last revised on August 5, 2020

corrections, pertaining to the August 5, 2020 revision

Where I quoted Shecter referencing the facilities committee as having eight members, in fact, the facilities committee has four members, including Margie Cyr, Tristan Kruger, Geoffrey Sella and the chair, Alex Sella.

Where I reported that the one incident of hostilities between Throop (i.e., pronounced troop) and Shecter was over an e-mail message Throop sent Shecter, complaining about the noise from Shecter's property, in fact the conflict was over an e-mail message that Throop sent to Shecter, asking Shecter to file an emergency building permit that Shecter had failed to do prior to working on this property. It remains true that in Shecter's response, Shecter demanded that Throop stop "harassing" him. [3]

Preamble

• Delaware governor John Carney orders all bars operating in the ocean resort towns to close ahead of the July 4 weekend;
• the number of derelict accounts, who have yet to paid their assessment, has doubled when compared to the same point in time one year ago;
• the push to erect a third dog station in Middlesex Beach stalls as does the rental tax;
• Shecter's push to purchase additional mobi mats falls short;
• board member, Steve Larsen, pleads for order and for board members to "just get along" as the board becomes increasingly dysfunctional;
• the board votes to disband the COVID-19 task force, once chaired by Mike O'Mara;
• Middlesex Beach has a new board member to replace Mike O'Mara, who quit the board and the COVID-19 task force in June; and
• a look at the mail bag.

My name is Greg Pichler with the MXB Wire and you are watching my monthly update for August 4, 2020.

Delaware governor John Carney orders all bars operating in the ocean resort towns to close ahead of the July 4 weekend

On Tuesday, June 30, 2020 after a spike in new coronavirus cases Delaware governor John Carney ordered all bars in the resort towns to close ahead of the July 4th weekend. Carney also deferred entering phase 3 reopening plans indefinitely.

Carney says, “Too many people have sacrificed too much for us to see another really dramatic uptick. From 18 to about 30 is where most of these new positive cases are occurring and they are mostly occurring at zip codes in the beach area.”

Delaware health director, Dr. Karyl Rattay says, “We have also since that time learned of several lifeguards as well as a number of restaurant and bar employees, who have become positive."

Delaware remains in phase 2 re-opening. Sit down resaurant service is open at this time.

analysis

As a home owners association we really dodged a bullet in this pandemic. Our beach had to close to comply with orders from the governor for approximately two months.

Since Middlesex Beach beach reopened on May 16, 2020 there has only been one reported case of coronavirus in the community and that case involved a staff member.

We have to continue to be deligent in observation of the directives set down by the board as to the use of common walkways. All common walkways to the beach are unidirectional. If you observe someone on the walkway who is not wearing a mask it is incumbent of you to remind the individual to wear one. That includes children.

We are reportedly three months away from a vaccine.

the number of derelict accounts has doubled when compared to the same point in time one year ago

In his report on Budget/Finance, Steve Larsen reported that that HOA is currently operating at 57,000.00 dollars in derelict accounts, approximately 25,000.00 more than at the end of July of 2019. Whereas the budget for revenues is 570,000.00 the actual revenue collected is 490,000.00 or thereabouts. If the numbers do not dramatically improve over the course of the next two weeks, the HOA will be operating at double the amount of derelict accounts as compared to the same time last year.

Larsen also reported that the community is operating under budget in a number of expense areas. The HOA is under budget in the expense area, Beach Patrol, by approximately 15,000.00. The HOA is under budget in the expense area, community patrol, by approximately 12,000.00.

Geoff Sella stated that the comparison of the size of derelict account to last year may be misleading as the HOA had issues with the invoicing in 2019 and that a large number of accounts were settled in July of 2019.

Ellen Throop stated the delay in the start of season due to the coronavirus pandemic is likely responsible for the fact that both the beach patrol and the community patrol are operating under budget.

analysis

The short fall in revenue over the course of the pandemic is predictable. If you divide the amount of derilict accounts by the amount of the assessment you arrive at 24 residential owners who have failed to pay the assessment. Therefore, approximately 10% of the community is delinquent in paying their assessment. That figures closely follows the current national unemployment rate of 13.7%. The fallout from the coronavirus pandemic is primarily responsible for the delinquency in payments. Unfortunately, we should not expect the shortfall in revenue to improve until the economy returns to normal, which a number of economists forecast will occur no sooner than the third quarter of 2021.

the push to erect a third dog station in Middlesex Beach stalls as does the rental tax

The board discussed the progress of erecting a third dog station in the community. The home owners association currently has two dog stations, both located on the pine side of the community.

