Disappointed by the performance of its lobbyist in Tallahassee despite netting $82 million in state appropriations this year, the Palm Coast City Council this morning was on the brink of firing Southern Group before pulling back and agreeing to give the firm–one of the most powerful in the state–a chance to explain itself.
Council members critical of the lobbyist firm spoke as if legislative appropriations were either the city’s due, or that securing them were a science that lobbyists know or don’t know. But that’s more fancy (or hubris) than truth in a whorl of politics, trade-offs and, in the governor’s case, often inscrutable vetoes.
The lobbying firm is paid $60,000 a year. Its contract is up at the end of the year. The almost-firing was prompted by Council member Theresa Pontieri, who was bitterly critical of Southern Group’s work method and spoke in disbelief that the city could not secure more than what turned out to be less than a third of the money it had sought from the Legislature.
The city’s wish list had totaled $293 million, including money for drainage, water projects, road projects, a YMCA in Town Center and the colossally expensive “western expansion” loop road connecting Matanzas Woods Parkway to Palm Coast Parkway through empty land, primed for development–almost all of it belonging to Rayonier, the Jacksonville-based timber company.
Once House and Senate completed their conference and Gov. Ron DeSantis completed his vetoes, which ravaged Palm Coast’s and Flagler County’s requests, only a portion of the requested money for the western expansion got through–what turned out to be a gift to Rayonier probably more than to the city, since it is all developable land that Rayonier can now market, without having to pay for that groundbreaking infrastructure, as developers often have to on virgin land.
Rayonier has been a steady, if not especially generous, contributor to Rep. Paul Renner’s campaigns over the years ($5,000 since 2016, according to Division of Elections records). Renner as Speaker of the House had been Palm Coast’s great hope as a siphon of state appropriations, but his power in the end could only go so far. The City Council couldn’t very well take its frustration out on Renner or Sen. Travis Hutson, both of whom are term-limited. It did so on Southern Group, the lobbying firm the council hired in 2017 (when “Strategy” still demarcated its name) and signed again in 2020, with Council member Nick Klufas part of the approving majority both times.
In 2020, Southern Group was the only firm to respond to the RFP. “Whenever we do go back out to RFP, just wanted to have that in the back of your minds for consideration,” Interim City Manager Lauren Johnston cautioned the council.
Pontieri was backed by fellow-council members today except for Klufas, who was incredulous at that attempted firing, without giving Southern Strategy a chance to defend itself (he called it an “exit interview”), and Ed Danko who, uncomfortable with assumptions, suggested a workshop first even as he agreed that “they failed us.”
“If nothing else, we send a message to them or any future lobbyist group that we expect more in customer service,” Danko said.
“You can’t just present a bevy of things that you’re asking for without prioritizing something. So at some point, our lobbyists had to have said, Hey, we want to prioritize XYZ out of all the projects that were put forth,” Pontieri said. “It is my assumption that the road west was prioritized. And if that was done, it was done–not at the request of this council, and that’s a problem. So because of that, I am moving to not renew the Southern Groups contract.”
Pontieri’s assumption was a big one in light of the incantation-like references to the western expansion by Mayor David Alfin, not just in the months leading up to the legislative sessions, an expansion he saw as his legacy–in preparation for which he’d enrolled in a University of Florida master’s program in planning, with top administrative changes, such as Virginia Smith switching from City Clerk to Land Management Administrator to handle “significant upcoming projects,” as a city spokesperson put it. Those significant projects are the westward expansion.
If the council as a whole had not formally prioritized the westward expansion roads, neither did it place speed humps in the way of Alfin’s endless and self-aware impersonations of Horace Greeley. Lobbyists are paid to read their bosses’ intentions. Southern Group could hardly have been blamed for picking up on Alfin’s unobstructed westerlies. But Pontieri wasn’t about to blame the mayor, either.
She made a motion not to renew Southern Group’s contract and issue a request for proposal for new candidates, with Danko seconding, at least for the sake of discussion. Pontieri was especially dismayed to have lost on all water and drainage projects. “We asked for $35 million for Water Treatment [Plant] Number 1 capacity expansion,” she said. “We got $1 million, and then that was nixed. That was vetoed.”
Yes, but if she heard from Bunnell or Flagler Beach officials even before hearing from Southern Group (to say nothing of Palm Coast’s previous failed attempts to secure money for its big utility projects), those officials would describe the same history of failures in their infrastructure requests, including all of Bunnell’s requests this year and Flagler Beach’s request for a $1.65 million drainage project for Lambert Avenue, a roadway along the Intracoastal that increasingly approximates Venice’s Grand Canal during major storms.
