T H E C A B I N E T
S T A T E O F F L O R I D A
Representing:
STATE BOARD OF EDUCATION
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT TRUST FUND
STATE BOARD OF ADMINISTRATION
DIVISION OF BOND FINANCE
DEPARTMENT OF REVENUE
The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush
presiding, in the Cabinet Meeting Room, LL-03,
The Capitol, Tallahassee, Florida, on Tuesday,
January 23, 2001, commencing at approximately
9:17 a.m.
Reported by:
LAURIE L. GILBERT
Registered Professional Reporter
Certified Court Reporter
Certified Realtime Reporter
Registered Merit Reporter
Notary Public in and for
the State of Florida at Large
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FLORIDA 32301
850/878-2221
2
APPEARANCES:
Representing the Florida Cabinet:
JEB BUSH
Governor
BOB CRAWFORD
Commissioner of Agriculture
BOB MILLIGAN
Comptroller
KATHERINE HARRIS
Secretary of State
BOB BUTTERWORTH
Attorney General
TOM GALLAGHER
Treasurer
CHARLIE CRIST
Commissioner of Education
* * *
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January 23, 2001
I N D E X
ITEM ACTION PAGE
STATE BOARD OF EDUCATION:
(Presented by James Robinson,
General Counsel)
1 Approved 6
2 Deferred 7
3 Approved 8
4 Approved 9
5 Approved 10
6 Approved 10
7 Approved 11
8 Approved 11
9 Approved 12
BOARD OF TRUSTEES OF THE
INTERNAL IMPROVEMENT
TRUST FUND:
(Presented by David B. Struhs,
Secretary)
1 Approved 13
2 Approved 13
Substitute 3 Approved 14
4 Approved 14
5 Approved 15
6 Approved 16
7 Approved 16
8 Approved 17
9 Approved 17
10 Approved 17
11 Approved 18
Substitute 12 Approved 20
Second
Substitute 13 Approved 26
Substitute 14 Approved 26
Substitute 15 Approved 44
16 Approved 52
Third
Substitute 17 Approved 47
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January 23, 2001
I N D E X
(Continued)
ITEM ACTION PAGE
STATE BOARD OF ADMINISTRATION:
(Presented by Tom Herndon,
Executive Director)
1 Approved 53
2 Approved 54
3 Approved 54
4 Approved 55
5 A. Approved 55
5 B. Approved 56
6 Status Report 56
7 Deferred 71
8 For Information Only 72
DIVISION OF BOND FINANCE:
(Presented by J. Ben Watkins, III,
Director)
1 Approved 73
2 Approved 73
3 Approved 74
4 Approved 74
5 Approved 75
6 Approved 75
7 Approved 76
8 Approved 77
9 Approved 78
DEPARTMENT OF REVENUE:
(Presented by James A. Zingale, Ph.D.,
Executive Director)
1 Approved 79
2 Approved 80
CERTIFICATE OF REPORTER 81
* * *
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION 5
January 23, 2001
1 P R O C E E D I N G S
2 (The agenda items commenced at 9:52 a.m.)
3 GOVERNOR BUSH: State Board of Education.
4 We're going to do this a little out of --
5 out of order for Commissioner Crist, who has to
6 go up to Washington on his --
7 TREASURER GALLAGHER: Motion.
8 GOVERNOR BUSH: -- first -- there -- is
9 there any hazing -- is there anything, General,
10 that we do for --
11 TREASURER GALLAGHER: We -- we have to save
12 it for the next meeting --
13 COMMISSIONER CRAWFORD: Not really.
14 TREASURER GALLAGHER: -- since he's leaving
15 early.
16 COMMISSIONER CRAWFORD: Try to --
17 GOVERNOR BUSH: We'll save it for the next
18 meeting.
19 COMPTROLLER MILLIGAN: Yeah. I think we
20 ought to have --
21 COMMISSIONER CRIST: Well, good. I'll have
22 something to look forward to.
23 GOVERNOR BUSH: A good Marine hazing would
24 do. But we'll save that for the next meeting,
25 if you don't mind.
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STATE BOARD OF EDUCATION 6
January 23, 2001
1 COMPTROLLER MILLIGAN: I'll work on
2 something.
3 GOVERNOR BUSH: All right.
4 COMMISSIONER CRIST: Thank you, General.
5 TREASURER GALLAGHER: A motion on the
6 minutes --
7 COMMISSIONER CRIST: Appreciate it.
8 TREASURER GALLAGHER: -- on
9 November 16th --
10 COMPTROLLER MILLIGAN: He might not come
11 back though if he -- he finds out about it.
12 COMMISSIONER CRIST: Not that easily. I'll
13 be back.
14 GOVERNOR BUSH: Is there a second?
15 TREASURER GALLAGHER: Second -- oh, you did
16 it.
17 GOVERNOR BUSH: Moved and seconded.
18 Without objection, it's approved.
19 MR. ROBINSON: Good morning. My name is
20 Jim Robinson. I'm your General Counsel, and
21 I'll present.
22 Item Number 2 is the Berkley Elementary
23 School Charter School appeal, versus the
24 School Board of Polk County.
25 By stipulation of the parties, they would
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION 7
January 23, 2001
1 prefer to defer this to next month,
2 February 6th.
3 TREASURER GALLAGHER: Motion to defer.
4 COMPTROLLER MILLIGAN: Second.
5 GOVERNOR BUSH: Moved and sec--
6 Motion to defer, and a second.
7 Without objection, it's approved.
8 MR. ROBINSON: Item Number 3 is adoption of
9 a resolution requesting the Division of
10 Bond Finance of the State Board of
11 Administration of Florida to authorize the
12 issuance of an amount not exceeding
13 fourteen million five hundred and eighty
14 dollars, and State of Florida, full faith and
15 credit State Board of Education capital outlay
16 bonds, 2001 Series A.
17 COMMISSIONER CRIST: Motion on 3 --
18 TREASURER GALLAGHER: Four.
19 COMMISSIONER CRIST: Four.
20 TREASURER GALLAGHER: That was 3 -- no,
21 that was 3. I'm sorry.
22 COMMISSIONER CRIST: Thanks, Commish.
23 COMPTROLLER MILLIGAN: I -- I -- I note --
24 Governor --
25 COMMISSIONER CRIST: Coach.
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STATE BOARD OF EDUCATION 8
January 23, 2001
1 COMPTROLLER MILLIGAN: -- I note that these
2 are a little out of sequence, because normally
3 we do -- approve the bond issue before we
4 approve the --
5 GOVERNOR BUSH: Right.
6 COMPTROLLER MILLIGAN: -- this issue.
7 But we know what the situation is, and
8 the --
9 GOVERNOR BUSH: The hazing part of it comes
10 afterward.
11 Is there a second?
12 COMMISSIONER CRIST: I think it just
13 came --
14 TREASURER GALLAGHER: Second on the --
15 COMMISSIONER CRIST: -- and went.
16 GOVERNOR BUSH: Moved and seconded.
17 Without objection, it's approved.
18 MR. ROBINSON: Similarly, Item 4, adoption
19 of a resolution requesting the Division of
20 Bond Finance of the State of -- State Board of
21 Administration of Florida to authorize the
22 issuance and sale of an amount not exceeding
23 three hundred and fifty million, State of
24 Florida, State Board of Education Lottery
25 Revenue Bonds, various series.
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STATE BOARD OF EDUCATION 9
January 23, 2001
1 TREASURER GALLAGHER: Motion on 4.
2 COMMISSIONER CRAWFORD: Second.
3 SECRETARY HARRIS: Second.
4 GOVERNOR BUSH: Moved and seconded.
5 Without objection, it's approved.
6 MR. ROBINSON: Item 5 --
7 GOVERNOR BUSH: Just as an aside, General,
8 based on the -- what you know about
9 the Division of Bond Finance agenda, is there
10 going to be --
11 COMPTROLLER MILLIGAN: No, there is not.
12 GOVERNOR BUSH: You have no concerns --
13 COMPTROLLER MILLIGAN: There are no
14 problems in that --
15 GOVERNOR BUSH: Okay.
16 COMPTROLLER MILLIGAN: -- in that --
17 GOVERNOR BUSH: Okay. Because it -- it
18 would be --
19 COMPTROLLER MILLIGAN: -- and I don't mind
20 taking it out of sequence.
21 GOVERNOR BUSH: You're absolutely right.
22 I -- I passed by your comment. But it's -- if
23 there is concerns, we probably ought to do it
24 in the proper sequence. But if there's not, we
25 can go forward.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF EDUCATION 10
January 23, 2001
1 Okay.
2 MR. ROBINSON: Item 5 has to do with an
3 amendment to the rules for the Florida School
4 for the Deaf and Blind. It's an amendment to
5 Rule 6D-5.003 regarding other personnel.
6 COMMISSIONER CRAWFORD: Motion.
7 SECRETARY HARRIS: Second.
8 GOVERNOR BUSH: Moved and --
9 TREASURER GALLAGHER: Motion.
10 GOVERNOR BUSH: -- seconded.
11 Without objection, it's approved.
12 MR. ROBINSON: Likewise, Item 6 is another
13 amendment to the same set of rules, 6D-6.003
14 relating to use of school facilities and
15 equipment.
16 GOVERNOR BUSH: Is there a motion?
17 TREASURER GALLAGHER: Motion.
18 COMMISSIONER CRAWFORD: Motion.
19 COMMISSIONER CRIST: Motion.
20 TREASURER GALLAGHER: Second.
21 COMMISSIONER CRIST: Second.
22 GOVERNOR BUSH: Moved and seconded.
23 Without objection, it's approved.
24 MR. ROBINSON: Item 7, appointment to the
25 Board of Regents of Richard A. "Dick" Beard,
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STATE BOARD OF EDUCATION 11
January 23, 2001
1 III, to succeed Dr. Gwendolyn F. McLin, for a
2 term ending January 1, 2007; and
3 Carolyn K. Roberts, to succeed
4 Carlton B. Daniel, for a term ending January 1,
5 2007.
