MAYOR AND CITY COUNCIL 

 

WORK SESSION 
Tuesday, April 9, 2013 – 1:00 P.M.      A Closed Session is scheduled from 11:00 A.M. – 1:00 P.M. to discuss legal, contractual and personnel  matters. 

AGENDA 
 

1.    2.    3.   

CALL TO ORDER  REPORT ON CLOSED SESSION – April 9, 2013 – 11:00 a.m. – 1:00 p.m.  COMMENTS FROM THE PUBLIC 
Any person who may wish to speak on a matter scheduled for discussion on the Work Session Agenda  may be heard during  Comments  from the  Public  for  a  period of  three  (3) minutes  or such  time  as may  be  deemed  appropriate  by  the  Council  President.   Anyone  wishing  to  be  heard  shall  state  their  name,  address and the Agenda item on which he or she wishes to speak.  

  4.                                      I.  Second Reading – Ordinance 2013‐07 to Amend Chapter 30 Entitled Environment (imposes  resident agent requirement as part of a plan for compliance for rental properties with noise  violations)  Presentation of FY 14 Financial Operating Plan by City Manager David Recor, ICMA‐CM  H.  Public Works Director Request to allocate funds for Humane Society Building Repairs   G.  Public Works Director Request to Fund AVL Hardware/Software for Bus Fleet  F.  Public Works Director Discussion of Terminating Transportation Discount Coupon Booklets   E.  Consideration of proposal to provide credit/debit card payment option for bus customers  presented by the Finance Administrator  D.  Transportation Superintendent Request to Purchase Bus Spare Parts   C.  City Engineer Bid Award Recommendation for Storage Area Network Appliances and Server  Equipment  B.  High Tide Music Festival Update and Request for use of the Inlet Lot presented by Tom Russell  and Ken MacDonald of Founders Entertainment  A.  Bid Opening – Transit Advertising  NEW BUSINESS 

      5.      ADJOURN  J. 

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 2. Report on Closed Session – Tuesday, April 9, 11:00 a.m. - 1:00 p.m. Legal, Contractual and Personnel Matters

NOTICE OF CLOSED SESSION OF MAYOR & CITY COUNCIL OF OCEAN CITY DATE AND TIME: PLACE: SUBJECT: VOTE: Tuesday, April 9, 2013 11:00 a.m. City Hall Legal, Contractual and Personnel Matters UNANIMOUS OTHER: FOR: AGAINST: ABSTAIN: ABSENT:

AUTHORITY: State Government Article: Section 10-508(a) Annotated Code of Maryland PURPOSES: 1. To discuss: (i) the appointment, employment, assignment, promotion, discipline, demotion, X compensation, removal, resignation or performance evaluation of appointees, employees or officials over whom it has jurisdiction; or (ii) any other personnel matter that affects one or more specific individuals; 2. To protect the privacy or reputation of individuals with respect to a matter that is not related to public business 3. To consider the acquisition of real property for the public purpose and matters directly related thereto; 4. Consider a matter that concerns the proposal for a business or industrial organization to locate, expand or locate in the state; 5. Consider the investment of public funds; 6. Consider the marketing of public securities; X 7. Consult with counsel to obtain legal advice; 8. Consult with staff, consultants or other individuals about pending or potential litigations; 9. Conduct collective bargaining negotiations or consider matters that relate to the negotiations; 10. Discuss public security if the public body determines that public discussion would constitute a risk to the public or public security, including; a) the deployment of fire and police services and staff; and b) the development and implementation of emergency plans 11. Prepare, administer or grade a scholastic, licensing or qualifying examination; 12. Conduct or discuss an investigative proceeding on actual or possible criminal conduct; 13. Comply with a specific constitutional, statutory or judicially imposed requirement that prevents public disclosures about a particular proceeding or matter; or 14. Before a contract is awarded or bids are opened, discuss a matter directly related to a negotiation strategy or the contents of a bid or proposal, if public discussion X or disclosure would adversely impact the ability of the public body to participate in the competitive bidding or proposal process

REPORT OF CLOSED SESSION OF THE MAYOR AND CITY COUNCIL OF OCEAN CITY Prior to this open session of the Mayor and City Council being held on Tuesday, April 9, 2013, a closed session was held on Tuesday, April 9, 2013 at 11:00 a.m. The following is a report of the closed session. 1. A statement of the time, place, and purpose of the closed session is attached. 2. A record of the vote of each member as to closing the session is attached. 3. A citation of the authority under the law for closing the session is attached. 4. (a) Topics of Discussion: Legal, Contractual and Personnel Matters (b) Persons present: Mayor Richard Meehan City Manager David Recor Council President Lloyd Martin Council Secretary Mary Knight Council Members Doug Cymek; Brent Ashley; Dennis Dare; Margaret Pillas and Joe Mitrecic City Solicitor Guy Ayres Acting Chief Captain Mike Colbert Lt. Elton Harmon Public Works Director Hal Adkins Convention Center Director Larry Noccolino Human Resource Director Wayne Evans Executive Office Associate Diana Chavis

Action(s) taken: Motion to close meeting:

Time closed:

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WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 3. COMMENTS FROM THE PUBLIC
Any person who may wish to speak on a matter scheduled for discussion on the Work Session Agenda may be heard during Comments from the Public for a period of three (3) minutes or such time as may be deemed appropriate by the Council President. Anyone wishing to be heard shall state their name, address and the subject on which he or she wishes to speak.

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS A. Bid Opening – Transit Advertising (Remand to Staff)

BIDDER LIST Request for Proposals (RFP) - Ocean City Transportation 5 Year Vehicle Advertising Proposals due to City Manager’s Office by 11 AM on April 9, 2013. Proposals recognized by Mayor & City Council on April 9, 2013 at 1 PM Work Session. VENDOR NAME Barron Marketing Communications Blue Line Media Burrelle's Luce Media Moniroing Services CBS Outdoor Cheseldine Management Consulting, LLC Choice Marketing and Design Clear Channel Outdoor Direct Media USA Fathum, Inc. Gateway Outdoor Advertising GoPlus1 Inkball Graphics Kastle Media Group, Inc. Lee Marketing and Advertising Group Prime Vendor Pure Advertsing LLC Sayin' It Loud, LLC Sgnify Tailored Marketing, Inc. Tendering Authority PROPOSAL RECEIVED (Y/N)

TOWN OF OCEAN CITY DEPARTMENT OF PUBLIC WORKS TRANSPORTATION DIVISION

REQUEST FOR PROPOSALS (RFP)
OCEAN CITY TRANSPORTATION 5 YR. VEHICLE ADVERTISING
The Mayor and City Council of Ocean City, Maryland is accepting proposals for a five (5) year Vehicle Advertising contract. Whereas, the Town owns and operates a public transit system, known as Ocean City Transportation (OCT) and will make available for use by the awarded Vendor interior and/or exterior forms of advertising space on approximately forty-seven (47) forty-foot (40’) Coastal Highway fixed-route public transit buses, two (2) origin-to-destination Para Transit mobility vans, one (1) Medical Appointment mobility van and twenty-four (24) Boardwalk Tram roof tops. The awarded Vendor will be responsible for all aspects of vehicle advertising, including, but not limited to, management of advertising inventory, sales, collections, remittance, production, installation, maintenance and removals. Additionally, the awarded Vendor will also be subject to terms, conditions and provisions set forth in the OCT 5 Yr. Vehicle Advertising RFP and Agreement. OCT 5 Yr. Vehicle Advertising RFP is available at: Public Works Administration Offices Department of Transportation 206 65th Street, Building E Ocean City, Maryland 21842 Contact person is: Mr. Brian Connor, Assistant Superintendent Ocean City Transportation Email: bconnor@oceancitymd.gov Office: 410-723-2174 Completed proposals must be submitted to the Office of the City Manager, located at 301 Baltimore Ave., Ocean City, Maryland 21842, by no later than 11:00 a.m. on Tuesday, April 9, 2013. Proposals will be opened at the City Council Work Session at 1:00 p.m. that same day. Respondents are welcome to attend but need not be present. Submission of proposals by certified Disadvantage Businesses Enterprises (DBE’s) are encouraged.

Town of Ocean City

Request for Proposals (RFP) Ocean City Transportation (OCT) 5 Year Vehicle Advertising Contract

Proposals Due:

Prior to 11:00 AM on Tuesday, April 9, 2013
Mayor and City Council C/O City Manager 301 Baltimore Avenue Ocean City, MD 21842

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RFP - OCT 5 Year Vehicle Advertising Contract
INFORMATION FOR VENDORS PROPOSALS will be received by the Mayor and City Council of Ocean City (herein called “Town”), at the Office of the City Manager, City Hall, 301 Baltimore Ave, Ocean City, Maryland during normal business hours prior to 11:00 AM, Tuesday, April 9, 2013 and then opened and read aloud at the Work Session that day. Each PROPOSAL must be submitted in a sealed enveloped, addressed to The Mayor and City Council of the Town of Ocean City, Maryland. Each sealed envelope containing a PROPOSAL must be plainly marked on the outside as: RFP – OCT 5 YEAR VEHICLE ADVERTISING CONTRACT And the envelope should bear on the outside the name of the RESPONDER, his address, and the name of the project for which the RESPONSE is submitted. If forwarded by mail, the sealed envelope containing the RESPONSE must be enclosed in another envelope addressed to the Town of Ocean City, City Manager’s Office, P.O. Box 158, Ocean City, Maryland 21843. PROPOSALS PROPOSALS shall be comprised of the following documents: AGREEMENT; QUALIFICATIONS; FEDERAL ASSURANCES AND CERTIFICATIONS; and ADDENDUMS / QUESTION & CLARIFICATIONS. A REVIEW COMMITTE will evaluate each PROPOSAL, assign points to each section based on scope, depth, completeness, accurateness and or competitiveness of VENDOR responses and will make final recommendation for AWARD. Failure by VENDOR to submit any portion of requested information may result in rejection of the PROPOSAL. Provisions of the SCOPE of the RFP are contained in INFORMATION FOR VENDORS and AGREEMENT sections. Information obtained from an officer, agent, or employee of the TOWN or any other person shall not affect the risks or obligations assumed by the VENDOR or relieve him from fulfilling any of the conditions of the AGREEMENT or other required sections. The TOWN shall provide to VENDOR prior to submission of PROPOSAL access to information that is pertinent to and or delineates or describes the scope of the RFP. After PROPOSALS have been submitted, the VENDOR shall not assert that there was a misunderstanding concerning the nature of the SCOPE OF WORK to be delivered/performed. The TOWN may make such investigations as it deems necessary to determine the ability of the VENDOR to perform the WORK and the VENDOR shall furnish to the TOWN all such information and data for this purpose as the TOWN may request.

