In a medium bowl, combine the shredded potatoes with the onion, bell pepper, egg and garlic. In a small bowl, combine the flour, Old Bay, celery seed, paprika, mustard and pepper. Sprinkle the seasoning into the potato mixture and stir to combine. Transfer the mixture to a fine mesh strainer and set over a bowl to drain out some of the moisture.
Generously coat the bottom of a 12 inch skillet with oil (3 tablespoons or more). Set over medium high heat. When the oil is shimmering, use a ¼ cup measure to portion out the mixture into the pan, making sure the latkes don't touch each other. You should be able to cook three at a time. Flatten slightly with the back of the measuring cup or a spatula.
Fry the latkes until golden brown, 2 to 3 minutes per side, adding fresh oil to the pan between batches as needed.
Transfer the latkes to a paper-towel-lined plate to drain. Serve immediately with sour cream and/or applesauce. Sprinkle chives on top, if desired.
Notes
Food processor method: Cube the potatoes instead of shredding them. In a food processor fitted with a metal blade, pulse the potatoes 3 to 4 times. Add the onion, garlic, egg, and bell pepper, and pulse several more times to incorporate the ingredients. Add the seasonings. Puree until just smooth and fluffy (the mixture should still retain some texture). Do not over mix. Transfer the mixture to a fine mesh strainer and allow to drain. Proceed as directed above. Note that this version turns out a latke that is more of a cake than a hash brown- consistency.