City Commission Regular Meeting

City Commission Meeting Minutes April 15, 2025 (APPROVED) 4/15/2025 - Minutes 1. INVOCATION Rev Tim Nunez gave the invocation. 2. PLEDGE OF ALLEGIANCE 3. CALL TO ORDER Mayor Hilligoss called the meeting to order at approximately 6:00 p.m. after the invocation and pledge of allegiance. 4. ROLL CALL Commission Members Present: Mayor Jack Hilligoss, Robin Gibson, Keith Thompson, Carol Gillespie, Daniel Williams Staff Members Present: James Slaton, City Manager; Jennifer Nanek, City Clerk; Albert C. Galloway, Jr., City Attorney 5. PROCLAMATIONS AND AWARDS 5.I. PROCLAMATION - Water Conservation Month Mayor Hilligoss proclaimed April as Water Conservation Month. Holly Britt, Utilities Operations Manager for the City Water Department, accepted the proclamation. 5.II. PROCLAMATION - Weightlifting Championship Mayor Hilligoss proclaimed April 22-25 as Weightlifting Championship Weekend in Lake Wales. Tashawn Williams and members of the Lake Wales High School Weightlifting team accepted the proclamation. 6. PRESENTATION/REPORT 6.I. Transmittal Of Annual Comprehensive Financial Reports, For Fiscal Year Ended September 30, 2024 [Begin Agenda Memo] SYNOPSIS: Transmittal of Annual Comprehensive Financial Reports for fiscal year ended September 30, 2024. STAFF RECOMMENDATION: Staff recommends the City Commission accept the Annual [Begin Agenda Memo] SYNOPSIS: Transmittal of Annual Comprehensive Financial Reports for fiscal year ended September 30, 2024. STAFF RECOMMENDATION: Staff recommends the City Commission accept the Annual Comprehensive Financial Report for fiscal year ended September 30, 2024 and independent auditors’ report as presented. BACKGROUND: In the independent auditors’ report for the fiscal year ending September 30, 2024, the auditors (Carr, Riggs & Ingram) stated that, in their opinion, the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2024, and the respective changes in financial position, and cash flows where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The City utilized the professional services of Mike Brynjulfson, CPA for compilation of the annual audit. Mr. Brynjulfson will be attending the presentation of the annual report and be available to answer any questions relating to technical reporting requirements. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $78,946,237 (net position). As of September 30, 2024, the City reports an unrestricted net position of $5,652,298, as compared to $3,673,127 in the prior year. • The City’s total net position increased by $8,973,595 during the current year compared to an increase of $4,213,082 in the prior year. The governmental activities and business-type activities increased their net position by 20% (8% in prior year) and 8% (6% in prior year), respectively. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $20,572,822; a decrease of $3,576,593 for the year. Approximately 28% of total fund balance is available for spending at the government’s discretion (unassigned) compared to 14% in the prior year. • A restatement of previously reported net position and fund balance was made due to a change in the reporting entity as the financial reporting of the library district (a dependent special district) was reexamined during 2024 and moved the reporting of this district from the blending method to a discretely presented component unit. [End Agenda Memo] Vanessa Avellaneda, Assistant Finance Director, introduced Heather Moser from Carr, Riggs and Ingram to give the audit report. Heather Moser from Carr, Riggs & Ingram presented the results of the audit for the fiscal year ending September 30, 2024. She stated that the city received an unmodified ("clean") opinion on its financial statements. The audit revealed no material weaknesses in internal control, no  and Ingram to give the audit report. Heather Moser from Carr, Riggs & Ingram presented the results of the audit for the fiscal year ending September 30, 2024. She stated that the city received an unmodified ("clean") opinion on its financial statements. The audit revealed no material weaknesses in internal control, no instances of non-compliance, and no findings in the management letter required by the Florida Auditor General. For the single audit, which is required due to federal and state grant funding exceeding $750,000, they tested two major programs and found no issues. There were also no significant issues noted in the report on government investment policies or the separate compliance testing for the CRA. Moser