june 24 2014 complete agenda

8/12/2019 June 24 2014 Complete Agenda

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MAYORANDCITYCOUNCILWORKSESSION

Tuesday,June24,20141:00P.M.

AClosedSessionisscheduledfrom12:001:00P.M.todiscusslegalandcontractualmatters.AGENDA

1. CALLTOORDER2. REPORTONCLOSEDSESSIONTuesday,June24, 201412:001:00p.m.3. ACKNOWLEDGEMENTSANDRECOGNITIONS

A. RetirementRecognitionofWilliamBryanBishop,Jr.,FireEMSCaptain

4.

COMMENTSFROM

THE

PUBLIC

AnypersonwhomaywishtospeakonamatterscheduledfordiscussionontheWorkSessionAgendamaybeheardduringCommentsfromthePublicforaperiodofthree(3)minutesorsuchtimeasmaybedeemedappropriatebytheCouncilPresident. Anyonewishingtobeheardshallstatetheirname,addressandtheAgendaitemonwhichheorshewishestospeak.

5. NEWBUSINESSA. DiscussionofMemorandumofUnderstandingbetweentheMayor,CityCouncilandWorcester

CountyCommissionerspresentedbyCityManagerandPublicWorksDirector

B. RequesttoApproveOffPremiseDirectionalSignpresentedbyRinaThaler,OCCenterforthe

ArtsExecutive

Director

C. OtherPostEmploymentBenefits(OPEB)ActuarialReportpresentedbyKevinBinderand

RosanneCalzetta,BoltonPartners

D. FundingPoliciesforPensionandOPEBTrustFundspresentedbyFinanceAdministrator

E. 2013AnnualReportpresentedbyPlanningandCommunityDevelopmentDirector

F. BidAwardRecommendationforClassificationandBenefitsStudypresentedbyHuman

Resources

Director

G. StrategicPlanUpdatepresentedbyCityManager

6. ADJOURN


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WORK SESSION -MAYOR AND CITY COUNCIL

TUESDAY, JUNE 24, 2014

2. Report on Closed Session June 24, 2014 12:00 p.m.

1:00 p.m. Legal and Contractual Matters


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NOTICE OF CLOSED SESSION OF MAYOR & CITY COUNCIL OF OCEAN CITY

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 isnot 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 potentiallitigations;

9. Conduct collective bargaining negotiations or consider matters that relate to the

negotiations;

10. Discuss public security if the public body determines that public discussionwould 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 imposedrequirement that prevents public disclosures about a particular proceeding or

matter; or

X

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 discussionor disclosure would adversely impact the ability of the public body to participate

in the competitive bidding or proposal process

DATE AND TIME: Monday, June 24, 2014 12:00 p.m.

PLACE: City Hall

SUBJECT: Legal and Contractual Matters

VOTE: UNANIMOUS

OTHER: FOR:

AGAINST:

ABSTAIN:

ABSENT:


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REPORT OF CLOSED SESSION

OF THE MAYOR AND CITY COUNCIL OF OCEAN CITY

Prior to the open session of the Mayor and City Council being held on Tuesday, June

24, 2014, a closed session was held on Tuesday, June 24, 2014. 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 and Contractual Matters

(b) Persons present:

Mayor Richard Meehan

City Manager David RecorCouncil President Lloyd Martin

Council Secretary Mary Knight

Council Members Doug Cymek; Margaret Pillas; Brent Ashley; Dennis Dare andJoe Mitrecic

City Solicitor Guy AyresTourism Director Donna Abbott

Executive Office Associate Diana Chavis

Action(s) taken:

Motion to close meeting:

Time adjourned:


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3. ACKNOWLEGEMENTS AND RECOGNITIONS

A. Retirement Recognition of William Bryan Bishop, Jr.,Fire-EMS Captain


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IN APPRECIATION OF BRYAN BISHOP25 YEARS OF SERVICE

BRYAN BISHOP has contributed Twenty-five (25)years of dedicated service to the Town of Ocean City, where he beganhis career in 1989; and

WHEREAS, Bryan Bishop has played an integral role in the Fire-EMSDepartment for the Town of Ocean City for 25 years; and

WHEREAS, Bryan managed the vehicle fleet for the EmergencyServices Department, seeing that our current fleet was properly

maintained and working on specifications for the purchase of newvehicles. Bryan has been an excellent supervisor as he carried outthe mission of the department and looked out for the personnel hesupervised; and

WHEREAS, Bryan Bishops skill and experience have beeninstrumental in the overall success of the Fire-EMS Department forthe Town of Ocean City, Maryland.

NOW, THEREFORE, I, Richard W. Meehan, Mayor of the Town ofOcean City, Maryland, along with the Ocean City Council, do herebycommend Bryan for his Twenty-five (25) years of devoted service andwish him a happy and healthy retirement.

IN WITNESS WHEREOF, I have hereunto set my hand and causedthe Great Seal of the Town of Ocean City, Maryland to be affixed this24thday of June in the year of Our Lord two thousand and fourteen.

______________________________RICHARD W. MEEHANMayor


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4. 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.


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5. NEW BUSINESSA. Discussion of Memorandum of Understanding between the

Mayor, City Council and Worcester County Commissioners

presented by City Manager and Public Works Director


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TOWN OF

T h e Wh i t e M a r l i n Ca p i t a l o f t h e Wo r l d

TO: The Honorable Mayor, Council President and Members of CouncilFROM: David L. Recor, ICMA-CM, City ManagerRE: Memorandum of Understanding between the Mayor, Council and Worcester

County CommissionersDATE: June 19, 2014

ISSUE(S): Spray irrigation system at Eagles Landing Golf Course

SUMMARY: The Mayor, City Council and Worcester County Commissionershave reached an agreement, documented in a Memorandum of

Understanding (MOU), to work together on the construction ofnew spray irrigation system at Eagles Landing Golf Course.

This system will allow the treated wastewater effluent from thenew Mystic Harbour Wastewater Treatment Facility to be storedand spray irrigated on golf course lands.

The MOU benefits the City by providing a new irrigation systemfor Eagles Landing Golf Course and benefits the County byproviding an environmentally beneficial means for effluent reuse.

FISCAL IMPACT: For the City: capital improvements, credit for equity and futurecapital charges and compensation for 40 years of EDU charges

for a benefit valued at approximately $ 2,092,544.

RECOMMENDATION: Moving forward with construction, installation and utilization ofthe irrigation system.

ALTERNATIVES: None

RESPONSIBLE STAFF: Hal Adkins, Public Works DirectorJim Parsons, Public Works Chief Deputy DirectorSusan Petito, Recreation and Parks DirectorJoe Perry, Golf Course SuperintendentBob Croll, Head Golf Professional

COORDINATED WITH: Not applicable

ATTACHMENT(S): Memorandum of Understanding

Agenda Item # 5A

Council Meeting June 24, 2014


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5. NEW BUSINESSB. Request to Approve Off-Premise Directional Sign presented

by Rina Thaler, OC Center for the Arts Executive Director


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TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilFROM: David L. Recor, ICMA-CM, City ManagerRE: Consideration of Directional Sign for OC Center for the ArtsDATE: June 16, 2014

ISSUE(S): Request to approve off-premise directional sign

SUMMARY: Rina Thaler, Executive Director of OC Center for the Arts, isrequesting permission to place an off-premise directional signpanel on the 94thStreet Ocean Plaza Mall pylon sign.

Off-premise signs are prohibited; however, Town Code 66-16,entitled Exemptions, provides the City Council with the authorityto approve off-premise non-advertising signs.

FISCAL IMPACT: Not applicable

RECOMMENDATION: Approve off-premise traffic sign.

ALTERNATIVES: No staff alternatives suggested.

RESPONSIBLE STAFF: Blaine Smith, Zoning Administrator

COORDINATED WITH: Not applicable

ATTACHMENT(S): 1) Sign specs2) Town Code regarding off-premise signage

Agenda Item # 5B



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(a)

(b)

(c)

(1)

(2)

(3)

(4)

a.

b.

(5)

Sec. 66-7. Location and clearance; off-premises signs.

Ground signs.It shall be unlawful to erect a ground sign higher than 40 feet above street

level.

Roof signs.It shall be unlawful to erect a roof sign with its biggest point more than 24 feetabove the roof level and its face nearer than five feet to the outside wall towards which the

sign faces. All roof signs shall have a space at least six feet in height between the base of

the sign and the roof level and have at least five feet of clearance between the vertical

supports thereof.

Off-premises signs.All off-premises signs, the same being signs advertising a product,

service or business not located on the same premises as the sign, are prohibited.

