OCEAN CITY – Persistence paid off this week for Councilwoman Margaret Pillas, who successfully pushed the Mayor and Council to publicly discuss the town’s advertising agency contract and hold an official vote.
At the conclusion of the Mayor and City Council legislative session on Monday evening, Pillas returned to the topic of the three-year contract extension of Ocean City’s advertising agency, MGH, which was voted on in closed session on June 24 when she was absent.
“My concern is the MGH contract wasn’t fully discussed, mostly because it wasn’t discussed in an open session. It is certainly something we have discussed many times in the past but I believe that contract that got voted on in that closed session violates the Open Meeting Act, and this council often refers to the integrity of the process,” Pillas said.
On June 24, the Mayor and City Council reconvened in an open work session after adjourning for a closed session where the council voted 4-1 to approve the continuation of MGH’s contract for the next three years until Dec. 31, 2017. Council members Dennis Dare, Doug Cymek, Lloyd Martin and Mary Knight were in favor with Councilman Brent Ashley in opposition. Council members Margaret Pillas and Joe Mitrecic were absent, although Mitrecic had submitted a letter of support.
Before entering closed session, Ashley voiced his objection to not discussing the matter publicly.
“The council has discussed this issue several times and has voted in open session to go forward with the RFP [Request For Proposal] policy and process. If the council wants to change the policy to accept, consider and vote on an unsolicited contract from one advertising agency, it should be done in open session and not behind closed doors,” Ashley said.
This week Pillas reminded the former council in September 2012 the council voted to give MGH a contract extension for one-year to allow time to develop a RFP.
“That motion to re-bid the contract has never taken place, and to ensure the integrity of the process this contract should have been disclosed in an open council meeting. I believe we cannot change council policy in closed session without already discussing it and voting on it in open session,” she said.
Pillas asked City Solicitor Guy Ayres if council complied with closed session requirements on June 24 when voting to extend MGH’s contract for three years.
“I believe it should have been done in public but I also believe they can extend it for three years,” Ayres said.
Pillas furthered the advertising budget over the next three years is $15 million, plus MGH’s fee of $800,000.
“I think the council has a fiduciary responsibility to taxpayers to get the best feel,” Pillas said. “We are going to spend possibly $16 million behind closed doors. I believe it violates the public’s trust.”
Pillas requested to bring the discussion of extending MGH contract back to a public meeting.
Being in a public meeting at that moment, Council Secretary Mary Knight made a motion to extend MGH contract for three years at the current rate.
Ashley asserted the matter should be placed on an upcoming agenda to give the public a warning it will be discussed.
“People expect and trust us to govern and government means going by the rules,” Ashley said. “If you don’t follow the rules, there are no rules. So what then are we doing here?”
As done on June 24, Knight explained the decision to extend MGH’s contract was first brought before the Tourism Commission where the town’s tourism partners expressed support for the extension.
“The reason it was discussed at the Tourism Commission meeting in closed session is because it is a contractual matter. I will take total fault on that if it shouldn’t have been in a closed session. The reason we brought it to the council in closed session, again it is contractual and monetary. I am now doing what you want me to do and am bringing it up in an open session,” said Knight, who serves as chair of the commission. “Based on the fact that this is what our business partners want, based on the fact that we have been so successful … I am making the motion and standing by it that we extend the MGH contract.”
Pillas persisted the town has time with it being over 120 days prior to the expiration of the current contract to conduct an RFP process.
“I think you are avoiding something and I am very concerned about it. I am suspicious that you keep rolling over a contract with this agency,” Pillas said. “The contract from 2010 should be looked at, and we should find out what procedure has to be followed to get the State of Maryland prosecutor involved to see about this contract. To see if it is valid or not, or see if there is something that has happened since 2010 that we keep rolling this document over.”
Ayres interjected the council should just put an end to the debate by placing it on next week’s work session’s agenda where a vote can be held.
“You all don’t have to make this so painful,” he said.
Knight amended her motion to move the matter to Tuesday’s work session agenda, and the council voted unanimously to approve.