MAYORANDCITYCOUNCIL

WORKSESSION
Tuesday,September10,20131:00P.M. AClosedSessionisscheduledfrom12:001:00P.M.todiscusslegalmatters.

AGENDA
1. 2. 3. COMMENTSFROMTHEPUBLIC
AnypersonwhomaywishtospeakonamatterscheduledfordiscussionontheWorkSessionAgenda maybeheardduring Comments from the Public for a periodof three (3)minutes orsuch time asmay be deemed appropriate by the Council President. Anyone wishing to be heard shall state their name, addressandtheAgendaitemonwhichheorshewishestospeak.

CALLTOORDER REPORTONCLOSEDSESSIONSeptember10,201312:00p.m.

4. 5. ADJOURN E. FY14PensionandRetireeHealthFundContributionspresentedbyFinanceAdministrator D. BudgetManagerDiscussionofFY13BudgetAmendment#2 C. RequestforApprovaltoPurchaseaTurfAeratorpresentedbyFinanceAdministrator B. RequesttoPurchaseSurplusCityPropertyat3529AtlanticAvepresentedbyCityEngineer A. BidOpeningDesignProposalsforBeachPatrolHeadquarters NEWBUSINESS

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 2. Report on Closed Session September 10, 2013 12:00 p.m. 1:00 p.m. - Legal Matters

NOTICE OF CLOSED SESSION OF MAYOR & CITY COUNCIL OF OCEAN CITY DATE AND TIME: PLACE: SUBJECT: VOTE: Tuesday, September 10, 2013 12:00 p.m. City Hall Legal 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, 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 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, September 10, 2013, a closed session was held on Tuesday, September 10, 2013, at 12:00 p.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 Matters (b) Persons present: Mayor Richard Meehan City Manager David Recor Council President Lloyd Martin Council Secretary Mary Knight Council Members Doug Cymek; Margaret Pillas; Brent Ashley; Dennis Dare and Joe Mitrecic City Solicitor Guy Ayres Executive Office Associate Diana Chavis

Action(s) taken:

Motion to close meeting:

H:\Wpdoc\closedsess.wpd

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 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, SEPTEMBER 10, 2013 4. NEW BUSINESS A. Bid Opening Design Proposals for Beach Patrol Headquarters

List of Beach Patrol Headquarters Design Firms: Atlantic Planning and Design AWB Becker Morgan Bignel Watkins Hasser Buchart Horn David A. Quillen Davis, Bowen, & Freidel Design Atlantic Fisher Architects George Miles & Buhr Iott Architects Jeff Schoellkopf MADD Engineering Steven Cirile

ADDENDUM NUMBER 2 DATE: August 15, 2013

TOWN OF OCEAN CITY Engineering Department Beach Patrol Headquarters - Design Services

This Addendum is issued to clarify, add to, delete from, correct and/or change the Contract Documents to the extent indicated and is hereby made a part of said contract documents on which the Contract will be based. Acknowledge receipt of the Addendum by inserting its number and date on the Construction Bid Form. Failure to do so may subject offer to disqualification.

Issued by: Town of Ocean City, MD

_________________________ Terence J. McGean, P.E. City Engineer

ADDENDUM NO: 2Error! Reference source not found. Beach Patrol Headquarters - Design Services AD2-1: The proposal due date has been postponed indefinitely:

End of Addendum 1

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 4. NEW BUSINESS B. Request to Purchase Surplus City Property at 3529 Atlantic Avenue presented by City Engineer

TOWN OF

The White Marlin Capital of the World

Agenda Item # Council Meeting 4B Sept 10, 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, PE, City Engineer Request to Purchase City Owned Property at 3529 Atlantic Ave, Parcel A September 4, 2013 Proposed sale of City owned property. Mr. & Mrs. McCormack, the adjacent property owners to a 10 x 120 city owned parcel of land at the east end of 36th Street (Parcel A on the enclosed Plat) are requesting to purchase the property from the City. Additional revenue from the negotiated purchase price and placing the parcel on the City tax roll. Move forward with the property sale by requesting an appraisal Do not sell the property; place the property up for auction. Terry McGean, City Engineer Hal Adkins, Public Works Director Tom Shuster, Recreation and Parks Director. 1) 2) 3) 4) Email from McCormack requesting sale Plat Photo Copy of City policy for transferring property

ISSUE(S): SUMMARY:

FISCAL IMPACT:

RECOMMENDATION: ALTERNATIVES: RESPONSIBLE STAFF: COORDINATED WITH:

ATTACHMENT(S):

