2005.

Police Chief Tim Robinson said he reviewed and approved a “body worn camera” policy and was able to get the equipment out to the officers of the OPPD as scheduled.

“These body cameras are an incredible tool. First and foremost, they act almost as an independent witness to what happened. In my professional experience, they have been invaluable to ascertaining an accurate accounting of what transpired on any PFc. John scene involving a police officer,” Robinson said.

Pianka General Manager John Viola said the body camwith a eras will benefit both police and the Ocean Pines body cams public. that Ocean “Safety is always a top priority, and we believe Pines the use of these cameras will help foster mutual police offitrust and accountability between our dedicated po- cers began wearing lice force and our valued Ocean Pines homeowners Aug. 9. and residents,” Viola said.

1,445

36 Ocean Pines PROGRESS September 2023

SPECIAL REPORT

State appeals dismissal of Mailloux charges Court clearing motion rejected by judge; document seal motion was not decided

By TOM STAUSS Publisher t’s been widely reported in local media that charges against Tyler Mailloux, the driver of the vehicle alleged to have resulted in the death of Ocean Pines 14-year-old Gavin Knupp last July, have been dismissed. Also widely reported is that Worcester County State’s Attorney Kris Heiser, shortly after the ruling by visiting Circuit Court Judge Brett Wilson on Friday, Aug. 18, announced that her office would appeal the decision to the Appellate Court of Maryland.

While the appeal is pursued, the dismissal of all charges related to the alleged hit and run accident remains in place. Heiser could have announced an immediate refiling of some charges, or an intention to refile, in District Court, but she did not do so.

Motions filed by both sides in the case are moot or remain on hold pending the outcome of the appeal, which the Appellate Court is not obligated to accept or hear.

At the beginning of the day’s proceedings, Defense Attorney George Psoras said he had 12 motions to argue. He only got to argue two of them before Judge Brett Wilson dismissed all the charges against Mailloux.

One of the motions on hold is a motion filed by Psoras for a change in venue, on the grounds that his client can’t receive a fair jury trial in Worcester County because of extensive pretrial publicity about the case on social media since the fatality occurred.

Should the state eventually refile charges in district court, there is an expectation that this venue would be acceptable to the defense, as charges would be heard by a district court judge, not a jury of Worcester County residents.

The dismissal of the charges against Mailloux for technical reasons, what Judge Wilson called a charging error after a half-hour recess in which he reviewed applicable state statutes, was not the only procedural defeat for the state’s attorney related to this case.

Prior to the Aug. 18 motion hearing in Courtroom #1 at the Snow Hill courthouse, the state had filed a motion to conduct the hearing in camera, which Judge Wilson rejected with no explanation in the case record on file in the clerk’s office.

Had that motion been granted, the public would have been banned from the courtroom, with only the defendant, attorneys and other court personnel allowed to witness the proceedings.

On Aug. 14, Assistant State’s Attorney Pamela M. Correa filed a petition to preclude or limit inspection of certain documents related to the case.

Judge Wilson did not rule on this motion, as Psoras had not filed a response to it within the allowed 15 days.

Correa’s petition to seal certain motions said that they contain “information regarding specific facts of the investigation, communications of counsel and private medical information.”

I

She said that if this information were made available to the public, it “would have the potential to substantially influence the potential jury pool and impede the administration of justice” in the case.

She was probably referring to the state police’s report on the accident detailed in the August Progress.

The report indicated that an autopsy showed that the decedent’s blood alcohol level was at .06, less than the .08 needed for a licensed driver to be considered legally impaired.

Gavin Knupp was being driven by his sister, Summer, when he left her vehicle parked partially on the road and partially on the side of the Grays Corner Road in the evening hours of the day the accident occurred.

In an attached affidavit, Correa said that “sensitive information regarding the investigation and prosecution of this case have been disseminated to parties outside the case, resulting in the publication of discovery materials.”

She said that defense counsel or members of the defense team had released this information and that its dissemination was “conveniently timed to support the defendant’s motion to change venue.”

Her affidavit also said that release of “any further information would cause irreparable harm to the reputation of the deceased juvenile victim” and would result in the “immediate, substantial and irreparable harm” to the defendant’s right to due process.

The petition to seal case documents was briefly mentioned during the Aug. 18 hearing by Psoras, who told the judge he wanted his allotted 15 days to respond to it.

He said he had only scanned an article in the August edition of the Progress about the case and had not released any information to the publication about it.

He characterized the state’s concern about Gavin Knupp’s reputation as concern that the decedent would be perceived by the public as “drunk” on the evening of the accident.

The state police report about the decedent’s blood alcohol did not say he was drunk.

With Judge Wilson’s dismissal of the circuit court case against Mailloux, it would appear that the petition to preclude or limit inspection of court documents is moot for the time being at least.

Prior to Judge Wilson calling for a recess, Psoras argued on behalf of two of his motions.

The first was the motion to dismiss the charges on the grounds that they should have been filed in District Court, followed by the motion for a change in venue. Correa offered rebuttals. There were at least another ten motions that could have been argued when the court reconvened following the recess, but Judge Wilson cut off that possibility when he dismissed the charges.

He agreed with Psoras’ argument that the District Court has “exclusive original jurisdiction”

over alleged violations of the transportation article of the Maryland Annotated Code, whether they be felonies or misdemeanors.

Psoras acknowledge that there are exceptions, with “concurrent” proceedings in both district and circuit court possible in some instances so long as the “original” case is filed in district court.

Correa didn’t offer much of an argument against Psoras’s reading of the transportation article, but seemed to suggest that since potential penalties for some of felony charges ranged from five to ten years in jail, Circuit Court was appropriate as the court of originating jurisdiction.

The second motion argued by Psoras concerned a proposed change in venue, with Correa offering a detailed, spirited rationale for keeping the case in Worcester County.

She argued that the social media commentary on the case was not nearly as pervasive as the defense alleged, and that the potential jury pool included both northern and southern Worcester County, which she suggested are almost two different worlds.

She said that the jury pool during voir dire could include an expanded number of potential jurors to ensure that unbiased jurors could be impaneled.

During the debate over the change of venue motion, Correa may have given the defense some ammunition should the case eventually go to trial.

“Media saturation ... has not been pervasive. It has not been prejudicial. It has been supportive for a juvenile who was killed in a tragic accident but killed at a young age,” she said.

The tragic accident narrative is one that the defense is likely to promote should the case go to trial.

Because of the statute of limitations, any misdemeanor charges in the original filing are moot and can’t be refiled. All but four of the original 17 charges were misdemeanors.

Misdeameanor charges have to be filed within a year of an alleged violation, and that one year expired on July 11 of this year, the one-year anniversary of Gavin Knupp’s passing.

Felony charges, on the other hand, can be filed within three years of an alleged violation.

Should Heiser and her associates lose their appeal, they would have the option of refiling the felony traffic charges in District Court.

These counts allege that Mailloux left the scene of an accident that he knew, or should have known, resulted in serious bodily injury or death.

The charges allege that Mailloux left the scene of the accident on Grays Corner Road, a service road that runs parallel to Route 50 about two miles south of Ocean Pines.

According to the state police report completed shortly after the accident, Mailloux contends he was unaware that a vehicle he was driving had hit and killed Gavin Knupp [see July edition of the Progress for details, at issuu.com/oceanpinesprogress].

OPA FINANCES

Viola, Phillips say audited ‘23 operating fund surplus ended up at $1.113 million

By TOM STAUSS Publisher t may seem like the Ocean Pines Association’s audited financial results differ substantially from the unaudited departmental summary issued for April, 2023, the final month of the 2022-23 fiscal year.

But that’s actually more an illusion than reality.

Of the OPA’s 20 identified departments, financial results in 19 of them had only minor adjustments from April to the audit report, posted on the OPA Web site in early August.

The only substantial difference was in General Administration, a catch-all department that includes assessments, delinquent charges, casino funds, franchise fees, and interest income, along with accounting fees, bad debt expenses, contract services, legal expenses, Board expenses, election expenses along with insurance and taxes.

The April unaudited financial report showed general administration with a net surplus of $5,962,172, but the audited results for that department show an adjustment down to $5,729,768.

That in turn affected the $1,150,815 operating fund surplus for the year reported on the April financial report.

Adjusting for General Administration, the new adjusted operating fund surplus, not including depreciation, would appear to be $897,697, a decrease of $253,118. [See graphic at right, bottom of page.]

Viola,however, says that presentation doesn’t accurately reflect actual operating fund performance for the year.

He and Controller/Finance Director Steve Phillips have extracted numbers from the audit report and have arrived at an audited operating fund surplus for the year of $1.113 million, just $38,000 less than what the April summary showed. [See graphic at right, top.]

What might explain the difference between the dueling presentations?

The explanation appears, at

I

SUMMARY OF OPERATING FUND AUDITED FINANCIAL RESULTS FISCALOF YEAR 2023 ACTUAL TO BUDGET SUMMARY OPERATING FUND COMPARED AUDITED FINANCIAL RESULTS

FISCAL YEAR 2023 ACTUAL COMPARED TO BUDGET Budget 8,499 (3,289) 650 5,860

FY2023 Actual 8,531 (544) (2,220) 5,767

Variance 32 (544) 1,069 (650) (93)

(1,453) (1,064)

(1,291) (1,064)

162 -

(2,517)

(2,355)

162

450 75 (2,478) (509) (1,862) (6,841) 981

450 206 7 (2,177) (446) (1,935) (6,250) 1,596

131 7 301 63 (73) 591 615

-

1,113

1,113

(In 000's) Assessment Revenue, Gross Assessment Revenue to Contract Liability Transfer of Assessment Transfer-in of PY Surplus Assessment Revenue, Net After Transfers Operating Dept. & Expenses (Net of Revenues): Police Fire/EMS Total Police + Fire/EMS Casino Revenue Interest Revenue to Reserves Interest Revenue Stays in Operating Public Works/Maintenance/CPI Recreation & Parks Other Admin Total Operating Depts. (Net) Amenities (Net) Excess of Revenues (Expenses)

Source: OPA Finance Director/Controller Steve Phillips, from 2023 Audit Report

NET OPERATING BY DEPARTMENT Net Operating

by Department April 2023 Compared to Audited Results

April 2023 Financial Report Compared to Audited Results Excludes Depreciation Excludes depreciation

April

Audit Report

General Administration Manager's Office Finance Public Relations

5,962,172 -323,085 -844,095 -279,566

Compliance/Permits General Maintenance Public Works

-106,335 -702,136 -1,350,719

-106,389 -702,270 -1,369,373

Fire/EMS Police

-1,064,024 -1,290,390

-1,064,024 -1,292,194

-445,987 -38,173 51,203 -6,672

-446,033 -38,171 51,205 -6,672

Aquatics

70,576

70,571

Golf Ops/Maintenance Clubhouse Grille

319,594 46,751

319,595 46,750

Beach Club Beach parking

205,096 527,770

205,097 527,769

Yacht Club Marinas

188,979 229,856

188,980 229,854

$1,150,815

$897,697

Recreation/Parks Tennis Pickleball Platform Tennis

5,729,768 -323,103 -844,095 -279,568

Source: Ocean Pines Progress, from April 2023 unaudited financials and 2023 Audit Report

Auditor Adjustments

$253,118

September 2023 Ocean Pines PROGRESS 37 least in part, to be an arcane concept known to professional auditors as revenue to contract liability.

According to Viola and Phillips, accounting rules established by the national Accounting Standards Board require revenues from contractual services to be recorded as revenue only when they’re spent.

Revenue numbers during the fiscal year as shown in the monthly financial report make no adjustments for so-called contract liability, leaving it to the auditors, UHY of Salisbury, to make the adjustment in the audit report.

“It’s an issue of timing,” Viola said, and it can be somewhat complicated.

Viola asked Phillips to see if these adjustments could be made during the year and reflected on the monthly financial reports, but Phillips said it’s best left to the auditors during the summer auditing process.

In any event, Viola and Phillips are not wavering from their belief that the operating fund surplus is not much different from that reported in the unaudited April financials.

Treatment of contract liability revenue is not the only difference between the way results are presented in the monthly financial reports and the audit report.

A dive into the audit report, post2 the OPA Website, shows that ed on many of the schedules add depreciation expense to the way results are presented, and that might lead some OPA members to conclude that the OPA lost money in 2022-23.

It didn’t, although when depreciation is included, Exhibit B shows an operating fund loss for the year of $1,144,061, with net revenues of $14.84 million and net expenses including depreciation of $15.98 million. Depreciation expense is $2,042,758.

Exclude it, which is the way OPA financial data is presented monthly throughout the year, and the picture changes considerably.

There are further adjustments reflected in the audit report’s Exhibit B that reduce that excess of expenses over revenue down to $521,991.

The OPA uses fund-based accounting, and there are a number of transfers that occur during the year.

Among the adjustments to the operating fund is the adding back in $2,042,758 in depreciation, in effect balancing out the effect on the operating fund to zero.

Other adjustments included a transfer to the roads reserve of casino funds out of the operating fund u

38 Ocean Pines PROGRESS September 2023 Audit report

From Page 37

in the amount of $450,000, and a transfer of $985,000 of the prior year operating surplus to the replacement reserve.

Exhibit B shows that the operating fund began the year with a surplus of $3,107,703, ending the year with a balance of $2,585,712, an indication of the OPA’s continuing robust financial health.

Among other items of note from the audit report: • Total operating fund revenues in 2022-23 were $14.838 million, down from $15.59 million the year prior (Schedule 2).

• Total expenses including expenses were $15.98 million, up from $15.06 million the year prior, including depreciation expense (Schedule 3).

• Legal fees in the General Administration department for the year totaled $138,597, with another $20,106 in Compliance, Permits and Inspections.

• Perhaps reflecting a downturn in resales in Ocean Pines, year over year, resale certifi-

T

OPA FINANNCES

cate revenue of $144,010 in 2021-22 dropped to $90,880 in 2022-23.

• Payroll in the CPI department jumped from $28,423 in 2021-22 to $70,224 in 2022-23, reflecting adjustments in the way these costs were allocated to the General Maintenance and Public Works Departments.

• Building repairs and maintenance increased from $129,037 to $238,940 year-over year.

• Contract services in the police department increased from $47,489 in 2021-22 to $88,591 last year.

• Included in accounts receivable line item are receivables that were more than 90 days past due of approximately $692,500 and $650,000 at April 30, 2023 and 2022, respectively.

These receivables include member assessments, which are billed annually on May 1, and related interest and other charges. Past due member assessments, in accordance with Association policy, have liens placed against the property.

• During April 2022, the Association entered into a line of credit arrangement with the Bank of Ocean City with a maximum borrowing power of $43,250 with principal due on demand.

The line bears interest at a rate of 2.25

percent per year.

The line is secured by the Association’s certificate of deposit account held with the bank. There was no outstanding balance on the line at April 30, 2023 and 2022.

• The Association has two defined contribution retirement (401k) plans, which cover all full and parttime employees over 20.5 years of age and having at least 1,000 hours of service in the plan year.

Participants may contribute up to 100 percent of compensation with a maximum contribution as permitted by the IRS, currently $22,500 in calendar year 2023.

