February 10 2015 Complete Agenda

MAYORANDCITYCOUNCIL
WORKSESSION
Tuesday,February10,20151:00P.M.
AClosedSessionisscheduledfrom12:001:00P.M.todiscusslegalandcollectivebargainingmatters.
AGENDA
1.
CALLTOORDER
2.
REPORTONCLOSEDSESSIONTuesday,February10,201512:001:00p.m.
3.
ACKNOWLEDGEMENTSANDRECOGNITIONS
4.
COMMENTSFROMTHEPUBLIC
AnypersonwhomaywishtospeakonamatterscheduledfordiscussionontheWorkSessionAgenda
maybeheardduringCommentsfromthePublicforaperiodofthree(3)minutesorsuchtimeasmay
bedeemedappropriatebytheCouncilPresident.Anyonewishingtobeheardshallstatetheirname,
addressandtheAgendaitemonwhichheorshewishestospeak.
5.
NEWBUSINESS
A. BidOpeningVehicleVendingFranchise
B.
PrivateEventApprovalRequestforNationalVolleyballLeagueOCOpenMay2831,2015
C.
PrivateEventApprovalRequestforBikefestSeptember1721,2015
D. RequestApprovaltoSolicitProposalsforFoodserviceattheOceanCityConventionCenter
presentedbyProcurementManager
E.
RequestApprovaltoSolicitBidsforOCDCModelBlockDemolitionpresentedbyProcurement
Manager
F.
DiscussionofAdoptionofNewFloodMapsandRelatedChangestotheTownCodepresented
byCityEngineerandChiefBuildingOfficial
G. DiscussionofMidBeachParcelFranchiseBidResultspresentedbyCityClerk
H. ReviewofTownsBudgetProcessandFY15BudgetAmendment#1presentedbyCityManager
andBudgetManager
6.
ADJOURN
WORK SESSION -MAYOR AND CITY COUNCIL

TUESDAY, FEBRUARY 10, 2015
2. Report on Closed Session February 10, 2015 12:00
1:00 p.m. Legal and Collective Bargaining Matters
NOTICE OF CLOSED SESSION OF MAYOR & CITY COUNCIL OF OCEAN CITY

DATE AND TIME:
PLACE:
SUBJECT:
VOTE:
Tuesday, February 10, 2015 12:00 p.m.

City Hall
Legal and Collective Bargaining 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
X
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,
February 10, 2015, a closed session was held on Tuesday, February 10, 2015 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 and Collective Bargaining Matters
(b) Persons present:
Mayor Richard Meehan
City Manager David Recor
Council Secretary Mary Knight
Council Members Doug Cymek; Dennis Dare; Wayne Hartman; Matt James
City Solicitor Guy Ayres
Executive Office Associate Diana Chavis
Action(s) taken:
Motion to close meeting:
Time:
H:\Wpdoc\closedsess.wpd

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.

5. NEW BUSINESS
A. Bid Opening Vehicle Vending Franchise
VEHICLE VENDING FRANCHISE

BID SPREADSHEET
VENDOR
Georgeos Water Ice, Inc.

George Swayngim
5 Discovery Lane
Selbyville, DE 19975
302-436-4739
BID AMOUNT
Bid Notice
Vehicle Vending Franchise
The Mayor and Council for the Town of Ocean City is accepting sealed bids for the Vehicle Vending Franchise.
Eligible bids must meet the criteria set forth in the Vehicle Vending Franchise Ordinance found in the Code for
the Town of Ocean City. A copy of this ordinance is included in the bid packet.
Bid Packets are available for download at www.oceancitymd.gov. The highest bidder shall be granted the
exclusive and sole right to sell prepared food, from a motorized vehicle on certain public streets within
municipal limits. The term of the franchise shall be for four years. There shall be only one franchise and one
franchise operator. Such franchise and operator are limited to a maximum of six (6) trucks or vehicles, which
must be motorized and must meet all standards of the State Health Department.
All bids shall contain the following:
1. A cashiers or certified check in the amount of eighty percent (80%) of the first years bid amount;
2. A signed statement from the Operator authorizing the Mayor and Council to make inquiry of personal
background to determine financial and credit worthiness.
The successful bidder shall obtain, at the operators own expense, comprehensive automobile liability
insurance coverage pursuant to the Vehicle Vending Franchise Ordinance. Such insurance coverage shall
name the Mayor and City Council as additional insured, and a certificate of insurance evidencing such
coverage shall be furnished to the Mayor and City Council by the operator and be approved by the City Clerk
of Ocean City before the operator engages in the selling of food items from any public ways.
The City Manager must receive your bid by Monday, February 9, 2015 at 11:00 p.m. Late bids are subject to
rejection. Address your bid to: City Managers Office - VEHICLE VENDING BID, Town of Ocean City, 301 N.
Baltimore Avenue, Ocean City, Maryland 21842.
Should you have any questions, please contact City Clerk Kelly Allmond at 410-289-8842 for questions.
2015 Vehicle Vending Franchise Bid Form

BID
$______________________per year, for a total of $______________________ for the four year term of the franchise.
FINANCIAL HISTORY
The source of my funds for the initial franchise payment tended herewith is as follows:
CREDIT REFERENCE #1
FULL NAME
ADDRESS
PHONE NUMBER
EMAIL ADDRESS
CREDIT REFERENCE #2
FULL NAME
ADDRESS
PHONE NUMBER
EMAIL ADDRESS
BANK REFERENCE
FULL NAME
ADDRESS
PHONE NUMBER
EMAIL ADDRESS
AFFIDAVIT
I do hereby agree to and authorize the Mayor and City Council of Ocean City to make inquiry of my personal
background, financial and credit worthiness; and my credit report; by my signature hereto, I do hereby authorize
and empower those listed above as credit references and bank reference to release unto Mayor and City Council of
Ocean City any information pertaining to my personal background, financial and credit worthiness and for the
Mayor and City Council to obtain a copy of my credit report; and,
I do hereby certify that this BID has been arrived at independently, without consultation, communication, or
agreement as to any matter relating to this BID with any other bidder or competitor; and
I do hereby certify that there are no other persons financially interested, direct or indirect, in this BID, except:
____________________________________________________
Name
_________________________________________________
Signature
____________________________________________________
Name
_________________________________________________
Signature
I do hereby solemnly declare (or I hereby affirm) under penalties of perjury that the information and statement
above are true and correct to my knowledge and belief.
___________________________________________________
Print Name
________________________________________________
Signature
___________________________________________________
Address
________________________________________________
Telephone
PARTIICODEOFORDINANCES
Chapter39FRANCHISES
ARTICLEVII.VEHICLEVENDING
ARTICLE VII. VEHICLE VENDING [55]
Sec. 39-501. - Title.
Sec. 39-502. - Definitions.
Sec. 39-503. - Violations and penalties.
Sec. 39-504. - System established; franchise conditions; award of franchise.
Sec. 39-505. - Insurance.
Sec. 39-506. - Termination of franchise; revocation of franchise.
Sec. 39-507. - Prohibited acts.
Sec. 39-501. - Title.

This article shall be known as the "Vehicle Vending Franchise Ordinance."
(Code 1972, 100-1)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this
section, except where the context clearly indicates a different meaning:
Annual bid price - the amount of the bid divided by the number of years of the term.
Franchise - The exclusive and sole right to operate a motor vehicle type prepared-food vending business on and from
public streets.
Operator - The owner of the franchise.
Reference - Credit and bank references, as required by this article. The reference reports are hereby declared to be
privileged and confidential, and not subject to public inspection pursuant to section 10-615(1) and section 10617(d)(3) of the State Public Information Act.
System - The vehicle vending franchise system.
(Code 1972, 100-2; Ord. No. 2003-4, 2-3-2003)

Any person violating any of the conditions, terms or provisions of this article or committing any act herein declared to
be prohibited shall, on conviction thereof, be deemed guilty of a municipal infraction subject to the provisions of
section 1-8.
(Code 1972, 100-6; Ord. No. 1996-23, 10-21-1996)
Sec. 39-504. - System established; franchise conditions; award of franchise.

There is hereby established and created a vehicle vending franchise and vehicle vending franchise system of Ocean
City, Maryland. Such system and franchise is established as follows:
(1) There shall be only one franchise and franchise operator. Such franchise and operator are limited to a
maximum of six trucks or vehicles which must be motorized and must meet all standards of the state health
department.
(2) The franchise operator shall be permitted to vend prepared food items at all times from all public ways
except the following:
a.
For the franchise operator or any of his employees to vend during the hours of 10:00 p.m. to 10:00 a.m.
of the following day or to vend from Coastal Highway, Baltimore Avenue, Philadelphia Avenue, Atlantic
Avenue(beach and boardwalk) or east of Baltimore Avenue from 27th Street south to the Inlet.
b.
Vending shall be prohibited from 10:00 p.m. to 10:00 a.m. the following day.
c.
Vending shall be prohibited at the convention center and at Northside Park.
(3) The operator shall be permitted to vend, at retail, prepared food and beverage items, excluding alcoholic
beverages. He shall not be permitted to vend non-food items.
OceanCity,Maryland,CodeofOrdinances
Page1
Chapter39FRANCHISES
(4) The franchise shall not be assigned without the prior written permission of the Mayor and City Council.
(5) Bidding process.
a.
The bidding process shall be by sealed bid. Each bid shall be accompanied by a cashier's or certified
check in the amount of 80 percent of the first year's annual bid price. All bids shall be presented to the
Mayor and City Council by 1:00 p.m. on the first Tuesday work session in February of each bid year.
Bids shall be opened at the first Tuesday work session in February and shall be awarded to the highest
bidder, except that, should the Council determine that there are irregularities in such bidding, the
Council may reject such bids as it deems appropriate and postpone the awarding of bids if it so desires.
In the event of tie bids, the first in time received shall be deemed the successful bids.
b.
Each sealed bid shall be presented in the form and the successful bidder at a public auction shall
present the form, as follows:
1.
$____________ per year, for a total of $____________ for the four-year term of the franchise.
2.
The source of my funds for the initial franchise payment tendered herewith is as follows:
i.
Credit references: (applicant shall list at least two with full names, addresses, telephone
number and contact person).
ii.
Bank reference: (applicant shall list at least one with full name, address, telephone number
and contact person).
3.
I do hereby agree to and authorize Mayor and City Council of Ocean City to make inquiry of my
personal background, financial, credit worthiness and my credit report; and by my signature
hereto. I do hereby authorize and empower those listed as credit references and bank references
to release to the Mayor and City Council of Ocean City any information pertaining to my personal
background, financial and credit worthiness, and for the Mayor and City Council of Ocean City to
obtain a copy of my credit report.
4.
I do hereby certify that this BID has been arrived at independently, without consultation,
communication, or agreement as to any matter relating to this BID with any other Bidder or with
any competitor.
5.
I do hereby certify that there are not other persons financially interested, direct or indirect, in this
BID, except as fully disclosed and permitted by this chapter of the Code of Ocean City. (All
persons must sign (7)).
6.
I do hereby solemnly declare (or I hereby affirm) under penalties of perjury that the information
and statement above made are true and correct to my knowledge and belief, and by affixing my
signature hereto, I do personally guarantee all the terms and conditions of the franchise.
7. "_____
(Namehandwritten)
(6)
_____
(signature)"
The term of the franchise shall be four years.
(7) The payment of the franchise fees shall be as follows: The remaining 20 percent of the first year's franchise
fee shall be paid by June 30. Thereafter, in the subsequent years of the franchise term, 80 percent of the
annual franchise fee shall be paid on or before January 1, with the remaining 20 percent of the annual
franchise fee being paid on or before June 30 of each year.
(8) The franchise operator shall be permitted to play amplified music at a level not to exceed 65 dB(A).
(Code 1972, 100-3; Ord. No. 1994-28, 1-3-1995; Ord. No. 1996-23, 10-21-1996; Ord. No. 1999-2, 2-23-1999;
Ord. No. 2003-4, 2-3-2003; Ord. No. 2006-21, 8-21-2006)
Page2
Chapter39FRANCHISES
For the protection of the public and the Mayor and City Council, the operator must obtain, at the operator's own
expense, comprehensive automobile liability insurance coverage in at least the amount of $1,000,000.00 per person
and $2,000,000.00 per occurrence for bodily injury and $200,000.00 for property damage and comprehensive general
liability insurance, with a combined single limit of $2,000,000.00 for both bodily injury and property damage, which
shall include product liability insurance in the amount of at least $1,000,000.00. Such insurance coverage shall name
the Mayor and City Council as additional insured, and a certificate of insurance evidencing such coverage shall be
furnished the Mayor and City Council by the operator and be approved by the City Clerk of Ocean City before the
operator engages in the selling of food items from any public ways.
(Code 1972, 100-3.1; Ord. No. 1996-23, 10-21-1996)
Sec. 39-506. - Termination of franchise; revocation of franchise.

(a) The franchise shall terminate at the expiration of the four-year term.
(b) The franchise shall immediately be revoked upon the nonpayment of any fee when that fee is due.
(c) If the operator fails to keep every condition, term or provision of this article, the franchise may be revoked by the
Mayor and City Council.
(Code 1972, 100-4)

Each of the acts described in this section is prohibited:
(1) For anyone other than the franchise operator to vend prepared food items from public property or public
ways within the corporate limits of Ocean City. This subsection shall not be construed to include the
convention center property or Northside Park.
(2) For the franchise operator or any of his employees to vend during the hours of 10:00 p.m. to 10:00 a.m. of
the following day, or to vend from Coastal Highway, Baltimore Avenue, Philadelphia Avenue, Atlantic
Avenue (boardwalk) or east of Baltimore Avenue and south of 18th Street.
(3) For the franchise operator to utilize more than six vehicles to vend the prepared food products.
(4) For the franchise operator to play music, whether amplified or not, at a level in excess of 65 dB(A).
(Code 1972, 100-5; Ord. No. 1996-23, 10-21-1996; Ord. No. 1999-2, 2-23-1999)
FOOTNOTE(S):
(55)
Cross reference Businesses, ch. 14; traffic and vehicles, ch. 90. (Back)
Page3
TOWNOFOCEANCITY
20132016VEHICLEVENDING
FRANCHISEAGREEMENT
THISFRANCHISEAGREEMENTmadethis__dayof________,2013byandbetweentheMayor
andcityCouncilofOceanCity,aMarylandMunicipalCorporation,hereinaftercalledandreferred
toasCityand,hereinaftercalledandreferredtoasOperator.
WITNESSED:
Thatforandinconsiderationofthepremises,andoftherightshereinthisagreementgranted,and
ofthesumsofmoneyhereinthisagreementstated,theCityandtheOperatordohereby
covenantandagreeasfollows:
THATtheCityagrees:
1.
Thattheoperatorshallhavetherighttooperateavehiclevendingbusinesssubjecttothe
termsandconditionhereinafterstated,onthepublicstreetsforatermcommencingwith
thedatehereofandterminatingonthe
2.
ThatsolongastheOperatorperformsashereinstatedandpaysthesumshereinafterin
thisagreementspecifiedwhensaidsumsaredueandconductshisbusinessinaccordance
withthetermsofthisFranchiseAgreementandinaccordancewiththeprovisionsof
Chapter39,ArticleVII,oftheCodeoftheTownofOceanCity(saidChapter39herebybeing
incorporatedbyreference),theCitywillnotgranttherighttooperateaVehicleVending
Franchiseonthepublicstreetstoanotheroperator.
3.
ThattheCityacknowledgesreceiptofthesumof$fromtheOperator,which
sumrepresents80%ofthefirstannualFranchisefee.
THATtheOperatoragrees:
1. Topaytheannualbidpriceasfollows:80%ofthefirstannualfeebeingheretoforepaid
andtheremaining20%tobepaidonorbeforethereafterfortheremainingyearsof
thetermofthisagreementtheannualfeewillbepaidbypayingtotheCity80%ofsaid
annualfeebyJanuary1stoftheyearpriortothenextsummerseason,andtheremaining
20%onorbeforeJune30th.TheOperatoragreestopaytheannualfranchisefeeof$
atthetimesaforesaidandtopaythetotalsumof$ininstallmentsas
aforesaid,forthefour(4)yeartermofthisagreement.
2. TocomplywithalltheprovisionsandconditionsofChapter39,ArticleVIIoftheCodeofthe
TownofOceanCity(asfromtimetotimeamendedbyOrdinance).
3. TheOperatorbyenteringintothisagreementherebyacknowledgesthathehas
knowledgeoftheaforesaidChapter39,ArticleVIIandherebyexpresslywaivesanyandall
rightsordefenseshemightnowhaveorhereafteracquirebyreasonoftheOperatornot
havingreadorunderstoodtheaforesaidChapter39,ArticleVII.
4. ToprotectandsaveharmlesstheCityfromalldamageandlossfromorarisingoutofor
byreasonofthenegligenceoftheOperatorhisagentsoremployees,byprovidingthe
insurancerequiredunderChapter39,ArticleVII.
5. ThattheOperatorshallconductthebusinessofvehiclevendingandshallconductno
otherbusinessundertherightsgrantedbythisfranchiseagreement.
6. ThattheOperatorshallpermitnomorethansix(6)vehiclestooperateonthepublic
streetsatanyonetime.
7. Thatnoalcoholicbeverageswillbeconsumedorkept,byitselforitsagentsoremployees
onthevendingvehicles.
8. TocomplywithallTown,County,StateorFederallawsandregulations.
9. Thatthetermsandprovisionsofanyotherfranchiseagreementandnegotiationsonthe
priceorpaymentsornegotiationsinreferencetothedefaultofprovisionsofanyother
agreementshallhavenoeffectonthisFranchiseAgreement
ATTEST:
CITY
MayorandCityCouncil
TownofOceanCity
__________________________
CityClerkKellyL.Allmond
____________________________________
MayorRichardW.Meehan
____________________________________
CouncilPresidentLloydMartin
WITNESS:
OPERATOR
________________________________________________________________
SignaturePrintName

5. NEW BUSINESS
B. Private Event Approval Request for National Volleyball
League OC Open May 28-31, 2015
TOWN OF
The White Marlin Capital of the World
TO:
THRU:
FROM:
RE:
DATE:
Agenda Item #
5B
Council Meeting
February 10, 2015
The Honorable Mayor, Council President and Members of Council

David L. Recor, ICMA-CM, City Manager
Lisa A. Mitchell, Private Event Coordinator
National Volleyball League
January 29, 2015
ISSUE(S):
Brian Polark of the National Volleyball League (NVL) would like to

hold a new volleyball event, the NVL Ocean City Open, on the beach
between Dorchester and Talbot Streets Thursday thru Sunday, May
28-31, 2015.
SUMMARY:
Beach volleyball tournament with sponsor activations, music,

entertainment, and television broadcast.
FISCAL IMPACT:
Private Event Fee revenue is $1,100.00 comprised of $100

Application Fee and $1,000 Space Usage fee ($250 for 4 days).
There are no Asset & Support Fees related to this event.
Potential positive economic impact from lodging, food and
beverage, recreation and other incidental expenditures related to
this event.
RECOMMENDATION:
Approve the event as presented.