(Code 1972, 85-7)

Sec. 66-16. Exemptions.

The provisions and regulations of the chapter shall not apply to the following signs; provided,however, that said signs shall be subject to the provisions of sections 66-6 and 66-10:

Bulletin boards for public, charitable or religious institutions, memorial signs or tablets

when cut into any masonry surface or when constructed of noncombustible materials.

Municipal, state or county signs, legal notices, traffic signs and such other

nonadvertising signs as may be approved by the City Council.

"For sale" or "for rent" signs not exceeding ten square feet in area when on the

premises.

A-frame signs on the boardwalk of Atlantic Avenue, only between the dates of

September 15 and May 15, except that from May 1 to May 15 and from September 15

to September 30 said signs shall not be allowed on weekends or holidays, includingSunfest, and provided that:

Said signs do not exceed 12 square feet in area per side; and

Said signs may extend no more than five feet from the western edge of the

boardwalk of Atlantic Avenue.

Off-premises advertising signs on public property by express permission of the Mayor

and City Council.

(Code 1972, 85-16; Ord. No. 2000-33, 12-4-2000; Ord. No. 2001-9, 6-4-2001)

Editor's note

Upon the effective date of this section 66-16, the Department of Planning and Community

Development shall advise all new applicants for signs that additional amendments to the sign

ordinance are to be considered, and that if passed into law, signs permitted on or after theeffective date hereof may not be "grandfathered" as a nonconforming sign.

Page 1 of 1Municode

6/16/2014https://library.municode.com/print.aspx?h=&clientID=12833&HTMRequest=https%3a%2...


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5. NEW BUSINESSC.Other Post-Employment Benefits (OPEB) Actuarial Report

presented by Kevin Binder and Rosanne Calzetta, Bolton

Partners


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TOWN OF

The White Marlin Capital of the World

Agenda Item# 5C


TO: The Honorable Mayor, Council President and Members of Council

THRU: David L. Recor, ICMA-CM, City Manager

FROM: Martha Bennett, Finance Administrator

RE: Post-Employment Medical Benefits Actuarial Valuation

DATE: June 6, 2014

ISSUE(S): Presentation of the Town of Ocean City, Maryland Post-EmploymentMedical BenefitsActuarial Valuationdated May 2, 2014.

SUMMARY: Per the report, the employer contribution for retiree health benefitswas decreased from $3,604,000 for FY2014 to $3,083,000 forFY2015. A projected increase in medical cost was more than offset bydecreases due to updated demographic data, favorable claimsexperience, and updating the rate of change in per capita health claimcosts over time per the Society of Actuaries Long-Run Medical CostTrend Model.

FISCAL IMPACT: Reduction in employer contribution of $521,000.

RECOMMENDATION: Not applicable. Valuation was used to determine employercontribution for FY15 budget.

ALTERNATIVES Not applicable

RESPONSIBLE STAFF: Martha Bennett, Finance Administrator

COORDINATED WITH: Kevin Binder, F.S.A., M.A.A.A., Consultant, for Bolton Partners, Inc.He is a Member of the American Academy of Actuaries and meets theQualification Standards of the American Academy of Actuaries torender the actuarial opinion.

ATTACHMENT(S): PowerPoint prepared by Actuarial Consultant Kevin Binder


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Prepared

by

Bolton

PartnerJune2


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Why an Actuarial Valuation & GA

AccountingStandardforPostRetiremeBenefits

Tier2GovernmentsliketheTownofOcwere

required

to

implement

the

new

sta

FY2009

RequiresAccrualAccountinginsteadofAccounting(meaningtheexpenseshou

an

employee

works

not

after

they

retire)

Bolton Partners, Inc.


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HowDoesanActuarialValuatiDeterminethePresentValueofBenefits(P

ThePVB isthe$amountthatwouldbesufallfuturepromisedbenefits

Basedon

the

assumptions

Doesnotincludefuturehires

ForEmployeesAllocatethePVBbetween

Pastservice(theActuarialAccruedLiability

This

year

(the

Normal

Cost) Thefuture(futureNormalCosts)

Differentactuarialfundingmethodsforthis



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HowDoesanActuarialValuatiForretireestheAALisequaltothePVB

TheActuarialAccruedLiabilityMinusTrutheUnfundedActuarialLiability(UAL)

Theannual

accrual

expense

is

equal

to

the

Normalcostplus

Amortization paymentoftheUAL



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What is the Towns Benefit?Retireespay20%ofcost

Spousesarenotcovered

Eligibility hiredbeforeJuly1,2005

General age

55/30

years

or

age

65/15

years

PublicSafety Anyage/25yearsor age55/1

Eligibility hiredJuly1,2005orlater General age55/30yearsorage65/25years

PublicSafety Anyage/25years



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What is the Towns Benefit?Wastewaterclosedgrouppay10%ofpremi

EmployeeshiredafterJuly1,2011andhave

yearsof

service,

receive

abenefit

amount

o$625/monthincreasedamaximumof3%p

untiltheyreach65



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Assumptions Used in FY2015-FY

Valuation

MedicalTrend UsingtheSocietyofActuabaselinemodel themodelisupdatedann

7%

discount

rate

24yearamortizationofunfundedliability4%peryear(estimatedpayrollgrowth)

Biggestuncertaintyismedicaltrend



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The Real Cost

Thetotalliabilityisthepresentvalueofthepostretirementcashflow

Actuarialassumptionswillnotchangetheflow(onlytheestimates)

Sincethereisatrustfundwithinvestment

thefuture

costs

are

offset

by

trust

fund

earn



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The Bottom Line FYE 2014 (prior v

FYE 2015-2016 (new valuationFYE2014 FYE2015

Employees 513 496

Retirees 108 125

Accrued

Liability $46,079,000 $48,305,000 $Assets $15,501,000 $19,305,000 $

UnfundedAL $30,578,000 $29,000,000 $

AnnualRequiredContribution ARC

Amortizationof

Accrued

Liability

$1,803,000 $1,324,000

NormalCost $1,674,000 $1,759,000

Total $3,617,000 $3,083,000



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ExpenseReconciliationAnnu

FY2014 3,

ExpectedIncrease 1

Demographic Experience (9

Claims Experience (15

ChangeinMedical TrendAssumption (3

ChangeinActuarial FundingMethod (6

FY2015 3,0



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APeakIntotheFutureGASBhasannouncedthatitwillproposer

GASB45(ExposureDrafttobeissuedthism

Thechangeswillbesimilartothechanges

pensionstandard

ThepensionstandardchangeswillbeeffecandOPEBchangeareproposedtobeFY20

TheUAL(currently$29million)willmove

footnote

to

the

balance

sheetTheannualexpensewillbevolatile

ThecurrentfundingpolicycanstaythesamBolton Partners, Inc.


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QUESTIONS?


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5. NEW BUSINESSD.Funding Policies for Pension and OPEB Trust Funds

presented by Finance Administrator


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TOWN OF

The White Marlin Capital of the World

Agenda Item# 5D


TO: The Honorable Mayor, Council President and Members of Council

THRU: David L. Recor, ICMA-CM, City Manager

FROM: Martha Bennett, Finance Administrator

RE: Pension Plans and Other Post Employment Benefit Trust Funding Policies

DATE: May 28, 2014

ISSUE(S): Three (3) new funding policies for Policy and Procedure Manual

SUMMARY: These policies set formal guidelines for funding the Employees of Ocean

City, MD Pension Plan, the Public Safety Employees Pension Plan, andOther Post Employment Benefit Trust (OPEB). They were approved byour Pension Trustees, Ed Koebel of Cavanaugh Macdonald Consulting,LLC (our actuaries), Kevin Binder of Bolton Partners, Inc. and areconsistent with the Town's actual practice since establishment of theplans and OPEB Trust.

The new Government Accounting Standards no longer provide guidanceon how to calculate an annual required contribution (ARC) which theTown previously used to budget the pension plan and retiree healthcontributions each year. Establishing a funding policy is importantbecause it:

1) Lays out a plan to fund the pension plans and OPEB Trust, withdifferent objectives for each plan;

2) Provides guidance in making annual budget decisions;3) Demonstrates prudent financial management practices;4) Reassures bond rating agencies; and5) Shows employees and the public how pensions and OPEB Trust will

be funded.

FISCAL IMPACT: None

RECOMMENDATION: Approve funding policies.

ALTERNATIVES Do not approve funding policies.

