On March 18th, at 9 am, the Palm Coast City Council chambers were filled with residents supporting Mayor Mike Norris and builders opposing the moratorium that Mayor Norris mentioned just two weeks ago. Supporters of both causes were present early, lining the street around City Hall and forming an incredible line at the door to the Community Wing, which was filled to standing room only.
Public comment covered many topics, with a line forming nearly the room’s length at any given moment. Topics of discussion by the residents included additional animal shelters, future building moratorium support, utility rate questions, ethics regarding the accusations and investigation into Mike Norris, and appreciation for what Mayor Norris is doing for the City. Another resident asked who gave the green light to allow Stormwater and Engineering Director Carl Cote and Chief of Staff DeLorenzo to go on air on the radio station for this “propaganda tour” regarding the Utility Rate Amendment and the utility budget. One commenter in the building community spoke on the building Moratorium, calling it a roadblock that would choke out the community. Public Comment was stopped after 45 minutes, leaving some residents to wait to share their concerns. Commentary on the dias included Pontieri’s suggestion of adding a workshop item regarding a committee to look over revising the City Charter. Any changes to the Charter by the committee would need to go on the ballot for 2026. Mayor Norris commented an apology, not just to the City residents, but to the applicants who are currently applying for the position of City Manager.
The first order of business the Council jumped into was the second read of the Utility Rate Amendment, which would increase the Utility rates for residents significantly over the next 4-5 years to pay for the Utility Infrastructure needs the City has. Before the presentation, Mayor Norris passed the gavel and made a motion to implement a building moratorium, which died with no second. Director Carl Cote made a statement before starting their presentation, reiterating that Utility Impact Fees were raised to the max last May of 2024 and legally would not be able to be raised until 2028. The presentation centered around new and updated fee structures for a multitude of services and charges. The other portion of the presentation by Director Cote was Utility Rates, which are typically reviewed about every 3-5 years when impact fees are reviewed. The presentation by Cote also contained a slide listing reasons by City Staff on the reasons for needing the upgrades and increases, which included Public Health and Safety, Superior Service, and other reasons. Cote also outlined a list of recommended Water and Wastewater R&R projects to revitalize the aging systems that are currently in place. The council wanted to hear the presentation with the second bond eliminated, which was the reason for the secondary presentation for this ordinance. If the second bond was eliminated, the fees would be evaluated down the road. Cote discussed the risks, which included FDEP violations for overflows, plant overflows, and going over the effluent disposal parameters. Cote did explain that even after modifying the project lists, and eliminating the second bond now, a future bond may still be needed. The Utility Rate Adjustment Options were then presented to the council.
The discussion moved from the presentation to the Dias, where Miller explained he felt the original plan was the best and cheapest route but was open to compromise. Pontieri opened with a brief history of the Utility Rates, discussing how instead of increasing residential rates one and a half years ago, the council chose to raise impact fees to the maximum they could be raised. Pontieri stated her issues with the original plan presented earlier this year were that she felt things were being missed. Pontieri stated that residents didn’t make the decisions to allow development, to allow rezoning to commercial and industrial, to be rezoned for more residential, so she doesn’t feel the residents should shoulder this burden. Pontieri said that she did not see much of a difference between the modified options, and she would likely choose option two because it appears to allow the least amount of increases for residents out of the three options. Gambaro made a motion to approve modified option A, with Miller as a second. The public began their commentary process, with residents lining up to share their displeasure over these increases, the lack of planning for the Utility infrastructure, and the possibility that without major planning, residents may find themselves back in this boat in the next few years. The residents also voiced their displeasure over the lack of support for a building moratorium, while a few residents stood to speak out in support of the rate increase and their agreement on the moratorium failing. The discussion moved back to the dias after public comment, Pontieri asked the council if there was any way that we could fix the utilities without accepting one of these plans. Mayor Norris said it wouldn’t be possible, and Gambaro said that doing nothing is not an option. Pontieri continued saying there aren’t 300 million dollars to cut in the budget, there isn’t 300 million in City salaries to fire, and that management has changed. Pontieri agreed that this could not happen again. Pontieri said, “If in two years after an audit, if we see there could have been efficiencies that we missed, raise Cain, hold us accountable.” Miller echoed a sentiment about being smarter with the City’s growth. The motion was made by Gambaro to adopt Modified Plan Option A, seconded by Miller, it passed with a 3-1 vote.
During final public comment, one resident took to the podium and voiced her concerns, along with an audio file that she played for all of city council and the public to hear. The audio file was a voicemail left on the Mayor’s City phone, which is passed from mayor to mayor. The voicemail was left by Councilmember Gambaro, and you can hear that audio file below. During her comment process, Leslie Johnson she spoke to Gambaro and let her feelings be known regarding his accusations again the mayor. She explained that Gambaro’s actions have not only divided the council, but the town.
Regarding the investigation into Mayor Norris over the alleged converstion, the City Attorney’s firm is finalizing a third party that will look into the allegations and bring a report to the city council.