1st Class Resort & Tourist Destination
ALTERNATIVES:
No staff alternatives suggested
RESPONSIBLE STAFF:
Lisa Mitchell, Private Event Coordinator
COORDINATED WITH:
All appropriate departmental staff has reviewed, and the event has
been coordinated with Beach Patrol, Public Works, the Office of the
Fire Marshal and OCPD.
ATTACHMENT(S):
1)
2)
3)
4)
5)
6)
7)
May 2015 Calendar

Cover Sheet
Application
Applicant/Staff Communication Report
Layout
General Event Schedule
General Site Design
May
Sun
Mon
10
SE - Springfest
11
17
PE - Cruisin OC
24
Tue
5
PE Showell Walk Rain
Date - TENTATIVE
Wed
Thu
Fri
1
PE Showell Walk TENTATIVE
Sat
2
PE Knights of Columbus
Procession
PE Marathon
PE KGBA TENTATIVE
PE - Ride for the Feast
PE - Crab Soup Cook-off
TENTATIVE
7
SE - Springfest
8
SE - Springfest
9
SE - Springfest
12
13
14
PE - Cruisin OC
15
PE - Cruisin OC
16
PE - Cruisin OC
18
19
20
25
26
27
21
28
PE NVL Open TENTATIVE
22
29
23
PE KGBA - TENTATIVE
30
PE - Ravens Parade
31
2015
Ocean City Private Events

Name of Event: National Volleyball League Ocean City Open
New Event: YES
Date of Event: May 28-31, 2015

Date Application Received: January 15, 2015
Application Fee Paid: Invoiced
Date Returned from All Departments: January 26, 2015
Private Event Fees: $1,100.00

Town Asset & Support Fee: -0Total Fees to Be Paid to Town: $1,100.00
Things to Note:
This is a beach volleyball tournament with sponsor activations, music, entertainment and television broadcast.
Set up would take place Tuesday and Wednesday, May 26-27, 2015.
Breakdown would take place Sunday and Monday, May 31 and June 1, 2015.
Expected number of participants is 60 to 164.
Expected number of spectators per day is 500.
Event footprint would start at northern edge of Dorchester St. and run north to Talbot, approximately 200x500.
Would provide product sampling from a sun care provider, volleyball related items, magazines, etc.
Would erect a tent onsite.
Request the town provide an appropriate amount of trashcans stationed around the courts and spectator areas as well as
the general entry/exit points within the footprint and empty the trash cans nightly.
Request to serve alcoholic beverages in a controlled VIP area.
Potential sponsors of the event are as follows: Australian Gold, Club Med, Bud Light, Polaroid, The One Group, etc.
Comments from Department Representatives:
Parks There seems to be a lot of unanswered and undetermined factors. Would prefer the TBD and need guidance
sections be resolved prior, but if the applicant needs a blessing to move forward, then this can be worked out after the
fact. Need to know what the sponsor activations are going to be. Applicant must listen to OCBP and their rules for
inclement weather. Town has an agreement with Panama Jack that needs to be considered. Alcohol on the beach is a
decision for the Mayor and City Council. Beach franchise owner will have to be informed of the event. Overall, it
would be great to have a big volleyball tournament in Ocean City. But, it seems theres a lot of work to still do.
OCBP - It is imperative that as beach events set-up they do not interfere with the normal patrolling of the beach for
safety. They must set-up at least 30-feet off the easternmost edge of the Boardwalk to allow OCBP vehicles to enter,
exit and traverse the beach. The applicant must also establish east to west lanes so OCDP may move from the back of
the beach to the waters edge. The easternmost field(s) should allow for a buffer zone between game play and beach
patrons not affiliated with the event, so that an out-of-bounds ball does not strike an unsuspecting patron. Applicant
must take responsibility to keep these areas open and that their spectators do not setup in clear areas. Applicant
should set-up the southernmost field north of Dorchester Street beach access, which they have indicated they will do,
so they do not interfere with OCBP emergency operations. Instead of portable restrooms on the beach, suggest the use
of Caroline Street comfort stations. Applicant indicates a sun care sponsor, which may impact the Town of Ocean
Citys sponsorship with Panama Jack. They should not have a competitor on the beach. Applicant indicates Bud
Light is a sponsor. They need to be aware of the laws regarding public consumption of alcohol.
Risk Insurance certificate must be submitted prior to the event.
Fire Marshal Applicant needs to obtain tent and air inflated structure permits.
Public Works - Will provide trashcans and empty nightly.
OCPD Will have officers from shift periodically check the event.
Tourism, Emergency Services, Transportation, OCCC No comments or concerns.
Date on Council Agenda: February 10, 2015

Event Approved of Denied:
Other:
NATIONAL VOLLEYBALL LEAGUE OCEAN CITY OPEN

This is a new event requesting to take place on the beach between Talbot and Dorchester Streets.
Established in 2010, the NVL is a professional beach volleyball league built by players for all players,
united in one mission: to create a sustainable future for pro beach volleyball in the U.S. Home to eight
professional events in 2015, the grassroots NVL Beach Series, and the NVL Club Med Beach Volleyball
Academy, the NVL is the only national platform for current professionals and players of all levels to
showcase their talents and pursue their aspirations in the sport. With sand volleyball now a sanctioned
high school sport and the NCAAs fastest-growing emerging sport in history, the NVL is building the
infrastructure for young players to achieve their dreams.
Parks
In reviewing the application there seems to be a lot of unanswered and undetermined factors. Hesitant
to go to full Mayor and City Council before going before the R&P Committee, but understand the
circumstances. Would prefer the TBD and need guidance sections be resolved prior, but if the
applicant needs a blessing to move forward, then this can be worked out after the fact.
Need to know what the sponsor activations are going to be, as other Departments will be interested in
the type of music and entertainment scheduled to be offered.
The applicant needs to understand OCBP rules for inclement weather on the beach and it is not up for
discussion.
Applicant states they would like to distribute sun care products. Please verify with OCBP regarding the
Panama Jack agreement. Applicant has been informed and will abide by city contracts.
Having alcoholic beverages on the beach is a Mayor and City Council decision, but they have permitted
this in VIP areas in the past. Applicant has informed alcohol will be contained to controlled, secured
areas (VIP).
Is there a beach franchise owner that will be affected by the event? Will provide vendor information to
applicant.
Town assistance requested by applicant is a big one to just have a TBD noted. Require assistance with
daily trash pickup, OCPD and OCBP patrols. These has already been addressed.
Nothing is signed on page 7 and 8. Why? Have since provided.
Overall, it would be great to have a big volleyball tournament in Ocean City. However, it seems theres a
lot of work to still do with this.
Beach Patrol
It is imperative that as beach events set-up they do not interfere with the normal patrolling of the beach
for safety. They must set-up at least 30-feet off the easternmost edge of the Boardwalk to allow OCBP
vehicles to enter, exit and traverse the beach. The applicant must also establish east to west lanes so
OCDP may move from the back of the beach to the waters edge. The easternmost field(s) should allow
for a buffer zone between game play and beach patrons not affiliated with the event, so that an out-of-
bounds ball does not strike an unsuspecting patron. Applicant must take responsibility to keep these
areas open and that their spectators do not setup in clear areas. Applicant should set-up the
southernmost field north of Dorchester Street beach access, which they have indicated they will do, so
they do not interfere with OCBP emergency operations.
Instead of portable restrooms on the beach, suggest the use of Caroline Street comfort stations.
Applicant will comply.
Applicant indicates a sun care sponsor, which may impact the Town of Ocean Citys sponsorship with
Panama Jack. They should not have a competitor on the beach. While Panama Jack no longer has an
official contract with the Town, they do provide all the sun care each season. When the contract was
current it was City wide and they did not allow a competitive product. OCBP gets so much more from
Panama Jack than OCBP has have ever given them, OCBP doesn't want to risk losing this relationship. If
Panama jack did not provide OCBP with product, it would cost the Town of Ocean City tens of thousands
of dollars to provide staff that important protection.
Applicant indicates Bud Light is a sponsor. They need to be aware of the laws regarding public
consumption of alcohol.
Risk Management
The insurance policy needs to be obtained and an insurance certificate naming the Town of Ocean City
submitted prior to the event. Also, the hold harmless clause must be signed. Applicant has provided a
copy of the COI and will make requested changes if approved.
Fire Marshal
The applicant needs to obtain tent and air inflated structure permits from the Office of the Fire Marshal.
Also, provide more information on medical presence at the event and total number of participants.
Applicant asked for copies the tent and inflatable permits, and will complete once the site plan has been
confirmed.
Applicant continued, stating they have a tour physician that secures medical personnel for each tour
stop. The services are focused on sports medicine and therapy for tour athletes, but are all certified and
medically trained in first aid and CPR. The medical staff is also used for any onsite patron issues.
As for total number of participants, the main event includes 64 athletes. The qualifier, which is held the
day before the main event, averages 60-100 additional athletes, depending on the size of the local
beach volleyball market.
Public Works
While the applicant has not requested any assets or support from the town, the following issues need to
be addressed before granting approval.
1.
2.
3.
4.
Bleachers
Trashcans with trash bags around the event footprint
Maintenance/cleanliness of the event footprint
Placement of Broyhill dumpsters and removal daily
5. Parking on either streets or parking lots

The applicant responded as follows:
1. Would most likely have a stadium court that will contain bleacher seating for patrons.
2. Would like to work with Public Works to ensure an appropriate amount of trashcans are
stationed around the courts as well as spectator areas and general entry/exit points within the
footprint.
3. Event staff keeps the footprint is as clean as possible throughout the event. Request Public
Works empty trash cans at the end of each day.
4. If Public Works is unable to provide the above request, request Public Works provide
guidance/input to secure waste management services with a private company.
5. There is a 53-foot trailer that would need secure parking for the duration of the event. Ideally, a
reserved area/lot for staff and official vehicles as well. Would inform general public of public
parking.
OCPD
Unclear about the response of question #21, need guidance as to what is required for safety; security
from Ocean City. The application continues, requesting security from Ocean City and OCPD is
uncertain if they are referring to private security or are requesting police resources. As it stands, OCPD
will notify appropriate shifts of the event, if approved, and ask patrol checks be conducted throughout
the duration of the event. Similar events have occurred and patrol checks have been sufficient, so
current thought is to proceed in a similar manner, but will defer to the applicant to determine needs
based on their knowledge of the event and past events theyve run.
They would also like an indication of anticipated spectator attendance. The applicant answered, stating
an expected audience per day is 500.
The applicant responded they would like to proceed with what has worked for previous events. Patrol
checks are how they have accommodated safety and security needs in California and Florida beach
markets. They have looked to hire private security to secure footprint overnight.
Transportation
Wants it made aware that, weather permitting, the Boardwalk Trams will be in operation during the
event.
Tourism, OCCC, Emergency Services
No comments or concerns

5. NEW BUSINESS
&. Private Event Approval Request for Bikefest September
17-20, 2015
TOWN OF
TO:
THRU:
FROM:
RE:
DATE:
Agenda Item #
5C
Council Meeting
February 10, 2015

Lisa A. Mitchell, Private Event Coordinator
Bike Fest 2015
February 4, 2015
ISSUE(S):
2015 Ocean City Bike Fest
SUMMARY:
This event uses the Sunfest site set up at the Inlet Lot for Bike
related live entertainment, demonstrations, vendors, food, beer and
parties. There will also be a Boardwalk Parade to open the event.
FISCAL IMPACT:
Potential positive economic impact from lodging, food and beverage,

recreation and other incidental expenditures related to this event.
Per the MOU, the Town provides in-kind services and the use of the
Sunfest site, including tent rental and additional onsite
infrastructure. In exchange, the event promoter pays the Town of
Ocean City $85,000.00 to offset costs incurred by the Town such as
the loss of Inlet Lot parking revenue, Public Works asset and
support fees, and Police, Transportation, and EMS services. In
addition, the promoter pays $25,000 for use of the Ocean City
Convention Center.
Additional Private Event Fees paid to the Town total $1,175.00,
consisting of a $100 Application Fee, a $75 Concession Fee and a
$1,000 Space Usage Fee [$250.00 per day for four (4) days].
RECOMMENDATION:
Approve the event as presented in the MOU.

First Class Resort & Tourist Destination
ALTERNATIVES:
No staff alternatives suggested.
RESPONSIBLE STAFF:
Lisa Mitchell, Private Event Coordinator
COORDINATED WITH:
All appropriate departmental staff has reviewed and the event has
been coordinated.
ATTACHMENT(S):
1)
2)
3)
4)
5)
Calendar
Application
Layout
MOU
Asset & Support Fees
September
Sun
13
20
Mon
14
21
Tue
Wed
28
Fri
Sat
10
11
12
PE 911 Parade of
Brothers
PE Atlantic Clubs
Walk/Run for
Recovery
17
18
19
PE Bikefest TENTATIVE
24
25
26
Sunfest
PE Sunfest Kite
Fest
Sunfest
PE Sunfest Kite
Fest
Sunfest
PE Sunfest Kite
Fest
PE Pigs on the
Beach
PE Treasure Hunt
on the Beach TENTATIVE
15
22
16
23
27
Thu
29
30
Sunfest
PE Sunfest Kite
Fest
PE Treasure Hunt
on the Beach TENTATIVE
2015
TOWN OF OCEAN CITY

301 BALTIMORE AVENUE
OCEAN CITY, MARYLAND 21842
MEMORANDUM of UNDERSTANDING
BETWEEN
THE MAYOR AND CITY COUNCIL TOWN OF OCEAN CITY, MARYLAND
AND
KATHY MICHEAL FOR OC BIKEFEST 2015
SUBJECT: OC BIKEFEST 2015
1. Purpose. This Memorandum of Understanding (MOU) defines the terms by which OC

Bikefest 2015 shall be presented, provides the dates of OC Bikefest and identifies what each
party shall accomplish and by what dates. The Private Event Application and all signed
disclosers submitted by Kathy Micheal shall be incorporated into this MOU by reference.
2. Request for Permission to Conduct Event. Kathy Micheal has approached the Town of
Ocean City (TOC) with a Private Event Application requesting permission to conduct OC
Bikefest in Ocean City during the dates of September 17 20, 2015.
3. Event Summary. This event uses the Sunfest site set up at the inlet lot as well as portions
of the Convention Center for Bike-related live entertainment, demonstrations, vendors,
food, beer and parties. The OC Bikefest Headquarters will be located at the Ocean City
Convention Center and the inlet lot will be an accessory site. This year, for the 5th
Anniversary, a Boardwalk Parade will take place on Thursday morning, to open the event.
The Parade, beginning on the Boardwalk at 27th Street shall proceed south at 10:30 am to
4th Street, where the parade shall continue south on the concrete pad, around the pier and
enter the festival grounds by 10:00 am.
4. Scope. This Memorandum of Understanding (MOU) includes the planning, coordination
and execution of OC Bikefest 2015 and identifies tasks/responsibilities for each party. This
MOU shall remain in force until terminated by either party.
5. Financial Agreement. OC Bikefest will pay the Town $85,000 support fee for the use of
the Sunfest site at the inlet lot and $25,000 rental fee for the Ocean City Convention
Center. A completed contract with the Convention Center Director will be a part of this
MOU by reference. OC Bikefest may apply to the Tourism Advisory Board (TAB) for
supplement funds. Services requested by the OC Bikefest Promoter shall be approved by
the City Manager.
6. The attached site diagrams shall be a part of this MOU. Amendment of this diagram
requires approval of the City Manager.
Page 1 of 6
7. The following identifies the specific support responsibilities of Kathy Micheal for OC
Bikefest:
a. Coordination of all event advertising and promotional supplements with the
Director of Tourism.
b. Complying with the Sunfest/OC Bikefest timeline.
c. OC Bikefest may solicit, secure or change its sponsorships so long as it
complies with the Towns beverage and sun care product sponsorships.
Sponsorships shall not include drugs, sex or tobacco. Alcohol or gambling
sponsorships are permissible provided no messages encourage the act of
gambling or promote the consumption of alcohol. Alcohol-related messages
must be used as a positive teaching public service announcement, i.e. beer
name Drink Responsibility.
d. Paying all OC Bikefest invoices by October 31, 2015. All invoices for this
event must reflect OC Bikefest.
e. Keeping the Mayor and City Council fully informed of actions related to OC
Bikefest by appearing before them a minimum of once every 90 days from
completion of MOU to the completion of the event.
f. In the event of damage to Town of Ocean City or Select Events Rentals
equipment, OC Bikefest shall pay up to $10,000 of the insurance policy
deductible for the Town of Ocean City or Select Events Rental.
g. Complying with all State, County and City ordinances and codes.
h. Acquiring permits required by the Town and other agencies i.e. Highway,
Parks, Fire Marshal, County Health and Alcohol.
i. Manage all trash within the site moving it to TOC dumpsters at no cost to the
Town. All trash will be placed in receptacles.
j. OC Bikefest Staff shall contract work with an independent contractor for the
storage and recycling of cooking grease.
k. Insurance required by the Town. $1,000,000.00 general liability insurance.
The Mayor and City Council must be listed as the additional insured on the
Event policy. This document must be filed with the Towns Risk Manager
prior to any permit being issued.
l. OC Bikefest shall pay up to $10,000 of the insurance deductible for any loss
to the Towns contractor, Select Events.
m. OC Bikefest will be asking for beer to be sold in the Convention Center
parking lot. OC Bikefest will ask a not for profit organization to sell beer. It
is OC Bikefests responsibility to age identify.
n. OC Bikefest must enter into an agreement with the Town of Ocean Citys
comfort service provider for the ability to utilize the VIP toilet trailers that
are on-site.
o. OC Bikefest is required to have contracted event security for all days/nights
of the event from Monday, September 14th at 7:00 a.m. through Monday,
September 21st at 7:00 a.m.
Page 2 of 6
p. OC Bikefest is permitted to loadin at the Inlet Lot on Monday thru

Wednesday, September 14-16, 2015 from 7:00 am until 7:00 pm.
q. OC Bikefest is permitted to begin load-in at the Ocean City Convention
Center on Wednesday, September 16, 2015 at 8:00 am.
r. Breakdown of the Inlet Lot event site must be complete by midnight Sunday,
September 20, 2015. All equipment and event items must be out of the Inlet
Lot. The only exception is for drivable equipment that can be moved by
Town of Ocean City personnel if in the way of Sunfest setup.
s. Both the Inlet Lot and Ocean City Convention Center event sites must be
returned to the Town of Ocean City clean and free from Bikefest items. Any
Town of Ocean City assets that were moved for OC Bikefest by OC Bikefest
staff must be returned to their original location(s).
t. OC Bikefest will limit merchandise for sale outside the main gate in the Inlet
Lot to official OC Bikefest merchandise only.
u. OC Bikefest will not allow burnouts to be performed anywhere on the Inlet
Lot.
v. Providing portable toilets for the expected attendance with twice-daily
servicing.
w. Full disclosure of Event expenses and revenues.
x. No staking of tents at the West Ocean City Park n Ride.
y. Pass a Fire/Safety inspection by the Office of the Fire Marshal.
z. OC Bikefest shall maintain 20 fire lanes in all areas of the inlet and
Convention Center lots.
aa. OC Bikefest shall, at its expense, provide contracted EMS resources to
support the Convention Center site. Transportation fees are the
responsibility of the individual or OC Bikefest.
bb. OC Bikefest shall provide a complete list of vendors 30 days prior to the start
of this event.
cc. OC Bikefest shall provide one (1) approved wristband that attendees will
wear to access the Town of Ocean Citys bus service free of charge.
dd. OC Bikefest shall comply with additional parameters as outlined in the
Ocean City Convention Center agreement.
8. The following identifies the specific responsibilities of the Town of Ocean City:
a. Advertising as agreed to by the Town.
b. Providing in-kind services as determined by the Town.
c. Town of Ocean City will enforce all policies, procedures, rules and
regulations.
d. Complying with the OC Bikefest/Sunfest Timeline.
e. Ocean City Police Department will control access to the inlet site at South
First Street. Promoter shall control vehicle parking, maintaining 20 fire
lanes at all times.
f. Permitting OC Bikefest to serve beer and malt beverages (not to exceed
22% alcohol per volume) within the fenced Sunfest site from 11:00 a.m. to
8:00 p.m. daily with the exception of Sunday, when the hours are 12:30
Page 3 of 6
g.
h.
i.
j.
k.
l.
m.
n.
p.m. to 5:00 p.m., subject to approval of the Worcester County Board of

