April 9 2013 Complete Agenda

7/28/2019 April 9 2013 Complete Agenda

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MAYORANDCITYCOUNCILWORKSESSION

Tuesday,April9,20131:00P.M.

AClosedSessionisscheduledfrom11:00A.M.1:00P.M.todiscusslegal,contractualandpersonnelmatters.

AGENDA

1. CALLTOORDER2. REPORTONCLOSEDSESSIONApril9,201311:00a.m.1:00p.m.3. COMMENTSFROMTHEPUBLIC

AnypersonwhomaywishtospeakonamatterscheduledfordiscussionontheWorkSessionAgendamaybeheardduringCommentsfromthePublicforaperiodofthree(3)minutesorsuchtimeasmaybedeemedappropriatebytheCouncilPresident. Anyonewishingtobeheardshallstatetheirname,addressandtheAgendaitemonwhichheorshewishestospeak.

4. NEWBUSINESSA. BidOpeningTransitAdvertising

B. HighTideMusicFestivalUpdateandRequestforuseoftheInletLotpresentedbyTomRussell

andKenMacDonaldofFoundersEntertainment

C. CityEngineerBidAwardRecommendationforStorageAreaNetworkAppliancesandServer

Equipment

D. TransportationSuperintendentRequesttoPurchaseBusSpareParts

E. Considerationofproposaltoprovidecredit/debitcardpaymentoptionforbuscustomers

presentedbytheFinanceAdministrator

F. PublicWorksDirectorDiscussionofTerminatingTransportationDiscountCouponBooklets

G. PublicWorksDirectorRequesttoFundAVLHardware/SoftwareforBusFleet

H. PublicWorksDirectorRequesttoallocatefundsforHumaneSocietyBuildingRepairs

I. SecondReadingOrdinance201307toAmendChapter30EntitledEnvironment(imposes

residentagentrequirementaspartofaplanforcomplianceforrentalpropertieswithnoise

violations)

J. PresentationofFY14FinancialOperatingPlanbyCityManagerDavidRecor,ICMACM

5. ADJOURN


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WORK SESSION -MAYOR AND CITY COUNCIL

TUESDAY, APRIL 9, 2013

2. Report on Closed Session Tuesday, April 9, 11:00 a.m. - 1:00 p.m.

Legal, Contractual and Personnel Matters


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

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

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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 business3. To consider the acquisition of real property for the public purpose and matters

directly related thereto;4. Consider a matter that concerns the proposal for a business or industrial

organization to locate, expand or locate in the state;5. Consider the investment of public funds;6. Consider the marketing of public securities;

X 7. Consult with counsel to obtain legal advice;

8. Consult with staff, consultants or other individuals about pending or potentiallitigations;9. Conduct collective bargaining negotiations or consider matters that relate to the

negotiations;10. Discuss public security if the public body determines that public discussion

would constitute a risk to the public or public security, including;a) the deployment of fire and police services and staff; andb) the development and implementation of emergency plans

11. Prepare, administer or grade a scholastic, licensing or qualifying examination;12. Conduct or discuss an investigative proceeding on actual or possible criminal

conduct;

13. Comply with a specific constitutional, statutory or judicially imposedrequirement that prevents public disclosures about a particular proceeding ormatter; or

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14. Before a contract is awarded or bids are opened, discuss a matter directly relatedto a negotiation strategy or the contents of a bid or proposal, if public discussionor disclosure would adversely impact the ability of the public body to participatein the competitive bidding or proposal process

DATE AND TIME: Tuesday, April 9, 2013 11:00 a.m.PLACE: City HallSUBJECT: Legal, Contractual and Personnel MattersVOTE: UNANIMOUS

OTHER: FOR:AGAINST:ABSTAIN:ABSENT:


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REPORT OF CLOSED SESSION

OF THE MAYOR AND CITY COUNCIL OF OCEAN CITY

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

April 9, 2013, a closed session was held on Tuesday, April 9, 2013 at 11:00 a.m.

The following is a report of the closed session.

1. A statement of the time, place, and purpose of the closed session is attached.

2. A record of the vote of each member as to closing the session is attached.

3. A citation of the authority under the law for closing the session is attached.

4. (a) Topics of Discussion: Legal, Contractual and Personnel Matters

(b) Persons present:

Mayor Richard MeehanCity Manager David RecorCouncil President Lloyd MartinCouncil Secretary Mary KnightCouncil Members Doug Cymek; Brent Ashley; Dennis Dare; Margaret Pillas

and Joe MitrecicCity Solicitor Guy AyresActing Chief Captain Mike ColbertLt. Elton HarmonPublic Works Director Hal AdkinsConvention Center Director Larry NoccolinoHuman Resource Director Wayne EvansExecutive Office Associate Diana Chavis

Action(s) taken:

Motion to close meeting:

Time closed:

H:\Wpdoc\closedsess.wpd


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3. COMMENTS FROM THE PUBLIC

Any person who may wish to speak on a matter scheduled for discussion on the Work

Session Agenda may be heard during Comments fromthe Public for a period of three (3)

minutes or such time as may be deemed appropriate by the Council President. Anyone

wishing to be heard shall state their name, address and the subject on which he or she

wishes to speak.


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4. NEW BUSINESSA.Bid Opening Transit Advertising (Remand to Staff)


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BIDDER LIST

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

Proposals due to City Managers Office by 11 AM on April 9, 2013.Proposals recognized by Mayor & City Council on April 9, 2013 at 1 PM Work Session.

VENDOR NAME PROPOSAL RECEIVED (Y/N)

Barron Marketing Communications

Blue Line Media

Burrelle's Luce Media Moniroing Services

CBS Outdoor

Cheseldine Management Consulting, LLC

Choice Marketing and Design

Clear Channel Outdoor

Direct Media USA

Fathum, Inc.

Gateway Outdoor Advertising

GoPlus1

Inkball Graphics

Kastle Media Group, Inc.

Lee Marketing and Advertising Group

Prime Vendor

Pure Advertsing LLC

Sayin' It Loud, LLC

Sgnify

Tailored Marketing, Inc.

Tendering Authority


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TOWN OF OCEAN CITYDEPARTMENT OF PUBLIC WORKS

TRANSPORTATION DIVISION

REQUEST FOR PROPOSALS (RFP)

OCEAN CITY TRANSPORTATION5 YR. VEHICLE ADVERTISING

The Mayor and City Council of Ocean City, Maryland is accepting proposals for a five (5) year VehicleAdvertising contract. Whereas, the Town owns and operates a public transit system, known as OceanCity Transportation (OCT) and will make available for use by the awarded Vendor interior and/orexterior forms of advertising space on approximately forty-seven (47) forty-foot (40) Coastal Highwayfixed-route public transit buses, two (2) origin-to-destination Para Transit mobility vans, one (1)Medical Appointment mobility van and twenty-four (24) Boardwalk Tram roof tops. The awardedVendor will be responsible for all aspects of vehicle advertising, including, but not limited to,management of advertising inventory, sales, collections, remittance, production, installation,maintenance and removals. Additionally, the awarded Vendor will also be subject to terms, conditionsand provisions set forth in the OCT 5 Yr. Vehicle Advertising RFP and Agreement.

