Ocean City Mayor and City Council Work Session - August 11, 2026
Ocean City Mayor and City Council Work Session - August 11, 2026
The meeting was called to order at 1:02 PM. Notable actions included approval of minutes, bid awards, reports, and key decisions on a $17.5 million bond issuance and the purchase of 193 acres for a sports complex. All votes were unanimous (7-0) unless noted.
Consent Calendar
- Approval of minutes from the July 28, 2026 work session.
- Acknowledgement of the Department Activity Report.
- Acknowledgement of the Standing Committee Draft Agenda (Pension Committee scheduled for August 19, 2026).
- Bid opening for painting and repair of the 1st and 100th Street water tanks: bids received (low: $591,675 from Apex Pro/Suburban Contracts; high: $875,200 from MIR and Industries). Bids acknowledged and remanded to staff for review.
- Transfer of taxi medallion #076 (independent to independent, from Fosters Auto Repair to Teya Taxi) approved.
Public Comments & Testimony
- Susan Jones, representing the OCMD Hospitality Association, spoke in strong support of the proposed sports complex. She noted that the project has been under discussion since 2010, would generate $7–8 million in annual state revenue, attract family-oriented visitors, and align with the city's strategic plan to become a premier sports destination. She emphasized that sports tourism is not weather-dependent and would help build year-round business.
Discussion Items
- Bid Award Recommendation for 14th Street Water Treatment Plant Window and Door Replacements: Awarded to Delmarva Veteran Builders for a base bid of $639,900, with expenditure approval up to $800,000 (including contingency). The original $3.625 million allocation for the water plant improvement project was reduced by $1.1 million for this scope. The motion passed unanimously.
- Beach Code Enforcement Report: Emergency Services Director Joe Theobald reported that between July 20 and August 2, no new summons were issued. Enforcement of the unattended property rule (e.g., chairs left overnight) remains effective, with about 70% compliance. Councilmember Garrick noted creative tactics (e.g., placing many chairs to reserve space) and raised concerns about dog waste on sidewalks. Theobald will bring recommendations at the end of the season.
- Sole Source Procurement for Sanitary Sewer Interceptors Inspection: Approved to piggyback on a Sourcewell national competitively bid contract with Red Zone Robotics Inc. for a not-to-exceed amount of $330,000. Funding is already available in the wastewater department budget. The inspection will cover about 35,000 linear feet of original piping (1969–1970) from 27th to 145th Street, following a sinkhole discovery at 49th Street. The contract includes a 7% discount off list pricing.
- Sole Source Procurement to Repair Mixers of Biosolids Holding Tanks: Approved as a sole source award to Pears Water Supply Co. Inc. for $662,046.30, with a $600,000 appropriation from the wastewater fund balance (FY26 surplus). The three gearboxes are near end of service life; the manufacturer and distributor confirmed only one authorized supplier in the region. A 12.5% discount was obtained.
- Discussion of Projects for 2026 Bond Issuance: Finance Director Shawn Bunting presented a proposed project list totaling $17.255 million, plus $200,000 in issuance costs. With a late addition for land acquisition ($3 million), the total potential bonded debt rose to $18.255 million, requiring a not-to-exceed ordinance of $18 million. Annual debt service is estimated at $920,000 for general fund projects, $300,000 for water treatment plant, $40,000 for taxiway A relocation, and $120,000 for convention center improvements. The bond sale is tentatively scheduled for October 29, 2026, with settlement on November 12. Council President James clarified that the Baltimore Avenue redevelopment ($5 million) is a local match for a $20 million federal earmark, currently under design from North Division to 9th Street, with potential to extend if bids are low. The motion to approve the project list and proceed to first reading of the ordinance on August 17 passed unanimously.
- Update on Real Property Acquisition for Sports Complex: City Manager Tom presented a recommendation to purchase parcels 34 and 60 (Harrison's Farm LLC) totaling 193 acres for $8.7 million. The property is located on the north side of Route 50, west of Berlin, with access to major roadways and visibility from Route 50. Funding will come from the room tax and Maryland Stadium Authority participation; no property tax revenue will be used. The council voted to advance the purchase to first reading of the ordinance at the August 17 meeting.
