Ocean City passes benefits changes

Original plan altered after veto

OCEAN CITY -- Town officials voted unanimously to approve two ordinances altering health benefits and the pension package for new hires.

Mayor Rick Meehan pledged to sign both into law today as emergency ordinances to allow resort officials to finalize a proposed budget for fiscal year 2012 and to begin hiring 31 employees whose wages are included in the proposed budget. Included among the hires are six new police recruits whom the council prevented from entering a police academy class in January because it wanted to wait until a new benefits package was in place.

The new health plan will affect only new hires and allow the town to maintain its former plan as-is for current employees. This facet of the council's agreement will help avoid about $800,000 the resort would have incurred in unbudgeted expenses if it had eliminated the current health plan.

The $800,000 would have come on top of the $571,000 it will cost the town in the coming fiscal year to enact the new plans. About $345,000 will come from savings in the general fund, and the council voted for the additional $126,000 to come from surplus funds originally allocated for street improvements. The plan is to pump savings acquired throughout the year back into that fund until it reaches its original figure of $601,000.

The new health plan will include a health savings account that the city will fund continuously during an employee's career. There is also a soft cap included in the plan, which says the town's liability for employee health care can rise a maximum of 3 percent annually, and the city will continue to cover its share of the plan until the employee reaches age 65 and becomes eligible for Medicare. This will eventually put more of the responsibility for health care costs on the employee's shoulders.

The pension ordinance will remain as it was before the veto. Meehan said he vetoed both because he wanted to see the two plans move forward together, not because he disagreed with the format of the new 401(k)-style pension plan.

Avoiding having to find budgeting room for the $800,000 that would've come with closing the current plan benefits the taxpayers and employees, said Councilwoman Mary Knight.

"I think if we can start saving that money, we can look into giving our employees raises, and that would be really nice," Knight said. "We can hire people now, too, and I feel very good about that."
Raises for town employees are not budgeted for 2012.

Councilman Brent Ashley said he was "more than willing" to vote for the compromised plan, since he and the rest of the council majority had the original goal to change benefits for new hires.

smuska@dmg.gannett.com
410-213-9442, ext. 14

 

OC mayor vetoes cuts to benefits

Initial cost was not accounted for

OCEAN CITY -- Ocean City Mayor Rick Meehan vetoed two ordinances passed by the Town Council majority that would have snipped retirement and health insurance benefits for some new town hires.

Meehan opted not to sign the ordinances that would have enacted a new high-deductible health insurance plan option and a defined contribution pension plan.

The vetoes came Tuesday, less than two weeks before the council is scheduled to hold a first reading of the fiscal year 2012 town budget.

Meehan will have an emergency meeting with the council on Monday, when they will attempt to come to a compromise on an ordinance Meehan would be able to sign into law before the budget is due.

The bill Meehan vetoed was meant to save the town money in the long term. But preparing for the elimination of the current health plan would have cost the town more than $800,000 in the coming year, a figure that has not been accounted for in the proposed budget, Meehan said.

"I'm certainly not looking to veto ordinances, but I could not in good conscience support the two that increased the cost of the general fund and to the taxpayers," Meehan said.

Meehan made a recommendation to the council to institute a soft cap health plan that he says will reduce the town's long-term liability by $12 million while saving taxpayers $1.6 million this year.

Meehan's proposed plan would include a freeze on the town's liability for retiree health at today's level with a maximum of a 3 percent increase per year.

Under the plan the council approved in a 4-3 vote at its April 18 meeting, the town would contribute funds to a retirement health savings account for its workers until the end of employment. Employees could retain the town's other health insurance plan only by paying the entire, unsubsidized premium when they retired.

Councilman Joe Hall -- who voted in favor of the plan with Jim Hall, Brent Ashley and Margaret Pillas -- said the council majority's goal is to pay as much up front for employee retirement benefits as possible and to lessen contributions after the employee's career with the town is finished.

"We would still have a relationship with them at the end of employment, but we believe that by the end of employment, we should have already provided enough to sustain them in the future if they manage their health funds correctly," Hall said.

Meehan's disapproval of both ordinances was tied more closely to the health plan than the pension plan, he said, but he opted to veto both because he believes the two plans mirror each other. The two main retirement benefits are typically pensions and health insurance, he said.

"I think we want to have a plan in place where those two complement each other," Meehan said, adding the proposed defined contribution plan is about "as good as you can have" since the recent additions of a contribution level and vesting schedule.

Meehan vetoed an ordinance to go to a defined contribution plan in January on the basis of its vagueness and lack of those two features.