OCT 5 Yr. Vehicle Advertising RFP is available at:

Public Works Administration OfficesDepartment of Transportation

206 65th Street, Building EOcean City, Maryland 21842

Contact person is:

Mr. Brian Connor, Assistant SuperintendentOcean City Transportation

Email: [email protected]: 410-723-2174

Completed proposals must be submitted to the Office of the City Manager, located at 301 Baltimore

Ave., Ocean City, Maryland 21842, by no later than11:00 a.m. on Tuesday, April 9, 2013. Proposalswill be opened at the City Council Work Session at 1:00 p.m. that same day. Respondents are welcometo attend but need not be present. Submission of proposals by certified Disadvantage BusinessesEnterprises (DBEs) are encouraged.


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Town of Ocean City

Request for Proposals (RFP)

Ocean City Transportation (OCT)

5 Year Vehicle Advertising Contract

Proposals Due:

Prior to 11:00 AM on Tuesday, April 9, 2013

Mayor and City Council

C/O City Manager

301 Baltimore Avenue

Ocean City, MD 21842


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RFP - OCT 5 Year Vehicle Advertising Contract


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INFORMATION FOR VENDORS

PROPOSALS will be received by the Mayor and City Council of Ocean City(herein called Town), at the Office of the City Manager, City Hall, 301 Baltimore Ave,

Ocean City, Maryland during normal business hours prior to 11:00 AM, Tuesday, April9, 2013 and then opened and read aloud at the Work Session that day.

Each PROPOSAL must be submitted in a sealed enveloped, addressed to TheMayor and City Council of the Town of Ocean City, Maryland. Each sealed envelopecontaining a PROPOSAL must be plainly marked on the outside as:

RFP OCT 5 YEAR VEHICLE ADVERTISING CONTRACT

And the envelope should bear on the outside the name of the RESPONDER, hisaddress, and the name of the project for which the RESPONSE is submitted. If forwarded

by mail, the sealed envelope containing the RESPONSE must be enclosed in anotherenvelope addressed to the Town of Ocean City, City Managers Office, P.O. Box 158,Ocean City, Maryland 21843.

PROPOSALS

PROPOSALS shall be comprised of the following documents: AGREEMENT;QUALIFICATIONS; FEDERAL ASSURANCES AND CERTIFICATIONS; andADDENDUMS / QUESTION & CLARIFICATIONS. A REVIEW COMMITTE willevaluate each PROPOSAL, assign points to each section based on scope, depth,

completeness, accurateness and or competitiveness of VENDOR responses and will makefinal recommendation for AWARD. Failure by VENDOR to submit any portion ofrequested information may result in rejection of the PROPOSAL.

Provisions of the SCOPE of the RFP are contained in INFORMATION FORVENDORS and AGREEMENT sections. Information obtained from an officer, agent, oremployee of the TOWN or any other person shall not affect the risks or obligationsassumed by the VENDOR or relieve him from fulfilling any of the conditions of theAGREEMENT or other required sections.

The TOWN shall provide to VENDOR prior to submission of PROPOSAL accessto information that is pertinent to and or delineates or describes the scope of the RFP.After PROPOSALS have been submitted, the VENDOR shall not assert that there was amisunderstanding concerning the nature of the SCOPE OF WORK to bedelivered/performed.

The TOWN may make such investigations as it deems necessary to determine theability of the VENDOR to perform the WORK and the VENDOR shall furnish to theTOWN all such information and data for this purpose as the TOWN may request.


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The TOWN reserves the right to reject any PROPOSAL if the evidence submittedby, or investigation of, such VENDOR fails to satisfy the TOWN that such VENDOR isproperly qualified to carry out the obligations of the AGREEMENT and to complete theWORK contemplated therein. Conditional offers will not be accepted.

The TOWN may waive any informalities or minor defects or reject any and allPROPOSALS. Any PROPOSAL may be withdrawn prior to the above scheduled time forthe opening of PROPOSALS or authorized postponement thereof. Any PROPOSALreceived after the time and date specified shall not be considered. No VENDOR maywithdraw a PROPOSAL within sixty (60) days after the actual date of the openingthereof. Should there be reasons why the AGREEMENT cannot be awarded within thespecified period, the time may be extended by the TOWN. It is the intent of the TOWNto award the AGREEMENT within sixty (60) days of the actual opening.

PROPOSAL INSTRUCTIONS & REQUIREMENTS

Part I: AGREEMENT (45 points)

VENDOR is required to complete the AGREEMENT, denoted as pages 6 thru 10,with VENDOR signature on page 10. As part of the AGREEMENT, VENDOR shallindicate compensation to the Town. All blank spaces for percentages (%) must be filledin, in ink or type written. Points shall be assigned to AGREEMENT based oncompleteness and competitiveness of VENDOR responses. Failure to submit theAGREEMENT may result in rejection of the PROPOSAL. Total points possible forPART I: AGREEMENT is forty-five (45) points.

Part II: QUALIFICATIONS (45 points)

In addition to the AGREEMENT, VENDOR is required to also submit informationpertaining to QUALIFICATIONS. Responses shall provide evidence that:

(1)VENDOR has been primarily engaged in the administration, management,solicitation, sale, production, installation and maintenance of Advertising onpublic transit buses or similar type vehicles for a minimum of three consecutiveyears. Points possible: twenty (20);

(2)VENDOR has a record of good standing pertaining to the provision of theaforementioned services over the last three years. VENDOR shall be required tosubmit a minimum of three (3) references. Points possible: fifteen (15);

(3)VENDOR is the best qualified to perform requested services and will providethe best value to the Town. Points possible: ten (10).

Points shall be assigned to VENDOR QUALIFICATIONS based on scope, depth,and accurateness of VENDOR responses, as well as substantiated evidence of


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VENDORS qualifications and experience. Failure by VENDOR to respond to any


portion of requested information pertaining to VENDOR QUALIFICATIONS may result

in rejection of the PROPOSAL. Total points possible for QUALIFICATIONS is fortyfive (45) points.

Part III: FEDERAL ASSURANCES AND CERTIFICATIONS (10 points)

In addition to the AGREEMENT and QUALIFICATIONS, VENDOR is alsorequired to review, complete and sign FEDERAL ASSURANCES ANDCERTIFICATIONS. These documents, found on pages 11 thru 43, are considered part ofthe PROPOSAL. Failure to complete, sign and submit required information may result inrejection of the PROPOSAL. Total possible points for FEDERAL ASSURANCES ANDCERTIFICATIONS is ten (10) points.