6 TREASURER GALLAGHER: Motion on 7.
7 SECRETARY HARRIS: Motion.
8 COMMISSIONER CRAWFORD: Second.
9 COMMISSIONER CRIST: Second.
10 GOVERNOR BUSH: Moved and seconded.
11 Without objection, it's approved.
12 MR. ROBINSON: Item 8, reappointment of
13 Silvia M. Velazquez as a member of the
14 State Board of Community Colleges for a term
15 ending September 30, 2001.
16 SECRETARY HARRIS: Motion.
17 COMMISSIONER CRAWFORD: Second.
18 COMMISSIONER CRIST: Second.
19 GOVERNOR BUSH: Moved and seconded.
20 Without objection, it's approved.
21 MR. ROBINSON: Item 9, appointment of
22 Dale S. Wilson as a member of the District
23 Board of Trustees, St. Johns River Community
24 College, succeeding Laurie P. Price, for a term
25 ending May 31, 2001.
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STATE BOARD OF EDUCATION 12
January 23, 2001
1 SECRETARY HARRIS: Motion.
2 COMMISSIONER CRAWFORD: Second.
3 COMMISSIONER CRIST: Second.
4 GOVERNOR BUSH: Moved and seconded.
5 Without objection, it's approved.
6 (The State Board of Education Agenda was
7 concluded.)
8 * * *
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10
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12
13
14
15
16
17
18
19
20
21
22
23
24
25
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TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND 13
January 23, 2001
1 GOVERNOR BUSH: Board of Trustees.
2 Thank you, Jim.
3 TREASURER GALLAGHER: Motion on the minutes
4 for November 16th, November 29th, and
5 December 12th.
6 GOVERNOR BUSH: Is there a second?
7 COMPTROLLER MILLIGAN: Second.
8 COMMISSIONER CRIST: Second.
9 GOVERNOR BUSH: Moved and seconded.
10 Without objection, it's approved.
11 Item 2.
12 MR. STRUHS: Item 2 is a request to convey
13 the Adelaide Sanchez House in St. Johns County
14 to the City of St. Augustine.
15 TREASURER GALLAGHER: Motion.
16 COMMISSIONER CRIST: Second.
17 GOVERNOR BUSH: Moved and seconded.
18 Without objection, it's approved.
19 MR. STRUHS: Item 3 is conveyance of some
20 land, 46.1 acres, to the South Florida Water
21 Management District for the Everglades
22 Construction Project.
23 TREASURER GALLAGHER: Motion.
24 COMMISSIONER CRIST: Second.
25 GOVERNOR BUSH: Moved and seconded.
ACCURATE STENOTYPE REPORTERS, INC.
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January 23, 2001
1 Without objection, it's approved.
2 MR. STRUHS: Item 4 is an acquisition in
3 the Green Swamp CARL project.
4 Recommending approval.
5 TREASURER GALLAGHER: Motion.
6 COMMISSIONER CRIST: Second.
7 ATTORNEY GENERAL BUTTERWORTH: Second.
8 GOVERNOR BUSH: Moved and seconded.
9 Without objection, it's approved.
10 MR. STRUHS: Item 5 is a purchase agreement
11 to acquire .14 acres for the benefit of the
12 Florida Board of Regents and FSU from
13 George Kurt --
14 TREASURER GALLAGHER: Motion.
15 MR. STRUHS: -- Artecona.
16 COMMISSIONER CRIST: Second.
17 GOVERNOR BUSH: Point one four acres.
18 MR. STRUHS: Yes, sir.
19 GOVERNOR BUSH: For $250,000?
20 Is there a building on this, it's improved?
21 MR. STRUHS: Yes, there is.
22 GOVERNOR BUSH: Is there a house, what is
23 it? I mean, just -- where is it?
24 MR. STRUHS: I haven't seen the property
25 myself. But there's a building on it that the
ACCURATE STENOTYPE REPORTERS, INC.
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January 23, 2001
1 University --
2 COMPTROLLER MILLIGAN: A fairly --
3 MR. STRUHS: -- will -- will use.
4 COMPTROLLER MILLIGAN: -- fairly
5 significant building. Across from
6 FSU Credit Union. Sits on the corner there.
7 GOVERNOR BUSH: It's really big on a .4 --
8 --14 acres?
9 TREASURER GALLAGHER: Well, the '98
10 purchase price was 275,000.
11 GOVERNOR BUSH: All right.
12 COMMISSIONER CRAWFORD: He's -- he's the
13 Seminole. He --
14 GOVERNOR BUSH: Moved and seconded.
15 COMMISSIONER CRAWFORD: -- should know.
16 GOVERNOR BUSH: Without a -- no longer,
17 without any objections, it's approved.
18 MR. STRUHS: Item 6 are three option
19 agreements to acquire 446.4 acres within the
20 Longleaf Pine Ecosystem CARL Project.
21 GOVERNOR BUSH: That's the fastest, by the
22 way, that Jose's ever run when it -- the --
23 the -- his alma mater was being challenged with
24 the humble --
25 TREASURER GALLAGHER: You woke him up.
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January 23, 2001
1 GOVERNOR BUSH: -- suggestions.
2 TREASURER GALLAGHER: Go Noles.
3 GOVERNOR BUSH: Almost floated up here.
4 TREASURER GALLAGHER: Sure woke him up.
5 GOVERNOR BUSH: It won't happen again,
6 Jose, I promise.
7 What item are we on?
8 TREASURER GALLAGHER: Six.
9 MR. STRUHS: Recommending approval on
10 Item 6.
11 TREASURER GALLAGHER: Motion on 6.
12 COMMISSIONER CRIST: Second.
13 GOVERNOR BUSH: Moved and second.
14 Without objection, it's approved.
15 MR. STRUHS: Recommend approval of Item 7,
16 the Knab/Two Lakes Branch Corp./Frey Option
17 Agreement for the Wekiva-Ocala Greenway CARL
18 Project.
19 TREASURER GALLAGHER: Motion, 7.
20 COMMISSIONER CRIST: Second.
21 GOVERNOR BUSH: Moved and seconded.
22 Without objection, it's approved.
23 MR. STRUHS: Item 8, recommending the
24 acceptance of an assignment of an option
25 agreement to acquire 371 acres in the
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January 23, 2001
1 Torreya State Park Addition --
2 TREASURER GALLAGHER: Motion.
3 MR. STRUHS: -- from TNC.
4 COMMISSIONER CRIST: Second.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 MR. STRUHS: Item 9 is a land swap with the
8 Future Farmers of America near Lake Pierce.
9 COMMISSIONER CRIST: Motion.
10 TREASURER GALLAGHER: Second.
11 SECRETARY HARRIS: Second.
12 GOVERNOR BUSH: Moved and seconded.
13 Without objection, it's approved.
14 MR. STRUHS: Item 10, the Orange County
15 Option Agreement, West Orange Trail Phase III,
16 Greenways and Trails Project. It's acquisition
17 of 1.35 acres.
18 COMMISSIONER CRIST: Motion.
19 TREASURER GALLAGHER: Second.
20 GOVERNOR BUSH: Moved and seconded.
21 Without objection, it's approved.
22 MR. STRUHS: Item 11 is the Millender
23 Option Agreement in the Apalachicola Bay CARL
24 Project.
25 This is an item that was postponed from the
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January 23, 2001
1 Melbourne Cabinet meeting. It acquires 3 acres
2 within the Apalachicola Bay CARL Project from
3 Marion Millender.
4 TREASURER GALLAGHER: Boy, that's a nice
5 accrual. Seller's -- seller bought it in --
6 for $5,000 in '76?
7 GOVERNOR BUSH: It's a great country.
8 MR. STRUHS: I wish -- I wish it were me.
9 TREASURER GALLAGHER: It's always when we
10 buy, isn't it, it goes up?
11 Buy high, sell low.
12 Motion on 11.
13 COMMISSIONER CRIST: Second.
14 GOVERNOR BUSH: It was in 1976, so --
15 anyway.
16 There's a motion --
17 TREASURER GALLAGHER: It was a good year.
18 GOVERNOR BUSH: -- and a second?
19 Without objection --
20 ATTORNEY GENERAL BUTTERWORTH: The
21 property's in the house there --
22 GOVERNOR BUSH: -- it's approved.
23 COMMISSIONER CRAWFORD: That's right.
24 That's when I got elected.
25 GOVERNOR BUSH: Gerald Ford was President.
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January 23, 2001
1 MR. STRUHS: Item 12 is an option agreement
2 to acquire 3,054.9 acres in fee simple in a
3 perpetual conservation easement of 5,849 acres,
4 and acceptance of a donation of 250 acres
5 within the Green Swamp CARL project. This is
6 part of a larger settlement with E.R. Jahna
7 Industries, Incorporated.
8 TREASURER GALLAGHER: Motion on 12.
9 SECRETARY HARRIS: Second.
10 GOVERNOR BUSH: What is the percentage of
11 the -- this is an easement you said -- or a
12 conservation easement?
13 What is the percentage of the value that --
14 TREASURER GALLAGHER: Seventy-two percent.
15 GOVERNOR BUSH: Seventy-two percent?
16 Is that -- are we -- now that we're doing
17 more of these, Secretary, are we creating a --
18 a market standard that we could look at?
19 MR. STRUHS: I don't think we have enough
20 experience yet to say we've created a market
21 standard.
22 But we've clearly created a -- an
23 expectation that we're going to look at
24 something other than fee simple acquisitions
25 whenever appropriate.
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January 23, 2001
1 GOVERNOR BUSH: Well, I think the next step
2 probably just as a policy is to try to -- if
3 there is to be a standard, now that we have an
4 expectation, which is great, that the standard
5 be as low as possible as a percentage of the --
6 of the total, because I think this will be used
7 as -- by appraisers in the system.
8 My guess is -- and they'll -- they'll look
9 to what happened -- what's happened over the
10 last four or five transactions as we build a
11 database on this.