Marty Shecter, who is spearheading the effort to erect dog stations in Middlesex Beach, reported that there has been no progress in erecting the planned third dog station.

analysis

Shecter is reportedly planning to erect the third dog station on the ocean side of the community to compliment the two on the pine side, however, he has been getting push back from the residents there. I suggest Shecter proceed without board approval and erect the station on Middlesex Beach property on the property of fellow board member, Tristan Kruger, at 41 Dune Road as far away from 20 Dune Road as possible.

The effort to bring the matter of the rental tax to the community for a vote also appears to have stalled. Despite the passage of a motion on April 13, 2020 to engage the staff lawyer to help the proponents of a rental tax draft a proxy for a covenant change, there has no activity on the subject since.

Apparently, home owners association president, Margie Cyr, seeing that the proponents of a rental tax did not have the votes to compel owners, who lease their property, to report their gross rental income and pay an 8% tax on their gross earnings, decided to table the matter for the balance of the tenure of the current board. When Mike O'Mara held a position on the board, the proponents of an 8% rental tax had four votes. On O'Mara's departure the proponents now only have three votes, namely Marty Shecter, Nancy Glascow and Steve Larsen. The proponents of the rental tax need five votes to bring the matter before the community for a vote.

Shecter's motion to purchase additional mobi mats falls short

The board discussed a proposal put forward by Marty Shecter to purchase two additional, one-hundred foot Mobi-Mats.

Marty Shecter reported he had negotiated a price on additional Mobi-Mats with a vendor and advocated proceeding with the purchase of additional Mobi-Mats. Currently, the community has one MobiMat, located on the common walkway adjacent to Addy Road. The Mobi-Mat and the clay base beneath it frequently gets washed out by storms and after which the mat needs to be re-installed.

Shecter reported that the members of the community are solidly in favor of purchasing the additional Mobi-Mats. Shecter stated that the current restrictions on the walkways, due to the coronavirus pandemic, the fact that the walkways are unidirectional, coupled with the distance from the walkways to the ocean (e.g., reportedly an additional 120 feet), make access the beach difficult, especially for residents with mobility challenges.

Shecter did not volunteer the cost of two additional MobiMats on an ongoing basis, however, he did state that the expense of the mats do not necessarily have to be paid for out the general operating budget but rather the expense can be absorbed out of the retained earnings account. The retained earnings account is typically used to build the reserve fund for beach replenishment.

Alex Sella weighed in saying that the real cost of the Mobi-Mats does not stop with the purchase price. Sella reported that the Mobi-Mats require considerable labor to maintain and that in light of the additional maintenance cost and the fact that the mats need to be replace every five years, the real cost of the Mobi-Mats to the community add up to an annual cost of 200.00 dollars per resident. Sella reported that over the course of the last topical storm that hit the area on Thursday, July 10, 2020, the clay underneath the Mobi-Mat had eroded, requiring staff and volunteers to lift the mats, resurface the area and reinstall the mats, all of which required over 12 man hours for this one incident.

Geoff Sella weighed in saying that he was in favor of MobiMats, but said he would vote against any motion to purchase additional MobiMats. Sella stated that he has seen selective communication that Shecter sent to a number of community members along with their responses. Sella stated his main objection to the purchase of additional MobiMats had to do with process. Sella said that prior to purchasing the mats, the board needs to engage the community in dialogue to determine if the community wants the mats and is willing to paid the ongoing expense they entail. In effect Sella pointed out that Shecter is only familiar with the views of the community members he is in communication with.

Sella stated that a number of members are very concerned with the amount of the assessment. Sella further stated that the 2020-2021 budget for Mobi-Mats has already been decided during the budget discussions in May of 2020 and at that time the budget did not allocate any monies for additional Mobi-Mats. Sella stated (i) in light of the fact that a number of community members have said they cannot afford the assessment as is and (ii) in light of the fact that the purchase of the additional MobiMats will have a substantially impact on the operating budget, the board should not move forward without having a dialogue with the community. Sella further stated that paying for the MobiMats out of the retained earnings account was "fiscally irresponsible".

Margie Cyr weighed in, stating she was very concerns as to why the board is having the discussion at this point in the fiscal year. Cyr pointed out that the board had discussions on MobiMats in the budget discussions for the 2020-2021 fiscal year. Cyr stated that if the board wishes to consider the expense in light of a new fiscal budget it can do so, or it can address the expense of the MobiMats later in the fiscal year when the community's fiscal situation is better known.