Dear Mr. McGean, We have been referred to you by Ken Jordan in Planning and Zoning to acquire a small strip of land adjacent to our Townhouse Unit 1 and the City's side walk at 36th street. We are forwarding Ken's email which has attached the City plot map. We want to acquire Parcel "A" next to Unit 1 on the far left side of the plot map. We have also attached our photo of the property which shows the side of our Townhouse Unit 1, Parcel A, the City sidewalk and the street. Parcel A is 8 3/4 feet wide by 56 feet which is adjacent to our Townhouse Unit 1 lot. It consists of an 8 1/2 by 27 foot concrete slab butting up to our concrete wall and 8 1/2 by 29 feet of vegetation which we maintain. Our address is 3529 Atlantic Ave. (Sea Village Unit 1) which we have owned since 1998. Excess lots similar to Parcel A appear in many other locations in the City such as 31, 32, 78, 79, 90, 91, 143, 144 streets, etc. In talking with neighbors and realtors over the years, we have heard that the City has transferred many of these lots to the adjacent homeowners, the ones who naturally have the greatest interest in them. These acquisitions allowed the City to bring the land onto the City's tax rolls. We understand that Townhouse Unit 15 at the other end of our street acquired Parcel B (identical to Parcel A) from the City approximately 15 years ago. Our intent is to keep Parcel A as is and to prevent a third party from acquiring this plot and doing something that may adversely affect our existing property. We would appreciate you advising us how to proceed with the acquisition. We will be happy to meet with you or your staff at any time to discuss this. Thank you, Robert and JoEllen McCormack 3529 Atlantic Ave. (Sea Village Unit 1) 410-723-3187 Dear Mr. McGean, We have a correction to make to our email of Friday, August 23. We miss-read the plot map. The length of Parcel A is 120 feet, not 56 feet. The portion covered by vegetation is 93 feet not 29 feet. Rob and JoEllen McCormack 3529 Atlantic Ave. (Sea Village 1) 410-723-3187

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 4. NEW BUSINESS C. Request for Approval to Purchase a Turf Aerator presented by Finance Administrator

TOWN OF

The White Marlin Capital of the World

Agenda Item # Council Meeting 4C Sept. 10, 2013

TO: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Request to purchase Turf Aerator August 29, 2013 Request approval to purchase a Turf Aerator as budgeted. Parks Maintenance is requesting approval to purchase a Turf Aerator as budgeted in the FY14 Vehicle Trust Equipment. Equipment will be shared between the Recreation Dept and Eagles Landing Golf Course. The pricing for the equipment is based upon Baltimore County Public Schools Contract #JMI-60610: Grounds Maintenance Equipment and is below budget estimate of $24,000. $23,916.00 Approve purchase. Purchase later at possible higher rate without piggy backing on Baltimore County contract. Martha J. Bennett, Finance Administrator Calvin Ginnavan, Parks Superintendent Tom Shuster, Director of Parks & Recreation Memo

ISSUE(S): SUMMARY:

FISCAL IMPACT: RECOMMENDATION: ALTERNATIVES:

RESPONSIBLE STAFF:

COORDINATED WITH: ATTACHMENT(S):

MEMORANDUM
TO: Tom Shuster FROM: Calvin Ginnavan DATE: August 29, 2013 RE: Vehicle Trust Equipment purchase FY 2013-14 $24,000 was approved in the current FY 2013-14 Vehicle Trust Equipment budget for the purchase of a Turf Aerator. The aerator will be a shared use piece of equipment; therefore, one half ($12,000) of the estimated purchase price is included in the Park Division budget and the remaining half in the Eagles Landing Golf Course budget. The shared use of this equipment will ensure the machine is utilized to its fullest capacity while allowing both entities to realize the benefits of reduced soil compaction and improved water infiltration in turf areas. Parks staff and golf course staff have demonstrated and compared all models in this equipment class and recommend this purchase based on cost, dealer service and overall satisfaction. Please accept this memo as my recommendation that the Town purchase the Rexidem Verti-Drain 7416 Turf Aerator via government contract pricing from the Vehicle Trust Equipment FY 2013-14 budget based upon the following: Horizon Distributors is a sole source supplier in the Mid-Atlantic region for Rexidem as the manufacturers distribution areas are protected. The Verti-Drain 7416 has applicable government award contract pricing based upon Baltimore County Public Schools Contract #JMI-606-10: Grounds Maintenance Equipment. Equipment is below budget estimates.