Councilwoman Mary Knight, who voted against the ordinance with Doug Cymek and Lloyd Martin, said she still has concerns about how competitive the town will be as a potential employer if changes to retirement plans are made. She is also concerned about ending the current health plan and having to find excess money during the budgeting process.

In a previous interview, budget manager Jennie Knapp said enacting the health plan ordinance would cost about $1.3 million in the coming year. Meehan cited a figure of $800,000 in each of the next two years, while Knight cited a figure of $900,000 this year and $700,000 next year.

smuska@dmg.gannett.com
410-213-9442, ext. 14

 

Let foghorn blast take you back

New CD captures OC's distinctive sounds

 

OCEAN CITY -- Bill Fuhrer remembers the times during his childhood when he would sit in the back seat of his parents car, watching the Ocean City skyline get tinier and tinier until it disappeared as they traveled westward on Route 90, toward home.

These moments would bring on something akin to a mild depression, Fuhrer, now 45, says. He remembers wishing he could take a piece of his vacation spot back to New Cumberland, Pa., where he lived then and lives today.

So at age eight, he began recording sounds that would remind him of the place he loved even when he was more than 200 miles away. It started with a blast from the Inlet jetty foghorn while he stood on the beach with his father early one morning.

The sounds were not nearly the equivalent of actually being in town, but they helped to dim his longing to be back, and to stoke the excitement for when the next opportunity would arise.
Fuhrer did this for years, and on May 15, a compact disc consisting of an eclectic mix of old and new local sounds will be available for others who want to listen to the "Sounds of Ocean City, Maryland."

The release will be Fuhrer's second go at distribution of his sounds. In 2001, friends encouraged him to put together the compilation, so he went to some of his favorite spots with a portable recorder and grabbed some audio footage. He burned them onto a blank disc himself, and eventually began marketing it in April 2001.

He sold the 3,000 discs he'd had mass-produced by a company in Massachusetts, and had plans to immediately make a second installation, but that fell short due to financial obstacles. He was also unable to produce any more discs of the first installment.

"The concept never died, though. It stayed on my radar," said Fuhrer, who considers himself a "semi-local," since he has continued to visit the area frequently and has aspirations to eventually move here full-time.

In 2010, he became one of the "Ocean City Insiders," a group of people the town's Chamber of Commerce bring in on an annual trip to check out some of the new attractions that will be offered for the upcoming season. They use social media and the Chamber's website to convey tips to potential visitors.

A few of the insiders found out Fuhrer had been responsible for the compilation of the disc they'd owned for years. They encouraged him to bring out a new edition. So he upgraded to a new recorder that would capture higher-quality sounds, and did just that.

The new installation is a combination of some older, previously-released tracks Fuhrer digitally remastered and some new sounds many visitors will be familiar with.

Fuhrer included some clips of the Kite Loft's colorful flags situated on the beach near the specialty kite store. There is also a clip of the infamous Laughing Sal from the Ocean City Life-Saving Museum. But Fuhrer's favorite new addition is called "An afternoon at Seacrets."

To acquire the footage for that clip, Fuhrer went to the popular restaurant and nightclub one afternoon in August, where he made his way around the establishment, documenting the hustle and bustle.

"That has always been one of my favorite places in Ocean City, so I was really glad to be able to include them this time around," Fuhrer said.

Of course, there are sounds from the Atlantic Ocean included, as well. Those take up most of the 70-minute disc, because Fuhrer believes those are the sounds people will cherish most while they're away from the resort.

"You might listen to sounds from the Boardwalk tram or an ice cream truck once or twice, but those ocean sounds are what you're going to be putting on the loop and listening to more often," he said.
Fuhrer is proud of the entire reboot, including the packaging of the disc, he said.

The cover is a recently-taken aerial shot of the resort, provided to Fuhrer by his longtime friend and local photographer Paul Smith. There's also a photo of a sunset taken from Northside Park, along with photos of the Inlet jetty and Seacrets.

Mike Beatty, a local disc-jockey and radio host known better by his moniker of "DJ Batman," encouraged Fuhrer to put together a CD in 2001, on the grounds he loved the concept of making something that allows people to recall and embrace their time in town.

"Everybody who comes to town is looking to have a good time, and what better way to remind you of that than taking part of it home with you?" Beatty said. "The sounds are as much a part of Ocean City memories as everything else."

The CD will be available at Donald's Duck Shoppe and Gallery at the Gold Coast Mall, 11515 Coastal Highway, as well as Souvenir City on the Boardwalk and the Life Saving Museum at 813 S. Atlantic Ave. Discs can be purchased online at atbeach.com/ocsounds, as well, where a few sound clips are available for sampling.

