OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

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

Mayor and City Council & BoardsTuesday, October 14, 2025
BodyOcean City, Maryland
SessionMayor and City Council & Boards
DateTuesday, October 14, 2025
StatusFILED
Video Record
0:00 / 2:57:54

Transcript — Verbatim
0:14

All right, good afternoon, everyone.

0:15

Welcome to this work session.

0:17

Today is Tuesday, October 14th, 2025, and it's just after 1 p.m.

0:22

First on the agenda I have a notice and report of our closed session.

0:26

Prior to the mayor and city council open session being held at 1 p.m.

0:30

Today, October 14, 2025, a closed session was held today here at City Hall beginning at 11:30 a.m.

0:37

Topics of discussion were legal and real estate matters.

0:40

Persons present for Mayor Rick Mehan, City Manager Terry McGean, Deputy City Manager J.R.

0:45

Harmon, Council President Matt James, Council Secretary Tony De Luca, Councilmembers Will Savage, Larry Yates, John Garrick, Jake Metressic, and Carol Proctor, City Clerk Diana Chavis, City Solicitor Heather Stansbury, and our director of tourism and business development, Tom Carlazzo.

1:01

There is a motion to close the closed session from Secretary DeLuca, second by Councilmember Savage, and the closed session closed with seven in favor at 1258.

1:15

Next on the agenda, we have comments from the public.

1:18

Any person who may wish to speak on a matter scheduled for discussion on the work session agenda may be heard during comments from the public for a period of three minutes or such time as may be deemed appropriate by the council president.

1:30

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

1:37

Sir?

1:38

Yeah.

1:40

Yeah, come on up.

1:41

Okay.

1:48

Afternoon, Mayor and City Council members.

1:50

Thank you for this opportunity to speak to you today.

1:53

I purchased my home with Teal Drive May of 1994.

1:57

At that time, as you most of you know, there was a covenant restrictions that I had to sign before I could settle on that purchase.

2:03

And selecting, which was my first home, I wanted to be in a single family neighborhood.

2:08

Teal Drive neighborhood was one of the few R1 neighborhoods available to choose from.

2:13

In the year 2000, those covenant restrictions expired on being once to me and my neighbors.

2:18

That was the same year our first child was born, and then my second child in 2003.

2:22

Our kids grew up playing with other kids in the neighborhood.

2:25

We celebrated the holidays together, 4th of July, Halloween, and Christmas.

2:36

Getting to the point, the R1 zoning ordinance is clearly written and should be enforced.

2:42

Mayor and City Council have sworn to uphold the charter, laws and zoning ordinances that are in place and have been for years.

3:11

Most of which are Airbnb or VRBOs, whose commercials I regularly see on TV.

3:17

Properties are essentially mini-suite hotels with little to no oversight.

3:23

Left unchecked, our neighborhood will cease to exist.

3:27

Earlier this year, this body had the courage and conviction to begin to correct this oversight.

3:33

I firmly believe that the ordinance failed in the special election referendum by the slimmest of margins because of the MH inclusion in that.

3:56

So far as I see, my R1 property rights are the only ones that have sustained damage or been violated.

4:03

A real estate investor in this town has the rest of the entire town of Ocean City to buy or rent out any properly zoned property for as long or as short as their hearts desire.

4:18

Humbly asked the mayor and city council to please protect our property rights and to preserve the few remaining R1 single family neighborhoods left in our community.

4:30

Making the rental license moratorium permanent would be the first step to the R1 community preservation.

4:38

Thank you all for your time and attention.

4:45

No one else for public comment today.

5:00

Yes, I am Susan Wenslaw, 1538 Teal Drive, Ocean City.

5:08

Good afternoon, Mayor and Council.

5:10

I'm here today to ask for the continuance of the moratorium in R1 neighborhoods.

5:17

Although the referendum barely passed, the issues surrounding the enforcement and problems created by these rental businesses in our R1 community did not go away.

5:29

Over at 1533 Teal, the owner of the home posted on his Airbnb site.

5:35

The quiet hours were from 10 p.m.

5:37

to 7 a.m.

5:39

Well, that still leaves a lot of party time.

5:42

I observed several parties.

5:45

One where the guests cheered on open-mouth participants who caught sushi flying through the air.

5:52

Another party featured rowdy guests raising funds through Venmo.

5:57

They screamed and howled, tossing back liquid libations for every dollar bill that came into the party fund.

