THE
CABINET
STATE OF FLORIDA
_____________________________________________________
Representing:
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, October 8, 2002
commencing at approximately 9:35 a.m.
Reported
by:
SANDRA
L. NARGIZ
Registered
Professional Reporter
Registered Merit Reporter
Certified Realtime Reporter
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FL 32301 (850)878-2221
2
APPEARANCES:
Representing
the Florida Cabinet:
JEB
BUSH
Governor
JIM
SMITH
Secretary of State
ROBERT
F. MILLIGAN
Comptroller
BOB BUTTERWORTH
Attorney General
CHARLIE
CRIST
Commissioner of Education
TOM
GALLAGHER
Treasurer
* * *
3
I N D E X
ITEM
ACTION PAGE
DEPARTMENT OF BOND FINANCE
(Presented by J. Ben Watkins, III)
1 Approved 6
2 Approved 6
3 Approved 6
4 Approved 21
5 Approved 22
6 Approved 22
DEPARTMENT OF LAW ENFORCEMENT
(Presented by James T. Moore)
1 Approved 25
2 Approved 25
STATE
BOARD OF EDUCATION
(Presented by Robin Safley)
1 Approved 26
2 Approved 26
3 Approved 26
4 Approved 28
5 Deferred 28
BOARD
OF TRUSTEES
(Presented by David B. Struhs)
1 Approved 30
2 Deferred 30
3 Approved 42
4 Withdrawn 42
5 Approved 46
6 Approved 49
7 Approved 53
8 Approved 84
STATE
BOARD OF ADMINISTRATION:
(Presented by Coleman Stipanovich)
1 Approved 84
2 Approved 85
3 Approved 85
4 Approved 86
5 Approved 85
6 Approved 86
7A/7B Approved 88
8 Approved 89
9 Approved 90
10 Approved 91
CERTIFICATE
OF REPORTER 92
4
1 P R O C E E D I N G S
2 (The
agenda items commenced at approximated 9:35 a.m.)
3 GOVERNOR
BUSH: In the matter of IMC
4 Phosphate
consolidated cases 01-1080, 01-1081,
5 01-1082,
it has become necessary to appoint a
6 substitute
agency head.
7 I
have appointed Steve Seibert and request
8 your
concurrence in this matter. General
9 Butterworth?
10 GENERAL
BUTTERWORTH: I will do the motion,
11 Governor,
just to make it legally correct here.
12 I
move to appoint Secretary Seibert of
13 Department
of Community Affairs as the agency
14 head
to act in the stead of the Secretary of
15 the
Department of Environmental Protection for
16 the
purpose issuing a final order in these
17 consolidated
cases.
18 This
motion is to authorize Secretary
19 Seibert
to review the recommended order and the
20 record,
with the assistance of staff, and
21 render
a final order as conclusive and effect
22 as
if agency action had been taken by the head
23 of
DEP prior to his disqualification.
24 SECRETARY
SMITH: Second the motion.
25 GOVERNOR
BUSH: There is a motion and a
5
1 second. Any discussion?
2 All
in favor say aye.
3 THE
CABINET: Aye.
4 GOVERNOR
BUSH: All opposed?
5 Thank
you very much.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
6
1 GOVERNOR BUSH: Division of Bond Finance.
2 TREASURER
GALLAGHER: Motion on the minutes.
3 COMMISSIONER
CRIST: Second.
4 GOVERNOR
BUSH: Item 1 is moved and seconded.
5 Without
objection, it passes.
6 Item
2.
7 MR.
WATKINS: Item 2 is a resolution
8 authorizing
the issuance and competitive sale of
9 up
to $195 million in Florida Forever Refunding
10 Bonds.
11 TREASURER
GALLAGHER: Motion.
12 COMMISSIONER
CRIST: Second.
13 GOVERNOR
BUSH: Moved and seconded. Without
14 objection,
the item passes.
15 MR.
WATKINS: Item number 3 is a resolution
16 authorizing
the issuance and competitive sale of
17 up
to $80 million in Facilities Pool Refunding
18 Bonds
for the Department of Management Services.
19 TREASURER
GALLAGHER: Motion.
20 GOVERNOR
BUSH: Is there a second?
21 COMMISSIONER
CRIST: Second.
22 GOVERNOR
BUSH: Moved and seconded. Without
23 objection,
the item passes.