Licensed Commissioners.
Providing police support, maintaining the beach, public transportation,
and trash removal.
Providing Emergency Operations and response.
The Ocean City Fire Company will provide one staffed EMS crew for the
inlet lot site during the 4 days of the event. Transportation fees are the
responsibility of the individual or OC Bikefest.
A full bus schedule will be in operation during OC Bikefest.
OC Bikefest attendees with the one (1) approved wrist band shall ride
City buses for free.
The Park and Ride shall be open, including the restrooms, with buses
operating.
Town operated paid parking will be suspended from Tuesday, September
15, 2015 thru and including Sunday, September 20, 2015.
The Sunfest site at the inlet lot, as set up from Monday September 14,
2015 at 7:00 a.m. to Sunday, September 20, 2015 at midnight, will
include:
1)
2 each 80 x 300 arts and craft tents with booths, electric and
lighting installed. The equipment in these tents may not be
modified.
2)
1 each 80 x 195 food tent with booths, electric and lighting
installed. The equipment in this tent may not be modified.
3)
2 each 20 x 120 tents (Gourmet and Demonstrating Artist)
with booths, electric and lighting installed. The equipment in
these tents may not be modified.
4)
2 each 20 x 20 tents (OC Fire Company and Event Retail)
with lights and electric installed.
5)
1 each 100 x 200 entertainment tent with a 40 x 40 stage
6)
1 each 60 x 70 back stage tent with 3 each office trailers
7)
1 each 30 x 45 outdoor stage tent with 24 x 24 stage with
electric installed. The equipment in this tent may not be
modified.
8)
The use of available metal fencing (with feet) available.
9)
Four (4) each beer sites (barrels and counters).
10)
Provide use of the Inlet Lots Public Address system, gazebo,
Sunfest barrels and counters to OC Bikefest. This does not
include use of the rented backstage VIP toilet trailers. OC
Bikefest will have to enter into an agreement with Piersons for
the ability to use the VIP toilet trailers.
10. The term of the Agreement shall be for 1 year and will terminate on October 1, 2015.
Page 4 of 6
11. Optional Security Provision. In the event of exigent circumstances arising during the
course of the Private Event, the Town may, at its sole discretion, deploy or divert such
public safety personnel and resources as deemed necessary. The Private Event promoter
shall be responsible for the cost of the public safety personnel and resources provided in
this case.
12. The Town of Ocean City may at its discretion at any time and without any financial
liability cause the evacuation of the site(s) and/or the dismantling of the site(s).
13. The Town will receive no portion of the OC Bikefest revenue.
14. The Private Events Coordinator of the Town of Ocean City shall serve as the Towns
agent for the planning, coordination and execution of Sunfest/OC Bikefest. Kathy Micheal
shall serve as the agent for the OC Bikefest. Should any terms of this MOU not be met or
should the tasks identified in the Timeline not be accomplished on schedule, the Town of
Ocean City may terminate this agreement at its discretion without penalty.
15. This MOU is effective when signed below and may be terminated by either party at any
time. However, the terminating party shall reimburse the non-terminating party for all
out-of-pocket costs to date, unless noted otherwise.
16. Termination: This Agreement shall be effective when signed below and may be
terminated by either party in the event of material breach. Before such termination, the
party citing material breach shall give breaching party thirty (30) days written notice and
an opportunity to cure the breach with such period. In the event of termination the
terminating party shall reimburse the non-terminating party for all out-of-pocket costs to
date.
17. In the event a dispute arises regarding this MOU which cannot be resolved by the
parties, the matter shall be submitted to mediation before commencement of litigation or as
agreed by the parties.
18. Non Assignment. This MOU is not assignable by OC Bikefest without the express
written consent of the Mayor and City Council of Ocean City, which consent may be
withheld for any reason at the sole discretion of the Mayor and City Council of Ocean City.
Furthermore, should Kathy Micheal cease to be associated with OC Bikefest, the Mayor
and City Council may terminate this MOU.
19. No Partnership. This MOU does not create a partnership or any other business entity
or affiliation between the parties, other than to define the respective rights and obligations
of the parties as to the presentation of the OC Bikefest.
20. Final Agreement. This MOU represents the final agreement between the parties
hereto, and shall only be amended or modified by written agreement between the parties.
Page 5 of 6
Kathy Micheal
OC Bikefest
David L. Recor
City Manager
For the Mayor and City Council
Date___________________
Date___________________
Page 6 of 6
DRAFT
Town of Ocean City
Event:
Asset Rate Schedule - Events
Attachment A
Start Date:
End Date:
Update:8/12/14
PER DAY/TASK
Asset Description
Prev Cost
STATIC HARDWARE/EQUIP.
Department of Public Works
Barricade (Type 1) Wooden - A (/day)
Barricade (Type 2) SE, Aluminum (/day)$
5.00
Barricade (Type 3) Wooden -Long (/day)
$
4.00
Barricade (Type 4) Traffic, Plastic (/day)$
4.00
Traffic Cone (/day)
$
2.00
300 Gln Trash Container (/day)
$
2.00
55 Gln Trash Liners (per box)
$
25.00
Electronic Mobile Message Board (/hr)$
40.00
Portable Stage 24x40 (/day)
$
200.00
4x8 Stage Platform Section (/day)
Special Events Division

Portable PA System, W/L Mic (/day)
Gazebo (per use)
Picnic Table (per day)
TOC Cost
Cost/Hour
O/T Rate
# of Hours
# OT Hours
# of Days Qty Used
$
$
$
$
$
$
$
$
$
$
3.00
5.00
4.00
4.00
2.00
5.00
25.00
50.00
350.00
20.00
4.00
4.00
6.00
4.00
4.00
1.00
4.00
4.00
4.00
$
$
20.00 $
500.00
2,500.00
25.00
4.00
4.00
4.00
Line Cost
Change
Extended Cost
$
-
100%
100%
100%
100%
50%
100%
100%
25%
25%
$0.00
$0.00
$0.00
$0.00
$0.00
$1,000.00
$0.00
$0.00
$1,050.00
$2,760.00
$
$
$
$
$
$
$
$
$
$
4,000
16
480
600
1,000 Reduced to bulk cost
625
400
350 Reduced to reflect flat rate
920 Reduced to reflect flat rate
1.00 $ 2,000.00
1.00 $ 10,000.00
50.00 $ 5,000.00
100%
0%
80%
$0.00
$10,000.00
$1,000.00
$
$
$
2,000
Part of Sunfest use cost
4,000 Reduced to previous rate
ACTIVE HARDWARE/EQUIP.
Pick-up Truck/Operator
Tractor Trailer Truck
$
$
42.21 $
76.07 $
63.32
114.11
33.00
2.00
$
$
1,392.93
152.14
100%
100%
$0.00
$0.00
$
$
1,393
152
LABOR POSITIONS
Maintenance Staff
Supervisor
$
$
27.21 $
36.06 $
40.82
54.09
20.00
15.00
$
$
544.20
540.90
100%
100%
$0.00
$0.00
$
$
544
541
17,021
TOTAL RAW COST

M&CC MANDATED CHANGE
TOTAL CONVEYED COST
Expaination/Description
4,000.00
16.00
480.00
600.00
2,000.00
625.00
400.00
1,400.00
3,680.00
200.00
1.00
20.00
75.00
100.00
25.00
2.00
1.00
46.00
$
$
$
$
$
$
$
$
$
$
M&CC %
$ 32,831.17
$15,810.00
OCPD and OCVFD assets shall be provided separately and on a case by case basis.
Availability of Assets is not garaunteed and subject to change without notice.
Town of Ocean City needs shall take priority as related to use of Town assets.
Town of Ocean City Confidential
2/4/2015
Page 1

5. NEW BUSINESS
D. Request Approval to Solicit Proposals for Foodservice at the
Ocean City Convention Center presented by Procurement
Manager
TOWN OF
TO:
FROM:
THRU:
RE:
DATE:
Agenda Item #
5D
Council Meeting
February 10, 2015

Catrice Parsons, Procurement Manager
Convention Center Foodservices Request for Proposals
February 4, 2015
ISSUE(S):
Request Councils approval to solicit proposals for foodservice at

the Ocean City Convention Center.
SUMMARY:
The current foodservice contract expires June of 2015. The

current vendor has been providing foodservices since 1997, with
contract extensions and renegotiation of terms and services.
FISCAL IMPACT:
The Town asks Vendors to provide a capital investment for award

of said services. The funds will be invested in the Convention
Center in accordance with the Towns strategic goals. The
agreement term will be no more than three (3) years, unless
otherwise agreed upon.
RECOMMENDATION:
Recommend approval to solicit proposals for said services.

ALTERNATIVES:
Renegotiate with current vendor.
RESPONSIBLE STAFF:
COORDINATED WITH:
Larry Noccolino, Director of Convention Center
ATTACHMENT(S):
Advertisement
ADVERTISEMENT
Town of Ocean City, Maryland
Ocean City Convention Center Foodservice and Vending
The Town of Ocean City is seeking proposals from qualified and experienced vendors to provide
Foodservice and Vending services for the Ocean City Convention Center and for said services to
be in conformity with the specifications detailed in the Proposal Documents.
Proposal Documents for the Ocean City Convention Center Foodservice and Vending may be
obtained from the Town of Ocean Citys Procurement Department by either e-mailing
Procurement Manager, Catrice Parsons, at cparsons@oceancitymd.gov or by calling 410-7236643 during normal business hours, or via the Towns website,
http://oceancitymd.gov/oc/departments/finance/procurement/#tab-1420746537421-3-4.
Vendors are responsible for checking this website regarding this bid prior to submitting their
Completed Proposal Documents. The Town of Ocean City is not responsible for the content of
any Proposal Document received through any third party bid service. It is the sole responsibility
of the vendor to ensure the completeness and accuracy of their Completed Proposal
Documents.
A pre-proposal conference will be held in the Room M201 of the Town of Ocean Citys
Convention Center located at 4001 Coastal Highway, Ocean City, MD 21842 on Friday, February
20th at 1:00 p.m. lasting until 3:00 p.m. or earlier, depending on Vendor questions. The last day
for questions will be Monday, February 23rd at noon. Sealed Proposal Documents are due no
later than Monday, March 9th at 4:30 p.m. and will be opened and read aloud at the Mayor and
City Council Work Session held on Tuesday, March 10th, at 1:00 p.m. Bids are to be submitted to
Town of Ocean City, Attn: City Manager, 301 N. Baltimore Avenue Room 230, Ocean City, MD
21842. Late Bid Document will not be accepted.
Minority vendors are encouraged to compete for award of the Ocean City Convention Center
Foodservice and Vending.
Catrice Parsons
Procurement Manager

5. NEW BUSINESS
E. Request Approval to Solicit Bids for OCDC Model Block
Demolition presented by Procurement Manager
TOWN OF
TO:
FROM:
THRU:
RE:
DATE:
Agenda Item #
5E
Council Meeting
February 10, 2015

Ocean City Development Corporation Model Block Demolition
February 4, 2015
ISSUE(S):
Request Councils approval to bid out demolition services for the

OCDC Model Block
SUMMARY:
To demolish nine buildings for the OCDC Model Block that will be
used for parking in the near term and ultimate redevelopment in
the long term.
FISCAL IMPACT:
This project will be funded by the OCDC through grants.
RECOMMENDATION:
Bid out demolition services.

Revitalize Ocean City: Development and Redevelopment
ALTERNATIVES:
OCDC do the contracting.
RESPONSIBLE STAFF:
COORDINATED WITH:
Terence McGean, Director of Engineering
ATTACHMENT(S):
1) Advertisement
2) Form of Bid
3) Drawing of properties to be demolished
ADVERTISEMENT
OCDC Model Block Demolition
The Town of Ocean City is seeking bids from qualified and experienced vendors to demolish the
OCDC Model Block and for said work to be in conformity with the specifications detailed in the
Bid Documents.
Bid Documents for the OCDC Model Block Demolition may be obtained from the Town of Ocean
Citys Procurement Department by either e-mailing Procurement Manager, Catrice Parsons, at
cparsons@oceancitymd.gov or by calling 410-723-6643 during normal business hours, or via
the Towns website, http://oceancitymd.gov/oc/departments/finance/procurement/#tab1420746537421-3-4. Vendors are responsible for checking this website regarding this bid prior
to submitting their bids. The Town of Ocean City is not responsible for the content of any Bid
Document received through any third party bid service. It is the sole responsibility of the
vendor to ensure the completeness and accuracy of their Completed Bid Documents.
A pre-bid meeting will be held at the Town of Ocean Citys Community Room located at City
Hall 301 N. Baltimore Avenue, Ocean City, MD 21842 on Thursday, February 19th at 1:00 p.m.
The last day for questions will be Friday, February 27th at noon. Sealed Bid Documents are due
no later than Monday, March 9th at 4:30 p.m. and will be opened and read aloud at the Mayor
and City Council Work Session held on Tuesday, March 10th, at 1:00 p.m. Bids are to be
submitted to Town of Ocean City, Attn: City Manager, 301 N. Baltimore Avenue Room 230,
Ocean City, MD 21842. Late Bid Document will not be accepted.
Minority vendors are encouraged to compete for award of the OCDC Model Block Demolition.
Catrice Parsons
Procurement Manager
FORM OF BID
To whom it may concern:
We, ____________________, organized and existing under the laws of the State of Maryland doing
business as a/an sole proprietorship/partnership/corporation, hereby submit our Completed Bid
Documents for the OCDC Model Block Demolition as indicated in the Bid Documents.
Having carefully examined and being in compliance with the Towns Bid Documents and having received
clarification on all items of conflict or upon which any doubt arose, the undersigned hereby requests
consideration of our Completed Bid Documents and propose to perform all Work for the demolition of
the OCDC Model Block Demolition in strict accordance with the Bid Documents, within the time set forth
therein, and at the prices stated below.
Vendor hereby agrees to commence Work under the Contract on or before a date to be specified in the
Notice to Proceed and to fully complete the Work within Contract Time as specified in the Specifications
section of this Bid Document.
If the Successful Vendor fails to complete the Work within the Contract Time, or extension of time
granted by the Town, then the Successful Vendor will pay to the Town $250.00 per calendar day that the
Successful Vendor is in default after the time stipulated in the Bid Documents for each Phase.
Vendor acknowledges receipt of the following Addendum(s):
___________________________________________________________
____________________________________________________________
Base Bid Prices:

Item #
001
002
Quantity
1 Lump Sum
1 Lump Sum
Description
Phase 1 Buildings A-D
Phase 2 Buildings E-J
Unit Cost
Total Cost
Total Base Bid
Contingent Unit Prices:

003
004
005
006
Square Foot price to remove and dispose of asbestos floor tile including
mastic
Square Foot price to remove and dispose of asbestos ceiling tile
Square Foot price to remove and dispose of covered asbestos siding
Square Foot price to remove and dispose of covered asbestos roof
shingles
$__________/sf
$__________/sf
$__________/sf
$__________/sf
NOTE: THIS BID FORM MUST BE SIGNED BY AN OFFICER OF YOUR COMPANY OR AN AUTHORIZED
AGENT FOR THIS BID TO BE CONSIDERED VALID.
NOTE: Completed Bid Documents will include all applicable fees.
TOTAL BASE BID ________________________________________________________________

(EXPRESSED ALPHANUMERICALLY)
Respectfully submitted,
__________________________________
Signature
_________________________________
License Number
________________________________
_________________________________
Address
__________________________
Title
________
Date
(Affix Corporate Seal)

5. NEW BUSINESS
F. Discussion of Adoption of New Flood Maps and Related
Changes to the Town Code presented by City Engineer and
Chief Building Official
TOWN OF
TO:
THRU:
FROM:
RE:
DATE:
Agenda Item #
5F
Council Meeting
February 10, 2015

Terence J. McGean, PE, City Engineer
New Flood Insurance Rate Maps
February 3, 2015
ISSUE(S):
Adoption of the new Flood Insurance Rate Maps and related

changes to the Town Code
SUMMARY:
FEMA notified the City that the proposed Flood Insurance Study for
Ocean City has been completed, all public comments have been
addressed and the appeal process for the proposed new Flood
Insurance Rate Maps has ended.
The new maps will become effective on July 16, 2015. Changes to
the maps impact the Citys Flood Damage Prevention Ordinance
(Chapter 38) and the Citys Building Code (Chapter 10). Staff is
recommending changes to the Code that adopt the maps while
maintaining our high standards of storm resistant construction.
Either our existing Code or our proposed draft Code revisions must
be submitted to the State National Flood Insurance Program
Coordinator within 1 month.
FISCAL IMPACT:
Based on the new maps, many ocean front properties should see a
significant reduction in their flood insurance rates. Some bayside
properties are likely to see an increase. The cost of construction
should not be impacted by the proposed Code changes.
RECOMMENDATION:
Forward revised Code, per attached draft revisions to Chapter 10

and Chapter 38, to the State NFIP coordinator for review.
Revitalized Ocean City: Development and Redevelopment
ALTERNATIVES:
Make no changes to the existing Code other than flood map

adoption and forward to the State NFIP coordinator for review.
RESPONSIBLE STAFF:
Kevin Brown, Chief Building Official; Terence McGean, City Engineer
COORDINATED WITH:
Blaine Smith, Asst. Planning & Community Development Director;

Robert Nelson, Planner; Gail Blazer, Environmental Engineer
ATTACHMENT(S):
1)
2)
3)
4)
Summary Power Point

Notification letter from FEMA dated Jan. 16, 2015
Proposed revisions to Chapter 10
Proposed revisions to Chapter 38
Flood Insurance
Rate Map
RECOMMENDED DRAFT CODE REVISIONS
FEBRUARY 10, 2015
Goal: allow property owners to take

advantage of the lower flood
insurance rates most will recognize
using the new maps, while maintaining
a safe and sustainable community.
DONT CHANGE THE FACTS TO ACCOMMODATE THE LAW, CHANGE
THE LAW TO ACCOMMODATE THE FACTS
Flood Map Comparison

Existing (1986)
Proposed (2015)
Most ocean front properties

located in the V zone.
Most boardwalk front properties

located in A0 Zone
Virtually all property in Ocean City

located in a 1% (100 year) flood
zone with a mapped Base Flood
Elevation (BFE)
Due to beach replenishment, the

dune, and the seawall, there are no
V zones west of the building limit line.
Ocean front properties south of 143rd
street are now located completely
out of the 1% flood zone.
Ocean Place & Starboard Tack

Condo removed from north end
ocean front flood zone during
appeal process.
Most boardwalk front properties out

of the 1% flood zone.
Many parts of Ocean City now

located outside the 1% flood zone
with no mapped Base Flood
Elevation.
Typical 1986 Flood Map
Typical proposed flood map
Insurance implications of new

maps
Almost all ocean front properties will see a significant decrease in their
flood insurance costs due to no longer being located in the V zone
Many other properties will also see a reduction in flood insurance rates
due to no longer being located in the 1% flood zone (V or A)
Properties remaining in the same flood zone as the existing maps are
likely to see an increase in their rates due to overall nationwide rate
increases.
Unfortunately, most mortgage companies may not require flood
insurance if a property is located outside of a mapped 1% flood zone.
Because of this, instead of taking advantage of the ability to get flood
insurance at a much lower rate, many may chose to drop flood
insurance altogether.
Staff recommends that the Council urge every Ocean City property
owner to maintain flood insurance and to work with banks, insurance
agents, property managers and other stakeholders towards this goal.
Building code implications of new

maps
The existing Ocean City flood prevention code (Chap 38) relies
heavily on the FIRM mapped Base Flood Elevations. Therefore if no
action is taken:
There would be no requirement for any minimum first floor elevations

for properties located outside of the 1% flood zone (A, A0, & V). This
would include almost all direct ocean front properties.
Summary of recommended code

changes - Chapter 38
Adopts the new flood maps

Change all elevation references from NGVD 1929 to NAVD 1988 for
consistency with new flood maps (0.80 difference)
Since all V zones are now located east of the Building limit line, prohibit
construction in the V zone.
Minimum first floor elevation requirements of 16.5 NGVD and high
hazard foundation requirements previously required in the V zone, now
apply to all structures east of the dune setback line (within 75 of the
beach replenishment project line) regardless of the mapped flood
zone.
Minimum first floor elevation requirement of 3 above the base flood
elevation for structures in the foundation critical area (within 250 of the
beach replenishment line), remains the same but add for areas without
a mapped BFE (outside the 1% zone), a minimum first floor elevation 3
above highest adjacent grade.
Summary of recommended code

changes Chapter 38 continued
Areas outside the critical foundation area except downtown: Previous
requirement was 2 above the base flood elevation, proposed
requirement is 3 above the base flood elevation, or for areas without a
mapped BFE (outside the 1% flood zone) 2 above highest adjacent
grade.
Downtown Previous requirement was at or above the base flood
elevation. Proposed requirement is at the base flood elevation, or for
areas without a mapped BFE (outside the 1% flood zone) at or above
highest adjacent grade.
Boardwalk front properties must also be at or above the boardwalk
elevation.
Change the definition of substantial improvement so that cumulative
improvement costs begin 10 years from the date of the proposed
improvement permit application, instead of from initial construction. This
encourages redevelopment and matches the FEMA model ordinance.
V
Zone
V
zone
Elevation Comparisons
Location
Existing
Zone
Existing Min
Elev (code)
Proposed
Zone
Proposed Min Elev.

(with code changes)
City Hall
A/7
8.2
A/5
Convention Center
A/6
7.2
A/5
Gateway Grand
V/11
15.7
None
15.7
Channel Buoy (West)
A/6
7.2
A/5
S. Ocean Drive
A/6
7.2
None
Grnd+2 = +/- 7
14139 Sea Captain
A/6
7.2
None
Grnd +2 = +/- 8
Bonita Beach
A/9
10.2
None
Grnd +2= +/- 10.6
All elevations converted to

NAVD 1988 (NGVD-0.80=NAVD)
Summary of Recommended code

changes chapter 10
Update all elevations from NGVD 1929 to NAVD 1988
Update all building code references from Standard Southern

Building Code to International Building Code.
DIVISION 2. - CRITICAL AREAS
Sec. 10-221. - Title.

This division shall be known as and called the "Critical Area Foundation Ordinance."
(Code 1972, 54-1)

The following terms, wherever used herein, shall have the respective meanings assigned to them
unless a different meaning clearly appears from the context:
Beach area. That area east of the dune setback line, as said dune setback line is defined in section
30-81 of the Code of Ocean City, Maryland.
Critical area. For the purposes of this division, the following two areas:
(1) That area east of the easterly right-of-way line of Baltimore Avenue, lying north of North 26th
Street and south of North 33rd Street.
(2) That area lying east of a point 250 feet west of the beach replenishment project line, lying north
of 33rd Street and south of the division line between the State of Maryland and the State of
Delaware.
Municipal agency. The Department of Planning and Community Development, the office of the City
Engineer, the Planning Commission of Ocean City, and the Board of Appeals of Ocean City.
SSTD 10-93 means the Standard for Hurricane Resistant Residential Construction.
(Code 1972, 54-2)
Sec. 10-223. - Violations.