The Association contributes up to a 3 percent match of compensation for all eligible employees that contribute to the plan and have been with the company for at least 12 consecutive months, with the exception of police officers who receive an automatic 5 percent contribution in a separate plan.

Association contributions to the plan were approximately $101,000 and $97,000 for the years ended April 30, 2023 and 2022, respectively.

• In December 2015, the Asso-

OPA cash position improves to $18.72 million

he Ocean Pines Association’s cash and investment position improved in July, increasing from $18.15 million at the end of June to $18.72 million on July 31. According to a schedule included with the July financial summary posted on the OPA Website, the OPA had about $2.29 million on hand in

two insured cash sweep accounts, one with the Bank of Ocean City and the other with Taylor Bank.

Operating accounts excluding Matt Ortt Companies accounts contained $2.194 million.

The balance of the $18.72 million was held in CDRs and $986,729 in treasury bills.

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ciation concluded discussions with Sandpiper Energy to facilitate the conversion of the Ocean Pines community from propane to natural gas over the next several years.

The resulting agreement between Sandpiper and the Association includes provisions that provide Sandpiper with certain easements, rightof-ways and a land lease related to installation, operation and maintenance of a gas distribution system.

The agreement also provides that Sandpiper pay to the Association certain fees, commencing in fiscal year 2016.

Required payments of approximately $16,200 have been recorded as revenue during each of the years ended April 30, 2023 and 2022, as reflected in services and supplies in the accompanying statements of revenues and expenses and changes in fund balances.

• In August 2019, the Association entered into a management agreement with Matt Ortt Companies to provide management and operational services for the Yacht Club and Beach Club for at least three years commencing on May 1, 2020. There is an option to add an additional fourth or fifth year if certain circumstances are achieved, as defined in the agreement.

Under the terms of this agreement, the Association is required to pay $25,000 per month for the first eight months of the fiscal year.

In addition to this $200,000, MOC may be eligible for an additional profit bonus if a target operating profit is achieved, as defined in the agreement. MOC will split (50%) of any profits in excess of this target operating profit.

These amounts will be payable at the conclusion of the corresponding fiscal year.

If MOC does not achieve the target operating profit there is a clawback feature contained within the contract whereby MOC is required to pay back 50 percent of this shortfall from the determined clawback threshold of $100,000.

Upon termination for any reason, MOC shall be paid the management fee due through the date of termination.

In the event that the Association terminates this agreement without cause, MOC shall be paid a liquidated damage equal to $75,000.

The Association paid management fees of approximately $504,000 and $503,000 for the years ended April 30, 2023 and 2022, respectively.

OPA FINANCIALS

September 2023 Ocean Pines PROGRESS 39

Amenity membership revenue reaches goal For first quarter of 2023-24, $1,13 million is collected, 103 percent of budget

By ROTA L. KNOTT Contributing Writer driver behind the $301,913 cumulative operating surplus for the first quarter of the 2023-24 fiscal year is support for Ocean Pines Association amenities through the purchase of annual or seasonal memberships in golf, aquatics, racquet sports and beach parking passes.

According to the July 31 financial summary posted on the OPA Website, amenity membership revenue reached 103 percent of goal, not including beach parking. Membership net revenue totaled $1,132,256, compared to the budgeted $1,103,300. The positive variance was $28,956.

See the summary elsewhere on this page for details on each of the membership amenities.

Beach parking pass revenue is not included in the amenity membership summary, but had it been the financial impact of member support for the amenities would have been even more pronounced. Beach parking passes generated $448,282 in net revenue through July 30, compared to the budgeted $411,479, for a positive variance of $36,803.

The membership totals through July probably will dovetail fairly closely for the fiscal year, as most memberships are booked in the first quarter, May through July.

The monthly amenity membership revenue for July also showed amenities strongly supported

by Ocean Pines property owners.

Most of the membership amenities once again exceeded their budgeted membership revenues for the month. Only aquatics and tennis had a negative variance for the month of July, but both retain positive year-to-date membership revenue.

Aquatics earned $12,388 in membership revenue during the month of July, compared to the budgeted $13,553, a negative variance of $1,165.

Net overall monthly aquatics revenue, including fees, facility rentals, classes and vending, totaled $189,745, for a positive variance to budget of $8,146.

Beach parking pass sales produced $37,672, ahead of budget by $9,453. Beach Club food, facility rental, and beverage revenue for July was $242,977, up $52,424 from the budgeted $190,553.

Golf brought in $2,958 in membership revenue, compared to the budgeted $2,381, a $577 positive variance. Combined golf operations revenue reached $272,436 for July, a positive variance to budget of $63,020.

Two of the three racquet sports also brought in more membership revenue for the month than budgeted. Pickleball generated $6,458 in membership revenue compared to $470 budgeted, a $5,988 positive variance. Total revenue reached $16,462, a $11,456 positive variance to budget.

Net operating reached a $9,339 positive variance to budget.

Platform tennis with $5,695 in membership revenue exceeded its budgeted $131 for a positive u

A

OCEAN PINES ASSOCIATION

MEMBERSHIP REPORT Ocean Pines Association Membership Report

FY 2023 - 2024 TYPE BEACH PARKING

PARKING ONLY ANNUAL-W/Membership WEEKLY DAILY ASSOCIATES TOTAL PARKING AQUATICS

FAMILY-SUMMER FAMILY-WINTER FAMILY-YEARLY

COUPLES-SUMMER COUPLES-WINTER COUPLES-YEARLY INDIV - WINTER INDIV - YEARLY

CHARTER

ASSOCIATES SWIM INDIV YEARLY ASSOCIATES SWIM FAMILY YEARLY ASSOCIATES SWIM FAMILY SUMMER ASSOCIATES SWIM INDIVIDUAL SUMME ASSOCIATES SWIM IND WINTER ASSOCIATES SWIM FAM WINTER TOTAL SWIM GOLF

FAMILY FAMILY-AFTER 12 INDIVIDUAL INDIVIDUAL-AFTER 12 JUNIOR

PERIOD ENDING 7/31/2023 (FY24) Period Ending 7/31/2023

07/31/22 #SALES

07/31/23 #SALES

1,399 765 86 50 10

1,389 800 90 62 15

298,635 112,000 13,500 2,790 7,875

2,310

2,356

434,800

449 0 92 0 0 0 0 59 1 13 15 25 15 0 0

205 0 46 301 0 54 1 69 2 23 16 36 15 0 0 968

69,700 0 28,980 90,300 0 30,955 315 27,726 60 12,444 13,458 16,740 4,200 0 0

335,878

16 4 55 0 2 8 0 1 14

17 5 55 13 5 12 0 2

42,500 8,750 87,733 13,650 1,125 20,400 0 3,500 1,050

890

07/31/23 $AMOUNT

RATE

215 140 150 45 525 100%

340 485 630 300 435 575 315 405 30 545 850 465 280 425 650

100

1 110

178,708

LIFETIME MEMBERS

14

14

0

CART - PKGS FAMILY INDIVIDUAL ASSOCIATES CART FAMILY ASSOCIATES CART INDIVIDUAL FY 2023 TOTAL CART PKGS- 2024

12 8 17,600 2,200 ASSOCIATION 1,500 30 OCEAN PINES 34 51,000 MEMBERSHIP REPORT 2,200 0 0 0 7/31/2023 (FY24) 1,500 4 PERIOD ENDING 1 1,500 46 43 70,100

TYPE

TENNIS

FAMILY FAMILY-AFTER 12 INDIV INDIV-AFTER 12 JUNIOR

ASSOCIATES FAMILY ASSOCIATES IND ASSOCIATES JR ASSOCIATES IND AFTER 12 ASSOCIATES FAM AFTER 12 TOTAL TENNIS

PLATFORM TENNIS FAMILY

INDIV

ASSOCIATES FAMILY ASSOCIATES IND TOTAL PLATFORM PICKLEBALL FAMILY

INDIV

JUNIOR (10-17) ASSOCIATES FAMILY ASSOCIATES IND ASSOCAITES JR TOTAL PICKLEBALL COMBO FAMILY

INDIVIDUAL TOTAL COMBO TOTAL RACQUET SPORTS GRAND TOTAL

105%

2,500 1,750 1,600 1,050 225

ASSOCIATES INDIVIDUAL ASSOCIATES FAMILY ASSOCIATES FAMILY AFTER 12 ASSOCIATES IND AFTER 12 TOTAL

TOTAL GOLF

% OF BUDGET

1,700 2,700 1,750 1,050

108%

91%

160 07/31/22 #SALES

167 07/31/23 #SALES

248,808 07/31/23 $AMOUNT

12 11 34 2 1 0 5 0 1 1

13 6 28 3 3 3 6 0 2 0 64

5,460 1,050 7,420 330 165 1,935 2,430 0 280 0

19,070

420 175 265 110 55 645 405 80 140 225

14 46 0 1 61

20 49 0 1 70

5,900 8,760 0 250

295 180 410 250

66 87 4 15 53 0 225

72 99 3 22 68 0 264

21,166 17,805 165 8,884 16,895 0

295 180 55 410 250 80

13 12

9 19

5,895 7,980

655 420

25

28

13,875

102%

67

14,910

64,915

RATE

%102% OF BUDGET

ANNUAL BUDGET 04/30/24 04/30/24 #SALES $AMOUNT

1,407 769 106 104 10

302,395 107,660 15,900 4,680 5,250

2,396

435,885

225 0 50 223 0 50 1 66 0 19 20 26 14 1 1

76,500 0 31,500 66,900 0 28,750 315 26,730 0 10,355 17,000 12,090 3,920 425 650

917

320,485

16 4 55 0 2 8 0 1 14

40,000 7,000 88,000 0 450 13,600 0 1,750 14,700

100

165,500

19

0

12 26,400 30 45,000 0 0 4 6,000 46 77,400 ANNUAL BUDGET 165 242,900 04/30/24 04/30/24 #SALES $AMOUNT

4,200 1,400 10,070 770 110 1,290 2,430 0 140 0

93%

10 8 38 7 2 2 6 0 1 0 74

113%

14 49 0 1 64

114%

67 87 4 17 57 0 232

56,865

13 12

8,515 5,040

25

13,555

20,410

4,130 8,820 0 250

13,200

19,765 15,660 220 6,970 14,250 0

GOAL OVER (SHORT)

(1,085)

15,393

13,208

(7,300) GOAL 5,908 OVER (SHORT)

(1,340)

1,710

8,050

320

378

426

112,770

108%

395

104,030

8,740

3,738

3,917

1,132,256

103%

3,873

1,103,300

28,956

Source: OPA Finance Director/Controller Steve Phillips, from 2023 Audit Report

40 September 2023 Ocean Pines PROG-

OPA FINANCES

By TOM STAUSS Publisher he Ocean Pines Association recorded a $139,889 operating fund surplus in July, up from the more modest June result of about $12,000.

According to the July financials posted by Controller/Director of Finance Steve Phillips on or before Aug. 21, all but three membership amenities exceeded their budgets for the month. Those departments operating with positive variances included the Beach Club, golf, the Yacht Club, the Clubhouse Grille, beach parking, pickleball, and platform tennis.

Missing their budgets for the month were aquatics, tennis and marinas.

T

By TOM STAUSS Publisher he Ocean Pines Association recorded a $139,889 operating fund surplus in July, up from the more modest June result of about $12,000.

According to the July financials posted by Controller/Director of Finance Steve Phillips on or before Aug. 21, all but three membership amenities exceeded their budgets for the month. Those departments operating with positive variances included the Beach Club, golf, the Yacht Club, the Clubhouse Grille, beach parking, pickleball, and platform tennis.

Missing their budgets for the month were aquatics, tennis and marinas.

But all amenities through July are in the black.

The overall positive variance for the month resulted from revenues over budget by $220,868 and expenses over budget by $80,870.

For the fiscal year through July 31, the positive operating fund variance was $301,913, with revenues over budget by $366,968 and expenses under budget by $65,055.

Through July, golf has overtaken beach parking as the top-producing amenity department, with $495,337 in net revenues and $90,629 ahead of budget. At the same time last year, golf had generated net revenue of $450,419.

That’s a $45,000 year-over-year improvement.

For the month, golf generated $79,489 in net earnings, ahead of budget by $35,032.

Beach parking continues its usual pattern of stellar performance during the summer months when the Beach Club is open.

Through July, beach parking earned $448,281 in net revenue, ahead of budget by $36,803. A year ago at this time beach parking’s net stood at $440,607.

During July, beach parking netted $26,172, ahead of budget by $14,329.

Aquatics also continues on a healthy path, with a $273,356 operating net through July, ahead of budget by $9,867.

T

Membership revenue

From Page 38 variance of $5,564. The variance of all revenue for $1 more at $5,565, and the net operating variance was a positive $3,995.

Tennis had a negative variance from budget for July of $9,201. However, it retains a close year-to-date $23,695 versus budget of $22,216 for membership revenue. Total revenue, including classes, clinics, and drop-ins, had a negative $10, 250 variance for the month, and the net operating variance was $10,917.

However, this is well behind last year’s pace, when the operating net was $340,437 at the end of July.

This could be a byproduct of the fact that pools have been fully staffed this summer, adding to employee costs.

For the month, aquatics managed to earn $7,425, but that was behind budget by $23,271.

The Yacht Club after a slow start for the year is recovering nicely with $256,991 in earnings through July. That’s $20,879 behind budget for the year and off last year’s July cumulative earnings of $282,177.

But for the month, Yacht Club net revenue surged to $173,879, ahead of budget by $34,533.

If August continues this pattern, and by all accounts it has, then the negative variance to budget through July could turn positive for the year.

Marinas continue to be a cash cow for the OPA, but poor weekend weather has affected the bottom line thus far this year.

Net revenue through July was $217,266, behind budget by $31,116.

This is also well off last year’s pace. Cumulatively through July of last year, marinas had generated $248,380 in net earnings. That’s about $31,114 more than what’s been earned for the same time this year.

The Beach Club food and beverage operation is in the black for the year through July in the

amount of $131,485.

That’s $30,334 ahead of budget and not far off the July, 2022, net of $134,061.

One of the racquet sports, pickleball, generated $70,893 in net earnings through July, ahead of budget by a robust $20,885.

This is somewhat off the pace of a year ago, however, when the net through July was $57,192.

Pickleball earned $7,026 in July and was ahead of budget by $9,339.

The Clubhouse Grille is $65,500 in the black through July, ahead of budget by $20,532.

Through July of last year, the net for this operation was $38,324. That’s a year-over-year improvement of more than $27,000.

For the month, the Clubhouse Grille generated $25,562, with a positive variance to budget of $3,995.

Platform tennis was in the black through July in the amount of $8,904, narrowly under budget by $363.

For the month, the net was $796, well ahead of budget by $3,995.

Tennis had $2,777 in net earnings through July, but that’s under budget by $11,458.

Tennis was the only amenity to lose money for the month. The $12,817 in red ink missed its budget target by $10,917.

Reserve summary -- The July 31 reserve summary shows a total balance of $9.298 million, down from of $9.9 million in June and $9.66 million in May, the usual pattern of declining balances throughout the fiscal year.

The replacement reserve balance on July 31was $6.37 million, with bulkheads and waterways at $1.31 million, roads at $1.08 million, drainage at $389,239 and new capital at $146,054.

