October 6, 2025 Regular City Council Meeting (2025-10-06)

REGULAR MEETING DESTIN CITY COUNCIL OCTOBER 6, 2025 ANNEX COUNCIL CHAMBERS The Council of the City of Destin met in regular session with the following members and staff present: Destin City Council Mayor Pro Tem Dewey Destin Councilmember Kevin Schmidt Councilmember Torey Geile Councilmember Sandy Trammell Councilmember Rodney Braden Councilmember Teresa Hebert Councilmember Jim Bagby Destin City Staff City Manager Larry Jones City Clerk Rey Bailey Antonio Payne, IT Specialist Public Works Director Michael Burgess Public Information Director Tamara Young Principal Planner Daniel Butler Community Development Director David Prichard HR Director Jaime Haynes Finance Director Krystal Strickland City Engineer Robert Tomasek Projects/ Grants/ Contract Manager Jeffrey Cozadd Parks& Recreation Director Lisa Firth Dep Comm Development Director Steve O' Connor Library Director Wen Livingston City Attorney Kimberly Kopp Sheri Burney, City Planner CALL TO ORDER, INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Pro Tern Dewey Destin called the meeting to order at 6: 00 PM. Pastor David J. Butler of Faith Assembly Christian Church gave the invocation, which was then followed by the recitation of the Pledge of Allegiance. AGENDA APPROVAL Motion by Councilmember Hebert, seconded by Councilmember Bagby, to approve the agenda passed 7- 0. 1. PROCLAMATIONS/ RECOGNITIONS/ SPECIAL/ PUBLIC PRESENTATIONS/ ANNOUNCEMENTS A. Proclamation- 2025 Making Strides Against Breast Cancer The Mayor Pro Tern read the proclamation designating the month of October as Making Strides Against Breast Cancer Month in the City of Destin, and then presented it to Mr. Nate Slaton, event chair for MSABC of the Emerald Coast.

B. Property Rights and Freeboard Requirements in FEMA Flood Zones Mr. Chatham Morgan, a resident of 339 Calhoun Avenue, spoke on behalf of himself and several neighbors who plan to build on Calhoun Avenue. He shared his experience of being required by the city to build at nearly 14 feet elevation, though his existing 1962 home at 9.5 feet has never flooded. He explained that FEMA sets a base flood elevation, the State of Florida adds one foot, and the City of Destin adds an additional foot beyond that. He argued that these cumulative restrictions are excessive, overly burdensome, and erode property rights. He stated that if FEMA and the state' s elevations are sufficient, they should also be sufficient for the City of Destin. He described FEMA' s flood insurance program as inefficient and said that local participation in FEMA' s Community Rating System ( CRS) trades property rights for small insurance discounts. He urged the council to amend the city' s code to match the State Building Code, which requires only one foot above FEMA' s base flood elevation, as is already allowed in Calhoun Mixed- Use and South Harbor zoning districts. Councilmember Bagby acknowledged the tradeoff between stricter elevation standards and maintaining the city' s CRS rating. He explained that the city is currently a Class 6 CRS community, which provides a 20% discount on flood insurance premiums. Reducing the elevation requirement could cause the city to lose 100 CRS points and drop to a Class 7 rating, resulting in a 5% insurance rate increase citywide. He suggested that instead of changing the code, individual property owners could " opt out" of FEMA' s program through a Section 1316 process, though they would lose eligibility for FEMA-subsidized flood insurance permanently. The Public Works Director confirmed that the city has maintained a Class 6 CRS rating since 2018, giving residents a 20% flood insurance discount. He stated that lowering the elevation requirement from two feet to one foot above BFE could result in the loss of about 100 CRS points and the Class 6 status. He explained that a Section 1316 designation makes a property permanently ineligible for FEMA flood insurance. Councilmember Geile asked whether Section 1316 would defeat the purpose of what Mr. Morgan was seeking and whether the property would still meet FEMA limits even without the additional city requirement. The City Attorney clarified that while FEMA' s limits would still be met, the city' s higher standard provides CRS points that reduce insurance premiums citywide. Reducing the freeboard requirement would lower the CRS rating and increase costs for all policyholders. She added that the National Flood Insurance Program ( NFIP) requires local governments to enforce adopted floodplain standards. Using Section 1316 to bypass these standards could conflict with the city' s NFIP participation. Councilmembers asked about thresholds for existing homes when renovations trigger compliance with new elevation requirements. Staff explained that once improvements exceed approximately 50% of a structure' s value, the property must comply with current elevation codes. Mr. Mike Buckingham, a Calhoun Avenue resident, stated that he had spoken with insurance brokers who said that only the property owner who builds to the higher elevation benefits directly from the 5% discount — not neighboring property owners. He argued it was unfair to impose additional elevation costs citywide when the insurance benefit is individual, not collective, and supported exploring other ways for the city to maintain its CRS points without adding elevation requirements. Page 2 of 9