RESPONSIBLE STAFF: Martha Bennett, Finance Administrator

COORDINATED WITH: Wayne Evans, Human Resources DirectorEd Koebel, Principal, Cavanaugh Macdonald Consulting, LLCKevin Binder, Consultant, Bolton Partners, Inc

ATTACHMENT(S): PPM 880-12; 800-13; 800-14


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TOWN OF OCEAN CITYOCEAN CITY, MARYLAND

POLICY AND PROCEDURE MANUAL

SECTION: FinancePPM 800-12 SUBJECT: Public Safety Employee

Pension Plan

Funding Policy

The purpose of this Funding Policy is to state the overall objectives for the Ocean

City, Maryland Public Safety Employees Pension Plan (Plan), the benchmarks that will

be used to measure progress in achieving those goals, and the methods and

assumptions that will be employed to develop the benchmarks. It is the intent of the City

Council that the Funding Policy outlined herein will remain unchanged until the

objectives below are met.

I. Funding Objectives

The goal in requiring employer and member contributions to the Plan is to

accumulate sufficient assets during a members employment to fully finance the benefits

the member is expected to receive throughout retirement. In meeting this objective, the

Plan will strive to meet the following funding objectives:

To develop a pattern of stable or decreasing contribution rates expressed as a

percentage of employer payroll and measured by valuations prepared inaccordance with principles of practice prescribed by the Actuarial Standards

Board.

To maintain an increasing funded ratio (ratio of actuarial value of assets to

actuarial accrued liabilities) that reflects a trend of improved actuarial condition.

The long-term objective is to attain a 100% funded ratio over a reasonable period

of future years.

To maintain adequate asset levels to finance the benefits promised to members

and monitor the future demand for liquidity.

To promote intergenerational equity for taxpayers with respect to contributions

required for the benefits provided by the Plan.

II. Measures of Funding Progress

To track progress in achieving the Plans funding objectives,the following measures

will be determined annually as of the actuarial valuation date (with due recognition that a

single years results may not be indicative of long-term trends):

Page 1 of 3


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Funded ratioThe funded ratio, defined as the actuarial value of assets divided

by the actuarial accrued liability, should increase over time, before

adjustments for changes in benefits, actuarial methods, and/or actuarial

adjustments.

Unfunded Actuarial Accrued Liability (UAAL)

o Transitional UAAL The UAAL established as of the initial valuationdate for which this funding policy is adopted shall be known as the

Transitional UAAL.

o New Incremental UAAL Each subsequent valuation will produce a

New Incremental UAAL consisting of all benefit changes, assumption and

method changes and experience gains and/or losses that have occurred

since the previous valuations.

UAAL Amortization Period

o The transitional UAAL will be amortized over a closed 10 year period

beginning on the initial valuation date for which this funding policy is

adopted.

o Each New Incremental UAAL shall be amortized over a closed 10 year

period beginning with the year it is incurred.

o The amortization of UAAL will be developed using the level dollar

methodology.

Employer Contribution Rates

o In each valuation subsequent to the adoption of this funding policy the

required employer contribution rate will be determined as the summation

of the employer normal cost rate, a contribution rate for administrative

expenses, the amortization rate for the Transitional UAAL and theindividual amortization rate for each of the New Incremental UAAL bases.

o In no event shall the employer contribution rate be less than the employer

normal cost rate plus the contribution rate for administrative expenses.

o The valuation methodology, including the amortization of the Unfunded

Actuarial Accrued Liability (UAAL), would be expected to maintain

reasonably stable contribution rates.

III. Methods and Assumptions

The annual actuarial valuations providing the measures to assess funding progresswill utilize the actuarial methods and assumptions last adopted by the City Council based

upon the advice and recommendations of the actuary. These include the following

primary methods and assumptions:

The actuarial cost method used to develop the benchmarks will be the Projected

Unit Credit (PUC) actuarial cost method.

The long-term annual investment rate of return assumption will be 7.50% net of

investment expenses.


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Page 2 of 3

The actuarial value of assets will be determined by recognizing the annual

differences between actual and expected market value of assets over a five-year

period.

The employer contribution rates determined in an annual actuarial valuation will be atleast sufficient to satisfy the annual normal cost of the Plan and amortize the UAAL as a

level dollar amount over a period not to exceed 10 years.

The actuary shall conduct an investigation into the Plan s experience at least every

five years and utilize the results of the investigation to form the basis for recommended

assumptions and methods. Any changes to the recommended assumptions and

methods that are approved by the City Council will be reflected in this Policy.

IV. Funding Policy Progress

The City Council will periodically have actuarial projections of the valuation results

performed to assess the current and expected future progress towards the overall

funding goals of the Plan. These periodic projections will provide the expected valuation

results over at least a 10 year period. The projected measures of funding progress and

the recent historical trend provided in valuations will provide important information for the

Citys assessment of the Plans funding progress.

Date: 6/24/14 Page 3 of 3


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TOWN OF OCEAN CITYOCEAN CITY, MARYLAND


SECTION: FinancePPM 800-13 SUBJECT: Employees Of Ocean City,

MD Pension Plan

Funding Policy

The purpose of this Funding Policy is to state the overall objectives for the

Employees of Ocean City, Maryland Pension Plan (Plan), the benchmarks that will be

used to measure progress in achieving those goals, and the methods and assumptions

that will be employed to develop the benchmarks. It is the intent of the City Council that

the Funding Policy outlined herein will remain unchanged until the objectives below are

met.

This Plan is closed to new members effective April 1, 2011. As such, this Plan

represents a different funding profile than an ongoing plan. The cash needed to meet

the benefit payroll will eventually peak for the Plan and then begin a very slow downward

trend. This will put additional pressure on the liquidity needs of the Plan to satisfy

declining net external cash flow.


The goal in requiring employer and member contributions to the Plan is to

accumulate sufficient assets during a members employment to fully finance the benefits

the member is expected to receive throughout retirement. Once all members are in

retiree status, the goal will switch to develop the required funds needed to meet the

objective of paying all benefits with little if any residual asset value. In meeting these

goals, the Plan will strive to meet the following funding objectives:

To develop a pattern of stable contribution amounts and measured by valuations

prepared in accordance with principles of practice prescribed by the Actuarial

Standards Board.



The long-term objective is to attain a 100% funded ratio over a reasonable period

of future years.




required for the benefits provided by the Plan.

Page 1 of 3


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To track progress in achieving the Plans funding objectives, the following measures

will be determined annually as of the actuarial valuation date (with due recognition that a

single years results may not be indicative of long-term trends):

Funded ratioThe funded ratio, defined as the actuarial value of assets divided

by the actuarial accrued liability, should increase over time, before adjustmentsfor changes in benefits, actuarial methods, and/or actuarial adjustments.

Unfunded Actuarial Accrued Liability (UAAL)

oTransitional UAAL The UAAL established as of the initial valuation

date for which this funding policy is adopted shall be known as the

Transitional UAAL.

oNew Incremental UAAL Each subsequent valuation will produce a

New Incremental UAAL consisting of all benefit changes, assumption

and method changes and experience gains and/or losses that have

occurred since the previous valuations.

UAAL Amortization Period

o The transitional UAAL will be amortized over a closed 10 year period

beginning on the initial valuation date for which this funding policy is

adopted.

o Each New Incremental UAAL shall be amortized over a closed 10 year

period beginning with the year it is incurred.

o The amortization of the UAAL will be developed using the level dollar

methodology.

Employer Contribution Amounts

o In each valuation subsequent to the adoption of this funding policy therequired employer contribution amount will be determined as the

summation of the employer normal cost, a contribution for administrative

expenses, the amortization amount for the Transitional UAAL and the

individual amortization amount for each of the New Incremental UAAL

bases.

o In no event shall the required employer contribution amount be less than

the employer normal cost plus the contribution for administrative

expenses.

o The valuation methodology, including the amortization of the Unfunded

Actuarial Accrued Liability (UAAL), would be expected to maintainreasonably stable contribution amounts.

o Once all members are in retiree status, the employer contribution amount

pattern will switch to generate a reasonable reserve level in relation to

annual projected benefit payments so as to leave little if any residual

asset value when this last benefit payment is made well out into the

future.

Page 2 of 3


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III. Methods and Assumptions

The annual actuarial valuations providing the measures to assess funding progress

will utilize the actuarial methods and assumptions last adopted by the City Council based

upon the advice and recommendations of the actuary. These include the following

primary methods and assumptions:

The actuarial cost method used to develop the benchmarks will be the ProjectedUnit Credit (PUC) actuarial cost method.