Balance sheet -- The July 31 balance sheet shows total assets of $44.85 million, up from $43.74 million in July of 2022.

OCEAN PINES ASSOCIATION NET OPERATING BY DEPARTMENT JULY 2023

OPA NET OPERATING RESULTS BY DEPARTMENT - JULY 2023 MONTH ACTUAL

MONTH BUDGET

$ VARIANCE

YTD ACTUAL

YTD BUDGET

$ VARIANCE

YTD LAST YEAR

GENERAL ADMIN MANAGER'S OFFICE FINANCE PUBLIC RELATIONS

(12,680) (38,087) (87,772) (19,672)

(27,963) (40,230) (93,953) (25,021)

15,282 2,143 6,182 5,349

5,806,924 (92,884) (215,469) (68,491)

5,774,594 (98,576) (229,797) (71,867)

32,330 5,693 14,328 3,376

5,916,552 (48,796) (187,128) (74,948)

COMPLIANCE / PERMITS GENERAL MAINT PUBLIC WORKS

(1,970) (84,757) (138,672)

(3,045) (71,431) (150,559)

1,075 (13,327) 11,887

(19,344) (200,605) (375,411)

(2,715) (188,017) (420,878)

(16,629) (12,588) 45,467

(15,611) (158,028) (339,972)

FIRE / EMS POLICE

(84,076) 366,838

(84,076) 343,464

23,374

(252,229) 100,778

(252,229) 28,277

72,501

(266,006) (457,043)

RECREATION / PARKS TENNIS PICKLEBALL PLATFORM TENNIS

(39,458) (12,817) 7,026 796

(10,978) (1,901) (2,312) (3,199)

(28,481) (10,917) 9,339 3,995

(95,037) 2,777 70,893 8,904

(107,237) 14,234 50,008 9,267

12,200 (11,458) 20,885 (363)

(74,441) 15,546 57,192 11,112

AQUATICS

7,425

30,696

(23,271)

273,356

263,489

9,867

340,437

GOLF OPS + MAINT CLUBHOUSE GRILLE

79,489 25,562

44,457 11,893

35,032 13,668

495,337 65,500

404,707 44,969

90,629 20,532

450,419 38,324

BEACH CLUB BEACH PARKING

114,105 26,172

67,004 11,843

47,100 14,329

131,485 448,282

101,151 411,479

30,334 36,803

134,061 440,607

YACHT CLUB MARINAS

173,879 14,629

139,347 21,923

34,533 (7,294)

256,991 217,266

277,869 248,382

(20,878) (31,116)

282,177 248,380

295,959

155,961

139,998

6,559,022

6,257,109

301,913

6,312,833

NET OPERATING

Source: Ocean Pines Association Finance Department

8/17/2023

Ocean Pines PROGRESS September 2023 41

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42 September 2023 Ocean Pines PROGRESS

OPINION

Tragic accident could lead to a reasonable plea agreement

T

he Aug. 18 dismissal in Worcester County Circuit Court of charges against Tyler Mailloux in the tragic death of Ocean Pines teen Gavin Knupp last summer no doubt sent shock waves through the ranks of the prosecution.

State’s Attorney Kris Heiser responded quickly with an appeal to the Maryland Court of Appeals, on the theory that Judge Brett Wilson erred in determining that state law requires the traffic violations, both alleged felonies and misdemeanors, be heard initially in District Court.

It seems unlikely that a jurist with Judge Wilson’s vast experience in the law would make such a fundamental error. An appeal is more or less expected in a case such as this, but that doesn’t mean it has much of a chance of success. Successful appeals are the exception, not the rule.

This appeal has the virtue of affording the state time to consider its options going forward. Perhaps it’s time for the state to take this time to negotiate with the defense for a reasonable plea bargain that will result in a just outcome.

Kris Heiser and her legal team have been subject to a lot of unfair criticism on social media for supposedly making such a basic charging error. She is getting a taste of the vitriol on social media that has been directed at Mailloux and those in his orbit since the tragedy occurred.

Or as those in the DeAngelus/ Mailloux household might say: Welcome to our world. At least in comparison to the drumbeat of malice and prejudice directed against Mailloux, his family and others with only tangential knowledge of the accident since July of last year, the vitriol directed at Heiser has been less harsh and much shorter in duration.

Even so, if one wants rational and thoughtful discussion, social media may not be the best place to find it.

But the lesson to the state’s attorney is this: You will be respected and held in high esteem only to the extent that you perform in the way that the anti-Mailloux mob prefers.

If you do not deliver the desired result, you will be vilified by those with a much inferior grasp of the law than held by you and your assistant state’s attorneys.

While assumptions are the bane of human existence, it’s possible that Heiser and her team assumed that a defendant and his attorney

LIFE IN THE PINES

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

By TOM STAUSS/Publisher in a case of this nature would want a jury trial, which is only possible in Circuit Court. It only takes one juror out of 12 to reject the state’s narrative in a case, resulting in an acquital or a hung jury. In a District Court trial, the prosecution and defense need only persuade a single person, the presiding judge, on the merits of their arguments. So better chances with a jury, especially if there is a chance the trial can be moved to a jurisdiction with a less tainted jury pool?

We’ll never know for sure the reasons why the state filed initially in Circuit Court. Another possible reason is that four of the 17 charges in the case are felonies, with jail time ranging from five to ten years as possible consequences. Cases with such serious potential consequences usually end up in Circuit Court, and often begin there.

But as Mailloux attorney George Psoras persuasively argued, citing chapter and verse of state law, the originating court of jurisdiction in traffic violation cases is District Court. The defendant, not the state, has the right to determine where the case should be heard. Moving a case from District Court to Circuit Court for a jury trail is hardly a rare occurrence. Those of a certain age remember the infamous Sifrit murder trial of the early 2000s. It began as a proceeding in District Court, eventually making its was across the bay where it was heard in Circuit Court in Montgomery County.

Judge Wilson, after ordering a recess, apparently combed through the lawbooks and concluded that Psoras’s reading of the law was correct.

It basically means that the various motions filed in the case, such as a request for a change in venue, are now moot, or at least on hold pending the outcome of the appeal. This initial appeal could be followed by another appeal to the Supreme Court of Maryland. It could be months, even a year or more, before this case works its way through the legal maze.

Pam Correa, the lead attorney in the case for the prosecution, perhaps unthinkingly provided a pretext for why this case might be better settled in a plea agreement between

the state and the defense. During a debate over Psoras’ motion for a change in venue, Correa challenged the defense argument that Mailloux could not receive a fair trial in Worcester County: “Media saturation ... has not been pervasive. It has not been prejudicial. It has been supportive for a juvenile who was killed in a tragic accident but killed at a young age.”

Indeed it was a tragic accident, and calling it that is perhaps the state’s first tangible acknowledgment that its theory of the case, as reflected in the charging document, is in need of revision. A “tragic accident” by definition permits ambiguity of motive; it implies that those involved in it did not intend to inflict injury and death and, perhaps, were unaware that injury and death had been inflicted until later.

That the state’s lead attorney in the case uses such language is cause for optimism that a plea arrangement is at least plausible.

Beyond that, however, is the state police report of this tragic accident, detailed in the August edition of the Progress, but oddly unreported elsewhere in the media.

Salient points of this police report, known to the state when it filed its charges early this year, include the following: • the defendant told the state police investigator he was unaware that an individual had been hit and killed on the night of the tragic accident. The defendant had hit a deer while driving a year or so prior.

• An attorney for the family alleged to have driven the vehicle that killed Gavin Knupp notified the state police of that fact on the day after the accident and made arrangements to turn the vehicle in several days later when the investigating officer returned a phone call.

• the decedent’s sister, who had been driving her late brother home from a party, had her vehicle parked on the side of the road with the high beams on. The defendant’s vehicle was heading straight into the glare of the high beams when

the tragic accident occurred.

• the decedent had blood alcohol of .06 according to the autopsy mentioned in the state police report. Not legally drunk for purposes of a driving under an influence charge, but of course he wasn’t driving, as he was only 14-years-old. But was he situationally impaired at the time of the accident?

When the defense presents its narrative of what transpired that awful evening, should this case make it to court on the merits, there’s little doubt this exculpatory evidence would be explored by the defense.

Unreported in this case, except elsewhere in this edition of the Progress, was the abortive attempt to close the Aug. 18 hearing to the public, which Judge Wilson rejected without comment. Pending was a related motion by the state to seal all the court documents on the case, which the defense had 15 days to rebut. This motion, too, was effectively dismissed, or put on hold, when the judge dismissed the charges against Mailloux on technical grounds.

Oddly, for several hours on the day before the Aug. 18 hearing, access to the case record on the state’s case look-up Website was not accessible; it was as if the case didn’t exist. It turns out the state can’t just purge its records of case documents; a motion and a judge’s concurrence is necessary for that. u

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

OPINION

C

Ocean Pines PROGRESS September 2023 43

COMMENTARY A strong finish for Election Trust

hoosing a vendor to handle next summer’s Board of Directors is not going to be a slam dunk.

It probably will come down to which company can deliver on a multitude of tasks: on-time printing and mailing of ballots and election materials, hybrid paper and on-line voting, email confirmation of votes cast, remote viewing of the vote count and ballot adjudication, and an affordable price point for services.

Election Trust, this summer’s vendor, finished strong, delivering a flawless vote count and ballot adjudication process accessible to anyone interested via live streaming. Yes, much of the vote count appears to have occurred outside the view of the committee. Does it matter?

There is no reason whatever to doubt the accuracy of the vote count this year.

The Bainbridge Island, Washington state firm began the process poorly. Its mailing subcontractor, for reasons that have had not yet been revealed, delivered ballots to its local post office a week late. This caused a public relations nightmare for the Ocean Pines Association and the Elections Committee in particular, with cries of yet another botched election filling the oft-times fevered precincts of social media.

The election wasn’t botched; the Board of Directors in an abundance of caution simply pushed back the due date for return ballots by two weeks, giving OPA members plenty of time to have their ballots counted.

The annual meeting of the association also was pushed back two weeks, without any obvious inconvenience to members.

Interactions between the committee and the Election Trust in the final days of the process were harmonious and constructive.

The live streaming of the vote count, especially the adjudication of ballots that the scanning software had trouble with, was professionally handled by Election Trust.

Elections Committee chair Tom Piatti recently said that the committee was leaning against recommending Election Trust for next summer’s

Life in the Pines From Page 42 Why was the state moving to quash an open court session on this case? Why was it trying to seal case records?

The state’s pleading on file in the clerk’s office makes for interesting reading.

It says it was because of concern that details of the police report, including the decedent’s blood alcohol level, had been revealed in print, possibly tarnishing Gavin’s reputation in the greater community.

election. After the flawless vote count and adjudication of rejected ballots, he’s now leaning in favor of retaining Election Trust. Even so, members remain annoyed that there was no immediately explanation or apology for the late mailing of ballots. The OPA on advice of counsel decided to send out a postcard notifying members of the new time, place and date of the annual meeting, costing an unbudgeted $5,000.

The OPA will need to recoup this expense and more from Election Trust to compensate for the late ballots. While the final stages of the election process were handled very well, Election Trust needs to atone for the early screw-up by negotiating a reasonable reduction in the contract price with the OPA. Failing that, the company shouldn’t bother to submit a new contract proposal for next year’s election.

Ace Printing and Mailing of Berlin, which lost the election contract this year after more than 20 years of working with the OPA, performed flawlessly in working overtime to print and mail the postcard notice of the annual meeting.

This demonstrates that its owner/operator Thom Gulyas is very interested in recapturing the OPA’s election business next summer. He’s said as much in a post on the the ROC Facebook page.

The committee is well aware that ballots sent to and from Washington state take roughly five business days to transit across country via the U.S. Postal Service, and that this unassailable fact counts as a disadvantage for any vendor based on the West coast.

This transit time also works to the advantage of any local vendor.

All else being equal, a local vendor such as Ace Printing and Mailing should have an advantage next year in its effort to regain the contract.

Gulyas should get an early start on putting together a contract proposal that hits all the bullet points needed to satisfy the objectives of the Elections Committee. Clearly, the committee doesn’t want to be involved in the direct handling of ballots, including the operation of scanning equipment used in counting ballots.

That’s a stretch. He was a teenager, and nowadays teenagers do what the police report said he did on the night he tragically died in a horrible accident.

Also postulated is that release of this information could potentially result in an unfair trial for Mailloux, a dubious proposition at best.

It was the Progress that printed details of the police report in its August edition.

Correa’s motions for an “in camera” proceeding and to seal court documents in the case is a very real tacit admission that this case is a not a

So Gulyas will need to craft a proposal that removes the committee from hands-on involvement in counting ballots. This shouldn’t be difficult; it’s been done to varying degrees in years prior, depending on the desires of the committee in any particular year.

One of the reasons Election Trust won the contract this year was its promise to provide for remote viewing of the vote count, a service that other vendors across the country apparently couldn’t guarantee. Gulyas has plenty of time to come up with a solution for this. If Election Trust has found the software to display ballots for adjudication, Gulyas certainly can do the same.

Gulyas also should be able to come up with a process for electronic voting. There is no shame in Gulyas or any other vendor to partner with companies such as Vote HOA Now, used by the OPA last summer for e-voting.

It might be advisable for Gulyas to arrange for an e-vote partner in advance of submitting a proposal to the OPA and then including it as part of his contract offer.

E-mail confirmation of ballots received was a nice addition to this summer’s election process, even though this e-mail confirmation arrived in the spam folders of some voters.

Gulyas would do himself a favor if he would find a way to offer this same service and overcome the spam issue, assuming that it can be.

Although there’s been a testy exchange or two on social media between Gulyas and some committee members, none of that should get in the way of clean slate for this coming year.

The parties can agree to disagree on details of what led the committee this past year to seek an alternative to Gulyas. It’s water under the bridge at this late date. Few care at this point.

Gulyas has performed admirably in years past in handling OPA elections, and he certainly deserves consideration next year as well.

But, so too, should Election Trust be given the opportunity to keep the contract, but only if it agrees to an adjustment in this year’s invoice for services. -- Tom Stauss

slam-dunk for the state.

In court, she suggested she wanted to seal the documents because she has some additional information about the case that she prefers to keep confidential.

There is an abundance of public interest in this case and a fair administration of justice should mean the state is transparent in what it hopes to prove and what it has in its arsenal of evidence to do so.

A competent attorney, and its clear Psoras is as competent as they come, is going to do his best to spin the police report in his client’s

favor. No doubt the state will do the same.

Whatever else the assistant state’s attorney has in the way of more evidence would eventually have to be shared with the defense.

Should it come to that, of course.

Note to Heiser and Correa: Consider working out a reasonable plea deal with the defense. There’s no shame in it. The alternative might be to lose it all, either in District or Circuit Court. If that should happen, the social media criticism thus far over an apparent charging error will seem like a walk in the park.

44 September 2023 Ocean Pines PROGRESS

Before there was an Ocean Pines ...

Plantation houses known as Buckland, Malvern and Middle Quarter were shown on map in the 1880s and existed in the 1920s on property that eventually was acquired by master developer U.S. Land and its subsidiary, Boise Cascade

Present day Ocean Pines, with the original three plantation homes and their environs.