12 Maybe I'm wrong, but I -- it's worth
13 keeping an eye on.
14 MR. STRUHS: Yes, sir.
15 GOVERNOR BUSH: There's a motion?
16 TREASURER GALLAGHER: Yeah. A motion.
17 GOVERNOR BUSH: And a second?
18 COMMISSIONER CRIST: Second.
19 GOVERNOR BUSH: Moved and seconded.
20 Without objection, it's approved.
21 Thank you.
22 MR. STRUHS: Item 3 (sic) is a 50-year
23 lease to the State Technology Office within the
24 Department of Management Services; a 50-year
25 sublease from that office then to Com-Net
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January 23, 2001
1 Ericsson Critical Radio Systems; a
2 determination that it's in the public interest
3 to waive the competitive bid requirements; and
4 an assignment of the sublease to American
5 Tower, Limited Partnership; and, finally, the
6 delegation of authority to approve additional
7 sites involving nonnatural resource lands.
8 The Director of the State Technology
9 Office, Roy Cales, is available to speak to
10 this item.
11 TREASURER GALLAGHER: I have a question.
12 MR. STRUHS: Yes, sir.
13 TREASURER GALLAGHER: What arrangements
14 have been made to remove these towers when
15 their life expectancy is over?
16 MR. STRUHS: I'd ask Mr. Cales to respond
17 to that.
18 GOVERNOR BUSH: We have both Roy Cales and
19 Fred Dickinson here to comment on it, should
20 anybody --
21 MR. CALES: Yes. For the --
22 TREASURER GALLAGHER: The question is:
23 What's -- do we -- I'll give you a little
24 history.
25 Many municipalities and counties have found
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January 23, 2001
1 that towers that have been around for a long
2 period of time, and no longer are able to carry
3 out what they're originally built for, are
4 stuck, and they're there. And -- and there's
5 no money to -- to take them down.
6 And so they're now requiring, when somebody
7 puts a new tower in their area, to -- to put a
8 bond up to pay for the tearing of the tower to
9 take it down.
10 If we're about to approve, you know, 150 --
11 whatever -- towers it is to be built, I think
12 the -- the contract that -- that we, for
13 sovereign lands, give to technology, and
14 they're on to the third party, should have a
15 requirement that there's money available for
16 the towers to be taken down when, in fact,
17 their effective use is no longer there.
18 Has that been done?
19 MR. CALES: The way the contract is
20 written, they are required to maintain the
21 towers in the same condition in which they
22 receive them for the entire course of that,
23 during which they're going to replace them at
24 least once, if not twice, under normal wear and
25 tear.
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January 23, 2001
1 At the end of the term, we have the ability
2 to purchase back the towers, if we choose, for
3 $1; and at that point, they have to be returned
4 to us in the same condition that we transfer
5 them to -- you know, over to Com-Net at this
6 point.
7 TREASURER GALLAGHER: Well, if, in fact,
8 they are no longer useful for some reason,
9 maybe -- maybe by 50 years, we're -- they don't
10 have towers anymore, it's all satellite --
11 MR. CALES: Uh-hum.
12 TREASURER GALLAGHER: -- so nobody uses
13 towers, and we've got -- stuck with a bunch of
14 towers all over the place, what arrangements
15 are made to take the towers off the sovereignty
16 land to the State?
17 MR. CALES: Right now, there are none,
18 other than what -- the -- the existing
19 situation is. We own them right now.
20 If we stopped using them at that point,
21 then we would have to take them down. If at
22 the end of 50 years, we choose not to,
23 you know, if we don't -- if we don't want the
24 equipment back, we can just take the land back,
25 we don't have to take the equipment back.
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January 23, 2001
1 Or we get it back for the dollar in the
2 same condition, and then at that point, we bear
3 the expense the same way we would now.
4 TREASURER GALLAGHER: Well, the -- the
5 question is: I think that, if we're going to
6 have towers available, we ought to have a way
7 to tear them down when, in fact, their life
8 expectancy is finished, and they're no longer
9 needed.
10 And somebody needs to be paying for that.
11 I don't think the State should.
12 MR. CALES: The way the -- actually the way
13 the lease is structured, at any point during
14 that, we can have them remove the towers at our
15 discretion.
16 That's what I was just informed of. So it
17 seems like we took care of that.
18 TREASURER GALLAGHER: Okay. If it's taken
19 care of, I'm a happy guy.
20 GOVERNOR BUSH: Another relevant element of
21 this is that, for 15 years, we have worked to
22 get to about 30 percent completion on this.
23 And over the next two years, we'll have it
24 totally built out at a savings, you know --
25 the -- these numbers in the out years start
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January 23, 2001
1 getting a little sketchy.
2 But we're talking about 800 million dollars
3 of savings under the existing arrangement that
4 we had. And it does prove that, if you create
5 a competitive marketplace, they compete. And
6 they have competed dramatically, both Com-Net
7 and -- and Motorola have both --
8 TREASURER GALLAGHER: How much did we
9 already spend on what we've got?
10 It's hundreds of millions.
11 GOVERNOR BUSH: A lot of money.
12 Do you remember how much money has been
13 spent to date?
14 MR. CALES: As of the end of 1999, we had
15 spent right at 140 million; and last year,
16 there was about another three-and-a-half
17 million spent, of which 80 million of that went
18 into infrastructure, and we keep the majority
19 of that, will be incorporated into the new
20 system.
21 TREASURER GALLAGHER: Okay.
22 GOVERNOR BUSH: Any other questions?
23 COMMISSIONER CRIST: Motion.
24 TREASURER GALLAGHER: Second.
25 GOVERNOR BUSH: Moved and seconded.
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1 Without objection, it's approved.
2 Thank you, Roy.
3 Thank you, Fred.
4 MR. STRUHS: Thank you, Roy.
5 Item 14 is the Carrabelle Port and Airport
6 Authority Lease Termination, and an amendment
7 with the lease with Bevis and Associates,
8 trying to do two -- three -- three things here:
9 A request to terminate the lease for
10 Carrabelle Port and Airport Authority; approval
11 of an -- of an amendment of the sublease with
12 Bevis and Associates, essentially adding
13 .06 upland acres to their existing lease; and
14 issuance of a five-year sovereignty submerged
15 land lease for 5,030 square feet to
16 Bevis and Associates for the construction of a
17 travel lift facility.
18 TREASURER GALLAGHER: Motion --
19 MR. STRUHS: Recommending --
20 TREASURER GALLAGHER: -- on 14.
21 MR. STRUHS: -- approval.
22 ATTORNEY GENERAL BUTTERWORTH: Second.
23 GOVERNOR BUSH: Moved and seconded.
24 Without objection, it's approved.
25 MR. STRUHS: Item 15, we're recommending
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1 that the Board recognize the special importance
2 of completing the acquisition of the remaining
3 privately held lots in Golden Gate Estates in
4 order to establish the hydrological connections
5 in the Everglades to direct DEP to exercise,
6 as necessary, Florida's legally prescribed
7 powers of eminent domain to accomplish this
8 critical public purpose, and to delegate to DEP
9 the authority to prepare and execute any
10 necessary parcel-specific eminent domain
11 resolutions for this project.
12 Florida, as you all know, has a proud
13 tradition of protecting private property
14 rights, having some of the most protective laws
15 of any state in the country.
16 And the decision to exercise eminent domain
17 in our state is a decision that is never made
18 lightly. Indeed, the vote that we are
19 recommending you take today assures that in
20 those instances in which acquisition is
21 absolutely necessary for a critical public
22 purpose, the property owners' economic
23 interests are fully protected.
24 And when I describe this as a critical
25 public purpose, let me make it very clear that
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1 we're not talking about just building another
2 park, we're acquiring more conservation land.
3 It's difficult, I think, to imagine any case in
4 Florida in which land acquisition exclusively
5 for conservation purposes would, by itself,
6 rise to the level of importance where we would
7 demand the exercise of eminent domain.
8 This project is far more than that. This
9 project is really more like a public utility
10 project, a utility, in this case, in which the
11 very future of millions of our citizens depend.
12 It's a project that is really more likened
13 to pursuing the missing parcels to complete the
14 connection of an interstate highway. This
15 acquisition project is a public utility in that
16 it provides flood protection, and it will
17 provide water supply to millions of Florida
18 residents and businesses and visitors every
19 day.
20 And without these parcels, this mission,
21 which is of paramount public importance, will
22 not be met. There are no other available
23 options. We already have four/fifths of the
24 project completed, and the amount of time
25 remaining for acquisition is running out.
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1 The Golden Gate Estates project is one of
2 the very first of the ten Everglades
3 restoration project components recently
4 authorized by the U.S. Congress. It's not only
5 an early milestone for Everglades restoration,
6 it's really one of the very first milestones on
7 a critical construction time line, a time line
8 that will make sure we keep Everglades
9 restoration on schedule.
10 And as you all know, keeping that project
11 on schedule is essential if we're going to keep
12 it on budget.
13 The following facts I think are worth
14 noting. There are approximately 20,000 parcels
15 of land in the southern Golden Gate Estates
16 project. Sixteen thousand of them have already
17 been purchased, four thousand remain to be
18 acquired.
19 In October of 2002, which is just around
20 the corner, construction will begin, and the
21 sheet flow of water is going to return to this
22 area.
23 On average, thus far, each lot owner has
24 been contacted five times with an offer to
25 purchase their parcel. No seller in this
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1 project has ever received less than 100 percent
2 of the appraised value. And the typical values
3 for these lots are between 600 and $1500.
4 Six months ago, you, as the Board of
5 Trustees, authorized us to make offers of
6 125 percent of appraised value; or $5,000,
7 whichever was greater.
8 This has been completed, and we've received
9 some positive responses, and more contracts are
10 being written.
11 However, we're now at the point where 452
12 of the remaining 4,000 unacquired parcels are
13 needed for this essential public project.
14 None of these are improved parcels. And
15 it's for these 450 parcels that we're seeking
16 the authority that we're requesting here today.