Part IV: ACKNOWLEDGEMNT OF QUESTIONS & CLAIFICATIONS (0 Points)

In addition to the AGREEMENT, QUALIFICATIONS, FEDERALASSURANCES AND CERTIFICATIONS, VENDOR is also required to review, signand submit acknowledgement of QUESTIONS & CLARIFICATONS associated withOCT 5 Year Vehicle Advertising RFP. These are considered part of the PROPOSAL.Failure to sign and submit these documents may result in rejection of the PROPOSAL.Previous QUESTION & CLARIFICATIONS are found on pages 44 - 46. Total possiblepoints received for submission of QUESTIONS & CLARIFICATIONS is zero (0).

PROPOSAL EVALUATION

Following receipt of PROPOSALS by Mayor and City Council, PROPOSALS willbe remanded to Staff for further review and evaluation by a designated REVIEWCOMMITTEE. The REVIEW COMMITTEE will be comprised of three (3) individuals:Town of Ocean City Director of Tourism, Transportation Superintendent andTransportation Assistant Superintendent.

The REVIEW COMMITTEE will evaluate PROPOSALS and assign points topertinent sections based criteria set forth in INFORMATION FOR VENDORS. Uponcompletion of EVALUATIONS the REVIEW COMMITTEE will identify andRecommend For Award the most responsive and responsible VENDOR whosePROPOSAL represents the Best Value to The Town.

Best Value will be determined by the depth, scope, accurateness and orcompetitiveness of VENDOR responses, qualifications and experience. If, afteridentifying a short list of


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the most qualified VENDORS, and in the event a clear determination of recommendation

for award is not arrived at, VENDORS may be requested to clarify their proposals bymaking individual presentations to the REVIEW COMMITTEE. After which, theREVIEW COMMITTEE may at its own discretion enter into negotiations with thoseVENDORS and invite best and final offers. Final recommendation for award will bedetermined by the REVIEW COMMITTEE. VENDORS are strongly advised not toprepare their PROPOSALS based on any assumption or understanding that

negotiations will take place. VENDORS are advised to respond to this RFP fully and

with forth-rightness at the time of submission.

VENDOR AWARD

The TOWN, following Notification of Award and within thirty (30) days of receiptof acceptable AGREEMENT signed by the party making the AGREEMENT, shall signthe AGREEMENT and return to such party an executed duplicate of the AGREEMENT.Should the Town not execute the AGREEMENT within such period, the VENDOR may,by WRITTEN NOTICE, withdraw his signed AGREEMENT. Such notice of withdrawshall be effective upon receipt of the notice of the Town.

All applicable laws, ordinances, and the rules and regulations of all authoritieshaving jurisdiction over the AGREEMENT shall apply to the contract throughout.

QUESTIONS and CLARIFICATIONS

Any questions or clarifications pertaining to this RFP are to be directed to:

Mr. Brian ConnorAssistant Superintendent of Transportation

204 65th Street - Building EOcean City, MD 21842

Telephone: 410-723-2174Fax: 410-723-1832

Email: [email protected]

All VENDOR questions and requests for clarifications must be submitted inwriting prior to 4pm on Monday, March 25, 2013, ten (10) business days prior to duedate of RFPs. Answers will be provided in written format and will be shared with allknown RFP holders. The Town will provide responses no later than 4pm on Friday,March 29, 2013, six (6) business days prior to due date of RFPs.


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AGREEMENT

THE AGREEMENT shall be between the Awarded Vendor (hereinafter referredto as Vendor.) and The Mayor and City Council of Ocean City, MD (hereinafterreferred to as The Town), a municipal corporation of the State of Maryland.

WHEREAS, The Town operates a Public Transportation system, being partiallyfunded with Federal and State assistance, and will make available for the use by Vendorinterior and or exterior forms of advertising space on forty seven (47), forty foot (40)Coastal Highway fixed-route buses, eight (8) spare forty foot (40) fixed route buses,and two (2) Para Transit Vans. The Town also operates additional vehicles with noFederal or State assistance and will make available for use by Vendor exterior and orinterior advertising space on one (1) Medical Appointment Transportation Van andtwenty four (24) Boardwalk Tram roof tops.

WHEREAS, theVendordesires to manage all aspects of the sale and service ofadvertising space on the aforementioned vehicles and The Town has agreed to the use ofsaid space, subject to all conditions, terms and provisions set forth in Information forVendors and Transportation Advertising Agreement. The advertising mediums areincluded in this agreement. (SEE INVENTORY LIST ATTACHED HERETO ASEXHIBIT A, PP. 47 - 48)

NOW THEREFORE, that for and in consideration of the promises, and thefaithful performance and observance of the mutual covenants and agreements hereinafterset forth, the parties hereto do hereby covenant and agree:

TRANSPORTATION ADVERTISING AGREEMENT

A. PAYMENT:1. Vendor will provide a lease payment to The Town as follows:

a. Year 1, ____ % of net revenue*b. Years 2 and 3, ____ % of net revenue*c. Years 4 and 5, ____ % of net revenue*

The percentage of net revenue should be no less than 45% the first year, no lessthan 55% in years two and three, and no less than 60% in years four and five.

Lease payments are payable monthly, to be paid within 45 days of closing the

monthly billing.

* Net revenue is defined as Gross Advertising space revenue minus an agencycommission of ___ %, but does not include any recoupment of production costsfrom Advertiser by Vendor. On a Bi-Annual Basis, adjustments will be made forchronic late paying advertisers and for invoices deemed uncollectible.

B. LEASE TERM:


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1. A five (5) year lease term to begin on September 01, 2013 and expireon September 1, 2018. With consent and approval of the Town thelease term may be extended for up to two (2) years.


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AGREEMENT

C. TERMS:1. Vendor shall have exclusive management of all advertisement materials placed on

vehicles listed in Exhibit A.

2. The Town may reserve for its use 18% of available advertising inventory and TheTown will be responsible for the cost of production on said of inventory. Vendor willpost and maintain all advertisements provided by The Town. Use of this inventory byThe Town is limited to self-promotion and/or advertising sold by Vendor unlessotherwise mentioned in this proposal prior to award of this contract. If unused, TheTown may provide all or part of the inventory to Vendor for sale.

3. The saleable inventory is reserved to forty-seven (47) forty-foot Coastal Highwayfixed route buses, two (2) ADA Para Transit Vans, one (1) Medical Appointment

Transportation Van and twenty-four (24) Boardwalk Tram roof tops. Additionally, upto eight (8) forty foot Coastal Highway fixed route spare buses may also be madeavailable. If the available fleet is expanded, sale of said advertising space will bemade available. Availability of saleable inventory may be subject to change.

