Port Orange City Council approves budget adjustments, FEMA grant task authorizations, and waives rezoning waiting period; holds first reading of CIP update

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Pegasus Engineering, LLC has an existing contract with the City to prepare and submit FEMA grant applications. Staff is requesting authorization for Pegasus Engineering, LLC to begin work for the eventual submittal of a FEMA Flood Mitigation Assistance (FMA) grant application to the Florida Division of Emergency Management (FDEM). The future application is to secure FEMA funding to offset the costs associated with elevating five (5) flood-prone homes in the Special Flood Hazard Area that have experienced repetitive flooding (see Exhibit 1 – Map). All 5 properties have had at least 2 recorded flood events, with some having flooded more than 4 times over the last 10–20 years. The five property owners are voluntarily participating and will be responsible for obtaining an Elevation Certificate and Structural Analysis to ensure the home can be lifted and result in a positive cost-benefit ratio, along with a percentage of the construction costs to elevate their home. Task Authorization No. 15 will not exceed $33,500.00. The Pegasus fee will be eligible for full reimbursement from FEMA as post-award management costs under a Sub-Recipient Management Cost allocation (100% Federal match). Although the FMA grant application period for 2025-2026 has not been announced, staff is requesting authorization to engage Pegasus to coordinate with the property owners, collect required documentation, complete the required cost-benefit analysis, and prepare the grant application. Once FEMA opens the application period, the submission window is typically limited to approximately three (3) months. Over the last 2-3 years, staff have received over 100 inquiries from property owners interested in elevating their homes. From the original 100 inquiries, 91 Port Orange homeowners applied to Elevate Florida for Structural Elevation, and 8 were approved for Elevate Florida grants. Staff maintains a list with approximately 83 homeowners still interested in elevating their homes and looking for grant funding to do so. With the goal of assisting the most vulnerable properties, staff identified 5 of the 83 properties for inclusion in the FMA grant application because they are classified by FEMA as Repetitive Loss or Severe Repetitive Loss properties, making them eligible for a higher percentage of federal funding reimbursement. FEMA provides 90% funding for Repetitive Loss properties and 100% funding for Severe Repetitive Loss. The homeowners who voluntarily participate in this grant application will be responsible for the non-federal cost share of construction costs, ranging from 0% to 10%. Reducing the number of properties that experience repeated flooding is a key objective of the adopted Volusia County Integrated Floodplain Management Plan and the National Flood Insurance Program’s Community Rating System (CRS). The City of Port Orange has more than 360 Repetitive Loss properties and, as a CRS participant, is required to develop a Repetitive Loss Area Analysis or Floodplain Management Plan to address areas that experience frequent flooding. A separate Resolution will be presented to City Council in early 2026 to formally authorize the City’s submission of the Flood Mitigation Assistance (FMA) grant application once the program opens. The estimated cost to elevate the five (5) participating properties is approximately $1.75 million. Since homeowners cannot apply directly for FMA funding, all applications must be submitted through the City. If approved, funding will be incorporated into next year’s Capital Improvement Plan (CIP). The FMA program operates as a cost-reimbursement grant, in which the City will procure a contractor to complete the work and will be reimbursed by FEMA upon project completion. Participating homeowners will be required to provide their cost share before construction begins. The City’s Hazard Mitigation Grant Program (HMGP) award under Hurricane Idalia for the acquisition of three properties is currently in progress and anticipated to conclude next year. The City will be reimbursed approximately $984,000 of the $1,312,000 total acquisition cost in the summer of 2026, which will help offset local funding needs associated with the proposed FMA grant. As with all FEMA mitigation grants, the review and approval process is extensive and typically spans three to five years from application submittal to grant award. | attachments=3 | reports=1