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RFP - OCT 5 Year Vehicle Advertising Contract

INFORMATION FOR VENDORS The TOWN reserves the right to reject any PROPOSAL if the evidence submitted by, or investigation of, such VENDOR fails to satisfy the TOWN that such VENDOR is properly qualified to carry out the obligations of the AGREEMENT and to complete the WORK contemplated therein. Conditional offers will not be accepted. The TOWN may waive any informalities or minor defects or reject any and all PROPOSALS. Any PROPOSAL may be withdrawn prior to the above scheduled time for the opening of PROPOSALS or authorized postponement thereof. Any PROPOSAL received after the time and date specified shall not be considered. No VENDOR may withdraw a PROPOSAL within sixty (60) days after the actual date of the opening thereof. Should there be reasons why the AGREEMENT cannot be awarded within the specified period, the time may be extended by the TOWN. It is the intent of the TOWN to award the AGREEMENT within sixty (60) days of the actual opening. PROPOSAL INSTRUCTIONS & REQUIREMENTS Part I: AGREEMENT (45 points) VENDOR is required to complete the AGREEMENT, denoted as pages 6 thru 10, with VENDOR signature on page 10. As part of the AGREEMENT, VENDOR shall indicate compensation to the Town. All blank spaces for percentages (%) must be filled in, in ink or type written. Points shall be assigned to AGREEMENT based on completeness and competitiveness of VENDOR responses. Failure to submit the AGREEMENT may result in rejection of the PROPOSAL. Total points possible for PART I: AGREEMENT is forty-five (45) points. Part II: QUALIFICATIONS (45 points) In addition to the AGREEMENT, VENDOR is required to also submit information pertaining to QUALIFICATIONS. Responses shall provide evidence that: (1) VENDOR has been primarily engaged in the administration, management, solicitation, sale, production, installation and maintenance of Advertising on public transit buses or similar type vehicles for a minimum of three consecutive years. Points possible: twenty (20); (2) VENDOR has a record of good standing pertaining to the provision of the aforementioned services over the last three years. VENDOR shall be required to submit a minimum of three (3) references. Points possible: fifteen (15); (3) VENDOR is the “best qualified” to perform requested services and will provide the “best value” to the Town. Points possible: ten (10). Points shall be assigned to VENDOR QUALIFICATIONS based on scope, depth, and accurateness of VENDOR responses, as well as substantiated evidence of
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RFP - OCT 5 Year Vehicle Advertising Contract
VENDOR’S qualifications and experience. Failure by VENDOR to respond to any INFORMATION FOR VENDORS portion of requested information pertaining to VENDOR QUALIFICATIONS may result in rejection of the PROPOSAL. Total points possible for QUALIFICATIONS is forty five (45) points. Part III: FEDERAL ASSURANCES AND CERTIFICATIONS (10 points) In addition to the AGREEMENT and QUALIFICATIONS, VENDOR is also required to review, complete and sign FEDERAL ASSURANCES AND CERTIFICATIONS. These documents, found on pages 11 thru 43, are considered part of the PROPOSAL. Failure to complete, sign and submit required information may result in rejection of the PROPOSAL. Total possible points for FEDERAL ASSURANCES AND CERTIFICATIONS is ten (10) points. Part IV: ACKNOWLEDGEMNT OF QUESTIONS & CLAIFICATIONS (0 Points) In addition to the AGREEMENT, QUALIFICATIONS, FEDERAL ASSURANCES AND CERTIFICATIONS, VENDOR is also required to review, sign and submit acknowledgement of QUESTIONS & CLARIFICATONS associated with OCT 5 Year Vehicle Advertising RFP. These are considered part of the PROPOSAL. Failure to sign and submit these documents may result in rejection of the PROPOSAL. Previous QUESTION & CLARIFICATIONS are found on pages 44 - 46. Total possible points received for submission of QUESTIONS & CLARIFICATIONS is zero (0). PROPOSAL EVALUATION Following receipt of PROPOSALS by Mayor and City Council, PROPOSALS will be remanded to Staff for further review and evaluation by a designated REVIEW COMMITTEE. The REVIEW COMMITTEE will be comprised of three (3) individuals: Town of Ocean City Director of Tourism, Transportation Superintendent and Transportation Assistant Superintendent. The REVIEW COMMITTEE will evaluate PROPOSALS and assign points to pertinent sections based criteria set forth in INFORMATION FOR VENDORS. Upon completion of EVALUATIONS the REVIEW COMMITTEE will identify and Recommend For Award the most responsive and responsible VENDOR whose PROPOSAL represents the “Best Value” to The Town. “Best Value” will be determined by the depth, scope, accurateness and or competitiveness of VENDOR responses, qualifications and experience. If, after identifying a short list of

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RFP - OCT 5 Year Vehicle Advertising Contract

INFORMATION FOR VENDORS the most qualified VENDORS, and in the event a clear determination of recommendation for award is not arrived at, VENDORS may be requested to clarify their proposals by making individual presentations to the REVIEW COMMITTEE. After which, the REVIEW COMMITTEE may at it’s own discretion enter into negotiations with those VENDORS and invite best and final offers. Final recommendation for award will be determined by the REVIEW COMMITTEE. VENDORS are strongly advised not to prepare their PROPOSALS based on any assumption or understanding that negotiations will take place. VENDORS are advised to respond to this RFP fully and with forth-rightness at the time of submission. VENDOR AWARD The TOWN, following Notification of Award and within thirty (30) days of receipt of acceptable AGREEMENT signed by the party making the AGREEMENT, shall sign the AGREEMENT and return to such party an executed duplicate of the AGREEMENT. Should the Town not execute the AGREEMENT within such period, the VENDOR may, by WRITTEN NOTICE, withdraw his signed AGREEMENT. Such notice of withdraw shall be effective upon receipt of the notice of the Town. All applicable laws, ordinances, and the rules and regulations of all authorities having jurisdiction over the AGREEMENT shall apply to the contract throughout. QUESTIONS and CLARIFICATIONS Any questions or clarifications pertaining to this RFP are to be directed to: Mr. Brian Connor Assistant Superintendent of Transportation 204 65th Street - Building E Ocean City, MD 21842 Telephone: 410-723-2174 Fax: 410-723-1832 Email: bconnor@oceancitymd.gov All VENDOR questions and requests for clarifications must be submitted in writing prior to 4pm on Monday, March 25, 2013, ten (10) business days prior to due date of RFP’s. Answers will be provided in written format and will be shared with all known RFP holders. The Town will provide responses no later than 4pm on Friday, March 29, 2013, six (6) business days prior to due date of RFP’s.

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RFP - OCT 5 Year Vehicle Advertising Contract

AGREEMENT THE AGREEMENT shall be between the Awarded Vendor (hereinafter referred to as “Vendor”.) and The Mayor and City Council of Ocean City, MD (hereinafter referred to as “The Town”), a municipal corporation of the State of Maryland. WHEREAS, The Town operates a Public Transportation system, being partially funded with Federal and State assistance, and will make available for the use by Vendor interior and or exterior forms of advertising space on forty seven (47), forty foot (40’) Coastal Highway fixed-route buses, eight (8) “spare” forty foot (40’) fixed route buses, and two (2) Para Transit Vans. The Town also operates additional vehicles with no Federal or State assistance and will make available for use by Vendor exterior and or interior advertising space on one (1) Medical Appointment Transportation Van and twenty four (24) Boardwalk Tram roof tops. WHEREAS, the Vendor desires to manage all aspects of the sale and service of advertising space on the aforementioned vehicles and The Town has agreed to the use of said space, subject to all conditions, terms and provisions set forth in Information for Vendors and Transportation Advertising Agreement. The advertising mediums are included in this agreement. (SEE INVENTORY LIST ATTACHED HERETO AS EXHIBIT “A”, PP. 47 - 48) NOW THEREFORE, that for and in consideration of the promises, and the faithful performance and observance of the mutual covenants and agreements hereinafter set forth, the parties hereto do hereby covenant and agree: TRANSPORTATION ADVERTISING AGREEMENT A. PAYMENT: 1. Vendor will provide a lease payment to The Town as follows: a. Year 1, ____ % of net revenue* b. Years 2 and 3, ____ % of net revenue* c. Years 4 and 5, ____ % of net revenue* The percentage of net revenue should be no less than 45% the first year, no less than 55% in years two and three, and no less than 60% in years four and five. Lease payments are payable monthly, to be paid within 45 days of closing the monthly billing. * Net revenue is defined as Gross Advertising space revenue minus an agency commission of ___ %, but does not include any recoupment of production costs from Advertiser by Vendor. On a Bi-Annual Basis, adjustments will be made for chronic late paying advertisers and for invoices deemed uncollectible. B. LEASE TERM:
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RFP - OCT 5 Year Vehicle Advertising Contract
1. A five (5) year lease term to begin on September 01, 2013 and expire on September 1, 2018. With consent and approval of the Town the lease term may be extended for up to two (2) years.