Councilmember Schmidt made a motion to direct staff to identify opportunities to earn additional points in the CRS system to offset any potential point losses and prevent a downgrade in the city' s CRS classification, and to have this information brought back to the council at a future meeting. Councilmember Destin provided a second to the motion, which passed 7- 0. C. Harbor and Waterways Board Recommendations for Jetty Upgrades Mr. John Stephens, Vice Chairman of the Destin Harbor and Waterways Board, addressed the council about ongoing safety and maintenance issues in the Destin East Pass that have persisted since 2021. He noted that a large vessel recently collided with the jetties, and recalled a previous fatal accident nine years ago— emphasizing the urgent need for repairs and lighting improvements. He reminded the council that in November 2024, a motion was passed to prioritize lighting on the jetties and navigation markers, but no progress report has been provided since. Although the Coast Guard' s Aids to Navigation team recently repositioned buoys 1 and 2 to deeper water, other critical issues remain unresolved, including: Repairing and upgrading East Pass markers Replacing the damaged day marker at the west jetty Adding lighting to all existing buoys Keeping buoys 1 and 2 in their new locations and illuminating them Mr. Stephens compared the city' s poor lighting conditions to Orange Beach, which has a well- lit and safer channel, urging the city to meet that same standard. He presented a proposed letter from the Harbor and Waterways Board requesting State Representative Jimmy Patronis' support for these safety improvements. Councilmember Schmidt made a motion to support the navigational improvements recommended by the Harbor and Waterways Board, with staff proceeding to send a letter to State Representative Jimmy Patronis, and State Senators Ashley Moody and Rick Scott requesting support, seconded by Councilmember Destin and passed 7- 0. 2. PUBLIC COMMENTS Mr. Bob Schmidt, 833 Kell- Aire Drive, requested that the city consider adding the Ichthys Christian fish symbol) to City of Destin signs to reflect the community' s faith and values as the World' s Luckiest Fishing Village." Mr. Robert Clifford, 73 Barracuda Street, expressed concern over rapid redevelopment in the Crystal Beach neighborhood, citing the rise of large, corporate- owned vacation homes that replace smaller residences. He requested council action, including a moratorium on homes larger than six bedrooms, improved permit notification requirements for nearby residents, clarification of the Land Development Code, and establishment of a neighborhood advisory committee. Ms. Janet Malloy, 76 Barracuda Street, thanked the city for moving forward with pickleball courts in Destin. She also shared concerns regarding oversized vacation rentals negatively affecting neighborhood character and livability for full- time residents. Mr. John Dyer, 71 Barracuda Street, described an excessively large multi- story home being built near his property, including an unsafe concrete slide that was later ordered removed. He expressed frustration with permitting oversight and impacts on neighborhood aesthetics and safety. Page 3 of 9