highlighted that there were no significant deficiencies in the current year, and while a new accounting policy (GASB 100) was implemented, it had no financial effect on the city. She also mentioned an upcoming standard change on compensated absences which will primarily affect presentation. The accounting estimates involved in the audit were reasonable, and there were no disagreements with management or difficulties encountered during the audit. Deputy Mayor Gibson made a motion to accept the audit report. Commissioner Thompson seconded the motion. by voice vote: Deputy Mayor Gibson "YES" Commissioner Thompson "YES" Commissioner Williams "YES" Commissioner Gillespie "YES" Mayor Hilligoss "YES" Motion passed 5-0. 7. Settlement Agreement Dixie Walesbilt [Begin Agenda Memo] SYNOPSIS: The Commission will consider approving the Settlement agreement with Dixie Walesbilt Recommendation: Staff recommends approval of the agreement. Background: Proposed conclusion to ongoing litigation concerning the Grand Hotel. OTHER OPTIONS: Do not approve the settlement agreement: [End Agenda Memo] Commissioner Gillespie expressed satisfaction that the Walesbilt Hotel would not be torn down, emphasizing its landmark status and potential as a downtown attraction. She hoped the efforts to reach the settlement would lead to the hotel's beautiful restoration. Commissioner Thompson commended the City Manager and Attorney for their work in reaching the settlement agreement, calling it a "smart move" and "good governance." He addressed potential citizen inquiries about buying back the hotel, clarifying that it was not the city's property and this was the most efficient way to regain it. He expressed optimism about the hotel's future due to the current economic climate and the progress in downtown, anticipating multiple proposals for its redevelopment.  settlement would lead to the hotel's beautiful restoration. Commissioner Thompson commended the City Manager and Attorney for their work in reaching the settlement agreement, calling it a "smart move" and "good governance." He addressed potential citizen inquiries about buying back the hotel, clarifying that it was not the city's property and this was the most efficient way to regain it. He expressed optimism about the hotel's future due to the current economic climate and the progress in downtown, anticipating multiple proposals for its redevelopment. Deputy Mayor Gibson highlighted that the successful strategy leading to the settlement was developed during an executive session, the transcript of which would be available to the public. He emphasized the collaborative effort of the City Commissioners, legal counsel, and administration in devising the right approach, which yielded the desired outcome. He underscored the necessity of this acquisition given the city's ongoing downtown investments and expressed his satisfaction with the opportunity. Mayor Hilligoss said that given the direction of our city's growth and the investments we are making, this is a crucial acquisition, and I am thankful for this chance to move forward. Deputy Mayor Gibson made a motion to approve the agreement. Commissioner Thompson seconded the motion. by roll call vote: Deputy Mayor Gibson "YES" Commissioner Thompson "YES" Commissioner Williams "YES" Commissioner Gillespie "YES" Mayor Hilligoss "YES" Motion approved 5-0. 8. COMMENTS AND PETITIONS Becky Wynkoop, resident, spoke against the change to pick up of yard waste to every other week. Cassandra Richards, non-resident, spoke on traffic issues on SR 60. 9. CONSENT AGENDA Commissioner Thompson made a motion to approve the Consent Agenda. Deputy Mayor Gibson seconded the motion. by voice vote: Commissioner Thompson "YES" Deputy Mayor Gibson "YES" Commissioner Williams "YES" Commissioner Gillespie "YES" Mayor Hilligoss "YES" Motion passed 5-0. 9.I. Minutes - April 2 & 9, 2025 And Canvassing Board  Mayor Hilligoss "YES" Motion passed 5-0. 