Mayor and City Council Work Session - October 27, 2026

The Ocean City Mayor and City Council held a work session on Tuesday, October 27, 2026, at 1:00 PM. The meeting included a retirement recognition, public comments, approval of minutes, a bid award, the independent auditor's report on FY2026 financial statements, the annual comprehensive financial report, a biannual update from the State Highway Administration (SHA), and an update from Delmarva Power. Several votes were taken and directives issued.

Consent Calendar

• Approval of Minutes: The council unanimously approved the minutes from Regular Session #16 dated October 19, 2026 (motion by Councilmember Heiser, second by Councilmember Buis, 7-0).

Public Comments & Testimony

• One member of the public spoke regarding agenda item 5C (Independent Auditor Opinion). He expressed frustration that his past questions about the auditor's report had not been addressed during a previous meeting and that after the meeting the auditors were unavailable. He asked to receive answers. Chris Lehman (SB & Company) later responded, offering to answer if the questions were provided in writing.

Discussion Items

• Retirement Recognition of Police Sergeant James Rodriguez: Mayor Meehan read a proclamation honoring Sergeant Rodriguez's 25 years of service. Chief Boston presented additional recognitions, including a retirement badge, commendations, a citation from the Maryland General Assembly (Delegate Wayne Hartman), a governor's citation, and a letter from President Biden. Rodriguez thanked the town, his colleagues, and his wife.
• Bid Award for Northside Park Living Shoreline: Procurement Manager Matt Perry presented the recommendation to award the bid to Environmental Construction Company for $110,850 (items A1 and A2), with expenditure approval up to the full grant amount of $167,113. The project is fully funded through a federal grant from the Maryland Coastal Bays Foundation with no additional town funds required. The council voted unanimously to award the bid (motion by Councilmember Proctor, second by Secretary Savage, 7-0).
• Independent Auditor Opinion: Chris Lehman of SB & Company reported a clean (unmodified) opinion on the FY2026 financial statements. No instances of fraud, material weaknesses, or significant deficiencies were discovered. The Single Audit is in process, pending final compliance supplement from OMB, but is on track for the March 31, 2027 deadline. All records were provided timely, and no audit journal entries were proposed.
• Annual Comprehensive Financial Report: Finance Director Sean Bunting presented the FY2026 report. Key highlights: town-wide net position increased $22.5 million; governmental revenues up $14 million due to property tax reassessment (12.5% increase), room tax rate increase to 6% ($800k increase), and higher admissions/amusement taxes ($700k). Expenses increased $7.3 million, driven by public safety personnel costs ($5 million) and capital costs. General fund unassigned fund balance rose to $37 million (31.6% of expenditures), well above the policy minimum of 17%. A discussion ensued about potentially increasing the reserve policy to 20% and evaluating an upper threshold for bond rating benefits; staff will analyze and bring recommendations to strategic planning. Pension plans performed well with 12.5% returns; the general employees pension is over 95% funded, public safety over 92% funded, and OPEB is overfunded at 158%. Councilmember Buir expressed interest in de-risking the OPEB investments given the surplus. Long-term debt increased to $160.6 million after a $47.36 million bond issuance in December 2025; credit ratings (AA+, AA, Aa1) were affirmed for an upcoming bond sale.
• State Highway Administration Biannual Update: District Engineer Mark Crampton reported on multiple projects. Key updates: a collapsed storm drain pipe at 14th Street and Philadelphia Avenue will be repaired in November; light pole failure on the Route 90 bridge was attributed to metal fatigue at the access hatch; the Route 50 bridge painting (final phase) is scheduled for winter 2027; a mastic repair demo for the Route 90 bridge surface will occur October 28, but bridge joint repairs remain unfunded and not prioritized; no northside crosswalk will be added at 5th and Baltimore; pedestrian signal at 144th Street approved but unfunded; Coastal Highway milling and resurfacing from Delaware to 60th Street is being planned with ADA upgrades; median modifications at 130th Street fire station and flooding at the crosswalk will be addressed. The Route 90 dualization is in early planning (3-year phase), with construction likely 15-20 years out. Councilmember (Hal) asked to expedite bridge joint repairs to allow repaving sooner. Discussion on covering bollards at the Route 50 bridge: fiberglass shells not available; a metal shop fabrication was suggested. The tabletop exercise at the base of Route 50 remains in early stages, with a longer timeline.
• Delmarva Power Update: External Affairs Specialist James Jones reported: the Second Street substation expansion is at 30% design; a new, more aesthetically pleasing control house rendering will be submitted by year-end; construction expected to begin fall 2027. The battery storage unit at 100th Street is functioning manually but pending fire marshal sign-off and final contractor review; full operational status expected January 2027. Jones will follow up on floodlight glare complaints from a resident (Martin) at the battery storage site; lights need to be redirected away from condominiums. Jones also noted he will provide advance notice of aerial flyovers for equipment inspections. Councilmember Secretary Savage suggested regular updates could be quarterly or biannual.

Key Outcomes

• Minutes approved (7-0).
• Bid awarded to Environmental Construction Company for the Northside Park Living Shoreline project ($110,850, with expenditure up to $167,113) (7-0).
• Direction to staff: Analyze increasing the fund balance reserve policy from 17% to 20% and evaluate an upper threshold for bond rating benefits; report back during strategic planning.
• SHA directives: Councilmember requested expedited bridge joint repairs on Route 90; staff will work with SHA to prioritize. The town will explore metal fabricated covers for bollards on the Route 50 bridge as an interim aesthetic solution.
• Delmarva Power follow-up: Jones will provide information on elevating equipment at the Second Street substation by end of business week; will also address floodlight reorientation at the 100th Street battery storage site.
• Meeting cancellation: The November 2, 2026 Regular Session was canceled due to a light agenda. Councilmember Carol Proctor expressed concern about canceling meetings that provide public comment opportunities.
• Adjourned at 2:34 PM.