Klufas wasn’t so sure that Palm Coast didn’t cash in: $82 million in a single year was a record haul, after all. “Why don’t we actually have them here to clear up the assumptions,” Klufas said of the lobby group. “I think that there’s a responsibility for us to figure out what happens so that we can prevent this in the future. I would concur that we definitely didn’t get everything that we wanted, and classifying it as a matter of success: I would like to hear from their mouths to us that it was not a success.”
Pontieri said her biggest issue was the matter of priorities. Southern Group never asked the council formally: what are your priorities? “We were never asked that question by the Southern group. I have a very large problem with that,” Pontieri said, which raises an issue different from her earlier assumptions: if the work method failed the council, it’s no longer about politics or intangibles, but about failed expectations.
Klufas cautioned against getting rid of a lobby group as powerful and effective as Southern Group. “There is a strong correlation between who represents you and what you get done,” Klufas said, addressing Pontieri. “You’re saying fire Southern Strategy Group. What if they are representing some of the largest players in the state and you are unintentionally–I don’t want to say hamstringing, but potentially hamstringing the city’s future asks, because we’re treating a lobbyists group this way.”
“If they think they’re untouchable, or they’re unfixable or that their contract is automatically going to be renewed, then what is their incentive to do what we’ve asked them to work hard for us,” Pontieri said.
When Klufas brought up Chief of Staff Jason DeLorenzo, the administrator closest to the lobbying firm, as another voice that should be included in the discussion, Pontiri said she didn’t want him involved because she didn’t want him taking the blame. DeLorenzo was not in the room. He’s on vacation.)
Pontieri altered her motion: it would be to not renew the contract rather than to fire the lobbyists. But when Klufas made a parallel between the way Southern Group was being summarily dismissed of future consideration with the way the council fired Denise Bevan, the former city manager–a firing Pontieri criticized for its suddenness–Pontieri withdrew her motion and agreed to the firm making its case at a workshop next week.
JimboXYZ says
Hard to see a record haul of $ 82M for projects that are so grossly underfunded across the board that the $ 82M is a failure. Very few projects were totally funded, if there were any. And the higher priority projects you’d be hard pressed to find even 1/2 funded. The $ 35M project they got $ 1M & that got vetoed. I’m on record as the Westward expansion, I’d rather not get a penny for that if it meant funding something that would’ve funded any aspect of the Alfinville Growth Plan.
“We asked for $35 million for Water Treatment [Plant] Number 1 capacity expansion,” she said. “We got $1 million, and then that was nixed. That was vetoed.”
This is a failure that starts in DC as “Build Back Better”, that’s Biden-Harris. Then it fails at the State Level for being a day late on millions of dollars short. After that there’s County & City failures. And in the end, we still have a wish list that is grossly underfunded with only the masses of taxpayers to get bilked for. Quality of Life/Vision of 2050 failures & incompetence & it’s not even 2025. Can’t imagine what the next 25 years of this is going to look like.
Bob J says
You show me where the Biden-Harris is involved in the short fall. You are so *ell bent on your MAGA status. Take your blinders off. Mabey its just our Republican local government that includes Developers and Realtors looking to cash in on all the money grabs. All the new developments don’t contribute to infrastructure because the city cuts deal with them. All the development deals should have covered the all the infrastructure upgrades. Our local govt can’t manage anything.
Doug says
Take your custom made Democratic blinders off.
Jim says
Republicans voted in this budget – they are in control of the legislature. The Republican governor is the one who approved or vetoed the items the legislature sent him. The “asks” were from the Republican governments in Palm Coast, Bunnell and Flagler County.
So how you can somehow tie this into “Build Back Better” is absolutely beyond any thinking human being. Nothing Biden has done had anything to do with what the state and local officials have been spending money on. We would all be better off if people like you would just try to get your facts right before you go off on your wild “anti-Biden” rants.
Florida’s mess is 100% Republican manufactured and [under] funded.
Truth be told says
David Alfin and Jason Delorenzo took numerous trips to Tallahassee to secure the road west. It’s on their public calendars.
Residents, enjoy paying for a water treatment facility expansion and upgrading.
Callmeishmael says
Shouldn’t the new people pay for their own turd barrels? If our existing turd barrels are too small to make room for the new people, doesn’t that qualify as a necessary expansion of the turd barrel system, which can be paid through impact fees? We’ve been paying for our turd barrel for years. Sorry, but if you want to move here, pay for your own turd barrel. Ours runneth over.
