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Unity, Urgency, and a $750 Million Question: Palm Bay Council Delivers on Agenda, Then Opens Pandora’s Box

Council unanimously approves budget goals, police staffing study, CATF oversight board, and $3.2 million in critical pipe replacement before a utility privatization debate reshapes the evening.

Palm Bay, FL – The February 5, 2026, Regular Council Meeting began as a model of consensus governance. Five unanimous votes dispatched the formal agenda in under an hour, establishing budget priorities, creating a new citizen oversight board, and greenlighting millions in infrastructure repairs. Then, during Council Reports, Deputy Mayor Mike Jaffe floated the idea of selling the city’s entire utility system to a private company, a proposal he estimated could be worth $750 million. The suggestion split the dais and drew an immediate warning from City Manager Matthew Morton about the real-world consequences of even raising the idea in public.

The meeting also produced a unanimous push to declare Babcock Street a multi-jurisdictional emergency, a new fire protection assessment targeting thousands of acres of undeveloped land, and interest from Space Florida in the city’s surplus real estate. What was scheduled as a routine Thursday evening became one of the most consequential council sessions in months.

The Agenda: Five Votes, Zero Dissent

The formal agenda items previewed in The Palm Bayer’s pre-meeting analysis all passed unanimously, though several carried more nuance than the 5-0 tallies suggest.

Ordinance 2026-02, the first budget amendment for the current fiscal year, passed on final reading with no public comment and no council discussion. Ordinance 2026-03, formally establishing the Citizens Accountability Task Force (CATF), also passed unanimously on final reading. City Attorney Patricia Smith noted that the only change since the first reading was an addition allowing the board to provide advisory input on ordinances at the city manager’s request. Mayor Rob Medina thanked the council for its unanimous support at both readings.

The Community Development Advisory Board received a new member, with S. Fischer appointed on a motion by Deputy Mayor Jaffe, passing 4-1.

FY 2027 Budget Goals: Setting the Guardrails

Rather than the full “Fiscal Fitness” strategic roadmap presentation, the budget discussion took the form of a goal-setting exercise led by Jessica Henchman from the city’s finance team. She presented five proposed high-level budget goals designed to guide department heads as they build their FY 2027 budget requests.

The five goals are: infrastructure maintenance and improvement; responsiveness to service requests; customer-friendly government and community engagement; economic development and a stronger tax base; and recruitment and retention of professional employees.

Councilman Mike Hammer emphasized the importance of establishing updated levels of service, particularly around fire hydrants, calling it “one of the most important things we can have in our toolbox.” Councilman Chandler Langevin acknowledged the tension between efficiency cuts and service delivery, saying the city’s internal efficiency review process is “critical, but we also have to provide those key services.”

Deputy Mayor Jaffe urged trust in the process, acknowledging that public discussion of a 20% reduction target “can create a lot of fear, especially for the employees.” Morton followed up by acknowledging the administration has “missed some opportunities to communicate” with staff about the efficiency review and pledged to roll out a better internal communication plan.

The goals were approved 5-0, setting the framework for detailed departmental budget requests that will return to council in May.

Police Staffing Study: The Foundation Before the Building

The council approved a $78,500 contract with The Center for Public Safety to conduct a comprehensive staffing study of the Palm Bay Police Department. The vote was 5-0.

Stockton Reeves, the firm’s executive director, appeared in person to outline the scope. With 37 years of experience and recent projects in Laredo, Texas (600 sworn officers) and Deerfield Beach, Florida (where his firm produced a 173-page feasibility analysis for a new municipal police force), Reeves described the study as the essential first step in a multi-phase process toward a new police headquarters.

The study will analyze call volume, patrol deployment, minimum staffing, response time objectives, investigative workload, supervision and scheduling, overtime management, and demographic and crime pattern data. Reeves explained the progression: the staffing study determines how many people the department needs today and in the future, a subsequent space needs study calculates how much building those people require, and only then does architectural design begin.

