Ocean City Council Work Session - January 13, 2026: STR Licenses, Comp Plan, and Port Wardens
Ocean City Mayor and City Council Work Session – January 13, 2026
The work session began at 1:00 PM with a report on a closed session (11:00 AM–1:00 PM) covering legal, personnel, and real estate matters. The council introduced three new engineering staff, approved prior meeting minutes, advanced Port Wardens code amendments to first reading, scheduled a public hearing on the 2025 Comprehensive Plan, and held extensive debate on options to manage short-term rental (STR) licenses in R-1 and MH neighborhoods. A motion to cap STR licenses at 10% of improved lots with homesteader priority passed 5‑1.
Consent Calendar
- Approved the minutes of the Regular Session #1 dated January 5, 2026 (6‑0).
- Advanced the Board of Port Wardens recommended code amendments to Chapter 106 (Waterways) to first reading (6‑0). The amendments include updated bulkhead/pier standards, extended permit completion from 12 to 18 months, and increased penalties.
- Scheduled a public hearing and ordinance to adopt the amended 2025 Comprehensive Plan (6‑0). The plan incorporates 2020 Census data, housing analysis, resilience policies, and was prepared in‑house.
Public Comments & Testimony
- Terry Miller (116 Bering Road) opposed any new restrictions on STRs, stating that over 60 years STRs have remained at ~10% of properties and that the city should focus on attracting young residents. She argued that problem properties should be addressed individually, not by blanket removal of property rights.
- Michael Bell (9000 Caribbean Drive) asserted that the council has already decided to eliminate STRs, and that a freeze prevents homeowners who may need to rent in the future from obtaining a license. He claimed the council does not care about property rights.
- Susie (last name not given) supported the continued moratorium, asking the council to take time to find a mutually agreeable solution. She noted that R-1 neighborhoods were established as non‑commercial residential communities and that STRs have changed neighborhood character.
- Eileen Ruark (1530A Teal Drive, 19‑year resident) supported the moratorium and a policy that would not allow a new STR license when a property is sold. She described degradation of community character due to “hotel homes” and increased noise, parking, and safety concerns.
Discussion Items
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Introduction of New Engineering Staff: Public Works Director Hal Atkins introduced three staff: Alicia Greenhalgh (Engineering Office Associate, started Dec 1, 2025, 14+ years experience), Pasha Rigdon (Engineering Project Manager/Right‑of‑Way Manager, one‑year anniversary), and Brad Parks (City Engineer, licensed PE with a master’s in meteorology/oceanography, started Dec 15, 2025). Brad Parks shared that his first view of the Atlantic was in Ocean City.
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Review of Port Wardens Code Amendments: Planning Director George Bendler presented amendments to bulkhead, revetment, pier, and boatload design standards, updated terminology, and extended permit completion from 12 to 18 months. The Board of Port Wardens held two public hearings and unanimously approved. The council voted to advance the ordinance to first reading.
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Comprehensive Plan Update: Bendler and Planner Bill Neville presented the 2025 plan, developed in‑house over 15+ work sessions with the Planning Commission. It highlights updated demographics, housing affordability, workforce housing, short‑term rental considerations, and a new mineral resource element. After adoption, it will replace the 2017 plan.
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Options to Manage STR Licenses in R‑1 and MH: City Manager Terry McGean reviewed five categories: phase‑out, freeze (current number), cap (number higher than current), no action, and a hybrid. He presented detailed sub‑options including owner‑occupied exceptions, weekly rental licenses, and “use‑it‑or‑lose‑it” provisions. Key data: STR licenses in R‑1/MH grew 36% from 287 (FY2021) to 390 (FY2025), then dropped to 341 after the moratorium. Calls for service remained flat or decreased.