The actuarial value of assets will be determined by recognizing the annual

differences between actual and expected market value of assets over a five-year

period.

The actuary shall conduct an investigation into the Plan s experience at least every

five years and utilize the results of the investigation to form the basis for recommended

assumptions and methods. Any changes to the recommended assumptions and

methods that are approved by the City Council will be reflected in this Policy.





results over at least a 10-year period. The projected measures of funding progress and


Citys assessment of the Plans funding progress.

Date: 06/24/14 Page 3 of 3


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TOWN OF OCEAN CITY

OCEAN CITY, MARYLAND


PPM 800-14 SECTION: FinanceSUBJECT: Other Post

Employment Benefits

Trust Funding Policy

The purpose of this Funding Policy is to state the overall objectives for the Ocean

City, Maryland Other Post Employment Benefit Trust, (OPEB Trust), the benchmarks

that will be used to measure progress in achieving those goals, and the methods and

assumptions that will be employed to develop the benchmarks. It is the intent of the CityCouncil that the Funding Policy outlined herein will remain unchanged until the

objectives below are met.


The goal in requiring employer contributions to the OPEB Trust is to accumulate

sufficient assets during a members employment to fully finance the employers share of

benefits the member is expected to receive throughout retirement and/or until the

employee is eligible for Medicare. In meeting this objective, the OPEB Trust will strive to

meet the following funding objectives:

To develop a pattern of stable or decreasing contribution rates measured byvaluations prepared in accordance with principles of practice prescribed by the

Actuarial Standards Board.



The long-term objective is to attain at least an 80 percent funded ratio over a

reasonable period of future years.




required for the benefits provided by the OPEB Trust.


To track progress in achieving the OPEB Trusts funding objectives, the following

measures will be determined biannually as of the actuarial valuation date (with due

recognition that a single years results may not be indicative of long -term trends):


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The actuarial cost method used to develop the benchmarks will be the entry age

normal funding method calculated on an individual basis with level percentage of

payroll.



The actuarial value of assets shall be at market.

Medical trend costs are based on Society of Actuaries Long Term Medical TrendModel baseline assumptions

Demographic assumptions consistent with those used by the Towns pension

plan valuations

The long term investment return assumption will be periodically reviewed. The

assumption should be equal to the weighted average of the long term expected rate of

return of the plans investments by investment class. The weights should be based on

the plans investment policy. For this purpose, the long-term expected rate of return

should be determined net of pension plan investment expense but without reduction for

pension plan administrative expense.





results over at least a 20 year period. The projected measures of funding progress and


Citys assessmentof the Plans funding progress.

Adopted: _________________________________________________


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5. NEW BUSINESSE. 2013 Annual Report presented by Planning and Community

Development Director


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TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Matthew Margotta, Planning and Community Developer DirectorRE: Ocean City Annual Report for 2013DATE: June 18, 2014

ISSUE(S): Annual report as required by Maryland Department of Planning (MDP)

SUMMARY: General requirements for submitting annual reports is found inLand Use Article 1-207. The report is to be approved by the

Planning Commission, submitted to the local legislative body, andsubmitted to MDP.

The Annual Report format follows a worksheet format developed byMDP. This was due to the large variations in responses andinterpretation in report requirements. The focus falls on the numberof new residential permits issued.

The legislative body shall review the annual report and directthat any appropriate and necessary studies and other actions beundertaken to ensure the continuation of a viable planning anddevelopment process. (1-207 (5)(d) Review)

The report will be reviewed by the Planning Commission on July 1and submitted to the MDP on July 2.

FISCAL IMPACT: Not applicable

RECOMMENDATION: Not applicable

ALTERNATIVES: Not applicable

RESPONSIBLE STAFF: Matthew Margotta, Planning and Community Development DirectorBob Nelson, Planner

COORDINATED WITH: Maryland Department of Planning

ATTACHMENT(S): 2013 Draft Annual Report

Agenda Item # 5E



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AnnualReportWorksheet

ReportingforYear2013

1

JurisdictionName: TownofOceanCity,Maryland

PlanningContactName: MatthewMargotta

PhoneNumber: 4102898942

Email: [email protected]

SectionI: AmendmentsandGrowthRelatedChangesinDevelopmentPatterns

(A)Wereanynewcomprehensiveplanorplanelementsadopted? Y N1. Ifno,goto(B).

2. Ifyes,summarizewhatwasadopted.

(B) Werethereanygrowthrelatedchangesindevelopmentpatterns? Y NNote:Growthrelatedchangesindevelopmentpatternsarechangesinlanduse,zoning,

transportationcapacityimprovements,newsubdivisions,newschoolsoradditionsor

changestowater&sewerserviceareas

1. If no,goto(C).

2. Ifyes,summarizeeachgrowthrelatedchange.

(C)Wereanyamendmentsmadetothezoningregulations? Y NWemodifiedthewaywemeasurebuildingheight.Wealsomodifiedthewaywecalculateparkingspacesneeded

forrestaurantsandshoppingcenters.

(D) Wereanyamendmentsmadetothezoningmap? Y N

SectionII:MappingandGISShapefiles

(A)DoesyourjurisdictionuseGIStoprepareplanningmaps? Y N1. Ifno,includeanaddress,parcelidentificationnumberorothermeans

toidentifythetypeandlocationofallnewgrowthrelatedchangesor

zoningmapamendmentslistedinSectionsI(B)andI(D). Providea

papermaps(s)

that

indexes

the

general

location(s)

of

the

growth

relatedchangesorzoningmapamendment(s).ContactMDPfor

mappingassistance.

2. Ifyes,includeamap(s)ofthelocation(s)oftheamendment(s)and

submitapplicableGISshapefilesforallnewgrowthrelatedchanges


56/104


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3

(B) Didyourjurisdictionadoptanyordinancesorregulationsneededtoimplementthe12planningvisions

under1201oftheLandUseArticle? Y N

1. Ifno,gotoSectionV:MeasuresandIndicators.

2.

If

yes,

what

were

those

changes?

SectionV:MeasuresandIndicatorsSKIPlessthan 50newpermitsissued

(Note:TheMeasuresandIndicatorsSections(D)(G)areonlyrequiredforjurisdictionsissuingmorethan50new

residentialbuildingpermitsinthereportingyear.)

(A) IntheTotalcolumninTable1,NewResidentialPermitsIssued(InsideandOutsidethePFA)in(C)

below,enterthetotalnumberofresidentialbuildingpermitsissuedin2013. Enter0ifnonew

residentialbuildingpermitswereissuedin2013.

Note: For annual reporting purposes, tabulate the amount of new residential building

permits issued at the time your jurisdiction was granted the ability for a new residential

unit to be constructed. It does not mean that the unit has been constructed or occupied.

If your local definition of building permit varies, indicate the definition used to tabulate

new residential building permits.)

(B) InthePFAcolumninTable1,enterthetotalnumberofpermitsissuedinsidethePFA.

Enter0ifnonewresidentialbuildingpermitswereissuedinsidethePFAin2013.

(C) IntheNonPFAcolumninTable1,enterthetotalnumberofpermitsissuedoutsidethePFA.

Entera0

ifno

new

residential

building

permits

were

issued

outside

the

PFA

in

2013.

(D) IfthetotalnumberofnewresidentialpermitsinTable1islessthan50,thenTables2Aand2B

areoptionalandcanbeusedtolocallymonitorchangeslessthan50permits.Skipto(E)ifthetotal

numberofnewresidentialpermitsinTable1is50ormore.

Table1:NewResidentialPermitsIssued Inside&OutsidethePFA

Residential PFA NonPFA Total

#NewResidentialPermitsIssued 33 0 33


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4

Table2B:

Amount

of

Commercial

Growth

(Inside

and

Outside

the

PFA)

(E)Weremorethan50newresidentialbuildingpermitsissuedin2012?SKIP Y N

1. If no,thentheremainderofthissectionisoptional.SkiptoSectionVI.

2. Ifyes,completeTables35forResidentialGrowthandTables68forCommercial

Growthin(F)and(G)below.

(F) Amount,NetDensityandShareofResidentialGrowth:

(Note:Tocalculatetheamount,netdensityandshareofresidentialgrowth,jurisdictions

mustidentify

the

total

number

of

new

residential

building

permits

issued;

the

total

number

ofnewresidentialunitsapproved;thetotalnumberofnewresidentiallotsapproved;thetotalapprovedgrossacreageof

newresidentialsubdivisions;andnewlotarea.Anumberofvalues

arerepeatedinTables15.Besuretoenterconsistentvaluesforeachsimilarcategoryusedin

thesetables.)