Pegasus Engineering, LLC has an existing contract with the City to prepare and submit FEMA grant applications. Staff is requesting authorization for Pegasus Engineering, LLC, to begin work in preparation for the eventual submittal of a FEMA Flood Mitigation Assistance (FMA) grant application to the Florida Division of Emergency Management (FDEM). The future application is to secure FEMA funding to offset the costs associated with the demolition and reconstruction of two (2) flood-prone homes that have experienced repetitive flooding and have been determined to be structurally unable to be elevated. The two (2) property owners are voluntarily participating and will be responsible for obtaining an Elevation Certificate and Structural Analysis to verify that the home cannot be lifted and will result in a positive cost-benefit ratio, along with a percentage of the construction costs to demolish and rebuild their house (see Exhibit 1 – Map). Task Authorization No. 16 will not exceed $24,000.00. The Pegasus fee will be eligible for full reimbursement from FEMA as post-award management costs under a Sub-Recipient Management Cost allocation (100% Federal match). Although the FMA grant application period for 2025-2026 has not been announced, staff is requesting authorization to engage Pegasus to coordinate with the property owners, collect required documentation, complete the required cost benefit analysis, and prepare the grant application. Once FEMA opens the application period, the submission window is typically limited to approximately three (3) months. Over the last 2-3 years, staff have received over 100 inquiries from property owners interested in elevating their homes. From the original 100 inquiries, 91 Port Orange homeowners applied to Elevate Florida for Structural Elevation, and 8 were approved for Elevate Florida grants. Staff maintains a list with approximately 83 homeowners still interested in elevating their homes and looking for grant funding to do so. With the goal of assisting the most vulnerable properties, staff identified 2 of the 83 properties for inclusion in the FMA grant application for demolition/reconstruction because they are classified by FEMA as Repetitive Loss or Severe Repetitive Loss properties, making them eligible for a higher percentage of federal funding reimbursement and because they are not structurally able to be elevated. FEMA provides 90% funding for Repetitive Loss properties and 100% funding for Severe Repetitive Loss. The homeowners who voluntarily participate in this grant application will be responsible for the non-federal cost share of construction costs, ranging from 0% to 10%. Reducing the number of properties that experience repeated flooding is a key objective of the adopted Volusia County Integrated Floodplain Management Plan and the National Flood Insurance Program’s Community Rating System (CRS). The City of Port Orange has more than 360 Repetitive Loss properties and, as a CRS participant, is required to develop a Repetitive Loss Area Analysis or Floodplain Management Plan to address areas that experience frequent flooding. A separate Resolution will be presented to City Council in early 2026 to formally authorize the City’s submission of the Flood Mitigation Assistance (FMA) grant application once the program opens. The estimated cost for the demolition and reconstruction of the two (2) properties is approximately $750,000. Since homeowners cannot apply directly for FMA funding, all applications must be submitted through the City. If approved, funding will be incorporated into next year’s Capital Improvement Plan (CIP). The FMA program operates as a cost-reimbursement grant, in which the City will procure a contractor to complete the work and will be reimbursed by FEMA upon project completion. Participating homeowners will be required to provide their cost share before construction begins. The City’s Hazard Mitigation Grant Program (HMGP) award under Hurricane Idalia for the acquisition of three properties is currently in progress and anticipated to conclude next year. The City will be reimbursed approximately $984,000 of the $1,312,000 total acquisition cost in the summer of 2026, which will help offset local funding needs associated with the proposed FMA grant. As with all FEMA mitigation grants, the review and approval process is extensive and typically spans three to five years from application submittal to grant award. | attachments=3 | reports=1