LIFESTYLES

LIFESTYLES

September 2023 Ocean Pines PROGRESS 45

By ROTA L. KNOTT Contributing Writer aidee Mumford, whose family was one of the original owners of much of the land that became Ocean Pines, will be remembered by many as “the Mother of Mumford’s Landing.”

In 1996, the Progress talked with her about her memories of the Ocean Pines area before it became the largest yearround community in Worcester County.

The Mumford’s Landing area of Ocean Pines was so named to honor Mumford, who died in 2010 at age 96, and her husband, Tuffy, who worked for Boise Cascade during the early years of the community’s development.

Tuffy, whose name graced the original Ocean Pines Yacht Club bar for decades, died in 1977. The name survives today in the name attached to a swimming pool and boat ramp in the vicinity of the Yacht Club.

The property that ultimately became Ocean Pines had three plantation houses, Buckland, Malvern and Middle Quarter, located on it in the 1920s. While the houses are long gone, ownership of that land can be traced back directly to several important Worcester County lineages, including the Mumford, Henry and Purnell families.

In a past interview, Zaidee Mumford, The future Ocean Pines, circa the late1800s, showing the Buckland, Middle Quarter and Malvern properties whose mother, Margaret Kenly Hen“There was a fire in the woods on the Riddle nally settled it was in Berlin. Her parents bought ry, and aunt, Elizabeth Spense Purnell, sold the property known as Buckland to Boise Cascade Farm in about 1924 or 1925 and it jumped the a home there in 1915 and christened it Merry shared her memories of what the area was like creek over to what’s now Ocean Pines and burned Sherwood. Today Merry Sherwood, located on Malvern,” Mumford said in a 1996 interview.

Route 113 south of Berlin is operated as a counbefore it became Ocean Pines.

When Boise Cascade began preliminary devel- try inn and hosts special events.

Mumford’s mother lived in a house called In 1968 Mumford’s mother and White’s mother Malvern that stood on the property that became opment work in Ocean Pines in the late 1960s, workers uncovered the foundation for the Middle both decided it was time to give up the land and Mumford’s Landing.

Mumford said her mother lived at Malvern as Quarter home, according to Mumford. At the time sold it to become part of Ocean Pines.

The Buckland house was originally owned by a child and her grandfather, Edward Kenly, re- of the interview with Mumford, she said the site tired to the farm, moving there full-time from could be marked on the Ocean Pines golf course John Selby Purnell and Matilda Hodges Purnell.

The Henry and Purnell families originally acBaltimore. He lived there until the house was de- by a cluster of wisteria trees that stand near where the house was once located between the quired the sprawling farmland and forest known stroyed by fire. as Buckland in the mid-1700s. It was a proviThe second house, Middle Quarter, was located 14th and 15th fairways.

In a separate 1996 interview, another grand- dence of Lord Baron of Baltimore that was called about where the 15th hole fairway can be found daughter of Edward Kenly and Mumford’s cous- Mayfield Situate. The property was part of a land on the Ocean Pines golf course.

A map of the property, among the archives in in, Sarah White, said she too remembered the grant from Lord Baltimore patented on Oct. 9, the Snow Hill library, that is more than a centu- house at Malvern. White’s mother, Elizabeth 1693, by Colonel Williams Stevens. At that time ry old delineates the location of the three houses Spense Purnell, purchased the portion of the land the entire area was part of Somerset County. owned by her brother and eventually controlled Worcester County was not officially established according to an April 15, 1883 survey. until the mid-1700s.

The map shows the parcel known as Buckland two-thirds of Buckland.

When she was a child in about 1925, White Stevens was a staff officer for Lord Baltimore with a northern boundary where Beauchamp Road is found today and a southern boundary at said she remembered visiting Malvern, where the and one of the first justices for Somerset County.

He was a large land holder, owning most of the Manklin Creek, near the present day South Gate entire property was actively being farmed. She said sometimes the family would take a horse property from Lewes, Del., south to the mouth of and Manklin Creek Road. the Pocomoke River.

Buckland is described as being about 2,230 and buggy and ride into Berlin.

“I used to go down there when I was a girl. I A copy of the original land grant for the Mayacres in size, including 1,878 acres of “high land” was about 10 or 12 and I would go and stay for a field Situate, which is part of the William Pitts and about 331 acres of “marsh.”

The plantation house known as Buckland was couple of weeks. Zaidee would go too,” White said collections at the Snow Hill library, shows that situated on the St. Martin River, near the end of in the 1996 interview. She said every summer her Stevens was given 5,000 acres of property “in a family would spend time at Malvern. She couldn’t neck of land called Synpux” by Lord Baltimore. where Beauchamp Road is today.

All three houses that were built in the early remember what happened to the house. She said The collection of Pitts, a local surveyor who died 1880s were destroyed by either fire or the ele- she heard about Middle Quarter and Buckland in 1993, includes maps, notes and photographs.

Synpux evolved to the modern Sinepuxent, ments. Mumford recalled that both Malvern and houses but never visited either of them.

White’s father was in the Armed Services, so both the neck and bay south of the Ocean City Middle Quarter were burned down and no one u the family moved around a lot, but when they fiever rebuilt them.

Z

46 Ocean Pines PROGRESS September 2023 Before there was Ocean Pines From Inlet.Page 44 Pitts’s notes on the land grant to Stevens state that the property was from on the “seaboard” side of the state, an early reference to the Eastern Shore, to the southward of the St. Martin River, which forms a portion of Ocean Pines’ eastern boundary.

The land grant was marked by a “sound of water bay called Newhaven” and bordered land owned by William Tomkins to the south “at the mouth of a creek in a marsh.”

The grant also references the boundaries of the property as being defined by a long-lost “marked white oak” and on another side by a “marked red oak.” The location of these oaks are unkown today.

Stevens sold about 800 acres of the land almost as soon as he received the patent. He sold the property south of the St. Martin River to Col. Francis Jenkins, who in 1698 willed the land to his wife Mary Jenkins.

Another approximately 600 acres of the Mayfield Situate land was acquired by Francis John and Mary Henry, who sold it on June 7, 1711, to Robert Mills. Less than a year later Mills turned around and sold the property back to the Henrys.

The property’s ownership can be traced directly from the Henrys to their descendents, who by the mid-1700s had christened the Mayfield Situate land as Buckland.

That name stayed with the property up until it was acquired by Boise Cascade, successor to U.S. Land Corp., and the master developer of the subdivision that became Ocean Pines.

Henry, in 1715, willed several plantations in the area, including half of the Buckland property, to each of his sons, John Henry and Robert Jenkins Henry and his wife, Mary Jenkins.

In 1723, Mary Jenkins sold 200 acres of the Buckland property, known as “Sister’s Gift,” to Robert King and his wife, Priscilla, but the same year the property was deeded back to her. Upon her death in she willed the land to her son, another John Henry, who was deputy surveyor for the newly created Worcester County.

A decade later, Robert Jenkins Henry deeded 450 acres of property known as “Security” to John Henry.

The entire Buckland parcel was resurveyed in 1769 for John Henry, who at that time owned 1,793 acres of land in the area of present day Ocean Pines.

Through marriage, John Selby Purnell acquired the northernmost portion of Buckland along what is now Beauchamp Road and fronting on the St. Martin River.

An additional portion of the property was passed down to Margaret Campbell Purnell and her husband, Edward G. Kenly. William Pitts himself surveyed Buckland for Kenly on Jan. 25, 1887, when he purchased the northernmost portions owned by Purnell.

Kenly’s two daughters, Margaret Henry and Elizabeth Spense Purnell, and a son, Glenn Kenly, ultimately inherited the land from their father.

From that final bequest, the community of Ocean Pines was eventually born.

LIFESTYLES

Vivian Mumford (left) and daughter Susan Blanton celebrating Vivian’s 101st birthday

Ocean Pines resident celebrates 101st birthday Family and friends commemorated occasion at Yacht Club

By JOSH DAVIS Contributing Writer cean Pines resident Vivian Mumford celebrated a huge milestone on Friday, when she turned 101.

Mumford was born on Aug. 4, 1922, on a farm in a town called “Friendship” that today is known as Pittsville.

She said the farm grew various crops and had one cow and a few chickens. She remembers picking strawberries.

“I loved it because I didn’t have to work on it!” she said.

Mumford went to high school in her hometown, where she was an honor student and was crowned May queen her senior year. She earned a partial scholarship to attend college, but said the family at the time couldn’t afford the rest of tuition.

“Instead, I worked at Woolworth’s dime store. That was my first job,” she said. “And then I worked at J.C. Penney’s and Benjamin’s. I worked all over the place.”

Mumford did everything from running the jewelry counter, to serving as a buyer for a sporting department.

Her eyes lit up when asked about meeting her late husband, Jack.

“You know, we met in Ocean City, at the Pier Club,” she said. “I was there with some friends that I worked with, and I was dancing with another fella and he cut in,” Mumford said. “I found u

O

LIFESTYLES out later he worked in the dime store across from Woolworth’s called McCrory’s.”

Jack was drafted into the Army during World War II. After basic training he returned home, and the couple were married.

Around 1942, he was discharged and went to work for the electric company, then called Eastern Shore Public Service. Today, it’s Delmarva Power.

“He was a linesman when he first started, and he climbed poles,” Mumford said. “He put those spikes on his legs and climbed up those poles – they don’t do that now! They have a truck with a bucket.”

The couple had four children: Susan, Jay, Cynthia and Mike. She said Mike is the youngest and was born on her 46th birthday. Susan is the oldest.

“I have four children and four grandchildren – and I might have four great grandchildren,” Mumford said, pausing to count them off by name.

The family lived on Truitt Street in Salisbury for 38 years, and later nearby on Beaglin Park Drive.

Jack suffered from Alzheimer’s disease and passed away at Deer’s Head Hospital in Salisbury in 2006.

Mumford, on doctor’s orders not to drive any more, moved into the Gull Creek senior care facility in Berlin about eight years ago, at age 93.

Her daughter, Susan Blanton, often “ran back and forth” from Ocean Pines to help care for her.

“I lived there for four-and-half years, and then Susan said would it just be easier if you came and lived with me?” Mumford said.

That was four years ago in 2019, when Mumford moved in with Blanton on Ivanhoe Court in Ocean Pines.

Blanton said it was good timing, with the pandemic coming a year later and cutting off access to senior centers.

She said her mom was strict growing up.

“You didn’t mess with mother,” she said.

“But I always stuck up for you!” Mumford added. “She was seven months old before [her father] ever saw her,” because of his service.

Mumford said her children helped out with small chores, like doing dishes and clearing the table.

“She didn’t make us do too much around the house, because we couldn’t do it to suit her,” Blanton said with a laugh. “But everyone always thought my mother was the nicest and the prettiest.”

Now, Blanton is the caretaker for her mother – when she’ll let her be.

“She can still take care of herself. She does her own laundry and makes the bed. She does let me cook, because she can’t really remember recipes,” Blanton said.

“She doesn’t want me to turn the stove on, that’s what it is!” Mumford added. “But she does the cooking and I eat it – whatever it is.”

Mumford said she enjoys being in Ocean Pines with her daughter.

“I’ve got my own bedroom, and there’s a sitting room, and I read a lot,” she said. “I’ve read the same books over and over again.”

They also take frequent trips to the local li-

Ocean Pines PROGRESS September 2023 47

Local author

Ocean Pines author Dr. Cynthia Roman displays her latest book at the Ocean Pines Library. Titled Don’t Call Me a Ghost!, the book is about albinism throughout the world. Albinism affects the production of melanin, the pigment that colors skin, hair and eyes. It’s a lifelong condition that affects coloring and eyesight. A Virginia native, she is a retired university professor, executive coach and the author of numerous academic books and novels. She and her husband, Jim, have lived in Ocean Pines since 2014. She is a past president of the Friends of the Ocean Pines Library.

Red Shoe Book Club

On Aug. 8, the Republican Women of Worcester County held their “Red Shoe Book Club” meeting at the Ocean Pines Library. Their book selection was “Hidden Power, Presidential Marriages that shaped our History,” from a list of books through the Mamie Eisenhower Library Project. Republican women have donated thousands of books each year to schools, libraries and other public institutions through this project.

brary. “I like books that were written back in the time when there were dukes and princes and things like that, like ‘Gone with the Wind.’ And I’ve read a lot of Nicholas Sparks books,” Mumford said.

One Sparks series that she’s read many times frustrates her to no end.

“He wrote these two books [in a series] and this guy was so much in love with this girl, and then she died. If you want to read a book about how somebody mourned, that will really hurt you,” Mumford said. “I said I’d never read another one of his books. He killed that girl! But anyway, I have read many more of them.”

The most recent, she said, was “The Last Song.”

She’s also read “With Every Breath I Take” by Celia Martin at least three times.

“Every time, you find something different,” she said.

Mumford celebrated her birthday at the Ocean Pines Yacht Club with family and friends.

She said the milestone “just means I’m getting older.”

Asked for words of wisdom on living to 101, Mumford said, “Don’t smoke, don’t drink, but dance all you want.

“Just be yourself,” she said. “And be honest.”

48 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE

CURRENTS

Board approves $7.2 million budget Annual dues increase from $1500 to $1700; waterfront assessment set at $500

By TOM STAUSS Publisher he Board of Directors in a meeting Aug. 14 voted unanimously in favor of the $7.2 million 2023-24 budget presented by Senior General Manager Colby Phillips in late July.

Also approved was a $200 increase in annual dues to $1700, payable in two installments of $850. The waterfront assessment was increased to $500, on the recommendation of the Waterfront Working Group.

The budget calls for $7,690,556 in gross operating revenue and $7,217,066 in net revenue after cost of goods.

It projects operating expenses of $4,775,591 and an allowance for bad debts of $851,700, together totaling $5,627,291.

Depreciation, principal curtailment and interest expenses add up to $1,070,077.

The result is a budgeted cash flow from operations of $519,697, or 7.2 percent of revenue.

This compares to a projected cash deficit of $258,196 for the current fiscal year, which Phillips said has not been recouped in the budget for next year.

Had it been, the annual assessment would have been increased by another $89.

During discussion, Director Mark Majerus said the two main drivers in the assessment increase are bad debt and pending litigation.

“We’ve let people slide [on paying their dues] and carrying unpaid dues on the balance sheet,” he said. “You can’t keep pretending you’re going to collect.”

Majerus said that the Cove’s annual dues could be reduced by $328 if all property owners paid their dues on time and in full.

“The other half is litigation,” he said, referring to the Troon Golf and the Birckhead lawsuits.

“We might get some of it {Troon legal expenses] back,” he added, depending on the outcome of the suit. “We filed against Troon because Troon screwed up our finances, and we have to pay for it [pending resolution].”

The forensic accounting currently indicates about $665,000 in discrepancies in revolving accounts.

“We hope to recover any cash owed and the costs associated with resolution of this legal effort,” he said.

The budget presented by Phillips in late July

T

itemized in detail the allocation of the increase in dues: • Member litigation fees, $104 • Insurance cost increases, $30 • Increases in supply costs, road repairs, $43 • Health insurance increases of 13 percent from 2022 to 2023, $35 That actually totaled $212. Phillips rounded it back down to $200.