Any person who shall construct or erect any structure without complying with the terms, requirements
and provisions of this division shall be deemed to have committed a municipal infraction. In addition to the
penalty herein created, the building official is hereby authorized to issue a stop work order and cause the
same to be posted on any project, structure or building section erected in violation of this division. Any
person thereafter working on the subject property while said stop work order is in effect shall be deemed to
be in violation of this division and subject to the penalties imposed by this section. New and renewal national
flood insurance may be denied for any structure remaining in violation of this division or situated on property
in violation of this division.
(Code 1972, 54-7)
State law reference Penalties for ordinance violations, Ann. Code of Md. art. 23A, 3.
Sec. 10-224. - Occupancy permits.
The building official shall not issue any occupancy permit for any project, building or structure that has
been and remains in violation of this division.
(Code 1972, 54-8)
Sec. 10-225. - Effective date.

This division shall take effect as of the date of its passage and shall apply to all projects, structures or
buildings, the application for which is received after the date of its passage by any municipal agency. Any
Page 1
project being considered by any municipal agency as of the effective date of this division is exempted
herefrom.
(Code 1972, 54-9)
Sec. 10-226. - Variances.

(a) A property owner of property in the critical area, or his representative, may seek a variance from the
requirements of this division by application to the construction Board of Adjustments and Appeals of
Ocean City based upon the following conditions:
(1) That the variance is requested for an improvement to a preexisting structure which is minor in
nature and is an accessory use to said preexisting structure (i.e., decks, balconies, porches, etc.).
(2) Failure to grant the variance would result in exceptional hardship to the owner. Economic hardship
shall not be considered exceptional.
(3) Good and sufficient cause exists for granting the variance.
(b) Such a variance may be issued only if the following additional conditions are met:
(1) The applicant demonstrates good and sufficient cause.
(2) The board determines that failure to grant such a variance would result in exceptional
noneconomic hardship to the applicant.
(3) The board determines that the variance will not result in additional threats to public safety or
extraordinary public expense and will not create nuisances, cause fraud or victimization of the
public or conflict with existing local laws or ordinances.
(4) The board determines that the variance is the minimum necessary, considering the flood hazard,
to afford relief.
(5) The board advises the department of natural resources and the Federal Emergency Management
Agency of action taken on variance requests.
(c) The board shall, in deciding on requests for variances, be guided by the following provisions:
(1) The board shall not only consider the effect of such a variance on the structure on which it is to
be added but also on preexisting structures in the area.
(2) The board shall provide, in the event that any variance is provided, that the building permit issued
shall, in writing, indicate:
a.
That the proposed improvement in the preexisting structure is located in a flood zone critical
area.
b.
That flood insurance rates may increase as a result of said variance.
c.
That the proposed improvement to the preexisting building may not be enclosed in any
manner, other than by a railing, and may not be used for purposes of habitation.
(d) Exemptions. For the purposes of this section, the following improvements may be approved by the
building official and are not considered structures requiring board approval for variance requests to
the requirements of this division: any deck, porch, balcony, walkway, fire escape, stairs or fence which
is minor in nature and is an accessory use to a preexisting structure and for which the building permit
issued shall, in writing, indicate:
(1) That the proposed minor improvement may not exceed 1,000 square feet in area.
(2) That the proposed minor improvement to a preexisting building may not be enclosed in any
manner, other than by a railing, and may not be used for purposes of habitation.
(3) Structures built beneath existing buildings for the containment of sprinkler systems and equipment
to retrofit existing high-rise buildings, are hereby exempt from the minimum design requirements
Page 2
of section 10-228, 10-192(a) and 10-195(1) provided that the structures are designed with breaka-way walls, flood vented in accordance with chapter 38 and all equipment elevated to a minimum
of 3.0 feet above the base flood elevation.
(Code 1972, 54-10; Ord. No. 2008-23, 1-5-2009)
Sec. 10-227. - Municipally owned structures.

Municipally owned structures that are constructed on the oceanfront for the purpose of providing
backup support services for the Beach Patrol or for the protection of existing and future dunes or for the
purpose of aiding the health and comfort of swimmers, bathers or beachgoers on the public beaches of
Ocean City were declared exempt from the provisions of this division by Ordinance No. 1974-19, adopted
December 16, 1974.
Sec. 10-228. - Minimum design requirements.

In all critical areas, as such areas are in this division described, the following design criteria shall apply:
(1) Wind loads. The design wind loads as established by chapter 16 of the International Building
Code and SSTD 10-93 shall be met.
(2) Scour. For the purpose of scour design, all areas above plus 3.52.7 feet above mean sea level in
the Atlantic Ocean, Ocean City, Maryland, 1929 NAVD 1988 datum shall be considered as
eroded, whether or not so eroded. All areas between minus 1.5 2.3 feet mean sea level and plus
3.52.7 feet above mean sea level, though not considered eroded, shall be considered unstable
and of no support.
(3) Impact loads. Between elevations plus 3.52.7 feet and plus 10.59.7 feet above mean sea level,
all supporting structural members located along the north, east and south perimeters of any
structure shall be required to resist an intermittent horizontally applied force, in any westerly
direction, of 100,000 pounds per one-square foot area. This impact loading is in addition to all
other normal design loads.
(4) Exemptions. In that portion of the critical area lying west of a point 175 feet westerly of the beach
replenishment project line, as now defined in chapter 30, article II, division 2 of this Code, all
buildings under 36 feet in height above finished grade are exempted from the provisions of this
section, provided that said structures shall comply with all provisions of the Standard Building
Code, chapter 16,International Building Code and SSTD 10-93, and the general foundation
requirements, division 1 of this article, as the same is or may be amended from time to time.
(5) Buildings partially in critical area. In the event that a structure is constructed in such a manner
that a portion of such building is within a critical area, as in this division defined, and a portion of
such building is without such critical area, that portion of said structure within the critical area shall
meet the minimum design requirements of section 10-228 aforesaid, unless it qualifies as an
exemption under subsection (4) of this section.
(6) Manufactured homes, etc. Placement or construction of mobile homes, manufactured homes and
prefabricated modular units shall be prohibited in the critical area.
(Code 1972, 54-3; Ord. No. 2000-26(emer.), 8-21-2000; Ord. No. 2001-13, 7-16-2001)
Sec. 10-229. - Plan and certification requirements.

All applicants for building permits for locations within the critical areas shall submit plans to the building
official. These plans shall show, as clearly as is possible, all wind load, scour and impact load design factors
sufficient to meet or exceed the requirements of section 10-228 of this division. In addition, if the proposed
structure is a multifamily, multiunit or multi-business structure, it shall, in addition to the above, bear a
certification by an architect or engineer, properly licensed and certified by the State of Maryland, that the
requirements of section 10-228 of this division have been met or exceeded. The building official may, at his
discretion, require any applicant for a permit to furnish him with additional data.
Page 3
Commented [TM1]: Updated to NAVD 1988 for

consistency
Commented [TM2]: Update to current code
(Code 1972, 54-4)
Sec. 10-230. - Construction standards.

Any structure erected within the critical area shall conform to the plans approved by the building official
pursuant to this division. In addition, the following requirements shall also apply:
(1) Pilings. Untreated wood piles may only be used when cut off at a level of one foot below the
groundwater table. The groundwater table of any respective site shall be determined by actual
groundwater level measurements at the proposed site. Said measurements shall be taken at sixhour intervals over a continuous period of two weeks in a six-inch open pipe so placed that the
water level within it may rise and fall with the tidal fluctuation. These groundwater level
measurements shall be graphically presented to the building official at the time of the application
for a building permit.
(2) Concrete cover. All exposed structural concrete below an elevation of plus 19.518.7 feet above
mean sea level shall have a two-inch cover of dense structural concrete (150 pounds per cubic
foot) over the reinforcing steel.
(3) Bulkheads. Bulkheads are allowed at the discretion of the building official, provided that the
bulkhead completely surrounds the structure on the north, east and south sides of the foundation.
Such a bulkhead must and shall consist of steel-reinforced concrete walls from elevation plus
15.514.7 feet above mean sea level to plus 5.54.7 feet or lower above mean sea level, securely
fastened to interlocking steel sheet piling to an elevation minus 8.59.3 feet below mean sea level,
except at exposed exterior corners, where said piling shall extend to an elevation minus 13.514.3
feet below mean sea level for a distance of 20 linear feet each way from the corner. Any bulkhead
accepted by the building official shall meet or surpass the scour and impact load requirements of
section 10-228 of this division, and shall meet or surpass the concrete cover requirements of
section 10-230 of this division. In the event the building official approves such a bulkhead, the
building official may, in his discretion, permit in respect to the foundation requirement a variance
from the scour and impact load requirements of section 10-228 of this division. In any and all
events, the approval of a bulkhead meeting the minimum requirements of this section of this
division is at the building official's sole discretion. In the event such a bulkhead is approved, the
building official shall keep available at his office the plans in respect to said bulkhead, and shall,
by letter, inform the department of natural resources of the State of Maryland and the Federal
Emergency Management Agency that such a foundation has been approved and that the plans
for said bulkhead may be inspected at the office of the building official.
(Code 1972, 54-5)
Sec. 10-231. - Beach area.

In the event that the building official determines that a structure, or part of one, is to be constructed
east of the existing dune setback line, he may impose additional structural requirements in excess of those
in this division created due to added exposure to the elements. The exception shall be mobile homes,
manufactured homes and prefabricated modular units, which shall be prohibited in the critical area.
(Code 1972, 54-6)
Secs. 10-23210-250. - Reserved.
Page 4
ARTICLE I. - IN GENERAL
Secs. 38-138-30. - Reserved.

ARTICLE II. - FLOOD DAMAGE PREVENTION
DIVISION 1. - GENERALLY
Sec. 38-31. - Definitions and rules of construction.

(a) For the purposes of this article, the following definitions shall apply in the interpretation, enforcement
and intent of this article. When not inconsistent with the context, words used in the present tense
include the future, and words in the singular number include the plural. The word "shall" is always
mandatory and not merely directory.
(b) As used in this article, the following terms shall have the meanings indicated:
Accessory structure. A subordinate building on a lot, the use of which is customarily incidental to the
main or principal building (e.g., sheds, detached garages).
Base flood elevation. The elevation of the flood having a one percent chance of being equaled or
exceeded in any given year (the level of the 100-year flood).
Basement. Any area of the building having its floor subgrade (below ground level) on all sides.
Breakaway wall. A wall that is not part of the structural support of the building and is intended, through
its design and construction, to collapse under specific lateral loading forces without causing damage to the
elevated portion of the building or supporting foundation system.
Building limit line. The oceanfront construction limit line created and described in chapter 106, article
IV of the Code of the Town of Ocean City.
Building permit. The permit as required by the Code of Ocean City, Maryland.
Coastal high-hazard area. The portion of the coastal floodplain having special flood hazards, that is
subject to velocity waters, including hurricane wave wash and tidal waves, and which is designated as a V
zone on the applicable flood maps.
Critical area. For the purposes of this article, the following two areas:
(1) That area east of the easterly right-of-way line of Baltimore Avenue lying north of 26th Street and
south of 33rd Street.
(2) That area lying east of a point 250 feet west of the beach replenishment project line, lying north
of 33rd Street and south of the division line between the State of Maryland and the State of
Delaware.
Department. The Department of Planning and Community Development of Ocean City, Maryland.
Dune setback line. A line located 75 feet westward of the beach replenishment project line. The
purpose of the "dune setback line" is to protect the integrity of any naturally occurring or manmade dunes.
Elevations. Wherever used, plus (+) or minus (-) shall refer to the mean level (NGVDNAVD 1988) of
the Atlantic Ocean datum, United States Coast and Geodetic Survey of Atlantic Ocean, Ocean City,
Maryland.
Page 1
Commented [TM1]: Update datum
Flood or flooding. A general and temporary condition of partial or complete inundation of normally dry
land areas from abnormally high tidal water or rising coastal waters resulting from severe storms, hurricanes
or tidal waves.
Flood maps or flood insurance rate maps. The maps of Ocean City, Maryland, dated March 4, 1986July
16, 2015, which were produced as part of the flood insurance study prepared by the Federal Emergency
Management Agency, and any subsequent revisions thereof as approved by the Federal Emergency
Management Agency.
Floodproof or floodproofing. Any combination of structural and nonstructural additions, changes or
adjustments to structures which reduce or eliminate flood damage to real estate or improved real property,
water and sanitary facilities, structures and their contents.
Grade, highest adjacent. The highest natural elevation of the ground surface prior to construction next
to the proposed walls of a structure.
Grade, post-construction. The final elevations of the ground surface next to the walls of a structure
after construction.
Habitable space. Any area usable for living purposes, which includes sleeping, eating or cooking, or a
combination thereof.
Level of 100-year flood. The highest level of flooding that, on the average, is likely to occur once every
100 years (or has a one percent chance of occurring each year), as shown on the flood insurance rate map
(the base flood elevation).
Lowest floor. The lowest floor of the lowest enclosed area, including basements. An unfinished or
flood-resistant enclosure, usable solely for parking of vehicles, building access or storage in an area other
than a basement area, is not considered a building's "lowest floor," provided that such enclosure is not built
so as to render the structure in violation of the applicable nonelevation design requirements of this article.
Manufactured home. A structure, transportable in one or more sections, which is built on a permanent
chassis and is designed for use with or without a permanent foundation when connected to the required
utilities. The term "manufactured home" does not include a "recreational vehicle" as defined herein.
Manufactured home park or subdivision. A parcel (or contiguous parcels) of land divided into two or
more manufactured home lots for rent or sale.
New construction/structure. For floodplain management purposes, new construction is construction
which commences on or after the effective date of Ordinance No. 1991-10, the floodplain management
regulations adopted by Ocean City, and includes all subsequent additions and improvements.
100-year storm. The level of flooding, water loads, wind speeds, duration, direction and forces which,
when acting simultaneously, result in severe beach erosion and overwash and have a one percent chance
of occurring each year.
Recreational vehicle. A vehicle which is:
(1) Built on a single chassis;
(2) Four hundred square feet or less when measured at the largest horizontal projections;
(3) Designed to be self-propelled or permanently towable by a light duty truck; and
(4) Designed primarily not for use as a permanent dwelling but as temporary living quarters for
recreational, camping, travel or seasonal use.
Substantial damage. Damage of any origin sustained by a structure whereby the cost of restoring the
structure to its before damaged condition would equal or exceed 50 percent of the market value of the
structure before the damage occurred.
Substantial improvement. Any reconstruction, rehabilitation, addition or other improvement of a
structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the
start of construction of the improvement. This term includes structures which have incurred substantial
Page 2
Commented [TM2]: Adopts new maps
damage, regardless of the actual repair work performed. The term does not, however, include either: any
project for improvement of a structure to correct existing violations of state or local health, sanitary or safety
code specifications which have been identified by the local code enforcement official and which are the
minimum necessary to assure safe living conditions, or any alteration of a historic structure, provided that
the alteration will not preclude the structure's continued designation as a historic structure. "Substantial
improvement" is commenced when the first alteration of any structural part of the building is begunshall be
cumulative and ; costs of incremental improvements to a building or structure shall accumulate with respect
to the 50 percent criterion which defines substantial improvement. Improvements shall date back ten years
from the date of each application for building permit.
(Code 1972, 52A-2; Ord. No. 1997-15, 8-18-1997; Ord. No. 2008-24, 1-5-2009)

(a) Any person, partnership, joint venture, corporation or other entity violating this article shall, upon
conviction thereof, be deemed guilty of a misdemeanor and shall be subject to a fine of not more than
$500.00. Each day that this article is violated shall be deemed a separate offense.
(b) In addition to the fines and penalties herein described, the Mayor and City Council of Ocean City may
avail itself of any and all civil and equitable remedies for the purpose of stopping continuing violation
of this article.
(Code 1972, 52A-14)
State law reference Penalties for ordinance violations, Ann. Code of Md. art. 23A, 3.
Sec. 38-33. - Purpose and intent; adoption of maps.
(a) The purpose of this article is to provide for adequate minimum standards and procedures for the
construction of new residential and nonresidential structures, including manufactured homes, and for
such structures that are substantially improved so that such structures can be eligible for insurance
under the National Flood Insurance Program and so that the construction of such structures will be in
conformity with recognized construction techniques designed to offer flood protection. Any change in
the delineation of floodplain districts shall be subject to the review and approval of the Federal
Emergency Management Agency (in this article referred to as "FEMA").
(b) The flood insurance rate maps, including the zone designations on said maps and all explanatory
material noted thereon, are hereby incorporated into this article by reference in their entirety. Said
maps shall be kept in the custody of the Department of Planning and Community Development, which
is the department delegated the administrative responsibility by the Mayor and City Council of Ocean
City, Maryland, for the approval and issuance of building permits. Said maps shall be referred to for a
determination of the floodprone and specified hazard areas and the 100-year base flood elevation line
for a calculation of construction requirements for any structure within the incorporated areas of Ocean
City, Maryland, under the provisions of this article.
(Code 1972, 52A-1)
Sec. 38-34. - Conflicting regulations.

In the event that any provision of this article, other than the provisions of section 38-54, conflicts with
any provision of any other ordinance or if any two provisions of this article conflict with each other, that
provision or ordinance requiring the greatest elevation or most substantial building requirement shall
control. The intention of this section is to give this article, or section therein, precedence over any other
ordinance whose provisions are less severe. However, provisions of all other codes, ordinances, resolutions
and regulations shall be applicable insofar as they are consistent with the provisions of this article and
Ocean City's need to minimize the hazardous conditions and property damage resulting from flood
conditions.
Page 3
Commented [TM3]: Changes to match model flood

ordinance
(Code 1972, 52A-13)

DIVISION 2. - ADMINISTRATION AND ENFORCEMENT
FOOTNOTE(S):
--- (2) --Cross reference Administration, ch. 2. (Back)
Sec. 38-51. - Nonconforming uses in coastal high-hazard areas (V zones).

Within those areas designated as V zones by the flood maps, all nonconforming uses on land below
the 100-year flood level shall only be expanded or substantially improved if such expansions or
improvements comply with the provisions of this article.
(Code 1972, 52A-8)
Sec. 38-52. - Review of building permit applications.

Within those incorporated areas of Ocean City, Maryland, designated as special flood hazard areas
by the flood maps, all building permit applications for new construction or substantial improvement of
residential and nonresidential structures, including manufactured homes, shall be reviewed to assure that
all necessary permits have been obtained from agencies as required by federal, state and local law. In
addition, applications shall be reviewed to assure that the proposed construction shall:
(1) Be protected against flood damage.
(2) Be designed or modified and anchored to prevent flotation, collapse or lateral movement of the
structure.
(3) Use construction materials and utility equipment that are resistant to flood damage.
(4) Use construction methods and practices that will minimize flood damage.
(5) Be constructed with electrical, heating, ventilation, plumbing and air conditioning equipment and
other service facilities that are designed and/or located so as to prevent water from entering or
accumulating within the components during conditions of flooding. This requirement shall be
mandatory for all replacement of any service facilities. All new and replaced service facilities or
equipment shall be elevated in accordance with section 38-71 titled minimum elevation
requirements, with the exception that the bottom of all duct work shall be a minimum of one foot
above FEMA Flood Elevation Requirement.
(Code 1972, 52A-11; Ord. No. 2008-24, 1-5-2009)
Sec. 38-53. - Certifications of elevation and floodproofing.

(a) Within those incorporated areas of Ocean City, Maryland, designated as A1A30, AO or V zones by
the flood maps, all building permit applications for the construction or substantial improvement of
residential and nonresidential structures, including manufactured homes, shall have indicated thereon
the lowest floor elevation or floodproofing elevation in reference to mean sea level (NGVDNAVD).
Such elevation shall also be shown on the building permit and must be approved as meeting the
requirements of this article by the department prior to the issuance of a building permit. Before a
certificate of occupancy is issued for the structure, the department shall inspect the premises to assure
that the requirements of this article have been met. Before a certificate of occupancy is issued for the
Page 4
Commented [TM4]: Although all of ocean city is no

longer in these flood zones, we still want to keep all building
to certain minimum elevations
structure, the owner shall submit to the department an elevation certificate, prepared by a registered
surveyor, to certify that the requirements of this article have been met.
(b) Before a certificate of occupancy is issued for a nonresidential structure that has been floodproofed in
accordance with section 38-73(a), a certification of floodproofing completed by a registered engineer
or architect must be submitted to the department.
(Code 1972, 52A-12)
Sec. 38-54. - Variances generally.