24 MR.
WATKINS: Item number 4 is a resolution
25 authorizing
competitive sale of up to $300 million
7
1 in Lottery Revenue Bonds.
2 And
what I would like to do, Governor, is
3 in
many cases in going about doing our day to
4 day
business of the state, we fail to pause and
5 reflect
on what it is we have accomplished.
6 And
in connection with this agenda item,
7 now
on the verge of completing -- this would be
8 the
last authorization for Lottery Revenue
9 Bonds,
to complete the Lottery Revenue Bond
10 Program.
And so it's appropriate at this time
11 to
take a minute to review what it is we have
12 accomplished
and what this means for the state.
13 So
with your permission, I would like to
14 take
a couple of minutes to run through that
15 with
you.
16 GOVERNOR
BUSH: Sure.
17 MR.
WATKINS: The Lottery Revenue Bond
18 Program
is a $2.7 billion program that is
19 specifically
dedicated to K through 12 capital
20 outlay
spending.
21 The
2.7 billion is made up of two separate
22 components.
There is two and a half billion
23 dollars
of the Lottery Revenue Bond Program and
24 $200
million of general revenue, and the total
25 of
those two sources making up the
8
1 $2.7 billion.
2 It
has gone to fund four separate
3 programs.
There is the Classrooms First
4 Program,
Effort Index Grant Program, School
5 Infrastructure
Thrift Program and Small County
6 Assistance
Program.
7 Classrooms
First was a 2 billion-dollar
8 program.
Effort Index Grants, $300 million;
9 School
Infrastructure Thrift, $350 million; and
10 Small
County Assistance, $50 million.
11 The
Lottery Revenue Bond Program, even
12 though
it was initially authorized in '97 and
13 the
appropriations authority given, the way
14 that
the program works is it is implemented
15 incrementally
as the cash is needed to pay
16 construction.
It's implemented on a cash flow
17 basis,
which means simply that bonds are sold
18 when
the cash is necessary to pay bills for
19 construction.
20 So
the local school districts are
21 responsible
for determining what schools get
22 built,
where they get built, the architect and
23 engineering
and permitting, and the actual
24 management
of the construction process.
25 Then
they submit the bills, a requisition
9
1 in effect, for drawing down the monies for the
2 state.
So it has taken five years for this
3 $2.7
billion in spending to actually mean
4 bricks
and sticks on the ground and for the
5 draw
down of those monies to occur.
6 So
now we are at the final installment of
7 bonds;
we have sold 11 installments of bonds
8 since
1998 totalling $1.8 billion.
9 And
where we are right now, of the
10 $2.7
billion in budget authorization that has
11 been
given in the commitment to provide the
12 funding,
actually $2.3 billion in cash has been
13 distributed
to pay bills.
14 So
we are $439 million shy of completing
15 the
$2.7 billion commitment for school
16 construction
purposes.
17 And
of the 439 million that we have yet to
18 distribute
the cash for, we have
19 $215
million -- excuse me, $224 million in cash
20 in
the bank at the Department of Education
21 available
to be drawn down on; leaving
22 $215
million of bonds to be sold which, when
23 combined
with the cash on deposit at the
24 department,
will make up the $439 million in
25 cash
needed to complete the funding of this
10
1 entire program.
2 And
it has been represented to me that I
3 can
simply take a piece of paper and lay it on
4 this
table, and somehow it magically appears.
5 And
I smell a setup coming here, Governor. I
6 am
going to try it anyway.
7 GOVERNOR
BUSH: Wow, magic.
8 MR.
WATKINS: That is magic. I was expecting
9 a
screen or something, and when they told me to
10 put
it on the table, I wasn't quite sure, but here
11 we
go.
12 To
help put the Lottery Bond Program in
13 perspective
and in context, it's important that
14 we
look at other sources of funding K through
15 12
school construction.
16 And
there are really three fundamental
17 sources
of money or programs that provide for K
18 through
12 school construction.
19 It's
the Lottery Bond Program, PECO Bonds,
20 which
is the mainstay of the state's education
21 funding
program, and lastly, a program we call
22 CO
and DS which is an acronym that stands for
23 Capital
Outlay and Debt Service.
24 What
it is is a portion of motor vehicle
25 license
tag revenues pledged to repay debt,
11
1 also secured by the state's full faith and
2 credit.
So those are the three programs that
3 provide
the funding for K through 12 school
4 construction
in the state.