Pegasus Engineering, LLC has an existing contract with the City to prepare and submit FEMA grant applications. Staff is requesting approval of Task Authorization No. 17 for Pegasus Engineering, LLC, to begin work in preparation for the eventual submittal of a FEMA Flood Mitigation Assistance (FMA) grant application to the Florida Division of Emergency Management (FDEM). The future application is to secure FEMA funding to offset the costs associated with the city acquiring and demolishing twelve (12) flood-prone homes that have experienced repetitive flooding. All 12 properties have had at least 2 recorded flood events; several have flooded more than 4 times over the last 10–20 years. These properties are located in areas that provide opportunities for future stormwater improvements or access to existing and planned stormwater infrastructure (see Exhibit 1 – Map of the 12 properties). Task Authorization No. 17 will not exceed $41,680. The Pegasus fee will be eligible for full reimbursement from FEMA as a post-award management cost under a Sub-Recipient Management Cost allocation (100% Federal match). Although the FMA grant application period for 2025-2026 has not been announced, staff is requesting authorization to engage Pegasus to coordinate with the property owners, collect required documentation, complete the required cost-benefit analysis, and prepare the grant application. Once FEMA opens the application period, the submission window is typically limited to approximately three (3) months. Six of the twelve properties have been identified by FEMA as FMA Repetitive Loss or FMA Severe Repetitive Loss and have been considered to maximize federal funding and minimize or eliminate the need for local match funds. FEMA provides 90% funding for Repetitive Loss properties and 100% funding for Severe Repetitive Loss properties. The remaining six (6) properties are located within the Special Flood Hazard Area (SFHA) and experienced flooding during Hurricanes Milton and Ian. FEMA will fund 75% of the acquisition costs for these properties. Reducing the number of properties that experience repeated flooding is a key objective of the adopted Volusia County Integrated Floodplain Management Plan and the National Flood Insurance Program’s Community Rating System (CRS). The City of Port Orange has more than 360 Repetitive Loss properties and, as a CRS participant, is required to develop a Repetitive Loss Area Analysis or Floodplain Management Plan to address areas that experience frequent flooding. Over the last 2–3 years, staff have received 99 inquiries from property owners interested in selling their property to the City. Staff from Public Works, Engineering, and Community Development evaluated over 83 potential properties and identified twelve (12) properties for this grant based on their strategic location for stormwater improvements and infrastructure access for maintenance, as well as their eligibility for higher federal funding reimbursement. Exhibit 2 lists the twelve (12) properties included in the grant and provides the staff's justification for the acquisition of these properties. A separate Resolution will be presented to City Council in early 2026 to formally authorize the City’s submission of the Flood Mitigation Assistance (FMA) grant application once the program opens. The estimated cost to acquire the twelve (12) properties is approximately $4 million, of which up to $3.5 million is anticipated to be paid by FEMA. If the grant application is approved, funding will be incorporated into next year’s Capital Improvement Plan. As with all FEMA mitigation grants, the review and approval process is lengthy, typically taking three to five years from the time of application submittal to grant award. The City’s Hazard Mitigation Grant Program (HMGP) award under Hurricane Idalia for the acquisition of three properties is currently underway and is expected to conclude next year. The City will be reimbursed approximately $984,000 of the $1,312,000 acquisition cost for the three properties in the Summer of 2026, helping offset local funding needs associated with the proposed FMA grant. | attachments=4 | reports=1