As has been the practice for the past several years I am recommending we make this purchase using government contracts already awarded for these items. This is proven to be the best pricing option available for obtaining the maximum government discount. Government discount rates remain unchanged for this fiscal year. Please forward this recommendation so a purchase order for this equipment can be issued. Once the purchase order is received, I will process the order. If you have any questions please be sure to contact me. Suggested supplier Rexidem Verti-Drain 7416 Turf Aerator Horizon Distributors $23,916.00

16031 Industrial Drive, Gaithersburg, MD 20898

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 4. NEW BUSINESS D. Budget Manager Discussion of FY13 Budget Amendment #2

TOWN OF

The White Marlin Capital of the World

Agenda Item # Council Meeting 4D 9/10/13

TO: THRU: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager Jennie Knapp FY 13 Budget Amendment #2, Introduction 9/10/13

ISSUE(S): SUMMARY:

Introduction of Budget Amendment #2 for FY 13 The budget amendment recognizes additional revenue from Income Tax, Admissions Tax, Room Tax and Cable TV Franchise to reduce the amount needed from fund balance for the fiscal year. In addition, the amendment adjusts other revenue and expense line items for fiscal year FY 13. The amount taken from prior year reserves (fund balance) decreases $827,570 from $3,809,250 approved in Budget Amendment # 1 for FY 13. The total amount to be taken from prior year reserves is $2,981,680 for FY 13. Approval of Budget Amendment #2 for FY 13 None Jennie Knapp, Budget Manager Not applicable 1) 2) 3) 4) Budget amendment ordinance Detail of changes Reconciliation of Hurricane Sandy expenses Power Point Presentation

FISCAL IMPACT:

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

Budget Amendment # 2 General Fund

Revenue Changes
Property Taxes Other Taxes Licenses and Permits From Other Agencies Service Charges Fines & Forfeitures Other Revenue Appropriated Fund Balance Total Increases $ (18,000) $ 927,570 $ 121,414 $ 1,084,989 $ (12,742) $ 87,165 $ 60,046 $ (827,570) $ 1,422,872

Expenditure Changes
FEMA Reimbursement Advertising Grants Legal Fees Donations Postage Forfeiture Funds Towing Expense Lightning Strike Expenses Subtotal for expenditure changes $ 545,251 $ 559,022 $ 122,790 $ 133,628 $ 115,631 $ 58,000 $ 51,376 $ 68,189 $ 27,267 $1,681,154

Expenditure Changes (continued)

Air Show Expenses Beach Boys Deposit Critical Areas Funds Strategic Planning Miscellaneous Increases Total Increases $ 35,000 $ 30,000 $ 21,414 $ 14,297 $ 18,577 $1,800,442

Less Convention Center savings (149,704) Less Public Safety savings (227,866) Total Budgeted Increases $1,422,872

Water and Wastewater Funds

Water Fund:
FEMA reimbursement in the amount of $12,153 to cover overtime costs related to Hurricane Sandy

Wastewater Fund:
Recognition of $170,462 from Prior Year Reserves to fund Spring infrastructure upgrades Recognition of $25,000 Fixture Charges and $35,944 Service to West Ocean City to cover the purchase of a ground penetrating radar device, the sewer repair on 60th street, interdepartmental labor and overtime costs Recognition of $24,107 FEMA reimbursement to cover costs related to Hurricane Sandy

Transportation, Airport and Golf Course Funds

Transportation:
Overall fund reduction of $55,805. Bus revenue reductions were offset by increases in boardwalk tram revenue and a state unemployment grant $77,701 reduction in Unemployment expense offset $21,896 expense increases

Airport:
$ 3,093 insurance reimbursement to repair lightning damage to scales

Golf Course:
FEMA reimbursement of $5,359 for expenses related to Hurricane Sandy Insurance reimbursement of $2,377 for lightning strike damage

Convention Center Fund

Convention Center:
Increases:
FEMA reimbursement for hurricane damages Insurance reimbursement for hurricane damages Insurance reimbursement for fire damages Total Increases $ 91,546 $ 42,251 $ 16,231 $150,028

Reductions:
Savings in salaries and benefits Savings in energy, maintenance, etc. Total Reductions ($198,938) ($175,182) ($374,120)

Net reductions:

($224,092)

IT, Service Center and Vehicle Trust Funds

IT:
$30,898 lightning strike insurance reimbursement $22,000 appropriation of fund balance for AS400 purchase

Service Center:
$99,693 reduction of estimate for fuel and parts revenue offset by reduction of purchases for resale

Vehicle Trust:
($174,518) reduction of FY 13 MTA grants to actual ($ 17,000) reduction of cellular antenna rental revenue

Changes from Budget Amendment # 2: General Fund Revenue:

Property Taxes Other Taxes Licenses and Permits Revenue From Other Agencies Charges for Services Fines and Forfeitures Other Revenue (18,000) Real Property Taxes 927,570 150,000 Income Tax; 127,570 Admissions Tax 650,000 Room Tax 121,414 100,000 Cable TV Franchise; 20,000 Critical Areas Mitigation Funds; 1,414 Stormwater Mitigation Funds 1,084,989 545,251 FEMA Reimbursement; 359,022 State Tourism 122,790 Public Safety Grants; 57,926 Street Aid (12,742) 93,718 EMS Fees; 57,000 Special Event & Festival; 68,000 Recreation; (125,840) Parking; (103,000) Liquor Board; (2,620) Boat Ramp Fees 87,165 88,189 Tow Fines; 51,376 Forfeiture Funds; (27,270) Municipal Infractions; (25,130) Parking Fines 60,046 71,386 Bench donations; 35,292 Paramedic Foundation 27,267 Insurance proceeds; 26,256 asset sales; 13,397 radio tower commissions; 7,156 commissions; 7,009 Miscellaneous revenue; 8,953 donations; 2,697 ATM (139,367) interest (827,570) Recognition of other revenue allows reduction of amount to be taken from fund balance 1,422,872

Appropriated Fund Balance

General Fund Expenses:

General Government 261,658 58,000 Postage; 90,000 General legal fees; 30,000 P&Z legal fees; 14,297 Strategic Planning; 40,000 Tow Sign purchase; 15,000 Tax differential study; 13,628 Tax sale legal fees; 733 Miscellaneous increases 66,634 122,790 Public Safety grants; 18,528 FEMA reimbursement 51,376 Forfeiture funds; 27,267 Insurance proceeds; 41,595 donations; 28,189 towing expense; 2,755 misc. revenue; 2,000 Construction Inspection printing and advertising (227,866 salary and benefit savings) (9,108) 253,527 FEMA reimbursement; 71,386 boardwalk bench donations; 20,000 Critical Areas Mitigation funds; (317,674) to other Public Works' divisions; (15,799) Winterfest; (20,548) Springfest (175,650) (109,926) salary savings; (29,909) benefit savings; (56,884) unemployment; + 21,069 FEMA reimbursement 863,490 243,267 FEMA reimbursement; 642,342 savings from other divisions to cover additional hurricane expenses; 1,414 Stormwater fees for intern; (21,256) Springfest: (277) Winterfest; (2,000) to Construction Inspection 774,373 359,022 Tourism grant; 156,730 Winterfest; 47,477 Springfest; 30,000 Beach Boys deposit; 1,350 Transfer from Special Events' division; (20,206) savings to Public Works; 200,000 advertising expense. (208,821) 35,000 Air Show expenses; 8,860 FEMA reimbursement 2,739 Donations; (140,654) to Winterfest; (5,673) to Springfest; (107,743) to Public Works; (1,350) Springfest ice (149,704) (86,367) Energy; (50,000) Equipment Maintenance; (13,337) Interdepartmental Labor 1,422,872

Public Safety

Public Works/Beach Maintenance

Sanitation & Waste Removal Highways & Streets

Economic Development - Tourism

Culture and Recreation Transfer to Convention Center

Water Fund Revenue:

Revenue From Other Agencies

12,153 FEMA Reimbursement

Water Fund Expenses:

Personal Services Non-Personal Services (31,510) 12,153 FEMA reimbursement for overtime; (43,303) savings in salaries and benefits 43,663 20,000 Equipment maintenance; 12,153 Contracted Services; 7,510 Operational Supplies; 4,000 Vehicle expenses 12,153

Transportation Fund Revenue:

Bus Revenue Train Revenue Federal and State Grants (109,174) (73,371) Bus passenger revenue; (39,069) bus advertising 3,266 insurance claim payments 29,275 51,915 boardwalk tram passenger revenue; (22,640) tram advertising 24,094 State Unemployment grant (55,805)

Transportation Fund Expenses:

Personal Services Non-Personal Services (77,701) Unemployment 21,896 12,011 Vehicle parts; 7,100 supplies; 2,281 Energy; 504 Miscellaneous expenses (55,805)

Wastewater Fund Revenue:

Wastewater Treatment Charges Service Charges Revenue From Other Agencies Prior Year Reserves 25,000 Recognition of fixture charges to cover ground penetrating radar device 35,944 Service to West Ocean City 24,107 FEMA reimbursement 170,462 To fund Spring infrastructure upgrades approved by MCC at 2/12/13 work session 255,513

Wastewater Fund Expenses:

Personal Services Non-Personal Services Capital Outlay 16,871 10,371 FEMA reimbursement for overtime; 3,500 interdepartmental labor; 3,000 overtime 212,433 170,462 spring infrastructure upgrades; 30,000 60th Street sewer repair; 13,736 FEMA reimbursement for generator repair (1,765) transfer to capital outlay 26,209 24,444 Ground penetrating radar device; 1,765 transfer to cover overages in Wastewater capital projects 255,513