Josh Pryor, short-term rental manager, 10002 Highway 98 East, asked where the revenue collected from the short- term rental ordinance is directed and whether hotels are subject to the same requirements. Several other speakers spoke in support of the city purchasing the property at 446 Calhoun Drive, adjacent to the Threadgill Park, to improve parking and safety for families attending Destin Little League events. 3. CONSENT AGENDA A. Service Agreement with Panhandle Animal Welfare Society( PAWS) B. Food for Thought Lease Amendment C. Request for Use of City Right-Of-Way for McGuire's Halloween Fun Run D. Approval of 2026 Okaloosa County Public Library Cooperative Agreement E. Resolution 25- 21 - Amending Resolution 17- 36- Destin Youth Council By- Laws F. Approval of minutes of September 3, 2025, Regular City Council Meeting Motion by Councilmember Hebert, seconded by Councilmember Trammell, to approve Consent Agenda items 3A through 3F passed 7- 0. 4. CITY MANAGER REPORTS A. RFP 25- 09- CD Special Magistrate Services The City Manager explained that this RFP had been issued for Special Magistrate Services, and only one response was received — from Ms. Emily Rogers. He stated that Ms. Rogers met all qualifications to serve as the Special Magistrate for the city' s code enforcement hearings. The City Manager also recommended keeping the existing magistrate under contract as a backup should Ms. Rogers be unavailable. Councilmember Trammell' s motion to accept Attorney Emily Rogers' proposal and approve her contract for Special Magistrate services was seconded by Councilmember Schmidt and passed 7- 0. B. RFP 25- 13- PW Mattie Kelly Outfall Project The City Manager presented RFP 25- 13- PW, Mattie Kelly Outfall Project, explaining that the project design was complete and ready for construction, and that the city received a $ 1 million state appropriation to fund the project. He requested approval to advertise the RFP to solicit construction bids. Motion by Councilmember Trammell, seconded by Councilmember Hebert, to approve RFP 25- 13- PW— Mattie Kelly Outfall Project—and go out for bid passed 7- 0. C. Milling/ Resurfacing/ Restriping of Selected Roadways - Batch 1, authorization to issue Purchase Orders The City Manager presented this item involving milling, resurfacing, and restriping several city roadways. This was identified as Batch 1 of the projects approved in the annual budget as part of the city' s renewal and replacement schedule, totaling about $ 1. 5 million. The roadways included Noriego Road, Magnolia Drive, Lagoon Drive, Choctaw Drive, Harbor Lane, Juniper Street, Mar Street, Evergreen, Primrose, and Oleander Avenue. Page 4 of 9

Councilmember Trammell made a motion to authorize the City Manager to issue purchase order to H& T Contractors LLC fourteen streets identified. Motion was seconded by Councilmember Hebert and passed 7- 0. D. FRS Questionnaire Resu Its The City Manager noted this was a follow-up from a previous meeting where the council requested staff to survey employees on potential participation in the Florida Retirement System FRS) and Social Security. Prior to the survey, the city hosted several informational sessions with representatives from the Thrift Plan, FRS, and Social Security to ensure employees understood their options. The survey received 83 responses: 80%( 67 employees) said they would enroll in FRS and Social Security if offered. 97. 5%( 81 employees) said these options should be offered to city employees. The City Manager reported that the city employs 115 total staff members ( full and part- time), with part-time employees already participating in Social Security. City staff estimated that joining FRS and Social Security would increase annual personnel costs by $480,000 if all full-time employees enrolled, or approximately $ 384, 000 based on the 80% participation rate. Councilmember Schmidt opposed adding costs to taxpayers, arguing the issue had already been decided and that rephrasing survey questions may have influenced responses. Others emphasized the importance of offering competitive benefits to retain staff, reduce turnover costs, and honor the city' s stated goal of providing livable wages and benefits. Several councilmembers debated whether the vote should occur only when six or more members were present to ensure a fair decision, while others argued that votes should proceed as scheduled regardless of attendance. Motion by Councilmember Braden, seconded by Councilmember Destin, to place on the next city council meeting agenda a " Motion to Rescind" the council' s previous action regarding Ordinance 25- 19-CC, which authorizes the city to join the Florida Retirement System. The motion passed 6- 1, with Councilmember Schmidt dissenting. E. Business Tax Receipt- Fiscal Year 2026 The City Manager reported that at the previous meeting, the council requested an update on the number of currently registered Businenss Tax Receipts ( BTR). The agenda report listed 953, but that number has since increased to 1, 034. According to the Okaloosa County Property Appraiser' s website, there are approximately 2, 725 properties in the City of Destin listed as businesses. The city' s new MGO software will allow monthly notifications to be automatically sent to any businesses not yet registered, reminding them of their delinquent status until they either comply or are removed from the database. The system can also generate letters in addition to email notices, and staff are exploring the possibility of using a county- style postcard with a QR code for easier payment. However, Destin' s fee structure is more complex than the county' s since it includes multiple fee categories, which has made the transition between systems more challenging. Efforts are ongoing to ensure that re- registrations are properly categorized and billed, with improvements expected to be fully implemented for next year' s renewals. Page 5 of 9