(a) An owner of property in zones A1A30, any AO zone or zones V1V30, or his representative, may
seek a variance from the requirements of this article by application to the Board of Adjustments and
Appeals of Ocean City. In no instance may a variance to minimum elevation requirement be granted
which would permit a lowest floor (including basement) to be below the base flood elevation.
(b) In deciding on requests for variances, the Board of Adjustments and Appeals shall be guided by the
following provisions:
(1) The effect of the variance on preexisting structures in the area.
(2) That the applicant demonstrates good and sufficient cause.
(3) That failure to grant the variance would result in exceptional noneconomic hardship to the
applicant.
(4) That the variance will not result in increased flood heights, additional threats to public safety or
extraordinary public expense and will not create nuisances or cause fraud on or victimization of
the public or conflict with existing local laws or ordinances.
(5) That the variance is the minimum necessary, considering the flood hazard, to afford relief.
(c) In the event a variance is granted, the board shall provide that the building permit issued shall, in
writing, indicate:
(1) That the proposed structure or proposed addition or proposed improvement is located in a
floodprone area.
(2) That flood insurance rates will increase commensurate with the distance between the lowest floor
or floodproofed level elevation and the base flood elevation.
(3) That the conditions of the variance shall be particularized in an agreement by and between the
property owner and the Mayor and City Council of Ocean City. Said agreement shall be recorded
in the land records of Worcester County and shall be deemed to be a restriction which runs with
the land.
(d) The department shall maintain a record of all variances granted by the board, including the justification
for their issuance. A record of all variances granted shall be provided to the federal insurance
administrator annually.
(Code 1972, 52A-6)
Sec. 38-55. - Variances for accessory structures.

(a) Within all areas except those located in a V Zonezones A1A30 or any AO zone, a newly proposed
accessory structure is hereby granted a variance to allow its lowest floor elevation to be below that of
the base flood elevation if all of the following stipulations are met:
(1) A statement shall be placed on the building plans which shall read as follows: "No conversion of
this area to habitable space is to occur unless the lowest floor is elevated to a point above the
base flood elevation. At this site the base flood elevation is ____________."
(2) The floor elevation of the accessory structure shall not qualify as a basement and must be
constructed on grade.
Page 5
Commented [TM5]: V zones are now all outside of the

building limit line
(3) The accessory structure shall be constructed and placed on the building site so as to offer the
minimum resistance to the flow of floodwaters.
(4) The accessory structure shall be firmly anchored to prevent flotation which may result in damage
to other structures.
(5) The accessory structure shall be designed to have low flood damage potential.
(6) The service facilities, such as electrical and heating equipment, shall be elevated one foot above
applicable base flood elevation or be floodproofed.
(7) The accessory structure shall be comprised of no more than 600 square feet and no more than
one story, which will allow construction of a standard two-car garage.
(8) The accessory structures shall be designed to meet or exceed the following minimum criteria:
a.
A minimum of two openings having a total net area of not less than one square inch for every
square foot of enclosed area subject to flooding shall be provided.
b.
The bottom of all openings shall be no higher than one foot above grade.
c.
Openings may be equipped with screens, louvers, valves or other coverings or devices,
provided that they permit the automatic entry and exit of floodwaters.
(b) The applicant shall be made aware that, if the accessory structure is built below the base flood
elevation, the aforesaid structure may be susceptible to higher insurance premium rates for the
structure and its contents.
(c) For accessory structures greater than 300 square feet and up to 600 square feet, the conditions of the
variance shall be subject to an agreement as set forth in section 38-54(c)(3) hereof.
(Code 1972, 52A-7)

DIVISION 3. - FLOOD HAZARD REDUCTION
Sec. 38-71. - Minimum elevation requirements.

(a) Notwithstanding the requirements of any other section of the Code or any lesser requirements of the
Federal Emergency Management Agency, the elevation of the lowest floor, including basement, of any
residential building, structure or manufactured home, or any elevated nonresidential structure, within
Ocean City, Maryland, shall be as follows:
(1) In any V zone, a minimum of 16 feet above mean sea level (NGVD).Structures prohibited
Commented [TM6]: V zones are now all east of the

building limit line
(2) East of the dune setback line, a minimum of 15.7 feet above mean sea level (NAVD 1988)
Commented [TM7]: This min elevation used to apply to

structures in the V zone, it now applies to structures within
75 of the beach replenishment line
(32) In the critical area, as defined in this article and in chapter 10, article IV, division 2 (foundation
requirements), outside of the V zoneand west of the dune setback line, a minimum of three feet
above the base flood elevation as shown on the flood insurance rate map or if located in an x
zone or other area without a mapped base flood elevation a minimum of 3 above the highest
adjacent grade.
(3) In an area east of the easterly right-of-way of Coastal Highway or Philadelphia Avenue and not
in the critical area or a V zone, a minimum of two three feet above the base flood elevation or if
located in an x zone or other area without a mapped base flood elevation, a minimum of two feet
above highest adjacent grade.
Page 6
Commented [TM8]: Maintains 3 free board for

structures within 250 of the beach project line in flood
zone. If not in a flood zone, no mapped elevation so
requires 3 above ground.
Commented [TM9]: More than 250 from ocean, 3
freeboard if in a flood zone, 2 above ground if not.
(4) In the area west of the westerly right-of-way of Coastal Highway or Philadelphia Avenue,
a minimum of three feet above the base flood elevation or if located in an x zone or other area without
a mapped base flood elevation, a minimum of two feet above highest adjacent grade.
a minimum of two feet above the base flood elevation.
(5) In all blocks south of Third Street, except the westerly 150 feet of block 29 and all of block 41 of
the Sinepuxent Beach Company plat, the elevation shall be at or above the base flood elevation
as established by the flood insurance rate map, or if no established base flood elevation, at or
above highest adjacent grade. Property owners elevating buildings only to the base flood
elevation shall be advised of the increased risk of flood damage and potential higher flood
insurance costs.
Commented [TM10]: Maintains no freeboard

requirement downtown
(6) In the area fronting Atlantic Ave from the inlet to 27 Street, in no case shall the lowest floor be
below the elevation of the top of the boardwalk adjacent to the property.
(b) In all cases, the elevations of the post-construction grades of any site shall be such that surface water
drainage shall be to the existing or proposed streets or alleys.
(Code 1972, 52A-3; Ord. No. 1995-17, 11-6-1995)
Sec. 38-72. - Requirements for residential construction.

(a) All new construction and substantial improvements of residential structures within zones A1A30
shall have the lowest floor (including basement) elevated according to the requirements of section 3871 of this article.
(b) All new construction and substantial improvements of residential structures within an AO zone shall
have the lowest floor (including basement) elevated to the highest of the following:
(1) The requirements of section 38-71 of this article;
(2) One footThree feet above the highest post-construction grade; or
Commented [TM11]: This is an increase over current

ordinance, AO zone is now ocean front 143-146th so
matches critical area min elevation requirements above
(3) One footThree feet above the highest adjacent grade.

(c) For all new construction and substantial improvements within zones A1A30 and any AO zone, fully
enclosed areas below the lowest floor used solely for parking of vehicles, building access or storage
in an area other than a basement, that are subject to flooding, shall be designed to automatically
equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters.
Designs for meeting this requirement must either be certified by a registered professional engineer or
architect or meet or exceed the following minimum criteria:
(1) A minimum of two openings having a total net area of not less than one square inch for every
(2) The bottom of all openings shall be no higher than one foot above grade.
(3) Openings may be equipped with screens, louvers, valves or other coverings or devices, provided
that they permit the automatic entry and exit of floodwaters.
(d) Requirements for residential construction in V zones are set forth in section 38-74 of this article.
(Code 1972, 52A-4)
Sec. 38-73. - Requirements for nonresidential construction.

(a) All new construction and substantial improvements of nonresidential structures within zones A1A30
shall have the lowest floor, including basement, elevated according to the requirements of section 3871 or, together with attendant utility and sanitary facilities, shall be floodproofed so that below minimum
elevation requirements specified in section 38-71, the structure is watertight with walls substantially
impermeable to the passage of water and with structural components having the capability of resisting,
hydrostatic and hydrodynamic loads and effects of buoyancy.
Page 7
Commented [TM12]: This keeps this requirement

applicable to entire city
(1) When the floodproofing option is selected, a registered professional engineer or architect shall
develop and/or review structural design specifications and plans for the construction and shall
certify that the design and methods of construction are in accordance with accepted standards of
practice for meeting these requirements.
(2) A floodproofing design which requires human intervention may only be used for additions,
including substantial improvements, to existing nonresidential structures. Human intervention
may not be part of a floodproofing design for new structures as defined in section 38-31
(b) Elevation.
(1) All new construction and substantial improvements of nonresidential structures within any AO
zone shall have the lowest floor (including basement) elevated to the highest of the following:
a.
The requirements of section 38-71 of this article;
b.
Three feet One foot above the highest post-construction grade; or
c.
Three feet One foot above the highest adjacent grade.
(2) In lieu of elevation, a nonresidential structure, together with attendant utility and sanitary facilities,
may be completely floodproofed to the appropriate elevation level as determined above to meet
the floodproofing standard specified in section 38-73(a).
(c) For all new construction and substantial improvements of elevated nonresidential structures in zones
A1A30 and any AO zones, fully enclosed areas below the lowest floor used solely for parking of
vehicles, building access or storage in an area other than a basement that are subject to flooding shall
be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the
entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a
registered professional engineer or architect or meet or exceed the following minimum criteria:
(1) A minimum of two openings having a total net area of not less than one square inch for every
(2) The bottom of all openings shall be no higher than one foot above grade.
(3) Openings may be equipped with screens, louvers, valves or other coverings or devices, provided
that they permit the automatic entry and exit of floodwaters.
(d) Requirements for nonresidential construction in V zones are set forth in section 38-74 of this article.
(Code 1972, 52A-5; Ord. No. 1997-15, 8-18-1997; Ord. No. 2000-25, 8-21-2000)
Sec. 38-74. - Development of coastal high-hazard areas (V zones) or east of the dune setback line.
(a) Within those areas designated as V zones by the flood maps or east of the dune setback line as
defined herein, land below the level of the 100-year flood shall only be developed if the new
construction or substantial improvement complies with all of the following:
(1) The structure is located landward of the reach of the mean high tide.
(2) The structure is elevated on pilings and columns so that the bottom of the lowest horizontal
structural member of the lowest floor (excluding the pilings or columns) is elevated in accordance
with section 38-71; and the pile or column foundation and structure attached thereto is anchored
to resist flotation, collapse and lateral movement due to the effects of wind and water loads acting
simultaneously on all building components. Water loading values used shall be those associated
with the 100-year flood. Wind loading values used shall be those required by the Standard
Building Code. A registered professional engineer or architect shall develop or review the
structural design specifications and plans for the construction and shall certify that the design and
methods of construction to be used are in accordance with accepted standards of practice for
meeting the provisions contained in this subsection.
Page 8
Commented [TM13]: Maintains stricter requirements for

direct ocean front properties.
(3) The space below the lowest floor is either free of obstruction or constructed with nonsupporting
breakaway walls, open wood latticework or insect screening intended to collapse under wind and
water loads without causing collapse, displacement or other structural damage to the elevated
portion of the building or supporting foundation system. For the purposes of this section, a
breakaway wall shall have a design safe loading resistance of not less than ten and no more than
20 pounds per square foot. Use of breakaway walls which exceed a design safe loading
resistance of 20 pounds per square foot (either by design or when so required by local or state
codes) may be permitted only if a registered professional engineer or architect certifies that the
designs proposed meet the following conditions:
a.
Breakaway wall collapse shall result from a water load less than that which would occur
during the base flood; and
b.
The elevated portion of the building and supporting foundation system shall not be subject
to collapse, displacement or other structural damage due to the effects of wind and water
loads acting simultaneously on all building components (structural and nonstructural). Water
loading values used shall be those associated with the 100-year flood. Wind loading values
used shall be those required by the Standard Building Code.
c.
Such enclosed space shall be usable solely for parking of vehicles, building access or
storage.
(b) In V zones or east of the dune setback line, fill may not be used for structural support of buildings.
(c) In V zones or east of the dune setback line where fill material is permitted for landscaping or parking
lot foundations, such fill material shall be similar in characteristics and composition to the soil existing
on site.
(d) No manufactured homes or recreational vehicles shall be placed in V zones or within the critical
foundation area.
(e) Permanent manmade alterations of sand dunes which would increase potential flood damage are
prohibited.
(f)
Commented [TM14]: Maintains prohibition on

manufactured housing in the ocean block.
Where temporary dune alterations are permitted to allow foundation construction, the flood mitigation
properties of such dunes shall be fully restored and maintained.
(Code 1972, 52A-9)
Sec. 38-75. - Manufactured homes and recreational vehicles.

(a) Manufactured homes/buildings and recreational vehicles are prohibited from any V zone or within the
critical foundation area.
(b) Recreational vehicles placed in any location within Ocean City shall either be on the site for fewer than
180 consecutive days and be fully licensed and ready for highway use or meet the permit requirements
of section 38-52 and the elevation and anchoring requirements for manufactured homes in section 3875(c). A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached
to the site only by quick-disconnect type utilities and security devices and has no permanently attached
additions.
(c) Manufactured homes that are placed or substantially improved in any location within Ocean City shall
be elevated on a permanent foundation such that the lowest floor of the manufactured home is
elevated to or above the minimum requirements of section 38-71 and shall be securely anchored to
an adequately anchored foundation system in accordance with the minimum standards of appendix H
of the Standard Building Code, 1988 edition. The Town of Ocean City Building Department
(Code 1972, 52A-10)
Page 9
Commented [TM15]: No longer use the SBC

5. NEW BUSINESS
G. Discussion of Mid-Beach Parcel Franchise Bid Results
presented by City Clerk
TOWN OF
TO:
THRU:
FROM:
RE:
DATE:
Agenda Item #
5G
Council Meeting
February 10, 2015

Kelly L. Allmond, CMC, City Clerk
2014 Beach Equipment Auction (Mid Beach & Defaulted Parcels)
February 4, 2015
ISSUE(S):
2014 Beach Equipment Auction Results for Mid Beach and Defaulted
parcels.
SUMMARY:
On December 3, 2014, the Town conducted a live auction for the

Mid Beach and Defaulted parcels.
Attached please find a three-page list of all seventy beach parcels.
Page 1/3 shows the South End parcels. Page 2/3 shows the Mid
Beach parcels; and page 3/3 shows the North End parcels. The
parcels for consideration are the Mid Beach parcels (page 2/3) and
the Defaulted parcels which are marked in red font.
Pursuant to the Beach Equipment Franchise Code, the Mayor and
City Council have the right to reject bids for any reason it deems
appropriate and may rebid upon such terms, conditions and manner
it deems appropriate.
FISCAL IMPACT:
$57,070.00 reduction in revenue.
RECOMMENDATION:
Accept Mid Beach parcel bids except as follows:
51st, 52nd, 53rd Streets

63rd, 64th, 65th Streets
69th, 70th, 71st Streets
79th, 80th, 81st Streets
82nd, 83rd, 84th Streets
Accept Defaulted parcel bids except as follows:
Caroline Street
6th Street
11th Street
20th Street
Rebid rejected bids via sealed bid process and establish a $500
minimum bid amount.
ALTERNATIVES:
Accept all bids and establish a minimum bid amount for all future
auctions.
RESPONSIBLE STAFF:
Kelly L. Allmond, CMC
COORDINATED WITH:
Not applicable
ATTACHMENT(S):
1) 2014 Bid Results

2) Town Code, Chapter 39, Article II, entitled Franchises, Beach
Equipment
P.O. BOX 158 OCEAN CITY, MARYLAND 21843-0158
City Hall (410) 289-8221 FAX (410) 289-8703
PARCELS
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
9-YEAR
AVERAGE
2015 BID
Inlet
$34,210.00
South Division Street
$35,900.00
Worcester Street
$16,000.00
Somerset Street
$17,200.00
Talbot Street
Caroline Street
TERM 1
$522.50
$522.50
$3,300.00
$600.00
$600.00
$12,700.00
TERM 2
$660.00
$660.00
$660.00
$660.00
$2,900.00
$1,108.50
$100.00
North Division Street
$26,700.00
1st Street
$15,510.00
2nd Street
$21,700.00
3rd Street
$25,410.00
4th Street
$16,800.00
5th Street
6th Street
$7,040.00
$2,400.00
$2,400.00
$2,400.00
$2,400.00
$2,640.00
$2,640.00
$2,640.00
$9,000.00
$4,060.00
10th Street
AUCTION HELD DECEMBER 2013
11th Street
$1,500.00
$5,600.00
$6,500.00
$6,500.00
$6,500.00
$6,500.00
$6,500.00
$7,150.00
$7,150.00
$7,150.00 $11,000.00
$7,055.00
$5,900.00
$8,200.00
$3,300.00
$3,300.00
$1,300.00
$900.00
$900.00
$900.00
$990.00
$990.00
$990.00
$2,900.00
$1,647.00
$100.00
$16,500.00
13th Street
$15,840.00
14th Street
$19,000.00
15th Street
$18,700.00
16th Street
$12,200.00
17th Street
$39,000.00
18th Street
$10,700.00
19th Street
-93.93%
$14,300.00
$3,600.00
$3,600.00
$2,500.00
$2,500.00
$2,500.00
$2,500.00
$2,750.00
$2,750.00
$2,750.00
$3,500.00
$2,895.00
$150.00
21st Street
$14,500.00
22nd Street
$18,300.00
23rd Street
24th Street
-16.37%
$15,730.00
12th Street
20th Street
-63.05%
$14,520.00
9th Street
SOUTHEND PARCELS
-90.98%
$15,900.00
$7,040.00
7th Street
8th Street
DEVIATION
FROM
AVERAGE
-94.82%
$7,700.00
$6,160.00
$6,160.00
$6,160.00
$5,900.00
$5,900.00
$5,900.00
$6,940.00
$6,490.00
$6,490.00
$7,500.00
$6,360.00
$6,250.00
25th Street
$8,000.00
26th Street
$9,700.00
27th Street
$8,500.00
RED = DEFAULTED PARCELS

* CONTRACT RENEWED FOR SECOND TERM AT A RATE OF 10% HIGHER THAN THE ORIGINAL BID AMOUNT
-1.73%
PARCELS
2005
2006
2007
2008
2009
2010
2011
2012
SOUTHEND PARCELS
9-YEAR
AVERAGE
2015 BID
DEVIATION
FROM
AVERAGE
$47,000.00 $42,000.00 $42,000.00 $42,000.00 $40,000.00 $40,000.00 $40,000.00 $43,800.00 $43,800.00 $43,800.00
$42,440.00
$40,000.00
-5.75%
31st,32nd,33rd Streets
$21,000.00 $21,500.00 $21,500.00 $21,500.00 $23,650.00 $23,650.00 $23,650.00 $65,100.00 $65,100.00 $65,100.00
$35,175.00
$48,000.00
36.46%
34th,35th,36th Streets
$3,600.00
$3,600.00
$3,600.00
$3,690.00*
RENEWED
38th,39th,40th,41st Streets
$10,000.00 $10,000.00
$10,000.00
$11,000,00*
RENEWED
$500.00
$500.00
$500.00
$550.00*
RENEWED
45th, 46th & 47th Streets
$5,900.00
$5,900.00
$5,900.00
$6,490.00*
RENEWED
$23,000.00 $23,000.00
$23,000.00
$25,300.00*
RENEWED
$923.00
$25.00
-97.29%
$10,800.00 $10,800.00
$10,800.00
$11,880.00*
RENEWED
$7,400.00 $10,500.00 $10,500.00 $10,500.00
$7,860.00
$11,600.00
47.58%
51st,52nd,53rd Streets
2014
42nd,43rd,44th Streets
MID BEACH PARCELS
2013
$500.00
$1,100.00
$1,100.00
$1,100.00
$1,210.00
$1,210.00
$1,210.00
$600.00
$600.00
$600.00
$5,700.00
$6,400.00
$6,400.00
$6,400.00
$7,400.00
$7,400.00
60th,61st,62nd Streets
$9,700.00
$800.00
$800.00
$800.00
$880.00
$880.00
$880.00
$6,400.00
$6,400.00
$6,400.00
$3,394.00
$8,600.00
153.39%
63rd,64th,65th Streets
$1,500.00
$500.00
$500.00
$500.00
$550.00
$550.00
$550.00
$450.00
$450.00
$450.00
$600.00
$50.00
-91.67%
$22,840.00
$23,900.00
4.64%
69th,70th,71st Streets
$25,000.00 $18,000.00 $18,000.00 $18,000.00 $19,800.00 $19,800.00 $19,800.00 $30,000.00 $30,000.00 $30,000.00
$1,400.00
$300.00
$300.00
$300.00
$850.00
$850.00
$850.00
$935.00
$935.00
$935.00
$765.50
$50.00
-93.47%
$100.00
$100.00
$100.00
$110.00*
RENEWED
75th,76th,77th, 78th Streets
$150.00
$150.00
$150.00
$165.00*
RENEWED
79th,80th,81st Streets
$1,200.00
$1,320.00
$1,320.00
$1,320.00
$765.00
$765.00
$765.00
$841.50
$841.50
$841.50
$997.95
$100.00
-89.98%
$4,900.00
$5,390.00
$5,390.00
$5,390.00
$3,335.00
$3,335.00
$3,355.00
$3,668.50
$3,668.50
$3,668.50
$4,210.05
$300.00
-92.87%

PARCELS
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
9-YEAR
AVERAGE
85th,86th and 87th Streets
$4,000.00
92nd end (north),93rd Streets and 9400

Condo
$6,400.00
Flying Cloud, Pyramid and Plaza Condos
$18,920.00
Century I, English Tower and Marigot Beach

Condos
$8,200.00
Atlantis,Quay and Golden Sands Condos
$20,700.00
$6,300.00
$6,300.00
$6,390.00
$6,390.00
$6,930.00
$7,623.00
$7,623.00
$7,623.00
$11,800.00 $11,800.00
$7,877.90
$7,200.00
High Point South, High Point North and

Seawatch Condos
$9,020.00
Fountainhead,Carousel and 118th Street
$26,000.00
AUCTION WILL BE HELD DECEMBER 2015 119th,120th and 121st Streets
SOUTHEND PARCELS
DEVIATION
FROM
AVERAGE
$700.00
88th,89th,90th Streets and 91st Street end
Capri,Irene and Rainbow Condos
NORTH END PARCELS
2015 BID
$6,700.00
122nd,123rd and 124th Streets
$2,640.00
$4,100.00
$3,500.00
131st,132nd and 133rd Streets
$2,200.00
$3,500.00
$4,500.00
140th,141st,142nd Streets
$5,100.00
143rd,144th,145th and 146th Streets to

MD/DE Line
$7,500.00

-8.61%
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Ocean City, Maryland, Code of Ordinances >> PART II - CODE OF ORDINANCES >> Chapter 39 FRANCHISES >> ARTICLE II. - BEACH EQUIPMENT RENTAL >>
ARTICLE II. - BEACH EQUIPMENT RENTAL

Sec. 39-21. - Title.
Sec. 39-23. - Franchise system.
Sec. 39-24. - Mediation Board.
Sec. 39-25. - Operation of stands generally; duties of operators.
Sec. 39-26. - Termination or revocation of franchise; abandoned locations.
Sec. 39-28. - Provisions relating to limitations of franchise ownership interest.
Sec. 39-29. - Private rentors.
Sec. 39-30. - Assignment of franchise.
Sec. 39-21. - Title.