Table2A:AmountofResidentialGrowth(InsideandOutsidethePFA)

Residential PFA NonPFA Total

#

Units

Approved

#UnitsConstructed

#MinorSubdivisionsApproved SKIP

#MajorSubdivisionsApproved

TotalApprovedSubdivisionArea

(GrossAcres)

#LotsApproved

TotalApprovedLotArea(NetAcres)

Commercial PFA

Non

PFA Total

#NewPermitsIssued

#NewLotsApproved SKIP

TotalSquareFeetApproved(Gross)

TotalSquareFeetConstructed(Gross)


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5

Table3:AmountofResidentialGrowth(InsideandOutsidethePFA)

Table4:NetDensityofResidentialGrowth(InsideandOutsidethePFA)

Table5: ShareofResidentialGrowth(InsideandOutsidethePFA)

Residential PFA

Non

PFA Total

#NewUnitsApproved SKIP

%ofTotalUnits(#Units/TotalUnits) % % 100%

(G) Amount,NetDensityandShareofCommercialGrowth:

(Note:Tocalculatetheamount,netdensityandshareofcommercialgrowth,jurisdictions

mustidentifythetotalnumberofnewcommercialpermitsissued;thetotalsquarefootage

ofthecommercialbuildingapproved;thetotalnumberofcommerciallotsapproved;andthe

totalapprovedsubdivisionnetlotarea,inacres,forcommercialsubdivisions.Thetotalbuilding

squarefootageandtotallotsizevaluesshouldbethesameforTables68.Forannualreport

purposes,allapprovedsquare(gross)shouldbetabulatednotallbuildingsquarefootage

maybeusedforcommercialorretailrelatedactivities.Commercialgrowthshouldinclude

retail,office,hotel,industrialusesandmayincludeotheruseslikemixeduse,institutional

oragriculturalstructures,ifapprovedforcommercialuse.)

Residential PFA

Non

PFA Total

#New

Permits

Issued


#UnitsConstructed

TotalApprovedSubdivisionArea

(GrossAcres)

#LotsApproved

Residential

PFA

Non

PFA

Total


TotalApprovedLotSize(NetAcres)


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6

Table6:AmountofCommercialGrowth(InsideandOutsidethePFA)

Commercial PFA

Non

PFA Total

#PermitsIssued

BuildingSquareFeet(Gross) SKIP

#LotsApproved

TotalSubdivisionArea(GrossAcres)

Table7:NetDensityofCommercialgrowth(InsideandOutsidethePFA)

Table8:ShareofCommercialGrowth(InsideandOutsidethePFA)

Commercial PFA

Non

PFA Total

BuildingSquareFeet(Gross) SKIP

%ofTotalBuildingSF(Bldg.Sq.Ft./TotalSq.Ft.)

SectionVI: LocallyFundedAgriculturalLandPreservation

(A) Howmanyacreswerepreservedusinglocalagriculturallandpreservationfunding?

Entera0ifnolandwaspreserved. 0acres

SectionVII:LocalLandUsePercentageGoal

(A)IsalllandwithintheboundariesofthejurisdictionaPFA? Y N

1.

Ifyes,

the

local

land

use

percentage

goal

does

not

need

to

be

established.

Skip

to

Section

VIII.

2. Ifno,thejurisdictionmustestablishalocalpercentagegoal.Goto(B).

(B) Whatisthejurisdictionsestablishedlocallandusepercentagegoal? SKIP %

(C) Whatisthetimeframeforachievingthisgoal? SKIP ___years

(D) Hastherebeenanyprogressinachievingthegoal? SKIP Y N

(E) WhataretheresourcesnecessaryforinfrastructureinsidethePFA?SKIP

Commercial PFA

Non

PFA Total

Building

Square

Feet

(Gross)

SKIP

TotalLotSize(NetAcres)


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7

(F) WhataretheresourcesnecessaryforlandpreservationoutsidethePFA?SKIP

SectionVIII:DevelopmentCapacityAnalysis(DCA)

(A)HasanupdatedDCAbeensubmittedwithyourAnnualReportortoMDPwithinthe

lastthreeyears? Y N

(Note:ADCAisrequiredevery3yearsandwheneverthereisasignificantchangeinzoning

orlandusepattern.See1208(1)(iii)oftheLandUseArticle. ADCAmaybesubmitted

independentlyfromtheAnnualReport,aspartoftheComprehensivePlan.)1. Ifno,explainwhyanupdatedDCAhasnotbeensubmitted,suchas,therehavebeenno

substantialgrowthchanges.ADCAwillbeincludedwiththenextcomprehensiveplan

2. Ifyes,skipto(C).

(Note:ForadditionalguidanceonhowtoconductaDevelopmentCapacityAnalysis,see

theEstimatingResidentialDevelopmentCapacityAnalysisGuidebook,August2005,on

theMDPwebsiteinthePlanningGuidesection:

http://planning.maryland.gov/OurProducts/publications.shtml#ModelsGuidelines

MDPprovidestechnicalassistancetolocalgovernmentsincompletingDCAs.

(B)WhenwasthelastDCAyousubmitted? Year:2009adoptionofChapters10and11

TheTown

has

not

experienced

any

significant

land

use

and/or

zoning

changes

since

that

time.

(C)AftercompletingtheDCA,providethefollowingdataoncapacityinsideandoutsidethePFAinTable9.

Table9:ResidentialDevelopmentCapacity(InsideandOutsidethePFA)

SectionIX:AdequatePublicFacilityOrdinance(APFO)Restrictions

(ThisSectionneedonly bedonebyjurisdictionswithadoptedAPFOs)

(A) DoesyourjurisdictionhaveanadoptedAPFO? Y N

1.Ifno,skipthissection.

SectionIXcontinued:

Parcels&Lotsw/ResidentialCapacity PFA

Non

PFA Total

ResidentiallyZonedAcres N/A

TotalAcres&Lots N/A

Acres

&

Parcels

with

Capacity

N/A


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8

2.Ifyes,goto(B).

(B)HasanyAPFOresultedinarestrictionwithinthePFA? N/A Y N

1.

If

no,

skip

this

Section.

2. Ifyes,complete(C)(I)belowforeachrestriction.

(C)Whatisthetypeofinfrastructureaffected? (Listeachforschools,roads,water,sewer,

stormwater,healthcare,fire,police,orsolidwaste)

(D)Whereiseachrestrictionlocated?(Identifyonamap) SKIPthissection

(E)Describethenatureofwhatiscausingeachrestriction.

(F)Whatistheproposedresolutionofeachrestriction?

(G)Whatistheestimateddatefortheresolutionofeachrestriction?

(H)Whatistheresolutionthatliftedeachrestriction?

(I)Whenwaseachrestrictionlifted?

Section

X:

Submitting

Annual

Reports

and

Technical

Assistance

(A)Annualreportsmaybesubmittedviaemailtoddahlstrom@mdp.state.md.usormailacopyto:

OfficeoftheSecretary

MarylandDepartmentofPlanning

301WestPrestonStreet,Suite1101

Baltimore,Maryland212012305

Attn:DavidDahlstrom

(B)AnnualReports

should

include

acover

letter

indicating

that

the

Planning

Commission

has

approvedtheAnnualReportandacknowledgingthatacopyhasbeenfiledwiththelegislativebody.

For2013,thePlanningCommissionwillreviewonJuly1st,2014,andforwardtothelegislativebody,

perMDPadviseon06/18/14(DavidDahlstrom,MDP)

Youshouldindicateapointofcontact.

1. WasthisReportapprovedbytheplanningcommission? Y NX


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9

2. Wasthisreportfiledwiththelocallegislativebody? Y N

SectionXcontinued:

3.

Does

the

cover

letter:

a. Acknowledgethattheplanningcommissionhas

approvedthereport? Y N X

b. AcknowledgetheAnnualReporthasbeenfiled

withthelocallegislativebody? Y N

c. Indicateacontact? Y N

(C)Considersendinganadditionalcopyofyourreportdirectlytothe

MDPRegionalOfficeviaemailorhardcopy.

Acopy

will

be

sent

to

Tracey

Gordy

of

the

Salisbury

office.

(D)ARegionalPlannerfromMDPisavailabletoassistinpreparingreports.

TraceyGordyoftheSalisburyofficehasassistedus.

(E)SuggestionstoimprovethisworksheetmaybesenttoDavidDahlstromatMDP.


