The council issued a statement Nov. 1 addressing a mailer circulated ahead of the Nov. 3 municipal election, in which James is challenging incumbent Mayor Rick Meehan.
The mailer questions James' use of a Maryland State Police medical helicopter during an aerial storm damage assessment following September's nor'easter. It also accuses James of potentially violating ethics laws and using taxpayer resources for political purposes.
In its statement, the council said it has historically avoided becoming involved in political disputes during municipal elections but felt compelled to respond because the accusations raised questions about the conduct of the town and its employees.
"Ordinarily, the Council would not respond to campaign literature or political accusations, however, in this instance, the mailer has multiple factual inaccuracies that need to be addressed in the interest of ensuring the public receives accurate information," the council said.
The council also noted that James was accompanied by the city manager and city engineer during the assessment, making the allegations broader than a dispute involving a single political candidate.
After reviewing the circumstances with City Manager Terry McGean, the council concluded that the helicopter flight was conducted for a legitimate municipal purpose and was a sanctioned function of the Maryland State Police Aviation Division.
"Therefore, based upon the facts and circumstances known to us, we do not believe that the Town or its elected official endangered any lives, unnecessarily spent taxpayer funds or violated any State or Town ethics laws," the council said.
The council also challenged the mailer's interpretation of Maryland law, expressing concern over what it described as an inaccurate quotation from the General Provisions Article of the Maryland Annotated Code.
"The language presented does not accurately reflect Maryland state law and is misleading in its representation of the statute," the council said.
The council noted that Ocean City has an established Ethics Commission to independently review potential ethics violations and that no complaint concerning the helicopter assessment has been filed with the commission.
Despite its defense of the town's actions, the council made clear that it was not taking sides in the mayoral race.
"This statement should not be interpreted as an endorsement of anyone seeking office," the council said.
The council explained that its decision to respond was driven by concerns about the accuracy of claims involving town employees, elected leadership and Ocean City's working relationship with Maryland State Police.
City Manager Terry McGean issued a separate statement explaining that Ocean City requested assistance from Maryland State Police to assess dune damage and beach erosion following the September nor'easter.
According to McGean, the request followed a discussion with James about storm damage along the coastline.
Three town representatives participated in the assessment: James, McGean and City Engineer Brad Parks.
McGean said all three participated in their official capacities to evaluate damage to Ocean City's beaches and dune system.
"At no time before, during, or after the assessment was any political campaign activity discussed or conducted in connection with the Town's assessment," McGean said.
Photographs taken during the assessment were later uploaded to a publicly accessible online photo album and shared with town representatives, according to McGean.
McGean emphasized that the purpose of the helicopter flight was to document storm damage and assist with recovery planning, not to support a political campaign.
The mailer, which features James' photograph and the headline "Trooper 4 shows up when lives are on the line. Matt James turned it into a photo op," also questions whether the helicopter was used appropriately.
It includes the statement "We can't trust Matt James as mayor" and identifies its sponsor as "By Authority: Truth for Maryland PAC, Hugh C. Halloran, Treasurer."
The council's statement did not identify who was responsible for distributing the mailer or connect it to either mayoral campaign.
James maintained that his participation was part of his responsibilities as an elected official.
"The timing of this dishonest mailer speaks volumes. I stand by my participation in this assessment and believe the facts speak for themselves," James said.
The council maintained that its response was intended to correct what it considers inaccurate information about town operations, rather than influence the election.
Ocean City voters will choose between James and Meehan in the mayoral election Tuesday, Nov. 3. Polls will be open from 7 a.m. to 8 p.m. at the Roland E. Powell Convention Center.
