Ocean City Mayor and City Council Work Session – September 15, 2026

The Mayor and City Council of Ocean City, Maryland, held a work session on Tuesday, September 15, 2026, at 1:00 PM at City Hall. The meeting included approvals of minutes, a funding request from Diakonia for a supportive living campus, a wrap-up of beach code enforcement for the summer season, and the Q2 2026 internal audit report. All agenda items were addressed, with unanimous votes on matters requiring decisions.

Consent Calendar

• Minutes Approval (Regular Session #13, September 8, 2026): Approved unanimously (7-0) on a motion by Secretary Savage, seconded by Councilmember Heiser.

Public Comments & Testimony

• No members of the public wished to speak.

Discussion Items

B. Funding and Partnership Request for the Supportive Living Campus Project (Diakonia)

• Presenters: Ken Argot (Executive Director) and Amanda Shick (Development Director).
• Overview: Diakonia, which has served Ocean City for over 50 years, requested a leadership investment of $250,000 over five years ($50,000 annually) to support the first phase of a supportive living campus ($7.5 million of a $15.25 million total project). The funding would help meet a required 50% match ($1 million) for a recently awarded $2 million state grant from Maryland’s Shelter and Transitional Housing Facilities Grant Program. The campus would consolidate services (food pantry, veteran services, mobile outreach) currently scattered across West Ocean City.
• Key Statistics: In 2025, Diakonia served nearly 1,200 individuals, including 381 newly homeless, prevented 209 evictions, and provided food assistance to over 13,000 people. Its veteran program has a 95% successful rehousing rate and has already surpassed its 2026 goal of 110 veterans served (now at 136).
• Council Positions: Multiple council members (Garrick, Heiser, Mayor Mehan) expressed strong support, citing Diakonia’s track record, community impact, and effective case management. Councilmember Geig noted the naming opportunity could be offered to another sponsor if monetized. Councilmember Boos asked the Diakonia team to keep the council informed as construction approaches.
• Motion and Vote: Councilmember Garrick moved to approve the $250,000 request as $50,000 annually over five years starting in FY2028, with a mutually agreed naming opportunity; seconded by Councilmember Heiser. The motion carried unanimously (7-0).

C. Beach Code Enforcement Wrap-Up Report

• Presenter: Emergency Services Director Joe Theobald.
• Season Summary: Enforcement officers tagged approximately 3,300 unoccupied tents/canopies, achieved a 72% contact rate for violations, and spoke to about 11,500 guests, residents, and visitors regarding all beach ordinances.
• Recommendations: Theobald recommended continuing the pilot program and considering amendments to the shade structure footprint definition (previously increased from 10 to 15 feet) to accommodate newer sun shades. He suggested a slight increase in manpower but no additional equipment.
• Council Feedback: Council members praised the program’s effectiveness and the professionalism of enforcement staff. Councilmember Metrosick, who originally opposed the program, acknowledged it was implemented correctly. Theobald relayed positive resident feedback. There was consensus to continue the program.
• Outcome: City Manager Terry McGean was directed to work with Theobald to bring forward budget recommendations based on lessons learned for the upcoming budget cycle. Councilmember Savage requested Theobald return at least monthly next season.

D. Internal Audit 2026 Quarter 2 Report (April–June 2026)

• Presenter: Internal Auditor Karin Scott.
• Completed Audits:
  • Parking Operations & Revenue: No significant findings; revenues appropriately recorded and reconciled; some vendor administrative processing delays identified and communicated.
  • Convention Center Operations: No significant findings; processes are efficient but documentation of procedures should be strengthened (especially knowledge transfer as seasoned employees retire).
• Audits in Progress: Information technology (Central Square financial/planning software user access), and vendor business accounts (P-card statement reconciliation against accounts like Amazon, Staples, Walmart).
• P-Card Statistics (Quarter): Approximately $760,000 spent across 2,800 transactions; 22 transactions over $2,500 ($82,000 total); 241 cards issued; 33 follow-ups needed (sales tax, missing receipts).
• Payroll Overtime Comparison (Q2 2026 vs Q2 2025): Total overtime hours decreased from 32,010 to 31,900 (excluding a 1,300-hour rock concert event in 2025, adjusted hours 2026 were slightly higher). Police overtime saw significant decreases in leave cancel, investigations, paperwork, RAM, and training categories. Fire department overtime increased due to contract work, no part-time availability, and training of new employees. Beach patrol overtime rose noticeably (Councilmember Metrosick asked for monitoring).
• Other Activities: Scott conducts quarterly unemployment and ticket/event pass reviews, serves on pension committee, works on timekeeping system (fire department onboarding expected in upcoming payroll), and reviews Comcast franchise reports and daily transportation cash.

Key Outcomes

• Diakonia Funding: Approved unanimously (7-0) for $250,000 over five years ($50,000/year from FY2028) with a naming opportunity.
• Beach Code Enforcement: Council directed the City Manager to develop budget recommendations for continuing the program in FY2028, incorporating lessons learned and considering a slight staffing increase.
• Internal Audit: No formal action required; audit findings and recommendations noted for departmental follow-up.
• Meeting Adjourned: At 1:36 PM by unanimous consent.