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5. NEW BUSINESSF.Bid Award Recommendation for Classification and Benefits

Study presented by Human Resources Director


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TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Wayne Evans, Human Resources DirectorRE: Bid Award Recommendation for Pay, Classification & Benefits StudyDATE: March 4, 2014

ISSUE(S): 2013 Strategic Planning Action item for Citywide Compensationand Benefits Study as stated under Goal 1 Financially SoundTown Government.

SUMMARY: On April 15, 2014, Council acknowledged and remanded toStaff for review four (4) service firm bids for conducting a pay,classification and benefits study to 1) analyze, validate and / orimprove current compensation administration and classificationpractices and 2) determine competitiveness of the Towns payand benefits programs in its comparative market through thecollection and analysis of compensation and benefits survey data.

FISCAL IMPACT: $45,960

RECOMMENDATION: Review and approve revised scope of services proposal andvendor selection recommendation, Management Advisory GroupInternational, Inc. of Woodbridge, VA.

ALTERNATIVES: Do not perform the study.

RESPONSIBLE STAFF: Wayne Evans, Human Resources Director

COORDINATED WITH: Catrice Parsons, Procurement ManagerNick Rice, Purchasing AssociateWayne Pryor, Special Programs Manager/Grants Coordinator

ATTACHMENT(S): 1)Vendor Selection Process Summary with Recommendation2)Vendor Bid Listing3)Revised Scope of Services and cost proposal from

Management Advisory Group

Agenda Item # 5F



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VendorSelectionProcessSummaryFortheTownofOceanCityPay,Classification&BenefitsStudy

June24,2014ExecutingagainstapriorityitemintheTownsStrategicPlan,asolicitationforvendorstoprovideproposals

foracompensation,classificationandbenefitsstudywasinitiated.

Followingreceiptoffour(4)timelyproposals,thevendorEvaluationCommitteemettoreviewtheproposals

anddeterminenextsteps. AllfourvendorsexceededtheTowns$50,000budgetbyarangeofapproximately

$10,000to$55,000. TheCommitteedeterminedtoeliminatethehighbidderfromfurtherconsideration. An

itemizedcostbreakdownwasrequestedfromtheremainingthreevendorsasameansofdeterminingwhat

vendorservicestheTowncouldcurtailoreliminatealtogetherinordertocompleteastudythatmeetsboth

thestrategicobjectivesandthebudget.

MeetingwiththeCityManagerresultedinarevisedscopeofservicesthatwasdiscussedwitheachvendors

projectmanager. Repricingtheservicesresultedinbidsthatrangedfrom$45,960to$50,000.

TheCommitteeconductedtelephoneinterviewswitheachvendorsprojectteam,confirmingtheir

capabilities,qualifications,andexpertiseintheareasofinterestfortheTownsstudy. TheCommittee

concludedonevendorwouldbeeliminatedfromfurtherconsiderationduetotheassignmentofan

inexperiencedprojectlead,subcontractingofthecompensationanalysisworkandoveralllightexperience

withmunicipalgovernmentwork.

EachCommitteememberindependentlycompletedadecisionsupportmatrixontheremainingvendors

assigningpointvaluestoweightedcomponentsinthecategoriesofService;CompanyExperience;Project

TeamMemberExperience;Timeline;andCost. TheCommitteesindependentandconsolidatedrankings

unanimouslyfavoredthesamevendor.

Areferenceinstrumentwasdevelopedandrecentvendorclientswereinterviewedontheirassessmentofthe

vendorscommunications;technicalknowhow;responsiveness;flexibility;attentiontodetail;qualityof

presentationsandreports;timelinecompliance;teammemberinteractions.

TheCommitteeisrecommendingManagementAdvisoryGroupInternational,Inc.Woodbridge,Virginiabased

onitsmatrixscores;focusonmunicipalgovernmentclassificationandcompensationworkasitscorebusiness

inclusionofsoftwaretoolsaspartoftheprojectcost;freefollowupconsultationforoneyearafter

implementation;favorablereferences;andlowbidof$45,960.

Respectfullysubmitted,

WayneEvans,HumanResourcesDirector

CatriceParsons,ProcurementManager

NickRice,PurchasingAssociate

WaynePryor,SpecialProgramsManager


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VendorBidListCompensation,Classification&BenefitsStudy

June24,2014PreliminaryBids:ManagementAdvisoryGroupInternational,Inc. $ 59,960

Woodbridge,VAC2Technologies,Inc. $ 67,442

Vienna,VAEvergreenSolutions,LLC $ 69,000

Tallahassee,FLSpringsted,Inc. $105,000

St.Paul,MNRevisedScopeBids:ManagementAdvisoryGroupInternational,Inc. $ 45,960

Woodbridge,VAC2Technologies,Inc. $ 49,530

Vienna,VAEvergreenSolutions,LLC $ 50,000

Tallahassee,FL


68/104

Section 4 0 Project Approach/MethodologyProject Understanding and Scope of ServicesThe Town desires to conduct a Pay, Classification and review of selected benefits study. Thestudy will ensure that the salaries of the different positions within the Town are properly andfairly allocated according to the job duties and responsibilities, provide justifiable paydifferential between job classifications, and maintains currency with the relevant labormarkets.The Town has approximately 525 employees in 16 departments with a total of 365 unique jobtitles. Each year the Town significantly increases its workforce by the addition of approximately950 temporary and part-time employees supplementing the existing full-time classificationsand hiring uniquely seasonal positions such as beach patrol.A pay and benefits study was conducted 2010 / 2011. The last independent pay, classificationand benefits study was conducted in 2005 and updated 2008. There are 10 separate pay plans.There are 2 collective bargaining agreements.MAG will:

Provide a position analysis of each position to determine specific duties,responsibilities and job requirements for the purpose of updating position descriptions. Thisprocess will include interviews with Department Heads to review critical operations and dutiesof key personnel.

Provide a comprehensive evaluation of each position for the purpose ofdetermining the relative worth within the Town (internal equity), review job grades and payranges, and the assignment of positions to appropriate pay grades.

1 7 onduct a market survey using benchmark positions to include full- time, part-timeand temporary position classifications.

Analyze pay data to determine an equitable and appropriate compensation plan forthe Town including pay grade design, pay increment percentages, and best practices for full-time, part-time and temporary pay structures. Develop methodologies for determiningpromotional increases within and across pay plans.

evelop solutions for consolidating existing two-tier pay plan(s) to single pay plans.

Determine feasibility of pay plan, pay grade and job title consolidations.imammummitcopyright 2014


69/104

copyright 2 14 2

rovide a procedure through which employees can have their classification decisionreviewed.

Provide a review of selected benefits issues such as percentage of benefits relative tobase compensation levels, the percentage of employer paid premiums for health insurancecosts, and general pension costs relative to market and provide recommendations foradjustment as needed in keeping with best practices. (This is not a benefits audit ofpremium costs and benefits).

The services described in your RFP are consistent with the services MAG principals haveprovided to hundreds of local government agencies over a 30 year period


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5.0 Budget Town of Ocean City MD

Section 5 0 Budg etMAG has developed a project budget for the Town of Ocean City based on the scope ofservices. The total estimated budget is 45,960. This budget does not includedescriptions or RSA determinations. The benefits review is limited to selected k yissues noted in Section 4.0, page 41. The Town has approximately 525 employees in 16departments with a total of 365 unique job titles. This proposed budget includesanticipated travel and related operational expenses during the course of the project.Hourly rates for services beyond the scope would be $175 for professionai staff, and$45 for support positions.

PaymentAn initiation invoice of twenty percent (20 ) will be requested. Monthly amounts willbe invoiced as the work proceeds. Ten percent (10 ) of the total contract amount shallbe held back - payable upon successful completion of the project. Additional paymentsshall be due and payable in accordance with equal monthly invoices based upon workperformed toward delivery of final reports and products as described herein.The fees to be provided do not include services provided by MAG following submissionof its final report and recommendations. In the event MAG is required to providedocuments or testimony in response to claims, demands or actions by third parties,MAG shall bill for services rendered based on then-current professional fees andexpenses incurred, including reasonable attorney's fees. No tasks shall be undertakenwithout prior notification to you. This provision is intended to apply only to third-partyactions based on implementation of MAG's report and findings.

Indemnification Language SuggestedConsultant agrees, to the fullest extent permitted by law, to indemnify and holdharmless the Client from any amounts (including reasonable attorney's fees) for whichthe Town shall become legally obligated to pay as damages for negligent acts, errors,and/or omissions of the Consultant arising out of the Consultant's performance underthis Agreement; however, the amount Consultant will pay for damages is limited to1,000,000, which number is intended to reflect the limits set forth in Consultant's

liabilit insurance.

copyright 2014 1


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5. NEW BUSINESSG. Strategic Plan Update presented by City Manager


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Copyright 2014: Lyle Sumek Associates, Inc.