4. Vendor shall pay all expenses that affect the sale of the advertisements such as;design, production, delivery, installation, replacements, removal, and restoration ofthe vehicle to its original condition. The Town will not permit the advertisement toremain on a vehicle beyond the term of the contract between the Advertiser andVendor, and therefore Vendor will be required to remove any and all evidence of theexpired advertisement within thirty (30) days of date of expiration. If the removal of

any advertisement, such as, but not limited to, vinyl adhesive applications, cause thesurface of the vehicle to be defaced, paint to delaminate or other damages to thevehicle that are not subsequently covered again, Vendor will perform such repairs orpaint to restore the vehicle to its original condition.

5. The Town shall provide information that the Vendor may need and request to assist inselling the advertising.

6. The Town will allow Vendor reasonable access to the reserved fleet foradvertisements. The Town will provide Vendor with fleet summaries as required.


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AGREEMENT

7. Vendor shall not display the following advertising:a. False, misleading or deceptive;b.

Sexually explicit or obscene;c. Violent in nature or illegal;

d. Tobacco;e. Gambling (except The Casino at Ocean Downs, located at 10218 Racetrack

Road, Berlin, MD 21811, and the Maryland Lottery);f. Alcohol will only be allowed as a public service/message (subject to the

expressed approval of The Town);

8. The Town shall be provided a copy of all proposed advertisement for review andapproval prior to actual installation. Such review places no liability what so everupon The Town for any grammatical errors that may be overlooked. If such errors

are discovered after installation of the advertisement, Vendor shall correct the error attheir sole expense.

9. Any proposed advertising that will project into and cover any portion of windowsshall receive prior approval from the City Manager. No types of advertisements are tobe displayed or adhered to the frames surrounding the vehicle window frames.

10.With each advertisement copy sold, Vendor shall submit to The Townwarranty/literature documentation specifically referencing the life expectancy (i.e.specific to color retention and product adherence vehicle) of the material beingsupplied. Vendor shall limit the sale of the advertisement contract so as not to exceed

the life expectancy of the material without written permission from the Town ofOcean City.11.All advertising contracts are to be current at all times and payments to The Town

should not be in arrears.

12.All rates, prices, terms, conditions and executed contracts between the Advertiser andVendor shall be provided to The Town.

13.The Vendor shall not enter into any contracts that extend beyond a twelve (12) monthtime period following the expiration date of the Agreement with The Town. For thepurpose of contracts with advertisers, the expiration date of the Agreement is thedate that the Agreement with The Town will end. At the Vendors written request theTown may consider advertiser contract option renewal periods that extend beyond thetwelve (12) month time period following the expiration date of the VendorsAgreement with The Town.


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AGREEMENT

14. Following the assignment and transfer of the Agreement, after either expiration ofthe Agreement (September 1, 2013) or for Termination For Convenience, the

awarded Vendor shall pay to the Town and incumbent Vendor sixty percent (60%)and twenty percent (20%) respectively of all gross income received from previouslyestablished contracts with effective performance period not to exceed November 1,2014. Following the assignment and transfer of the contracts after Termination forDefault, the Vendor shall pay the Town sixty percent (60%) and make no payment tothe incumbent Vendor for the unexpired period of those contracts. The addition ordeletion of applicable contracts may be subject to change. See Exibit B on page 49of the RFP for number and value of unexpired contracts.

D. NONDISCRIMINATION: Vendor agrees not to discriminate in any manner against anyemployee or applicant for employment because of political or religious opinion or affiliation,

race, creed, sex, color, age or national origin.E. INDEMNIFICATION: Vendor agrees that it will, at all times, indemnify, save harmless

and defend The Town from and against all loss, claims, demands, suits, judgments, damages,actions, costs, charges, and expenses, including reasonable attorneys fees which may, in anyway, arise out of or for which The Town may, in any way, become liable by reasons of anyliable, slander, defamation or invasions of privacy contained in or resulting from, theadvertisements, as well as, for any infringements of any copyrights, trademarks, or patentswhich may result from the exercise of the rights of the Vendor.

F. TERMINATION: The Town has the option to terminate the contract upon thirty (30) daywritten notice of warning if the following conditions are violated. Vendor will have thirty

(30) days after receipt of letter to correct or repair any problems. If problems continue topersist, a written thirty (30) day notice of termination will then be provided by The Town.

1. Advertising copy is continually in a deteriorated condition of neglect beyond normalwear and tear, and are not replaced within a reasonable time when necessary, unlesscaused by an Act of God or vandalism beyond Vendors control.

2. In the event bankruptcy were to occur, or a receiver or trustee is appointed for theVendor.

3. If after the second full season (November 1, 2015), less than 50% of the availableinventory designated for sale by Vendor has been sold.

4. If Vendor defaults in making any of the payments required and on a timely basis (seesection A).


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AGREEMENT

5. Vendor will have the option to terminate following the same guidelines identified inparagraph F, if the following condition is violated: Advertisements are continually

damaged through cleaning, maintenance or vandalism of transit inventory, resultingin excessive expense for the Vendor.

G. All terms of this agreement shall be covered by and construed in accordance with the laws ofMaryland, applicable to agreements made and to be performed in Maryland.

H.The agreement shall inure to the benefit of and shall be binding upon the successors andassigns of the parties.

IN WITNESS WHEREOF, Owner and Vendor have signed this Agreement in duplicate. Onecounterpart each has been delivered to Owner and Vendor. All portions of the Agreement have been

signed and identified by Owner and Vendor or on their behalf.

This Agreement will be effective on September 1, 2013 (which is the Effective Date of the Agreement).

OWNER: VENDOR:

___________________________ ______________________________

By: ________________________ By: ___________________________

(CORPORATE SEAL) (CORPORATE SEAL)

___________________________ ______________________________

Attest Attest___________________________ ______________________________Title Title

Address for giving notices: Address for giving notices:

___________________________ ______________________________

___________________________ ______________________________

License No.:____________________(Where Applicable)

Agent for service or process:___________________________________________(If Vendor is a corporation or a partnership attach evidence of authority to sign.)


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4. NEW BUSINESSB. High Tide Music Festival Update and Request for use of the

Inlet Lot presented by Tom Russell and Ken MacDonald of

Founders Entertainment


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P.O. BOX 158 OCEAN CI TY, MARYLAND 21843-0158 City Hall (410) 289-8221 FAX ( 410) 289-8703

TOWN OF

The White Mar lin Capital of the World

Agenda Item # 4B

Council Meeting April 9, 2013

TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Lisa Mitchell, Private Events CoordinatorRE: Founders Music FestivalDATE: April 3, 2013

ISSUE(S): Update on the High Tide Music Festival and consideration to rentthe Inlet Parking Lot.