This article shall be known as the "Beach Equipment Rental Franchise Ordinance."
(Code 1972, 26-1)

The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Annual bid price. The amount of the bid divided by the number of years of the term.
Beach, private. The area east of the beach replenishment project line, as defined in section
30-81, and west of the mean high-water mark of the Atlantic Ocean, which is part of a now existing
platted lot or lots under exclusive private ownership. This definition does not include any area east
of the easterly boundaries of the platted lots, nor does it include the area within the bed of any
street or alley in which Ocean City has an interest, whether by deed, dedication and acceptance
thereof, or by dedication without acceptance, nor does it include any area described on a recorded
plat as "beach," "beach area," "avenue" or like name, nor does it include any privately owned lot
over which Ocean City possesses an easement or right-of-way.
Beach, public. Includes all areas west of the mean low-water mark of the Atlantic Ocean and
east of the easterly boundary line of any privately owned property, and in any event includes all
areas east of the now existing boardwalk; all areas east of the westerly right-of-way line of Atlantic
Avenue as such avenue is shown on the plat of the Sinepuxent Beach Company of Baltimore City;
all the beds of any platted streets east of the aforementioned beach replenishment project line,
whether or not prior hereto conveyed to Ocean City or dedicated with or without acceptance; all
areas east of the mean high-water mark of the Atlantic Ocean; all areas marked "beach," "beach
http://library.municode.com/print.aspx?h=&clientID=12833&HTMRequest=http%3a%2f... 11/12/2012
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area," "avenue" or like name on any recorded plat of any land within the corporate limits of Ocean
City; or any land shown on any such plats as being located between the mean high-water mark of
the Atlantic Ocean and the easterly boundaries of any platted lots.
Franchise. The exclusive and sole right to operate a beach equipment business, subject to
the provisions of section 39-29.
Franchise area. The area for which an operator is granted a franchise.
Franchise fee. The yearly sum bid by any respective operator for any respective parcel.
Mediation Board. The board created and empowered as specified in this article, which board
shall have concurrent jurisdiction to regulate the beach equipment rental franchise system, subject
to the terms and conditions specified.
Operator. The owner of a franchise, who shall be one or more individuals, each of whom
shall acknowledge and sign the BID form pursuant to section 39-23(3). In the event of an
assignment or other change in individuals, each new owner shall provide references and
acknowledge and sign the BID form.
Private rentor. Those rentors who qualify as such under section 39-29.
Reference. Credit and bank references, as required in this article. The reference reports are
hereby declared to be privileged and confidential, and not subject to public inspection pursuant to
section 10-615(1) and section 10-617(d)(3) of the State Public Information Act.
System. The beach equipment rental franchise system.
(Code 1972, 26-2; Ord. No. 1996-6, 4-15-1999)
Sec. 39-23. - Franchise system.

There is established and created the beach equipment renal franchise system of Ocean City.
Such system is established as follows:
(1)
(2)
(3)
Division of public beach into parcels. For the purpose of this division, the area within
the corporate limits herein defined as "public beach" is hereby parceled and
subdivided into various parcels, as hereinafter set forth, and each parcel shall be a
separate franchise area.
Parcel regulations. Ocean City shall and does hereby restrict the rental of beach
equipment within each such parcel to the operator who holds the franchise for the
parcel. No other person shall rent beach equipment within the parcel except the
operator or his employees, nor shall any private renter, as defined in this article, or his
employees, carry on or emplace any beach equipment in such area. These
restrictions do not prohibit a patron from renting beach equipment from one parcel's
franchisee and placing said equipment upon another parcel.
Bidding and payment of fees.
a.
Franchises shall be obtained by a process and procedure of public bidding.
The respective operator or potential operator will obtain his franchise by
submitting, pursuant to the advertisement as hereinafter described, a sealed
bid, on forms provided by the City Clerk, which shall identify the parcels being
bid. In lieu of the sealed bid process, the Mayor and City Council may conduct
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b.
c.
a public auction of the franchises in such manner and upon such terms and
conditions as it may determine.
Corporations are prohibited from bidding. The bidder must be a natural person.
Each sealed bid shall be presented in the form and the successful bidder at a
public action shall present the form, as follows:
1.
$____________ per year, for a total of $____________ for the threeyear term of the franchise.
2.
The source of my funds for the initial franchise payment tendered
herewith is as follows:
(i)
Credit references: (applicant shall list at least two with full names,
addresses, telephone number and contact person).
(ii)
Bank reference: (applicant shall list at least one with full name,
address, telephone number and contact person).
3.
I do hereby agree to and authorize Mayor and City Council of Ocean
City to make inquiry of my personal background, financial, credit
worthiness and my credit report; and by my signature hereto, I do
hereby authorize and empower those listed as credit references and
bank references to release to the Mayor and City Council of Ocean City
any information pertaining to my personal background, financial and
credit worthiness, and for the Mayor and City Council of Ocean City to
obtain a copy of my credit report.
7." _____
(Name-hand written)
d.
4.
I do hereby certify that this BID has been arrived at independently,

without consultation, communication, or agreement as to any matter
relating to this BID with any other Bidder or with any competitor.
5.
I do hereby certify that I have no financial interest, direct or indirect, in

any other Ocean City beach equipment rental franchise, except as fully
disclosed and permitted by this chapter of the Code of Ocean City; and
that there are no other persons financially interested, direct or indirect, in
this BID, except as fully disclosed and permitted by this chapter of the
Code of Ocean City. (All persons must sign (7))
6.
I do hereby solemnly declare (or I hereby affirm) under penalties of

perjury that the information and statement above made are true and
correct to my knowledge and belief.
_____
(signature)"
Each sealed bid shall be accompanied by a cashier's or certified check payable

to the Mayor and City Council of Ocean City in the sum of 20 percent of the
annual bid price rounded up to the next whole dollar. At a public auction, each
successful bidder shall tender a cashier's check or certified check payable to
the Mayor and City Council in an amount as advertised prior to the auction for
each parcel. Within three business days from the date of the auction, the
successful bidders shall tender a cashier's or certified check payable to the
Mayor and City Council of Ocean City for the difference between the amount
tendered at the auction and 20 percent of the successful bid amount. The
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e.
f.
Mayor and City Council of Ocean City may reject any and all bids for any
reason it deems appropriate, and may rebid upon such terms, conditions and
manner it deems appropriate.
The successful bidder's 20 percent shall be retained, as the annual franchise
fees shall be payable for the first year as follows: 20 percent at the time of
bidding, an additional 40 percent of the annual fee on July 15, and the
remaining 40 percent of the annual fee on August 15.
For years subsequent to the year of bid, but included in the bid, the first
payment of 20 percent of the annual franchise fees for any respective year
shall be paid on or before January 1 of said year.
g.
(4)
Such advertisement shall indicate the term of years for which a franchise is to
be granted for any respective parcel.
h.
Provided the operator is not in default or otherwise in violation of any terms of
this article, the operator shall have an option to renew any franchise(s) for one
additional three-year term upon the same terms and conditions of the franchise
except that the annual franchise fee shall be ten percent greater than the
annual franchise fee for the initial term. If the operator elects to exercise this
renewal option, it must be done, in writing to the City Clerk before the end of
the second year of said initial term.
Franchise areas and terms. The franchise areas shall be designated as three
sections: North Section, Mid Section and South Section.
a.
The North Section shall include all franchise areas from the Delaware-Maryland
line to 84th Street as follows:
1.
Beginning at the midpoint of the block at 84th Street on the south,
2.
3.
4.
5.
6.
7.
8.
extending north to include 85th Street, 86th Street and the midpoint of
87th Street.
Beginning at the midpoint of the block at 87th Street on the south,
extending north to include 88th, 89th, 90th Streets and to the north side
of 91st Street.
Beginning at the south side of 92nd Street, extending north to include
93rd and to the north property boundary of the 9400 Condominium.
Beginning at the south property boundary of the Flying Cloud
Condominium, extending north to include the Pyramid and to the north
property boundary of the Plaza Condominium.
Beginning at the south property boundary of the Century I
Condominium, extending north to include the English Tower and to the
north property boundary of the Marigot Beach Condominium.
Beginning at the south property boundary of the Atlantis Condominium,
extending north to include the Quay and to the north property boundary
of the Golden Sands Condominium.
Beginning at the south property boundary of the Capri Condominium,
extending north to include the Irene and to the north property boundary
of the Rainbow Condominium.
Beginning at the south property of the High Point South Condominium,
extending north to include the High Point North and to the north property
boundary of the Seawatch Condominium.
9.
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10.
Beginning at the south property boundary of the Fountainhead

Condominium, extending north to include the Carousel Hotel
Condominium and to the midpoint of 118th Street.
Beginning at the midpoint of 118th Street, extending north to include
119th Street, 120th Street and to the midpoint of 121st Street.
11.
Beginning at the midpoint of 121st Street, extending north to include

122nd Street, 123rd Street and to the midpoint of 124th Street.
12.

125th Street, 126th Street and to the midpoint of 127th Street.
13.
14.
15.
16.
17.
18.

131st Street, 132nd Street and to the midpoint of 133rd Street.
Beginning at the midpoint of 133rd Street, extending north to include
140th Street, 141st Street and to the midpoint of 142nd Street.
Beginning at the midpoint of 142nd Street, extending north to include
143rd Street, 144th Street, 145th Street and to the Maryland/Delaware
line at 146th Street.
b.
(5)
The Mid Section shall include all franchise areas consisting of one block each
from the south side of 84th Street to and including all parcels either boundary
of which is north of 27th Street.
c.
The South Section shall include all franchise areas consisting of one block,
except for the southernmost franchise area which shall be two blocks, from the
south side of 27th Street to and including all parcels either boundary of which is
north of the Ocean City, Maryland, inlet.
Regulation of operators. All operators shall be regulated by the terms and provisions
of this division and by any regulations adopted by the Mediation Board with the
approval of the Mayor and City Council.
(6)
Stands and containers. Each operator shall be allowed to construct containers and a
beach stand. All stands shall be as uniform as possible. The design of the stands and
containers shall be subject to the approval of the Mayor and City Council. All stands
and containers shall be located as follows: one location at the street end of the parcel
or at the midpoint of the parcel, if there is no street end; except for the southernmost
and northernmost parcels which shall have two locations, one at each street end;
subject, however, to the provisions of section 39-29. Each operator shall be limited to
one stand and four containers at each parcel. At the request of the operator and after
receiving the recommendations of the Beach Mediation Board, the Mayor and City
Council may grant permission for additional stands and containers at parcels. The
location of the additional stands and containers on each parcel shall be subject to the
approval of the Mayor and City Council.
(7)
Rentals limited to operators. There shall be no license issued nor any beach
equipment rentals allowed within the corporate limits of Ocean City except by
operators of franchises, except as specified in section 39-29
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(Code 1972, 26-3; Ord. No. 1997-2, 3-17-1997; Ord. No. 1998-2, 3-16-1998; Ord. No. 1999-6, 3-15-1999; Ord.
No. 2001-1, 2-5-2001; Ord. No. 2001-3, 3-5-2001; Ord. No. 2002-2, 3-12-2002; Ord. No. 2003-7, 3-17-2003; Ord.
No. 2006-21, 8-21-2006)
Sec. 39-24. - Mediation Board.

(a)
There is hereby established a mediation board consisting of four members. They shall be
appointed by the mayor and approved by the council. The members of the mediation board
shall be appointed for terms beginning and ending with the term of the appointing mayor,
except, that the terms of the members shall not expire until their successors are duly
appointed and approved.
(b)
The Mediation Board shall immediately after appointment select a chairman and a secretary.
Meetings shall be held at the direction of either of these members of the board.
The duties and powers of the Mediation Board are as follows:
(1)
It shall receive complaints, in writing, in respect to operators from any interested party
requesting a hearing in reference to the complaint. Upon receipt of the request, the
board shall refer the alleged violation to the City Clerk who shall cause an
investigation for verification of the alleged violation. Upon investigation and upon
reasonable belief that the violation exists or did occur, written notification of such
violation shall be hand-delivered to the operator or attendant and sent via regular mail
to the beach parcel operator. The operator or attendant must sign a copy of the handdelivered notice to acknowledge receipt. The notice shall advise the operator he has
48 hours to correct the violation. If the violation continues, a hearing shall be
scheduled within five days. The beach parcel operator shall be notified of such
hearing, in writing, both hand-delivered to him or the attendant and sent via regular
mail. The hearing conducted by the board shall be taped or otherwise recorded. Upon
such hearing, if the board concludes that such violation has occurred or is occurring,
the board may impose a fine of not less than $25.00 nor more than $100.00 for each
violation or suspend the franchise for up to seven days. Any party aggrieved by the
decision of the board may appeal the same to the Mayor and City Council. The appeal
shall be on the record, and the decision of the board may be affirmed, reversed or
modified. If the beach parcel operator defies the action of the board (or Mayor and
Council, after appeal) or continues the violation, then, in that event, upon verification,
the board shall refer the same to the Mayor and City Council for possible revocation.
The Mayor and City Council shall schedule a hearing at a regularly scheduled Council
meeting. The beach parcel operator shall be notified, in writing, both hand-delivered to
him or the attendant and via regular mail, of the hearing date and the alleged violation.
Upon such hearing, the Mayor and City Council may further fine, suspend, or revoke
the franchise if it determines that the violation did occur or is occurring.
(2)
The Mediation Board shall advise the Mayor and City Council of all findings handed
(c)
down by the board in any year prior to the time of advertisements for bids. If the
Mediation Board finds that an operator has violated the terms of this article in two or
more instances in any one year of his term, the Mediation Board shall recommend
that the Mayor and City Council not accept any new bids from the operator. In such
case, after receiving notice that an operator is not recommended, the Mayor and City
Council may, at its sole option, reject any future bid submitted by the operator; or
upon the recombination of the Beach Mediation Board, the Mayor and City Council
may revoke or suspend the current license and/or franchise and/or any future bids
from the franchise operator.
(3)
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The Mediation Board, if deemed warranted by the board, may, subject to the approval
of the Mayor and City Council, establish maximum prices above which the operators
may not charge for the rental of specific equipment. However, the Mediation Board
should not set the maximum prices unless the board considers the prices for rentals of
equipment are so exorbitant as to create a serious public need for price regulation. In
any event, maximum prices may not be established until after an advertised public
meeting is held in respect to the regulation of prices.
(4)
The Mediation Board shall receive, open at the designated time at a preannounced
open meeting and review for sufficiency each bid and make recommendation of
approval of the highest successful bid to the Mayor and City Council of Ocean City.
(Code 1972, 26-4; Ord. No. 1996-6, 4-15-1999; Ord. No. 2010-47, 1-3-2011)
Sec. 39-25. - Operation of stands generally; duties of operators.

(a)
Operators shall be required to keep all areas within 50 feet of the stand and container
location free and clear of all debris and trash of all types.
(b)
No operator shall allow alcoholic beverages to be consumed by his employees while on the
beach. No operator shall allow alcoholic beverages at his stand and container location.
Except as hereinafter provided, no operator shall allow any of his beach equipment to be
placed more than ten feet away from his stand on the beach prior to the time the renter of
such equipment is actually on the beach. An operator shall be allowed to preplace ten
umbrellas if on a three block parcel or five umbrellas if on a one block parcel. No operator
shall preplace any other equipment, and it shall only be placed on the beach when the
customer himself is on the beach. It may remain only so long as the renter or customer is
utilizing the equipment, except that all equipment must be removed prior to 6:00 p.m. Upon
the customer's leaving the beach, the operator shall make all efforts to promptly remove the
equipment. This subsection shall apply equally to weekly customers.
No operator shall allow the placement of any of his equipment east of a line established by
the beach patrolman in his respective area; and in the event that no such line is established,
no equipment shall be allowed east of the beach patrolman's stand.
All operators and their employees shall obey all lawful orders of any policeman or beach
patrolman of Ocean City.
(c)
(d)
(e)
(f)
All operators shall maintain at least one stand at each street end of every parcel in the South
Section, and it shall open no later than 10:00 a.m., Monday through Sunday, from June 1
through Labor Day of each year. All operators shall maintain at least one stand at each street
end of each parcel in the North Section, and it shall open no later than 10:00 a.m., Monday
through Sunday, from June 1 through Labor Day of each year.
(g)
Each stand or container is required to have two signs designating the franchisee's name,
address and phone number and the rental price list of all items rented at the respective stand
identifying the amount per item and the duration of rental. Optional information may include
operator's trade name. The design and content of each sign shall be subject to the approval
of the board, but in no event shall a sign exceed dimensions of 24 by 24 inches. The
required information must be a minimum of one-inch block lettering, color black on a white
sign surface. The required sign is to be displayed on both the north and south sides of the
stand or container. An optional sign of identical designations is also permitted on the east or
west side of the stand or container. The stand or container shall be maintained in good
condition.
Sufficient equipment shall be available at each location to properly service the demands of
the customers at the location. All equipment shall be maintained in good condition.
(h)
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(i)
No operator shall place any of his rental or other equipment on private property after having
been directed not to do so by the private property owner or his agent.
(j)
No operator shall place any of his rental or other equipment on the beach prior to May 1 of
the current year. All rental equipment and beach boxes must be removed by October 1 of the
current year. Any equipment not so removed will be subject to removal by Ocean City, at a
cost of $100.00 to the operator, such removal to be at the risk of the operator. Ocean City
will not be liable for any loss or damage incurred thereby.
(k)
Storage boxes must be painted and in good repair before being placed on the beach. If not
done after notice is given, Ocean City will make the repair and a fee will be assessed.
Operators are required to make repairs to stands, containers and equipment either
completely off-site or in the mediate area of the stand or container, but in no event is the
operator allowed to make such repairs on the boardwalk, sea wall, public benches or other
public areas.
(l)
(m)
During the days operators are required to have stands open, the stands shall be opened and
staffed from 10:00 a.m. until 5:00 p.m., except in cases of inclement weather which would
make beach recreation impractical.
(n)
No operator shall allow the placement of a stand, container, or equipment on a sand dune.
Operators are allowed to rent up to five cabanas per block. As used herein cabana means a
tent like nonpermanent structure which has at least one side open when placed in the sand.
All cabanas must be placed behind the west edge of the lifeguard stand; and any cabana of
a size in excess of 59 inches in width, 44 inches in height and 48 inches in depth must be
placed at least 50 feet west of the west edge of the lifeguard stand. No cabana can be
rented that exceeds 87 inches in width, 58 inches in height and 68 inches in depth.
(o)
(Code 1972, 26-5; Ord. No. 1996-6, 4-15-1999; Ord. No. 2001-1, 2-5-2001; Ord. No. 2002-2, 3-12-2002; Ord. No.
2010-12, 5-17-2010; Ord. No. 2011-3, 2-22-2011)
Sec. 39-26. - Termination or revocation of franchise; abandoned locations.