Airport Fund Revenue:

Rents and Other Revenue 3,093 Lightning strike insurance reimbursement

Airport Fund Expenses:

Non-Personal Services 3,093 Repair lightning damage to scales

Golf Course Fund Revenue:

Other Revenue 7,736 5,359 FEMA reimbursement; 2,377 Lightning strike insurance reimbursement 5,359 Hurricane-related salary expense 2,377 Maintenance and supplies related to 08/25/12 lightning strike 7,736

Golf Course Fund Expenses:

Personal Services Non-Personal Services

Convention Center Fund Revenue:

Service Charges State and County Grants Transfer In From General Fund Insurance Claim Payments (69,702) (28,995) Hall Rental; (40,707) Service Charges (63,168) 91,546 FEMA reimbursement; (154,714) State operating grant (149,704) Reduction due to expenses under budget 58,482 16,231 insurance for fire damages; 42,251 insurance for hurricane-related damages (224,092)

Convention Center Fund Expenses:

Personal Services Non-Personal Services Capital Outlay (198,938) (72,581) Retirement; (46,846) Overtime; (37,472) health insurance; (21,501) Interdepartmental Labor; (8,000) Unemployment; (8,766) FICA; (3,772) Full-Time salaries (158,951) (86,367) Energy; (51,900) Equipment maintenance; (9,885) Communications; (9,500) Advertising; (1,299) Contracted Services 133,797 91,546 FEMA reimbursement for Convention Center Boardwalk and Sunset Room; 42,251 insurance reimbursement for Sunset Room damage (224,092)

Information Technology Fund Revenue:

Insurance Claim Payments Prior Year Reserves 30,898 Lightning strike insurance reimbursement 22,000 AS400 Purchase 52,898

Information Technology Fund Expenses:

Personal Services Non-Personal Services 1,294 Interdepartmental Labor 51,604 22,000 AS400 Purchase; 30,898 Lightning strike damage (1,294) to cover interdepartmental labor 52,898

Service Center Fund Revenue:

Service Charges to Other Funds (99,693) (127,819) Fuel revenue; (75,864) Parts revenue; 103,990 labor revenue

Service Center Fund Expenses:

Personal Services

Non-Personal Services

6,440 8,430 Full-Time Salaries; 669 Part-Time Salaries; 955 Interdepartmental Labor; 910 Overtime; 4,080 Retirement 314 ICMA match; 5,288 Unemployment; (2,974) FICA (5,541) Health insurance; (5,691) Retiree health insurance (106,133) (99,693) Purchases for resale fuel and parts; (6,440) Building & Equipment maintenance (99,693)

Vehicle & Equipment Trust Fund Revenue:

Service Charges to Other Funds State and Federal Grants (17,000) Antenna revenue (174,518) Reduction of FY 13 MTA grants for bus purchase to actual (191,518)

Vehicle & Equipment Trust Fund Expenses:

Non-Personal Services Capital Outlay 61,603 33,216 Reinstall radio equipment on water tower 4,000 Cellular antenna fee evaluation; 24,387 Radio testing equipment (253,121) (33,216) cover reinstallation of radio equipment; (4,000) cover cellular antenna fee evaluation; (24,387) cover purchase of radio testing equipment; (17,000) cover antenna revenue reduction; (174,518) reduction of FY 13 MTA bus purchase grants (191,518)

Hurricane Sandy

Fund General Water Wastewater Transportation Airport Golf Course OCCC IT Purchasing

Total Expenses 1,001,978.08 26,003.12 37,465.05 13,001.13 2,556.83 10,847.62 210,323.37 6,691.10 17,644.41 1,326,510.71

Budgeted Expenses 214,369.92 13,762.56 13,358.05 3,699.46 819.07 4,345.37 3,556.02 3,798.75 4,149.82 261,859.02

FEMA Insurance Cost to Reimbursement Proceeds Cover 545,251.00 0.00 242,357.16 12,153.00 0.00 87.56 24,107.00 0.00 0.00 0.00 0.00 9,301.67 0.00 0.00 1,737.76 5,359.00 0.00 1,143.25 91,545.62 42,251.20 72,970.53 0.00 0.00 2,892.35 0.00 0.00 13,494.59 678,415.62 42,251.20 343,984.87

ORDINANCE 2013TOWN OF OCEAN CITY OPERATING BUDGET FISCAL YEAR 2013

SOURCE Section I, General Fund: A. Anticipated Revenue: Property Taxes Other Taxes Licenses and Permits Revenue From Other Agencies Charges For Services Fines and Forfeitures Other Revenue Prior Year Reserves Total Revenue B. Anticipated Expenditures: General Government Public Safety Public Works/Beach Maintenance Sanitation and Waste Removal Highways and Streets Economic Development -Tourism Culture and Recreation Debt Service Sub Total To Transportation Fund To Airport Fund To Convention Center Fund To Vehicle Trust To Capital Projects Total Expenditures