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RFP - OCT 5 Year Vehicle Advertising Contract
AGREEMENT C. TERMS: 1. Vendor shall have exclusive management of all advertisement materials placed on vehicles listed in Exhibit A. 2. The Town may reserve for its use 18% of available advertising inventory and The Town will be responsible for the cost of production on said of inventory. Vendor will post and maintain all advertisements provided by The Town. Use of this inventory by The Town is limited to self-promotion and/or advertising sold by Vendor unless otherwise mentioned in this proposal prior to award of this contract. If unused, The Town may provide all or part of the inventory to Vendor for sale. 3. The saleable inventory is reserved to forty-seven (47) forty-foot Coastal Highway fixed route buses, two (2) ADA Para Transit Vans, one (1) Medical Appointment Transportation Van and twenty-four (24) Boardwalk Tram roof tops. Additionally, up to eight (8) forty foot Coastal Highway fixed route “spare buses” may also be made available. If the available fleet is expanded, sale of said advertising space will be made available. Availability of saleable inventory may be subject to change. 4. Vendor shall pay all expenses that affect the sale of the advertisements such as; design, production, delivery, installation, replacements, removal, and restoration of the vehicle to its original condition. The Town will not permit the advertisement to remain on a vehicle beyond the term of the contract between the Advertiser and Vendor, and therefore Vendor will be required to remove any and all evidence of the expired advertisement within thirty (30) days of date of expiration. If the removal of any advertisement, such as, but not limited to, vinyl adhesive applications, cause the surface of the vehicle to be defaced, paint to delaminate or other damages to the vehicle that are not subsequently covered again, Vendor will perform such repairs or paint to restore the vehicle to its original condition. 5. The Town shall provide information that the Vendor may need and request to assist in selling the advertising. 6. The Town will allow Vendor reasonable access to the reserved fleet for advertisements. The Town will provide Vendor with fleet summaries as required.

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RFP - OCT 5 Year Vehicle Advertising Contract
AGREEMENT 7. Vendor shall not display the following advertising: a. False, misleading or deceptive; b. Sexually explicit or obscene; c. Violent in nature or illegal; d. Tobacco; e. Gambling (except The Casino at Ocean Downs, located at 10218 Racetrack Road, Berlin, MD 21811, and the Maryland Lottery); f. Alcohol will only be allowed as a public service/message (subject to the expressed approval of The Town); 8. The Town shall be provided a copy of all proposed advertisement for review and approval prior to actual installation. Such review places no liability what so ever upon The Town for any grammatical errors that may be overlooked. If such errors are discovered after installation of the advertisement, Vendor shall correct the error at their sole expense. 9. Any proposed advertising that will project into and cover any portion of windows shall receive prior approval from the City Manager. No types of advertisements are to be displayed or adhered to the frames surrounding the vehicle window frames. 10. With each advertisement copy sold, Vendor shall submit to The Town warranty/literature documentation specifically referencing the life expectancy (i.e. specific to color retention and product adherence vehicle) of the material being supplied. Vendor shall limit the sale of the advertisement contract so as not to exceed the life expectancy of the material without written permission from the Town of Ocean City. 11. All advertising contracts are to be current at all times and payments to The Town should not be in arrears. 12. All rates, prices, terms, conditions and executed contracts between the Advertiser and Vendor shall be provided to The Town. 13. The Vendor shall not enter into any contracts that extend beyond a twelve (12) month time period following the expiration date of the Agreement with The Town. For the purpose of contracts with advertisers, the “expiration date of the Agreement” is the date that the Agreement with The Town will end. At the Vendors written request the Town may consider advertiser contract option renewal periods that extend beyond the twelve (12) month time period following the expiration date of the Vendors Agreement with The Town.

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RFP - OCT 5 Year Vehicle Advertising Contract
AGREEMENT 14. Following the assignment and transfer of the Agreement, after either expiration of the Agreement (September 1, 2013) or for Termination For Convenience, the awarded Vendor shall pay to the Town and incumbent Vendor sixty percent (60%) and twenty percent (20%) respectively of all gross income received from previously established contracts with effective performance period not to exceed November 1, 2014. Following the assignment and transfer of the contracts after Termination for Default, the Vendor shall pay the Town sixty percent (60%) and make no payment to the incumbent Vendor for the unexpired period of those contracts. The addition or deletion of applicable contracts may be subject to change. See Exibit “B” on page 49 of the RFP for number and value of unexpired contracts. D. NONDISCRIMINATION: Vendor agrees not to discriminate in any manner against any employee or applicant for employment because of political or religious opinion or affiliation, race, creed, sex, color, age or national origin. E. INDEMNIFICATION: Vendor agrees that it will, at all times, indemnify, save harmless and defend The Town from and against all loss, claims, demands, suits, judgments, damages, actions, costs, charges, and expenses, including reasonable attorney’s fees which may, in any way, arise out of or for which The Town may, in any way, become liable by reasons of any liable, slander, defamation or invasions of privacy contained in or resulting from, the advertisements, as well as, for any infringements of any copyrights, trademarks, or patents which may result from the exercise of the rights of the Vendor. F. TERMINATION: The Town has the option to terminate the contract upon thirty (30) day written notice of warning if the following conditions are violated. Vendor will have thirty (30) days after receipt of letter to correct or repair any problems. If problems continue to persist, a written thirty (30) day notice of termination will then be provided by The Town. 1. Advertising copy is continually in a deteriorated condition of neglect beyond normal wear and tear, and are not replaced within a reasonable time when necessary, unless caused by an Act of God or vandalism beyond Vendor’s control. 2. In the event bankruptcy were to occur, or a receiver or trustee is appointed for the Vendor. 3. If after the second full season (November 1, 2015), less than 50% of the available inventory designated for sale by Vendor has been sold. 4. If Vendor defaults in making any of the payments required and on a timely basis (see section A).

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RFP - OCT 5 Year Vehicle Advertising Contract
AGREEMENT 5. Vendor will have the option to terminate following the same guidelines identified in paragraph F, if the following condition is violated: Advertisements are continually damaged through cleaning, maintenance or vandalism of transit inventory, resulting in excessive expense for the Vendor. G. All terms of this agreement shall be covered by and construed in accordance with the laws of Maryland, applicable to agreements made and to be performed in Maryland. H. The agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the parties. IN WITNESS WHEREOF, Owner and Vendor have signed this Agreement in duplicate. One counterpart each has been delivered to Owner and Vendor. All portions of the Agreement have been signed and identified by Owner and Vendor or on their behalf. This Agreement will be effective on September 1, 2013 (which is the Effective Date of the Agreement). OWNER: ___________________________ By: ________________________ (CORPORATE SEAL) ___________________________ Attest ___________________________ Title Address for giving notices: ___________________________ ___________________________ VENDOR: ______________________________ By: ___________________________ (CORPORATE SEAL) ______________________________ Attest ______________________________ Title Address for giving notices: ______________________________ ______________________________

License No.:____________________ (Where Applicable) Agent for service or process:___________________________________________ (If Vendor is a corporation or a partnership attach evidence of authority to sign.)

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WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS B. High Tide Music Festival Update and Request for use of the Inlet Lot presented by Tom Russell and Ken MacDonald of Founders Entertainment

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4B April 9, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Lisa Mitchell, Private Events Coordinator Founders Music Festival April 3, 2013 Update on the High Tide Music Festival and consideration to rent the Inlet Parking Lot. Tom Russell and Ken McDonald will provide an update on the High Tide Music Festival. A memorandum is attached detailing previous presentations and actions pertaining to this event. Tom Russell is also requesting the Town consider renting the entire Inlet Lot for May 30-June 1, 2014. Founders Entertainment is prepared to pay the Town of Ocean City the average earned income over the past five (5) years for use of those parking spaces.

ISSUE(S): SUMMARY:

FISCAL IMPACT:

Founders Entertainment is estimating a $20 million economic impact to Ocean City. Average Inlet Lot Revenue for the Friday, Saturday and Sunday after Memorial Day from 2008-2012: $40,543.26.

RECOMMENDATION:

Due to limited parking in the downtown area, recommend partial rental (100-200 spaces) of the Inlet Lot so both concert-goers and visitors who are not attending the event will be able to utilize it. Approve request as presented. Do not approve any rental of parking spaces for the event. Lisa Mitchell, Private Events Coordinator Appropriate staff, including Special Events, Public Works, Beach Patrol, and Police 1) Memorandum noting event background information 2) Founders Entertainment PowerPoint Presentation 3) Founders Draft MOU

ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH: ATTACHMENT(S):

P.O. BOX 158 ● OCEAN CITY, MARYLAND ● 21843-0158

City Hall – (410) 289-8221 ● FAX – (410) 289-8703

MEMORANDUM
TO: FROM: DATE: RE: David L. Recor, ICMA-CM, City Manager Lisa Mitchell, Private Event Coordinator April 3, 2013 Founders Entertainment High Tide Music Festival Summary of Previous Presentations and Council Actions

October 17, 2011: Tom Russell requested approval to hold the Founders Entertainment Music Festival on Saturday and Sunday, June 2-3, 2012, on the beach in Ocean City. Key points in the application were as follows:    Site location on the beach north of the pier to 2nd Street. Time of the event: 11 am until 12 am. The event would consist of four (4) performance stages, sponsor activations, nonsponsored activities/games and interactive art installations, food and beverage, including alcohol, and craft concessions and other traditional festival elements (VIP areas, bathrooms, etc.). Production team would be permitted vehicular access to the beach in order to build, service and break down the event site. Vehicles would enter through the Inlet Lot or through another location of the town’s choosing. The coordinators would reserve and pay for a section of the Inlet Lot for event production, much like the Dew Tour. Would also like to consider reserving some spaces in the Inlet Lot for VIP parking passes.

  

Council approved the event with the following stipulations:    The event will end nightly at 10 pm. Founders Entertainment will enter into a Memorandum of Understanding (MOU) with the Mayor and Council. Founders will satisfactorily compensate the affected Beach Equipment Franchises.

March 5, 2012: Tom Russell requested a date postponement to June 1-2, 2013. Council approved with the consent that Mr. Russell will appear before the Council in November 2012 with an event update. November 27, 2012: Tom Russell proposed the following requests/changes to the High Tide Music Festival:    The event would be a 3-day series of live country music on the beach, May 30 to June 1, 2014, from 11 am until 11 pm Friday and Saturday, and 11 am until 10:30 pm on Sunday. The site location would be minimized over 30% to span from Dorchester Street to 1st St. The number of stages would also be reduced from four (4) to two (2).