SUMMARY: Tom Russell and Ken McDonald will provide an update on theHigh Tide Music Festival. A memorandum is attached detailingprevious presentations and actions pertaining to this event.

Tom Russell is also requesting the Town consider renting theentire Inlet Lot for May 30-June 1, 2014. FoundersEntertainment is prepared to pay the Town of Ocean City theaverage earned income over the past five (5) years for use ofthose parking spaces.

FISCAL IMPACT: Founders Entertainment is estimating a $20 million economicimpact to Ocean City.

Average Inlet Lot Revenue for the Friday, Saturday and Sunday

after Memorial Day from 2008-2012: $40,543.26.

RECOMMENDATION: Due to limited parking in the downtown area, recommend partialrental (100-200 spaces) of the Inlet Lot so both concert-goersand visitors who are not attending the event will be able toutilize it.

ALTERNATIVES: Approve request as presented.Do not approve any rental of parking spaces for the event.

RESPONSIBLE STAFF: Lisa Mitchell, Private Events Coordinator

COORDINATED WITH: Appropriate staff, including Special Events, Public Works, BeachPatrol, and Police

ATTACHMENT(S): 1) Memorandum noting event background information2) Founders Entertainment PowerPoint Presentation3) Founders Draft MOU


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MEMORANDUM

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

FROM: Lisa Mitchell, Private Event Coordinator

DATE: April 3, 2013

RE: Founders Entertainment High Tide Music FestivalSummary of Previous Presentations and Council Actions

October 17, 2011: Tom Russell requested approval to hold the Founders Entertainment MusicFestival on Saturday and Sunday, June 2-3, 2012, on the beach in Ocean City. Key points in theapplication were as follows:

Site location on the beach north of the pier to 2nd Street. Time of the event: 11 am until 12 am. The event would consist of four (4) performance stages, sponsor activations, non-sponsored activities/games and interactive art installations, food and beverage, including

alcohol, and craft concessions and other traditional festival elements (VIP areas,bathrooms, etc.).

Production team would be permitted vehicular access to the beach in order to build,service and break down the event site.

Vehicles would enter through the Inlet Lot or through another location of the townschoosing.

The coordinators would reserve and pay for a section of the Inlet Lot for eventproduction, much like the Dew Tour. Would also like to consider reserving some spacesin the Inlet Lot for VIP parking passes.

Council approved the event with the following stipulations:

The event will end nightly at 10 pm. Founders Entertainment will enter into a Memorandum of Understanding (MOU) with

the Mayor and Council.

Founders will satisfactorily compensate the affected Beach Equipment Franchises.


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March 5, 2012: Tom Russell requested a date postponement to June 1-2, 2013.

Council approved with the consent that Mr. Russell will appear before the Council in November2012 with an event update.

November 27, 2012: Tom Russell proposed the following requests/changes to the High TideMusic Festival:

The event would be a 3-day series of live country music on the beach, May 30 to June 1,2014, from 11 am until 11 pm Friday and Saturday, and 11 am until 10:30 pm on Sunday.

The site location would be minimized over 30% to span from Dorchester Street to 1st St. The number of stages would also be reduced from four (4) to two (2).

Mr. Russell stated he would make every attempt to minimize construction noise and stated aproduction schedule would be issued well before the event.

City Manager Recor reported that the MOU would address all points of concern, notifying allproperty owners, setting up at least 75 feet east of the concrete boardwalk and the productionschedule.

Council approved the request.


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DRAFT

1

TOWN OF OCEAN CITY

301 BALTIMORE AVENUE

OCEAN CITY, MARYLAND 21842

MEMORANDUM of UNDERSTANDINGBETWEEN

THE MAYOR AND CITY COUNCIL TOWN OF OCEAN CITY, MARYLAND

AND

TOM RUSSELL, FOUNDERS ENTERTAINMENT

SUBJECT: HIGH TIDE MUSIC FESTIVAL

As of 01/29/13

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

High Tide Music Festival shall be presented in 2014 and identifies what each party shallaccomplish and by what dates. The Private Event Application for the High Tide Music

Festival and all signed disclosures shall be incorporated into this MOU by reference.

2. Request for Permission to Conduct Event: Mr. Tom Russell of Founders Entertainment

(FE) approached the Town of Ocean City (TOC) with a Private Event Application

requesting permission to conduct the Hightide Music Festival 2014. This MOU follows and

incorporates an annual review of a Private Event Application by the City Staff and

approved by the Mayor and City Council.

3. Event Summary: This event is a 3-day, 2-music stage music festival set on Ocean Citys

beautiful beach north of Dorchester Street to 1st Street. The event will take place from3pm to 11pm on Friday, May 30, 2014, 1pm to 11pm on Saturday, May 31, 2014, and 1pm

until 10:30pm on Sunday, June 1, 2014. The festival will include art and craft vendors,

sponsor activations, and food and beverage concessions. This event is scheduled to proceed

rain or shine. There is no rain date.

4. Scope. This Memorandum of Understanding includes the planning, coordination and

execution of the High Tide Music Festival, and identifies tasks/responsibilities for each

party. This memorandum shall remain in force until terminated by either party.

5. Financial Agreement: The TOC shall provide no in-kind services to FE. FE will pay for

all services and equipment belonging to the TOC and used for this event. FE will give theTOC 7.5% of all food and beverage concessions from the promoters share of the revenue

after taxes and expenses, and $1 per every 3-day admission ticket sold, $0.66 per every 2-

day admission ticket sold, and $0.33 per every 1-day admission ticket sold.

6. The attached site diagram will be provided by FE no later than April 30, 2014 and shall

be a part of this MOU. Any changes made to the site after April 30, 2014 must be

approved by the City Manager.


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DRAFT

2

7. The following identifies the responsibilities of FE:

a. Set-up for the event begins at 3:00 pm on Monday, May 26, 2014 and

continues until 12 noon on Friday, May 30, 2014. Some parts of the site will

be constructed overnight. FE will provide a build schedule and work to

minimize noise between the hours of 12:00 midnight and 7:00 am. Vehicleguides will be used when back-up horns are deactivated.

b. Will place sand matting in the festival footprint on Sunday evening, May 25.

c. Will obtain the necessary tent permits from the Office of the Fire Marshal for

the TOC.

d. Will submit a detailed site plan of the High Tide Music Festival Grounds to

the Office of the Fire Marshal for the Town of Ocean City to review. This site

plan must indicate accesses to the Boardwalk, and the accesses and clearances

that will be maintained from any tents, displays, vehicles, stages and the like.

e. Will provide a detailed request for support and time line by January 15, 2014.