"(The CD) is definitely something nice to take home for nostalgia," Donald's Duck Shoppe manager Sean Tushup said. The store sold Fuhrer's first disc, and Tushup says the new version sounds better quality-wise.

Fuhrer is selling his work for $14.95 each, a discount from the $16.95 the first version went for more than a decade ago. He wants it to be affordable for anyone who might want to purchase one, he said.

"I remember leaving the beach as a kid and always thinking there was something I'd have to save my money for to buy next year when I came back," Fuhrer said. "This was the way to create the souvenir I would've wanted back in '68 or '72. With it, you can go back to America's finest family resort anytime."

smuska@dmg.gannett.com
410-213-9442, ext. 14

 

First USA Today byline (condensed version of previous posted article)

Beach town businesses offer free gas to draw visitors

By Scott Muska, The (Salisbury, Md.) Daily Times

OCEAN CITY, Md. -- Joe Kro-Art, the owner of an art gallery on Ocean City's boardwalk, says tourists shouldn't cringe at high gasoline prices -- not when the resort is offering gas giveaways.

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"We need to get the idea in their head that gas is gold, and you can get free gas in Ocean City," said Kro-Art, whose shop, Ocean Galley, is decorated in colorful murals.

So far, at least 10 hotels and condo complexes are giving away gas cards of up to $50 or offering special "gas discount" room rates. But Kro-Art says the resort town should consider expanding the incentives. He recalled how in 1979, Mayor Harry W. Kelley and the City Council leased a gas station in town , where they pumped fuel for customers.

Council member Brent Ashley said gas giveaways fit well into his idea of promoting Ocean City as a vacation destination full of free activities. The boardwalk, beach and ocean air all exist free of charge, he said.

In 2008, when gas prices hovered at $4 per gallon, the Ocean City Hotel-Motel-Restaurant Association worked with hotels to offer gas incentives. That "definitely helped" attract attention to the town, said Susan Jones, the executive director of the association.

"The way people are kind of thinking is, it might cost an extra 20 bucks to fill up and get here, so they might not buy that bucket of fries or T-shirt," Jones said.

Kro-Art, Ashley and council member Margaret Pillas said they would support taking money from their advertising budget and putting it toward a free-gas promotion. The town approved a $3.5 million tourism campaign with MGH of Baltimore. The campaign includes a series of "Rodney the Lifeguard" ads, which cast Ocean City as a boredom-buster for the average family.

"I think it misses the point, because people aren't bored -- they're broke," Ashley said.

Some town officials say tourism will thrive regardless of gas incentives. Town spokeswoman Donna Abbot said the resort is close enough to the Washington, Baltimore and Philadelphia metro areas that visitors can reach the beach on a half-tank of gas or less.

And then there are those free activities, Council President Jim Hall said.

"We have the ocean and the beach and the sun," Hall said.

'People aren't bored -- they're broke'

To market OC, is free gas the key?

May 17, 2011  |  

Comments

Joe Kro-Art of Ocean City holds a free gas sign. Kro-Art and some council members want to market Ocean City with a promotion to pay tourists the cost of gas they burn to drive to the resort. / ERIC DOERZBACH/THE DAILY TIMES

 

OCEAN CITY -- Joe Kro-Art wants prospective Ocean City visitors to imagine pumping gasoline into their vehicles on their way to or from vacation. Many may cringe at the thought. But Kro-Art wants to add a twist: The gas going into the tank is free.

The owner of Ocean Gallery -- a vibrantly decorated art outlet on Second Street and the Boardwalk -- has been vocal about the tourism benefits of offering free gas incentives to resort patrons. He fears visitors this summer could be discouraged by rising gas prices.

They may be short on funds after buying enough gas to get to the resort, he says, or they may worry about how much they need to save to make it home. Worst-case scenario: They won't even come at all.

Regulars to the area may scale back the number of trips they make during the three month season, as well.

"We need to get the idea in their head that gas is gold, and you can get free gas in Ocean City," Kro-Art said.

In recent weeks, Kro-Art has put out feelers to town officials and business owners. Among them is a half-baked proposal that the town purchase a gas station to provide free fuel. Kro-Art admits the idea may be an outlier -- he's not even sure if there's a gas station for sale in the area -- but one he believes could spark a great deal of dialogue, and points out it's been done before. In 1979, Mayor Harry W. Kelley and Town Council leased a gas station in town next to Jolly Roger Amusement Park, where they pumped fuel for customers. It was an effort to help allay gas-shortage woes, and it was a publicity bonanza. There's no shortage of gas currently but the basic motivation is the same, according to Kro-Art.