9.I. Minutes - April 2 & 9, 2025 And Canvassing Board 9.II. Raising The Threshold To $5,000 For Capitalization Of Fixed Assets [Begin Agenda Memo] SYNOPSIS: Staff is requesting that the threshold for capitalization of fixed assets be moved from $1,000 to $5,000, with an effective date of 10/01/2024. This change would align with common financial reporting standards and reduce administrative burden by limiting the number of items capitalized as fixed assets for accounting purposes. STAFF RECOMMENDATION: 1. The City Commission approve the new Procedure Manual for Capital Assets, with an effective date of October 1, 2024. BACKGROUND: The city last updated its Procedure Manual for Capital Assets in October 2010. Florida Statute 274.02(1) requires local governments to maintain records of tangible personal property valued over $1,000, but assets are typically capitalized at a $5,000 threshold for financial reporting. Raising the capitalization threshold to $5,000 would reduce the administrative burden of tracking low-value items as capital assets, aligning with common practices among local governments. FISCAL IMPACT: No Fiscal Impact [End Agenda Memo] 9.III. Event Permit Application: Walter Clayton, Jr. Hometown Welcome And Kirkland Gym Ribbon Cutting [Begin Agenda Memo] SYNOPSIS This is a request from the City of Lake Wales Recreation, to host an event to honor Walter Clayton Jr with a parade and ribbon cutting on April 18, 2025 from 4pm – 9pm. RECOMMENDATION Staff recommends 1. That the City Commission approve the permit request to host the Hometown Welcome event on April 18th from 4:00 p.m. – 9:00 p.m. 2. That the City Commission approve the closure of roads for the parade. The roads include Old Scenic HWY, Dr. JA Wiltshire, 4th Street, Seminole and 3rd Street BACKGROUND The City of Lake Wales is proposing to host a Walter Clayton, Jr. Hometown Welcome and Kirkland Gym Ribbon Cutting on April 18th from 4:00 p.m. – 9:00 p.m. The event will feature a parade between Sunrise Park Apartments and the Kirkland Gym and a ribbon cutting for the new Gym floor. This date and other details are tentative and may be modified based on Mr. Clayton’s schedule OTHER OPTIONS Do not approve the Special Event Permit. FISCAL IMPACT Unknown. [End Agenda Memo] 10. OLD BUSINESS 11. NEW BUSINESS 11.I. ORDINANCE 2025-03 Charter Amendment Run-Off Elections – 1st Reading [Begin Agenda Memo] 10. OLD BUSINESS 11. NEW BUSINESS 11.I. ORDINANCE 2025-03 Charter Amendment Run-Off Elections – 1st Reading [Begin Agenda Memo] SYNOPSIS ORDINANCE 2025-03 modifies the charter to include run-off elections as approved by the voters on April 1, 2025 RECOMMENDATION Approve ORDINANCE 2025-03 after 1st reading and Public hearing. BACKGROUND In 2007 the City Commission passed Ordinance 2007-01 to put the issue of removing run-off elections on the ballot. These charter amendments were approved by the voters in April of 2007. Ordinance 2024-12, adopted in May of 2024, put a Charter Amendment on the April 1, 2025 Municipal Election ballot to include run-off elections in the future. The Charter Amendment was approved by voters. Ordinance 2025-03 would amend the charter as approved by voters. The first run-off election could happen in 2026. The schedule would be as follows Tuesday April 7th would be the Election for Seats 3 & 5 (Thompson & Gibson) Tuesday May 5th would be the Run-off election if needed. Wednesday May 6th Commission Meeting would be the swearing in of winners of the April 7th Election June 2nd would be the swearing in of the winner of the run-off election if needed as the charter says that “shall take office at the first regular meeting in the month following their election”. OTHER OPTIONS Do not approve Ordinance 2025-03 or recommend changes. FISCAL IMPACT The 2025-2026 election budget will need to be increased about $5000 [End Agenda Memo] Jennifer Nanek, City Clerk, read ORDINANCE 2025-03 by title. ORDINANCE 2025-03 AN ORDINANCE AMENDING SECTION 8.06 OF THE CHARTER OF THE CITY OF LAKE WALES TO PROVIDE FOR RUNOFF ELECTIONS; PROVIDING THAT IN THE EVENT A CANDIDATE FOR OFFICE, WHETHER FOR COMMISSIONER OR MAYOR, DOES NOT RECEIVE A MAJORITY OF BALLOTS CAST A RUNOFF ELECTION WILL THEN BE HELD AMONG THE TOP TWO CANDIDATES; AMENDING CHAPTER 8, LAKE WALES CODE OF ORDINANCES BY DESIGNATING A DATE FOR RUN-OFF ELECTIONS, AMENDING METHOD OF ELECTION TO COMMISSION SEATS, AND AMENDING METHOD FOR DETERMINATION OF RESULTS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR AN EFFECTIVE DATE.  RECEIVE A MAJORITY OF BALLOTS CAST A RUNOFF ELECTION WILL THEN BE HELD AMONG THE TOP TWO CANDIDATES; AMENDING CHAPTER 8, LAKE WALES CODE OF ORDINANCES BY DESIGNATING A DATE FOR RUN-OFF ELECTIONS, AMENDING METHOD OF ELECTION TO COMMISSION SEATS, AND AMENDING METHOD FOR DETERMINATION OF RESULTS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR AN EFFECTIVE DATE. Deputy Mayor Gibson made a motion to approve ORDINANCE 2025-03 after 1st Reading. Commissioner Gillespie seconded the motion. by roll call vote: Deputy Mayor Gibson "YES" Commissioner Gillespie "YES" Commissioner Williams "YES" Commissioner Thompson "YES" Mayor Hilligoss "YES" Motion passed 5-0. 