All requests and/or changes to the time line made after April 30, 2014 must be

approved by the City Manager.

f. All loading and unloading of construction items shall take place via

Dorchester Street and North Division Street. Parking or staging is not

permitted on these streets.

g. Will cover the Boardwalk with 24-feet wide plywood with beveled edges

for load in and load out at Dorchester and North Division Streets.

h. Will follow all Worcester County Liquor Control Board guidelines in order to

sell beer and wine at the event.

i. Will market the event with a regional focus, but national reach.

j. Will work with local media outlets (print, broadcast, internet, etc.) for event

coverage and feature stories.

k. Only authorized vehicles are permitted on the beach. Said vehicles will have

event placards to identify them as such.

l. Will fence the footprint while maintaining emergency access points.

m. Will provide portable toilets on the beach within the festival grounds, which

will be serviced appropriately.

n. Will provide all trashcan liners.

o. Will provide appropriate number of on-site security personnel during the

build, event and tear down.

p. The event headquarters will be located within the festival grounds.

q. Will provide a complete vendor list, including contact name, business name,

contact information and address, a minimum of 30-days prior to the event.

r. Will begin load out as soon as event ends. All equipment and event items must

be off the beach by Thursday, June 5, 2014.

s. Is responsible for all medical treatment/care within the footprint of the event;

this shall include the medical treatment of volunteers, spectators, talent and

staff. The sponsor is responsible for all medical transports to medical facilities

for medical emergencies that occur from within the footprint of the event.

t. Will utilize a section of the Inlet Parking Lot, Rows AA thru D, from Monday,

May 26, 2014 until Wednesday, June 4, 2014. Will reimburse the TOC for


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DRAFT

3

these 394 parking spaces. The amount to be reimbursed will be an average

earned income for the last five (5) years on the spaces used.

u. Will rent the entire Inlet Parking Lot from Friday, May 30, 2014 thru Sunday,

June 1, 2014 as parking for ticket holders. Will control who enters the Inlet

Lot during this time. Will allow pier workers and delivery trucks not involved

with the music festival access to the Inlet Lot as well. Any spaces not sold toticket holders by April 30, 2014 will be returned to the TOC.

v. May solicit, secure or change its sponsorships so long as it complies with the

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.

w. Will dispose of all trash within the festival grounds and maintain the

cleanliness of the beach within the festival grounds at all times. TOC will

provide an adequate number of dumpsters in which FE can dispose of trash.

x. Will provide the Certificate of Insurance (COI) to include coverage for

personal injury in the amount of $1,000,000.00 single limit, and name the

Mayor and City Council as additional insured. This certificate will be

provided to the Town of Ocean Citys Private Event Coordinator prior to the

issuance of this permit.

y. Will complete by March 1, 2014, a mutually amenable agreement with the

Beach Stand Operators within the area of Dorchester Street to 1st

Street. Will

also provide signage and maintain walkways for customers to reach these

Beach Stand Operators.

z. Will comply with the Ocean City Incident Action Plan requirements in the

event of inclement weather and will provide and maintain Ocean City Beach

Patrol (OCBP) direct access to the beach from Dorchester Street and along

the oceanfront.

aa. Will comply with all Federal, State, County and City statutes, ordinances and

codes.

bb. Will coordinate any radio use with the TOC Emergency Services.

8. The Town of Ocean City is responsible for providing:

a. TOC will provide FE a list of available support and price list by August 1,

2013.

b. Department of Public Works (DPW) will section off part of the Inlet Lot for

FE use from Monday, May 26, 2014 until Wednesday, June 4, 2014.

c. DPW will close the Inlet Lot for FE use from Friday, May 30, 2014 until

Sunday, June 1, 2014.

d. DPW will move the wooden walkways for ADA entrance.

e. DPW will provide and place metal trash barrels in the festival grounds. Will

provide dumpsters near the festival grounds.

f. In case of lightning, OCBP will clear the beach, including all festival vendors,

staff and spectators.


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DRAFT

4

g. OCPD will detail officers and supervisors for a special order for this event.

h. Ocean City Communications Manager will advertise this event on the website

and electronic marquees when space is available.

i. Tourism will post this event on the calendar of events website as well as

include it in upcoming e-blasts as space is available. Will include this event in

the distributed event sheet. If requested, will share media list, and direct newsmedia to FE for free publicity opportunities

j. TOC will provide a COI to FE.

9. This MOU shall remain in force until Thursday, June 30, 2014, unless sooner

terminated as provided herein.

10. Operational Security Provision: In the event of exigent circumstances arising during

the course of the High Tide Music Festival, the Town may, at its sole discretion, deploy or

divert such public safety personnel and resources as deemed necessary. In the event of an

emergency, the Town of Ocean City may cancel the event in the course of its emergency

procedures. In the event of inclement weather the parties, after consultation, may cancel

or postpone the event.

12. The Special Events Director of the TOC shall serve as the Towns Agent for the

planning, coordination and execution of the High Tide Music Festival. Mr. Tom Russell

shall serve as the agent for the High Tide Music Festival. Should any terms of this MOU

not be met, the TOC may terminate this agreement at its discretion.

13. This MOU is effective when signed below and may be terminated by either party at any

time.

14. In the event a dispute arises regarding this MOU which cannot be resolved by the

parties, the matter shall be submitted to mediation before commencement of litigation or as

agreed by the parties.

15. This MOU is not assignable by FE without the express written consent of the Mayor

and City Council of Ocean City, which consent may be withheld for any reason at the sole

discretion of the Mayor and City Council of Ocean City. Furthermore, should FE cease to

be associated with the Hightide Music Festival for any reason, the Mayor and City Council

may terminate this MOU.

16. No Partnership. This MOU does not create a partnership or any other business entity

or affiliation between the parties, other than to define the respective rights and obligations

of the parties as to the presentation of the Hightide Music Festival 2014.

17. Final Agreement. This MOU represents the final agreement between the parties

hereto, and shall only be amended or modified by written agreement between the parties.


28/84

DRAFT

5

Tom Russell

Co-President

Founders Entertainment

David L. Recor

City Manager

For the Mayor and City Council

Date___________________ Date___________________

Ken McDonald for Starr Hill Presents

Date___________________


29/84


30/84

EventOverview

EventLayout &Location

WhatTo Expect

Inlet LotFormal Request

Thank You!