17 GOVERNOR BUSH: None of them are improved?
18 MR. STRUHS: None of these 452 are
19 improved, no.
20 GOVERNOR BUSH: There's others coming?
21 MR. STRUHS: Yes.
22 It's -- it's worth noting that of the
23 improved parcels -- of -- of the 4,000 un--
24 unacquired parcels, only 15 of them have
25 residences.
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1 And of the 15, two have already been
2 acquired, one is under contract, and four are
3 now in negotiation.
4 So really half of them are either acquired,
5 or -- or on their way to being acquired, which
6 means there's only eight residences left out of
7 the 4,000 parcels being sought for acquisition.
8 And those are being dealt with with special
9 care, and separately. The authority that we're
10 seeking here today for the 452 parcels to
11 pursue eminent domain are not inhabited.
12 I would just conclude by saying that,
13 despite this project's size and complexity, it
14 really represents the first tangible evidence
15 that the Everglades restoration work is
16 beginning.
17 We're about to see construction begin in
18 16 months, reestablishing the natural hydrology
19 which will recapture billions of waters --
20 gallons of water making them available for
21 environmental restoration, flood control, and
22 water supply.
23 And we would very much appreciate your
24 unanimous support of this agenda item.
25 SECRETARY HARRIS: Secretary Struhs, I know
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1 we're not looking at any homestead parcels
2 today in Phase I.
3 But in looking to the future, what type of
4 relocation programs are there for any of the
5 homesteads that are going to be in -- in the
6 future acquisitions?
7 MR. STRUHS: We have a very generous
8 relocation program. And I think if you look at
9 the three that have already occurred, the --
10 and I can just give you one example, just as
11 a -- as a case study.
12 The property acquired from
13 Mr. and Mrs. Brown, the appraised value was
14 $85,000, so they were paid $85,000.
15 In addition, they were given a replacement
16 housing additive of $77,900; their closing
17 costs of $5,042 were covered; their moving
18 expenses of over $1800 were covered, making a
19 total relocation benefit of $84,767. That's on
20 top of the actual appraised value, which they
21 received for their home. So --
22 GOVERNOR BUSH: What was --
23 MR. STRUHS: -- it's essentially --
24 GOVERNOR BUSH: -- the appraised --
25 MR. STRUHS: -- doubling it.
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1 GOVERNOR BUSH: -- value?
2 MR. STRUHS: Pardon me?
3 GOVERNOR BUSH: What was the appraised
4 value?
5 MR. STRUHS: Appraised value was 85,000 --
6 GOVERNOR BUSH: And they --
7 SECRETARY HARRIS: Almost double.
8 MR. STRUHS: They received essentially
9 double that.
10 SECRETARY HARRIS: The accounts that we've
11 read about in the newspapers say that people
12 were treated very well, in many cases, they --
13 the new home that they moved to was twice the
14 value.
15 What -- how do these -- these people who
16 are being relocated, how are they made aware of
17 the relocation programs?
18 MR. STRUHS: We -- we use every possible
19 means to engage with them, directly, person to
20 person, hold their hand, walk them through the
21 process, make sure they're comfortable with
22 the -- the plan that's -- that's in place, and
23 that they're treated fairly.
24 And I think in -- in -- in our experiences
25 thus far, they've -- they've worked remarkably
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1 well.
2 It's important I think to remember though
3 that there are only eight residences yet to be
4 affected. And -- and the remainder --
5 remainder of these properties are un--
6 undeveloped. And, indeed, it's essential that
7 they be acquired, because once that
8 construction work begins, the access to this
9 property is going to be severely limited, if
10 not impossible.
11 TREASURER GALLAGHER: Motion on 15.
12 COMMISSIONER CRIST: Second.
13 GOVERNOR BUSH: Secretary, do you have
14 another question?
15 SECRETARY HARRIS: I'm sorry. How many
16 residences are you talking about in Phase I,
17 or -- how many -- I mean, the residences to be
18 re-- to be acquired?
19 MR. STRUHS: There are -- in -- in terms of
20 the -- the residences, permanent residences,
21 there are 15. And I can just go through this
22 for you real quickly.
23 Two of those have already been acquired,
24 one is under contract, four are now in
25 negotiation. So that's a total of seven, which
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1 means there are eight that we are -- are -- are
2 still going to be working on.
3 So the decision before you presently does
4 not affect any of those developed properties.
5 They are -- we're focusing at -- at the near
6 term on the undeveloped properties.
7 SECRETARY HARRIS: Thank you.
8 GOVERNOR BUSH: But the intent is to -- to
9 continue to use the strategies that have
10 been --
11 MR. STRUHS: Yes, sir.
12 GOVERNOR BUSH: -- developed with a -- a
13 different -- a greater sensitivity to people
14 that are actually living there, than --
15 MR. STRUHS: That's correct.
16 GOVERNOR BUSH: Really extraordinary, I
17 might add, sensitivity. You quantify it by
18 dollars.
19 COMMISSIONER CRIST: Indeed.
20 MR. STRUHS: We're fortunate to have
21 substantial Federal dollars available to us to
22 assist with this acquisition and relocation
23 program.
24 GOVERNOR BUSH: Is anybody here that would
25 like to speak on this?
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1 I -- I think --
2 MR. STRUHS: Yes. We -- we have -- we have
3 several individuals: Mr. Spencer,
4 Ms. McDonald, Mr. McDonald --
5 GOVERNOR BUSH: These --
6 MR. STRUHS: -- all speaking in opposition;
7 and we also have Kris Thoemke, who is here to
8 speak in support.
9 Mr. --
10 GOVERNOR BUSH: Please come up.
11 MR. STRUHS: -- Mr. Spencer and
12 Mr. and Mrs. McDonald.
13 GOVERNOR BUSH: Are we --
14 MR. STRUHS: Is -- is Mr. -- Kris Thoemke?
15 Can I -- I'm -- I'm embarrassed. I
16 apparently made a mistake. My notes were
17 incorrect.
18 I indicated that Mr. Spencer and
19 Mr. and Mrs. McDonald were in opposition to
20 this.
21 And, in fact, I'm -- I'm advised that
22 they're actually in support. So if the record
23 could be changed to reflect that.
24 GOVERNOR BUSH: That would be good. If
25 they would like to speak, if they briefly want
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1 to talk, it'd be great, since you've come all
2 the way from southwest Florida, I assume.
3 Please.
4 MR. McDONALD: Good morning, Governor --
5 GOVERNOR BUSH: Good morning.
6 MR. McDONALD: -- members of the Cabinet.
7 GOVERNOR BUSH: Welcome.
8 MR. McDONALD: Thank you.
9 My name is Jim McDonald. I live in
10 Homestead, but my family and I have been
11 involved in these -- these properties and
12 things, raised cattle on it for years and years
13 and years.
14 And we've been having a controversy with
15 various agencies of the State for a number of
16 years, under prior administrations, I might
17 add. And things seem to be going a little
18 better now.
19 And at the time that I wrote a letter, as
20 well my wife did, to each of you, and certain
21 of you contacted my office to ask if there was
22 anything additional or special that -- that you
23 could help us with, and that was greatly
24 appreciated.
25 We would just like the matter to be
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1 resolved.
2 Finally, some of us aren't going to make it
3 too much longer from the standpoint of whether
4 we'll ever be able to enjoy it or not. And if
5 the State is going to proceed with the
6 eminent domain, then, fine, let it proceed, and
7 let's do it quickly, and get it over with.
8 GOVERNOR BUSH: Thank you, sir.
9 MR. McDONALD: Thank you very much.
10 GOVERNOR BUSH: Would anybody else like to
11 speak?
12 Please.
13 I apologize for the fact that this room is
14 not ADA compliant. But by -- after the next
15 session, God willing, we'll have the funding
16 to -- to change that.
17 MR. SPENCER: Thank you, sir.
18 Governor, Cabinet, my name is
19 Manning A. Spencer, born and raised in
20 Sarasota, Florida, lived in Collier County
21 since coming from the Korean war since '57.
22 I'm for this. I wished you'd hurry up and
23 get it over with, so I could find out where I
24 stand. I'm eighty years old, and I don't know
25 which way to turn.
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1 I want to know what I've got coming, or
2 something. And I'd like to see --
3 GOVERNOR BUSH: Absolutely.
4 MR. SPENCER: -- this go through, and get
5 it over with so we can get on with it.
6 I've hunted all that area, and it's
7 beautiful country.
8 Thank you, sir.
9 GOVERNOR BUSH: Fantastic.
10 Thank you for coming up.
11 Is that your wife back there?
12 MR. SPENCER: Yes, sir.
13 GOVERNOR BUSH: Thank you for being here.
14 That's your wife.
15 We're pleased you're here.
16 Any other people who would like to speak?
17 Thank you, Mr. Spencer.
18 Thank you, sir.
19 MR. THOEMKE: Governor, members of the
20 Cabinet --
21 (Commissioner Crist exited the room.)
22 MR. THOEMKE: -- good morning.
23 My name is Kris Thoemke, and I work for the
24 National Wildlife Federation. I'm a 21-year
25 resident of Collier County as -- on top of
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1 that.
2 And I'm here this morning representing not
3 only the National Wildlife Federation and our
4 Everglades Project office in Naples, but also
5 our -- our State affiliate, the Florida
6 Wildlife Federation, who also has a presence in
7 southwest Florida. And Nancy Payton of the
8 Florida Wildlife Federation would have been
9 here today, had it not been for her root canal
10 yesterday.
11 GOVERNOR BUSH: Ohh.
12 MR. THOEMKE: And I also am here on behalf
13 of Audubon of Florida, because in a rare moment
14 of -- I'm not sure why -- Charles Lee is not
15 here right now to speak to the Cabinet. So --
16 GOVERNOR BUSH: He's working on growth
17 management.
18 MR. THOEMKE: So I -- I will also be
19 representing them.
20 Our three organizations are recommending
21 that the Governor and Cabinet use
22 eminent domain to acquire this land in Phase I
23 of the Save Our Everglades project.