Mr. Russell stated he would make every attempt to minimize construction noise and stated a production schedule would be issued well before the event. City Manager Recor reported that the MOU would address all points of concern, notifying all property owners, setting up at least 75 feet east of the concrete boardwalk and the production schedule. Council approved the request.

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TOWN OF OCEAN CITY 301 BALTIMORE AVENUE OCEAN CITY, MARYLAND 21842 MEMORANDUM of UNDERSTANDING BETWEEN THE MAYOR AND CITY COUNCIL TOWN OF OCEAN CITY, MARYLAND AND TOM RUSSELL, FOUNDERS ENTERTAINMENT SUBJECT: HIGH TIDE MUSIC FESTIVAL As of 01/29/13 1. Purpose. This Memorandum of Understanding (MOU) defines the terms by which the High Tide Music Festival shall be presented in 2014 and identifies what each party shall accomplish and by what dates. The Private Event Application for the High Tide Music Festival and all signed disclosures shall be incorporated into this MOU by reference. 2. Request for Permission to Conduct Event: Mr. Tom Russell of Founders Entertainment (FE) approached the Town of Ocean City (TOC) with a Private Event Application requesting permission to conduct the Hightide Music Festival 2014. This MOU follows and incorporates an annual review of a Private Event Application by the City Staff and approved by the Mayor and City Council. 3. Event Summary: This event is a 3-day, 2-music stage music festival set on Ocean City’s beautiful beach north of Dorchester Street to 1st Street. The event will take place from 3pm to 11pm on Friday, May 30, 2014, 1pm to 11pm on Saturday, May 31, 2014, and 1pm until 10:30pm on Sunday, June 1, 2014. The festival will include art and craft vendors, sponsor activations, and food and beverage concessions. This event is scheduled to proceed rain or shine. There is no rain date. 4. Scope. This Memorandum of Understanding includes the planning, coordination and execution of the High Tide Music Festival, and identifies tasks/responsibilities for each party. This memorandum shall remain in force until terminated by either party. 5. Financial Agreement: The TOC shall provide no in-kind services to FE. FE will pay for all services and equipment belonging to the TOC and used for this event. FE will give the TOC 7.5% of all food and beverage concessions from the promoter’s share of the revenue after taxes and expenses, and $1 per every 3-day admission ticket sold, $0.66 per every 2day admission ticket sold, and $0.33 per every 1-day admission ticket sold. 6. The attached site diagram will be provided by FE no later than April 30, 2014 and shall be a part of this MOU. Any changes made to the site after April 30, 2014 must be approved by the City Manager. 1

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7. The following identifies the responsibilities of FE: a. Set-up for the event begins at 3:00 pm on Monday, May 26, 2014 and continues until 12 noon on Friday, May 30, 2014. Some parts of the site will be constructed overnight. FE will provide a build schedule and work to minimize noise between the hours of 12:00 midnight and 7:00 am. Vehicle guides will be used when back-up horns are deactivated. b. Will place sand matting in the festival footprint on Sunday evening, May 25. c. Will obtain the necessary tent permits from the Office of the Fire Marshal for the TOC. d. Will submit a detailed site plan of the High Tide Music Festival Grounds to the Office of the Fire Marshal for the Town of Ocean City to review. This site plan must indicate accesses to the Boardwalk, and the accesses and clearances that will be maintained from any tents, displays, vehicles, stages and the like. e. Will provide a detailed request for support and time line by January 15, 2014. All requests and/or changes to the time line made after April 30, 2014 must be approved by the City Manager. f. All loading and unloading of construction items shall take place via Dorchester Street and North Division Street. Parking or staging is not permitted on these streets. g. Will cover the Boardwalk with 24-feet wide ¾” plywood with beveled edges for load in and load out at Dorchester and North Division Streets. h. Will follow all Worcester County Liquor Control Board guidelines in order to sell beer and wine at the event. i. Will market the event with a regional focus, but national reach. j. Will work with local media outlets (print, broadcast, internet, etc.) for event coverage and feature stories. k. Only authorized vehicles are permitted on the beach. Said vehicles will have event placards to identify them as such. l. Will fence the footprint while maintaining emergency access points. m. Will provide portable toilets on the beach within the festival grounds, which will be serviced appropriately. n. Will provide all trashcan liners. o. Will provide appropriate number of on-site security personnel during the build, event and tear down. p. The event headquarters will be located within the festival grounds. q. Will provide a complete vendor list, including contact name, business name, contact information and address, a minimum of 30-days prior to the event. r. Will begin load out as soon as event ends. All equipment and event items must be off the beach by Thursday, June 5, 2014. s. Is responsible for all medical treatment/care within the footprint of the event; this shall include the medical treatment of volunteers, spectators, talent and staff. The sponsor is responsible for all medical transports to medical facilities for medical emergencies that occur from within the footprint of the event. t. Will utilize a section of the Inlet Parking Lot, Rows AA thru D, from Monday, May 26, 2014 until Wednesday, June 4, 2014. Will reimburse the TOC for 2

DRAFT
these 394 parking spaces. The amount to be reimbursed will be an average earned income for the last five (5) years on the spaces used. u. Will rent the entire Inlet Parking Lot from Friday, May 30, 2014 thru Sunday, June 1, 2014 as parking for ticket holders. Will control who enters the Inlet Lot during this time. Will allow pier workers and delivery trucks not involved with the music festival access to the Inlet Lot as well. Any spaces not sold to ticket holders by April 30, 2014 will be returned to the TOC. v. May solicit, secure or change its sponsorships so long as it complies with the Town’s beverage and sun care product sponsorships. Sponsorships shall not include drugs, sex or tobacco. Alcohol or gambling sponsorships are permissible provided no messages encourage the act of gambling or promote the consumption of alcohol. Alcohol-related messages must be used as a positive teaching public service announcement, i.e. “beer name – Drink Responsibility. w. Will dispose of all trash within the festival grounds and maintain the cleanliness of the beach within the festival grounds at all times. TOC will provide an adequate number of dumpsters in which FE can dispose of trash. x. Will provide the Certificate of Insurance (COI) to include coverage for personal injury in the amount of $1,000,000.00 single limit, and name the Mayor and City Council as additional insured. This certificate will be provided to the Town of Ocean City’s Private Event Coordinator prior to the issuance of this permit. y. Will complete by March 1, 2014, a mutually amenable agreement with the Beach Stand Operators within the area of Dorchester Street to 1st Street. Will also provide signage and maintain walkways for customers to reach these Beach Stand Operators. z. Will comply with the Ocean City Incident Action Plan requirements in the event of inclement weather and will provide and maintain Ocean City Beach Patrol (OCBP) direct access to the beach from Dorchester Street and along the oceanfront. aa. Will comply with all Federal, State, County and City statutes, ordinances and codes. bb. Will coordinate any radio use with the TOC Emergency Services. 8. The Town of Ocean City is responsible for providing: a. TOC will provide FE a list of available support and price list by August 1, 2013. b. Department of Public Works (DPW) will section off part of the Inlet Lot for FE use from Monday, May 26, 2014 until Wednesday, June 4, 2014. c. DPW will close the Inlet Lot for FE use from Friday, May 30, 2014 until Sunday, June 1, 2014. d. DPW will move the wooden walkways for ADA entrance. e. DPW will provide and place metal trash barrels in the festival grounds. Will provide dumpsters near the festival grounds. f. In case of lightning, OCBP will clear the beach, including all festival vendors, staff and spectators. 3

DRAFT
g. OCPD will detail officers and supervisors for a special order for this event. h. Ocean City Communications Manager will advertise this event on the website and electronic marquees when space is available. i. Tourism will post this event on the calendar of events website as well as include it in upcoming e-blasts as space is available. Will include this event in the distributed event sheet. If requested, will share media list, and direct news media to FE for free publicity opportunities j. TOC will provide a COI to FE. 9. This MOU shall remain in force until Thursday, June 30, 2014, unless sooner terminated as provided herein. 10. Operational Security Provision: In the event of exigent circumstances arising during the course of the High Tide Music Festival, the Town may, at its sole discretion, deploy or divert such public safety personnel and resources as deemed necessary. In the event of an emergency, the Town of Ocean City may cancel the event in the course of its emergency procedures. In the event of inclement weather the parties, after consultation, may cancel or postpone the event. 12. The Special Events Director of the TOC shall serve as the Town’s Agent for the planning, coordination and execution of the High Tide Music Festival. Mr. Tom Russell shall serve as the agent for the High Tide Music Festival. Should any terms of this MOU not be met, the TOC may terminate this agreement at its discretion. 13. This MOU is effective when signed below and may be terminated by either party at any time. 14. In the event a dispute arises regarding this MOU which cannot be resolved by the parties, the matter shall be submitted to mediation before commencement of litigation or as agreed by the parties. 15. This MOU is not assignable by FE without the express written consent of the Mayor and City Council of Ocean City, which consent may be withheld for any reason at the sole discretion of the Mayor and City Council of Ocean City. Furthermore, should FE cease to be associated with the Hightide Music Festival for any reason, the Mayor and City Council may terminate this MOU. 16. No Partnership. This MOU does not create a partnership or any other business entity or affiliation between the parties, other than to define the respective rights and obligations of the parties as to the presentation of the Hightide Music Festival 2014. 17. Final Agreement. This MOU represents the final agreement between the parties hereto, and shall only be amended or modified by written agreement between the parties.

4

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Tom Russell Co-President Founders Entertainment Date___________________ David L. Recor City Manager For the Mayor and City Council

Date___________________

Ken McDonald for Starr Hill Presents

Date___________________

5

Table of Contents
• Event Overview • Event Layout & Location • What To Expect • Inlet Lot Formal Request • Thank You!

