(Aug. 3, 2017) With Director Doug Parks absent from the meeting, the Ocean Pines Association Board of Directors discussed the following items during a public meeting in the community center last Friday:
Assessments
Board President Dave Stevens said Ocean Pines attorneys recouped more than $80,000 in unpaid assessments since Jan. 1.
Interim General Manager Brett Hill said the money was collected through letters and notifications of court actions. He said attorneys filed more than 130 judgments, “many of them going back as far as 10 years.”
Reserve study
Director Pat Supik said a working group had been formed to analyze a reserve study conducted by Design Management Associates Inc. well over a year ago.
She said the group would include herself, Stevens, Director Tom Herrick, CFO John Viola, Assistant Treasurer Gene Ringsdorf, former director Marty Clarke, Budget and Finance Committee Chairman John O’Connor and Ted Moroney.
“This is a much needed effort to finally bring some reason and sense and legitimacy to the amount of reserves that Ocean Pines carries,” Supik said.
She said the group already met twice and Stevens had contacted Design Management Associates President Douglas Green to arrange a future meeting.
“Our goal is to recommend to the board of directors a short and long-term funding plan for the Ocean Pines reserves, including amounts and timing of the funding,” Supik said. “The reserves will support the maintenance, renovation and replacement of our existing assets, both small and large.”
She said the updated study could also help establish a new capital improvement plan.
Audit, take one
Supik said a fiscal year 2017 audit came back with an unqualified opinion, which is the highest level of assurance.
She admitted the audit was not a “deep dive” and said a more in-depth report was requested, but had not yet been received.
Supik added Ocean Pines posted year-ending losses of $369,539.
“That loss will need to be funded … either from the reserves or, from what would be my recommendation as treasurer, to fund it in future assessments,” she said.
There was some question as to when and how the new auditing firm, SC&H Group Inc. from Ellicott City, was approved by the board. According to meeting minutes, the board voted unanimously, 6-0, during a special meeting on Feb. 10. One director, Slobodan Trendic, was absent.
Supik confirmed in an email this week that Hill has a prior working relationship with the firm.
Bulkheads
The board awarded a one-year contract, with options for two additional years, to Hi-Tide Marine Construction from Ocean City for bulkhead replacement. Hill had proposed a three-year contract.
He said the company was the lowest bidder out of four that responded to a request for proposals. The search was conducted by Davis, Bowen & Friedel Inc.
Trendic estimated a three-year contract could have been worth about $2.5 million. He asked for the contract to include a performance bond.
The directors consented and unanimously approved a one-year contract.
Audit, take two
Trendic introduced a motion to contract an in-depth financial audit “with forensic auditing skills to conduct detailed examination of the association’s records and point of sales systems related to the food and beverage venues and other operations areas if the initial audit work discovers it to necessary.”
The directors voted 5-1 against the motion.
Trendic said he initially recommended a thorough audit several months ago “because of specific events that transpired … and concerns expressed by certain employees.”
“We all know over the past few months what was discussed in closed sessions and we need to be reminded of some of the remarks that were made about some improper behaviors,” Trendic said. “You all recall the termination of a number of people from the yacht club and [the] acting general manager referring to numbers that were pretty concerning to me.
“This is about doing due diligence, especially with regard to food and beverage losing so much money,” he added. “For us not to proceed with a forensic audit with this part of the operation is basically to ignore what we’ve been observing.”
He joked the audit would likely not “cost more than a food truck.”
Director Tom Herrick suggested the board wait for the results of a “deep dive” audit already being performed by SC&H Group Inc.
Director Cheryl Jacobs agreed, but added that point of sales systems should not be disposed of until that audit was finished and the results were received.
Hill assured the other directors “nothing has been disposed of and, for other reasons, that equipment is not going anywhere.”
Supik added that forensic audits are were generally conducted “to accumulate information for a criminal trial.”
“I don’t know that we’re going in that area yet,” she said.
Road striping
The board unanimously approved a motion, by Tom Herrick, to issue a request for proposals for street line painting for Ocean Parkway, Cathell Road and Yacht Club Drive.
Herrick said the board approved a contract for street-line painting in spring 2016, but the current striping was insufficient and difficult to see.
Accounting transparency
With one, relatively minor tweak, the board voted unanimously, 6-0, to “set a policy for transparency in the accounting records of the Ocean Pines Association.”
Hill introduced the motion and said, essentially, employees were receiving one level of information in financial reports and the board was getting a watered-down version with far less information. He said it was “like pulling teeth” for him to get the detailed reports, even as general manager.
The wording was changed slightly from “set a policy” to “direct staff to make available” and approved.
Social media policy
The directors also voted unanimously to adopt a new social media policy, which was apparently drafted by Ocean Pines attorney Jeremy Tucker.
Jacobs said the policy was overdue.
Trendic said he was concerned about whether the policy included the right to edit content, specifically on the official Ocean Pines forum. He read over the language and found no mention of editing.
The policy includes the following:
“The Board of Directors and the Association’s General Manager maintains the right to do any of the following any time, with or without prior notice:
• restrict, suspend, or terminate your access to all or any part of our services;
• change, suspend, or discontinue all or any part of our services;
• refuse, move, or remove any Content;
• refuse to register any user name that may be deemed offensive’;
• establish general practices, fees and policies concerning the Message Board and the services we provide.”
Appointments
Three committee appointments were unanimously approved.