Table of Contents


31/84

A 2-Stage music festival set on Ocean Citys beautiful beach

Event Dates: May 31st J une 2nd 2014

Site Capacity: 35,000 per day

Est. Attendance: 20,000-25,000 per day

Event Hours: 5/31: 3pm11pm, 6/1: 1pm-6/2: 1pm 10:30pm

Art, Craft Vendors, Sponsor Activations, and food & beveragcompliment the music

The programming formatof the festival has changed froma roca country music event

Target talent for the festival include nationally recognized typically play arenas and other large scale venues

Event Overview


32/84

Layout & Location

The current proposed layout of the festival spans fromDorchesStreet

The events perimeter fence will be approximately 100 feet offper the city ordinance

The events main entrance and exit is currently placed on theevent site, allowing ample roomfor cueing lines

There will be easy access to the beach via Dorchester Streeand other safety personnel

See detailed site map on next page for additional info on layou


33/84


34/84

What To Expect The festival will begin its build on Monday, May 26th (Memorial D

Flooring will be dropped on agreed upon & designated areas late

as per prior discussion and town approval Production vehicles will cross over the boardwalk onto the agreed upon hours, and all vehicles will have spotters and No after hours. Security will be placed atcrossover locations for safet

The event will feature food and beverage concessions, includingper prior discussion and town approval, and event promisesWorcester County laws

The town will receive 7.5% of all food and beverage concpromoters share of the revenue after taxes and expenses, and $admission ticket sold, $0.66 per every 2-day admission ticket soevery 1-day admission ticketsold


35/84

Inlet Lot Formal RequestThe event would like to use a section of the Inlet Lot, Rows AAvehicles fromMonday May26th until Wednesday J une 4th, 2014.

The event will reimburse the Town of Ocean City the average ethe past 5 years on the parking spaces used

The event would like to formally request the ability to upsell pathe Inlet Lot to event VIP attendees during event days

These spaces would be rented fromFridayMay 30th Sunday, Jsold via the event website and marketed as VIP Parking

Event promises to reimburse the Town of Ocean City the averaover the past 5 years on the parking spaces used

Any spaces not sold to VIP patrons by April 30th, 2014 would Town of Ocean City


36/84

Thank You!


37/84



4. NEW BUSINESSC. City Engineer Bid Award Recommendation for Storage Area

Network Appliances and Server Equipment


38/84

TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Terence J. McGean, City EngineerRE: Bid Award Network Storage ApplianceDATE: April 3, 2013

ISSUE(S): Additional storage required for Citys data network

SUMMARY: Bids for the network storage appliance were advertised oneMaryland Marketplace, and three (3) bids were received. The

low bid was from ePlus at $30,749.33; however, the budgetedamount was $25,000. Therefore, staff negotiated with the lowbidder to reduce the price to $25,506.71 by agreeing to do someadditional configuration work in-house.

FISCAL IMPACT: $25,506.71

RECOMMENDATION: Purchase the storage area network server appliance from ePlusin the amount of $25,506.71.

ALTERNATIVES: None

RESPONSIBLE STAFF: Terence McGean, City EngineerNancy Bloxom, Information Technology DirectorRob Morand, Converged Network Manager

COORDINATED WITH:

ATTACHMENT(S): Bid results and quotes

Agenda Item # 4C



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4. NEW BUSINESSD. Transportation Superintendent Request to Purchase Bus Spare

Parts


45/84

166 TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Brian Connor, Assistant Superintendent of TransportationRE: Bus Spare Parts (Bus Tires)DATE: March 29, 2013

ISSUE(S): Request to purchase bus tires

SUMMARY: The Transportation Department has been awarded grant fundingby the FTA and MTA to purchase bus spare parts. We identified

the need to purchase spare bus tires with these funds.Throughout the year, we find it necessary to purchasereplacement bus tires due to expected wear and tear. Readilyavailable spare tires minimizes downtime for buses and increasesefficiency at the service center.

FISCAL IMPACT: $5,185.27, approved in the budget

RECOMMENDATION: Approve purchase using grant funds.

ALTERNATIVES: None

RESPONSIBLE STAFF: Brian Connor, Assistant Superintendent of Transportation

COORDINATED WITH: Hal Adkins, Director of Public WorksGeorge Thornes, Superintendent of TransportationPam McMillian, Procurement SupervisorRon Eckman, Fleet Manager

ATTACHMENT(S): 1) Memorandum from Brian Connor2) MTA Letter of Concurrence

Agenda Item # 4D



46/84

Memorandum

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

From: Brian Connor, Assistant Superintendent of Transportation

Date: March 29, 2013

Subject: Purchase Bus Spare Parts, Bus Tires

On an annual basis, the Transportation Department submits the 5311 Grant Application

for Non-Urbanized Areas, the Annual Transportation Plan (ATP), and Americans withDisabilities Act Grant to the Federal and Maryland Transit Administrations. The grantapplications request full or partial funding of our transit system operating costs andcapital projects.

We requested and received grant funding for the procurement of bus spare parts. In aneffort to stock parts for immediate bus repairs and minimize downtime, we would like topurchase bus spare tires. The FTA/MTA funded this grant at 90% with a 10% localmatch. Based on a total project cost of $51,852.78, this project will cost the town$5,185.27.

Attached is a letter from the Maryland Transit Administration dated March 27, 2013,concurring with Ocean City Transportations request to purchase tires for its fleet oftransit buses.

I am seeking the approval of the Mayor and City Council to purchase the bus spareparts. I will be attending the Work Session on April 9, 2013. Should you have anyquestions, please feel free to contact me.

Cc: Hal Adkins, Director of Public WorksGeorge Thornes, Superintendent of TransportationPam McMillan, Procurment SupervisorRon Eckman, Fleet Manager


47/84


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4. NEW BUSINESSE. Consideration of proposal to provide credit/debit card

payment option for bus customers presented by the Finance

Administrator


50/84

TOWN OF

The White Marlin Capital of the World

Agenda Item# 4E


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

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

FROM: Martha J. Bennett, Finance Administrator

RE: Unsolicited Proposal for Pay-by-Phone for Bus Fares

DATE: April 2, 2013

ISSUE(S): Unsolicited proposal from Electronic Transaction SystemsCorporation (ETS) to develop a pay-by-phone option to beintegrated into our bus transportation.

SUMMARY: ETS has offered to develop a pay-by-phone application, free ofcharge to the Town of Ocean City, to accept bus fares and allow busriders the convenience of credit or debit card payments, which may

in turn encourage ridership.

By accepting PMoney as an additional form of payment, ETS hasoffered to charge a flat rate of .50% with no other per item fee. ETSwill reimburse any software/hardware manufacturers to cover thecost of integrating PMoney into their products. For all otherprocessing services ETS is prepared to extend the rate of .23% &$.15 above interchange, which is the same rate currently in place atEagle's Landing Golf Course. Additionally, for each individual theTown refers, the Town will have an opportunity to collect .05% onALL of their future purchases for as long as that account is active.No matter where a consumer goes to use PMoney after beingregistered by a merchant, the originating merchant will alwaysreceive that additional revenue stream. This allows a seasonaldestination like Ocean City the ability to receive year-round revenue.

FISCAL IMPACT: None incurred by the Town for development of software. Nohardware is needed. Actual dollar amount accrued by the Town isunknown since it is contingent upon usage. The Town would have toprovide signage at bus stops and provide public information.