Event Overview
• • • • • A 2-Stage music festival set on Ocean City’s beautiful beach Event Dates: Site Capacity: Est. Attendance: Event Hours: May 31st – June 2nd 2014 35,000 per day 20,000-25,000 per day 5/31: 3pm–11pm, 6/1: 1pm-11pm, 6/2: 1pm– 10:30pm

• Art, Craft Vendors, Sponsor Activations, and food & beverage concessions to compliment the music • The programming format of the festival has changed from a rock and roll event to a country music event • Target talent for the festival include nationally recognized Country acts who typically play arenas and other large scale venues

Layout & Location
• The current proposed layout of the festival spans from Dorchester Street to N. 1st Street • The event’s perimeter fence will be approximately 100 feet off of the boardwalk, per the city ordinance • The event’s main entrance and exit is currently placed on the north side of the event site, allowing ample room for cueing lines • There will be easy access to the beach via Dorchester Street for beach patrol and other safety personnel • See detailed site map on next page for additional info on layout and location

What To Expect
• The festival will begin its build on Monday, May 26th (Memorial Day) at 3pm EST • Flooring will be dropped on agreed upon & designated areas late Sunday evening, as per prior discussion and town approval • Production vehicles will cross over the boardwalk onto the beach during the agreed upon hours, and all vehicles will have spotters and No reverse beeping if after hours. Security will be placed at crossover locations for safety • The event will feature food and beverage concessions, including beer and wine, as per prior discussion and town approval, and event promises to abide by all Worcester County laws • The town will receive 7.5% of all food and beverage concessions from the promoter’s share of the revenue after taxes and expenses, and $1 per every 3-day admission ticket sold, $0.66 per every 2-day admission ticket sold, and $0.33 per every 1-day admission ticket sold

Inlet Lot Formal Request
• The event would like to use a section of the Inlet Lot, Rows AA - D for production vehicles from Monday May 26th until Wednesday June 4th, 2014. • The event will reimburse the Town of Ocean City the average earned income over the past 5 years on the parking spaces used • The event would like to formally request the ability to upsell parking spaces in in the Inlet Lot to event VIP attendees during event days • These spaces would be rented from Friday May 30th – Sunday, June 1st and would sold via the event website and marketed as “VIP Parking” • Event promises to reimburse the Town of Ocean City the average earned income over the past 5 years on the parking spaces used • Any spaces not sold to VIP patrons by April 30th, 2014 would be returned to the Town of Ocean City

Thank You!

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS C. City Engineer Bid Award Recommendation for Storage Area Network Appliances and Server Equipment

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4C April 9, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Terence J. McGean, City Engineer Bid Award Network Storage Appliance April 3, 2013 Additional storage required for City’s data network Bids for the network storage appliance were advertised on eMaryland Marketplace, and three (3) bids were received. The low bid was from ePlus at $30,749.33; however, the budgeted amount was $25,000. Therefore, staff negotiated with the low bidder to reduce the price to $25,506.71 by agreeing to do some additional configuration work in-house. $25,506.71 Purchase the storage area network server appliance from ePlus in the amount of $25,506.71. None Terence McGean, City Engineer Nancy Bloxom, Information Technology Director Rob Morand, Converged Network Manager

ISSUE(S): SUMMARY:

FISCAL IMPACT: RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF:

COORDINATED WITH: ATTACHMENT(S): Bid results and quotes

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS D. Transportation Superintendent Request to Purchase Bus Spare Parts

166

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4D April 9, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Brian Connor, Assistant Superintendent of Transportation Bus Spare Parts (Bus Tires) March 29, 2013 Request to purchase bus tires The Transportation Department has been awarded grant funding by the FTA and MTA to purchase bus spare parts. We identified the need to purchase spare bus tires with these funds. Throughout the year, we find it necessary to purchase replacement bus tires due to expected wear and tear. Readily available spare tires minimizes downtime for buses and increases efficiency at the service center. $5,185.27, approved in the budget Approve purchase using grant funds. None Brian Connor, Assistant Superintendent of Transportation Hal Adkins, Director of Public Works George Thornes, Superintendent of Transportation Pam McMillian, Procurement Supervisor Ron Eckman, Fleet Manager 1) Memorandum from Brian Connor 2) MTA Letter of Concurrence

ISSUE(S): SUMMARY:

FISCAL IMPACT: RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH:

ATTACHMENT(S):

Memorandum

To: From: Date: Subject:

David L. Recor, ICMA-CM, City Manager Brian Connor, Assistant Superintendent of Transportation March 29, 2013 Purchase Bus Spare Parts, Bus Tires

On an annual basis, the Transportation Department submits the 5311 Grant Application for Non-Urbanized Areas, the Annual Transportation Plan (ATP), and Americans with Disabilities Act Grant to the Federal and Maryland Transit Administrations. The grant applications request full or partial funding of our transit system operating costs and capital projects. We requested and received grant funding for the procurement of bus spare parts. In an effort to stock parts for immediate bus repairs and minimize downtime, we would like to purchase bus spare tires. The FTA/MTA funded this grant at 90% with a 10% local match. Based on a total project cost of $51,852.78, this project will cost the town $5,185.27. Attached is a letter from the Maryland Transit Administration dated March 27, 2013, concurring with Ocean City Transportation’s request to purchase tires for its fleet of transit buses. I am seeking the approval of the Mayor and City Council to purchase the bus spare parts. I will be attending the Work Session on April 9, 2013. Should you have any questions, please feel free to contact me.

Cc:

Hal Adkins, Director of Public Works George Thornes, Superintendent of Transportation Pam McMillan, Procurment Supervisor Ron Eckman, Fleet Manager

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS E. Consideration of proposal to provide credit/debit card payment option for bus customers presented by the Finance Administrator

TOWN OF

The White Marlin Capital of the World
Agenda Item# Council Meeting 4E April 9, 2013

TO: THRU: FROM: RE: DATE: ISSUE(S):

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Martha J. Bennett, Finance Administrator Unsolicited Proposal for Pay-by-Phone for Bus Fares April 2, 2013 Unsolicited proposal from Electronic Transaction Systems Corporation (ETS) to develop a pay-by-phone option to be integrated into our bus transportation. ETS has offered to develop a pay-by-phone application, free of charge to the Town of Ocean City, to accept bus fares and allow bus riders the convenience of credit or debit card payments, which may in turn encourage ridership. By accepting PMoney as an additional form of payment, ETS has offered to charge a flat rate of .50% with no other per item fee. ETS will reimburse any software/hardware manufacturers to cover the cost of integrating PMoney into their products. For all other processing services ETS is prepared to extend the rate of .23% & $.15 above interchange, which is the same rate currently in place at Eagle's Landing Golf Course. Additionally, for each individual the Town refers, the Town will have an opportunity to collect .05% on ALL of their future purchases for as long as that account is active. No matter where a consumer goes to use PMoney after being registered by a merchant, the originating merchant will always receive that additional revenue stream. This allows a seasonal destination like Ocean City the ability to receive year-round revenue.

SUMMARY:

FISCAL IMPACT:

None incurred by the Town for development of software. No hardware is needed. Actual dollar amount accrued by the Town is unknown since it is contingent upon usage. The Town would have to provide signage at bus stops and provide public information. Accept the proposal to allow ETS to develop this application free of charge to the Town of Ocean City. Do not provide this credit/debit card payment application for bus customers. Martha Bennett, Finance Administrator George Thornes, Transportation Superintendent Joe Sobczak, General Services Director 1) 2) 3) 4) Fact sheet explaining PMoney Proposal from Electronic Transaction Systems Corporation ETS company overview Town of Ocean City Purchasing Policy and Procedure Manual, Chapter IV, Section 4.10, Unsolicited Proposals.

RECOMMENDATION: ALTERNATIVES RESPONSIBLE STAFF: COORDINATED WITH: ATTACHMENT(S):

TIVI

5

AP V

INTRODUCTION

ENJOY THE FREEDOM
Long lines at the register Not anymore Allow your customers to experience the ease and convenience of paying with or without their phone Consumers no longer have to fumble for credit cards or pull out a wallet Now they can truly enjoy the freedom of paying on the go Lose the wallet
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2012 ETS

Corporation

   

       

Proposal l for PMon ney Paym ment Proce essing  for f  the  Tow wn of Oce ean City, M Maryland 
  Pr repared By:  Mike M  Brittingham, Relationshiip Manager  Ele ectronic Transa action Systems  Corporation 10 Pidgeon n Hill Drive Suit te 200  Sterl ling, VA 20165   www.etsms.co om ∙ www.pmo oney.com  

 

   
ALL MATE ERIAL COVERED D IN THIS PROP POSAL IS CONSI IDERED PROPR RIETARY AND C CONFIDENTIAL. .  INFORMATIO ON  SUPPL LIED BY THE TO OWN OF OCEAN N CITY, MARYL LAND TO ETS CO ORPORATION F FOR THE PURP POSE OF THIS  PROPOSAL P  IS ALSO A  CONSIDER RED CONFIDEN NTIAL INFORMA ATION.  THIS PRO OPOSAL REPRES ESENTS THE BAS SIS FOR A PROP POSED BUSINE ESS RELATIONS SHIP AND IS NO OT A CONTRACT T  FOR SER RVICES.  THIS PR ROPOSAL IS CO ONTINGENT UP PON APPROVAL L BY ETS CORPO ORATION AND D THE TOWN OF F  OCEAN CI ITY, MARYLAND D. 

Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

 

Conten nts
  Article I.  (a)  Article II.  (a)  (b)  Application Specific Details .............. ...................... ..................... ..................... ...................... ....... 2  PMoney™ ......................................... ..................... ..................... ....... 2  ...................... ...................... Vendor Ba ..................... ..................... ....... 4  ackground ......................... ...................... ...................... ..................... ..................... ....... 4  Backgroun nd and Qualifications ........ ...................... ...................... ..................... ..................... ....... 4  Security & PCI Compliance ............... ...................... ......................

..................... ..................... ....... 5  Article III.  Associated d Costs & Fee es  ................... ...................... ...................... (a)  (b)  (c)  ..................... ..................... ....... 5  Cost Savin ngs and Fees ...................... ...................... ...................... ..................... ..................... ....... 5  Revenue Generation G  ........................ ...................... ...................... ..................... ..................... ....... 5  Marketing g & Advertisin ng .................. ...................... ......................

