Workshop Meeting — Tuesday, April 14, 2026

Development concerns including Section 8 housing proliferation, 5G cell towers near schools and fire stations, airport expansion, a data center with only 15 jobs, overflowing manholes, herbicide spraying in swales and canals, reclaimed wastewater irrigation, a wastewater-to-potable-water pilot program, boil water notices, an appointed council seat, the city charter including the deputy manager position and prior charter amendments, and the charter review committee process.

Request to add end-of-meeting public comment opportunity to council workshops; and inquiry about a Republican gubernatorial candidate's statement that municipalities exist only by virtue of state authorization, asking council members for their views on home rule.

Motorcycle racing on Palm Coast Parkway between the Wawa and the Hammock bridge occurring on weekends and weekday evenings, lack of sheriff enforcement presence, safety concerns given prior fatalities, and a request for the city to contact Sheriff Staly about increased patrols.

Corroboration of the motorcycle racing problem on Palm Coast Parkway near the Hammock bridge, noting audible high-speed activity from nearby residence and the existence of a memorial plaque for a prior fatality in the area.

PFM Asset Management representatives Danessa Matts and Leslie Weber presented the annual investment report as of December 31, 2025. The long-term portfolio of approximately $90 million is roughly half in U.S. Treasuries and 25% in corporate notes, with an overall credit quality of AA and yield at cost of 4.23%, outperforming the benchmark by approximately 40 basis points. Interest earnings for the year totaled approximately $3.76 million with total accrual-basis earnings near $4 million. Finance Director Helena Alves confirmed the city is in the pre-closing phase for its municipal bond issuance, with final closing expected the following week and funding by April 23. Bond proceeds will be invested in a separate portfolio managed in coordination with utility cash flow needs.

Parks and Recreation Director James Hurst and Recreation Manager Dennis Reagan presented the Q2 update for Palm Harbor Golf Club. Key changes implemented since October 2025 include a fee increase (average round up from $28.22 to $37.61), elimination of free golf on pass holder cards, a walkers punch pass program (152 sold at $200 each), limiting morning 9-hole play, hosting tournaments generating nearly $100,000 in economic impact, and initiating hole sponsorships. Year-to-date revenue as of the presentation date reached $1.28 million, with a projected full-year surplus of approximately $72,625. Upcoming capital needs include a pump station replacement ($278K budgeted) and 50 golf cart replacements (~$294K net). Council praised the turnaround and raised questions about cart leasing vs. purchasing, whether all costs are fully captured, and the potential for an enterprise fund structure.

Director Hurst presented results of the RFI for Palm Harbor Golf Club management, which drew eight submissions from operators including American Golf Corporation, Bobby Jones Links, Troon Golf, and others. Proposals ranged from full management to hybrid and lease arrangements; all expressed support for resident affordability and public transparency. Council debated whether to proceed with an RFP for management/lease or continue city operations. Vice Mayor Pontieri and Council Members Sullivan and Miller expressed opposition to an RFP at this time, citing staff performance, negative signals to employees, food-and-beverage constraints from the Loopers lease, and lack of capital investment commitments in RFI responses. Mayor Norris and Council Member Gambaro were open to exploring an RFP with strict parameters. One public commenter (Greg Evans, affiliated with Palm Harbor Golf Course LLC) presented a detailed investment proposal. After public comment, the apparent consensus shifted against proceeding with an RFP; the city manager was directed to ensure golf course revenues are reinvested in the course and to research whether an enterprise fund designation is feasible.

City Attorney Marcus Duffy presented three proposed charter amendments drafted per prior council direction, with Supervisor of Elections Katie Lenhart and bond counsel Chris Roe present. Amendment 1 would add a process requiring three censures and a supermajority vote before council may send a letter to the governor requesting removal of a member, with specified grounds including felony conviction, absence, and ethics violations. Council requested clarifications including: separating felony grounds from the three-censure requirement, specifying the censures apply per term, defining 'meetings' to include workshops, and clarifying who determines ethics violations. Amendment 2 would establish procedures for filling council vacancies based on timing relative to the next general election, with election blackout periods. Council found the draft overly complex and directed the attorney to use a 'scalpel approach,' working with the Supervisor of Elections to fix only the core gap exposed by the 2024 vacancy situation without creating additional complications. Amendment 3 would raise the unfunded multi-year contract limit from $15 million/36 months to $30 million/30 years with annual CPI indexing. Council accepted this amendment with only minor corrections noted. All amendments are targeted for the November 2026 ballot with an August deadline.