(a)
(b)
(c)
All franchises shall terminate at the expiration of their respective terms, unless otherwise
extended by the Mayor and City Council, pursuant to subsection 39-26(b) hereof.
Any franchise may be immediately revoked upon the nonpayment of the franchise fees when
due, unless the time period is extended by the Mayor and City Council upon the franchisee's
written request prior to the payment due date, and if approved, upon the payment of an
extension fee of five percent of the unpaid balance due if payment is made within one to
seven days of the due date or ten percent of the unpaid balance due if payment is made
within eight to 14 days of the due date. If payment in full of the balance due and the
extension fee is not paid by the 14th day following the due date, the Council may terminate
the franchise and commence debarment proceedings. In addition thereto, upon extraordinary
circumstances and good cause shown by the franchisee, the Mayor and City Council may
grant such other relief as it deems appropriate.
In the event that any stands are not maintained at the locations within each parcel as
required, such locations shall be considered abandoned and may be withdrawn from any
such operator's parcel, and the Mediation Board may, by regulation, allow a new operator to
maintain a stand at the abandoned location for the remainder of the current season. The
franchise for a parcel, within which a stand has been abandoned, shall terminate as of the
end of the season, and such franchise for the parcel shall, after being duly advertised, be
reoffered for bids. If a franchise is so terminated and reoffered for bids, the operator shall
incur no further liability except as to franchise fees due in the season during which the stand
is abandoned and the franchise terminated.
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Page 9 of 11
If it is determined that an operator has caused or allowed any of his beach rental or other
equipment to be placed on private property after being notified and/or warned not to do so by
the private property owner, the Mayor and City Council may revoke and terminate the
operator's franchise, offer the franchise for rebidding and award the franchise to a
subsequent high bidder. Any operator who has his franchise revoked or terminated for this
reason will not be eligible to bid on any franchises for a period of three years. Any operator
whose franchise is so revoked and terminated shall not be entitled to any reimbursement for
franchise fees paid prior to such revocation or termination.
(Code 1972, 26-6; Ord. No. 2000-24, 8-21-2000; Ord. No. 2007-27, 11-19-2007)

Each of the acts described in this section are prohibited:
(1)
(2)
A violation of any of the terms and conditions of this article.

The rental within the corporate limits of any beach equipment by anyone other than an
operator or a private rentor regulated and limited by section 39-29
(3)
The placing or carrying of beach equipment in public beach areas by persons not
operators or employees thereof or the use of some other person.
(Code 1972, 26-7)
Sec. 39-28. - Provisions relating to limitations of franchise ownership interest.

No operator or any other individual, corporation, partnership or company shall be permitted
to hold more than 50 percent of the franchises for parcels within Ocean City. Ownership of a partial
interest in other franchises shall, for the purpose of this section, be deemed as ownership of all of
that franchise. Interest shall mean interest in partnerships, companies, joint ventures, ownership of
stock of corporations and any other type of ownership or interest not specifically mentioned in this
section.
(Code 1972, 26-8; Ord. No. 2008-21, 12-1-2008)
Sec. 39-29. - Private rentors.

(a)
(b)
Provisional license. Any person other than a successful bidder within the corporate limits of
Ocean City may apply for a provisional license to rent beach equipment upon paying the
license fee provided in subsection (b) of this section and subject to the terms and provisions
of subsections (b) and (c) of this section.
License fees and applications.
(1)
The license fees for such private rentors shall be as follows:
(2)
a.
Five hundred dollars rental fee per year, per each location at which equipment
is rented.
b.
c.
Ten dollars per year, per each umbrella to be rented at each such location.
Ten dollars per year, per each surf mat to be rented at each location.
d.
Five dollars per year, per each chair, backrest or other beach items to be
rented at each location.
Application for each license shall be made at the office of the City Clerk; and the
applicant shall provide to the City Clerk, prior to the issuance of the license, a
notarized statement indicating the following:
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a.
b.
c.
(3)
(c)
When a person applies for a license to operate a beach equipment rental business in
an area of private beach, he shall first present as a part of his application a copy of
the deed in which the applicant is the grantee, and shall include in the notarized
statement required by subsection (b)(2) of this section an affirmation that he is the
owner of the property. No licenses will be issued for locations on a private beach to
anyone other than the owner thereof. Such a license shall be subject to all the
provisions of this section.
Rules and regulations.

(1)
No private rentor shall cause or allow his employees to place any equipment rented
from him on the public beach areas.
(2)
No private rentor shall rent beach equipment within Ocean City without paying the
(3)
(4)
(d)
That the number of umbrellas, surf mats, chairs and other items for which he is
applying for a license is correct and that, if he adds to the number of such
equipment, he will immediately inform the City Clerk's office and pay the proper
supplemental fee.
That he will not use, nor allow his employees to use, the public beach for the
placing of his equipment.
That he will utilize only the property owned by him in the conduct of his
business.
fees and obtaining the license required under subsection (b) of this section.
All private rentors shall comply with section 39-25(a)(e).
Cabanas are prohibited from being placed on the beach.

Suspension of private rentor's license. If the Mediation Board or its duly designated inspector
discovers, upon inspection, a quantity of beach equipment on any private rentor's licensed
premises in excess of the quantity for which the private license was issued, the Mediation
Board shall immediately recommend to the Mayor and City Council that the license be
immediately suspended. The Mayor and City Council may then, at its option, immediately
suspend the license.
(Code 1972, 26-9; Ord. No. 1994-7, 4-4-1994)
Sec. 39-30. - Assignment of franchise.

Assignment of the franchise agreement is prohibited without prior written consent of the City
Clerk.
(Code 1972, 26-10)

(a)
(b)
For the protection of the public and the Mayor and City Council, an operator must obtain, at
the operator's own expense, comprehensive general liability insurance coverage and
products liability insurance coverage in at least the amount of $1,000,000.00 combined
single limit, which insurance coverage shall name the Mayor and City Council as an
additional insured, and a certificate of insurance evidencing such coverage shall be
furnished to the Mayor and City Council by the operator and be approved by Ocean City's
City Clerk before the operator engages in the rental of beach equipment.
Additionally, the operator shall execute an indemnity in favor of the Mayor and City Council
of Ocean City indemnifying and holding it harmless from any liability from claims arising from
the operator's activities at the parcel including attorney fees and related costs of defense.

5. NEW BUSINESS
H. Review of Town's Budget Process and FY15 Budget Amendment #1
presented by City Manager and Budget Manager
TOWN OF
TO:
THRU:
FROM:
RE:
DATE:
Agenda Item #
5H
Council Meeting
February 10, 2015

Jennie Knapp, Budget Manager
Review of Budget Process and Budget Amendment #1
February 3, 2015
ISSUE(S):
Overview of Towns budget process and further discussion of

Budget Amendment #1
SUMMARY:
The discussion will entail a:

review of Maryland statute defining the fiscal year for
municipalities;
review of Town Code pertaining to the budget and budget
amendments;
review FY15 Budget Amendment #1 items;
compare FY15 Adopted Budget and FY15 Budget Amendment #1
with a discussion of spreadsheet formulas used to determine
budget ordinances.
FISCAL IMPACT:
The amount taken from prior year reserves (fund balance)

increases $1,537,756 from $931,828 in the FY 15 Adopted Budget
to $2,469,584. Fund balance remains at or above the 15% of
annual expenditures policy target. $440,419 of the $1,843,098
savings from retiree health insurance and pension was used to
reduce revenue estimates and to fully fund the Vehicle Trust Fund.
A balance of $1,402,679 remains in the FY 15 amended budget.
RECOMMENDATION:
Proceed with second reading of Ordinance 2015-02.

Financially Sound Town Government
ALTERNATIVES:
Make additional changes to the FY15 Budget.
RESPONSIBLE STAFF:
Jennie Knapp, Budget Manager
COORDINATED WITH:
David Recor, City Manager
ATTACHMENT(S):
1)
2)
3)
4)
PowerPoint
Comparison of FY15 adopted budget to FY15 amendment #1
Ordinance 2015-02 scheduled for second reading February 17
Statement of changes from the adopted budget
TOWN OF OCEAN CITY

BUDGET PROCESS
AND BUDGET AMENDMENT #1
FISCAL YEAR
Section 16-101 of the Maryland Code
states, The fiscal year for each county,

municipality, or special taxing district
begins on July 1 of a calendar year and
ends on June 30 of the next calendar year.
This section also states that this fiscal year
is required for appropriating money,
authorizing expenditures and balancing
books and accounts.
CITY CHARTER
Section C-703 of the Town of Ocean City Charter states, The town
shall operate on an annual budget. The fiscal year of the town shall
begin on the first day of July and end on the last day in June each
year. Such fiscal year shall constitute the tax year, the budget year,
and the accounting year.
Section C-704 of the Town of Ocean City Charter states, The budget
shall provide a complete financial plan for the budget year and shall
contain estimates of anticipated revenues and proposed expenditures
for the coming year. The total of the anticipated revenues shall equal
or exceed the total of the proposed expenditures.
CITY CHARTER
Section C-706 states:
A. No public money may be expended without having been

appropriated by the Council.
B. During any fiscal year, the Council may, by resolution, make
supplementary appropriations from unexpended and
unencumbered funds set aside for contingencies, federal, state,
or private grants not already included in the budget and revenue
received from unanticipated sources in excess of budget
estimates.
Section C-708 states that over-expenditures are forbidden.
EXPENDITURE CHANGES
Items Funded by Council
$ 855,680
Prior Year Purchase Orders
491,355
Items Funded by Grants
288,750
Items Funded in FY 14
190,721
Critical Areas project balances
35,492
Items Funded by FY 15 donations
18,650
Savings in Retiree Health
(440,419)
Transfer to Vehicle Trust
90,419
Total Expense Increases
$1,530,648
ITEMS FUNDED BY COUNCIL

Street Paving, $699,280, approved by Council 9/30/14
$1,300,720 was included in the FY 15 approved budget
Appears in Transfer to Capital projects in the General Fund and in Transfer From
General Fund in the Capital Projects section
Towns local match for runway 14/32 repaving, $66,000

Approved by Council 10/14/14
Appears as Transfer to Airport in the General Fund and Transfer from General
fund in the Airport section
Beach Patrol Headquarters project, $50,000

Appears in Transfer to Capital projects in the General Fund and in Transfer from
the General Fund in the Capital projects section
Convention Center water feature, $40,400

Completely funded by donations. Appears as Transfer to Convention Center in
General Fund and Transfer from General Fund in the Convention Center section
PRIOR YEAR PURCHASE ORDERS

Section C-709 of the Town code states, all
appropriations shall lapse at the end of the

budget year.
At June 30, 2014, the end of FY 14, there were
$491,355 in open purchase orders in the General

Fund. When the purchase orders were closed,
the funds went into the Towns fund balance. In
order to be re-appropriated, they need to be
included in the FY 15 budget.
ITEMS FUNDED BY GRANTS

Network Backup appliance,
Homeland Security grants,
Hazardous Materials grants,
Violence Against Women grant
Prior Year grant balances
Total Grant funded items:
$135,647
88,393
25,675
4,302
34,733
$288,750
ITEMS FUNDED IN FY 14
Power washing, paint and carpet at City Hall
Advertising due from FY 14 formula
FY 14 unspent Tourism Advisory Board funds
Northside Park patio resurfacing
Items Funded in FY 14
$ 65,000
43,429
58,066
24,226
$190,721
PROJECTS AND DONATIONS

Critical Areas FY 14 project balances,
Donations received in FY 15:
Paramedic Foundation $17,500
Beach wheelchair
950
Miscellaneous
200
$35,492
18,650
SAVINGS IN RETIREE HEALTH

Total savings in retiree health
Savings used in amendment
Savings remaining in FY 15
expenditure line items
$1,843,098
(440,419)
$1,402,679
ORDINANCE 2014-12
ORDINANCE 2015-
TOWN OF OCEAN CITY

OPERATING BUDGET
FISCAL YEAR 2015
2ND READING
FY 2015
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 Fund
To Capital Projects
Total Expenditures
42,089,670
16,520,600
4,062,570
4,855,273
9,497,633
710,000
567,759
931,828
79,235,333
4,000,086
34,216,710
5,302,911
5,616,940
5,402,696
7,184,880
7,697,061
5,220,163
74,641,447
1,300,787
262,069
1,480,310
0
1,550,720
79,235,333
2ND READING
FY 2015
SOURCE
TOWN OF OCEAN CITY

BUDGET AMENDMENT
FISCAL YEAR 2015
ADOPTED
FY-2015
SOURCE
Property Taxes
Other Taxes
Other Revenue
Prior Year Reserves
Total Revenue
General Government
Public Safety
Debt Service
Sub Total
To Airport Fund
To Capital Projects
Total Expenditures
42,089,670
16,520,600
4,062,570
4,855,273
9,497,633
710,000
567,759
931,828
79,235,333
4,000,086
34,216,710
5,302,911
5,616,940
5,402,696
7,184,880
7,697,061
5,220,163
74,641,447
1,300,787
262,069
1,480,310
0
1,550,720
79,235,333
ADOPTED
FY-2015
SOURCE
Section II, Water Fund:
Water Sales
Water Fixture Charge
Service Charges
Capacity/Impact Fees
Prior Year Reserves
3,748,313
3,489,335
189,261
89,964
0
Water Sales
Service Charges
Prior Year Reserves
3,748,313
3,489,335
189,261
89,964
0
Total Revenue
7,516,873
Total Revenue
7,516,873
Personal Services
Non-Personal Services
Debt Service
Capital Outlay
2,081,064
3,172,165
743,044
1,520,600
Personal Services
Debt Service
Capital Outlay
2,081,064
3,172,165
743,044
1,520,600
Total Expenditures
7,516,873
Total Expenditures
7,516,873
Section III, Transportation Fund:
Bus Revenue
Train Revenue
Federal and State Grants
Transfer-In From General Fund
Prior Year Reserves
Total Revenue
3,332,166
1,088,620
3,514,982
1,300,787
0
Bus Revenue
Train Revenue
Capital Asset Sales
Prior Year Reserves
3,332,166
1,088,620
3,514,982
1,300,787
0
0
9,236,555
Personal Services
Capital Outlay
3,637,046
3,267,509
2,332,000
Total Expenditures
9,236,555
9,236,555
Total Revenue
Personal Services
Capital Outlay
Total Expenditures
3,637,046
3,267,509
2,332,000
9,236,555
2ND READING
FY 2015
SOURCE
Section IV, Wastewater Fund:
Wastewater Treatment Charges

Service Charges
Build America Bond Subsidy
Prior Year Reserves
Total Revenue
11,388,335
1,000,992
157,080
128,710
77,514
12,752,631
ADOPTED
FY-2015
SOURCE

Service Charges
Prior Year Reserves
Total Revenue
11,388,335
1,000,992
157,080
128,710
77,514
12,752,631
Personal Services
Debt Service
Capital Outlay
4,145,170
3,625,632
3,652,829
1,329,000
Personal Services
Debt Service
Capital Outlay
4,145,170
3,625,632
3,652,829
1,329,000
Total Expenditures
12,752,631
Total Expenditures
12,752,631
654,711
338,728
79,124
262,069
0
1,334,632
316,557
875,098
142,977
0
Section V, Airport Fund:
Fuel Sales
Rents and Other Revenue
Service Charges
Total Revenue
654,711
338,728
79,124
262,069
Fuel Sales
Service Charges
Prior Year Reserves
1,334,632
Total Revenue
Personal Services
Debt Service
Capital Outlay
Total Expenditures
316,557
875,098
142,977
0
1,334,632
Personal Services
Debt Service
Capital Outlay
Total Expenditures
2ND READING
FY 2015
SOURCE
Total Revenue
Section VI, Municipal Golf Course Fund:
1,633,496
415,366
63,600
2,112,462
Service Charges
Sales and Concessions
Other Revenue
Prior Year Reserves
Total Revenue
Personal Services
Transfer to General Fund
Capital Outlay
Total Expenditures
1,077,936
1,024,758
9,768
0
Personal Services
Capital Outlay
Section VII, Convention Center Fund:
Total Revenue
Personal Services
Debt Service
Transfer to Capital Reserves
Capital Outlay
Total Expenditures
1,633,496
415,366
63,600
0
2,112,462
1,077,936
1,024,758
9,768
0
2,112,462
1,770,900
1,543,906
1,170,000
1,480,310
2,139,496
0
8,104,612
2,965,935
1,600,585
3,398,092
100,000
40,000
8,104,612
2,112,462
Total Expenditures
Service Charges
State and County Grants
Food & Beverage Tax
Prior Year Reserves
Contributed Equity
1,770,900
1,543,906
1,170,000
1,480,310
2,139,496
0
Service Charges
Food & Beverage Tax
Prior Year Reserves
Contributed Equity
8,104,612
2,965,935
1,600,585
3,398,092
100,000
40,000
Personal Services
Debt Service
Capital Outlay
8,104,612
Total Expenditures
Total Revenue
2ND READING
FY 2015
SOURCE
ADOPTED
FY-2015
SOURCE
Section VIII, Information Technology Fund:
Service Charges To Other Funds

Prior Year Reserves
Total Revenue
1,334,632
ADOPTED
FY-2015
SOURCE

Service Charges
Other Revenue
1,985,026
0
1,985,026

Prior Year Reserves
Total Revenue
1,985,026
0
1,985,026
Personal Services
Capital Outlay
987,993
997,033
0
Personal Services
Capital Outlay
987,993
997,033
0
Total Expenditures
1,985,026
Total Expenditures
1,985,026
Section IX, Service Center Fund:

Prior Year Reserves
Total Revenue
5,208,233
0
5,208,233

Prior Year Reserves
Total Revenue
5,208,233
0
5,208,233
Personal Services
Debt Service
Capital Outlay
1,820,690
3,387,543
0
0
Personal Services
Debt Service
Capital Outlay
1,820,690
3,387,543
0
0
Total Expenditures
5,208,233
Total Expenditures
5,208,233
2ND READING
FY 2015
SOURCE
ADOPTED
FY-2015
SOURCE
Section X, Vehicle & Equipment Trust Fund:

General Fund Contribution
Sale of Assets
Total Revenue
2,243,297
0
129,709
2,373,006
F
G

Transfer From General Fund
Sale of Assets
Prior Year Reserves
2,243,297
0
129,709
0
2,373,006
Debt Service
Transfers Out
Capital Outlay
744,352
0
0
1,628,654
Total Expenditures
2,373,006
2,291,711
50,000
0
2,341,711
257,074
2,084,637
0
2,341,711
Total Revenue
Debt Service
Transfers Out
Capital Outlay
Total Expenditures
744,352
0
0
1,628,654
2,373,006
Section XI, Risk Management Fund:

Interest Earned
Prior Year Reserves
Total Revenue
2,291,711
50,000
0
2,341,711
Personal Services
Non-Personal Services/Claims
Capital Outlay
Total Expenditures
SOURCE
Section XII, Pension Trust Funds:

Interest Earned
Prior Year Reserves
Total Revenue
257,074
2,084,637
0
2,341,711
2ND READING
FY 2015
Personal Services
Capital Outlay
Total Expenditures
SOURCE
ADOPTED
FY-2015
Employer Contributions
Employee Contributions
Investment Earnings
Total Revenue
Benefit Payments
Reserve for Employee's Retirement
Total Expenditures
5,954,153
1,575,000
4,500,000
12,029,153
4,850,000
385,000
6,794,153
12,029,153
Total Revenue
Benefit Payments
Total Expenditures
Section XIII, OPEB Trust Funds:

Investment Earnings
Total Revenue
Benefit Payments
Reserve for Retiree Health
Total Expenditures
Investment Earnings
5,954,153
1,575,000
4,500,000
12,029,153
4,850,000
385,000
6,794,153
12,029,153
3,825,402
220,000
350,000
4,395,402
1,080,000
95,000
3,220,402
4,395,402
3,825,402
220,000
350,000
4,395,402
1,080,000
95,000
3,220,402
4,395,402
Investment Earnings
Total Revenue
Benefit Payments
Total Expenditures
ADOPTED
FY-2015
SOURCE
Section XIV, General Capital Projects Fund:
2ND READING
FY 2015
SOURCE
Critical Areas Mitigation

Stormwater Mitigation
Sidewalk Installation
Private Contributions
Inlet Lot Parking Revenue

Total Revenue
1,550,720
270,000
$
1,820,720
Street Paving
Canal Dredging
Reserve for Future Capital Projects
Total Expenditures
1,300,720
250,000
270,000
$
1,820,720
Section XIV, All Funds Expenditure Summary:

General Fund
Water Fund
Transportation Fund
Wastewater Fund
Airport Fund
Municipal Golf Course Fund
Convention Center Fund
Information Technology Fund
0
0
0
0
1,550,720
270,000
K
Total Revenue
1,820,720
St. Louis Avenue Phase III
Street Paving
Beach Patrol Headquarters
Canal Dredging
Total Expenditures
0
1,300,720
0
250,000
270,000
$
1,820,720

79,235,333
7,516,873
9,236,555
12,752,631
1,334,632
2,112,462
8,104,612
1,985,026
General Fund
Water Fund
Transportation Fund
Wastewater Fund
Airport Fund
79,235,333
7,516,873
9,236,555
12,752,631
1,334,632
2,112,462
8,104,612
1,985,026
Service Center Fund

Vehicle & Equipment Trust Fund
Risk Management Fund
Pension Trust Funds
OPEB Trust Fund
Sub Total
5,208,233
2,373,006
2,341,711
12,029,153
4,395,402
$
LESS: Interfund Transfers

Total Expenditures
Capital Projects Fund - General

Grand Total
1,300,787
262,069
1,480,310
1,985,026
5,208,233
2,243,297
0
2,291,711
5,954,153
3,825,402
1,550,720
26,101,708
(5,208,233)
20,893,475
Sub Total
(20,893,475)
127,732,154
Total Expenditures
1,820,720
$
Totals
A
B
C
D
E
F
G
H
I
J
K
148,625,629
Service Center Fund

Pension Trust Funds
OPEB Trust Fund
129,552,874
5,208,233
2,373,006
2,341,711
12,029,153
4,395,402
$
(26,101,708)
$

Grand Total
148,625,629
122,523,921
1,820,720
124,344,641
ORDINANCE 2015TOWN OF OCEAN CITY

OPERATING BUDGET
FISCAL YEAR 2015
ADOPTED
FY-2015
SOURCE
Property Taxes
Other Taxes
Other Revenue
Prior Year Reserves
Total Revenue
General Government
Public Safety
Debt Service
Sub Total
To Airport Fund
To Capital Projects
Total Expenditures
AMENDMENT # 1
FIRST READING
CHANGES
42,089,670 $
16,520,600
4,062,570
4,855,273
9,497,633
710,000
567,759
931,828
42,089,670 $
16,520,600
4,098,062
5,144,023
9,242,633
660,000
541,409
2,469,584
0
0
35,492
288,750
(255,000)
(50,000)
(26,350)
1,537,756
79,235,333 $
80,765,981 $
1,530,648
4,000,086 $
34,216,710
5,302,911
5,616,940
5,402,696
7,184,880
7,697,061
5,220,163
4,052,123 $
34,404,382
5,412,006
5,606,434
5,404,200
7,383,494
7,743,194
5,220,163
52,037
187,672
109,095
(10,506)
1,504
198,614
46,133
0
74,641,447 $
1,300,787
262,069
1,480,310
0
1,550,720
75,225,996 $
1,300,787
328,069
1,520,710
90,419
2,300,000
584,549
0
66,000
40,400
90,419
749,280
79,235,333 $
80,765,981 $
1,530,648
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Water Sales
Service Charges
Prior Year Reserves
3,748,313 $
3,489,335
189,261
89,964
0
3,748,313 $
3,489,335
189,261
89,964
111,168
0
0
0
0
111,168
Total Revenue
7,516,873 $
7,628,041 $
111,168
Personal Services
Debt Service
Capital Outlay
2,081,064 $
3,172,165
743,044
1,520,600
2,065,064 $
2,907,333
743,044
1,912,600
(16,000)
(264,832)
0
392,000
Total Expenditures
7,516,873 $
7,628,041 $
111,168
3,332,166 $
1,088,620
3,514,982
1,300,787
0
0
3,332,166 $
1,096,036
5,236,772
1,300,787
33,052
292,068
0
7,416
1,721,790
0
33,052
292,068
9,236,555 $
11,290,881 $
2,054,326
Personal Services
Capital Outlay
3,637,046 $
3,267,509
2,332,000
3,637,046 $
3,486,060
4,167,775
0
218,551
1,835,775
Total Expenditures
9,236,555 $
11,290,881 $
2,054,326

Bus Revenue
Train Revenue
Capital Asset Sales
Prior Year Reserves
Total Revenue
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Service Charges
Prior Year Reserves
11,388,335 $
1,000,992
157,080
128,710
77,514
11,388,335 $
1,102,585
157,080
128,710
806,276
0
101,593
0
0
728,762
12,752,631 $
13,582,986 $
830,355
Personal Services
Debt Service
Capital Outlay
4,145,170 $
3,625,632
3,652,829
1,329,000
4,145,170 $
3,770,748
3,652,829
2,014,239
0
145,116
0
685,239
Total Expenditures
12,752,631 $
13,582,986 $
830,355
654,711 $
338,728
79,124
262,069
0
654,711 $
338,728
79,124
328,069
20,784
0
0
0
66,000
20,784
1,334,632 $
1,421,416 $
86,784
Personal Services
Debt Service
Capital Outlay
316,557 $
875,098
142,977
0
316,557 $
895,882
142,977
66,000
0
20,784
0
66,000
Total Expenditures
1,334,632 $
1,421,416 $
86,784
Total Revenue

Fuel Sales
Service Charges
Prior Year Reserves
Total Revenue
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Service Charges
Other Revenue
Prior Year Reserves
Total Revenue
Personal Services
Capital Outlay
Total Expenditures
1,633,496 $
415,366
63,600
0
1,633,496 $
415,366
63,600
1,994
0
0
0
1,994
2,112,462 $
2,114,456 $
1,994
1,077,936 $
1,024,758
9,768
0
1,077,936 $
1,026,752
9,768
0
0
1,994
0
0
2,112,462 $
2,114,456 $
1,994
1,770,900 $
1,543,906
1,170,000
1,480,310
2,139,496
0
1,770,900 $
1,543,906
1,170,000
1,520,710
2,140,328
0
0
0
0
40,400
832
0
8,104,612 $
8,145,844 $
41,232
2,965,935 $
1,600,585
3,398,092
100,000
40,000
2,965,935 $
1,601,417
3,398,092
100,000
80,400
0
832
0
0
40,400
8,104,612 $
8,145,844 $
41,232

Service Charges
Food & Beverage Tax
Prior Year Reserves
Contributed Equity
Total Revenue
Personal Services
Debt Service
Capital Outlay
Total Expenditures
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Prior Year Reserves
1,985,026 $
0
1,985,026 $
17,921
0
17,921
1,985,026 $
2,002,947 $
17,921
Personal Services
Capital Outlay
987,993 $
997,033
0
987,993 $
1,014,954
0
0
17,921
0
Total Expenditures
1,985,026 $
2,002,947 $
17,921
5,208,233 $
0
4,808,233 $
25,637
(400,000)
25,637
5,208,233 $
4,833,870 $
(374,363)
Personal Services
Debt Service
Capital Outlay
1,820,690 $
3,387,543
0
0
1,749,690 $
3,084,180
0
0
(71,000)
(303,363)
0
0
Total Expenditures
5,208,233 $
4,833,870 $
(374,363)
Total Revenue

Prior Year Reserves
Total Revenue
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Sale of Assets
Prior Year Reserves
2,243,297 $
0
129,709
0
2,243,297 $
90,419
129,709
255,427
0
90,419
0
255,427
2,373,006 $
2,718,852 $
345,846
Debt Service
Transfers Out
Capital Outlay
744,352 $
0
0
1,628,654
744,352 $
0
0
1,974,500
0
0
0
345,846
Total Expenditures
2,373,006 $
2,718,852 $
345,846
2,291,711 $
50,000
0
2,291,711 $
50,000
347
0
0
347
2,341,711 $
2,342,058 $
347
257,074 $
2,084,637
0
257,074 $
2,084,984
0
0
347
0
2,341,711 $
2,342,058 $
347
Total Revenue

Interest Earned
Prior Year Reserves
Total Revenue
Personal Services
Capital Outlay
Total Expenditures
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Investment Earnings
Total Revenue
Benefit Payments
Total Expenditures
5,954,153 $
1,575,000
4,500,000
5,954,153 $
1,575,000
4,500,000
0
0
0
12,029,153 $
12,029,153 $
4,850,000 $
385,000
6,794,153
4,850,000 $
385,000
6,794,153
0
0
0
12,029,153 $
12,029,153 $
3,825,402 $
220,000
350,000
3,825,402 $
220,000
350,000
0
0
0
4,395,402 $
4,395,402 $
1,080,000 $
95,000
3,220,402
1,080,000 $
95,000
3,220,402
0
0
0
4,395,402 $
4,395,402 $

Investment Earnings
Total Revenue
Benefit Payments
Total Expenditures
ADOPTED
FY-2015
SOURCE
AMENDMENT # 1
FIRST READING
CHANGES

Total Revenue
0
0
0
0
1,550,720
270,000
25,000
25,000
2,321
75,000
2,300,000
270,000
25,000
25,000
2,321
75,000
749,280
0
1,820,720 $
2,697,321 $
876,601
0
1,300,720
0
250,000
270,000
125,000
2,002,321
50,000
250,000
270,000
125,000
701,601
50,000
0
0
1,820,720 $
2,697,321 $
876,601
79,235,333 $
7,516,873
9,236,555
12,752,631
1,334,632
2,112,462
8,104,612
1,985,026
5,208,233
2,373,006
2,341,711
12,029,153
4,395,402
80,765,981 $
7,628,041
11,290,881
13,582,986
1,421,416
2,114,456
8,145,844
2,002,947
4,833,870
2,718,852
2,342,058
12,029,153
4,395,402
1,530,648
111,168
2,054,326
830,355
86,784
1,994
41,232
17,921
(374,363)
345,846
347
0
0
148,625,629 $
153,271,887 $
4,646,258
(26,101,708)
(26,647,807)
122,523,921 $
126,624,080 $
1,820,720
2,697,321
124,344,641 $
129,321,401 $
St. Louis Avenue Phase III
Street Paving
Canal Dredging
Total Expenditures

General Fund
Water Fund
Transportation Fund
Wastewater Fund
Airport Fund
Service Center Fund
Pension Trust Funds
OPEB Trust Fund
Sub Total
Total Expenditures

Grand Total
(546,099)
4,100,159
876,601
4,976,760
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 $0.4704 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 January 20, 2015.
ADOPTED AND PASSED, as amended, by the required vote of the elected membership of the City Council
and approved by the Mayor at its meeting held on February 2, 2015.
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:
Changes from Adopted Budget:

General Fund Revenue:
Charges for Services

Other Revenue
Appropriated Fund Balance
35,492 Prior Year Stormwater Management and Critical Areas

project balances
288,750 135,647 Grant for network backup appliance; 88,393
Homeland Security grants; 25,675 Hazardous Materials
grant; 4,302 Violence Against Women grant; 34,733
prior year grant balances brought forward
(255,000) (200,000) reduction of estimate for Emergency Medical
Service billing; (55,000) Street and Inlet Lot parking
revenue estimates;
(50,000) Parking Fines
(26,350) (45,000) revenue estimate for Public Safety building
rental; 17,500 Paramedic Foundation donation; 950
Beach wheelchair donation; 200 miscellaneous donation
1,537,756 699,280 street paving project increase; 491,355 prior
year purchase orders; 66,000 Town's local match for
runway 14/32 repaving; 50,000 Additional funds for
Beach Patrol headquarters project; 40,400 Use of
Beautification donations for Convention Center water
feature; 43,429 advertising due from FY 14 formula;
58,066 FY 14 unspent TAB funds; 65,000 FY 14 funds for
painting and carpet at City Hall; 24,226 FY 14 funds for
Northside Park patio resurfacing
1,530,648
General Fund Expenses:

General Government
Public Safety

Highways & Streets
Economic Development - Tourism
Transfer to Airport
Transfer to Convention Center
Transfer to Vehicle Trust
Transfer to Capital Projects
52,037 Prior Year Purchase orders

187,672 231,222 Prior Year purchase orders; 135,647 grant for
network backup appliance; 88,393 Homeland Security
grants; 25,675 Hazardous Materials grant; 34,733 prior year
grant balances brought forward; 4,302 Violence Against
Women grant; 17,500 Paramedic Foundation donation; 200
miscellaneous donation; (350,000) savings in retiree
health insurance used to reduce budgeted revenue est.
109,095 101,311 Prior Year purchase orders; 13,816 Prior year
Critical Areas project balances; 65,000 painting and
(29,305) Sunfest Labor expenses; 500 transfer from
Highways and Streets; (42,227) savings in retiree health
(10,506) 1,370 Prior Year Purchase orders; (11,876) savings in
retiree health
1,504 29,337 Prior Year purchase orders; 21,676 prior year
Stormwater project balances; (12,693) Sunfest Labor
expenses; (500) transfer to Public Works/Beach
(36,316) savings in retiree health
198,614 47,357 Prior Year purchase orders; 49,762 Sunfest labor
expenses; 58,066 FY 14 unspent TAB funds; 43,429
advertising due from FY 14 funding formula
46,133 28,721 Prior Year purchase orders; 24,226 FY 14 funds for
Northside Park patio resurfacing; (7,764) Sunfest Labor
expenses; 950 Beach wheelchair donation
66,000 Town's local match for runway 14/32 repaving
40,400 Use of Beautification committee donations for Convention
Center water feature
90,419 Transfer to fully fund for FY 15
749,280 699,280 street paving project increase; 50,000 additional
funds for Beach Patrol headquarters
1,530,648
Water Fund Revenue:

Prior Year Reserves
111,168 Prior Year Encumbrances
Water Fund Expenses:

Personal Services
Capital Outlay
(16,000) Cover asbestos removal at 136th street storage building

(264,832) 111,168 Prior Year purchase orders; 16,000 asbestos
removal at 136th street storage building; (106,000) funding
of Well C redevelopment; (70,000) funding of 1st Street
Water tower; (170,000) funding of 16" water main on St.
Louis Avenue; (46,000) funding of standby generator at
38th Street well site
392,000 106,000 Well C redevelopment; 70,000 1st Street Water
Tower; 170,000 16" water main on St. Louis Avenue;
46,000 standby generator at 38th St. well site
111,168
Transportation Fund Revenue:

Train Revenue
Capital Asset Sales
Prior Year Reserves
7,416 Cover Tram rooftop display

1,721,790 2,626,290 Prior Year MTA/FTA grant balances; (904,500)
reduction in FY 15 anticipated MTA/FTA grants
33,052 Funds from sale of assets purchased with MTA/FTA funds
used to purchase vehicle diagnostic software
292,068 291,810 Local match for prior year MTA/FTA grants;
258 Prior year purchase orders
2,054,326
Transportation Fund Expenses:

Capital Outlay
218,551 112,325 Prior year MTA/FTA grant balances; 102,000 retain

FY 15 local match to fund building maintenance; 33,052
diagnostic software; 13,500 MTA/FTA funding for money
counter preventative maintenance projects; 7,416 Tram
rooftop advertising display; 258 prior year purchase
orders; (50,000) reduce FY 15 grants to actual
1,835,775 2,805,775 prior year MTA/FTA grant balances; (873,000)
Reduce FY 15 grants to actual; (97,000) transfer FY 15 local
match to operations to fund building maintenance
2,054,326
Wastewater Fund Revenue:

Service Charges
Prior Year Reserves
101,593 Additional revenue from Service to West Ocean City to

fund Effluent Disinfection System project
728,762 295,000 Effluent Disinfection System project; 215,000
Electrical Relocation project; 218,762 Prior Year
purchase orders
830,355
Wastewater Fund Expenses:

Capital Outlay
145,116 Prior Year purchase orders

685,239 396,593 Effluent Disinfection System project; 215,000
Electrical Relocation project; 73,646 Prior Year purchase
orders
830,355
Airport Fund Revenue:

Transfer - In From General Fund
Prior Year Reserves
66,000 Runway 14/32 Repaving approved by Council 10/14/14.

86,784
Airport Fund Expenses:

Capital Outlay

66,000 Runway 14/32 Repaving project
86,784
Golf Course Fund Revenue:

Prior Year Reserves
Golf Course Fund Expenses:

Convention Center Fund Revenue:

40,400 Beautification committee donations for water feature at

Convention Center
832 Prior Year purchase orders
41,232
Prior Year Reserves
Convention Center Fund Expenses:

Capital Outlay

40,400 Water feature funded by Beautification committee
donations
41,232
Information Technology Fund Revenue:

Prior Year Reserves
Information Technology Fund Expenses:

Service Center Fund Revenue:

Service Charges to Other Funds
Prior Year Reserves
(400,000) Reduction of Fuel revenue estimate

(374,363)
Service Center Fund Expenses:

Personal Services
(71,000) Retirement contributions

(303,363) (329,000) Purchases for resale - fuel; 25,637 Prior Year
purchase orders
(374,363)
Vehicle & Equipment Trust Fund Revenue:

Prior Year Reserves
255,427 Prior Year encumbrance for ambulance purchase

90,419 Transfer to fully fund for FY 15
Vehicle & Equipment Trust Fund Expenses:

Capital Outlay
345,846 255,427 Ambulance purchase order brought forward from

FY 14; 90,419 transfer to fully fund vehicle purchases
Risk Management Trust Fund Revenue:

Prior Year Reserves
Risk Management Trust Fund Expenses:

General Capital Projects Fund Revenue:

25,000
25,000
2,321
75,000
749,280
876,601
Pervious pavement on 3rd street (St. Louis Ave project)

Pervious pavement on 3rd street (St. Louis Ave project)
Owner reimbursable repairs
OCDC Funding of Phase II decorative street lights
699,280 Street Paving; 50,000 Beach Patrol headquarters
General Capital Projects Fund Expenses:

St. Louis Avenue
Street Paving
125,000 50,000 3rd Street pervious pavement; 75,000 Phase II

decorative lighting
701,601 699,280 General Fund contribution; 2,321 sidewalk
installation owner reimbursement
50,000 General Fund contribution
876,601

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MAYORANDCITYCOUNCIL

WORK SESSION -MAYOR AND CITY COUNCIL

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

Tuesday, February 10, 2015 12:00 p.m.

AUTHORITY: State Government Article: Section 10-508(a) Annotated Code of Maryland

REPORT OF CLOSED SESSION

WORK SESSION -MAYOR AND CITY COUNCIL

WORK SESSION -MAYOR AND CITY COUNCIL

VEHICLE VENDING FRANCHISE

Georgeos Water Ice, Inc.

2015 Vehicle Vending Franchise Bid Form

Sec. 39-501. - Title.

Sec. 39-502. - Definitions.

Sec. 39-503. - Violations and penalties.

Sec. 39-504. - System established; franchise conditions; award of franchise.

Vending shall be prohibited at the convention center and at Northside Park.

The term of the franchise shall be four years.

Sec. 39-506. - Termination of franchise; revocation of franchise.

Sec. 39-507. - Prohibited acts.

WORK SESSION -MAYOR AND CITY COUNCIL

The White Marlin Capital of the World

February 10, 2015

The Honorable Mayor, Council President and Members of Council

Brian Polark of the National Volleyball League (NVL) would like to

Beach volleyball tournament with sponsor activations, music,

Private Event Fee revenue is $1,100.00 comprised of $100

Approve the event as presented.

No staff alternatives suggested

Lisa Mitchell, Private Event Coordinator

May 2015 Calendar

Ocean City Private Events

New Event: YES

Date of Event: May 28-31, 2015

Application Fee Paid: Invoiced

Date Returned from All Departments: January 26, 2015

Private Event Fees: $1,100.00

Comments from Department Representatives:

Date on Council Agenda: February 10, 2015

NATIONAL VOLLEYBALL LEAGUE OCEAN CITY OPEN

5. Parking on either streets or parking lots

WORK SESSION -MAYOR AND CITY COUNCIL

The White Marlin Capital of the World

February 10, 2015

The Honorable Mayor, Council President and Members of Council

2015 Ocean City Bike Fest

Potential positive economic impact from lodging, food and beverage,

Approve the event as presented in the MOU.

No staff alternatives suggested.

Lisa Mitchell, Private Event Coordinator

TOWN OF OCEAN CITY

1. Purpose. This Memorandum of Understanding (MOU) defines the terms by which OC

p. OC Bikefest is permitted to loadin at the Inlet Lot on Monday thru

p.m. to 5:00 p.m., subject to approval of the Worcester County Board of

Town of Ocean City

Asset Rate Schedule - Events

Special Events Division

# of Days Qty Used

TOTAL RAW COST

Town of Ocean City Confidential

WORK SESSION -MAYOR AND CITY COUNCIL

The White Marlin Capital of the World

February 10, 2015

The Honorable Mayor, Council President and Members of Council

Request Councils approval to solicit proposals for foodservice at