Key Outcomes
- All motions passed unanimously (7-0).
- The bond ordinance and sports complex property purchase will be introduced for first reading on August 17, 2026.
- Staff will return with recommendations on beach code enforcement adjustments at the end of the season.
- The meeting adjourned at 2:02 PM.
Meeting Transcript
All right, good afternoon, everyone. Welcome to this work session of the mayor and city council. Today is Tuesday, August 11th, 2026 at 122 p.m. First on the agenda, I have a notice and report on our closed sessions. First, we had a closed session today, beginning at 12 noon here at City Hall. Topics of discussion were legal real estate and personnel matters. Persons present were Mayor Rick Mehan, Deputy City Manager J.R. Harmon, Council President Matt James, Council Secretary Will Savage, Councilmembers John Gehrig, Jake Metressic, Carol Proctor, Peter Bruce, and Jeff Heiser, City Clerk Diana Chavis, City's solicitor Heather Stansburg Lazo, Public Works Director Hal Atkins, and our planning and community development director George Bedler. The mayor and council discuss pending and potential litigation, the acquisition of real property, and a personnel matter specific to one or more individuals. And a motion from Secretary Savage, second by Councilmember Proctor to close the closed session. That passed was seven in favor at 114 p.m. We also had a closed session on August 6, 2026 at 12 p.m. here at City Hall. Topics of discussion were personnel matters. Persons present were Mayor Rick Mehan, City Manager Terry McGeon, Deputy City Manager J.R. Harmon, Council President Matt James, Council Secretary Will Savage, Councilmembers Jake Metressic, Carol Proctor, Peter Bois, and Jeff Heiser, City Clerk Diana Chavis, City Solicitor Heather Stansbury, Andrea Mansfield, Nick Canning, and John Favaza of Madness and Canning Associates. Frank Balston, Mark Feinroth, and Ari Plout of Boston and Law Firm. Mayor and Council interviewed representatives for two government relations firms. Second by Councilmember Heiser. The vote was unanimous with six in favor. Councilmember Garrick was absent. That meeting ended at 2 50 p.m. Next on the agenda, I 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 for such time as may be deemed appropriate by the council president. Anyone who wish to be heard shall state their name, their address, and the agenda item on which he or she wishes to speak. Would anyone like to speak today? Maybe good afternoon, Susan Jones, 5700 Coastal Highway. I'm here on behalf of the OCMD Hospitality Association, and I have lots of my board members here in the audience with me. And real quick, I just wanted to point out back in 2010. And this topic, sports complex, which is what I'm here to talk about. Sorry, left that out. That topic was what we brought up back in 2010. That was a real important issue to tourism. And 16 years later, we're still talking about how important it is to the economics of tourism. And a lot of communities around the country recognize what sports tourism can do for their economies. Southern Delaware, just to our north, has DETURF, and they're expanding that, and that draws a lot of people to the Delaware rentals and to hotels. And we're starting to see that they're taking over in leading the occupancy versus Ocean City in some cases. And I'm sure you've seen it, you've talked about it. But the policy agenda in 24 and 25 had two important topics. And one was the sports complex, and one was a room tax increase. And our association did support that room tax increase with the understanding that we would eventually get some sort of sports complex to help build year-round business. The plan also had three really important things that it's worth mentioning, and I'm going to read them, so they're exactly correct. Three things in your strategic plan that said recognized as a premier sports destination on the East Coast, a successful sports complex with tournaments to attract families to Ocean City, attracting respectful guests and businesses that fit our brand and needs. But specific to this project, it's going to generate about seven to eight million in state revenue, and that's the kind of year-round business that Ocean City should be pursuing. And this project will also be about bringing the types of visitors that our residents want. It's going to be families who come here with their families. They travel with their families for vacations. They don't do summer vacations anymore. They do sports vacations as their summer vacation. So we'll have families instead of the H2O H2OI like crowds.
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