Majerus said that $5.08 million of the $7.2 million in net revenue is comprised of dues, or 70 percent of total revenue, with the remaining 30 percent in food and beverage revenue and other sources.

Majerus said that direct payroll costs of $2.09 million is 29 percent of the budget, with so-called “loaded” payroll of $2.61 million or 36 percent of the operating budget.

“CCGYC is as service and amenity organization, and this labor is not out of line,” he said.

Majerus presented a graphic showing costs as a function of dues.

These included non-food and beverage payroll,

$544; bad debt expense, $328; general administration, $191; payroll burden, $179; roads and maintenance, $120; utilities, phone and trash, $120; legal fees (excluding those related to collections), $119; golf course, $45; pools and security, $18; depreciation, principle and interest, $370; and expenses related to a change in designating delinquent accounts from 270 to 91 days, $91.

These items totaled $2,125.

Other costs as a function of dues included a capital reserve contribution of $150,000, or $52, resulting in a total of $2,177.

These costs are partially offset by other income streams, Majerus said.

These include food and beverage net income, $65; accounts receivable collections, $69; other income streams, $151; and interest charges from delinquent accounts, $199.

Other income streams included Pender & Coward collections and foreclosure auctions, lot mowing, boat slips, guest passes, ECC fees, violations, and golf cart fees.

To Page 52

Town Center deck repairs were completed in mid-August by Cove a Mainteance Department crew.

Licensing & Permits Cable TV Equipment Repair/Maintenance Equipment Rental Cleaning Supplies Food & Beverage Supplies Entertainment Sales & Use Tax Food & Beverage Paper Goods Total Food & Beverage Expenses:

Budget Fiscal Year 2024 Budget Fiscal Year 2024 Budget Fiscal Year 2024

Captain's Cove Golf & Yacht Club, Inc. Period Range: 2023 to September 2024 Period Range: OctOct 2023 to September 2024 Period Range: Oct 2023 to September 2024 Accounting Basis: Accrual Accrual Note: Accounting Basis: Note: Accounting Basis: Accrual Note: Include Zero Balance Accounts: NoNo Include Zero Balance GLGL Accounts: Include Zero Balance GL Accounts: No

Approved Captain’s Cove Golf and Yacht Club 2023-24 Budget

Operating Revenue & Expense Operating Revenue & Expense Operating Revenue & Expense

Assessments Dues Assessments Dues Assessments Dues Waterfront Dues Waterfront Dues Waterfront Dues Collections from Bad Debt Reserve Net/Shown ARAR Collections from Bad Debt Reserve Net/Shown on on AR Collections from Bad Debt Reserve Net/Shown on Balance Sheet Balance Sheet Balance Sheet Collections Legal Fees Posted to Member Accounts ARAR Collections Legal Fees Posted to Member Accounts AR Collections Legal Fees Posted to Member Accounts Interest Charges to delinquent accounts Interest Charges to delinquent accounts Interest Charges to delinquent accounts Gain Sales of Lots Gain on on Sales of Lots Gain on Sales of Lots Gain sale of assets Gain on on sale of assets Gain on sale of assets Boat Boat SlipSlip FeeFee Boat Slip Fee Interest Reimbursement - Declarant Interest Reimbursement - Declarant Interest Reimbursement - Declarant Bulkhead Cure Collections Bulkhead Cure Collections Bulkhead Cure Collections Mowing LotLot Mowing FeeFee Lot Mowing Fee Pool Fees (Lessons) Pool Fees (Lessons) Pool Fees (Lessons) Mailbox Keys Mailbox Keys Mailbox Keys Guest Passes (Amenity) Guest Passes (Amenity) Guest Passes (Amenity) STR Registration STR Registration FeeFee STR Registration Fee CC&R Violation Assessment CC&R Violation Assessment CC&R Violation Assessment Disclosure Packets Disclosure Packets Disclosure Packets Environmental Control Committee Application fees Environmental Control Committee Application fees Environmental Control Committee Application fees Event Income Event Income Event Income Greens Fees Greens Fees Greens Fees Cart Fees Cart Fees Cart Fees Shop Sales ProPro Shop Sales Pro Shop Sales Golf Event Income Golf Event Income Golf Event Income Memberships/Golf/VSGA Memberships/Golf/VSGA Memberships/Golf/VSGA Marina Club Food & Beverage Marina Club Food & Beverage Marina Club Food & Beverage Town Center Snackbar Town Center Snackbar Town Center Snackbar Town Center Retail Beer Town Center Retail Beer Town Center Retail Beer Town Center Retail Grocery Town Center Retail Grocery Town Center Retail Grocery Misc Income & Disc (Food, Beverage, & Golf) Misc Income & Disc (Food, Beverage, & Golf) Misc Income & Disc (Food, Beverage, & Golf) Banquets MCMC Banquets MC Banquets Marina Club - Beer Marina Club - Beer Marina Club - Beer Marina Club - Liquor Marina Club - Liquor Marina Club - Liquor Marina Club - Wine Marina Club - Retail Misc Income Total Operating Revenue: Marina Club - Wine Marina Club - Retail CostIncome of Goods Sold Misc

Cost Of Goods Sold-Pro Shop Total Operating Revenue: Cost of Good Sold-Marina Club Retail Cost Of Goods Sold-Town Center Food & Beverage Cost Of of Goods GoodsSold-Town Sold Cost Center Grocery Cost Shop Cost Of Of Goods Goods Sold-Pro Sold-Town Center Beer Cost of Good Sold-Marina Club Retail Cost Of Goods Sold-Marina Club Food & Beverage Cost Of Goods Sold-Town Center Food & Beverage Cost Of Of Goods Goods Sold-Town Sold-MarinaCenter Club Alcohol Cost Grocery Cost Of Of Goods Goods Sold-Town Sold-MarinaCenter Club Beer Cost Beer Cost Of Of Goods Goods Sold-Marina Sold-Marina Club Club Food Wine & Beverage Cost Cost OfCost Goods Total of Sold-Marina Goods SoldClub Alcohol Cost Of Goods Sold-Marina Club Beer Cost Of Goods Sold-Marina Club Wine Total Cost of Goods Sold

$4,911,300 $4,911,300 $4,911,300 $168,000 $168,000 $168,000

$4,342,589 $4,342,589 $4,342,589 $68,808 $68,808 $68,808

$200,000 $200,000 $200,000 $95,000 $95,000 $95,000 $575,000 $575,000 $575,000 $1,212 $1,212 $1,212 $900 $900 $900 $33,600 $33,600 $33,600 $12,827 $12,827 $12,827 $0 $0 $0

$200,000 $200,000 $200,000 $95,000 $95,000 $95,000 $600,000 $600,000 $600,000 $1,200 $1,200 $1,200 $900 $900 $900 $23,000 $23,000 $23,000 $21,664 $21,664 $21,664 $0 $0 $0

$105,504 $105,504 $105,504 $3,000 $3,000 $3,000 $216 $216 $216 $40,000 $40,000 $40,000 $36,400 $36,400 $36,400 $22,000 $22,000 $22,000 $13,130 $13,130 $13,130 $14,528 $14,528 $14,528 $3,030 $3,030 $3,030 $19,100 $19,100 $19,100 $125,100 $125,100 $125,100 $5,050 $5,050 $5,050 $2,020 $2,020 $2,020 $0 $0 $0 $612,000 $612,000 $612,000 $250,000 $250,000 $250,000 $41,100 $41,100 $41,100 $52,500 $52,500 $52,500 $9,039 $9,039 $9,039 $0 $0 $0 $123,500 $123,500 $123,500 $157,500 $157,500 $157,500 $30,000 $12,000 $16,000 $7,690,556

$75,360 $75,360 $75,360 $3,000 $3,000 $3,000 $200 $200 $200 $38,000 $38,000 $38,000 $0 $0 $0 $22,390 $22,390 $22,390 $13,000 $13,000 $13,000 $14,384 $14,384 $14,384 $2,165 $2,165 $2,165 $55,639 $55,639 $55,639 $52,000 $52,000 $52,000 $5,000 $5,000 $5,000 $2,000 $2,000 $2,000 $33,947 $33,947 $33,947 $590,000 $590,000 $590,000 $235,000 $235,000 $235,000 $40,000 $40,000 $40,000 $37,500 $37,500 $37,500 $6,088 $6,088 $6,088 $0 $0 $0 $125,000 $125,000 $125,000 $150,000 $150,000 $150,000 $30,000 $5,000 $16,000 $6,904,834

$30,000 $30,000 2024 Proposed $12,000 $5,000 Reforecast 2023 Budget $16,000 $16,000

$11,000 $7,690,556

$10,000 $6,904,834 $6,000 $10,243 2024 Proposed $90,000 $105,000 Reforecast 2023 Budget $21,000 $19,919 $11,000 $10,000 $28,280 $33,000 $6,000 $10,243 $231,800 $275,000 $90,000 $105,000 $44,100 $45,000 $21,000 $19,919 $32,220 $37,500 $28,280 $33,000 $9,090 $9,000 $231,800 $275,000 $44,100 $45,000 $473,490 $544,662 $32,220 $9,090 $473,490

$37,500 $9,000 $544,662

$7,217,066

$6,360,172

Gross Income:

2024 Proposed $7,217,066 Budget

Reforecast 2023

Food & Beverage Expenses Town CenterFood Food & & Beverage Beverage Payroll Expenses Marina Club Food & Beverage Payroll Town Center Food & Beverage Payroll Promo Uniforms - Food & Beverage Licensing & Permits Cable TV Equipment Repair/Maintenance Equipment Rental Cleaning Supplies Food & Beverage Supplies Entertainment Sales & Use Tax Food & Beverage Paper Goods Total Food & Beverage Expenses:

Administration Operating Expenses Source:General Senior General Manager Colby Phillips Administration Payroll Mileage reimb/travel ECC Expenses - Vista Reviews Marketing Community Events

2024 Proposed 2024 Proposed 2024 Proposed Reforecast 2023 Reforecast 2023 Budget Budget Reforecast 2023 Budget

Gross Income:

Golf Expenses Golf Course Maintenance Payroll Pro Shop Payroll Golf Expenses Golf Course Maintenance Payroll Maintenance Shop Supplies Pro Shop Payroll Supplies-Pro Shop Maintenance Shop Supplies Supplies-GolfShop Course/Small EQT Supplies-Pro Equipment Repair/Maintenance-Golf Course Supplies-Golf Course/Small EQT Equipment Repair/Maintenance-Golf Course Top Dressing Sand Top Dressing Sandsoil Bunker Sand/Top Bunker Sand/Top soil Aerification/Fertilizer Aerification/Fertilizer Chemicals Chemicals Seed Seed Irrigation repair repair Irrigation Irrigation Irrigation Computer Computer Pump Pump House/Course House/Course Supplies Supplies General General -Golf -Golf Events Events Golf Cart Equipment Capital Lease Payment Golf Cart Equipment Capital Lease Payment Golf Cart Maintenance Golf Cart Maintenance Total Golf Expenses: Total Golf Expenses:

$4,000 $4,200 $8,000 $24,000 $9,000 $40,000 $36,200 $0 $0 $724,726

September 2023 Ocean Pines PROGRESS 49

CAPTAIN’S COVE CURRENTS Captain's Cove Golf & Yacht Club, Inc. Captain's Cove Golf & Yacht Club, Inc. Account Name Account Name Account Name

$6,000 $4,200 $6,000 $24,720 $9,270 $29,500 $34,200 $0 $11,000 $648,430

$6,360,172

2024 Proposed $186,369 $179,201 2023 Budget $60,900 Reforecast$58,553 $186,369 $7,956 $60,900 $7,140 $7,956 $3,450 $7,140 $11,550 $3,450 $11,550 $4,080 $4,080 $3,060 $3,060 $4,950 $4,950 $34,800 $34,800 $1,440 $1,440 $7,000 $7,000 $2,625 $7,000 $7,000 $2,400 $2,400 $30,744 $30,744 $2,220 $2,220 $377,684

$377,684

2024 Proposed Budget 2024 Proposed

$179,201 $7,800 $58,553 $7,000 $7,800 $3,000 $7,000 $11,000 $3,000 $11,000 $4,000 $4,000 $3,000 $3,000 $4,500 $4,500 $30,000 $30,000 $1,200 $1,200 $4,000 $4,000 $2,652 $7,000 $7,000 $2,400 $2,400 $20,000 $20,000 $2,200 $2,200 $325,306

$325,306

Reforecast 2023

$140,000 Reforecast $154,241 2023 Budget $380,640 $140,000 $2,400 $500 $6,000 $4,200 $6,000 $24,720 $9,270 $29,500 $34,200 $0 $11,000 $648,430

2024 Proposed Budget $630,696 $4,635 $39,000 $24,000 $23,000

$441,185 $154,241 $2,400 $1,500 $4,000 $4,200 $8,000 $24,000 $9,000 $40,000 $36,200 $0 $0 $724,726

Reforecast 2023 $540,000 $4,500 $32,659 $48,000 $24,000

General Administration Operating Expenses Administration Payroll Mileage reimb/travel ECC Expenses - Vista Reviews Marketing Community Events Preventative Main. Fire/Life/Safety IT - Supplies IT Licensing Subscriptions - CARDS/Toast etc.

Postage-mailings-Iron Mountain-Copier Transcription Service - G&A - Administrative Supplies Professional Fees-Audit Insurance - Exclusive of Workers Comp & Health Rainy Day Fund VAPOAA Capital Reserve Study Total General Administration Operating Expenses:

2024 Proposed Budget

Reforecast 2023

$630,696 $4,635 $39,000 $24,000 $23,000 $3,600 $3,548 $116,461 $27,772 $43,760 $30,385

$540,000 $4,500 $32,659 $48,000 $24,000 $3,200 $3,445 $113,069 $26,963 $42,000 $29,500

$196,928 $23,176 $15,000 $1,181,961

$180,000 $0 $0 $1,047,336

Insurance increases account for $30 of the projected increase.

Legal Costs

2024 Proposed Budget

Reforecast 2023

Legal Fees General $43,260 $42,000 Legal Fees-Collections Member AR $95,000 $95,000 Prof Fees-Legal -Troon Legal Claim $100,000 $190,000 Prof Fees-Legal -Member Litigation $200,000 $100,000 Total Legal Costs Expenses: $438,260 $427,000 2024 Proposed 2024 Proposed Proposed 2024 RemovingSecurity AR and General, fees account for $104 of the projected increase.

