Ocean City, Maryland Mayor and City Council Regular Meeting - January 5, 2026

The Mayor and City Council of Ocean City, Maryland, held a regular meeting on Monday, January 5, 2026, beginning after a closed session from 5:30 to 6:00 p.m. on real estate matters; no action was taken. Councilmember Gehrig was absent for the entire meeting. The council approved routine items, considered short-term rental policy options, adopted ordinances and a resolution, and heard public comment. The meeting adjourned at 9:05 p.m.

Consent Calendar

• Approved the minutes of Regular Session #22 (December 15, 2025).
• Acknowledged draft agendas for the Police Commission (January 12), Transportation Committee (January 13), Tourism Commission (January 15), Bicycle and Pedestrian Advisory Committee (January 21), and noted no January meetings for the Recreation and Parks Committee and Green Team.
• Accepted the bid award recommendation for the beach equipment rental franchise auction.
• The consent agenda was approved by unanimous consent.

Bid Opening and Standing Committee Actions

• At the Boardwalk Wayfinding and Signage bid opening, a motion to not accept the late bid was approved. Five bids were read; apparent bid prices included, for example, PlacFat at $425,369 (Option 1) and $436,533 (Option 2), and KM Printing LLC at $469,031 (Option 1) and $481,281 (Option 2). The bids were remanded to staff for further review on a motion that passed six in favor.
• The Bicycle and Pedestrian Advisory Committee (BPAC) recommendation to paint green bike lane markings on St. Louis Avenue at 2nd, 5th, 8th, 12th, 15th, and 17th Streets as a pilot project was approved six in favor. Staff estimated the cost at $7,000 or less and stated it would comply with federal standards.
• The BPAC recommendation to permit bicycles on sidewalks on Philadelphia Avenue from Caroline Street to South First Street, and on Coastal Highway/MD 528 from roughly 60th to 63rd Street, was approved six in favor; existing dismount stencils would be removed.

Discussion Items

• Bank of Ocean City Revolving Line of Credit: Staff recommended renewing the town's $2.5 million line of credit for three years at a fixed 5.5% interest rate with a $500 annual fee. The council approved the renewal.
• Short-Term Rental Licenses in R-1 and MH Districts: City Manager Terry McGean presented options and data for managing the quantity and ownership of short-term rental licenses. The council confirmed the discussion applies only to R-1 and MH zoning districts. Quantity options presented were: a phase-out (no new licenses, existing licenses non-transferable), a freeze (cap at current number, waiting list), a cap at a higher number with lottery, and no action. Ownership options presented were a corporate ban, a multi-property ban, a non-resident ban, and no action.
  • Staff data showed about 11.3% of R-1 properties, 6.6% of MH properties, and 8.8% of all properties in those districts currently hold short-term rental licenses. The city manager described post-COVID growth of about 10% per year until 2024, a leveling off in 2024-25, and a drop after the moratorium, while calls for service remained flat or decreased. In ownership data, 20% of R-1 and 14% of MH licenses were held by corporate/LLC entities; 17% of R-1 and 8% of MH licenses were held by Ocean City residents.
  • Councilmember Proctor argued the police call data did not show a problem and said more calls involved non-rental properties than rentals; she opposed additional restrictions. Mayor Matt James said preserving R-1 neighborhood character was important, did not want to take rights from current license holders, and called the issue a 50-50 balance. Councilmember DeLuca said decisions were premature pending the comprehensive plan, strategic plan, and completed code enforcement data. Councilmember Metresic said changing rental models and loss of neighborhood character were central concerns, not just crime statistics. Councilmember Savage proposed a hybrid approach: a future date after which newly purchased properties would not be eligible for a short-term rental license, while current owners would retain rights until transfer. Several members expressed concern that banning entity ownership would be government overreach and would interfere with estate planning and liability protections; the city solicitor strongly cautioned against the non-resident/homestead-credit option.
  • The council set aside the ownership options and directed staff to return with additional quantity-based options, including options one and two and a future-date phase-out upon property transfer, plus a staff opinion on a cap on the number of licenses. The motion carried 4-2, with Councilmembers James and Proctor opposed and Councilmember Gehrig absent.
  • One public commenter later disputed the growth figures, citing a 3% increase over ten years and an increase from 276 to 341 licenses; the discrepancy was not resolved during the meeting.

Ordinances and Resolutions

• Ordinance 2025-31: Adopted, six in favor, on second reading. It amends the 1994 Worcester County Sewerage Treatment Facilities Transfer Agreement and increases allocated capacity for West Ocean City by 170,000 gallons per day. The city solicitor noted the ordinance was being re-advertised because the prior second reading had not been adequately advertised.
• Ordinance 2025-33: Adopted, six in favor, adopting FY26 Budget Amendment #1 as presented at the December 9 work session.
• Resolution 2026-01: Adopted with five in favor and Councilmember Savage abstaining, authorizing the disposition of surplus personal property.

Public Comments & Testimony

• Michael Bell (Caribbean Drive) opposed short-term rental restrictions, saying owners may need rental income in emergencies and that Little Salisbury is not an affordable family neighborhood; he said the council should target specific problems rather than property owners.
• Cynthia Hill (Gulf Stream Drive, Montego Bay) opposed the moratorium and restrictions, asserting they would strip mobile homeowners of federally authorized hazard mitigation tax benefits and inheritable equity, including approximately $28 million for Montego Bay. She said the city had not educated residents about federal protections and asked that no vote occur until that happens.
• Jamie Rice (Hitchens Avenue) spoke about the AMI water meter program and biodigital convergence, asking for a public discussion on smart-city technologies and their health and privacy effects, and left informational materials with the council.
• John McGathin, representing Louis Education Rentals, opposed restrictions, argued enforcement should target problem tenants rather than all owners, and said rental revenue for owners was already down.
• Steve Taylor (Fountain Road, Kane Woods) opposed restrictions, called the issue an enforcement problem, and said his block already has many empty second homes; he said removing short-term rental licenses would not create family neighborhoods.
• Leslie Smith (Convention Center Drive) opposed ownership restrictions as government overreach and also raised a formal residency complaint against Councilmember DeLuca, alleging selective enforcement and gender discrimination after her own disqualification.
• Robert Canarro (Peach Tree Road) opposed the moratorium, disputed the council's data and emergency justification, and said the issue was harming residents and dividing the town.
• Terry Miller (Bering Road) opposed restrictions, cited 276 licenses in 2015 versus 341 today, supported enforcement and a rental liaison, and welcomed an investigation into Councilmember DeLuca's residency.

City Manager and Council Comments

• City Manager Terry McGean announced the January 13 work session, including a noontime closed session on legal matters, the comprehensive plan update, Board of Port Wardens recommended code amendments, and proposed business license code amendments. He introduced new city engineer Brad Parks, engineering project manager/right-of-way manager Posha Rigdon, and engineering associate Alicia Greenhall.
• City Solicitor Heather Stansbury said a formal residency complaint from Leslie Smith had been received late that afternoon and would be reviewed with the city manager and council president.
• Mayor James noted the divisiveness of the short-term rental issue and expressed hope for resolution within the next month.

Key Outcomes

• Consent agenda approved.
• Boardwalk signage bids remanded to staff for review.
• Two BPAC bicycle/sidewalk recommendations approved.
• Bank of Ocean City line of credit renewed for three years.
• Council directed staff to develop new short-term rental quantity/hybrid options; no new short-term rental ordinance was adopted.
• Ordinance 2025-31, Ordinance 2025-33, and Resolution 2026-01 adopted.
• The January 13 work session was announced, including the comprehensive plan update and proposed code amendments.