Community Development Director John Zobel and Economic Development Manager Craig McKinney presented an overview of the SR 100 Corridor CRA, which sunsets in 2034. The CRA has significantly underperformed projections: cumulative property values are $286 million vs. a projected $1.1 billion, and annual revenue is $2.9 million vs. a projected $7.6 million. Total revenues collected since inception are approximately $33 million vs. a projected $161 million. Remaining projected revenues through 2034 total approximately $27 million. Staff recommended hiring a consultant (Kimley-Horn at a revised scope of ~$96,770) to perform a comprehensive review, TIF analysis, and updated strategic plan. The Town Center Boulevard road condition and YMCA funding from CRA were also discussed. Council reached consensus to proceed with the consultant contract and directed staff to ensure the YMCA CRA allocation is reviewed before further commitment.

Planning Manager Long Fong and planner Estelle Lenz presented development options for approximately 1,181 originally platted ITT duplex-zoned lots. Current code allows a duplex structure or a split lot with a duplex structure. Option 3 would allow splitting any duplex lot and building a single-family home on each half (40-ft min width, 4,000 sq ft min lot, 1,000 sq ft min living area, one-car garage, 5-ft interior setback). Option 4 would restrict that to affordable housing with AMI and affordability period requirements. Council did not reach consensus to immediately adopt an ordinance. Concerns were raised about impact fees, PEP tank duplication, neighborhood compatibility, property values, and enforcement of affordability restrictions. Council directed staff to provide ownership data for the duplex lots (identifying clusters) and to bring the matter back alongside the housing study in May, at which point council will give direction on whether to proceed via ordinance or LDC update.

Utility Director Brian (last name not stated clearly) and Finance/Public Works Director Carl presented the 10-year Capital Improvement Plan. The utility CIP totals approximately $590 million over five years, funded through bond proceeds ($283M), capital facilities charges ($130M), R&R reserves (~$117M), grants ($11M+), and SRF loans. Major projects include expansion of Wastewater Plant 1 from 6.83 to 10.83 MGD (~$180-200M), rehabilitation of Water Treatment Plant 1 (~$50M), new wells, Water Plant 3 expansion, and I&I/PEP system work. The non-utility CIP covered the Capital Projects Fund (small county surtax, ~$5M/year), park and fire impact fee funds, transportation impact fee funds including the $126M Loop Road appropriation, stormwater, and the CRA. The pavement management program was noted as underfunded. Council expressed particular concern about water quality from Plant 1, emphasizing it as a top resident priority. Transportation fairness with FDOT/TPO was also noted as an ongoing advocacy issue.

IT Director Doug Atkins presented a software strategy and risk mitigation plan developed through an Application Portfolio Management framework. An inventory of approximately 100 city applications was scored on business value and technical fit using Gartner's TIME model. The analysis identified fragmentation in work orders, asset management, inventory management, and performance reporting as the top operational gap. This finding aligned with Plante Moran's risk assessment, which ranked inadequate asset tracking as the city's second-highest risk. Staff recommended pursuing an Enterprise Asset Management (EAM) platform as the top software priority, estimated at approximately $450,000 for first-year implementation and $150,000 annually thereafter. Council reached consensus to proceed with developing an RFP for the EAM platform, to be incorporated in the upcoming budget process, with a request for ROI analysis to accompany the RFP when it returns.

Described a drainage event on April 8, 2026, during which the swale in front of his property filled to near road level while an adjacent property built approximately 3 feet 2 inches higher continued shedding water onto his lower property after the swale was already at capacity. He filed a Palm Coast Connect request that was closed the next morning with a generic response about standing water being normal. He questioned why the city's technical manual limits on elevation differences between properties are not being enforced on new construction, citing 140 Frontier as a property appearing to exceed those limits.

Noted that the real estate market has slowed considerably and urged council to factor that into deliberations; commended the council for unanimously and independently agreeing the golf course should not be sold; proposed that council direct the city attorney to place a perpetual covenant on the 147-acre golf course property restricting it to recreational use, to provide a permanent legal foundation for staff and future councils.

Positive comments about the Citizens Academy program; suggested it be offered more than twice per year (currently spring and fall) to allow more residents to participate.