Reforecast 2023 & Pools Legal Operating Expenses Budget Reforecast2023 2023 Security Budget Reforecast Security& &Pools Pools Operating Operating Expenses Expenses Budget 2024 Proposed Pool/Reception Payroll $153,133 Reforecast $147,243 2023 Security Payroll & Pools Operating Expenses Budget Pool/Reception $153,133 $147,243 Pool/Reception $153,133 $147,243 Security Payroll Payroll $181,968 $314,543 Security $181,968 $314,543 SecurityPayroll PayrollPayroll $181,968 $314,543 Security Supplies/Uniforms $3,640 $3,500 Pool/Reception $153,133 $147,243 Security Supplies/Uniforms $3,640 $3,500 Security Supplies/Uniforms $3,640 $3,500 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Security Payroll $181,968 $314,543 Pools &&Recreation Supplies/Training/Chemicals $49,733 $48,284 Pools Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570 Security Supplies/Uniforms $3,640 $3,500 Total & $388,474 $513,570 TotalSecurity Security & Pools Pools Operating Operating Expenses: Expenses: $388,474 $513,570 Pools & Recreation Supplies/Training/Chemicals $49,733 $48,284 Total Security & Pools Operating Expenses: $388,474 $513,570

2024 Proposed 2024 Proposed

2024Budget Proposed Reforecast 2023 R&M Operating Expenses Reforecast2023 2023 R&M Expenses Budget R&MOperating Operating Expenses Budget 2024 Proposed Roads & Maintenance Payroll exclusive of WF $343,395 Reforecast$330,648 Roads &&Maintenance Payroll exclusive of WF $343,395 $330,648 Roads Maintenance Payroll exclusive of WF $343,395 $330,648 2023 Housekeeping Payroll $15,000 Reforecast $25,000 R&M Operating Expenses Budget Housekeeping Payroll $15,000 $25,000 Housekeeping Payroll Payroll exclusive ofetc) $15,000 $25,000 Maintenance (supplies/uniforms/training $121,536 $118,000 Roads & Maintenance WF $343,395 $330,648 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Maintenance (supplies/uniforms/training etc) $121,536 $118,000 Housekeeping Payroll $15,000 $25,000 Repair of Existing Roads $97,725 $7,500 Repair Roads $97,725 $7,500 Repairof ofExisting Existing Roads $97,725 $7,500 Maintenance (supplies/uniforms/training etc) Lots (mow) $121,536 $118,000 Landscaping/Material/Plantings/Maintaining $102,750 $135,000 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Bulkheads DefaultRoads Cure $20,000 $0 Repair of Existing $97,725 $7,500 Bulkheads Default Cure $20,000 $0 Bulkheads $20,000 $0 Pest ControlDefault Cure $3,744 $3,500 Landscaping/Material/Plantings/Maintaining Lots (mow) $102,750 $135,000 Pest Control $3,744 $3,500 Pest Control $3,744 $3,500 Total R&M Operating Expenses: $704,150 $619,648 Bulkheads Default Cure Total R&M Operating Expenses: $20,000 $0 $704,150 $619,648 R&M Operating Expenses: $704,150 $619,648 Cost Pest increases to supplies asTotal well as the recommended road repairs accounts for $43 Control $3,744 $3,500 Cost well as the recommended road repairs repairs accounts accounts for for$43 $43 Costincreases increasesto tosupplies suppliesas as well asprojected the Operating recommended road of the increase.

Total R&M Expenses: $704,150 $619,648 of of the the projected projected increase. increase.

2024 Proposed Cost increases to supplies as well as the recommended road repairs accounts for $43 2024 Proposed Proposed 2024 of the projected increase.

Waterfront & Canals Budget

Waterfront Waterfront & & Canals Canals Waterfront Payroll Waterfront WaterfrontPayroll Payroll Supplies-Waterfront & Canals Waterfront & Canals Supplies-Waterfront & Canals Supplies-Waterfront Dredge Repair Waterfront Payroll & Canals Dredge DredgeRepair Repair Dredging - Vendor & Canals Supplies-Waterfront Dredging --Vendor Dredging Vendor Re-establish Reserve Account Dredge Repair Re-establish Reserve Account Re-establish Reserve Account Total Waterfront & Canals Expenses: Placeholder Dredging - Vendor Total Waterfront & Expenses: Total Waterfront & Canals Canals Expenses: Placeholder Placeholder Re-establish Reserve Account Total Waterfront & Canals Expenses: Placeholder

Reforecast 2023 Reforecast 2023 Budget Budget 2024 Proposed $50,000 Reforecast 2023 $27,000 $50,000 $27,000 $50,000 $27,000 Reforecast 2023 $10,000 $115,000 Budget $10,000 $10,000 $38,000 $50,000 $38,000 $38,000 $0 $10,000 $0 $0 $70,000 $38,000 $70,000 $70,000 $168,000 $0 $168,000 $168,000 $70,000 $168,000

$115,000 $115,000 $27,000 $0 $115,000 $0 $0 $0 $0 $0 $142,000 $0 $142,000 $142,000 $0 $142,000

2024 Proposed 2024 Proposed

2024Budget Proposed Reforecast 2023 Payroll Burden Reforecast2023 2023 Payroll Burden Budget Burden Budget 2024 Proposed Payroll taxes/FICA Payroll - consolidated $185,000 Reforecast$180,000 Payroll taxes/FICA --consolidated $185,000 $180,000 Payroll taxes/FICA consolidated $185,000 $180,000 2023 ADP Processing fees/Payroll $6,500 Payroll Burden Budget$6,695 Reforecast ADP fees/Payroll $6,695 $6,500 ADPProcessing Processing $6,695 $6,500 Medical & Healthfees/Payroll $302,637 $296,703 Payroll taxes/FICA - consolidated $185,000 $180,000 Medical &&Health $302,637 $296,703 Medical Health $302,637 $296,703 Workmans Comp.

Insurance $22,310 $21,660 ADP Processing fees/Payroll $6,695 $6,500 Workmans Comp. $22,310 $21,660 Workmans Comp.Insurance Insurance $22,310 $21,660 Payroll Tax Waterfront $1,397 $1,356 Medical & Health $302,637 $296,703 Payroll Waterfront $1,397 $1,356 PayrollTax TaxComp.

Waterfront $1,397 $1,356 Total Payroll Burden: $518,039 $506,219 Workmans Insurance $22,310 $21,660 Total Payroll Burden: $518,039 $506,219 Total Payroll Burden: $518,039 $506,219 Health Insurance increased 12% between 2022-23 as well as combining all Payroll Tax Waterfront $1,397 Reforecast 2023 $1,356 Utilities & Telephone & Trash2022-23 Budget Health increased 12% between as well well as as combining combining all HealthInsurance Insurance increased 2022-23 as all departments into one budget12% will between account for $35 Burden: of the projected increase.

Total Payroll $518,039 $506,219 departments into of the the projected projectedBudget increase.

Utilities-Electric $63,860 Reforecast$62,000 2023 Utilities & budget Telephone & Trashfor departments intoone one budget will will account account for $35 $35 of increase.

Proposed Health Insurance increased 12% between 2022-23 as well as 2024 combining all Utilities-Water/Sewer $82,488 $80,823 2024 Proposed Proposed Utilities-Electric $63,860 $62,000 2024 departments into one budget will account for $35 of the projected increase.

Gas, Fuel, Diesel $47,380 Utilities-Water/Sewer $82,488 Reforecast$46,000 $80,823 2023 Utilities & Telephone & Trash Budget 2024 Proposed Propane - All departments $57,890 $56,000 Gas, Fuel, Diesel $47,380 $46,000 Utilities-Electric $63,860 $62,000 Telephone & Internet $59,740 $58,000 Propane - All departments $57,890 $56,000 Utilities-Water/Sewer $82,488 $80,823 Trash Removal-ALL $35,535 $34,500 Telephone & Internet $59,740 $58,000 Gas, Fuel, Diesel $47,380 $46,000 Utilities, Telephone & Trash Expenses: $346,893 $337,323 Trash Removal-ALL $35,535 $34,500 Propane - Total All departments $57,890 $56,000 Utilities, Telephone & Trash Expenses: $346,893 $337,323 TelephoneTotal & Internet $59,740 $58,000 Trash Removal-ALL $35,535 $34,500 Total Utilities, Telephone & Trash Expenses: $346,893 $337,323

2024 Proposed

Reforecast 2023 Committee Expenses Budget 2024 Proposed Arts & Craft League Committee $1,000 Committee Expenses Budget$1,000 Reforecast 2023 CERT $500 $250 Arts & Craft League Committee $1,000 $1,000 2024 Proposed Pot-Luck Committee $2,200 CERT $500 Reforecast 2023 $250 Committee Expenses Budget$1,000 Activity Groups $1,200 $0 Pot-Luck Committee $1,000 $2,200 Arts & Craft League Committee $1,000 $1,000 Total Committee Expenses: $3,700 $3,450 Activity Groups $1,200 $0 CERT $500 $250 Total Committee Expenses: $3,700 $3,450 Pot-Luck Committee $1,000 $2,200 Activity Groups $1,200 $0 Total Operating Expenses: $4,775,591 $4,646,578 Total Committee Expenses: $3,700 $3,450 Allowance for Bad Debt: $851,700 $900,000 Total Operating Expenses: $4,775,591 $4,646,578 Total EBITDA: $1,589,774 $813,594 Allowance for Bad Debt: $851,700 $900,000 EBITDA: $1,589,774 $813,594 TotalTotal Operating Expenses: $4,775,591 $4,646,578 2024 Proposed Allowance for Bad Debt: $851,700 $900,000 2023 Other Budget 2024 Proposed Total Expenses EBITDA: $1,589,774 Reforecast $813,594 GF Depreciation $480,000 Reforecast $480,000 2023 Other Expenses Budget WF Depreciation $24,000 $24,000 GF Depreciation $480,000 $480,000 2024 Proposed GFOther - WF Principal Curtailment $455,400 $455,400 Depreciation $24,000 Reforecast $24,000 2023 Expenses Budget Interest $110,677 $112,390 GF - GF Principal Curtailment $455,400 $455,400 Depreciation $480,000 $480,000 Total ITDA: $1,070,077 $1,071,790 Interest $110,677 $112,390 WF Depreciation $24,000 $24,000 Total ITDA: $1,070,077 $1,071,790 GF - Principal Curtailment $455,400 $455,400 Gross Income: $7,217,066 $6,360,172 Interest $110,677 $112,390 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Gross Income: $7,217,066 $6,360,172 Total ITDA: $1,070,077 $1,071,790 $1,070,077 $1,071,790 Operating ExpensesTotal & BadITDA: Debt $5,627,291 $5,546,578 Budgeted Cash Flow from Operations: $519,697 -$258,196 Total ITDA: $1,070,077 $1,071,790 Gross Income: $7,217,066 $6,360,172 7.20% $ (89.37) Budgeted Cash Flow from Operations: $519,697 -$258,196 Operating Expenses & Bad Debt $5,627,291 $5,546,578 Note: Adding the areas highlighted to making up the projected $200 increase in dues, you will come up with a higher 7.20% $ (89.37) Total ITDA: $1,070,077 $1,071,790 number then mentioned in theFlow meeting, there were$200 areas the team onwill for come cost savings.

Ahigher more Note: Adding the$200. areas As highlighted to making up the projected increase in worked dues, you up with-$258,196 a Budgeted Cash from Operations: $519,697 specific entire dues structure will be shared at the board 14th at 4pm. As a numberbreakdown then $200. of Asyour mentioned in the meeting, there were areas the teammeeting workedon onAugust for cost 7.20% $ savings. A more (89.37) reminder, the dues boardstructure approves thebe budget and setsboard the annual assessment. specific breakdown your entire will shared at the on will August 14th 4pm.

As a Note: Adding the areasofhighlighted to making up the projected $200 increase inmeeting dues, you come up at with a higher the board budget sets annual assessment. number then $200. reminder, As mentioned in theapproves meeting, the there were and areas thethe team worked on for cost savings. A more specific breakdown of your entire dues structure will be shared at the board meeting on August 14th at 4pm. As a reminder, the board approves the budget and sets the annual assessment.

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CAPTAIN’S COVE

September 2023 Ocean Pines PROGRESS 51

52 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE CURRENTS Approved budget From Page 48 These “savings” against the assessment totaled $484.

When savings of $484 are subtracted from costs of $2,177, the result is $1,693, or $7 less than the approved assessment of $1700.

Majerus noted that food and beverage operations are projected to generate a profit of $184,000 in the current fiscal years.

Payroll reductions in security and repair and maintenance savings have been projected at $50.

In approving the budget, the Board adopted a property management team and Operating Committee recommendation to return to the former practice of including walking access to the golf course as part of the annual dues. Golf carts are extra.

During discussion prior to the budget’s approval, alternate director David Felt said he wanted assurances that canals in Captain’s Cove would continue to be dredged, at least for one more year, perhaps more, depending on how much capacity remains on the Cove’s spoil site, Treasure Island.

Dredging for next year is not guaranteed, as the developer/declarant CCG Note has rescinded the right of CCGYC employees to traverse land the developer owns near Treasure Island. CCGYC employees have crossed that developer-owned parcel to access Treasure Island as part of disposing of dredging spoil.

Without the right to traverse this parcel, spoil disposal may be precluded.

Majerus has discovered deed documentation that transferred Treasure Island Drive to the Association, however.

This differs from what is shown on county tax maps.

“Resolution of the ownership [issue] may alter the ability of the Declarant to eliminate the right to traverse land to access Treasure Island,” Majerus said.

Prior to the vote to approve the budget and raise the dues, Majerus called for a show of hands among CCGYC members attending the meeting in person to gauge their support of next year’s spending plan.

Of the 100 to 150 members in attendance, most raised their hands in opposition to the budget.

Raising the annual dues is never a popular thing to do, but Cove directors concluded they had little choice.

CAPTAIN’S COVE CURRENTS

September 2023 Ocean Pines PROGRESS 53

$1 million loan possible for new road paving Developer open to increase in ECC fees

By TOM STAUSS Publisher he approved Captain’s Cove budget for 2023-24 includes increased spending for maintenance of roads, but the Roads Working Group that met Aug. 17 to consider a plan for the future has much loftier ambitions than mere upkeep of existing streets.

While much remains to be worked out, committee members indicated a willingness to recommend that Captain’s Cove Golf and Yacht Club secure a $1 million loan for road paving, specifically to complete Mutiny Drive and Seaview Street.

Also on the radar is resurfacing Davy Jones Boulevard Consultant Chris McCabe said that paving Mutiny Drive and Seaview Drive might require wetlands mitigation, an issue that the Cove continues to deal with. The U.S. Army Corps of Engineers controls wetlands mitigation in the Cove, and there has been a long wait to obtain a delineation needed before the Cove can proceed with new road construction.

What’s called a “jurisdictional determination” for Sections 1, 7 and 10 is close to being approved, McCabe said. Also in the works is a determination for Section 1.

If any proposed new road is within an area defined as a non-tidal wetland, the Army Corps of Engineers would require mitigation elsewhere as a condition of a permit. Mitigation could occur on site or CCGYC could purchase credits from a mitigation site outside of Captain’s Cove.

The Cove’s strategy for Sections 1,7 and 10 was to provide for mitigation in the form of conservation easesments in marshy areas in those sections, along with a plan to restore what’s called a “phrag pit” located near Castaway Drive in Section 1.

If that effort succeeds, then CCGYC could use those mitigation “credits” to allow for the fill of low-lying lots or to build roads. Owners of several lots in the Cove have been unable to building their properties

T

pending this determination and the availability of mitigation.

During discussion of the possibility of securing a $1 million loan to pave Mutiny Drive and Seaview Street, CCGYC Director Tim Hearn said that the Cove declarant/developer, CCG Note, would be receptive to this idea.

“Declarant is open to adjusting ECC fees [to generate funds for servicing the debt] if the Birckhead suit is dismissed with prejudice,” he said.