11.II. Special Exception Use Permit For A Multi-Family Planned Development Project (PDP) And Master Phasing Plan 10 West Sessoms Avenue – Lake Wales Housing Authority PUBLIC HEARING [Begin Agenda Memo] SYNOPSIS: The Lake Wales Housing Authority, owner, is requesting approval of City Commission for a Special Exception Use Permit to allow a Multi-Family PDP, including a multi- phased Master Plan, on 24.74 acres of land, for the redevelopment of Grove Manor. RECOMMENDATION: Staff recommends approval to City Commission for the Special Exception Use Permit for a Planned Development Project (PDP), including a multi-phased Master Plan, finding that the zoning and land use designations support the proposed redevelopment project, and that approval of the PDP will not have a negative impact on the surrounding area. At the March 25, 2025 meeting, the Planning and Zoning Board made a 4-3 recommendation of approval to City Commission, after lengthy deliberation of the sufficiency of parking proposed to serve the new neighborhood. BACKGROUND: History: The subject property is an existing affordable housing community located on Sessoms Avenue with 69 single-story residential buildings and associated parking on site. The Master Phasing Plan contemplates the redevelopment of housing units on site within four phases. Future Land Use: MDR Medium Density Residential Zoning: R-3 Residential Redevelopment Plan The Housing Authority proposes to redevelop the property over four phases, to include affordable housing units, a clubhouse, and parking. Beginning with Phase II as shown on the attached site plan, 4 apartment buildings (78 total units) are proposed, along with associated parking and the club house. The club house will include a leasing office, fitness center, community room with kitchen, and an outdoor plaza. Phases 2 and 3 may include a variety of housing types, and Phase 4 is to be transferred to the City for a future project. The Housing Authority designed the layout of the apartment buildings with a close building-to-street affordable housing units, a clubhouse, and parking. Beginning with Phase II as shown on the attached site plan, 4 apartment buildings (78 total units) are proposed, along with associated parking and the club house. The club house will include a leasing office, fitness center, community room with kitchen, and an outdoor plaza. Phases 2 and 3 may include a variety of housing types, and Phase 4 is to be transferred to the City for a future project. The Housing Authority designed the layout of the apartment buildings with a close building-to-street relationship, in coordination with town planning firm Dover, Kohl, and Partners, creating an attractive, walkable streetscape and neighborhood feel. Parking While considering a recommendation to City Commission, the Planning and Zoning Board discussed the sufficiency of the parking designed to serve the neighborhood, with 3 Board members finding it insufficient. Table 23-306b requires multi-family to provide a minimum of 1.5 spaces per dwelling unit for multi-family; at the time of the Planning and Zoning Board hearing, approximately 1.44 spaces per unit were proposed for Phase 2, including designated on-street parking. Following the Planning Board meeting, the applicant provided a revised parking plan, as shown on the Architectural Site Plan, reflecting a provision of 1.5 spaces per dwelling unit. The Lake Wales Housing Authority is conducting a tenant survey to determine if the 1.5 spaces per unit may be necessary based on current parking needs. Should the LWHA determine the site may become over-parked, they have requested the option to request a waiver from the Administrative Official of up to 20% of the required parking requirement, should the tenant survey and projected transportation needs indicate that a reduction in parking is warranted. Landscaping and Buffering General A detailed landscaping plan with a planting schedule compliant with Section 23-307 shall be reviewed and approved by City Staff and the City’s Horticulturist. Density The maximum number of dwelling units allowed within the MDR Medium Density Residential future land use category at 12 units per acre is 296; 308 dwelling units are proposed. Pursuant to Policy I.1.2.13 Medium Density Residential of the City’s Comprehensive Plan, a density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi-family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. This brings the max density allowance to 15.96 units per acre, or 