“Every square foot in a law enforcement facility has a dollar sign attached to it,” Reeves told the council. “If you don’t do it right, you have the great potential to spend a lot more time and money than you need to.”

Morton confirmed the scope includes projections over multiple years, “so we can right-size a building, do it once, and not be coming back to this conversation.” Deputy Chief Jeffrey Spears added that the IT space vacated in Building E is already being allocated, and the department expects to have “a couple of offices vacant, which is a good thing” for near-term relief.

Councilman Kenny Johnson asked whether the study’s findings would inform the future headquarters location. Morton confirmed it would, describing this as “the first step” with the space needs analysis to follow once the staffing data is complete.

Port Malabar Infrastructure: $3.2 Million to Replace Failing Pipe

The evening’s largest single expenditure was the approval of the Port Malabar Boulevard force main and water main replacement, but it did not follow the path the agenda originally laid out. City Manager Morton pulled the item from the Consent Agenda at the top of the meeting and placed it under New Business for full discussion, informally calling it “the Bill Batten provision” after the resident whose public comments frequently press for deeper scrutiny of consent items.

The total project cost is $3,234,525, consisting of $2,880,250 for the replacement of 6,700 linear feet of 12-inch wastewater force main and $354,275 for the replacement of 1,000 linear feet of 12-inch asbestos cement water main. The FY 2026 budget had allocated $1,250,000 for the force main and $255,000 for the water main. The council vote authorized an additional $1,729,525 from the Utilities Renewal and Replacement Fund to cover the gap.

Gabriel Bowden, the city’s Utilities Director, put the project in sobering context. The city has approximately 588,000 linear feet of force main, of which 12,373 linear feet is asbestos cement pipe. This single project replaces roughly 54% of that AC pipe inventory. Bowden characterized the pipe as “squishy” and noted the section sits “very high on the risk registry,” contrasting it with the Claremont wastewater spill from the prior year, which “on a risk registry would have been very low.”

Bill Batten used his public comment to challenge the cost overrun and raise equity concerns, noting that the Port Malabar neighborhood has had water and sewer access “since conception of the city,” while other areas still lack service entirely. He also flagged the looming 2030 state deadline for septic system upgrades, estimating homeowner costs at $20,000 to $30,000.

Councilman Hammer drew a critical distinction: the Renewal and Replacement Fund can only be spent on existing pipe, not new infrastructure. “We can’t spend this funding on new pipe,” he confirmed with Bowden. “This is only for pipe that’s already in the ground to renew or repair.” Mayor Medina added that prior septic-to-sewer grants were specifically directed at Indian River Lagoon protection, a separate funding stream.

The project was approved 5-0. Residents should expect traffic impacts along Port Malabar Boulevard during construction, which will be performed by Cathcart Construction Company under a piggyback contract with the City of Altamonte Springs.

Facebook Streaming: A Disclaimer, Not a Redundancy Plan

The discussion of city council meeting streaming was narrower than anticipated. IT Director Rob Beach explained that the January 8th Facebook feed interruption was isolated to that single platform. The city website and YouTube streams ran without interruption throughout the entire meeting.

Beach explained that the city’s production contractor encodes and distributes the video feed to three destinations simultaneously. Once the signal leaves the production equipment, the city has no control over third-party platform reliability. When IT staff noticed the Facebook feed had dropped approximately 35 minutes into the January 8th meeting, they restarted it, which is why two separate videos appear on the city’s Facebook page for that session.

Councilman Hammer asked whether the city could contact Facebook to prevent the issue. Beach was blunt: “There’s really no call center or anything like that. It’s a free service. It’s not a paid service. So, usually with those you get best effort.”

Deputy Mayor Jaffe proposed adding a disclaimer to the Facebook stream advising viewers that the feed may experience interruptions and directing them to the city website or YouTube as alternatives. The council agreed unanimously (5-0) and directed staff to implement the disclaimer across all streaming platforms.