Staff noted that a flaw in the previous system allowed unregistered businesses to stop receiving renewal notices altogether, which contributed to the drop in compliance. The new approach aims to recapture those missed businesses and significantly increase registration numbers. Council members asked how many BTRs were sold last year; staff estimated approximately 1, 200. While the city is still below that level, progress is being made. It was also noted that the current system lacks a " renew" function, requiring all users to reapply as new. Staff acknowledged this glitch and confirmed it will be fixed in the next renewal cycle. F. 446 Calhoun Proposal/ Parking at Threadgill The City Manager presented this item concerning the proposed purchase of property at 446 Calhoun Drive to create additional parking for Threadgill Park. He reported that the proposed purchase price is $ 400, 000, with an estimated development cost between $ 400, 000 and $ 600, 000, depending on whether a gravel or paved surface is chosen. This brings the total project cost to approximately $ 800, 000 to $ 900,000. The proposed lot could provide about 65 parking spaces, costing an estimated $ 13, 000 to $ 15, 000 per space when including both land acquisition and construction. Staff also examined a nearby property at Calhoun and Hickory Streets that could potentially provide about 30 spaces, but it includes drainage systems and wetlands that would make development costly due to required mitigation and permitting. Therefore, staff believes 446 Calhoun is the more feasible option. Funding for the project would come from the city' s parking fund, which is supported by parking revenues rather than general tax dollars. Several council members raised questions about notifying nearby property owners of the potential purchase and rezoning, noting concerns about buying the property before public input. Staff clarified that no notifications are required before purchase, but at least four public hearings would be held later as part of the land- use and zoning change process. Council members agreed it would be prudent to notify neighbors sooner and to include this direction in the motion. Other concerns included ensuring a Phase 1 environmental inspection, verifying whether zoning and land- use changes could be completed, and determining development feasibility within the 30-day due diligence period. Council members also requested clear timelines, environmental testing, and cost comparisons with other potential parking solutions before final approval. Several council members emphasized the need for additional parking at Threadgill Park, citing frequent overflow into right- of-ways and sidewalks. It was noted that the site serves the community broadly and that volunteers have already offered to help with land clearing. Others suggested optimizing existing spaces first and ensuring public support before committing funds. Councilmember Schmidt moved to authorize the City Manager to enter into a contract for the potential purchase of the subject property, with the following revisions and contingencies included in the contract: The adjoining property owners shall be notified of the City' s potential purchase of the property. The contract shall include a thirty- day feasibility period, during which the city may terminate the contract if the property is determined to be uunsuitable for development as a parking lot for any reason. Page 6 of 9

Closing on the property shall be contingent upon a successful zoning change authorizing the intended use of the property as a parking lot. The contract shall include a provision for an environmental inspection, and the purchase shall be contingent upon the inspection results being favorable to the city. The total purchase price of the property shall not exceed the appraised value. The revised contract, incorporating all above contingencies, shall be brought back before the city council for final review and approval prior to execution. Councilmember Geile provided a second to the motion, which passed 6- 1, with Councilmember Braden dissenting. G. Joe' s Bayou Update The City Manager noted that the Joe' s Bayou redesign and redevelopment project is progressing, with design plans now 90% complete. City staff and the DEP are coordinating on a pre- application meeting to begin the development order process. However, progress is currently slowed by delays in obtaining the required Army Corps of Engineers permit, which has been further impacted by the federal government shutdown. No timeline has been provided for when the permit may be issued. Additionally, some funding issues remain unresolved. As a result, significant progress on the project is not expected until at least 2026 or 2027. In parallel, work continues on drafting an ordinance related to Joe' s Bayou. The city had requested supporting data on the frequency and severity of safety or behavioral issues in the area, but the Sheriff' s Office indicated they lack the capacity to collect that information. To address this, the city plans to engage local residents to submit photos and videos of unsafe or inappropriate activities via email, creating a database of evidence. Once sufficient documentation has been gathered, staff will use it to support the development of the ordinance and bring it back to council for consideration. H. Operations Financial Report- Informational Only I. Draft Minutes of Standing Boards& Committees - Informational Only J. Announcements: 1) Leadership Academy& Council Visioning Session - Ms. Gunderson, who previously facilitated the city' s Leadership Academy for employees, has agreed to lead next year' s City Council Visioning Session. She will also conduct interviews with staff to gather feedback, as well as individual interviews with Council Members to hear their thoughts prior to the session, which is planned for January or February. 2) E- Bike Workshop - During the recent e- bike meeting in Niceville, participants agreed that a unified ordinance is needed. The City Manager of Niceville is currently developing an ordinance and will share it with other municipalities to ensure consistency in e-bike policies. The goal is to establish similar regulations across the county and all municipalities, supported by education and communication efforts. Page 7 of 9