394 units. Designating housing as affordable is based off of the income of those living in the home, compared to the area median income. Extremely Low-Income: Household earns at or below 30% of area median income. Very Low- Income: Household earns at or below 50% of area median income. Low-Income: Household earns at or below 80% of area median income. Comprehensive Plan Future Land Use Element: MDR Medium Density Residential The primary function of the Medium Density Residential (MDR) classification is to provide areas for housing in compatible groupings at a density of up to 12 units per gross acre. A density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi- family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. The MDR classification is primary function of the Medium Density Residential (MDR) classification is to provide areas for housing in compatible groupings at a density of up to 12 units per gross acre. A density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi- family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. The MDR classification is intended to preserve the character of existing single-family residential areas and to allow the continued development of these areas. It is also intended to encourage redevelopment of declining residential areas and to allow a variety of housing types on vacant lands within a half- mile of commercial areas and arterial highways. Location criteria: The MDR designation is appropriate for lands within a half mile of arterial roadways and CACs-Community Activity Centers and RACsRegional Activity Centers. MDR should also be assigned to existing residential areas with densities greater than 5 and up to 12 units per acre on average. Typical uses: Housing up to 12 units per gross acre. Single-family houses. Two and three-family units, townhomes, and multi-family units may be allowed depending on compatibility with adjoining residential areas, the development suitability of the site, and the availability of public facilities and services. Clustering of units is encouraged to preserve open space and natural resources. Uses that are customarily found in residential neighborhoods and compatible with residential development, such as religious, educational, public facility uses, and assisted living facilities with a maximum FAR of .40. Zoning District Classifications R-3 Residential district. This district is designed for designation of developed multi-family neighborhoods and to permit higher density residential development, consisting of single-family, two-family and multiple-family dwellings, on infill lots in multi-family neighborhoods. It is not intended for use on large tracts of vacant land. The R-3 zoning designation is intended for infill development on lands classified as HDR - High Density Residential on the future land use map of the Comprehensive Plan. Staff Findings: 1. The site is located within the City’s utility service area and will maximize existing infrastructure investments by connecting to municipal water and sewer. 2. The project is an affordable housing development and qualifies for a 33% density bonus pursuant to the Future Land Use element of the Comprehensive Plan. 3. Multi-family projects in excess of 12 units requires a Special Exception Use Permit for a PDP. Although the Grove Manor project is a redevelopment effort, the increase in the number of dwelling units from the current intensity of 138 units, to a proposed 312 units, is considered an expansion of a Special Exception Use Permit. Pursuant to Section 23-216, a new Permit is required. 4. The City’s Residential PDP guidelines are tailored to single-family residential neighborhoods; therefore, the Grove Manor PDP is evaluated according to Section 23-444 Commercial PDPs. 5. Approval of the multi-family PDP will not have a negative impact on the surrounding area. 6. The project is located within a Community Redevelopment Area; both the redevelopment of blight buildings and properties and the addition of affordable housing opportunities are efforts consistent with the Community Redevelopment Agency’s plan.  5. Approval of the multi-family PDP will not have a negative impact on the surrounding area. 6. The project is located within a Community Redevelopment Area; both the redevelopment of blight buildings and properties and the addition of affordable housing opportunities are efforts consistent with the Community Redevelopment Agency’s plan. CONDITIONS OF APPROVAL: 1. A detailed Landscaping Plan and Landscaping Schedule shall be submitted to the City for review and approval concurrent with the review of site construction plans for Phase II (Site Development Permit review). 