..................... ..................... ....... 6  Article IV. .  Appendix .......................................... ...................... ...................... (a)  (b)  (c)  (d)  (e)  ..................... ..................... ....... 6  PMoney Consumer C  App p ................... ...................... ...................... ..................... ..................... ....... 7  Hypercom m L5300 Custo omer Facing Terminal T  ........ ...................... ..................... ..................... ....... 8  Examples of Use ............................... ...................... ...................... ..................... ..................... ....... 9  Examples of App Design ................... ...................... ...................... ..................... ..................... ..... 10  Example of o  Instructiona al Signs ......... ...................... ......................

 

 

 

 Pa ay. Save. Earn n…On the Go! !   

Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

 

Article e I.
 

Appl lication Specific De etails

as developed a comprehen nsive suite of payment opt tions to facilit tate processin ng throughou ut the  ETS ha entire Town of Ocean City.  Our solutions will enhance pay yment accept tance throughout Ocean C City  oviding multip ple payment options o  across all spectrum ms of business offered by a sole vendor r.   by pro The following solutions will be available to th he Town:   ney  ‐ PMon ‐ EMon ney Credit & Debit Card Pr rocessing  ‐ EMon ney Gift & Loy yalty Cards  ‐ ACH Platforms  ‐ EFT Platforms P   ‐ Ecom mmerce Platfo orms  All plat tforms have been b  designe ed and develo oped by ETS to o provide unm matched inte eroperability a and  data in ntegrity.  Thes se platforms are only available through h ETS.    (a) PM Money™ PMoney is ou PMone ey is the lates st flagship sol lution developed by ETS.  P ur pay‐by‐pho one solution w which  will en nable the Tow wn of Ocean City C  to save up p to 70% on t their payment t processing f fees.  Ocean C City  will no ow be able to accept paym ments from co onsumers usin ng their mobile phone or p phone numbe er as  a paym ment method.  The PMone ey platform is a portal desiigned for consumers to reg gister their m mobile  phone e number alon ng with a secu ure PIN to link their credit  cards, debit cards or chec cking account t for  PMone ey payments. .  At participating merchan nt locations, c customers can use their m mobile phone or  mobile e phone number and PMoney PIN to ac ccess this pref ferred metho od of paymen nt through a  custom mer facing ter rminal or thro ough their mo obile phone d directly.   1. Payment via PMoney Ap pp  s who have a smartphone with w  access to d Market or A App Store can n  Consumers o the Android make paym ments directly y from their phone.  By utillizing the PMo oney App con nsumers of th he  town can pay virtually any bill withou ut even being g present at th he payment location.  This s is  u  when paying p  for par rking or mass s transit.  Whe en consumers s use the PMoney  especially useful App the me erchant receiv ves a notification instantly y that the pay yment has been completed d and  can text or email a receipt directly to o the custome er.  No longer r will visitors n need to searc ch for  f  an ATM, with PMoney y they always s have access to their finan ncial accounts s and  change or find can pay any ytime from an nywhere.  (See Appen ndix A)         

 

 Pa ay. Save. Earn n…On the Go! !   

Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

      2. Customer Facing F  Termin nals   PMoney can be used by residents, bu usiness owne rs and visitor rs.  In a face‐to‐face payme ent  environment a customer facing terminal will be in nstalled so tha at a consume er wishing to make  a payment will have the option of usi ing their PMo oney account or traditiona al styles of  payment.  By B  entering in n their mobile e phone num ber and a cus stomized four r to six digit P PIN  the amount t due will be automatically y deducted fr rom their PMoney account t.  (See Appen ndix B)    3. Pay for Parking  ETS has dev veloped a pay y for parking feature f  into o our PMoney A App which ha as been specif fically  designed fo or Ocean City.  Drivers will be able to ut tilize the PMo oney App to p pay for street t  parking and d parking in municipal m  lots.  By using th e App, driver rs will be able e to “feed the e  meter” from m the boardw walk, beach or wherever e lse they may be.  Our systems will be  integrated with the hand dheld devices s carried by P Parking Enforc cement Office ers to alert th hem  when a veh hicle has alrea ady paid using g PMoney.  T he App will also alert drive ers when their  metered tim me is running g low.  (See Appen ndix D)    4. Pay for Transit  An addition nal feature of f PMoney is th he ability to p pay for mass t transit while in Town.  ETS S will  include features in PMoney so that bus b  patrons w will be able to pay for their fare before t they  ever board a bus.  This will w  save the transit t  system m time loading g passengers onto the bus s  system as well w  as increasing the amount of riders who utilize th he bus by pro oviding an  alternative to cash paym ments.  t  only company to deve elop a pay by phone solutio on that allow ws consumers to pay with  ETS is the absolu utely no need for Point‐Of‐Sale (POS) integration.  PM Money will be e accepted at t a growing  numbe er of Ocean City C  locations with many di ifferent accep ptance points s.  The ETS suite of products  will provide a conso olidated processing landsc cape with one e company rather than fractionalizing m many  compa anies using multiple solutio ons.     

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

 

Article e II. Vend dor Backg ground
(a) Ba ackground and a Qualifica ations

Electronic Transac ction System ms Corporation (ETS) is a an internatio onal corporation  headq quartered in Sterling, Vir rginia.  ETS continues c  to be a pionee er in the arch hitecture of  secure e transaction n processing g for all busin ness segmen nts.  ETS dev velops state of the art  produ ucts utilizing the latest te echnologies to service a nd enable all merchants s with the m most  comprehensive pr rocessing so olutions in th he industry.   ETS is a registered d member se ervice provid der supporti ng all cards brands acro oss North  Ameri ica and Western Europe e.  ETS produ ucts and serv vices have re eceived a tre emendous  response from bo oth merchants and POS developers, d  and are curr rently used a at thousands of  ons across th he United St tates and int ternationally y, in all mark ket segment ts.  locatio
(b) Se ecurity & PCI Complianc ce

parate  ETS manages m  and maintains fo our separate e redundant t data center rs in four sep geographical locations.  ETS undergoes u  an nnual audits s by the card d association ns and third‐ party auditors to verify v  not on nly security requirement r ts but also redundancy a and disaster r  recove ery policies.  The four re edundant ET TS data cente ers allow for r 100% uptim me with no  outages, ever.  ET TS holds secu urity as the number n  one pillar above e all.  Our arc chitected  system ms follow the latest secu urity protoco ols develope ed by OWASP and NIST a and typically y  double their recom mmendation ns.     ETS is the only pro ocessor to tr ruly employ end to end e encryption f from point o of submission to  rd point of settlemen nt with no 3  party invo olvement for r the life cyc cle of a paym ment transac ction.  th We re ecently passe ed our 10  annual a  PCI Audit A  and willl provide pr roof of the sa ame at your r  reque est if awarded the oppor rtunity.    upport staff is available 24/7 to answ wer any and d all question ns, and to as ssist the Tow wn of  Our su Ocean n City staff with w  any issues occurring g at an indiviidual locatio on.     

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

 

Article e III. Asso ociated Co osts & Fee es
 
(a) Co ost Savings and a Fees Proces ssing a payme ent with a traditional credi it card typica lly costs a me erchant 2‐3% of the  transaction.  The bu ulk of this cos st is set by Vis sa & MasterC Card and is no on‐negotiable e for any  t to process a PMoney transaction is a flat rate of .5 50% with no p per item fee.  ETS  merchant.  The cost does not n  charge any other fees for f  a merchan nt to utilize P Money.   Add ditionally, ETS S will reimbur rse  any so oftware/hardw ware manufacturers to cov ver the cost o of integrating g PMoney into o their products.   For all other proces ssing services ETS is prepar red to extend d the rate of . .23% & $.15 a above  interch hange, which is the same rate r  currently y in place at E Eagle’s Landin ng Golf Course.  (b) Re evenue Gene eration In orde er to advance e PMoney in the t  marketpla ace ETS has c hosen to rew ward merchan nts for registe ering  users.  When a mer rchant registe ers a consume er to use PMo oney under th heir Business ID the merch hant  will then receive .05 5% of ALL future purchase es of that con sumer for the e life of their PMoney acco ount.   No ma atter where a consumer go oes to use PM Money after b eing registere ed by a merchant, the  origina ating merchan nt will always s receive that t additional re evenue stream m.  This allow ws a seasonal  destination like Oce ean City the ability a  to receive year‐roun nd revenue. arketing & Advertising A (c) Ma ETS will design instr ructional sign nage to be posted for stree et parking and d municipal lo ots in order to  inform m the public on the use of PMoney P  to visitors to the T Town.  ETS w will work with the Town’s  advert tising agency in order to pr romote the advantages of f PMoney thro ough billboar rds, television n  advert tisements and d other marke eting avenues s.  

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

 

Article e IV. Appe endix
(a) PM Money Consumer App  

     

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

  (b) Hy ypercom L5300 Custom mer Facing Terminal T

  Approvals s  • PC CI PTS 2.xx  • PC CI PA‐DSS  • X509 Standard d Public Key In nfrastructure • EMV Level II  • In nterac  • PC CI PIN Securit ty Guidelines 2.0, Normati ive Annex A a approved (Remote Key Inje ection Capability)  • RoHS complian nt    Security Features F   • Application Sig gning  • Download Syst tem Signing  • PO OS System Sig gning  • Public Key Sign ning  • En nd‐to‐End Tra ansaction Sec curity  • Remote Key In njection     

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

  (c) Ex xamples of Use U    

     

     

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

  (d) Ex xamples of App A Design

 

 

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Town of Ocean O  City, Maryland M  
Proposal fo or Electronic Processing Serv vices  January, 20 013 

  (e) Ex xample of In nstructional Signs    

 

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E

Company

Overview

We are one company providing a single solution for all of your processing needs

Electronic Transaction Systems Corporation ETS is an international corporation
with primary offices based in Sterling Virginia ETS is a recognized leader in the merchant processing and ATM driving fields ETS develops state of the art
products utilizing the latest technologies to service and enable all merchants

with the most comprehensive processing solutions in the industry ETS platforms support all forms of electronic processing including but not
limited to credit and debit card processing POS check electronic funds

transfer EFT and ATM driving Additionally ETS has created gift and loyalty platforms to assist our clients in developing and employing retention programs
that are proven to increase business profitability
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ETS is a registered member service provider with MasterCard International and Visa International For additional information on any of our products or services
please contact us