Town of Ocean City: Strategic Plan

VISION 2029

OCEAN CITY 2029is a Vibrant Coastal Resort Community

with a World Class Public Beach and Waterways

and anAuthentic Historic Boardwalk-- the Choice

of Todays Families.

OCEAN CITY 2029

is Safe and Clean, has

Quality Neighborhoods for Residents,isAccessible and Easy Travel,

and is a place forEnjoyable Experiences for All.

GOALS 2019

1st

Class Resort and Tourist Destination

Financially Sound Town Government

More Livable Community

for Residents

Excellent Service through a

High Performing Town Organization

Revitalized Ocean City:

Development and Redevelopment

POLICY AGENDA

2014

Top Priority

Tourism Strategic Plan: Development

Bayside Park Development

Tax Differential: Resolution

Smoking on the Beach/Boardwalk Policy

Working Relationship with Worcester CountyDualization of Route 90: Advocacy

High Priority

School After Labor Day (Statewide): Advocacy

Citywide Compensation and Benefits Study

and Policy

Pedestrian/Bike Safety Master Plan:Implementation

Beach Playground Equipment Replacement

November Town ElectionOcean Plaza Mall Strategy

Downtown Model Block Development

Ambulance/EMS/Fire Response

(West Ocean City): Analysis

Moderate Priority

Sunset Park Master Plan and Uses

Northside Park Building Improvements

MANAGEMENT AGENDA

2014

Top Priority

Planning and Zoning Evaluation

800 MHz Radio System Replacement

Sports Destination Marketing Program: Expansion

9-1-1 Primary Answering Point/

3-1-1 Non Emergency Government

Information Center

Information Technology Upgrade Plan

High Priority

Caroline Outdoor Stage: Upgrades

City Facilities Security Plan

License Plate Recognition Program for Route 90

Whiteside Facility Replacement

Tall Ship Capacity

Network Backbone Replacement

Land Acquisition/Disposal Strategy

Moderate Priority

June Behavior Action Plan

Beach Events/Tournaments Expansion

Seasonal Police Comprehensive Evaluation

Avaya Phone System Replacement

Town of Ocean City Equipment andLabor Guidelines


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Copyright 2014: Lyle Sumek Associates, Inc.

MANAGEMENT IN PROGRESS 2014

Tourism Website Redesign

Tourism Mobile App Development

ROI for Private Events

New Banner Program

Advertising Agencies: Contract

Bus Locator App: Development

New Annual Event Halloween in Ocean City

Visitor Profile

Winterfest Pavilion: Facility and Program Event

P Card Program: Implementation

Pension Report (Annual)

Government Accounting Standards 67 Financial

Reporting for Pensions

Capital Improvement Budget: FY 15

Document Archiving System: Imaging and Training

Water/Wastewater Rates:Review/Adjustment Resolution

Purchasing Policy and Procedure: Update

Online/Payment by Phone (Bus/Parking)

Online Bill Payments: Utilities

Building Fee Structure: Evaluation, Direction

Manual on Environmental Permitting

Special Enforcement Unit: Report

FEMA Maps: Ordinance

TMDL: Assign Load

Eagles Landing Golf Course Irrigation

Joint use of School Facilities

Comprehensive Emergency Operations Recovery Plan

Drug Action Plan

Web based Building Permits and Business Licenses

Web Link Laserfiche Web Portal

Strategic Planning: Annual Update

City Properties Insurance Review

Town Policy and Procedure Manual: Completion

Emergency Management/Town Facilities Evacuation

Plan and Training

Health and Safety Manual/Training/Policy Review

Fire Operating Standard Guidelines

Chamber Audio Video Upgrade

Electronic Record/Laserfiche: Strategic Planning

Water Quality Administrative Consent Decree

Parks: Evaluation and Direction

Safety Hazard Training Program

Road Re-Surfacing Plan: Review/Funding

MAJOR PROJECTS 2014

Beach ReplenishmentAirport Improvement: Environmental Assessment,

Tree Removal

Boardwalk Security Cameras: Phase 2

Performing Arts Theater Project

Water Disinfection By Products Pilot Study

Downtown Water Storage Tank

Northside Park: Pier Re Decking

Tennis Center Fence

New Kayak Rental Concession

Skate Park Sunshade

Performing Arts Theater ProjectCanal Dredging Project

Beach Patrol Headquarters

Eagles Landing Golf Course:Improvements at Club House

Public Boat Ramp: Relocation, Expansion

Fire Station 4

Fire Headquarters Building

St. Louis Avenue Improvements Phase II and III

Boardwalk Fiber Optic Improvements

TOWN GOVERNMENT 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.


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STRATEGIC PLAN

2014 2019 2029

Mayor and

City Council

Ocean City, Maryland

March 2014

Lyle Sumek Associates, Inc.

EXECUTIVE SUMMARY

Lyle Sumek Associates, Inc. Phone: (386) 246-62509 Flagship Court Fax: (386) 246-6252

Palm Coast, FL 32137-3373 E-mail: [email protected]


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Executive Summary: Strategic Plan 2014 2019 2029/Mayor and City Council/Ocean City, Maryland

Copyright 2014: Lyle Sumek Associates, Inc. Project 140320

Table of Contents

EXECUTIVE SUMMARY

Strategic Planning for the Town of Ocean City 1

Ocean City Vision 2029 2

Town of Ocean City: Mission and Services 8

Town of Ocean City Plan 2014 2019 12

Town of Ocean City Action Agenda 2014 23

This report and all related materials are copyrighted. This report may be duplicated for distribution to appropriate

parties as needed. No unauthorized duplication is allowed, including for use in training within your organization or

for consulting purposes outside your organization.


76/104


Copyright 2014: Lyle Sumek Associates, Inc. Project 140320 1

STRATEGIC FRAMEWORK

VISION 2029

Desired Destination for the Town of Ocean City

PLAN 2019

Map to Ocean Citys Destination

EXECUTION

Route for Next Year

MISSION

Responsibilities of Town Government

BELIEFS

Expectations of Town Government Employees


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Town of Ocean City

Vision 2029

OCEAN CITY 2029

is a Vibrant Coastal Resort Community(1)

with aWorld Class Public Beach and Waterways(2)

and anAuthentic Historic Boardwalk(3)

-- theChoice of Todays Families. (4)

OCEAN CITY 2029

isSafe and Clean, (5)has

Quality Neighborhoods for Residents,(6)

isAccessible and Easy Travel, (7)

and is a place forEnjoyable Experiences for All. (8)


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Vision 2029

Guiding Principles

PRINCIPLE 1 VIBRANT COASTAL RESORT COMMUNITY

!Means1. Guests enjoy their stay and return to Ocean City in the future

2. Expanded, diverse retail opportunities with specialty, marine supply, basic retail andgrocery stores (national and locally owned) throughout the city

3. Ability to serve the year round guests

4. Visitors treated as our guests

5. Active conference and convention destination with year round business

6. Events and festivals drawing regional and national guests with top quality talent

7. Quality services to attract our guests and meet the needs of residents

8. Arts District with studios, galleries and entertainment attracting guests to Ocean City

9. Wide range of accommodation options: short/long term, price, life style, locations


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PRINCIPLE 2 WORLD CLASS PUBLIC BEACH AND

WATERWAYS

!Means1. Great wide public beach with ongoing and funded replenishment program

2. Navigable waterways and canals

3. Quality water meeting federal and state standards

4. Free public access to the beach and waterways

5. Bayside Boardwalk for pedestrians and bicycles

6. Ocean activities including surfing, body boarding, surf fishing, swimming, etc.

7. Full service marina(s) with permanent and transient docking

8. Smoking free beach

9. Oceanfront resorts with restaurants serving food and beverages on the adjacent beach

PRINCIPLE 3 AUTHENTIC HISTORIC BOARDWALK

!Means1. Major community destination for residents and guests

2. Daytime and evening activities for people to enjoy their experience

3. Attractive, well maintained two and a half mile Boardwalk that is personally inviting

4. Variety of quality restaurants offering a range of choices: casual to gourmet, indoor

to outdoor, affordable to expensive

5. Easy access transit and convenient parking

6. Quality, locally owned retail shops along corridors to the Boardwalk

7. National recognition as the Nations Boardwalk a truly unique destination alongthe beach

8. Opportunities for bicycling on the Boardwalk


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PRINCIPLE 4 CHOICE OF TODAYS FAMILIES