2. Future Phases may be Administratively approved, so long as the design is consistent with the Master Plan and Architectural Site Plan, and the overall density does not exceed the 308 dwelling units. 3. Should the Lake Wales Housing Authority request a reduction in parking spaces, a summary of the tenant transportation survey shall be provided to the Administrative Official to support the request. Parking reduction request may not exceed 20% of the standard. OTHER OPTIONS Deny the request to allow the Multi-Family PDP, stating a finding of fact. FISCAL IMPACT Approval of the Special Exception Use Permit would allow for the redevelopment of Grove Manor and the potential increase in property value. [End Agenda Memo] Commissioner Thompson made a motion to approve to approve this item. Deputy Mayor Gibson seconded the motion. by roll call vote: Commissioner Thompson "YES" Deputy Mayor Gibson "YES" Commissioner Williams "YES" Commissioner Gillespie "YES" Mayor Hilligoss "YES" Motion passed 5-0. 12. CITY ATTORNEY Albert C. Galloway, Jr., City Attorney, said that Lot 7 at Longleaf closed today with the hotel group. The payment will be received soon. 13. CITY MANAGER James Slaton, City Manager, said some big things were approved at this meeting. We are making good progress for 2025. Stephanie Lutton, Parks and Recreation Director, shared plans to celebrate local accomplished athlete  13. CITY MANAGER James Slaton, City Manager, said some big things were approved at this meeting. We are making good progress for 2025. Stephanie Lutton, Parks and Recreation Director, shared plans to celebrate local accomplished athlete Walter Clayton Jr. Commissioner Thompson asked how the event is being promoted. Ms. Lutton said once the date and time are confirmed it will be sent to the press and social media. Mr. Slaton shared copies of the CRA report for this year. 13.I. Commission Meeting Calendar The next Commission meeting is in two weeks on Wednesday April 30 14. CITY COMMISSION COMMENTS Commissioner Gillespie commended the staff, particularly Arlene Wood and Ronnie Wood, for organizing a successful and well-attended wine walk. She highlighted the contributions of The Thirsty Dragon and Mimi's Bakery in providing refreshments. She then asked for clarification regarding a statement by the city attorney about receiving a check, indicating she was unaware of the matter. City Manager James Slaton clarified that it was related to the closing on the sale of a CRA-owned lot to the hotel developer. In response to Commissioner Gillespie's question, Slaton confirmed that the Commission had previously approved the real estate sale and purchase agreement, and the developer intends to build a hotel on the property. Commissioner Thompson raised concerns about the recent change to bi-weekly trash pickup, noting he had received several complaints and was personally not in favor of it. He suggested reverting to weekly pickup and reinstating a $2 monthly fee to cover the cost, arguing that it aligns better with the city's "city in a garden" vision and the needs of residents who maintain their properties. He did not believe that alley pickup was a viable solution due to the size of the current equipment and the condition of his own alley. Commissioner Thompson then highlighted that April was Water Conservation Month in Polk County and shared insights from his attendance at the Polk County Water School. He praised the advancements in leak detection technology and the integration of stormwater capture with recreational spaces. He affirmed that Lake Wales is proactively addressing water management through its Water Star program and sound development practices. Commissioner Thompson also lauded the successful wine walk event in downtown Lake Wales, expressing optimism for the area's future. He also acknowledged the significance of the current meeting and his pride in being a resident of Lake Wales during this period of positive growth. Deputy Mayor Gibson said that recognizing the significance of the events unfolding tonight, he will reserve specific comments until the CRA meeting where a formal vote will take place. 15. MAYOR COMMENTS Mayor Hilligoss said we are very excited about this and expects to be back here again. 16. ADJOURNMENT The meeting was adjourned at 6:35 p.m. _______________________ Mayor _______________________ Mayor ATTEST: _______________________ City Clerk