We Can Help You
t fractionalize your merchant processing by dealing with multiple parties Don
1

Let us show you the convenience and savings gained by working with a single
company offering the only total solution in the industry
Customized Merchant Accounts
Credit Card Debit Card POS Live Check Processing Tracking Stand Alone Retail Restaurant Fully Integrated Hotel Applications

t f A

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Fully Integrated Stand Alone MOTO Mail OrderTelephone Order Applications Ecommerce Applications Membership Billing Private Label Card Gift Card Member Card Loyalty Card Processing Tracking High Speed Transactions 1 2 seconds Integrate with your existing POS eliminate separate terminals and additional phone lines

Real Time Reporting rich dynamic reports online in a live environment Chain Management Options live tracking for multiple location chains
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A complete end toend solution developed and supported by ETS
ETS

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Toll Free 800 834 7790 Local 703 421 9101 Fax 703 421 9158 Online www com etsms

Town of Ocean City Purchasing Policies and Procedures Manual
CHAPTER IV

SPECIAL PROCEDURES

10 4

UNSOLICITED PROPOSALS

An unsolicited proposal may be submitted to the Town of Ocean City for the purpose of obtaining a contract with the Town for goods andor services offered by the submitting
company

In order to be considered an unsolicited proposal it may be submitted in writing as such and be acknowledged and accepted by the Town as an unsolicited proposal Once accepted by the Town the normal bidding procedures and purchasing guidelines may be
waived

A valid unsolicited proposal must meet the following criteria
A B C

Be innovativeunique product andor service not available from any other source
Be the sole idea of the company making the offer Be prepared without the assistance or supervision of any Town employee or government official

D

Be in sufficient detail to warrant the Towns interest in pursuing the proposal
Cannot be an advance proposal for a known Town requirement that is available through normal competitive bidding procedures
Cannot be in response to an informal or formal request for bid from the Town

E

F

The receipt and acknowledgment of an unsolicited proposal does not in any way obligate the Town to enter into a contract with the offeror nor does it automatically establish a proprietary interest of right on the part of the offeror

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS F. Public Works Director Discussion of Terminating Transportation Discount Coupon Booklets

25166

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4F April 19, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Hal O. Adkins, Public Works Director Transportation Department Discount Coupon Booklet Request to Terminate Program/Issuance April 3, 2013 Use/sale/potential termination of discount coupon books. A discussion concerning the desire to terminate the sale of discount coupon booklets for the Transit System. Potential revenue increase of +/- $50,000 with a corresponding reduction in expenditures of +/- $3,000 for printing. Terminate coupon book sales at this time. Continue the program. Hal O. Adkins, Public Works Director George Thornes, Transportation Superintendent Brian Connor, Assistant Transportation Superintendent Jennie Knapp, Budget Manager Fact Sheet (2 pages)

ISSUE(S): SUMMARY: FISCAL IMPACT:

RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH:

ATTACHMENT(S):

FACT SHEET BUS DISCOUNT COUPON BOOKS Standard Bus Fare  Per-Boarding fare is $1.  Ride-All-Day fare is $3. Discount Coupon Book  Approved by MCC at Work Session of 5-31-05  $15 for a book of 20 coupons. (Discounted value is $0.75 per coupon or $2.25 per ride all day pass.)  1 coupon required per boarding  3 coupons required for a ride-all-day pass Sale Locations  Convention Center, 65th St. Police Station, Northside Park Recreation, City Hall, Boardwalk Tram Stations and on Buses.  Staff is required to maintain a supply of 125 books at each location, excluding Buses. Bulk Sale of Discount Coupon Books  Approved by MCC at Work Session of 12-5-10  $250 for 20 books (Discounted value is $12.50 per book, $0.63 per coupon or $1.88 per ride all day pass. FY12 = 8 sold)  $600 for 50 books (Discounted value is $12 per book, $0.60 per coupon or $1.80 per ride all day pass. FY12 = 5 sold).  $1,125 for 100 books (Discounted value is $11.25 per book, $0.56 per coupon or $1.69 per ride all day pass. FY12 = 1 sold) Typical Purchasers/Users  Recordation of who is purchasing Discount Coupon Books is not formally tracked.  According to sale agents, typical purchasers are: weekend/weekly Visitors, Parents whose kids are staying in OC for the summer, Businesses, Hotels (i.e. Clarion Resort), Group Coordinators (i.e. Cheer Leaders), Seasonal and Year-round Workers, and a few local churches to help those in need. Sale Trends  October through April = Approximately 200 books sold per month  May through September = Approximately 2,000 books sold per month  Since July 2009 sales/revenue has been steadily declining. (FY10 $232,180 / FY11 $224,775 / FY12 $191,899)  As of 3/13/13 FY13 revenue is $133,465. Projected FY13 revenue is $200,000.  FY14 Projected revenue is $172,700

Internal Coupon Book Supply and Purchase Costs  Transportation attempts to maintain on-hand stock of 12,000 - 24,000 coupon books.  Transportation last ordered 12,000 books in December 2011 at a cost of $2,411, or $0.20 per book.  Currently, there are approximately 7,500 coupon books on-hand. Based on past sale history, this might sustain us thru August 2013.  Transportation is currently poised to order an additional 12,000 coupon books due to anticipated demand for product. If Bus Discount Coupon Books were to be eliminated: Cons o May upset “typical purchasers/users” o May impose additional financial hardship on those of “limited means”. Pros o Eliminates profit-making opportunities related to the re-sale of bulk coupon books purchased at discounted prices and then re-sold up-to face value to individuals. o Increased bus fare revenue estimated at $50,000 for FY14. (In FY12, 12,754 coupon books were sold containing 20 coupons per book = 225,080 coupons x $1 per boarding = $255,080 – $191,899 (FY12 discount coupon book revenue) = $63,181 difference) o Elimination of expenses associated with product purchase (roughly $3,000 per year) and account maintenance, recordation and reconciliation by staff members. Note: There is no expiration date for bus discount coupons. If discontinued, and if Transportation is instructed not to replenish supplies, the MCC may need to set a “cut off” date for sale and use of discount coupons/books. (As of 3-27-13 there are approx. 7,500 books on hand).

3-27-13 BC

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS G. Public Works Director Request to Fund AVL Hardware and Software for Bus Fleet

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4G April 9, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Hal O. Adkins, Director of Public Works Purchase AVL Hardware & Software April 3, 2013 Request to purchase new hardware/software for AVL system Air-Trak is the current provider of AVL services for the transit system. They were notified by their data carrier that they will no longer be able to support the current operating platform. Data services for Air-Trak hardware will be decommissioned as of June of 2013, requiring us to purchase new hardware and software from Air-Trak in order to continue operating an AVL system. Discontinuing this program will create an inability to oversee the transit system and a decrease in efficiency.

ISSUE(S): SUMMARY:

FISCAL IMPACT:

A one-time capital investment of $16,250 (not specifically funded but sufficient funds are available) and an annual operating cost of $8,732.50 (already funded). Approve the request. Do not approve. George Thornes, Superintendent of Transportation Jennie Knapp, Budget Manager Nancy Bloxom, IT Manager Bob Dimaio, Electronic Services Manager Susan Childs, Internal Auditor Brian Connor, Assist. Superintendent of Transportation Steve Bartlett, Transportation Operation’s Manager Air-Trak price quote for hardware & software services

RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH:

ATTACHMENT(S):

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS H. Public Works Director Request to allocate funds for Humane Society Building Repairs

25166

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4H April 9, 2013

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Hal O. Adkins, Public Works Director Ocean City Humane Society Structure Renovations/Repairs to the Facility April 3, 2013 Completion of repairs to the Humane Society structure. This Town facility was constructed in 1989. Minor levels of maintenance have been performed over the years. The structure is in need of specific renovations as outlined on the attached list. Request to utilize funding that was set aside in account “HUMANE”, in the amount of $60,000. Use of these funds eliminates the need to fund these requests in FY’14. Proceed with the repairs. Consider funding in FY 2014. Hal O. Adkins, Public Works Director Bill Bratten, Public Works Construction Manager Dean Dashiell, Senior Project Manager Jennie Knapp, Budget Manager Renovations List

ISSUE(S): SUMMARY:

FISCAL IMPACT:

RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH:

ATTACHMENT(S):

Renovations List

(1) Strip roof of shingles. Repair rotted plywood. Install new felt and ice/water shield. Reshingle roof. (2) Replace damaged gutters/downspouts. (3) Replace damaged and non-operable windows. (4) Repair rusted out kennel cage piping. (5) Remove and replace damaged drywall ceiling above tub area (due to roof leak) (6) Repair glass front door. (7) Repair by replacement rusted out interior door panels. (8) Replace HVAC condenser unit. (9) Misc. painting, etc.

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS I. Second Reading – Ordinance 2013-07 to Amend Chapter 30 Entitled Environment (imposes resident agent requirement as part of a plan for compliance for rental properties with noise violations)

TOWN OF

The White Marlin Capital of the World
Agenda Item # Council Meeting 4I April 9, 2013

TO: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Resident Agent Requirement for Rental License/Noise Permit April 2, 2013 Second reading of ordinance to amend resident agent requirement of City Code, Section 30-402. On February 19, 2013, Ordinance 2013-01 was ratified allowing resident agents for rental license noise permits to reside in the State of Maryland within 30 miles of Ocean City. The attached ordinance will amend Section 30-402 again, removing the resident agent requirement for rental properties but imposing that requirement as part of an approved compliance plan for rental properties with documented noise violations.

ISSUE(S): SUMMARY:

FISCAL IMPACT: RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH: ATTACHMENT(S):

None Change current code to require resident agent information as part of a compliance plan as directed by the Noise Board. Keep the current code. Mike Sherman, License Inspector Guy R. Ayres, City Solicitor Ordinance 2013-07

First Reading _ _ _ _ _ _ _ __ Second Reading _ _ _ _ _ _ __ ORDINANCE 2013 AN ORDINANCE TO AMEND CHAPTER 30, ENTITLED ENVIRONMENT, OF THE CODE OF THE TOWN OF OCEAN CITY, MARYLAND NOW, THEREFORE, BE IT ENACTED AND ORDAINED THAT CHAPTER 30, ENTITLED ENVIRONMENT, OF THE CODE OF THE TOWN OF OCEAN CITY, MARYLAND BE, AND IT IS HEREBY AMENDED BY REPEALING AND REENACTING WITH AMENDMENT SUBSECTION 30-402 (a)(3), AS FOLLOWS: Sec. 30-402. (a) ... Required information; issuance.