24 This project is of special importance, as
25 Secretary Struhs has -- has told you, and --
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1 and we commend him for what he is doing in
2 terms of bringing this issue to you.
3 I understand, and as a property owner, know
4 about the sensitivity of property rights. But
5 the dream of developing in Golden Gate Estates
6 in the southern states at least is a dead
7 issue, and it has been now for many years.
8 Restoring this land is going to enhance,
9 not only the habitat for wildlife, but it's
10 also going to ultimately end up being an
11 economic benefit to the people of Florida since
12 this land will be open to the public for a
13 variety of -- of activities.
14 It also will add a critical component to
15 the conservation corridor, that when it's
16 complete, the restoration of the Everglades
17 will represent the largest restoration --
18 ecological restoration project in the world.
19 Once again, this is not only a benefit for
20 wildlife, but it'll represent ultimately tens
21 of millions of dollars to the south Florida
22 economy.
23 And, unfortunately, we don't have a
24 videotape machine here, but I did make a brief
25 videotape of --
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1 GOVERNOR BUSH: We'll have one of those
2 in -- in the summer, too, when we reconstruct
3 the Cabinet room.
4 MR. THOEMKE: Yeah.
5 I -- I do have a -- I had a brief videotape
6 here to show you what this area looks like.
7 Basically it is hundreds of miles of road,
8 very few of which are paved, most are dirt
9 roads. There are no utilities in terms of
10 power lines going into any of these properties
11 that are being considered for this.
12 And unlikely, you know, the -- the cost --
13 (Commissioner Crist entered the room.)
14 MR. THOEMKE: -- of developing that land
15 for an individual would just be so prohibitive
16 that it wouldn't --
17 GOVERNOR BUSH: Could I have everybody's --
18 MR. THOEMKE: -- feasible.
19 GOVERNOR BUSH: -- attention, please?
20 Maybe -- could you --
21 Thank you.
22 Boy, that works.
23 MR. THOEMKE: And, un-- like I said,
24 unfortunately, we -- we can't get a look at
25 this, but if you could see it, you would see
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1 that basically there is nothing out there but
2 right now undisturbed habitat that is in sore
3 need of restoration.
4 And if you had any specific questions, I'd
5 be happy to answer them.
6 But I thank you for the opportunity to be
7 here this morning.
8 GOVERNOR BUSH: Thank you.
9 Anybody else like to speak?
10 Anybody opposed to this?
11 MR. STRUHS: Mr. Collins.
12 GOVERNOR BUSH: Mr. Collins, you better not
13 be.
14 MR. COLLINS: I'm not, Governor.
15 For the record, my name is Michael Collins.
16 I worked on the Governor's Sustainable
17 Commission. This was a -- a project that --
18 that we looked at very hard early in the
19 process, because it was our belief that it was
20 critical to Everglades restoration, and
21 particularly the -- the west coast needs.
22 We -- we were under a lot of pressure in
23 the west coast to be able to demonstrate
24 benefit, and demonstrate that we were,
25 you know, thinking about them every step of the
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1 way.
2 So I'm here to support it, Governor. I'm
3 here to wish you -- wish you well, and I --
4 I think this is critical, and I think it's
5 important, and I think it's time to move on it.
6 GOVERNOR BUSH: Very good.
7 MR. COLLINS: Thank you, sir.
8 GOVERNOR BUSH: Thank you, Mike.
9 TREASURER GALLAGHER: Let's vote.
10 GOVERNOR BUSH: There's a motion and a
11 second.
12 Any other discussion?
13 Is there any objections?
14 Passes unanimously.
15 Good presentation, Secretary Struhs.
16 MR. STRUHS: Thank -- thank you, Governor.
17 Given Commissioner Crist's schedule, and
18 given the fact that we need five votes on
19 the -- Item Number 17, I might recommend we
20 take them out of order, if we could --
21 GOVERNOR BUSH: Please.
22 MR. STRUHS: -- take 17 first, and then 16?
23 Seventeen is the Gulfstream Natural Gas
24 System recommended consolidated intent. This
25 is an application for a 30-year sovereignty
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1 submerged land public easement for a natural
2 gas transmission pipeline, and consent of use
3 for a temporary access dock to be removed upon
4 completion of the project.
5 We're recommending approval.
6 TREASURER GALLAGHER: Motion on 17.
7 COMMISSIONER CRIST: Second.
8 SECRETARY HARRIS: Governor, I have to
9 abstain on that issue.
10 GOVERNOR BUSH: Okay.
11 Any discussion?
12 This is -- this will -- I guess the two
13 competing entities have merged together,
14 correct?
15 We're not going to see another pipeline
16 that would go through Pasco County?
17 MR. STRUHS: That's correct.
18 GOVERNOR BUSH: This is a good deal.
19 Any other discussion?
20 ATTORNEY GENERAL BUTTERWORTH: Has the FTC
21 approved this yet --
22 MR. STRUHS: That should be the -- I think
23 the Federal Energy Regulatory Commission. And
24 I'm not sure if they've received that Federal
25 approval yet or not.
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1 ATTORNEY GENERAL BUTTERWORTH: Well, the
2 FTC is also looking at it because of the
3 antitrust aspects of it. Distaste from working
4 with the Federal government on that.
5 MR. STRUHS: Yes, we have.
6 ATTORNEY GENERAL BUTTERWORTH: It's
7 supposed to -- yeah, the merger's supposed
8 to -- the merger and the -- the vestiture is
9 before them now, and they have not -- they have
10 not approved it yet. But -- but we know of no
11 reason why they would not approve it. But --
12 MR. STRUHS: That's correct.
13 ATTORNEY GENERAL BUTTERWORTH: -- I think
14 staff at -- staff at all levels are -- the
15 State, as well as the Federal government staff,
16 has -- has requested approval. So --
17 MR. STRUHS: Yes, sir.
18 ATTORNEY GENERAL BUTTERWORTH: I'm
19 surprised the FTC hasn't acted yet. That's
20 interesting.
21 GOVERNOR BUSH: Any other discussion?
22 There's a motion and a second.
23 SECRETARY HARRIS: And an abstention.
24 GOVERNOR BUSH: And an -- and
25 Secretary Harris is abstaining.
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1 All in favor, say aye.
2 THE CABINET: Aye.
3 GOVERNOR BUSH: All opposed?
4 MR. STRUHS: Thank you.
5 COMMISSIONER CRIST: Thank you very much.
6 MR. STRUHS: Then the final item we'll deal
7 with is Item 16, which is the Com Tech
8 International Cable Corporation, which is a
9 fiber optic cable issue.
10 And if I could just remind you as to where
11 we were on this six months ago, we appeared
12 before the Cabinet --
13 (Commissioner Crist exited the room.)
14 MR. STRUHS: -- on the issue of fiber optic
15 cables. And at that point in time, you
16 directed DEP to work with the industry, and
17 with environmental experts to designate
18 corridors for the location of these fiber optic
19 cables.
20 At that point in time, we predicted that it
21 would take a minimum of six months, and perhaps
22 as much as 12, to complete that assignment. We
23 are now, in fact, at the six-month mark, and
24 I'm pleased to report that we've made some very
25 good progress, and actually believe that within
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1 the next four to eight weeks, we will be in a
2 position where we can, based on -- on good
3 science and consultation with the industry,
4 recommend appropriate corridors on sovereign
5 submerged lands for the location of these
6 cables.
7 The problem is this: The problem is there
8 is a pending application, and the application
9 has been pending since June of 2000.
10 The question before you is, do you want to
11 delay this and wait until those corridors are
12 designated, or do you want to proceed under the
13 interim guidance that was developed some
14 six months ago?
15 Interim guidance that, indeed, this
16 applicant has met in terms of environmental
17 permitting.
18 If you choose to go forward, which is the
19 staff recommendation, you would be approving a
20 25-year sovereign submerged land private
21 easement for the fiber optic cable, and
22 authorization of the severance of 98 cubic
23 yards of material.
24 TREASURER GALLAGHER: Well --
25 MR. STRUHS: This will be -- have landfall
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1 in Miami/Dade County.
2 TREASURER GALLAGHER: You --
3 GOVERNOR BUSH: Treasurer.
4 TREASURER GALLAGHER: -- last June, I think
5 it was, we had this last issue, and in about
6 six months, you were going to have some kind of
7 a permanent recommendation for a -- I -- I
8 guess -- I don't know whether it'd be a rule
9 or -- or a policy that we would adopt to --
10 MR. STRUHS: Right.
11 TREASURER GALLAGHER: -- take care of all
12 these. And, you know, I don't know when the
13 next one's coming, but I'm sure it's floating
14 in the Department somewhere.
15 MR. STRUHS: Well, that -- that -- that's
16 what I just said, Commissioner, which is that
17 six months ago -- it was actually early July,
18 we took your direction to go out and -- and
19 begin the process of consulting with the
20 industry and the environmental experts to come
21 up with those rules.
22 At that point in time, we predicted that at
23 a minimum, it would take six months, and -- and
24 perhaps as many as 12. And I think the good
25 news is that we're actually making excellent
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1 progress and are ahead of schedule so that
2 it --
3 GOVERNOR BUSH: Well, how are we ahead of
4 schedule if it would take six months, and it's
5 now seven?
6 TREASURER GALLAGHER: But as many as 12,
7 and it's not 12 yet.
8 GOVERNOR BUSH: I had heard the six months
9 part.
10 TREASURER GALLAGHER: That's the part I
11 heard.
12 MR. STRUHS: Well, I -- I actually have
13 the -- the transcript from the July meeting in
14 which it was real clear that it would be
15 somewhere between six and 12 months.
16 GOVERNOR BUSH: Well, how are we ahead of
17 schedule?
18 If you're ahead of schedule -- I mean, I
19 don't want to -- you know me, if you're ahead
20 of schedule, it'd be five months, not
21 six months.