Councilmembers debated the hybrid (phase‑out after a future date) and a straight cap. Councilmember Savage initially moved for the hybrid (July 1, 2026 cutoff) but withdrew when consensus was lacking. Councilmember Metressic then moved for a permanent cap at 10% of improved lots in R‑1 and MH, with homesteaded property owners receiving first opportunity to apply for licenses. Councilmember Yates seconded, adding that strict enforcement and consequences are needed. After clarification (one license per homesteaded owner), the motion carried 5‑1, with Council President James opposed. James stated he prefers focusing on enforcement rather than cap.
Key Outcomes
- Vote: Approved a motion (5‑1, James opposed) to direct staff to draft an ordinance establishing a permanent cap on short‑term rental licenses in R‑1 and MH districts at 10% of improved lots, with homesteaded owners given first opportunity to apply (one license per owner). The ordinance will also amend the current moratorium to align with the cap. Staff will return with draft language.
- Future Meetings: A special meeting was tentatively scheduled for Wednesday, February 4, 2026, at 1:00 PM to discuss the petition regarding the council secretary’s residency. Council also noted plans to continue discussing operational regulations (signs, inspections, length‑of‑stay) at a later date.
- Other: The council acknowledged that stricter enforcement and community notification signs may be considered separately.
Meeting Transcript
All right, good afternoon, everyone. Welcome to this work session. Uh today is January 13th, 2026. And we're getting started just after 1 p.m. First on the agenda, I have a notice and report on our closed session. Prior to the mayor and city council open session being held at 1 p.m. on January 13th, 2026. A closed session was held today beginning at 11 a.m. here at City Hall. Topics of discussion were legal personnel and real real estate matters. Persons present present were Mayor Rick Meehan, City Manager Terry McGean, Deputy City Manager J.R. Harmon, Council President Matt James, Council Secretary Tony DeLuca, Council Members Will Savage, Larry Yates, John Garrick, Jake Metressic, and Carol Proctor was absent. She will also be absent from the open session. City Clerk Diana Chavis, City Solicitor Heather Stansbury, Legal Counsel Bruce Bright and Taylor Donnelly, Risk Manager Kathy Keys, Public Works Director Hal Atkins, and our Tourism and Business Development Director, Tom Perlazzo. Please let the record reflect uh Council Secretary DeLuca joined us in closed session at 1139 a.m. And from 1219 p.m. to 1233 p.m. Terry, J.R. and Diana were out of the room. There was no action taken. I had a motion from Secretary DeLuca, seconded by Councilmember Savage to close the closed session. That passed with six in favor at 106 p.m. Moving on, we have acknowledgments and recognition. Turn it over to the city manager to introduce the city engineer, city engineer project manager and our engineering office associate. I am going to let Hal Atkins uh have the honors here. Good afternoon. Normally I wouldn't do formal introductions, but when you realize that the town's engineering department, the entire department only consists of five people. And I'm going to introduce three-fifths of that in recent turnover today. I want to start out by saying the following. And if I called it an administrative bucket list, one of the things that is of most importance to me is the sustainability of the public works department in the years ahead, and to make sure that the next gen are trained. So it will be a sleeve seamless in the eyes of the public. So before me today, I will start with the one closest to me. This is Alicia Greenhouse. She has been with us. Now note the date. December 1st, 2025. So call that four or five weeks. Six weeks possible. She comes to us with over 14 years of experience working with architectural engineering construction management firms. And the reason I wanted to point that out is right out of the gate for someone in the building business, Jake. I'm gonna I'm gonna use you as an example from a good standpoint. She comes to us with the knowledge of transmittals, submittals, RFIs, shop drawings, OMs, the whole works. And so far, so good. That is Alicia. In the middle, celebrating his one-year anniversary today, Pasha Rigdon. Pasha has come to us spending at least the last decade working for his father's survey firm. He is your project man, a project manager and right-of-way manager for the engineering department. So whether you are applying for permits for boardwalk access reasons, construction permits for equipment, dumpsters on the street, plat research, deed research, things of that sort, he's my guy. Surveying in the field, he's my guy. And in addition to that, from a project management standpoint, using one example, out of many, the marine dredging program that we do annually, he is our representative.
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