Council Reports: Where the Real News Broke

The formal agenda concluded in roughly an hour. What followed during Council Reports consumed the rest of the evening and produced the meeting’s most consequential discussions.

Babcock Street: “A Liability for Emergency Services”

Councilman Hammer delivered an urgent report on Babcock Street conditions, describing weekend gridlock so severe that residents waited two hours to travel the corridor. His core concern was public safety: if an incident diverts traffic from I-95 onto Babcock and San Filippo, “emergency services will not make it to people and they will be in jeopardy.”

Hammer formally requested the city send a letter to FDOT declaring Babcock Street conditions a state of emergency. He and Deputy Mayor Jaffe reported that conversations about Babcock during their recent trip to Tallahassee were well received. Mayor Medina reiterated his long-standing position that Babcock Street should be reclassified as a state road, calling it a “multi-jurisdictional corridor” where overlapping authority creates fragmented responsibility.

The council unanimously supported sending the letter and agreed to invite neighboring jurisdictions, including Melbourne, Grant-Valkaria, Malabar, and Brevard County, to co-sign the appeal. Morton confirmed the city would pursue the multi-jurisdictional approach. The issue coincides with ongoing FDOT projects in the area, including the $63.3 million I-95 resurfacing project and the Malabar Road widening now entering the design phase.

The $750 Million Question: Selling the City’s Utilities

Deputy Mayor Jaffe then introduced an idea he characterized as “a wild idea, probably not a great idea, but an idea nonetheless.” He proposed exploring the sale of the city’s utility system to private enterprise, estimating the system could be worth $750 million based on user counts and infrastructure assets.

Jaffe framed the proposal as a solution to multiple simultaneous crises: the proceeds could “immediately pay for Babcock, Malabar, police headquarters, multiple fire stations,” and private enterprise could then “expand utility services throughout the entire city.” He emphasized that employees would be retained as part of any deal structure.

Councilman Johnson revealed he had independently raised the same idea with Morton during a briefing earlier that week, calling it “thinking outside the box.”

Morton’s response was measured but pointed. He acknowledged having managed a utility privatization once before and laid out the fundamental economics: any sale produces one-time revenue. “When that one-time revenue is gone, it’s gone. So if we build infrastructure, there is no replacement funds to maintain it.” He noted fewer than three dozen cities in the United States have privatized utilities in the last 50 years, and some have reversed course.

He then addressed the immediate consequence of the public discussion itself: “What we just did, frankly, is we just put 100 utility workers on uneasy footing.” He asked the council to make a decision that evening on whether to pursue the idea or set it aside, rather than leave the workforce in uncertainty.

Councilman Langevin was the first to decline, saying he liked the free-market concept but the timing was wrong given the demands already placed on city leadership. “I just don’t see this as another friction point that we need to add right this second.”

Councilman Hammer supported fact-finding in principle but drew a firm line: “This is something that changes the structure of our city forever and I think it needs to be taken very seriously. I think this is something that we need to get the community the facts and even put this on a ballot.”

Mayor Medina opposed the idea more directly, drawing a comparison to Florida Power & Light: “Could you just imagine one entity getting their hands and claws in on it and then we’re subject to their prices on a continual basis.” He added that raising the topic now would undermine the momentum of the city’s ongoing reform efforts.

With no consensus to proceed, the idea was tabled. No formal vote was taken. Morton was directed to continue current operations.

Fire Protection Assessment: Making Growth Pay for Growth

Morton announced that a legal notice had been published in Florida Today for a new fire protection non-ad valorem assessment targeting undeveloped properties near the St. Johns Heritage Parkway interchange. A special public hearing is scheduled for February 27, 2026, at 6:00 PM at City Hall.

The assessment would fund fire department capital needs, including stations and apparatus, for new development without raising the millage rate on existing residents. Morton explained the city had a six-day window to meet statutory requirements for the legal notice and preserve the option to begin collection in October 2026.

