During the evening business meeting on Tuesday, March 4th, the Palm Coast City Council consisting of the remaining four members, Norris, Miller, Gambaro, and Pontieri, discussed multiple issues including filling former Council member Stevens’ seat, and the 2025 Utility Rate Amendment.
Following public comment, the council discussed the process for filling the seat of former council member Ray Stevens, who, due to severe health issues, resigned on February 28th. According to Mayor Norris Ray Stevens is out of the ICU but still in the hospital. Council determined that according to the City Charter, an appointment would be made to fill the seat until the next scheduled general election, which will be in 2026. Residents who reside in District 3 of Palm Coast will be able to apply for the position, and the seat will be filled officially on April 15th, 2025.
Council continued the meeting, hearing a first read of the new 2025 Utility Rate Amendment Ordinance. Carl Cote presented the information about the Amendment, including a breakdown of the Capital costs for Utilities, with Water at 19%, Wastewater at 44%, and repair and replacement making up 37% of the total budget. These figures do not include the miscellaneous fees that are usually used to cover the costs to purchase things like water meters, staff time, equipment, or admin costs. Cote continued by outlining the expansive infrastructure that the City utilities have, and the regulatory compliance required of the municipality on a state and federal level. Cote explained that wastewater plant #2’s expansion should be complete in the next month or two, which will temporarily alleviate the capacity issues at WWTP 1, allowing time for the design and construction of the expansion for the older plant. Looking forward, Cote explained that current projections will see the City needing a third WWTP, and planning efforts would need to begin by 2035.
Cote moved on to explain the Water Treatment Plant needs; explaining the three current plants, and what is needed for continued growth and capacity. According to Cote, the City did exceed the average daily allotment of flows in 2024. The discussion between staff and council continued, with points being raised about relying on bonds, and how staff would ensure that they would not need to come back for larger and larger bonds every 4-5 years for projects. It was countered that as soon as legally possible, impact fees would be raised again, which according to Cote would help lessen the needs for bonds in the future. Ultimately, Cote stated to council, that city staff has done everything possible to mitigate the cost to residents before proposing bonds and rate increases. Cote ended his presentation to council, but reiterated that Palm Coast is under a consent order, and these repairs and expansions are projects that are required, not optional.
Public comment urged the council to rethink the rate increase in April and October of this year, which would increase utility bills over the next few years. Gambaro stated that this is not a problem “that we can admire anymore”, and stating that he will head to DC and talk to those he knows there to advocate for grant monies to offset the bonds that will need to be taken out. Miller echoed Gambaro’s sentiment, stating that he wasn’t going to vote based on being re-elected or not, but would vote for what he thinks is best for the city and the residents. Pontieri understands the dire needs of the infrastructure, but she continued her explanation stating “I do not think that the full $415 million needs to be funded through this utility rate study.” Gambaro made a motion to accept the ordinance, citing option three, and the motion passed three to one with Pontieri being the sole no vote on the ordinance.
