Ocean City Mayor and City Council Work Session - October 14, 2025

This work session was held on Tuesday, October 14, 2025, beginning at 1:00 PM, following a closed session from 11:30 AM to 1:00 PM to discuss legal and real estate matters. The council addressed a range of topics including the approval of meeting minutes, the 2026 employee benefits renewal, the moratorium on new short-term rental licenses in R1 and MH districts, a property tax credit for volunteer firefighters and city employees, and a draft ordinance regulating bicycles and similar conveyances. Public comment was heard on the rental moratorium and other agenda items.

Consent Calendar

• Minutes Approval: The council approved the minutes from the Regular Meeting #17 dated October 6, 2025. The motion carried with seven votes in favor.

Public Comments & Testimony

• A resident of Teal Drive (R1) spoke in favor of making the moratorium on new short-term rental licenses permanent, citing disruption to the single-family neighborhood and a personal incident involving an intruder. They urged the council to protect R1 property rights and enforce zoning ordinances.
• A second resident of Teal Drive described ongoing noise and party issues at a neighboring short-term rental, and asked the council to continue the moratorium to preserve residential safety and security.
• Leslie Smith (107 Convention Center Drive) opposed extending the moratorium, stating that police and code enforcement data showed no measurable increase in issues related to short-term rentals. They argued that the moratorium's purpose had been fulfilled and it should be lifted.
• Terry Miller (116 Bering Road) opposed the moratorium, claiming the facts never supported it (e.g., only four noise complaints in R1/MH over 12 months) and that short-term rentals have been part of the community since inception. They called for lifting the moratorium to heal the community and restore trust.
• Brian Yanovich (153 Channel Bowie), a vacation homeowner who rents his property 6-8 weeks a year, opposed the moratorium, stating his renters cause no trouble and the neighborhood feels like a family community. He suggested addressing specific problem properties rather than a broad ban.
• Tammy Johnson (101 Sea Breeze Drive, Montego Bay) questioned the emergency basis for the moratorium and argued crime did not increase significantly. She offered to volunteer services to help resolve problems constructively.
• Linda Tucker (303 South Ocean Drive, Montego Bay) opposed the moratorium, noting the data showed no problems in R1/MH and that one problem house (1533 Teal) should be addressed individually rather than punishing all owners.
• Michael Bell (9000 Caribbean Drive, Little Salisbury) questioned why the moratorium targeted only R1/MH when most problems occur in condos. He asked about tax revenue loss and why Council President James did not recuse himself due to his hotel industry ties.
• Cynthia Hill (700 Gulf Stream, Montego Bay) spoke as a mobile home owner affected by the moratorium, highlighting an insurance crisis for steel-framed homes. She urged the council to help mobile homeowners with pathways to compliance rather than removing rental income needed for improvements.
• Bridget Garchek Stone (401 142nd Street, Kane Woods) echoed that decisions should be based on data, which does not support an emergency. She noted vacant second homes are also detrimental and suggested market forces should drive rental licenses.
• Lauren Bunting (1545 Teal Drive), President of the Coastal Association of Realtors, stated the referendum vote against the ban should be respected regarding the moratorium. She asked that any decision on extending the moratorium follow the full ordinance process with public hearings.
• Beth Roach (9205 East Biscayne Drive), a former full-time resident not allowed to vote on the referendum, argued that property owners who work in Ocean City should have a voice in property-related decisions.
• An unnamed speaker expressed concern that the moratorium is a backdoor to further rental restrictions and that hotels may be behind the push. They offered to help mediate issues.
• Jenny Shepard (10150 Queen's Circle, West Ocean City) supported the referendum outcome and urged the council to consider the voters' decision.
• Breezy Camameyer (303 Pacific Avenue, Little Salisbury) opposed the moratorium, stating the people spoke in the special election and should have the choice to use their property.

Discussion Items

• 2026 Benefits Renewal: Senior Financial Analyst Josh Weaver and Human Resources Director Katie Callan presented a historical review of renewals. The original CareFirst renewal was 22.4%; after negotiation, the final increase for active employee medical and pharmacy stands at 18.4% – the highest in a decade. Strategies to reduce costs included a “laser” on one high-cost claimant (raising the threshold from $175,000 to $800,000) and an aggregate specific deductible of $200,000, saving approximately $1.1 million in premiums. Additional savings were achieved by removing aggregate stop loss coverage ($30,000/year) and adding a $5 generic drug copay. Dental and vision rates remain flat. The council approved the plan design changes and 2026 premiums with a motion (7-0).
• Moratorium on Short-Term Rental Licenses in R1 and MH: Planning Director George Bendler and Fire Marshal Joe Sexauer provided a status update. As of October 1, 2025, there are 8,093 rental licenses, 97% short-term. In R1, 361 licenses exist; in MH, 448. Since the moratorium began in February 2025, licenses decreased by 9 in R1 and 7 in MH (with exceptions for death and settlement). Police data from October 2024 to September 2025 showed 13 disorderly calls out of 1,800 in R1/MH. The inspection program found 25 illegally converted bedrooms across town, mostly not in R1/MH. The council debated extending the moratorium. A motion to permanently extend the moratorium in R1 only was amended to extend the existing moratorium (R1 and MH) for one year through January 3, 2027. The motion passed 4-3 (Councilmembers DeLuca, Savage, Yates, and Metresic in favor; Council President James and Councilmembers Proctor and Garrick opposed). A subsequent motion to bring the topic of minimum length of stay back for discussion passed 6-1 (Councilmember Proctor opposed).
• Property Tax Credit for Volunteer Firefighters and City Employees: City Manager Terry McGean presented a proposal to grant a property tax credit to active volunteer firefighters (allowed by state law) and an equivalent taxable bonus to city employees who own their primary residence in Ocean City, to incentivize residency. The fiscal impact is approximately $37,000 annually ($6,000 for volunteers, $8,000 for police/fire, $23,000 for other employees). A cap of $2,500 was added. The motion to draft an ordinance for volunteers and a policy for employee bonuses passed 6-0 (Councilmember Savage absent).
• Draft Ordinance on Bicycles and Similar Conveyances: City Solicitor Heather Stansbury presented a comprehensive rewrite of Article 5, regulating where various conveyances (bikes, e-bikes, skateboards, roller skates, segues, pushcarts) can be ridden. Key changes: on roadways, all conveyances except segues and pushcarts are allowed; on the boardwalk, only traditional bicycles, class-1 e-bikes, non-motorized skateboards, roller skates, segues, and pushcarts; on sidewalks, most conveyances are prohibited, with an exception for children under 16 on non-motorized bicycles. The ordinance also clarifies rules for Somerset Plaza and the Trimper strip. The council voted 6-0 to advance the draft ordinance to first reading.

Key Outcomes

• Approved: Minutes of October 6, 2025 (7-0).
• Approved: 2026 benefits renewal with plan design changes and new premiums (7-0).
• Approved: Extension of the moratorium on new short-term rental licenses in R1 and MH districts for one year, through January 3, 2027 (4-3).
• Approved: Directing staff to bring the topic of minimum length of stay back for discussion (6-1).
• Approved: Draft ordinance for property tax credit for volunteer firefighters and annual bonus for city employees (equivalent to city property tax, capped at $2,500) (6-0).
• Approved: Advance draft ordinance on bicycles and similar conveyances to first reading (6-0).