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

41,442,940 $ 14,588,755 3,921,363 4,440,489 8,731,492 675,000 826,106 3,809,250 78,435,395 $

41,424,940 $ 15,516,325 4,042,777 5,525,478 8,718,750 762,165 886,152 2,981,680 79,858,267 $

41,424,940 15,516,325 4,042,777 5,525,478 8,718,750 762,165 886,152 2,981,680 79,858,267

3,666,245 $ 33,662,945 5,212,513 5,568,131 4,919,317 7,227,878 7,601,107 4,551,710 72,409,846 $ 1,927,997 125,977 1,483,575 488,000 2,000,000 78,435,395 $

3,927,903 $ 33,729,579 5,203,405 5,392,481 5,782,807 8,002,251 7,392,286 4,551,710 73,982,422 $ 1,927,997 125,977 1,333,871 488,000 2,000,000 79,858,267 $

3,927,903 33,729,579 5,203,405 5,392,481 5,782,807 8,002,251 7,392,286 4,551,710 73,982,422 1,927,997 125,977 1,333,871 488,000 2,000,000 79,858,267

SOURCE Section II, Water Fund: A. Anticipated Revenue: Water Sales Water Fixture Charge Service Charges Capacity/Impact Fees Revenue From Other Agencies Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Debt Service Capital Outlay Total Expenditures $ $

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

3,349,934 $ 3,486,777 186,794 55,440 0 161,966 7,240,911 $

3,349,934 $ 3,486,777 186,794 55,440 12,153 161,966 7,253,064 $

3,349,934 3,486,777 186,794 55,440 12,153 161,966 7,253,064

1,926,770 $ 3,180,256 1,068,885 1,065,000 7,240,911 $

1,895,260 $ 3,223,919 1,068,885 1,065,000 7,253,064 $

1,895,260 3,223,919 1,068,885 1,065,000 7,253,064

Section III, Transportation Fund: A. Anticipated Revenue: Bus Revenue Train Revenue Federal and State Grants Capital Asset Sales Transfer-In From General Fund Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Capital Outlay Total Expenditures $ 3,653,751 $ 3,691,966 1,737,159 9,082,876 $ 3,576,050 $ 3,713,862 1,737,159 9,027,071 $ 3,576,050 3,713,862 1,737,159 9,027,071 $ 2,945,077 $ 1,073,051 3,069,840 12,930 1,927,997 53,981 9,082,876 $ 2,835,903 $ 1,102,326 3,093,934 12,930 1,927,997 53,981 9,027,071 $ 2,835,903 1,102,326 3,093,934 12,930 1,927,997 53,981 9,027,071

SOURCE Section IV, Wastewater Fund: A. Anticipated Revenue: Wastewater Treatment Charges Service Charges Build America Bond Subsidy Revenue From Other Agencies Capacity/Impact Fees Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Debt Service Capital Outlay Total Expenditures $ $

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

11,041,867 $ 958,578 133,381 0 96,800 151,604 12,382,230 $

11,066,867 $ 994,522 133,381 24,107 96,800 322,066 12,637,743 $

11,066,867 994,522 133,381 24,107 96,800 322,066 12,637,743

4,199,765 $ 3,527,048 3,555,417 1,100,000 12,382,230 $

4,216,636 $ 3,739,481 3,555,417 1,126,209 12,637,743 $

4,216,636 3,739,481 3,555,417 1,126,209 12,637,743

Section V, Airport Fund: A. Anticipated Revenue: Fuel Sales Rents and Other Revenue State and Federal Grants Service Charges Transfer-In From General Fund Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Debt Service Capital Outlay Total Expenditures $ 311,695 $ 1,132,160 146,082 450,000 2,039,937 $ 311,695 $ 1,135,253 146,082 450,000 2,043,030 $ 311,695 1,135,253 146,082 450,000 2,043,030 $ 729,600 $ 351,530 427,500 108,000 125,977 297,330 2,039,937 $ 729,600 $ 354,623 427,500 108,000 125,977 297,330 2,043,030 $ 729,600 354,623 427,500 108,000 125,977 297,330 2,043,030

SOURCE Section VI, Municipal Golf Course Fund: A. Anticipated Revenue: Service Charges Sales and Concessions Other Revenue Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Transfer to General Fund Capital Outlay Total Expenditures