He was referring to an on-going lawsuit filed by Cove resident Teresa Birckhead and six other CCGYC members to stop or delay a proposed townhouse development at the back entrance to Captain’s Cove off State Line Road.

Hearn also said that the declar-

ant has indicated willingness to make $50,000 per year debt service payments on a $1 million road loan “through the end of the original 20year term that began in 2012.

Hearn said that the declarant/ developer continues to control the activities and actions of the ECC, and that any decision to raise ECC fees for new construction permits and renovations would require CCG Note to agree.

Cove resident Andy Zubco suggested a fee of 1 percent of the value of any new construction or renovation project.

Hearn called that a “worthy idea.”

It was noted during discussion that the fee increase under consideration is called an “administrative fee” in the Cove Declaration, not an impact fee.

Hearn said that impact fees are often levied on developers with proceeds used for public improvements that aren’t necessarily connected to proposed development.

Administrative fees, in contrast, are related to the cost of a specific service provided.

Hearn reiterated that CCG Note is willing to open up discussion of higher ECC administrative fees once the Birckhead litigation is resolved.

When that might happen is unknown, but a court hearing on the many competing narratives in the case could be scheduled by the spring of next year, he said.

He suggested that Cove General Manager Justin Wilder, whose area of responsibility includes working with the ECC, come up with a recommendation on how ECC fees could be adjusted.

Also during the Aug. 17 working group meeting, there was discussion of the possibility of resurfacing some of the tar and chip roads in Captain’s Cove with a so-called fog seal, a half-inch surface that has the appearance of asphalt without the cost of asphalt.

Junior guard

Gavin Zubko on the stand during the final junior lifeguard day in mid-August.

54 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE CURRENTS

CAPTAIN’S COVE CUR-

Roads transfer to county can’t be done, Hearn says

September 2023 Ocean Pines PROGRESS 55

Tar and chip material, lack of curb and gutters mean Cove roads don’t meet ‘municipal’ standards

By TOM STAUSS Publisher aptain’s Cove Director Tim Hearn fielded a question about the possibility of transferring Captain’s Cove roads to Accomack

C

County as a way of saving money.

His answer during an Aug. 17 roads working group meeting was that it can’t be done.

The reason is that Cove roads, dating back to the 1970s, are made

of tar and chip material, rather than asphalt, and also lack curbs and gutters.

“They don’t meet municipal standards,” he said, and therefore Accomack County officials couldn’t take

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them over even if they wanted to, The upshot is that the Captain’s Cove property owners association will have to continue to maintain them and plow them after a winter snowstorm, Hearn added.

He also used the occasion of the working group meeting to explain another impediment to a roads transfer, particularly Captain’s Corridor, which he said is not owned by Captain’s Cove Golf and Yacht Club from the back entrance on State Line Road down to Cove Commons.

That contention is one of the main issues in the Birckhead lawsuit against Aqua, CCGYC and CCG Note, the Cove declarant/developer.

The issue of ownership is an important one. The plaintiffs contend that the entire length of Captain’s Corridor is owned by the POA and that as a result the Cove Board of Directors and Accomack County have no right to grant access to the proposed Hastings townhouse project from the portion of Captain’s Cove that abuts.

As he has almost since the day the suit was refiled earlier this year, Hearn said that former state road 741, now Captain’s Corridor, was deeded over to the original Captain’s Cove developer, Cal Burns, in the 1970s.

An exception, Hearn said, was the portion of the road from State Line Road to Cove Commons.

That section was conveyed both to the developer, on the east side, and to the Hastings family, on the west side, with the boundary line in the middle of the road.

“When Cal Burns recorded Section 14, he expanded the original 15-foot width of the road on his side by 20 feet, resulting in a road width of 35 feet,” Hearn said. The Hastings family left its side of the road as it was.

Easements and improvements in Section 14, an undeveloped area of Captain’s Cove, have never been turned over to CCGYC, Hearn said, and to this day the Hastings family retains the western side of Captain’s Corridor, at least 15 feet of it.

Hearn said that Cove residents who leave Captain’s Cove via the back entrance are “driving on private property,” owned by CCG Note and the Hastings family.

He acknowledged that the Birckhead lawsuit “challenges all that.”

He said that Cal Burns paved the portion of Captain’s Cove in dispute and that CCGYC has been maintaining it ever since.

To Page 58

56 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE CURRENTS

CAPTAIN’S COVE CURRENTS

September 2023 Ocean Pines PROGRESS 57

58 Ocean Pines PROGRESS September 2023

Majerus explains reduction in security staffing, spending Says department’s mission can be accomplished with smaller staff

By TOM STAUSS Publisher esponding to criticism from some Captain’s Cove Golf and Yacht Club members that reductions in Security Department staffing will affect the safety and security of the community, CCGYC Director and Vice President Mark Majerus said it will not have that result.

Even with approved reductions in staff, there will be one security officer per shift circulating throughout the community.

Director of Operations John Costello is also on call 24 hours per day to deal with emergency sit-

R

uations, if needed.

“If a call comes in at 2 a.m. and back-up is needed, John responds,” Majerus said.

But Majerus seemed to suggest that some of the criticism about reduced spending for the Security Department involves a misunderstanding of the department’s role.

He said the department is not a police force, and that situations involving possible criminal acts should trigger a 911 call, with the Accomack County sheriff’s office in Accomac or the state police based in Melfa the expected first responders.

During the Aug. 14 Board of Directors meet-

CAPTAIN’S COVE CURRENTS ing, Majerus detailed the Security Department’s mission.

One objective is to assist members in health or injury-related 911 calls to the county’s Emergency Center.

“A team member is often on-site within four minutes or less of a 911 Emergency Center notification,” he said. “All of the team is trained and certified in general first aid, Narcan, CPR and AED (automatic emergency defibrillator).

This is a valuable service to our members as an ambulance or paramedic service can take 20 minutes or longer to arrive, depending on which agency responds,” he said.

As the County continues to staff up the Greenbackville Fire Department ambulance facility, we should have faster response times in the coming months,” he added.

Majerus said the second mission of the Security staff is to manage and protect Association-owned property, which he said can be accomplished with reduced staff.

“With the reduction in the security staffing, there will be less visible patrols on the streets within the Cove,” he acknowledged.

The third objective of the department is to support the Property Management Team and the Association in the enforcement of the various codes, covenants, and restrictions.

Again, he said, this does not required the level of staffing that had been in place.

General Manager Justin Wilder’s job description includes a focus on Environmental Control Committee enforcement activities.

“The Security Team is not a law enforcement agency,” Majerus said. “They are not empowered or trained to act as such. If resident Members need such support in response to potential burglary, domestic violence, tripped security alarms, etc. they are advised to contact the Accomack County sheriff’s office.” u

Roads

From Page 55 Hearn said that both the Hastings family and CCG Note, as the successors to Cal Burns, grant each other easements so that both can travel on that portion of Captain’s Corridor.

Even if it hasn’t been, it seems unlikely that CCG Note or the Hastings family would attempt to deny access rights to the entity that has been helping to maintain Captain’s Corridor in all the decades since it was originally paved by Cal Burns.

Meanwhile, during the protracted discovery process in the Birckhead litigation, Douglas Kahle, the Birckhead et al attorney, has declined to produce any document, specifically a deed or turn-over agreement, that purports to show the conveyance of the disputed portion of Captain’s Corridor to CCGYC. But he denied in an answer to an interrogatory that the disputed roadway is jointly owned by the developer and the Hastings family.

Hearn said that lawyers for CCG Note have produced the deeds that detail the ownership of Captain’s Corridor as described by Hearn.

CAPTAIN’S COVE CURRENTS Majerus added that the call log to Security is reported monthly and is published on the www.captscove. com website under Public Documents -> Management Reports & Meetings -> Security.

The ratio of calls between the categories of community safety, violations/complaints, and community service has been fairly consistent, Majerus said, making it possible to reduce staffing and lower costs without risking the security and safety of Captain’s Cove.

The total reduction in staffing is about 15 percent, he added, with at least one car on patrol at all times.

With the recent adjustment in staffing, Majerus said CCGYC has about 30 full-time equivalent employees, and he said in some respects Captain’s Cove is a small town that he compared and contrasted with nearby Chincoteague.

Captain’s Cove has about 1,500 full-time residents, while Chincoteague has 3,000, he said.

While it has multiple boat ramps and one marina, it doesn’t have a golf course or swimming pools maintained by the town, Majerus said.

Captain’s Cove has a nine-hole golf course and three swimming pools, two outdoor and one indoor.

Chincoteague has 60 employees, he said, twice the current total in Captain’s Cove.

He directed members to the CCGYC Website for a copy of the Cove’s organizational chart, which he said contains job descriptions for the top three tiers of management “so you can understand their roles.”

Majerus said the budget for 2023-24 was carefully constructed after numerous work sessions, with directors meeting with the property management team both individually and in groups.

September 2023 Ocean Pines PROGRESS 59

Plaintiffs’ lawyer challenges Aqua’s motion to dismiss Scheduled Oct. 2 hearing may provide some clarity on whether Captain’s Cove’s water and sewer utility will continue as a defendant in the Birckhead litigation with CCGYC and CCG Note

By TOM STAUSS Publisher hearing is set for Monday, Oct. 2, in Accomack County Circuit Court on the motion by Aqua Virginia to be dismissed as a co-defendant in the ongoing case against CCG Note and Captain’s Cove Golf Club filed by Teresa Birckhead and six other plaintiffs.

On Aug. 8, the lawyer for the Birckhead plaintiffs, Douglas Kahle of Chesapeake, Va., filed a brief opposing Aqua’a motion to be dismissed as a defendant. Kahle’s motion underscored the wide gulf between the litigants on a number of contentious issues.

The Oct. 2 demurrer hearing may provide some clarity on how the judge in the case, William Revell Lewis III, will rule on these issues.

A demurrer is a pleading in which a party challenges the legal sufficiency of an opposing pleading and demands the judgment of the court on certain matters before proceeding further.

Kahle’s brief opposing Aqua Virginia’s motion for dismissal offers a useful summary of the issues that divide the litigants.

One issue is a disagreement over Aqua’s long-term intentions to use ten numbered lots in Sections 13 and 14 for the construction of rapid infiltration basins to contain treated wastewater from Aqua’s waste collection and treatment system in Cap-

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tain’s Cove. Said to be ten or more years into the future, the plaintiffs contend that the need for the RIBs and their eventual construction runs afoul of the CCGYC Declaration of Restrictions, sometimes called the Declaration for short.

The plaintiffs contend that the Declaration limits numbered lots for residential purposes, while the defendants have said at various times during the proceedings that numbered lots according to the Declaration can also be used for utility purposes.

Kahle’s latest motion says Declaration 4.A “specifically prohibits any structures on numbered lots other than residences and associated outbuildings”and Declaration 8

“prohibits any activity that creates an unreasonable annoyance or nuisiance in the neighborhood.”

The motion further states that the Virginia Code provides that “lack of compliance” with the Declaration gives a lot owner the right to “sue in equity to prevent Aqua’s planned violations of the Declaration’s restrictions.”

In its motion that Kahle is contesting, Aqua argued that the circuit court lacks jurisdiction over this dispute until a state administrative agency, in this case Virginia’s State Corporation Commission (SCC), has made a ruling.

According to Kahle, the SCC “does not have ‘primary jurisdiction’ over To Page 60

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60 Ocean Pines PROGRESS September 2023 Aqua Virginia

From Page 59 the recorded restrictions governing the use of lots in a subdivision, and Aqua has cited no law or Virginia Administrative Code provision which precludes the plantiff’s claim.”

Aqua has also contended that SSC’s approval years ago of Aqua’s purchase of utility assets,including a permit to withdraw groundwater, was a defacto authority to purchase ten numbered lots for use as a RIB parcel.

“Aqua’s argument ignores the inconvenient fact that the Order [granting approval of the sale] only references the prospective purchase of ten acres of unidentified land somewhere, to be used for the construction of RIBs,” the attorney says.

“The SCC was not asked to, and certainly did not, authorize the construction of RIBs on property subject to recorded restrictions limiting construction to residences and associated outbuildings.” he says.

Aqua is arguing the doctrines of collateral estoppel and res judicata, which essentially say that a matter

that has been adjudicated by a competent court may not be pursued further by the same parties.

Kahle is arguing that this issue of the ten lots has not been adjudicated and that therefore these doctrines do not apply.

With respect to Aqua’s demurrer motion, which challenges the sufficiency of plaintiffs’ amended complaint, Kahle argues that neither the SCC’s purchase approvals nor the groundwater permit is relevant to his clients’ right to challenge the use of the ten lots as a future RIB and to seek injunctive relief to prevent such usage.

Aqua also cited eminent domain in support of its right to acquire the lots for future RIBs. Here, too, Kahle argues that eminent domain is inapplicable in this case.

He contends that the purchase of the lots did not occur under “any theory of eminent domain” and to assert otherwise “amounts to an affirmative defense, and it therefore must be proven at a later stage where Aqua might introduce any evidence” in support of that theory.

Finally, Kahle argues against a contention by Aqua that his clients’ suit against Aqua is barred because

CAPTAIN’S COVE CURRENTS

Pilot lot listing program approved Up to 25 properties identified and made available for purchase on the local MLS

By TOM STAUSS Publisher he Board of Directors has given its approval to a pilot lot listing program to test whether the Captain’s Cove Golf and Yacht Club’s inventory of lots can be reduced, bringing in more dues-paying members and thereby reducing the burden on dues-paying members for the costs of operating the association.

At the Aug. 14 Board meeting, General Manager Justin Wilder said the primary goal of the pilot program is to get up to 25 properties listed on the local Multiple Listing Service.

In a follow-up email to the Cove Currents, he said the listings will make it easier for “interested buyers or their agents to find and make offers on lots that CCGYC is willing to part with and has confidence in our asking price.”

In the process of selecting the lots, “we intentionally excluded prop-

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u of the applicable statute of limitations.

“The plaintiffs are seeking an injunction against Aqua’s planned, prospective use of numbered lots

in Captain’s Cove in violation of the Declaration,” he asserts. “The plaintiffs do not seek an injunction against Aqua’s continuing ownership of these lots.”

CAPTAIN’S COVE CURRENTS

September 2023 Ocean Pines PROGRESS 61

Wolff announces new recycling contractor ESVBA moving ahead steadily with broadband installation, supervisor says

By TOM STAUSS Publisher ccomack County Supervisor Ron Wolff has announced that Accomack County has signed a contract with Shore Waste LLC of Salisbury to haul and process recycled waste in the county.

He made the announcement during an Aug. 14 constituents meeting at the Marina Club banquet room in Captain’s Cove.

Wolff at an earlier meeting had disclosed that the county’s long-time provider, Tidewater Fibre Corporation of Chesapeake,Va., would not be renewing its contract with the county effective July 31. That left the county scrambling to find an alternative.

Shore Waste will be charging the county $130 per ton to haul and process recycled materials, which is a substantial over the $70 per ton that Tidewater had been charging. The increase results in a $3200 monthly budget gap that staff is recommending be filled with contingency fund money.

It turns out that Tidewater had submitted a bid of $150 per ton to continue servicing Accomack County.