Lisa Schwartz was named chairwoman of the architectural review committee, Harold Keiling will join the budget and finance committee and Larry Bohanan will join the clubs committee.
Assessments
Board President Dave Stevens said Ocean Pines attorneys recouped more than $80,000 in unpaid assessments since Jan. 1.
Interim General Manager Brett Hill said the money was collected through letters and notifications of court actions. He said attorneys filed more than 130 judgments, “many of them going back as far as 10 years.”
Reserve study
Director Pat Supik said a working group had been formed to analyze a reserve study conducted by Design Management Associates Inc. well over a year ago.
She said the group would include herself, Stevens, Director Tom Herrick, CFO John Viola, Assistant Treasurer Gene Ringsdorf, former director Marty Clarke, Budget and Finance Committee Chairman John O’Connor and Ted Moroney.
“This is a much needed effort to finally bring some reason and sense and legitimacy to the amount of reserves that Ocean Pines carries,” Supik said.
She said the group already met twice and Stevens had contacted Design Management Associates President Douglas Green to arrange a future meeting.
“Our goal is to recommend to the board of directors a short and long-term funding plan for the Ocean Pines reserves, including amounts and timing of the funding,” Supik said. “The reserves will support the maintenance, renovation and replacement of our existing assets, both small and large.”
She said the updated study could also help establish a new capital improvement plan.
Audit, take one
Supik said a fiscal year 2017 audit came back with an unqualified opinion, which is the highest level of assurance.
She admitted the audit was not a “deep dive” and said a more in-depth report was requested, but had not yet been received.
Supik added Ocean Pines posted year-ending losses of $369,539.
“That loss will need to be funded … either from the reserves or, from what would be my recommendation as treasurer, to fund it in future assessments,” she said.
There was some question as to when and how the new auditing firm, SC&H Group Inc. from Ellicott City, was approved by the board. According to meeting minutes, the board voted unanimously, 6-0, during a special meeting on Feb. 10. One director, Slobodan Trendic, was absent.
Supik confirmed in an email this week that Hill has a prior working relationship with the firm.
Bulkheads
The board awarded a one-year contract, with options for two additional years, to Hi-Tide Marine Construction from Ocean City for bulkhead replacement. Hill had proposed a three-year contract.
He said the company was the lowest bidder out of four that responded to a request for proposals. The search was conducted by Davis, Bowen & Friedel Inc.
Trendic estimated a three-year contract could have been worth about $2.5 million. He asked for the contract to include a performance bond.
The directors consented and unanimously approved a one-year contract.
Audit, take two
Trendic introduced a motion to contract an in-depth financial audit “with forensic auditing skills to conduct detailed examination of the association’s records and point of sales systems related to the food and beverage venues and other operations areas if the initial audit work discovers it to necessary.”
The directors voted 5-1 against the motion.
Trendic said he initially recommended a thorough audit several months ago “because of specific events that transpired … and concerns expressed by certain employees.”
“We all know over the past few months what was discussed in closed sessions and we need to be reminded of some of the remarks that were made about some improper behaviors,” Trendic said. “You all recall the termination of a number of people from the yacht club and [the] acting general manager referring to numbers that were pretty concerning to me.
“This is about doing due diligence, especially with regard to food and beverage losing so much money,” he added. “For us not to proceed with a forensic audit with this part of the operation is basically to ignore what we’ve been observing.”
He joked the audit would likely not “cost more than a food truck.”
Director Tom Herrick suggested the board wait for the results of a “deep dive” audit already being performed by SC&H Group Inc.
Director Cheryl Jacobs agreed, but added that point of sales systems should not be disposed of until that audit was finished and the results were received.
Hill assured the other directors “nothing has been disposed of and, for other reasons, that equipment is not going anywhere.”
Supik added that forensic audits are were generally conducted “to accumulate information for a criminal trial.”
“I don’t know that we’re going in that area yet,” she said.
Road striping
The board unanimously approved a motion, by Tom Herrick, to issue a request for proposals for street line painting for Ocean Parkway, Cathell Road and Yacht Club Drive.
Herrick said the board approved a contract for street-line painting in spring 2016, but the current striping was insufficient and difficult to see.
Accounting transparency
With one, relatively minor tweak, the board voted unanimously, 6-0, to “set a policy for transparency in the accounting records of the Ocean Pines Association.”
Hill introduced the motion and said, essentially, employees were receiving one level of information in financial reports and the board was getting a watered-down version with far less information. He said it was “like pulling teeth” for him to get the detailed reports, even as general manager.
The wording was changed slightly from “set a policy” to “direct staff to make available” and approved.
Social media policy
The directors also voted unanimously to adopt a new social media policy, which was apparently drafted by Ocean Pines attorney Jeremy Tucker.
Jacobs said the policy was overdue.
Trendic said he was concerned about whether the policy included the right to edit content, specifically on the official Ocean Pines forum. He read over the language and found no mention of editing.
The policy includes the following:
“The Board of Directors and the Association’s General Manager maintains the right to do any of the following any time, with or without prior notice:
• restrict, suspend, or terminate your access to all or any part of our services;
• change, suspend, or discontinue all or any part of our services;
• refuse, move, or remove any Content;
• refuse to register any user name that may be deemed offensive’;
• establish general practices, fees and policies concerning the Message Board and the services we provide.”
Appointments
Three committee appointments were unanimously approved.
Lisa Schwartz was named chairwoman of the architectural review committee, Harold Keiling will join the budget and finance committee and Larry Bohanan will join the clubs committee.