22 Why does it take so long?
23 MR. STRUHS: I'm not sure it's taking long.
24 I think it's taking the appropriate amount of
25 time.
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1 I think it's important to recognize that
2 the reason we were pursuing your direction to
3 develop corridors was to assure that the
4 long run facts would be the speedier citing of
5 these kinds of facilities.
6 GOVERNOR BUSH: Well, let me -- let me ask
7 the -- let me ask Treasurer Gallagher's
8 question again.
9 Are there pending applications that we will
10 use the interim process on kind of defeating
11 the whole purpose? There's a window, it
12 appears, that many of these companies are --
13 are going through, and by the time you create
14 the formal rulemaking process --
15 TREASURER GALLAGHER: We'll be all done.
16 GOVERNOR BUSH: -- we'll have used the
17 interim process, and we wouldn't have dealt
18 with the concerns that were described, as I
19 recall in July, about the environmental aspects
20 of this, the creation of the corridors, some of
21 the significant issues that come into play with
22 our gateway status here.
23 MR. STRUHS: Right.
24 I -- I believe that there will be but one
25 application if you choose to approve this that
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1 will be dealt with under the interim standards,
2 and that every subsequent application will be
3 dealt with under the new rules, assuming that
4 you approve them, that establish predetermined
5 corridors.
6 TREASURER GALLAGHER: Motion on 16.
7 GOVERNOR BUSH: All right.
8 COMMISSIONER CRAWFORD: Second.
9 GOVERNOR BUSH: Any other discussion?
10 There's a motion and a second.
11 Without objection, it's approved.
12 MR. STRUHS: Thank you.
13 GOVERNOR BUSH: Is that the end of the --
14 MR. STRUHS: That's the end.
15 GOVERNOR BUSH: Okay.
16 (The Board of Trustees of the Internal
17 Improvement Trust Fund Agenda was concluded.)
18 * * *
19
20
21
22
23
24
25
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1 GOVERNOR BUSH: State Board of
2 Administration.
3 TREASURER GALLAGHER: Motion on minutes.
4 COMMISSIONER CRAWFORD: Second.
5 TREASURER GALLAGHER: Hey, Bob.
6 GOVERNOR BUSH: Seconding both?
7 COMPTROLLER MILLIGAN: I'd second.
8 COMMISSIONER CRAWFORD: I'm sorry.
9 TREASURER GALLAGHER: I know you're anxious
10 to leave, but you --
11 GOVERNOR BUSH: We'll make you an honorary
12 member of the SBA today.
13 COMMISSIONER CRAWFORD: Just trying to
14 help.
15 GOVERNOR BUSH: There's a motion and a
16 second.
17 Without objection, it's approved.
18 Item 2.
19 MR. HERNDON: Item 2 is approval of the
20 minutes of the meeting -- special meeting held
21 January 4th, and there was a -- a minor
22 amendment to those.
23 So if you -- that could be moved as
24 amended.
25 TREASURER GALLAGHER: Motion as amended.
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1 COMPTROLLER MILLIGAN: Second.
2 GOVERNOR BUSH: I didn't hear what you
3 said, but I assume that --
4 TREASURER GALLAGHER: Motion as amended.
5 GOVERNOR BUSH: -- everybody else --
6 TREASURER GALLAGHER: He had an amendment
7 to the minutes.
8 GOVERNOR BUSH: Moved and seconded.
9 Without objection, it's approved.
10 MR. HERNDON: Item Number 3 is approval of
11 a fiscal sufficiency not exceeding nine million
12 dollars, State of Florida, Board of Regents,
13 Florida State University Housing Facility
14 Revenue Bonds, series 2001.
15 COMPTROLLER MILLIGAN: Motion.
16 TREASURER GALLAGHER: Second.
17 GOVERNOR BUSH: Moved and seconded.
18 Without objection, it's approved.
19 MR. HERNDON: Item Number 4 is a resolution
20 of the State Board of Administration approving
21 the fiscal sufficiency of an amount not
22 exceeding 350 million dollars, State of
23 Florida, State Board of Education Lottery
24 Revenue Bonds for various series. And these
25 are for classrooms and educational facilities.
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1 TREASURER GALLAGHER: Motion.
2 COMPTROLLER MILLIGAN: Second.
3 GOVERNOR BUSH: Moved and seconded.
4 Without objection, it's approved.
5 MR. HERNDON: Item 5 A. is a request to the
6 Trustees to approve for filing for adoption the
7 following rules. These rules are all to be
8 repealed since the statutory provisions that
9 authorize them have been repealed.
10 There was no public hearing, there was no
11 need for a public hearing in the context of a
12 repealing act.
13 COMPTROLLER MILLIGAN: Move 5 A.
14 TREASURER GALLAGHER: Second.
15 GOVERNOR BUSH: Moved and seconded.
16 Without objection, it's approved.
17 MR. HERNDON: Item 5 B. is to request your
18 approval to approve filing Rule 19-10.001 for
19 notice.
20 This rule provides the procedures for the
21 asset transfers for the initial period of
22 choice for public employees between the defined
23 benefit and the defined contribution plan.
24 So we're starting to promulgate some of the
25 specific individual related rules here.
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1 And this particular case is filing for
2 notice so there'll be a workshop -- actually a
3 hearing, excuse me, on February 28th.
4 TREASURER GALLAGHER: Motion, 5 B.
5 COMPTROLLER MILLIGAN: Second.
6 GOVERNOR BUSH: Moved and seconded.
7 Without objection, it's approved.
8 MR. HERNDON: Item Number 6 is an
9 implementation status report number 6 on the
10 status of the program.
11 And if I might, members, just touch on a
12 couple of -- of brief highlights to give you
13 some sense of what's coming up, and that you
14 will see over the course of the next several
15 days.
16 For example, the third party implementation
17 selection committee has met, and picked a
18 prospective vendor as the finalist. And we
19 would be presenting those recommendations to a
20 joint meeting of the Advisory Councils this
21 Friday, and then to the Aides next week, and to
22 you on February 6th for your approval.
23 In addition, the transition brokerage RFI
24 is on the street, and is due to be back to
25 us -- responses back to us on the
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1 31st of January. So moving forward on that.
2 The education advice RFI is also out on the
3 street, and is -- the responses are due back to
4 us by February 5th on that one. So we're
5 moving forward on that one as well.
6 We have, as you know, a variety of court
7 proceedings that are all essentially in the
8 pending mode, although one of them will be
9 debated this Thursday in front of the
10 Administrative Law Judge. And that's a motion
11 by the State Board to dismiss the other
12 petitions.
13 In the interim, we've made -- and I'm
14 hesitant to characterize this as a settlement
15 offer, but we've made a suggestion to the
16 litigants to try and resolve some of the
17 disputed issues.
18 We received yesterday, and Friday evening,
19 responses from two of the litigating parties.
20 We're looking at those responses now.
21 Hopefully we'll begin to move toward some sort
22 of accommodation, although that remains to be
23 seen at this point.
24 We do have some additional rule workshops
25 scheduled for this afternoon and tomorrow, and
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1 then a joint meeting of the Advisory Councils
2 on Friday. There's a lot of activity coming up
3 over the course of the next couple of weeks,
4 and you will start to see a number of these
5 items on the agenda, starting with
6 February 6th.
7 GOVERNOR BUSH: Any comments?
8 Tom, are you going to -- does anything --
9 do you require any legislative action, any kind
10 of glitch bill or any kind of --
11 MR. HERNDON: Yes, sir.
12 I think -- I think the -- the answer that
13 we have concluded at the staff level at this
14 point, and that the legislative committees have
15 concluded, is that the trust fund bill will be
16 needed to implement the PEORP program.
17 As far as glitches in the body of the law
18 itself, we're still looking at a number of
19 possibilities, and haven't made any definitive
20 recommendations to you, or to the
21 Advisory Councils.
22 Our initial thinking right now is, not
23 necessarily, but we may. But the trust fund
24 legislation we think both for Florida law
25 purposes, and Internal Revenue Service
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1 purposes, will be needed.
2 GOVERNOR BUSH: I -- I -- I bring that up,
3 only because if there's not a general consensus
4 of the maj--
5 Salud.
6 -- of the major topics that we've discussed
7 in these public meetings, we're -- you know,
8 the Legislature may -- may have a role to play.
9 Would -- is that going to change the course
10 do you think, or is that going to slow us down,
11 or --
12 MR. HERNDON: Well, it certainly
13 potentially does have that prospect. As
14 you know, there is an interest on part of some
15 of the House leadership to introduce some
16 legislation.
17 I spoke with them yesterday. They gave me
18 a copy of their revised proposal to amend the
19 statute. If that were to pass, it certainly
20 does change in many respects the direction that
21 the program is currently structured, and would
22 clearly slow you down.
23 And -- and, in fact, cause some stepping
24 back in -- in some senses from some of the
25 agreements and RFIs and so forth that -- that
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1 we're moving forward on.
2 So we're very aware of that, and I've had
3 lengthy conversations with them.
4 And, in fact, just coincidentally, I mean,
5 one of the things that we put in our
6 suggestions for resolving some of these
7 disputes is a way to have some consensus during
8 the legislative process upcoming.
9 We haven't resolved that yet, but that's
10 part -- that's one of the items on the table.
11 GOVERNOR BUSH: Have you made a proposal to
12 the bundled providers --
13 MR. HERNDON: Yes.
14 GOVERNOR BUSH: -- based on the last --
15 MR. HERNDON: Yes, sir. I made a proposal
16 to them --
17 GOVERNOR BUSH: Have we seen that?
18 MR. HERNDON: -- as staff.
19 Yes, sir.
20 GOVERNOR BUSH: We've got a copy of --
21 MR. HERNDON: Yes, sir.
22 That proposal was made on the
23 12th of January. And as I indicated, I got one
24 response back on the 19th, and I got another
25 response back yesterday. They weren't as
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1 constructive, frankly, as I had hoped.