The affected properties encompass thousands of acres across multiple planned developments, including Emerald Lakes West and East, Ashton Park, Lotis, Wheeler Farms, Willowbrook, Palm Bay Pointe West, Calumet Farms, and others. Morton emphasized that new homeowners in these developments would know about the assessment before purchasing.

Deputy Mayor Jaffe asked whether the assessment could extend to county-level developments like Sunterra and Rolling Meadows through interlocal agreements. Morton confirmed this was being explored. Councilman Hammer requested a periodic review mechanism similar to the four-year cycle for impact fees. Morton agreed to incorporate that into the study.

Councilman Hammer offered the plainest summary: “Thank you, Mr. Morton, for doing what 156,000 people have been asking for.”

The Palm Bayer is currently seeking additional information from city leadership regarding the legal structure of the assessment and the agenda for the February 27th special meeting, and will publish a detailed analysis once the full details are available.

Space Florida Eyes the Compound

Deputy Mayor Jaffe reported that Space Florida’s CFO has expressed “strong desire to partner with Palm Bay” and is interested in the city’s compound property and surplus real estate. He described the agency’s capability with “special dirt,” referring to land designations tied to aerospace and defense development. The council gave consensus for Morton to arrange a formal presentation, which Jaffe noted would likely exceed the standard 10-minute window for board presentations.

Other Notable Items from Council Reports

Congressman Haridopolos Partnership: Both Morton and Deputy Mayor Jaffe praised the relationship with the congressman, with Morton noting he has met with the representative more than five times in 11 months, calling it unprecedented in his 27 years in local government. The congressman’s office has advanced Turkey Creek funding and road funding through the legislative process.

Septic-to-Sewer Unfunded Mandate: Deputy Mayor Jaffe reported raising the state’s 2030 septic conversion deadline with Senator Mayfield, Representative Monique Miller, and Congressman Haridopolos during his Tallahassee visit. He noted that even if funding existed, most of Palm Bay lacks the force mains necessary for lateral connections, making compliance physically impossible by the deadline.

SpaceCom Conference: Morton reported attending SpaceCom, where staff member Danielle Crotz facilitated discussions that led to potential partnerships, including a hackathon with the U.S. Space Force related to Artemis 2 challenges.

Purple Heart City Designation: Mayor Medina announced the Space Coast chapter of the Military Order of Purple Hearts has asked Palm Bay to become the first Purple Heart City in Brevard County. The council gave consensus to pursue the designation.

P&Z Appointment: Councilman Hammer appointed Tony Catalano to the Planning and Zoning Board.

Mayor’s Crime Report: Mayor Medina detailed a bank robbery at the TD Bank on Babcock Street near Palm Bay Road on February 4th. The suspect, identified as Wilbur Neves, handed a teller a note demanding $1,000 and claiming to have a firearm. Corporal Rob Vickers spotted Neves walking in the adjacent plaza and took him into custody within three minutes. The suspect had left his driver’s license on the bank counter. All cash was recovered. Neves was charged with grand theft and armed robbery. Medina also reported the arrest of a serial sexual offender identified through license plate reader technology.

Decorum and Unity: Mayor Medina opened the meeting with a statement addressing conduct at a prior session, acknowledging he had extended “grace” to a council member but that “grace was not reciprocated.” He asked all members to “season our speech with grace” going forward. The comments followed resident Butch Iran’s public testimony questioning whether council members are held to the same rules of decorum as the public.

What to Watch Next

The February 27th special meeting on the fire protection assessment will be the next major flashpoint. The scope of the affected properties, covering thousands of acres of planned development, makes this a defining vote for the city’s growth-pays-for-growth philosophy. Residents in or near the St. Johns Heritage Parkway corridor should attend or watch.

The Babcock Street emergency letter, if co-signed by neighboring municipalities, could add political weight to FDOT prioritization decisions. The police staffing study timeline will determine the pace of the headquarters discussion. And the utility privatization idea, while shelved, introduced a concept that two council members arrived at independently. It is unlikely to stay dormant indefinitely.

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