By Greg Ellison
(Aug. 12, 2021) The Ocean Pines Bylaws and Resolutions Committee considered several language changes to association governing documents during its meeting on Friday.
The first matter was related to the percentage of votes required to pass a referendum.
Committee chairman Jim Trummel said the bylaws work group examining potential updates to the rules found a conflict in section 4.08C of the bylaws regarding the referendum process.
Current bylaws language requires only that a majority of the votes cast be in favor of the referendum, regardless of how many people vote.
“Any proposal presented in a referendum represents a majority of affirmative votes for total votes cast in order to become effective.”
Trummel said the work group recommended updating requirements to be 25 percent of the total number of votes available to be cast.
The proposed change in the bylaws, however, would require some percentage of the total number of votes to specify that 25 percent, or some percent, of the total number of eligible voters, not just the ballots are recorded.
Committee member Keith Kaiser said referendums provide a procedure for putting a measure proposed by a legislative body or the community to a vote.
“It’s been studied by a lot of people,” he said. “Is the lack of minimum voter participation required for Ocean Pines referendums a problem that needs a solution?”
Kaiser said Maryland law says a referendum can be initiated through a petition drive signed by 10 percent of residents’ casting votes in prior elections.
“The petition is the first step in determining the level of community interest in an issue,” he said. “It’s kind of a standard practice to put a requirement on petitions to make sure you have a reasonable level of public support.”
Maryland is among a majority of states that do not conduct referendums outside the normal election cycle.
“It goes on the next scheduled ballot,” he said. “It doesn’t come out as a question all by itself.”
Kaiser said some states include a minimum vote count to represent a percentage of votes needed to approve a referendum.
On average nationally, 40 percent of eligible votes have to be cast on a specific referendum issue to be counted and validated.
“We average 40 percent voter participation in elections,” he said.
Kaiser estimated that roughly 3,000 votes would total 40 percent of eligible Pines ballots.
“A majority vote could be very small resulting in a small minority of Ocean Pines owners driving very large changes,” he said.
Kaiser said voter turnout in Ocean Pines for stand-alone referendums has usually been strong.
“Because in Ocean Pines we allow standalone ballots that literally means a small percentage of people with limited interest could cast votes on it,” he said. “In the past, we have averaged 57 percent.”
Kaiser said statistically referendum questions draw on average 40 percent of eligible votes.
“It’s typically a serious question put before the people,” he said.
Kaiser recommended the committee consider establishing a threshold of 40 percent of total eligible votes to approve a referendum.
Trummel said the committees’ recommendation would be forwarded to the bylaws work group.
“We are obligated to go back to the work group with proposals,” he said.
Board liaison Camilla Rogers, who also serves on the bylaws work group, said the topic would be reviewed before the committee’s next scheduled meeting.
Committee members also revived discussions surrounding 3.01C and 5.02A, which concern the boards’ ability to suspend member’s eligibility to vote or use association-owned facilities if that property owner is not up to date on annual assessment fees or in violation of declarations of restrictions.
The committee suggested adding a reference to 5.13E that grants the board authority to suspend members deemed not in good standing.
“We have two references [in] bylaws and DRs,” he said. “5.13E is a summation of what’s in the DRs.”
Committee consensus sided with referencing the 5.13E section.
Other areas reviewed included bylaws section 6.06A, which outlines duties of the association president.
Proposed language additions for 6.06A include a passage stating the president is responsible for, “keeping all directors informed of all association issues in a timely manner.”
“Some people could say it’s implied that the president is supposed to do that, but this would make it clearly a duty,” Trummel said.
Kaiser said further clarity is needed.
“It’s just a fuzzy requirement in general,” he said. “It says, ‘all issues in a timely manner.’”
Kaiser also suggested changing, “all association issues,” to “critical issues.”
“All association issues … that could get pretty busy,” he said.
Committee member Lora Pangratz questioned what would qualify as critical issues.
“I think people are trying to the best of their ability,” she said.
Trummel said association presidential duties would include promptly apprising directors of breaking issues.
“If the other six members of the board are surprised by something, they need to address that with the president and get it straight right away,” he said. “They’ve got to make sure the people who need to know what’s going on know what’s going on.”
Trummel said committee recommendations would be forwarded to the bylaws work group for further examination.