2 But we're looking through them to -- to try
3 and understand, make sure we're reading them
4 carefully enough, and -- and thoughtfully
5 enough. And --
6 GOVERNOR BUSH: Thank you.
7 MR. HERNDON: We'll have another response
8 probably in the next couple of days.
9 There's no need for you to act on that
10 status report.
11 The next item on the agenda is a deferral
12 on the --
13 GOVERNOR BUSH: May I ask one more question
14 about it?
15 MR. HERNDON: Yes.
16 GOVERNOR BUSH: I'm sorry. This is such --
17 really important -- I appreciate the fact that
18 when -- when you have an agenda item for us,
19 that we -- you include this every time --
20 MR. HERNDON: Yes, sir.
21 GOVERNOR BUSH: -- because it's important.
22 General Milligan refreshed my memory of a
23 letter that he -- he referred to the last time
24 we were gathered, which I've read, that related
25 to the range of options that -- that we can
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1 take in our fiduciary responsibilities.
2 And I'm not sure that that has been
3 disseminated to the policymakers in the
4 Legislature. I don't know, because there seems
5 to be -- I -- you know, this is new territory,
6 and no one's done this to the extent that we
7 have.
8 And if we have a legal opinion that says
9 one thing, and the Legislature is proposing, or
10 has concerns that may get us into the area
11 where this legal counsel for the SBA is -- has
12 expressed some concerns, how do we -- how do we
13 communicate that so that we don't again get
14 into a position where either we set ourselves
15 up to fail, or set ourselves up for a court
16 case, or set ourselves up for such delays that
17 this -- this is becomes a serious problem?
18 MR. HERNDON: We have provided copies of
19 that correspondence to the relevant legislative
20 committees. I don't know that all the members
21 have them necessarily. And we've had some
22 conversations along those lines, but they
23 haven't been fruitful in the sense of producing
24 any agreement with the legal counsel's opinion.
25 The Legislature has taken the view in the
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1 past, as you know, that ultimately they are the
2 policymakers, they can rewrite the statute,
3 they can --
4 GOVERNOR BUSH: Sure.
5 MR. HERNDON: -- rewrite the provisions of
6 the retirement system, and their determination
7 would prevail.
8 GOVERNOR BUSH: Was this based on --
9 General, was this based on Federal law?
10 COMPTROLLER MILLIGAN: Well, no. In fact,
11 it -- our State statute is based on Federal
12 law.
13 MR. HERNDON: That's right.
14 COMPTROLLER MILLIGAN: So, I mean, it is
15 based on Federal law. But it's our State
16 statute that --
17 MR. HERNDON: The --
18 COMPTROLLER MILLIGAN: -- drives the train.
19 MR. HERNDON: The dilemma, Governor, if I
20 might, is that many public retirement systems
21 are governed by the provisions of ERISA, the
22 Federal statute that governs retirement plans.
23 It does not apply to government systems.
24 However, the Federal law, and Florida lawmakers
25 have, by their choice, reached out and adopted
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1 those provisions and said, we want them to
2 apply to us.
3 And if you read the statute, it says very
4 specifically, we will be governed by the
5 provisions of ERISA. So they've imposed that
6 on themselves.
7 Now they can go back theoretically and say,
8 take it -- take it off. They have that
9 latitude.
10 I don't know exactly how that would play
11 out, quite frankly, for the existing plan and
12 its members, it would be certainly awkward.
13 But --
14 GOVERNOR BUSH: It also -- doesn't that --
15 I mean, the implication of the letter was it
16 will put us in a very compromised -- as
17 Trustees, very compromised position.
18 MR. HERNDON: It puts you in a very awkward
19 spot, there's no question about it.
20 GOVERNOR BUSH: Well, I -- I'd hope that
21 that's included in the list of things to worry
22 about.
23 MR. HERNDON: Yes, sir.
24 COMPTROLLER MILLIGAN: Well, you -- you
25 were, Tom --
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1 TREASURER GALLAGHER: You do have the --
2 COMPTROLLER MILLIGAN: -- I believe --
3 TREASURER GALLAGHER: -- ultimate say in
4 what the Legislature recommends, Governor.
5 GOVERNOR BUSH: I realize this. But I'm
6 just bringing these things out in the public
7 for people to -- to hear. That's all.
8 COMPTROLLER MILLIGAN: You were, Tom,
9 I think going to give us another tutorial --
10 MR. HERNDON: Yes, sir.
11 COMPTROLLER MILLIGAN: -- on our fiduciary
12 responsibilities, which --
13 MR. HERNDON: Yes, sir.
14 COMPTROLLER MILLIGAN: -- I think -- I hope
15 is coming up here pretty quick.
16 MR. HERNDON: I have not had a chance to
17 check on it since I've been back. But my
18 expectation is that it is moving along --
19 COMPTROLLER MILLIGAN: Okay.
20 MR. HERNDON: -- at pace, and I will get
21 you an answer to that shortly.
22 COMPTROLLER MILLIGAN: The -- the other
23 thing, and -- and kind of in response to the
24 Governor's query, is that we may very well be
25 put in a position where we have to litigate,
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January 23, 2001
1 where we have to take some legal action. If
2 we -- we may very well be.
3 TREASURER GALLAGHER: Well, I -- we --
4 nothing has slowed down the -- really slowed
5 down the process of where you're going to this
6 point; is that correct?
7 MR. HERNDON: We've lost a couple of weeks
8 on the third party administrator selection
9 process, but not -- it's not fatal by any
10 stretch. I think we're -- we're still on track
11 to come to you on February 6th.
12 The rest of the --
13 TREASURER GALLAGHER: Education's --
14 MR. HERNDON: -- steps --
15 TREASURER GALLAGHER: -- moving where it's
16 supposed --
17 MR. HERNDON: Education's moving along,
18 transition brokers is moving along. We're
19 moving along on some of the tasks that we have
20 to do to pick the investment providers.
21 But we're very quickly coming to a point
22 where critical mass is going to be reached here
23 on the investment side of things in the next
24 30 days.
25 GOVERNOR BUSH: One of the ideas that was
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1 floated up that I'd love to get y'all's opinion
2 on is to -- relates again back to the bundled
3 providers, how many there should be, and --
4 and, you know, how much choice is too much
5 choice, which I think is an important element
6 of our decision-making process.
7 One of the suggestions would be to
8 standardize the offering of bundled providers
9 to the investment spectrum that -- that we're
10 looking at in the nonbundled provider side, so
11 that each bundled provider would be required --
12 be allowed -- and required to have one fund for
13 each one of these investment --
14 MR. HERNDON: Right.
15 GOVERNOR BUSH: -- the options of --
16 you know, along the spectrum that we would
17 consider to be appropriate for a retirement
18 pool of money.
19 So that there'd be more -- there'd be
20 choices, but this -- but there'd be a little
21 bit of order to it.
22 MR. HERNDON: Correct.
23 GOVERNOR BUSH: Have you talked to --
24 MR. HERNDON: Yes, sir.
25 In fact, and I -- I think what I'm going to
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1 describe is pretty much along the lines of what
2 you're describing, but I'm not absolutely sure.
3 The way the Investment Policy Statement is
4 currently written, it says that in Tier I and
5 Tier III, for example, there are specific
6 investment products. Let's say one of those
7 products is an inflation index bond product,
8 people can put their money in an inflation
9 index bond product.
10 Now, what we then say to the bundled
11 providers is that you must provide a bond
12 product. It need not be an inflation indexed
13 bond product, but it must be a bond product.
14 Essentially you've got that symmetry.
15 So there's an opportunity for them to both
16 complement or duplicate within the broader
17 category of bond product, as opposed to
18 necessarily an inflation indexed bond product,
19 if that -- if I'm making myself clear.
20 GOVERNOR BUSH: You are.
21 But what -- I mean, what about saying --
22 instead of offering ten of them, you know,
23 I mean, because the -- the last conversation --
24 the last time that we gathered and the -- the
25 investment bankers came, the financial
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1 companies came, they talked about 60 or 70 --
2 MR. HERNDON: That's right.
3 COMPTROLLER MILLIGAN: Yeah.
4 GOVERNOR BUSH: -- different options that
5 they provided. Instead of offering ten or six
6 of each one of these investment areas, they
7 would be offering one.
8 MR. HERNDON: Right.
9 GOVERNOR BUSH: And is that something
10 that's unrealistic?
11 Do you -- what do you think, General?
12 COMPTROLLER MILLIGAN: Well, I -- I'd have
13 to think about that a little bit. And Tom,
14 in fact, we -- staff has talked about kind of
15 that approach.
16 I think anything that provides for real
17 competition and a real evaluation of the
18 competition would in -- in a sense, open it up
19 to bundled providers to compete.
20 And then they would compete, and whoever
21 provides the best pricing mechanism and the
22 best product, you know, is able to compete.
23 I -- I have no -- I have no preconceived
24 notion as to the numbers of anything. It
25 should be on the basis of what is in the best
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1 interest of our FRS members.
2 GOVERNOR BUSH: Absolutely.
3 COMPTROLLER MILLIGAN: And -- and whatever
4 falls out, falls out. And they ought to be
5 allowed to compete. And I believe they are
6 going to be allowed to compete.
7 So --
8 MR. HERNDON: One of the discussions that
9 we get into, Governor -- I don't know how much
10 more time you want to spend on this.
11 But this -- this whole question of how you
12 determine whether there's value added from the
13 presence of a bundled provider or not.
14 And one of the discussion points that we've
15 had with them is this concept of whether they
16 complement the arrangement -- the array of
17 products, or whether they duplicate the array
18 of products, and then how do you make
19 determination -- I mean, I think you can make a
20 very legitimate argument that if a bundled
21 provider comes in and wants to provide
22 Product X that is not present in the -- the
23 array otherwise, that that may add some value.
24 Or presumably it's a good Product X.
25 But if they come in and say, we want to
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1 duplicate Product A that's already there, and
2 then you have three or four or five others who
3 want to duplicate Product A, then you get to be
4 a little bit more dicey an analysis.