!Means1. Families making the decision to return to Ocean City

2. New family venues and activities that keep Ocean City fresh and inviting

3. Diverse day and night time activities for all

4. Vacation destination focusing on todays families

5. All family generations feeling welcome and included

6. Affordable venues, activities and programs for intergenerational interaction andlearning

PRINCIPLE 5 SAFE AND CLEAN

!Means1. Timely response to an emergency call for service

2. Quality emergency medical response and delivery to quality hospitals

3. Roads safe for pedestrians, bicycles and vehicles

4. Residents and guests feeling safe and secure in any place in Ocean City

5. Visible police presence and partnerships throughout the community, at community

destinations and during events

6. Positive curb appeal without trash or litter

7. Well maintained public spaces and facilities

8. Safe, clean beach and waterway to enjoy


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PRINCIPLE 6 QUALITY NEIGHBORHOODS FOR

RESIDENTS

!Means1. Range of housing choices: type, price and life style

2. Availability of retail, professional services and restaurants serving the daily needs ofresidents

3. Variety of year round recreation programs, activities and services

4. Well maintained neighborhood infrastructure: streets, sidewalks, green spaces

5. Town working with community organizations and the faith community forcommunity benefit

6. Availability of cultural and performing arts throughout the year7. Convenient access to medical and health care services

8. Access to Blue Ribbon schools and educational programs

PRINCIPLE 7 ACCESSIBLE AND EASY TRAVEL

!Means1. Strategic locations for parking

2. Non automobile choices after you arrive in Ocean City

3. Selected narrow corridors with parking promoting biking and walking in the area

4. Effective public transportation for residents and guests serving key community

destinations

5. Ability to bike throughout community: bike lanes, bike sharing and paths

6. Safe and well maintained streets and sidewalks7. More bridge connections to the mainland

8. Well maintained highways and bridges providing easy access to Ocean City


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PRINCIPLE 8 ENJOYABLE EXPERIENCES FOR ALL

!Means1. Well designed, well maintained parks with diverse venues, green spaces and beach

2. Range of quality restaurants: diverse types of food, prices, locations

3. Boating, fishing, surfing, sailing and other water sports experiences available for

residents and guests

4. Entertainment venues and activities for all to enjoy

5. Reputation: a great place to enjoy year round

6. Performing arts programs and cultural experiences throughout the year

7. Variety of fitness and exercise opportunities indoor, in parks, along the beach

8. Recreational programs, activities and services throughout the city


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Town of Ocean City:

Mission

TheMISSION OF TOWN GOVERNMENT

is to providePersonal Caring Municipal Services

and to serve as a

Responsive Host to Our Guests and Residents

while acting in aFinancially Responsible Manner delivered byaProfessionalTownWorkforce.


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Town of Ocean City

Core Services

NO CHOICE SERVICES

Govern, Inform and Engage the Community

Provide Public Notices and Information

Plan, Manage and Maintain Stormwater Management System

CORE SERVICES

Enforce Laws, Ordinances and Standards

Secure, Treat and Distribute Water

Collect, Treat and Dispose Wastewater

Support Tourism Development and Marketing Ocean City

Collect and Dispose of Solid Waste

Prepare For, Respond To and Recovery From a Disaster or Major

Emergency Situation

Respond to Medical Emergency and Transport to the Hospital


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QUALITY OF LIFE SERVICES

Design, Build and Maintain Streets and Sidewalk

Plan for the Towns FutureManage, Maintain Parking Structures, Surface Parking and Overall

Parking Management

Operate Convention Center

Maintain, Patrol the Beach

Operate Public Transportation System

Inspect Buildings and Homes for Safety

Facilitate Economic Growth and Business Investment

ADD ON SERVICES

Sponsor and Support Community Events and Festivals

Design, Build and Maintain Parks Including Venues and

Open SpacesDevelop, Provide Recreation and Educational Programs

and Activities

OTHER SERVICES

Regulate Land Use and DevelopmentPlan, Manage and Maintain the Municipal Airport

Patrol the Community


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Town of Ocean City

Our Customers

PRIMARY CUSTOMERS

Residents (year round)

Residents (part time)

Visitors (first time)

Visitors (returning)

Property Owners

Day Trippers

Local Business Owners

OTHER KEY CUSTOMERS

National Businesses

Event Sponsors

Conventioneers

Families

Foreign Students

Prospective Businesses

Tournament Teams and Participants

Recreation Participants


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Town of Ocean City

Goals 2019

1stClass Resort and Tourist Destination

Financially Sound Town Government

More Livable Community for Residents

Excellent Service through a

High Performing Town Organization

Revitalized Ocean City: Development and Redevelopment


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GOAL 1 1stCLASS RESORT AND TOURIST DESTINATION

!Objectives1. National reputation as the best beach destination for families along the Mid Atlantic

coast/country

2. Increase number of athletic tournaments and recreational events

3. Increase the number of todays family visitors coming to Ocean City

4. Increase the number of conferences and conventions coming to Ocean City

5. Provide better amenities for guests: new attractions that will bring guests back

6. Maintain a sage environment for guests

!Short-Term Challenges and Opportunities1. Understanding who are our guests their profile, their expectations, their desires

2. Balancing events/festivals with the family vacationers

3. National and global economy impacting family spending and vacations

4. Keeping Ocean City a family oriented, affordable destination

5. Minimum night stay requirements in hotels

6. Opportunities to expand sports tourism

7. Keeping the face and amenities "fresh and new" for visitors giving them morereasons to return to Ocean City


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!Actions 2014 PRIORITYPolicy Agenda

1. Tourism Strategic Plan: Development Top Priority

2. Bayside Park Development Top Priority3. Smoking on the Beach/Boardwalk Policy Top Priority

4. School After Labor Day (Statewide): Advocacy High Priority

5. Sunset Park Master Plan and Uses Mod Priority

Management Agenda

1. Sports Destination Marketing Program Expansion Top Priority

2. Tall Ship Capacity High Priority

3. Caroline Outdoor Stage: Upgrades High Priority

4. June Behavior Action Plan Mod Priority

5. Beach Events/Tournaments Expansion Mod Priority

6. Town of Ocean City Equipment and Labor Guidelines Mod Priority

Management in Progress

1. Tourism Website Redesign

2. Tourism Mobile App Development

3. ROI for Private Events

4. New Banner Program

5. Advertising Agencies: Contract

6. Bus Locator App: Development7. New Annual Event Halloween in Ocean City

8. Visitor Profile

9. Winterfest Pavilion: Facility Evaluation and Refurbishment

!Major Projects 20141. Beach Replenishment

2. Airport Improvement: Environmental Assessment, Tree Removal3. Boardwalk Security Cameras: Phase 2

4. Performing Arts Theater Project


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GOAL 2 FINANCIALLY SOUND TOWN GOVERNMENT

!Objectives1. Have a property tax rate based upon defined Town services and levels of service

delivered in the most efficient and cost effective manner

2. Maintain reasonably competitive Town employee compensation and benefits in costeffective manner

3. Maintain financial reserves consistent with Town policies and national standards

4. Expand revenue options for Town government

5. Increase a larger percentage of tax returned from Worcester County to the Town

government

!Short-Term Challenges and Opportunities1. Uncertain economy impacting all governments: revenues and service demands

2. Affordability of employee compensation and benefits: pensions, Affordable Care Act workforce, re-insurance fee, administrative costs

3. Working with Worcester County: services, development coordination, effective

working relationship

4. Distinguishing "wants" and "needs": residents and businesses5. Rising costs of doing Town business: benefits, raw materials, supply of basic

materials

6. Helping residents to understand Town finances, services and programs


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!Actions 2014 PRIORITYPolicy Agenda

1. Tax Differential: Resolution Top Priority

2. Citywide Compensation and Benefits Study and Policy High Priority3. Ambulance/EMS/Fire Response (West Ocean City) Analysis High Priority

4. Citywide Comprehensive Study of Part Time Employees

5. Alternative Revenue Sources: Direction

Management Agenda

1. 800 Mhz Radio System Replacement Top Priority

2. City Facilities Security Plan High Priority

3. Whiteside Facility Replacement High Priority

4. Vehicle Replacement Policy and Process

5. Affordable Care Act: Analysis

6. Citywide Comprehensive Study of Part Time Employees

Management In Progress

1. P Card Program: Implementation

2. Pension Report (Annual)

3. Government Accounting Standards 67 Financial Reporting for Pensions

4. Cap

june 24 2014 complete agenda

Documents