Deputy City Manager Lauren Johnston presented the SAP Q1 update covering 13 council priorities across four pillars.
Council discussion touched on swale regrading becoming standard operations, WAP grant funding for canal dredging, road repair and traffic light technology, the Promenade leasing progress (Fleet Feet and an ice cream shop), parks master plan refinement, and the charter review committee's forthcoming workshop.
The charter review committee report could not be presented due to a scheduling conflict; a special workshop was being arranged for the following week.
A public comment mini-session was opened and three speakers addressed the SAP presentation.
Raised a concern about deleted — not corrected — permit comments in the public record for a neighboring property, discovered through an audit log obtained via public records request.
Asked what the city's written policy is for deletion versus correction of permit notes, who has authority to remove them, and whether adjacent property owners should have transparent access to changes affecting their homes.
Also raised a traffic light communication issue where the location was not clearly identified in a city social media post.
Reported yellow and sandy water coming from a faucet during a bath.
Also described a bobcat regularly visiting her yard and preying on wildlife, which she attributed to development eliminating habitat.
Received a letter stating that land behind her home, previously described as a preserve when she purchased, is now proposed for apartments and houses.
Asked the council to stop residential development.
Described Palm Coast as a 'bait and switch,' arguing residents were attracted by coastal beauty, green space, and oak canopies but are now seeing four-story apartment complexes, loss of conservation land, beach access, and public pools.
Argued that development decisions are reducing property values and quality of life.
Expressed condolences to Vice Mayor Pontieri for the loss of her mother.
Alleged that the city charter was changed after the 2018 election without a ballot vote to eliminate mandatory special elections for a vacant mayor seat and replace it with vice mayor succession.
Alleged this makes the current council seat unlawfully held.
Also cited concerns about flight school touch-and-goes, 5G cell towers, a data center, flooding, mass development rezoning, and the charter review process.
Spoke briefly about the council taking an oath to serve the people and made observations about water department failures, flooding on Seminole Woods and Sesame Boulevard, safety devices removed from Seawoods, and campaign contributions of $7,000 received by council members from developers.
Noted that approximately one year ago the mayor elicited a disclosure that 19,000 residential units are under development order in Palm Coast but that the issue has received no policy follow-up since.
Suggested the land use administrator should report to the city manager and that council should require written justification signed by the city manager for each development order approval.
Argued that a skate park should be developed by private enterprise rather than the city due to liability concerns from injuries.
Also stated that council members who received donations from builders should abstain from voting on any building projects.
Described herself as the leader of the Seminole Woods fight against apartments, and alleged her husband was fired from the Flaggler County Sheriff's Office after six and a half years without cause or discipline, which she characterized as retaliation for the family's opposition to apartment development.
Described longstanding financial relationships between the Sheriff and a named developer through interlocal agreements.
Read portions of a longer written statement about alleged political coordination targeting Vice Mayor Pontieri and the council's composition.
Continued reading a prepared statement on behalf of Joy Cook about alleged political coordination involving a PAC, charter committee appointees, and efforts to influence a council seat election in favor of development interests.
Argued the council should have answered whether traffic studies have ever failed given all the development approvals; raised that the BJ's development on US 100 created a traffic jam despite the study.
Described personal skin condition attributed to city water quality.
Argued the city lacks water and sewer capacity for continued development and referenced a $330 million bond.
Defended the council and its work, explaining that as a former engineer review officer in DeKalb County, Georgia, he witnessed similar public frustration about development.
Argued developers have a legal right to develop their land but communities also have the right to protect health, safety, and welfare through zoning.
Urged patience and noted Palm Coast traffic is minor compared to Atlanta.
The Easthampton MPD Amendment (Application #6302) seeking to increase entitlements from 58 to 71 dwelling units with a minimum 6,000 square foot lot size was approved 4-1 on second reading.
Between the first and second readings, the applicant increased interior lot depth from 110 to 120 feet to reach the 6,000 sq ft minimum consistent with SFR1 zoning, added a public recreational trail around the stormwater pond, and disclosed a new partnership: ICI Homes would donate the entire property to nonprofit FBH Community, which builds and sells homes at or below construction cost exclusively for veterans, teachers, first responders, and healthcare workers under a 15-year restrictive covenant.
Extensive public comment from East section residents opposed the additional units, questioned the nonprofit arrangement's credibility and financial logic, raised stormwater concerns about reducing from two to one retention pond, and cited egress/emergency access issues.
The motion was approved contingent on execution of the letter of intent and restrictive deed covenants; Mayor Norris voted no and had asked the motion be tabled.
Opposed the Easthampton MPD amendment, arguing the additional 13 homes are contrary to public interest, the settlement was for 58 homes and the concept has now changed three or four times, and that the council should not approve the nonprofit arrangement without seeing formal written documentation that has been vetted across two meetings.
Expressed appreciation for the council's work.
Opposed the additional 13 homes, arguing residents have not asked for them.
Stated that 58 homes was the court-ordered amount and should remain final.