6:04

Another creative group constructed a large outdoor screen for a loud outside pool party bash.

6:13

Partying starts early at 1533 Teal Drive and quiets down about 11 p.m.

6:19

I sympathize with my daughter and son-in-law who are trying to raise their children next door to this mayhem.

6:27

The most unsettling event happened at the end of August.

6:33

My husband and I were reading in the living room.

6:36

We heard the back door open.

6:38

No knock.

6:40

I looked up to find a guy about 6'3 who walked into our home and sat down next to us.

Discussion Breakdown — Share of Meeting
Short Term Rentals█████████████████████████████████████████████57%
Insurance Requirements████████10%
Budget Equity Analysis██████8%
Housing Occupancy████5%
Healthcare██3%
Procedural██3%
Fire Safety██3%
Personnel Matters██2%
Active Transportation██2%
Summary of Proceedings

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).

Meeting Transcript

All right, good afternoon, everyone. Welcome to this work session. Today is Tuesday, October 14th, 2025, and it's just after 1 p.m. First on the agenda I have a notice and report of our closed session. Prior to the mayor and city council open session being held at 1 p.m. Today, October 14, 2025, a closed session was held today here at City Hall beginning at 11:30 a.m. Topics of discussion were legal and real estate matters. Persons present for Mayor Rick Mehan, City Manager Terry McGean, Deputy City Manager J.R. Harmon, Council President Matt James, Council Secretary Tony De Luca, Councilmembers Will Savage, Larry Yates, John Garrick, Jake Metressic, and Carol Proctor, City Clerk Diana Chavis, City Solicitor Heather Stansbury, and our director of tourism and business development, Tom Carlazzo. There is a motion to close the closed session from Secretary DeLuca, second by Councilmember Savage, and the closed session closed with seven in favor at 1258. Next on the agenda, we have comments from the public. Any person who may wish to speak on a matter scheduled for discussion on the work session agenda may be heard during comments from the public for a period of three minutes or such time as may be deemed appropriate by the council president. Anyone wishing to be heard shall state their name, their address, and the subject on which he or she wishes to speak. Sir? Yeah. Yeah, come on up. Okay. Afternoon, Mayor and City Council members. Thank you for this opportunity to speak to you today. I purchased my home with Teal Drive May of 1994. At that time, as you most of you know, there was a covenant restrictions that I had to sign before I could settle on that purchase. And selecting, which was my first home, I wanted to be in a single family neighborhood. Teal Drive neighborhood was one of the few R1 neighborhoods available to choose from. In the year 2000, those covenant restrictions expired on being once to me and my neighbors. That was the same year our first child was born, and then my second child in 2003. Our kids grew up playing with other kids in the neighborhood. We celebrated the holidays together, 4th of July, Halloween, and Christmas. Getting to the point, the R1 zoning ordinance is clearly written and should be enforced. Mayor and City Council have sworn to uphold the charter, laws and zoning ordinances that are in place and have been for years. Most of which are Airbnb or VRBOs, whose commercials I regularly see on TV. Properties are essentially mini-suite hotels with little to no oversight. Left unchecked, our neighborhood will cease to exist. Earlier this year, this body had the courage and conviction to begin to correct this oversight. I firmly believe that the ordinance failed in the special election referendum by the slimmest of margins because of the MH inclusion in that. So far as I see, my R1 property rights are the only ones that have sustained damage or been violated. A real estate investor in this town has the rest of the entire town of Ocean City to buy or rent out any properly zoned property for as long or as short as their hearts desire. Humbly asked the mayor and city council to please protect our property rights and to preserve the few remaining R1 single family neighborhoods left in our community. Making the rental license moratorium permanent would be the first step to the R1 community preservation. Thank you all for your time and attention. No one else for public comment today. Yes, I am Susan Wenslaw, 1538 Teal Drive, Ocean City. Good afternoon, Mayor and Council. I'm here today to ask for the continuance of the moratorium in R1 neighborhoods. Although the referendum barely passed, the issues surrounding the enforcement and problems created by these rental businesses in our R1 community did not go away. Over at 1533 Teal, the owner of the home posted on his Airbnb site. The quiet hours were from 10 p.m. to 7 a.m. Well, that still leaves a lot of party time. I observed several parties. One where the guests cheered on open-mouth participants who caught sushi flying through the air.

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