At one point in the discussion Shecter and Alex Sella engaged each other in an exchange. Shecter stated that the problem with the facilities committee is that of the eight members on the committee "only one individual actually seems to be working," referring to Alex Sella. After which Alex Sella took great exception to Shecter's words, calling out Shecter's statement as 'derogatory'. In fact, the facilities committee has four members, including Margie Cyr, Tristan Kruger, Geoffrey Sella and the chair, Alex Sella.

Geoff Sella abruptly interrupted the exchange that ensued between Shecter and his son, Alex Sella, saying that Shecter and he, Geoff Sella, have an issue to work out and that Shecter and Alex have an issue to work out. However, Sella asked Shecter to focus on the discussions surround the purchase of the additional MobiMats, while putting aside the open animus between the parties.

Ellen Throop weighed in stating that the board has engaged in the discussions surrounding MobiMats in the past and that nothing significant has changed in the budget to revisit the MobiMats discussion again. Throop advised that the MobiMat issue was one that the incoming board can revisit, after the elections scheduled for September 5, 2020. Throop further stated that the purpose of the reserve budget should be limited to recovery efforts in the wake of a storm and any other unforeseen event, like snow removal for example.

At one point Geoff Sella voiced a concern that a board member, in this case Shecter, acted unilaterally to negotiate a contract with a vendor circumventing the board. Sella's statement drew a swift rebuff by Larsen for referring to Shecter in the third person.

Throop advanced Sella's concern, stating the legal opinion that all board members, including Shecter, have the authority to enter into contracts on behalf of the association. In the event that a board member enters a contract with a vendor such a contract would be binding regardless of the whether the board member acted with the authority of the board or not.

A visibly shaken and frustrated Shecter abruptly closed the discussion on the matter of additional Mobi-Mats and moved to purchase the additional Mobi-Mats with no further dialogue with the membership. Steve seconded Shecter's motion. Marty Shecter, Nancy Glascow, and Steve Larsen voted in favor of Shecter's motion. Jeff Sella, Alex Sella, Ellen Throop, Margie Cyr, and Tristan Kruger voted in opposition to Shecter's motion. The motion to buy the additional Mobi-Mats failed.

analysis

I agree with Margie Cyr's comments. The matter of the purchase of additional MobiMats should not have been a topic of discussion on the agenda. The 2020-2021 budget has been set down as of May, 2020. The budget included support for one and only one MobiMat. The discussion, which lasted thirty minutes, deteriorated the further it went on. It is exactly this behavior on the part of Shecter, in this case on the event a single board member exercises authority circumventing the board's authority, and negotiates prices and contracts on behalf of the association, that exacerbates dysfunction amongst board members. It is also exactly this behavior that causes these meetings to stretch out over six-and-a-half hours.

board member, Steve Larsen, pleads for order and for board members to "just get along" as the board becomes increasingly dysfunctional

Over the course of the executive session Steve Larsen reportedly expressed concerns about the ongoing hostilities between Alex Sella and Marty Shecter, and the ongoing hostilities between Geoff Sella and Marty Shecter, and the ongoing hostilities between Ellen Throop and Marty Shecter, not just the hostilities expressed openly on the conference call, but also over the course of the last two years since Marty Shecter and Nancy Glascow were elected to the board. Apparently, board member, Marty Shecter, is at the center of these ongoing hostilities.

Larsen pleaded with the board members for order and asked the members to make the effort to interact in a more cordial manner. Unfortunately, Larsen's words had little effect as the pugilists, of which Steve Larsen emerged as one himself, were right back at each other's throats no less than one hour after his impassioned speech.

At one point in the discussions that followed Marty Shecter reportedly admonished Alex Sella for not apologizing in public for a matter he apologized to Shecter for in private.

At another point in the discussions that followed Marty Shecter recited a past event involving a conflict with Ellen Throop. While Shecter was working on his property, Ellen Throop reportedly wrote Shecter an e-mail, asking Shecter to file an emergency building permit. In a carefully worded response to Throop, Shecter admonished Throop for "harassing" him. Apparently, Shecter believes as a number of past board had believed that he is above the rules that you and I have to abide by.

analysis

An inside source reported that this particular board was the most dysfunctional group of individuals he/she has ever worked with. The source further reported that if the meetings, which typically run six-and-a-half hours, continue to be as non-productive as the one held on Saturday, July 18, 2020, that he/she would quit serving on the board.

the board votes to disband the COVID-19 task force;

The board discussed whether to disband the COVID-19 task force as the board has been managing the response to the pandemic since the end of June 2020.