Raised concern that reducing lot sizes sets a precedent that could affect future development in Palm Coast and result in thousands of additional homes citywide.
Stated he read the settlement agreement and found no legal requirement preventing denial of the 13 additional units.
Asked whether all lots under the new plan meet the 6,000 square foot minimum or only some, and whether city staff had physically inspected the property.
Described the nonprofit housing proposal as appearing to be low-income housing that would harm property values and character in the East section, arguing it is incompatible development and not a genuine public benefit.
Criticized the idea of public access to a retention pond as a community benefit.
Owns property on Eric Drive and Eisenhower Place in Cypress Knolls.
Expressed concern that approving 6,000 square foot lots sets a precedent that could be used by the golf course to convert its land to housing.
Noted there are currently 45 homes and 4 empty lots for sale in Cypress Knolls, suggesting existing inventory could serve workforce housing needs.
Asked why ICI can donate 71 lots but not 58.
Argued that approving 6,000 square foot lots in the East section risks the golf course seeking similar rezoning to housing, that the proposal is incompatible with the neighborhood, and that the band shell/concert area has been replaced by a concrete slab for food trucks.
Stated the proposal would diminish residents' property values and rights to peaceful enjoyment.
Speaking under oath, stated she personally attended a public viewing about the development where no mention was made of donations to a family charity.
Said attendees were told 80-foot lots would be reduced to 60 feet, with homes valued at $400,000–$600,000.
Questioned whether building cheaper homes builds neighborhood value.
Asked whether a water infrastructure problem should trigger an automatic temporary moratorium.
Suggested that council members who received campaign contributions from ICI or related parties return them as a signal that Palm Coast cannot be bought.
Identified as an affordable housing advocate and asked specific questions about how the nonprofit model actually delivers affordability: whether donated land value becomes a grant toward purchase, what the actual purchase price will be, and how the 10-year hold period and covenant work if a homeowner needs to sell early.
Asked the council to ensure fine details are clearly defined before approval.
Expressed support for the council's work and noted she lives in the East section.
Stated she believes most East section residents oppose the addition of 13 homes and reduced lot sizes, and asked the council to protect their interests.
Lives in the East section.
Noted that there are many empty lots being built on nearby, making 13 additional homes more significant given the one-way-in, one-way-out access.
Pointed out that the original approved plan had three retention ponds and the new plan has only one plus a pump station, raising concerns about storm water management given issues with the existing pump station.
Argued the council is being asked to approve a legal matter based on verbal assurances and a letter of intent without formal written documentation that has been vetted through two public meetings.
Cited the lack of any written regulatory language requiring 'public benefit' for an MPD amendment.
Stated the council should table the item until the nonprofit arrangement is properly documented.
Asked about the size, type of construction, and price range of homes proposed under the nonprofit arrangement.
Asked whether this is a stick-built home rather than block construction, which would be inconsistent with the neighborhood.
Asked what the actual bottom-line purchase price would be for a veteran.
Expressed confusion about the many changes and new elements introduced between meetings — low-income housing, the nonprofit, stick versus block construction, reduction from three to two retention ponds, the golf course risk — and summarized community sentiment as opposing any additional homes beyond the 58.
Lives near the East Hampton development.
Argued the math does not support the developer's claim that 58 homes are unprofitable while 71 homes donated to a nonprofit are viable.
Questioned who will audit the project if a nonprofit is involved.
Lives in the East section.
Questioned why the item is before council given that the Planning Board previously disapproved it.
Expressed concern about egress from East Hampton in a fire emergency given only one way in and out.
Stated the court-ordered 58 homes should be final.
Asked how the city can approve a change to what is a legally binding contract for 58 homes without a separate legal process.
Asked whether all lots are now 6,000 square feet or only some.
Stated the community does not want public access to the retention pond trail and that the homes will not be compatible with the existing neighborhood.
Noted the quasi-judicial nature of the proceeding.
Raised a Florida nonprofit housing scandal involving Homerise as a cautionary example.
Proposed a motion from the floor to table the item so due diligence can be performed on the nonprofit arrangement.
Ordinance 2026-XX governing the sale of city-owned utilities was approved unanimously on first reading with an amendment removing the exception for short-term contracts of less than 10 years.
The ordinance requires a 4-of-5 supermajority council vote plus a citywide voter referendum before any utility sale or transfer, along with two public hearings, independent valuation, fiscal impact analysis, service and regulatory analysis, and competitive bidding.
Mayor Norris expressed concern that the ordinance could be repealed by a simple majority of a future council but said he would still vote for it.
Did not speak; opening of Item H noted.
Raised a concern about the ordinance's effect in an emergency scenario where the city cannot complete the bond process and a governmental entity like FGUA might need to step in; asked whether the ordinance would impede an emergency sale in a way that costs the city money.
Questioned what city utilities the ordinance covers; argued residents cannot review the item without the agenda packet being publicly available in advance.
Raised water quality concerns including Legionnaire's disease and E. coli, questioned whether water contaminant reports have been withheld, and asked where the $350 million bond proceeds are going.