(3) If required as part of an approved plan for compliance pUl'suant to subsection 30-403(b), hereof, the name, address and telephone number of a resident agent, who must reside in the State of Maryland within 30 miles of Ocean City (if there is no owner who maintains a permanent residence in Ocean City). If a resident agent is required but is not provided, any notices provided for hereunder shall be filed in the office of the City Clerk of Ocean City, with a copy thereof mailed (certified mail, return receipt) to the last known address of the property owner.

INTRODUCED at a meeting of the City Council of Ocean City, Maryland held on April!,2013. ADOPTED AND PASSED, by the required vote of the elected membership of the City Council and approved by the Mayor at its meeting held on April 15,2013. ATTEST:

LAW OffiCES AYRES, JENKINS, GORDY & ALMAND, P.A. 6200 COASTAL HIGHWAY OCEAN CITY, MD 21842 SUITE 200

KELLY ALLMOND, Clerk Approved as to form:

RICHARD W. MEEHAN, Mayor

LLOYD MARTIN, President

GUY R. A YRES III, City Solicitor

MARY P. KNIGHT, Secretary

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, APRIL 9, 2013 4. NEW BUSINESS J. Presentation of FY 14 Financial Operating Plan by City Manager David Recor, ICMA-CM

TOWN OF

The White Marlin Capital of the World

TO: FROM: RE: DATE:

The Honorable Mayor and Members of the City Council David L. Recor, ICMA-CM, City Manager Preliminary Town of Ocean City FY14 Financial Operating Plan April 5, 2013

Attached for the Mayor and City Council’s review and discussion on the April 9, 2013, Work Session Agenda, please find a CD containing the complete raw budget data from the Town’s AS400 mainframe as prepared by Department Heads, the Budget Manager and City Manager. As of this date, the Preliminary Town of Ocean City FY14 Financial Operating Plan totals $130,396,993 as follows: Fund General Water Wastewater Transportation Airport Golf Course Convention Center IT Service Center Vehicle Trust Risk Management TOTAL Budget $78,272,716 $7,432,931 $12,638,289 $9,764,890 $1,488,873 $2,145,848 $6,981,045 $1,859,753 $5,298,117 $2,229,590 $2,284,941 $130,396,993

In the Fall of 2012, the Mayor and City Council initiated a much anticipated strategic planning process by collaborating with staff and community residents to create a 15-year Vision for the Town of Ocean City. In addition, 5-year Goals for the community were established as follows: 1) 2) 3) 4) 5) Financially Sound Town Government 1st Class Resort and Tourist Destination More Livable Community for Residents Excellent Service Through a High Performing Town Organization Revitalized Ocean City: Development and Redevelopment

The Town of Ocean City FY14 Financial Operating Plan attempts to recognize these 5-year Goals as well as the tentative Priorities established by the Policy and Management Agenda identified in the Strategic Planning process. While the CD provided includes complete preliminary budget details from the Department to City Manager level, the traditional Budget Book, featuring a narrative highlighting revenue

Preliminary Town of Ocean City FY14 Financial Operating Plan Page 2 and personnel changes, changes in Department operations as well as summary comments will be provided at the Work Session on April 9. Department budget reviews have been scheduled with the Mayor and City Council for Thursday, April 11, Friday, April 12, Tuesday, April 16, and Wednesday, April 17. In addition, two wrap-up Work Sessions are scheduled for Thursday, April 18 and Friday, April 19. The preliminary FY14 General Fund budget totals $78,272,716 and is based on the Constant Yield Tax Rate of .4620 plus an additional .0244 for a total preliminary tax rate of .4864. Based on an average assessed value of $221,000, the average tax bill would increase by $39.56 when compared to the 2013 tax rate of .4685. Reaching this preliminary FY14 General Fund budget figure required a great deal of collaboration and cooperation with our Departments. Together, staff reduced proposed expenditures by more than $4.2 million dollars including $3 million in personnel and operating expenditures in addition to $1.2 million dollars in proposed new vehicle purchases. These expenditure reductions were equivalent to .0330 on the preliminary tax rate. Both the FOP and IAFF bargaining unit contracts have been ratified and are scheduled to be presented to the Mayor and City Council at the Regular Session on April 15, 2013. The costs of year one of both collective bargaining agreements as well as an equivalent average salary adjustment for general employees has been included in the preliminary FY14 General Fund budget. Other noteworthy preliminary FY14 General Fund expenditures include: Expense Employee salary adjustments FOP, IAFF and General Employee Roof replacement at the Public Safety Building and 65th Street Garage Principal & Interest – 2012 Bonds Six (6) positions in Fire/EMS Transfer to Airport FICA on salary adjustments TOTAL $924,508 $871,000 $796,985 $292,462 $109,955 $70,725 $3,015,635

In addition, “Pay As You Go” Street Paving has been reduced by $830,000, i.e., from $2 million to $1,170,000. During our initial review of the preliminary FY14 Financial Operating Plan, staff will be prepared to discuss a number of opportunities to increase revenues and/or decrease expenditures including: 1) 2) 3) 4) Additional parking revenue Solid Waste funding alternatives Transportation service reductions Stormwater Utility

Preliminary Town of Ocean City FY14 Financial Operating Plan Page 3 We will also be prepared to discuss the Town’s Capital Improvement Plan, including the categories and value of unfunded projects, as well as the $735,000 of unfunded “Pay as You Go” projects planned for FY14. We look forward to working with the Mayor and City Council as we begin this dialogue. If you have any questions prior to the Work Session on April 9, please do not hesitate to contact me. cc: Jennie Knapp, Budget Manager Department Heads

April 2013
Sunday
7

Monday
8

Tuesday
9

Wednesday
10

Thursday
11

Friday
12

Saturday
13

Work Session 1:00 PM Budget Presentation

1:00 PM Water/Wastewater Golf Course/ OCCC/ Museum/Purchasing Vehicles/Transportation Airport IT/Risk

1:00 PM Engineering P&Z/Construction Insp Recreation/Programs/Parks Beach Patrol/Special Events Festivals/Tourism Emergency Services
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Council Meeting 6:00 PM

1:00 PM Police/EMS Fire Marshal/Volunteers Mayor/City Clerk/Legal/HR City Manager/Finance Special Appropriations

1:00 PM PW Admin PW Construction PW Maintenance Solid Waste

9:00 AM
Budget Wrap Up

1:00 PM

Budget Wrap Up

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Town of Ocean City: Strategic Plan
VISION 2028
OCEAN CITY 2028 is a Vibrant Coastal Resort Community with a World Class Public Beach and Waterways and an Authentic Historic Boardwalk -- the Choice of Today’s Families. OCEAN CITY 2028 is Safe and Clean, has Quality Neighborhoods for Residents, is Accessible and Easy Travel, and is a place for Enjoyable Experiences for All.

GOALS 2018
Financially Sound Town Government 1st Class Resort and Tourist Destination More Livable Community for Residents Excellent Service through a High Performing Town Organization Revitalized Ocean City: Development and Redevelopment

POLICY AGENDA 2013
Top Priority Pedestrian Safety/Master Plan: Evaluation, Direction, Town’s Role, Actions Alternative Revenue Sources: Identification, Evaluation, Direction Tax Differential: Analysis, Direction Parking Needs Study: Evaluation, Recommendations, Direction, Funding Services with the County Canal Dredging: Direction, Funding Tourism Evaluation and Market Analysis: Direction High Priority Retirement/Pensions Policy Compensation and Benefits: Policy Direction, Funding Changing Facility at Park and Ride Location Private Events: Inventory, ROI Analysis, Town’s Role, Policy Direction Bike Share Program: "Best Practices", Options, Direction, Funding Dedicated Bus Lane: Direction, Funding Five-Year Capital Improvement Plan: Development Road Re-Surfacing Plan: Review, Project Priority, Direction, Funding Additional Parking Revenues: Report, Direction

MANAGEMENT AGENDA 2013
Top Priority Beach Replenishment: Direction, Actions, Funding Citywide Five-Year Financial Plan with Revenues/ Expenditures Projections Dual Route 90 Bridge: Advocacy, Funding Comprehensive Plan: Update Election System Upgrade: Evaluation, Direction, Funding High Priority Police Department Organization Study Headquarters for Beach Patrol: Direction, Funding Succession Planning: Development Personnel Rules and Regulations Reward System for Top Performers

Copyright © 2013: Lyle Sumek Associates, Inc. DRAFT 3/7/13

MANAGEMENT IN PROGRESS 2013
Capital Improvement Budget Impact of Healthcare Reform Labor Contracts: Police Fire Budget with Constant Yield General Employees: Compensation Decision Police Chief: Selection Labor Negotiations: Police, Fire Web-based Building Permits and Business Licenses Strategic Planning: Institutionalization Solid Waste Amendment on Town Role: Recycling GIS Development Proposal Document Imaging Interim Operation Plan for Fire Station Downtown Land Acquisition by Town Sustainable Communities Plan

MAJOR PROJECTS 2013
Performing Arts Building Project Boardwalk Project Airport Improvements Caroline Street Comfort Station Shower/Foot Additional Public Boat Ramp: Relocation, Expansion Performing Arts Theater Project Fire Station 4 Fire Headquarters St. Louis Avenue Improvements

TOWN OF OCEAN CITY MISSION
The MISSION OF TOWN GOVERNMENT is to provide Personal Caring Municipal Services and to serve as a Responsive Host to Our Guests and Residents while acting in a Financially Responsible Manner delivered by a Professional Town Workforce.

Copyright © 2013: Lyle Sumek Associates, Inc. DRAFT 3/7/13

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