Margie Cyr moved to disband the COVID-19 task force and to send each member an e-mail, thanking them for their service. Alex Sella seconded Cyr's motion. All board members, except Marty Shecter, voted in favor of the motion. Marty Shecter abstains.

Middlesex Beach has a new board member

The board voted for Carol Paul to fill the vacancy left by Mike O'Mara's departure. Paul is to assume O'Mara's term which is schedule to run until September, 2021.

Paul, whose family owns three properties in Middlesex Beach, has reportedly never run for a board position, nor has she ever served on the board.

analysis

In the scenario where a board member quits, the board could look back at the last election that the departing board member participated in and by default select the runner up. Alternatively, the board could also leave that decision of who to fill the board position with to the next election currently scheduled for September 5, 2020. But, no. That is not how this board acted. This board clearly believes it knows better than the community does on who would be the best choice to occupy the vacant board position.

Mail Bag

Scot Van Ness

In response to the monthly update for April 30, 2020 on May 5, 2020 Scot Van Ness at 7 Bayberry Road writes in saying:

Editor's Response

You can read Scot's entire comment online in the discussion section of the article, MXB Wire, Monthly Update, April 30, 2020.

Bill Gay

In response to a boardcast e-mail message, dated May 1, 2020 on May 3, 2020 Bill Gay at 113 Evergreen Road writes in saying:

Editor's Response

All the boardcast e-mail messages from the MXB Wire include a link to unsubscribe.

Watch for my next installment scheduled for Saturday, August 22, 2020 where I will rate the contributions of all four incumbent candidates in advance of the board elections, scheduled for Saturday, September 5, 2020.

The Property Manager's Report

The board discussed the permit associated with the property at 14 Dune Road. Eric Barry, Jr. owns the property at 14 Dune Road.

Margie Cyr stated that work at 14 Dune Road was complete, however, the scope of the work went beyond the permit. MXB regards the permit as still open due to the fact that the owners never schedule an inspection to be performed. The permit was drawn in 2016 for the expansion of the first floor, a deposit was made for 2,000.00. Cyr reported that at the end of 2016 14 Dune Road applied for an extension. To date 14 Dune Road has never reported the work as complete and has never invited the building committee to perform an inspection.

CAS, the property management firm, sent the owners two certified letters. Both letters were returned unopened.

Steve Larsen stated he was not comfortable closing out the permit without the opportunity to inspect the property. Larsen further stated that an inspection is necessary to determine whether the modifications to the property are in compliance with the covenants.

Margie Cyr moved to fine 14 Dune Road 2,000.00, effectively seizing the bond as punitive damages, and moved to send 14 Dune Road a letter, notifying the owners that the property at 14 Dune Road is no longer in good standing. The letter would go on to state that if 14 Dune Road fails to rectify the situation in two weeks from the date on the letter, the property’s 2020 beach passes and parking passes would be revoked. Alex seconded the motion.

All eight board members voted in favor of the motion.

The board next discussed the permit associated with the property at 29 Addy Road. Jamie Pumpelly owns the property at 29 Addy Road.

Geoff Sella reported that 29 Addy Road had performed work beyond the scope of the permit. The building committee and the owners had come to an agreement that 29 Addy Road would be fined 200.00 dollars.

Geoff Sella recommended the board move to refund the deposit on the permit on 29 Addy Road, minus 200.00 in fines. Ellen Throop so moved. Margie Cyr seconded the motion.

All eight board members voted in favor of the motion.

The board next discussed the permit associated with the property at 18 Dune Road. Tom Robinson and Betty Robinson own the property at 18 Dune Road.

Geoff Sella recommended the board move to refund the deposit on the permit on 18 Dune Road. Ellen Cyr so moved. Marty Shecter seconded.

All eight board members voted in favor of the motion.

President's Report

Nancy Glascow reported that Susana O’Meara passed away.

Committee Reports

In his report for the building committee, Geoff Sella reported that he received no complaints regarding construction work at 1 Dune Road. Tim Switzer and Jayne Switzer own the property at 1 Dune Road.

Geoff Sella also reported that he received a complaint regarding construction work at 11 Bayberry Road. Richard Youniss owns the property at 11 Bayberry Road.

References