Staff recommended and the Board of Supervisors approved the lower bid of $130 per ton submitted by Shore Waste.

In other disclosures and comments during the meeting,Wolff said that: • Eastern Shore of Virginia Broadband Authority is “moving ahead steadily” with providing broadband high-spped Internet service to the two Eastern Shore counties and Captain’s Cove in particular.

Quoting ESVBA Executive Director Robert Bridgham, Wolff said installation is “ahead

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Pilot lot program

From Page 60 erties where CCGYC, Inc., has an interest in retaining the property for various reasons, including possible future utility use (for maintenance or golf course operations purposes) or similar reasons,” he said.

The range in appraised value of the lots is between $5,000 and $25,000, and are located in Sections 1, 2 and 3.

Wilder said the program should launch in late August or early September.

“We have flexibility to pursue more targeted marketing opportunities in the future based on the response, but there is no plans for that at least until after 90 days after the pilot program starts, “ he added.

Wilder said that a listing agreement with Jonah Baker of Dockside Properties in Chincoteague was in the process of being finalized. It was Baker who identified the 25 lots to be listed on MLS, and that was reduced from a larger list that Wilder whittled down.

of schedule,” and that ESVBA is well along to spending all of the VATI grant money provided for that purpose.

Wolff added that the county has submitted an application for a federal V-grant, a program designed to provide broad band to under-served rural areas.

“We’ll find out in late fall to early spring [whether we get the grant],” he said.

The V-grant would be used to fund any shortfalls from the VATI grant, Wolff said.

• Rumors that Tyson Foods might be closing its poultry processing plant in Temperanceville appear to be baseless. The company had announced the sale of four plants throughout the country, but Wolff said the company recently installed new signage at its plant in Temperanceville, an indication that the company isn’t going anywhere.

“We feel confident that the plant will stay in business a long time,” he said.

• The Board of Supervisors has amended a county ordinance that mandates boat stickers on all vehicles parked at county boat ramp, with the change effective next year.

Next year only vehicles with boat trailers will require the stickers, which are available free to county residents but carry a fee for non-residents.

Wolff credited a Captain’s Cove resident he didn’t name for the change.

• There will be a ribbon-cutting ceremony Sept. 8 at the county’s new $5 million library in Parksley, which Wolff said will be an outstanding resources for resident of both Accomack and Northampton counties now that a lease with the Eastern Shore Public Library Foundation has been finalized.

He advised residents who are interest in genealogy to take advantage of documents that date back to the 1600s.

• A satellite sheriff’s office in or near Captain’s Cove “is not gonna happen.” In response to a question from a Cove resident,Wolff said that the sheriff is well situated in Accomac, the county seat, where the courthouse and jail are located. He mentioned that there are six deputies patrolling the county at all times, but that the sheriff is struggling to fill four vacancies in the department.

• He would not be engaging in a conversation with Board of Supervisors candidate Roger DeGeorges during the meeting. “We’re not doing politics,” Wolff said, with some heat. DeGeorgres is the Republican candidate for the supervisor seat currently held by Wolff, an independent. The election will be be held in November.

• Resignations by teachers in the Accomack County public school system are not the result of low salaries, but instead reflect the desire of teachers to return to areas where their families reside. Wolff was reacting to an assertion that teachers in the county use Accomack schools as a stepping stone to better paying jobs elsewhere.

He said teacher salaries in Accomack are competitive with those in near Worcester and Wicomico counties.

Wolff also said, in response to a perception that county schools are underperforming, said that it’s possible for students who want to learn to get a good education Ron Wolff in Accomack County. The problem is that too many parents are not sufficiently interested in their kids’ education, he said, noting that the parents of kids who show up to parent-teacher conferences are often the kids who do the best in school.

• 24-7 emergency medical service from the Greenbackville Fire Department is close, awaiting t a new class of trained recruits that is about half-way completed. When that occurs, the ten days of month when 24-7 service is available will expand to the entire month, Wolff said.

Book learning

Brittany Lynn Hines” boys checking out the county’s book bus in early August.

62 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE CURRENTS

AUG. 12 BOARD OF DIRECTORS MEETING NOTES Lot swaps approved

The Board of Directors at its Aug. 14 meting approved member lot swap requests.

The first one was for unbuildable lot 65 in Section 13 for Section 8 lot 34, on Doubloon Court.

The second swap was for two lots in Section 7 that are considered unbuildable because of wetland issues, lot 35 and 36, for two lots in the same section, 184 and 185.

The swaps are contingent on the members paying all related costs and fees for the transfer.

Another foreclosure auction

The 16th foreclosure auction of properties in Captain’s Cove whose owners are delinquent on their dues will be scheduled for late September or early October.

The Board of Directors at its Aug. 14 meeting approved CCGYC as a credit bidder at the auction to protect its lien rights. Pender and Cowder once again will serve as trustee for the auction.

Director Mark Majerus said that 60 properties initially were on the foreclosure list, but that number will likely decrease as the pending foreclosure auction acts as leverage in collection efforts.

The July 10 foreclosure auction began with 60 properties originally listed, followed by 39 of those paid in full or in a payment plan. Four were sold at the auction. Nine of the properties have generated $59,000 in recovered dues, fees and interest.

CCGYC eventually will gain title to the remaining 17 lots.

Delayed 2021-22 audit under way

As the Troon audit of the “missing” six months of financials in 2002 is more or less complete, CCGYC auditors Rosen, Saperstein and Friedlander have begun the annual audit of the 2021-22 fiscal year. Results are due at the end of September, Majerus said.

With $850,000 allocated for unpaid dues, Majerus said that it would be helpful if all CCGYC members paid their assessments.

Majerus defends advertising policy

In response to comments during the meeting’s Member Forum, Majerus defended the Property Management Team’s decision to purchase advertising in the Cove Currents. He said it’s a PMT decision where to spend marketing dollars within the budget, and that a canvassing of local media indicates that Currents advertising “is the best value for those dollars.”

Majerus told critics that “you may not agree with the content” of the Currents, “just as you may not agree with the content of Fox News or MSNBC,” adding that he understands that comments from Director Tim Hearn that are quoted in the publication can be perceived by some CCGYC members as “contentious.”

He suggested that members with opposing views should send in letters to the editor for publication.

“Try that,” he advised.

He also said that CCGYC does not pay for content in the Cove Currents.

He noted that the electronic version of the publication is extracted from the print version of the Ocean Pines Progress every month and e-blasted to CCGYC members and, together with the print edition, reaches close to the entire CCGYC membership.

That was a reference to complaints that CCGYC marketing dollars are being spent primarily to promote Captain’s Cove in Ocean Pines.

“We get it [the e-version] for free,” he said.

An on-line petition launched by Cove member Patty Borrelli collected 302 names in favor of asking the Board to stop spending association fees on Currents advertising. It was not included as an agenda item for the Aug. 14 Board meeting.

Majerus provided additional comments about the issue in a subsequent email.

“These articles are generated and published as a part of the Ocean Pines Progress,” he said. “The advertising that the Cove purchases is for adver-

tising space in the Ocean Pines Progress. The Cove Currents is a separate publication [both as a section within the Progress and as a standalone electronic publication],” Majerus said.

He added that the Cove Currents is generated as a courtesy to Cove and is “provided in electronic format for our distribution.” The publisher extracts the articles from the Ocean Pines Progress and includes additional details and events from Ms. Phillips weekly e-blasts to generate the Cove Currents, he said.

“It is important to understand the distinction between these two publications,” he continued. “CCGYC pays for ads in the Ocean Pines Progress about public events in the Cove, typically bands coming to the Marina Club, etc. CCGYC pays nothing for the Cove Currents.”

Majerus said this distinction is key and the fundamental problem with the petition launched by Borrelli.

“She indicates that CCGYC spends $21,000 a year for all of the ads or content in the Cove Currents. That is a factual error. The Cove Currents is provided free,” he added.

He suggested that some people may have signed the petition based on the premise that CCGYC spends money on the Currents.

“We don’t spend anything on the Currents, so that’s an erroneous basis for a petition,” he concluded.

Short-term rental fee tabled

The Board tabled a proposed administrative or service fee for properties in Captain’s Cove that are rented out short-term. The fees, calculated at $65 per hour and 14 hours per lot for staff to administer, equates to an annual fee of $910.

The motion to table had three yes votes and two no votes, and two abstentions.

The proposed fee has been postponed for consideration at a future meeting, probably in an amount less than $910 per year.

A fee for services rendered is permitted in CCGYC governing documents and the Virginia Property Owners’ Association Act.

Work Group agrees directory will continue

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he Cove Directory work group met Aug. 22 and agreed that, despite some interest in no longer publishing a community directory, the directory will continue at least for another year.

New next year will be a PDF version in addition to the hard copy.

It will be available on request to those listed in the directory, as a way of not creating a security issue.

“We will be offering the opportunity to fill out your directory form either on-line or through a hard copy you can either pick up at reception or have emailed to you,” Senior General Manager Colby Phillips said in an email blast after the meeting. “These are not due until Feb. 1, so more information will come out as we get closer.”

She acknowledged that there have been complaints about inaccurate information in the directory, and the work group “ has volunteered to help the team with checking and double checking the information provided by the membership, so we can get the directory as accurate as possible with hopefully little to no mistakes.”

In addition, she said the working group together with the property management team will establish a directory email list. With submissions sent in by members this year containing email addresses, the PMT “will be able to just reach out ... in following years and confirm your information. We hope this will help those who do it each year from having to resubmit, but also to confirm no information has changed from the previous year,” she said. u

CAPTAIN’S COVE CURRENTS

September 2023 Ocean Pines PROGRESS 63

Five candidates running for two Board seats Dave Felt seeks ‘promotion’ from alternate to three-year director

By TOM STAUSS Publisher he complexion of the Captain’s Cove Golf and Yacht Club’s Board of Directors after this fall’s election is not going to be much different from the current Board.

That’s because there is only one three-year seat to be filled this year, along with the usual one-year alternate position.

That leaves six carry-over members who will be serving on the Board when election results are announced at the annual meeting of the association in November.

There are three candidates running to fill the three-year seat now occupied by George Finlayson. He was the alternate director when he was appointed to fill a vacancy cre-

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Cove directory From Page 49

Phillips said that the publisher of the Cove Directory, apparently having heard that the directory might be discontinued next year, “reached out to us and offered to waive the mailing fee, which was around a $3,000 to $4,000 cost. ... So, this was great news to hear prior to our meeting today.”

The ads in the directory are sold by the publisher and are used to pay for printing the hard copy.

CCGYC incurs no expense in the printing and mailing of the publication, Willingness to waive the mailing fee suggests that the directory has been a profitable activity for the publisher over the years, even with the mailing expense incurred by the publisher.

The publisher is Chip Bertino, an Ocean Pines resident and president of the Worcester County Commissioners.

Republican party’s monthly meeting

The Accomack Republican Party invites the public to attend its onthly meeting on Sept 18, beginning at 7 p.m. at the Sage Diner in Onley.

For more information, contact Chairman Sam Sellard at 757-7098252.

ated by Roger Holland’s resignation. Finlayson was not interested in running for an elected term.

The candidates for a three-year term include David Felt, the current Board alternate director; Rosemary Hall, a former director seeking a comeback; and newcomer Richard Painter.

Hall and Painter are also running for the one-year alternate seat, along with George Guthridge and David Kieffer. The latter also is a former director.

Ballots and candidate biographical information were scheduled to be mailed to all members on Aug. 25.

To avoid some of the confusion that occurred during last year’s election season among some CCGYC members, the Property Management Team decided not to send out proxies to CCGYC with the ballots and biographical information this year.

Instead, proxies will be mailed with the dues statement that will be mailed to members in early September.

That is the only change in the way this year’s election will be conducted, according to CCGYC secretary and director Pat Pelino.

Ballots will be collected and counted by the association’s accounting firm, Rosen, Saperstein and Friedlander, with results announced during the annual meeting.

A candidate’s forum is scheduled for Tuesday, Aug. 29, at 4 p.m. in the banquet room of the Marina Club.

Yet to be determined is whether CCG Note, the Cove’s declarant/ developer, will cast ballots in this year’s election.

It will depend on whether a working group of Operating Committee members and senior members of the Property Management

LETTERS

It’s time to take off the gloves and go bare-knuckles. I have had it. Comparing the Town of Chincoteague to Captain’s Cove?

You forgot some important points, Mark.

First, Chincoteague has fair elections. The Mayor doesn’t get three votes for each property he owns.

Chincoteague has a true appeals process for building and zoning issues. Chincoteague has a residency requirement for their Town Manager. Chincoteague hired a highly experienced engineer as their Town Manager.

True, they don’t have pools, but they have a huge harbor, several real parks, five boat ramps, and an entire network of state roads for which they receive a lot of VDOT money. For a house comparable to my house on Rudder Court, Chincoteague town taxes would be less than $1,000.

Mark wants you to believe that Captain’s Cove is managed like a town. He failed to mention that in a town, the man who owns 100 lots only gets to vote ONCE. Let’s try that in the next Cove election. Each owner gets one vote regardless of how many lots he owns.

Chuck Ward, Captain’s Cove Mark Majerus’s reply to Chuck Ward: You seemed to have missed the point of the discussion.

The topic was the Association’s staffing and how many elements of it are similar to a town. Chincoteague is a great comparison, due to its proximity to the Cove. It has the same swell in population in the summer season, and it’s about twice the full-time

Team, formed to offer advice to CCG Note on how to allocate CCG Note votes in the election, actually comes up with a slate of candidates it can recommend.

“If the working group doesn’t come up with candidates it recommends, then I would think that CCG Note would probably decide not to vote the properties that they own through Note,” CCGYC Director Tim Hearn said recently.

That would mean that 1,200 or so lots controlled by the developer would not be a factor in the election, leaving Class A members as the only participants and thus able to affect the outcome of the vote, something that hasn’t occurred in Captain’s Cove for more than ten years.

The Cove Currents has been told by an informed source that the working group is leaning against making such a recommendation.

residential population.

We have a Board of Directors, they have a Town Council. We have a Senior General Manager, they have a Town Administrator. We have a security team, they have a police force. We have a small marina and boat ramp, they have a commercial harbor and several ramps. We have 27 miles of road that we maintain without any outside support. The town gets federal, state, county and local funding from taxes, grants, etc. to maintain roads and other public projects.

We have an Environmental Control Committee, they have a Building Department. We have a Controller, they have a Finance Director. We have an accounting department and they have a business office. We also have a restaurant, grill, three pools and a nine-hole golf course that must be staffed, maintained and operated.

This staffing comparison was the point. Although we are not an incorporated town, we have numerous staffing similarities and responsibilities. And we have half the number of full-time staff as the town.

This was not about elections or taxes.

Obviously, a property owners association has its own governing documents. For the past 50 years, our documents have granted the Declarant (developer) a 3-to-1 vote option. This was modified in the 2012 Settlement agreement such that the 3-to1 may only be used when the Association is operating at a loss.

This makes sense as the Declarant has invested millions of dollars in the development and needs to be able to exercise some control over events when necessary.

64 Ocean Pines PROGRESS September 2023

CAPTAIN’S COVE CURRENTS