My perspective at the time the two men and the dog approached.
#1, The distant observer could have found my activities suspicious. Not only had I tossed some material out of a hiding spot but I also placed a thick, dark 14 inch object there (a water bottle). I had also been "hanging around" for a good hour before then approached.
#2, I prefer to be an Ambassador for Geocaching rather than an antagonist, the smart ars, or confrontational with the citizens I encounter. IMO I would rather to have people understand that there is no harm being done, rather than walking away thinking, "Boy, he was sure a jerk."
#3, I had no reason not to believe that the man and his dog were in the park using the off leash area and the timing of everything just happened the way it did.
I also mentioned in my initial post that I recognized the guy and his dog from my part-time job in the Pet supply store. When I met him that time in the store, he was in some kind of uniform and the dog had the same "official" vest on.
#4, I had a 9 mm pistol under my sweatshirt on my hip. I legally conceal carry. When I am in public with a concealed weapon I take a very non-confrontational stance with the public and any "officials" I encounter. It is my training to avoid making a situation worse than it needs to be and tip the scale into having to potentially use my weapon.
Again, back to rather being the Ambassador than the jerk.
Very well said. IMHO, you reacted very appropriately.