The Engineering Department is requesting approval of Change Order No. 2 to the EJCDC Agreement with GPS Civil Construction, Inc. for the Jackson Street and Oak Street Drainage Improvement Project for a time extension. On July 16, 2024, the City entered into an agreement with GPS Civil Construction, Inc. for the Jackson Street and Oak Street Drainage Improvements Project. The scope of this project includes installation of stormwater piping within existing roadside ditches along Jackson Street (from Dunlawton Avenue to Canalview Boulevard) and along Oak Street adjacent to Memorial Park, relocation of overhead power lines currently situated in the ditch on the west side of Jackson Street, construction of new sidewalks and raised curbing along the west side of Jackson St. and repaving Jackson St. and Oak St. within the limits of the project. On July 15, 2025, Council approved Change Order No. 1 for $45,393 (revised agreement not to exceed $2,916,208.35). Change Order No. 1 was issued for modifications to the drainage structures by adding 3-foot concrete risers that allow the stormwater piping to be lowered to eliminate the conflict with the existing sanitary sewer laterals and ensuring proper separation between the stormwater and sanitary sewer systems. No additional time was requested. Change Order No. 2 proposes a 180-day extension to the final completion date, revising it from November 11, 2025, to May 10, 2026. This extension is necessary due to delays in the relocation of overhead power and communication lines along Jackson Street. The 180-day extension is a conservative estimate of the time required to complete the remaining work due to the uncertainty of the timing of the private utilities completing their portion of the work. Once the existing overhead lines are relocated to the new poles and the old poles are removed from the ditch by FPL and the private utilities, the City's contractor can then proceed with installing the stormwater piping along Jackson Street. The City's contractor anticipates that the stormwater pipe installation phase will take approximately 4 to 5 weeks to complete. Following the completion of the drainage installation, work will begin on the sidewalk, curbing, and repaving, which is expected to take an additional 6 to 8 weeks. The requested extension also accounts for potential delays during the upcoming holiday season and allows sufficient time for the final project closeout. There is no additional cost associated with this request for an extension of time. | attachments=8 | reports=1

Each year, the City is required to prepare a concurrency report. Concurrency is the finding that public facilities and services necessary to support a proposed development are available or will be made available concurrently with the development. All Florida municipalities are required to adopt and implement concurrency management systems in accordance with State law. As indicated in the report, the public facilities and services subject to concurrency review are at sufficient levels for FY2025/2026. | attachments=1 | reports=1

The City currently has eight retirement plans that are managed by Mission Square for the City. Any changes to these plans require City Council approval. Through the adoption of the Federal "Setting Every Community Up for Retirement Enhancement" Act of 2019 (“SECURE 1.0”) and SECURE 2.0 Act of 2022 and related legislation, additional retirement enhancements have been made available to employees. SECURE 2.0 will go into effect January 1, 2026. These new enhancements allow employees to access retirement funds early, without penalty, under various circumstances, including the following: - Distribution for victims of domestic abuse (401a, 457b plans) - $1,000 withdrawal for emergency expenses (e.g., home repairs, medical expenses) (401a, 457b) - Self-certification process for hardship (401a, 457b) and unforeseeable withdrawals (457b) - Distribution for federally qualified natural disasters up to $22,000 (401a, 457b) - Addition of an age 60-63 "Super Catch Up" provision of $11,250 per year - Distributions of $5,000 for a qualifying birth or adoption To implement these changes and comply with the SECURE ACT, an amendment to all eight Mission Square Plan documents is necessary. | attachments=9 | reports=1

The year-end budget true-up is needed to amend the Fiscal Year 2024-2025 budget for those funds which vary from the originally adopted / amended budget. This closes out the Fiscal Year 2024-25 budget as part of the requirements of Florida Statutes. The majority of the amendments are necessary for one of the following reasons: Accrual of revenues and expenses in the appropriate fiscal period of October 1, 2024 through September 30, 2025 Variations between budgeted (estimated) and actual expenditures and revenues FY2024-2025 budgeted items that have been rolled into the FY2025-2026 budget, such as capital outlay and capital improvement projects. Part of the normal course of operations at fiscal year-end is the accrual of revenues and expenses. The accruals are necessary for aligning revenues and expenses with the fiscal period to which they relate. It is also typical for some variances between actual and budgeted expenses and revenues to require budget adjustments. Furthermore, over the course of the fiscal year, various agenda items are approved by the Council that require amending the budget. This resolution formalizes the fiscal impact of those actions. The requested changes amend the budgeted revenues and expenditures of Fiscal Year 2025 within the time allowed by Florida Statute. The capital outlay and projects that will be completed in Fiscal Year 2025-2026 will be an amendment to the current year's budget by Resolution No. 25-52 that is also proposed for Council consideration as part of this agenda. Staff requests the Council amend the Fiscal Year 2024-2025 budget by revising the budget in total pursuant to itemization contained in Exhibit "A" of the Resolution. | attachments=3 | reports=1