5 You can certainly make some judgments based
6 on the performance of those products and
7 so forth. But it starts to become a -- a great
8 deal more complex analytically to struggle with
9 that concept of complementary versus some sort
10 of purposeful duplication of products.
11 And that's where we are in talking with
12 the -- with the bundled providers right now.
13 GOVERNOR BUSH: All right.
14 Thank you.
15 Any other comments?
16 MR. HERNDON: The last item is
17 Item Number 8, which is a report by the --
18 GOVERNOR BUSH: Did we do --
19 TREASURER GALLAGHER: Oh, you want --
20 GOVERNOR BUSH: -- Item 7?
21 TREASURER GALLAGHER: -- to defer Item 7.
22 MR. HERNDON: Yeah. Defer -- I'm sorry.
23 Item 7 was recommended --
24 COMPTROLLER MILLIGAN: Second.
25 MR. HERNDON: -- to be deferred.
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1 GOVERNOR BUSH: There's a motion and a
2 second to defer.
3 Without objection, it's approved.
4 MR. HERNDON: And Item Number 8 is a report
5 by the Executive Director for the month of
6 November 2000.
7 TREASURER GALLAGHER: Accept the report.
8 GOVERNOR BUSH: That's for information
9 only.
10 MR. HERNDON: Thank you. That concludes
11 the --
12 GOVERNOR BUSH: Thank you, Tom.
13 (The State Board of Administration Agenda
14 was concluded.)
15 * * *
16
17
18
19
20
21
22
23
24
25
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1 TREASURER GALLAGHER: Motion on the minutes
2 for Bond Finance.
3 COMPTROLLER MILLIGAN: Bob, you can --
4 COMMISSIONER CRAWFORD: I'll second that
5 one.
6 GOVERNOR BUSH: Moved and seconded.
7 Without objection, it's approved.
8 MR. WATKINS: Item Number 2 is a resolution
9 authorizing the issuance of up to
10 fourteen million five hundred and eighty
11 thousand dollars in capital outlay bonds for
12 local school districts and community colleges.
13 TREASURER GALLAGHER: Is this the one that
14 the State Board already approved?
15 COMPTROLLER MILLIGAN: I hope they --
16 COMMISSIONER CRAWFORD: Yeah.
17 COMPTROLLER MILLIGAN: -- approve this.
18 TREASURER GALLAGHER: Motion.
19 COMPTROLLER MILLIGAN: Second.
20 GOVERNOR BUSH: Moved and seconded.
21 Without objection, it's approved.
22 MR. WATKINS: Item Number 3 is a resolution
23 authorizing the competitive sale of up to
24 350 million dollars in Lottery Revenue Bonds.
25 TREASURER GALLAGHER: Motion.
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1 COMPTROLLER MILLIGAN: Motion.
2 Second.
3 GOVERNOR BUSH: Moved and seconded.
4 Without objection, it's approved.
5 MR. WATKINS: Item Number 4 is a resolution
6 authorizing the competitive sale of up to
7 9 million dollars in housing revenue bonds for
8 renovation of Cawthon Hall at Florida State
9 University.
10 SECRETARY HARRIS: Motion.
11 COMMISSIONER CRAWFORD: Second.
12 GOVERNOR BUSH: Moved and seconded.
13 Without objection, it's approved.
14 MR. WATKINS: Item Number 5 is a resolution
15 authorizing the issuance of 3 billion dollars
16 in Florida Forever Bonds. Florida Forever is
17 the successor to the existing Preservation 2000
18 program, which has been authorized
19 legislatively.
20 And I'd like to point out in connection
21 with implementing this, the Legislature will
22 have to come back every year and authorize,
23 through the Appropriations Act, the traditional
24 300 million dollars a year for ten years.
25 So this is the authorization. You will see
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE 75
January 23, 2001
1 a sale resolution for each incremental piece
2 over the next ten years.
3 SECRETARY HARRIS: Motion.
4 TREASURER GALLAGHER: Second.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 MR. WATKINS: Item Number 6 is a report of
8 award on the competitive sale of a hundred and
9 one million seventy thousand dollars in
10 turnpike revenue bonds.
11 Bids were received on November 20th, and
12 the award was to the low bidder at a true
13 interest cost of 5.18 percent.
14 That was a combined new money and refunding
15 piece. The 56 million was new money,
16 44 million in refinancing, and resulting in
17 gross savings of approximately 3 million
18 dollars on the refunding piece.
19 SECRETARY HARRIS: Motion.
20 TREASURER GALLAGHER: Motion.
21 SECRETARY HARRIS: Second.
22 GOVERNOR BUSH: Moved and seconded?
23 Without objection, it's approved.
24 Ben, do the -- on the turnpike, have --
25 have you talked to the leadership of the
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE 76
January 23, 2001
1 turnpike about their debt service coverage,
2 and -- have they come to you about that?
3 MR. WATKINS: We -- we've informally talked
4 about what their ultimate mission is going to
5 be prospectively and what their coverage level
6 should be in order to maximize their ability
7 for -- for future financing.
8 So we've had some informal discussions.
9 But I don't know that there's necessarily been
10 a definitive decision made or -- or direction
11 given in that regard.
12 GOVERNOR BUSH: All right.
13 MR. WATKINS: Item Number 7 is a report of
14 award on the competitive sale of
15 fourteen million six hundred thousand dollars
16 in housing revenue bonds for construction of a
17 dormitory for Florida International University.
18 We awarded -- bids were taken on
19 November 30, and we awarded it to the low
20 bidder at a true interest cost of 5.27 percent.
21 TREASURER GALLAGHER: Motion.
22 SECRETARY HARRIS: Second.
23 GOVERNOR BUSH: Moved and seconded.
24 Without objection, it's approved.
25 MR. WATKINS: Item Number 8 is a report of
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE 77
January 23, 2001
1 award on the competitive sale of
2 thirty-one million six hundred ninety-five
3 thousand dollars in Housing Revenue Bonds for
4 construction of a dormitory at the University
5 of Central Florida.
6 Bids were taken on December 12th, and the
7 bonds were awarded to the low bidder at a true
8 interest cost of 5.18 percent.
9 SECRETARY HARRIS: Motion.
10 TREASURER GALLAGHER: Second.
11 GOVERNOR BUSH: Moved and seconded.
12 Without objection, it's approved.
13 MR. WATKINS: Item Number 9 is a report of
14 award on the competitive sale of two hundred
15 fifty million four hundred twenty thousand
16 dollars in PECO refunding bonds.
17 The -- the bids were taken on January 8th.
18 And the bonds were awarded to the low bidder at
19 a true interest cost of 4.72 percent.
20 The PECO refunding resulted in gross
21 savings of 25.4 million dollars, and on a
22 present value basis, approximately 16 million
23 dollars.
24 GOVERNOR BUSH: Awesome.
25 TREASURER GALLAGHER: Motion.
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE 78
January 23, 2001
1 GOVERNOR BUSH: Moved --
2 Is there a second?
3 COMMISSIONER CRAWFORD: Second.
4 GOVERNOR BUSH: -- and seconded.
5 Without objection, it's approved.
6 MR. WATKINS: Thank you.
7 GOVERNOR BUSH: Thank you, Ben.
8 (The Division of Bond Finance Agenda was
9 concluded.)
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DEPARTMENT OF REVENUE 79
January 23, 2001
1 GOVERNOR BUSH: Department of Revenue.
2 TREASURER GALLAGHER: Motion on the
3 minutes.
4 COMMISSIONER CRAWFORD: Second.
5 GOVERNOR BUSH: Moved and seconded.
6 Without objection, it's approved.
7 Item 2.
8 DR. ZINGALE: Item 2 is the only item on
9 the agenda today.
10 It requests approval of the authority to
11 file with the Secretary of State under
12 Chapter 120 proposed rules. There's four
13 elements of them, two of them admissions in
14 advertising, incorporate law changes, and court
15 rulings.
16 The other two is some cleanup in the
17 transient rental area.
18 Request approval.
19 SECRETARY HARRIS: Motion.
20 ATTORNEY GENERAL BUTTERWORTH: Motion.
21 SECRETARY HARRIS: Second.
22 TREASURER GALLAGHER: Do your last one,
23 Bob.
24 COMMISSIONER CRAWFORD: Second.
25 TREASURER GALLAGHER: Make the motion.
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DEPARTMENT OF REVENUE 80
January 23, 2001
1 COMMISSIONER CRAWFORD: Make -- I'll do the
2 motion. I'll do the motion.
3 Thanks.
4 GOVERNOR BUSH: Don't get into
5 Parliamentary Rules of Procedure. I'll have to
6 ask Crawford how to get out of it.
7 There's a motion and a second.
8 Without objection, it's approved.
9 DR. ZINGALE: Thank you.
10 GOVERNOR BUSH: Thank you, Jim.
11 That ends the meeting.
12 The meeting's adjourned.
13 (The Department of Revenue Agenda was
14 concluded.)
15 * * *
16 (The Cabinet meeting was concluded at
17 10:54 a.m.)
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ACCURATE STENOTYPE REPORTERS, INC.
81
January 23, 2001
1 CERTIFICATE OF REPORTER
2
3
4
5 STATE OF FLORIDA:
6 COUNTY OF LEON:
7 I, LAURIE L. GILBERT, do hereby certify that
8 the foregoing proceedings were taken before me at the
9 time and place therein designated; that my shorthand
10 notes were thereafter translated; and the foregoing
11 pages numbered 1 through 80 are a true and correct
12 record of the aforesaid proceedings.
13 I FURTHER CERTIFY that I am not a relative,
14 employee, attorney or counsel of any of the parties,
15 nor relative or employee of such attorney or counsel,
16 or financially interested in the foregoing action.
17 DATED THIS 2ND day of FEBRUARY, 2001.
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21 LAURIE L. GILBERT, RPR, CCR, CRR, RMR
100 Salem Court
22 Tallahassee, Florida 32301
850/878-2221
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ACCURATE STENOTYPE REPORTERS, INC.
Cabinet
Affairs