"We need to show everyone that Ocean City is a tough little town that cares about families," he said.

"That's the Harry Kelley image."

The Ocean City Hotel-Motel-Restaurant Association has kept an eye on gas prices, and on what can be done to make sure people continue to travel to the resort in droves. So far, more than 10 resort hotels and condo complexes have teamed up with the association to advertise either gas card giveaways or lowered "gas discount" room rates for guests. The deals are posted on the association's website, ocvisitor.com.

The association is also giving away a $100 dining gift card every week between Memorial Day and Labor Day weekends, along with offers of numerous discounts for all sorts of resort attractions.

Executive Director Susan Jones says she hopes offers like this will help make trips more manageable for families while also helping town businesses.

"The way people are kind of thinking is, it might cost an extra 20 bucks to fill up and get here, so they might not buy that bucket of fries or T-shirt," she said. "So we're looking to shave off some of the costs in any way possible."


The association offered many of the same gas savings perks in 2008, when gas prices hovered around the $4 per gallon range. The first go-around with those promotions "definitely helped" attract attention to the town, Jones said.

Councilman Brent Ashley has spearheaded a promotion that emphasizes all the free entities Ocean City has to offer, and has been in contact with Kro-Art about methods to involve gasoline in the equation.

"I think our slogan should be, 'Ocean City: Where the good things in life really are free,' " Ashley said.

He posed the idea to Jones, and the association has since added a promotion to its website highlighting the free Boardwalk, beach activities and "fresh ocean air."

Adding some sort of free gas program in the days leading up to Memorial Day -- when the bulk of tourism usually begins -- would be excellent for town publicity, Ashley said. There's a difference between advertising and promotion, and Ocean City has lacked in the latter for some time, he said. The town annually increases funding for advertising, but has not seen a rise in tourism to accompany it, according to Ashley.

In March, the council approved a marketing plan presented by MGH, a marketing communications agency based in Baltimore, that includes about $3.5 million in funding for a tourism campaign that began in April and runs through August. Much of the money, which will be spent on Rodney the Lifeguard advertisements, paint a trip to OC as a boredom-buster for the average working family.

MGH has produced Rodney-related marketing for the town as a marketing staple since 2009. In some Rodney television spots, the lifeguard rides a Boardwalk tram around Baltimore, urging office drones via bullhorn to visit the beach. In others, he grabs people and loads them into the tram in an effort to save the East Coast from boredom by bringing them to Ocean City.

Kro-Art, Ashley and Councilwoman Margaret Pillas say they would support taking some of that money and dedicating it to a free-gas promotion. Ashley walks on the Boardwalk daily and sometimes stops people to ask what has brought them to town. Not one has mentioned Rodney, and many of them have no recognition of the advertising campaign when Ashley mentions it, he said.

"I think it misses the point because people aren't bored -- they're broke," he said.

Pillas believes the council, town officials and the town's Tourism Advisory Board need to discuss methods for promoting the town to see if moving some of the advertising funds around would be beneficial. She said the town needs to "leave a little portion" to make changes to its marketing and promotion schemes as opportunities present themselves.

"That money is a certain amount that comes out of the budget for advertising, and, to me, I think it should be more liquid as to where and how we use it," she said.

Some town officials are confident tourism will thrive at the resort this summer regardless of whether there are gas incentives.

Gas prices have been high before, but people have still traveled to town, and if the weather cooperates, council President Jim Hall thinks they still will.

"We have the ocean and the beach and the sun," he said, all of which are indeed free for all visitors.

Town spokeswoman Donna Abbott pointed out that the town's close proximity to many big cities has helped the town fare well during stretches when gas prices peaked. In many cases, people can get to the beach on a half-tank of gas or less, so paying at the pump hadn't typically been a deal-breaker, she said.

Tourists can park their cars upon arrival and use them sparingly during their stay, she said. Many attractions are within walking distance, and families can ride the bus for a flat rate of $3 for 24 hours, she said.

"We'll continue to push the promotion of free activities, and the deals and vouchers being offered by hotels and restaurants will be something people are very receptive to," Abbott said. "The public is always looking for value."

Ocean City saw an increase in room tax figures from Memorial Day to Labor Day in 2009 to the same time period in 2010, according to Abbott. Room tax statistics are used to discern how many hotel rooms and condos are filled throughout the season.
smuska@dmg.gannett.com
410-213-9442, ext. 14