Each year, the City carries forward encumbered funds and unspent capital project balances from the prior fiscal year to the new fiscal year. This ensures that funding remains available for items and projects previously approved by City Council but not yet completed or received as of fiscal year-end. The proposed budget amendment reflects the roll forward of encumbered funds and project balances from Fiscal Year 2025 to Fiscal Year 2026. These funds are being carried forward to complete ongoing or previously approved purchases and capital projects. The capital encumbrances being rolled forward from FY25 to FY26 include purchases approved and ordered in FY25 that the City has not yet received, including a Fire Truck ordered in May of 2025, Ford F550 with a Crane for Wastewater Treatment that was delivered in October, and Police Interceptors approved and ordered in 2025 but not yet delivered. The capital project balances being rolled forward include funding for projects that are ongoing and not yet complete: City Center Ball Field Rehabilitation Cambridge Canal Stormwater Pump Station Public Utilities Operations Facility Jackson Street Stormwater Improvements Lift Station Rehabilitations This amendment does not represent new spending authority but continues the authorization for projects and purchases previously approved by City Council. The total amount of the roll forward is detailed in Exhibit “A” of the accompanying Resolution. | attachments=3 | reports=1

Paul Salerno recently served on the General Employee's Pension Board in a member-appointed seat. Mr. Salerno is now retired, a resident of the City, and has indicated he would like to continue serving on the board in the City resident seat appointed by Council. The term is for two-years and will expire in 2027. There is currently one vacancy for this position. No other qualified applications have been received by the City Clerk's Office. | attachments=1 | reports=1

Following City Council’s denial (vote 2-2) of the Vintage Acres rezoning application at its October 21 meeting, a representative for the project attended the November 4 City Council Meeting and requested an opportunity to submit a new rezoning application for the Vintage Acres site (the “Subject Property”) prior to the 12-month wait period outlined in the Land Development Code. Under Chapter 3, Article I, Section 7 of the Land Development Code, when a rezoning application is denied by the City Council, a subsequent application for similar rezoning on any portion of the same parcel may not be submitted for 12 months from the date of denial, unless specifically authorized by the City Council. At the November 4th meeting, Council directed staff to place an agenda item on the November 18th agenda to consider the request to waive the 12-month waiting period. If the City Council waives the 12-month waiting period, the applicant may submit a new Future Land Use Map Amendment and Planned Unit Development rezoning application at any time. Any new application will be required to follow the full review and public hearing process (Planning Commission and City Council). | reports=1

Each year, the City is required to amend its Comprehensive Plan Capital Improvements Element (CIE) to include projects from the City’s current FY26-30 Capital Improvements Program (CIP). The projects copied from the CIP are primarily improvements needed to maintain the City’s adopted level of service (LOS) standards for public facilities. These facilities include water, sewer, stormwater, solid waste, roads, parks, and schools. The CIP was adopted by the City Council as part of the FY26 Operating and Capital Budgets on September 17, 2025, by Resolution No. 25-45. The FY 26-30 CIP includes various projects to support the LOS for City public facilities. The proposed amendments take these projects previously approved by the Council with the CIP and add them to the CIE. State law requires that local governments update their Comprehensive Plan Capital Improvements Element (CIE) every year to show that they have funded or planned to fund the public facility improvements needed to support their population. The proposed amendments in Exhibit A are required to be in the underline/strikethrough format. For each table or text that is to be updated from the prior year CIP (FY25 – FY29) to the current year CIP (FY26 – FY30), the deleted prior year text is shown in strikethrough ( strikethrough ) format, and the added current year text is underlined ( underlined ). Text that is not struck through or underlined remains as existing text in the FY26-30 CIE. According to Florida Statutes, the annual update to the CIE is required to be adopted by ordinance, which requires two public hearings and approval by City Council. Review by the Planning Commission is not required for the annual update to the CIE. The Staff Report is attached for more information. | attachments=3 | reports=1