Celia Pugliese says
As usual Pontieri is totally justified regarding a list of priorities totally ignored by the lobbyist. Palm Coast didn’t get our old infrastructure needed funds but Rayonier got their vacant lands infrastructure upgraded to develop. Same with county didn’t get what the residents need but got 5 millions for an airport terminal that residents never use as we can get at FIN airport a tkt to fly anywhere. All benefitting the affluent in our depleted taxpayers pockets. By the way the toxic smoke from greedy developers parcel burning again this time, brought about by resident George Mayo. Meanwhile I was told by the chief that Department of Forestry and EPA have to agree in allowing for our city to enact its ordinance of No Parcel Burning Whitin City Limits! EPA agrees and forestry Dept say NO. Meanwhile Palmcoasters continue being smoked! Is a matter of Health folks at the Forestry Dept! What a despicable shame treating Palmcoasters like are Children of a Lesser God. Then this lady demanding a variance impossible to give as seriously affects her neighbors properties…Lets do not open a new can of worms and just say NO is a city ordinance! As usual Barbara Grossman is right on point we have to leave 15 feet at least from clearance from the seawall property line to build or rebuild any auxiliary structure (docks, boat houses or decks). I my 115 seawall length I could only use one third of it for dock and boat house. What makes this lady and her attorney think she can rebuild over an easement of at least now 6.5 feet minimum? Jeez people come here and think they can do what they want and we do not have codes to satisfy them. I would have like to know what was the end of the discussion as I lost connection with the live broadcast and now yet not posted in You tube. By the way todays meeting again too low sound again, cpuld barely hear! Where are all the IT or techs six figures we pay in the city? Fix the meetings transmission sound!
Deborah Coffey says
Apparently, the Council doesn’t understand what Fascists do when they have power? Every city, every town, every county and every person that voted for Ron DeSantis is getting exactly what they voted for! Maybe they’d better think twice about voting for Trump. Fascists make people poorer and amass huge fortunes for themselves. Just look at North Korea and Russia.
Gus says
And fascists put their opponents in jail.
Steve says
Felon34 Did it to himself. Do the Crime do the time. Dumpy is his own worst enemy. Get over it
Greg says
All you people do is cry for more money. For Christs sake, grow up and live within your means and your budget. They build about 100 homes a month, each paying big taxes. Quit the crying!
Celia Pugliese says
Greg what is your take from all these housing with insufficient infrastructure and services? Deborah Coffey is right. Maybe you are one of many contractors, investors or workers financially satisfied by these ill planned housing? Now we should be installing bear or wildlife crossing signs in Rte 1 and all mayor roads given the tragic deforestation allowed to taking place to protect our wildlife. Bears , deer and even gators are being run over in our roads now. Took me several years to get the deer crossing signs in Palm Coast Parkway and funds for the signs, Mr Carl Cote, should come from the impact fees as is caused by the subdivisions parcel clearing and burning as our wildlife being evicted. Get the needed warning signs in Rte 1 specially NOW!~
jake says
A $60,000 investment results in $82 MILLION, and you people cry about what you didn’t get. It’s amazing to think you’re so ignorant that you thought you would get everything you wanted. The Palm Coast City Council has once again proven to be the stupidest people on earth.
James says
Seems to me “THEY” got everything THEY “wanted…” like road expansion funding west. 👍
“WE” got nothing WE “need…” like waste water treatment plant expansion funding. 👎
Yet they need a new electric utility fee… nice, right?
Just an observation.
The dude says
The Flagler County School Board has the Palm Coast City Council beat when it comes to stupidity… however PC City counsel runs a close second in that race.
What does that say about the voters in this area??? Hmmmmm???
Olive says
Florida is one of the few states that requires a balanced budget by law. Did Pontieri submit a prioritized list? This is the first time in 25 years I have seen our state representatives work so hard to bring us what has amounted to a record. Terminating your lobbyist for work you should have done and then blaming the cuts on them shows a tremendous lack of experience with this process.
Does this council ever work together?
Facts Matter says
Exactly! Pontieri is gas lighting again. Pontieri VOTED for Southern & Rayonier AND participated in every City ASK.
Don’t be fooled by Pontieri tactics of attacking when the hearings are closed to public input. Recall that’ll while the Legislature was in session Pontieri created media distractions by continuously attacking local businesses who actually build roads upfront, subsidize ITT stormwater, waste water etc etc. In fact Pontieri made 3 separate attempts at moratoriums against local business all the while supporting a hundred million dollar ask by Rayonier. Nary a peep about Rayonier and the massive haul that benefits only one OUT of TOWN Publicly traded company.
Pontieri never mentions the beneficiary Rayonier! Who will only hire out of town contractors and take every dime back to NYC.
Wake up people to what Pontieri is doing.