3) Joe' s Bayou Community Outreach- The public is encouraged to send photos, videos, questions, and concerns related to Joe' s Bayou to oublicinfo( iicityofdestin. com. The city is partnering with radio stations, law enforcement, and newspapers, and utilizing the social media platforms to help spread the word. 4) A community yard sale will be held on Saturday, October 11, from 8: 00 a. m. to 12: 00 p.m. at the Destin Community Center. 5) All city facilities will be closed on Monday, October 13, in observance of the Columbus Day holiday. 6) The city' s Annual Open House will take place on Wednesday, October 22nd, from 11: 00 a.m. to 1: 30 p.m. at the Destin Community Center. The event will feature music and food for the public to enjoy. Free paper shredding will also be available from 9: 00 to 11: 00 a.m. at City Hall, and from 11: 00 a.m. to 1: 00 p.m. at the Destin Community Center. 7) The City of Destin received the annual Friend of the Watershed Award from the Choctawhatchee Basin Alliance in recognition of its long- term commitment to improving local waterways. 5. PUBLIC HEARINGS 6. COMMENTS/ PRESENTATIONS FROM MAYOR, COUNCIL, AND CITY ATTORNEY A. Councilmember Braden B. Councilmember Trammell C. Councilmember Bagby E. Councilmember Hebert 1) Friday, December 26, 2025 ( Day after Christmas) Motion by Councilmember Hebert, seconded by Councilmember Bagby, to authorize an additional paid time off for all city employees on Friday, December 26, 2025, the day following Christmas Day, passed 7- 0. F. Councilmember Geile 1) Projects Status/ Updates 2) Appointment of member to the Harbor CRA Advisory Committee Motion by Councilmember Geile, seconded by Councilmember Hebert, to remove Casey Jones from the Harbor CRA Advisory Committee, passed 7- 0. Motion by Councilmember Geile, seconded by Councilmember Hebert, to appoint Sheridan Gibson to the Harbor CRA Advisory Committee passed 7- 0. G. Councilmember Schmidt Councilmember Schmidt requested that the topic," Charter Review Committee" be placed under his name on the October 20' x' council meeting agenda. Page 8 of 9

H. Mayor Pro Tern Destin Councilmember Destin made a motion directing city staff to reach out to the appropriate state agencies and express the City of Destin' s support for the state' s acquisition of the property adjacent to Noriego Point for conservation purposes. The motion further stated that the city looks forward to collaborating with whichever governmental entity assumes responsibility for the property' s management and development, ensuring the land remains preserved and used for conservation rather than intensive development. Motion was seconded by Councilmember Trammell and passed 7- 0. Councilmember Destin moved to direct the City Manager and the City Attorney to contact the group of residents from Crystal Beach who attended the council meeting to discuss the limitations the city faces due to state preemption on regulating short-term rentals and to explore possible alternative actions the city may take that would not conflict with state law; and to designate Councilmember Bagby as the council liaison for this contact. Councilmember Trammel provided a second to the motion, which passed 7- 0. K. City Attorney 7. PUBLIC COMMENTS ADJOURNMENT Having no further business at this time, the meeting was adjourned at 8: 55 PM. Po) Dewy Destin, Mayor Pro Tem/ y - ATTEST: Rey Bat ey, City Clerk Page 9 of 9