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

1,737,052 $ 446,097 56,628 28,370 2,268,147 $

1,737,052 $ 446,097 64,364 28,370 2,275,883 $

1,737,052 446,097 64,364 28,370 2,275,883

1,046,401 $ 1,048,586 150,758 22,402 2,268,147 $

1,051,760 $ 1,050,963 150,758 22,402 2,275,883 $

1,051,760 1,050,963 150,758 22,402 2,275,883

Section VII, Convention Center Fund: A. Anticipated Revenue: Service Charges State and County Grants Food & Beverage Tax Transfer-In From General Fund Prior Year Reserves Insurance Claim Payments Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Debt Service Transfer to Debt Service Reserves Capital Outlay Total Expenditures

1,813,428 $ 1,549,102 1,110,000 1,483,575 1,150,534 0 7,106,639 $

1,743,726 $ 1,485,934 1,110,000 1,333,871 1,150,534 58,482 6,882,547 $

1,743,726 1,485,934 1,110,000 1,333,871 1,150,534 58,482 6,882,547

2,967,379 $ 1,710,950 2,328,310 100,000 0 7,106,639 $

2,768,441 $ 1,551,999 2,328,310 100,000 133,797 6,882,547 $

2,768,441 1,551,999 2,328,310 100,000 133,797 6,882,547

SOURCE Section VIII, Information Technology Fund: A. Anticipated Revenue: Service Charges To Other Funds Insurance Claim Payments Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Capital Outlay Total Expenditures $ $

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

1,743,443 $ 0 44,841 1,788,284 $

1,743,443 $ 30,898 66,841 1,841,182 $

1,743,443 30,898 66,841 1,841,182

920,978 $ 867,306 0 1,788,284 $

922,272 $ 918,910 0 1,841,182 $

922,272 918,910 0 1,841,182

Section IX, Service Center Fund: A. Anticipated Revenue: Service Charges To Other Funds Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services Debt Service Capital Outlay Total Expenditures $ 1,825,261 $ 3,558,307 0 0 5,383,568 $ 1,831,701 $ 3,452,174 0 0 5,283,875 $ 1,831,701 3,452,174 0 0 5,283,875 $ 5,360,362 $ 23,206 5,383,568 $ 5,260,669 $ 23,206 5,283,875 $ 5,260,669 23,206 5,283,875

SOURCE Section X, Vehicle & Equipment Trust Fund: A. Anticipated Revenue: Service Charges To Other Funds State and Federal Grants Sale of Assets Transfer In From General Fund Prior Year Reserves Total Revenue B. Anticipated Expenditures: Non-Personal Services Debt Service Transfers Out Capital Outlay Total Expenditures $ $

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

2,344,992 $ 3,602,793 150,000 488,000 140,833 6,726,618 $

2,327,992 $ 3,428,275 150,000 488,000 140,833 6,535,100 $

2,327,992 3,428,275 150,000 488,000 140,833 6,535,100

785,721 $ 0 0 5,940,897 6,726,618 $

847,324 $ 0 0 5,687,776 6,535,100 $

847,324 0 0 5,687,776 6,535,100

Section XI, Risk Management Fund: A. Anticipated Revenue: Service Charges To Other Funds Interest Earned Prior Year Reserves Total Revenue B. Anticipated Expenditures: Personal Services Non-Personal Services/Claims Capital Outlay Total Expenditures $ 236,940 $ 1,938,749 0 2,175,689 $ 236,940 $ 1,938,749 0 2,175,689 $ 236,940 1,938,749 0 2,175,689 $ 2,109,754 $ 65,081 854 2,175,689 $ 2,109,754 $ 65,081 854 2,175,689 $ 2,109,754 65,081 854 2,175,689

SOURCE Section XII, Pension Trust Funds: A. Anticipated Revenue: Employer Contributions Employee Contributions Investment Earnings Total Revenue B. Anticipated Expenditures: Benefit Payments Non-Personal Services Reserve for Employee's Retirement Total Expenditures Section XIII, OPEB Trust Funds: A. Anticipated Revenue: Employer Contributions Employee Contributions Investment Earnings Total Revenue B. Anticipated Expenditures: Benefit Payments Non-Personal Services Reserve for Retiree Health Total Expenditures

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

6,128,044 $ 1,715,000 3,925,000 11,768,044 $

6,128,044 $ 1,715,000 3,925,000 11,768,044 $

6,128,044 1,715,000 3,925,000 11,768,044

4,225,000 $ 600,000 6,943,044 11,768,044 $

4,225,000 $ 600,000 6,943,044 11,768,044 $

4,225,000 600,000 6,943,044 11,768,044

3,858,750 $ 155,000 235,000 4,248,750 $

3,858,750 $ 155,000 235,000 4,248,750 $

3,858,750 155,000 235,000 4,248,750

850,000 $ 55,000 3,343,750 4,248,750 $

850,000 $ 55,000 3,343,750 4,248,750 $

850,000 55,000 3,343,750 4,248,750

SOURCE Section XIV, General Capital Projects Fund: A. Anticipated Revenue: General Fund Contribution Bond Proceeds Inlet Lot Parking Revenue Total Revenue B. Anticipated Expenditures: Street Paving Reserve for Future Capital Projects Total Expenditures $ $