RECOMMENDATION: Accept the proposal to allow ETS to develop this application free ofcharge to the Town of Ocean City.

ALTERNATIVES Do not provide this credit/debit card payment application for buscustomers.

RESPONSIBLE STAFF: Martha Bennett, Finance Administrator

COORDINATED WITH: George Thornes, Transportation SuperintendentJoe Sobczak, General Services Director

ATTACHMENT(S): 1) Fact sheet explaining PMoney2) Proposal from Electronic Transaction Systems Corporation3) ETS company overview4) Town of Ocean City Purchasing Policy and Procedure Manual,

Chapter IV, Section 4.10, Unsolicited Proposals.


51/84

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52/84

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53/84

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Company OvervieW e are one company providing a single solution for a ll of your processing ne

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64/84

Town of Ocean CityPurchasing Policies and Procedures Manual

CHAPTER IV

SPECIAL PROCEDURES40 UNSOLICITED PROPOSALSAn unsolicited proposal may be submitted to the Town of Ocean City for the purpose ofobtaining a contract with the Town for goods andor services offered by the submittingcompany

In order to be considered an unsolic ited proposal i t may be submitted in writing a s suchand be acknowledged and accepted by the Town a s an unsolicited proposal Onceaccepted by the Town the normal bidding procedures and purchasing guidelines may bewaived

A valid unsolicited proposal must meet the following criteriaA Be innovativeunique product andor service not availab le from any other sourceB B e th e sole idea of the company making the offerC Be prepa red without the assistance or supervision of an y Town employee orgovernment officialD Be in sufficient detail to warrant the Townsnterest in pursuing the proposalE Cannot be an advance proposal for a known Town requ irement that is availableth rough normal competit ive bidding proceduresF Cannot be in r esponse to an informal or formal request for b id from the TownThe receip t and acknowledgment of an unsolicited proposal does not in any way obligatethe Town to ente r into a contract with the offeror nor does it automatically establish aproprietary interest of right onthe part of the offeror


65/84



4. NEW BUSINESSF. Public Works Director Discussion of Terminating Transportation

Discount Coupon Booklets


66/84

25166 TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Hal O. Adkins, Public Works DirectorRE: Transportation Department

Discount Coupon BookletRequest to Terminate Program/Issuance

DATE: April 3, 2013

ISSUE(S): Use/sale/potential termination of discount coupon books.

SUMMARY: A discussion concerning the desire to terminate the sale ofdiscount coupon booklets for the Transit System.

FISCAL IMPACT: Potential revenue increase of+/- $50,000 with acorresponding reduction in expenditures of+/- $3,000 forprinting.

RECOMMENDATION: Terminate coupon book sales at this time.

ALTERNATIVES: Continue the program.

RESPONSIBLE STAFF: Hal O. Adkins, Public Works Director

COORDINATED WITH: George Thornes, Transportation SuperintendentBrian Connor, Assistant Transportation SuperintendentJennie Knapp, Budget Manager

ATTACHMENT(S): Fact Sheet (2 pages)

Agenda Item # 4F



67/84

FACT SHEET

BUS DISCOUNT COUPON BOOKS

Standard Bus Fare Per-Boarding fare is $1. Ride-All-Day fare is $3.

Discount Coupon Book Approved by MCC at Work Session of 5-31-05 $15 for a book of 20 coupons. (Discounted value is $0.75 per coupon or $2.25 per ride

all day pass.) 1 coupon required per boarding 3 coupons required for a ride-all-day pass

Sale Locations Convention Center, 65th St. Police Station, Northside Park Recreation, City Hall,

Boardwalk Tram Stations and on Buses. Staff is required to maintain a supply of 125 books at each location, excluding Buses.

Bulk Sale of Discount Coupon Books Approved by MCC at Work Session of 12-5-10 $250 for 20 books (Discounted value is $12.50 per book, $0.63 per coupon or $1.88 per

ride all day pass. FY12 = 8 sold) $600 for 50 books (Discounted value is $12 per book, $0.60 per coupon or $1.80 per

ride all day pass. FY12 = 5 sold). $1,125 for 100 books (Discounted value is $11.25 per book, $0.56 per coupon or $1.69

per ride all day pass. FY12 = 1 sold)

Typical Purchasers/Users Recordation of who is purchasing Discount Coupon Books is not formally tracked. According to sale agents, typical purchasers are: weekend/weekly Visitors, Parents

whose kids are staying in OC for the summer, Businesses, Hotels (i.e. Clarion Resort),Group Coordinators (i.e. Cheer Leaders), Seasonal and Year-round Workers, and a fewlocal churches to help those in need.

Sale Trends October through April = Approximately 200 books sold per month May through September = Approximately 2,000 books sold per month Since July 2009 sales/revenue has been steadily declining. (FY10 $232,180 / FY11

$224,775 / FY12 $191,899) As of 3/13/13 FY13 revenue is $133,465. Projected FY13 revenue is $200,000. FY14 Projected revenue is $172,700


68/84

Internal Coupon Book Supply and Purchase Costs Transportation attempts to maintain on-hand stock of 12,000 - 24,000 coupon books. Transportation last ordered 12,000 books in December 2011 at a cost of $2,411, or

$0.20 per book. Currently, there are approximately 7,500 coupon books on-hand. Based on past sale

history, this might sustain us thru August 2013. Transportation is currently poised to order an additional 12,000 coupon books due to

anticipated demand for product.

If Bus Discount Coupon Books were to be eliminated:

Conso May upset typical purchasers/userso May impose additional financial hardship on those of limited means.

Proso Eliminates profit-making opportunities related to the re-sale of bulk coupon books

purchased at discounted prices and then re-sold up-to face value to individuals.o Increased bus fare revenue estimated at $50,000 for FY14. (In FY12, 12,754 coupon

books were sold containing 20 coupons per book = 225,080 coupons x $1 per boarding= $255,080 $191,899 (FY12 discount coupon book revenue) = $63,181 difference)

o Elimination of expenses associated with product purchase (roughly $3,000 per year)and account maintenance, recordation and reconciliation by staff members.

Note: There is no expiration date for bus discount coupons. If discontinued, and ifTransportation is instructed not to replenish supplies, the MCC may need to set a cut offdate for sale and use of discount coupons/books. (As of 3-27-13 there are approx. 7,500books on hand).

3-27-13 BC


69/84



4. NEW BUSINESSG. Public Works Director Request to Fund AVL Hardware and

Software for Bus Fleet


70/84

TOWN OF


TO: The Honorable Mayor, Council President and Members of CouncilTHRU: David L. Recor, ICMA-CM, City ManagerFROM: Hal O. Adkins, Director of Public WorksRE: Purchase AVL Hardware & SoftwareDATE: April 3, 2013

April 9 2013 Complete Agenda

Documents