The settlement agreement in Case No.
2022-CA-00773 (Holland Park splash pad litigation) was approved unanimously.
After multiple shade meetings and negotiations, the city recovered approximately $2.375 million — essentially the full $2.4 million assignable original construction cost — from the designer and contractor whose faulty initial work required a costly redesign and rebuild.
Council members explained that continuing litigation would cost more in legal fees than the marginal additional recovery possible and risked adverse fee-shifting judgments.
Resolution approving a master services agreement with PBM Constructors, Inc. to rehabilitate Master Pump Station 37-4 was approved as part of the consent agenda.
Resolution approving a piggyback contract with W.W.
Gay Mechanical Contractor, Inc. for plumbing, mechanical, HVAC, and refrigeration services was approved as part of the consent agenda.
Resolution approving a work order with Connect Consulting, Inc. for evaluation, rehabilitation, and pump replacement of Wells SW-8R and SW-29R, evaluation and rehabilitation of Well SW-32R, and rebuild of Well SW-25 was approved as part of the consent agenda.
Staff explained that well rehabilitation is a standard process cheaper than drilling new wells, that losses of 60–80% capacity over 6–8 years can be normal, and that all wells can be turned on and off remotely via SCADA.
Raised a concern that the consent agenda item for well rehabilitation shows capacity losses of over 60–80% in some wells over 6–8 years and asked whether that is industry standard or a sign of deferred maintenance.
Asked about the credentials and track record of Connect Consulting Inc. on the well rehabilitation work order.
Asked where the wells SW-8R, SW-29R, SW-32R, and SW-25 are physically located, whether they are city-owned, and what the BUILD grant for Old Kings Road is actually intended to fund given the road's history and prior grant name changes.
Resolution approving master services agreements with multiple firms for utility services contractor qualification and onboarding was approved as part of the consent agenda.
Resolution approving a piggyback contract with City of Clermont and Alternative Power Solutions, Inc. for generator maintenance and repair services was approved as part of the consent agenda.
Resolution approving expenses related to the Water Treatment Plant 3 server connection to City Hall data center was approved as part of the consent agenda.
Staff clarified this connects two existing city server rooms for IT redundancy and has nothing to do with the DC Blocks commercial data center project.
Raised concerns about the accuracy of the 66-well count, stated that wells on the west side of Palm Coast are manually turned on and off as needed and that there is no water supply capacity problem, only a wastewater issue.
Questioned why money is being focused on Water Treatment Plant 3 and the city hall data center connection instead of Wastewater Treatment Plant 1.
Objected to what she characterized as a 'toilet to tap' focus.
Resolution authorizing submission of a BUILD grant application to the U.S.
Department of Transportation for up to $25 million toward the Old Kings Road Corridor Improvements Project (estimated total cost $31.4 million) was approved as part of the consent agenda.
The city manager noted council members signed letters of support the morning of the meeting and the North Florida Regional Council also provided a support letter.
Expressed appreciation for the day's citizen participation.
Asked for an update on the traffic light at the Matanzas Woods/I-95 interchange, questioned the cost-benefit of metal detectors at city hall compared to the lack of such security at county commission meetings, noted decreasing pet registration compliance since the fee increased from $5 to $25, and suggested designating pet fee revenue specifically for Humane Society support.
Reported that he had written to Representative Cheney about Dexter's Law and received a two-page response, copies of which he gave to Deputy City Manager Lauren for distribution.
Asked the council and county to help support a related bill in the current legislative session.
Offered lighthearted animal adoption anecdotes and advocated for a larger cat socialization room in the planned new animal shelter.
Asked for an update on Project Mellin and its Florida statute non-disclosure clause, which should have expired by now.
Also asked about the status of a city grant writer position.
Reported that Z-section and Zenia-section residents received a letter from the Army Corps of Engineers about a proposal to fill wetlands on O property in Palm Coast, which she characterized as a first step toward mass development.
Encouraged all residents to submit comments opposing the fill.
Also raised concerns about the 19,000 entitled units not including all apartments, and argued affordable housing should be directed to areas along I-95 where new homes start below $300,000 rather than into the East section golf course community.
The Reporting of Emergency and Sole Source for January 2026 was noted as distributed in the council packet; no separate presentation or discussion occurred.
Requested that the SAP presentation materials be attached to the agenda so residents can review them before the meeting; argued the public cannot meaningfully engage without advance access to the full packet.
Also raised concerns about transparency regarding consulting companies and the Promenade development.
Raised concerns about the swale pilot program's connection to wastewater-to-potable water projects, 5G cell towers, a data center, flooding, rezoning for mass development, and what she characterized as an accelerated charter review.
Expressed support for family-friendly amenities including the skate park and mini golf, and thanked the council for considering recreation options for families with children.
Requested an update on the Maintenance Operations Complex timeline; raised the 2021 council cap of $350,000 on entitlement spending for Track 17; asked that parks construction contracts include performance bonds, referencing the splash pad situation.