AMENDMENT # 1 SECOND READING

AMENDMENT # 2 FIRST READING

AMENDMENT # 2 SECOND READING

2,000,000 0 290,000 2,290,000 $

2,000,000 0 290,000 2,290,000 $

2,000,000 0 290,000 2,290,000

2,000,000 290,000 2,290,000 $

2,000,000 290,000 2,290,000 $

2,000,000 290,000 2,290,000

Section XIV, All Funds Expenditure Summary: General Fund Water Fund Transportation Fund Wastewater Fund Airport Fund Municipal Golf Course Fund Convention Center Fund Management Information Services Fund Service Center Fund Vehicle & Equipment Trust Fund Risk Management Fund Pension Trust Funds OPEB Trust Fund Sub Total LESS: Interfund Transfers Total Expenditures Capital Projects Fund - General Grand Total $ $ $ 78,435,395 $ 7,240,911 9,082,876 12,382,230 2,039,937 2,268,147 7,106,639 1,788,284 5,383,568 6,726,618 2,175,689 11,768,044 4,248,750 150,647,088 $ (27,570,894) 123,076,194 $ 2,290,000 125,366,194 $ 79,858,267 $ 7,253,064 9,027,071 12,637,743 2,043,030 2,275,883 6,882,547 1,841,182 5,283,875 6,535,100 2,175,689 11,768,044 4,248,750 151,830,245 $ (27,304,497) 124,525,748 $ 2,290,000 126,815,748 $ 79,858,267 7,253,064 9,027,071 12,637,743 2,043,030 2,275,883 6,882,547 1,841,182 5,283,875 6,535,100 2,175,689 11,768,044 4,248,750 151,830,245 (27,304,497) 124,525,748 2,290,000 126,815,748

Section XV, Special Authorization - Budget Manager: The Budget Manager shall be authorized to reallocate departmental appropriations among the various objects of expenditures as she deems necessary. Such changes shall be approved by the Finance Administrator & City Manager. Section XVI, Restrictions - City Manager: A. The utilization of any contingency appropriation shall be accomplished only with prior authorization from the Mayor and Council. B. Utilization of appropriations established in the Capital Improvement Fund may be accomplished only with the express approval of the Mayor and Council. Section XVII, Tax Rate: An Ad Valorem Tax Rate of $0.4585 per $100 of assessed valuation of real property and a rate of $1.29 per $100 of assessed valuation of corporate and personal property tax is required to fund this budget. INTRODUCED at a meeting of the City Council of Ocean City, Maryland held on September 16, 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 October 7, 2013.

DAVID L. RECOR, CITY MANAGER

RICHARD W. MEEHAN, MAYOR

KELLY L. ALLMOND, CITY CLERK

LLOYD MARTIN, PRESIDENT

MARY P. KNIGHT, SECRETARY ADOPTED: Date MOTION TO ADOPT BY: MOTION SECONDED BY: VOTE: FOR: AGAINST:

WORK SESSION -MAYOR AND CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 4. NEW BUSINESS E. FY14 Pension and Retiree Health Fund Contributions presented by Finance Administrator

TOWN OF

The White Marlin Capital of the World

Agenda Item # Council Meeting 4E Sept. 10, 2013

TO: FROM: RE: DATE:

The Honorable Mayor, Council President and Members of Council David L. Recor, ICMA-CM, City Manager FY-14 Pension and Retiree Health Contribution August 29, 2013 Request approval to make contributions to the retiree health funds. pension and

ISSUE(S):

SUMMARY:

At their meeting on August 28, the Pension Trustees voted to request that the Council make the actuarial recommended contributions of $3,331,300 for the Public Safety Plan; $2,351,374 for the General Employees Plan, and $3,617,000 for the Other Post-Employment Benefit Trust Fund (retiree health) for fiscal year 2014. This is $14,256 less than was budgeted for FY-14. The contributions were calculated using a 10-year, level percent of pay, open gain/loss basis. I recommend that the contributions to the plans be divided into three payments with one-third paid in October, November, and December 2013.

FISCAL IMPACT: RECOMMENDATION:

$9,299,674 Make the actuarial recommended contribution and divide the contributions into three payments. Make one lump sum payment in December 2013. Martha J. Bennett, Finance Administrator Wayne Evans, Human Resource Director None

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