5 We
picked a five-year period because
6 that's
the period of the Lottery Revenue Bond
7 Program,
that's the period we want to look at
8 in
evaluating the Lottery Bond Program in the
9 context
of other sources that we also use for
10 school
construction.
11 And
what you can see from this chart is
12 that
over the last five years, the combined
13 sources
of those three revenue streams provided
14 a
total funding of 4.962 billion. So let's
15 just
round it off and call it $5 billion.
16 So
there had been budgeted and
17 appropriated
-- there is two ways to look at
18 this
and to evaluate it and measure it.
19 One
is the amount we have included in the
20 budget,
that's appropriated, that is a
21 commitment
for the state to provide the funds.
22 And
then a second way to look at it, which
23 is
a lower chart, is actually cash out the door
24 to
fund -- to pay for the bills for school
25 construction.
12
1 So we are looking at it in both of these
2 ways;
because of the nature in which we
3 implement
the programs, PECO is the same way as
4 the
Lottery Revenue Bond Program; in other
5 words,
the appropriation is included in one
6 year
but the cash distributed to the districts
7 occurs
in subsequent years as the bills are
8 submitted
to the state, and the cash needs to
9 be
distributed to the districts in order to pay
10 those.
11 So
I am looking at it in two different
12 ways
to measure this.
13 And
from an appropriations standpoint, on
14 average,
we provided $5 billion over five years
15 or
a billion dollars a year for K through 12
16 school
construction. And when we look at it
17 from
a cash flow standpoint and talk about how
18 much
money has actually gone out the door, what
19 you
can see is that in cash distributed to the
20 districts
to fulfill the commitment for the
21 appropriation,
we have distributed $3.8 billion
22 over
that same five-year period.
23 GOVERNOR
BUSH: But if you look at it from
24 the
fiscal year, what you project, that number
25 will
be higher by 330 million, 340 million for
13
1 PECO and the Lottery you said there was
2 400
million, so another $700 million; so it's 4.5
3 or
4.6 billion at the end of the fiscal year?
4 MR.
WATKINS: Right. The need for the cash
5 is
very difficult to project because of the
6 multitude
of the mix of projects. But suffice it
7 to
say there are projects out there being
8 constructed;
and as those are completed and the
9 bills
submitted, the money will be drawn down.
10 Your
point is well taken, Governor, which
11 is
2002-2003 cash disbursements only reflects
12 two
months of the current fiscal year. And
13 there
will be substantial distributions beyond
14 that
for the remainder of the fiscal years.
15 GOVERNOR
BUSH: Two questions; three
16 questions.
17 What
about local effort? You didn't --
18 the
bond issues, recently where local districts
19 have
approved increased funding. PECO is their
20 main
source of funding, but they also have
21 additional
sources they can go to the voters
22 with?
23 Secondly,
how does the state's
24 contribution
to capacity building for schools
25 compare
to other states, if you know that?
14
1 And third, is there a limit, is there a --
2 is
there a limit to what we could finance, just
3 given
that the gestation period of planning,
4 design,
permitting, construction, getting ready
5 for
school years, is there a limit based on our
6 experience
with the Lottery Bonding Program
7 that
constrains how much money you would want
8 to
bond?
9 MR.
WATKINS: I will take them in order,
10 Governor.
11 The
first question is local effort. And I
12 did
not attempt to assimilate information on
13 all
the required local effort.
14 I
do know, however, there was a law passed
15 about
three years ago, local options, passing
16 local
options sales tax where local school
17 districts
could, by referendum, approve the
18 imposition
of a half-penny sales tax and can
19 leverage
that as well. So it gives them the
20 ability
to raise money locally and leverage it.
21 And
I know, having gathered the
22 information
and being involved with the Leon
23 County
School District in studying their
24 facilities
needs, we looked at -- and I think
25 there
are seven different counties. I know
15
1 Orange County recently passed one, a referendum
2 in
the primary, Manatee County has passed one,
3 Pinellas
County has passed one.
4 GOVERNOR
BUSH: Sarasota, Volusia.
5 MR.
WATKINS: That generates substantial
6 dollars
for construction.
7 And
there are also two-mill money that
8 local
school districts can levy specifically
9 for
capital outlay purposes, that they do levy
10 and
typically do maximize the amount of
11 resources
they have available. So that's
12 another
source of funding.
13 There
are certificates of participation
14 that
can be issued without referendum at the
15 local
level which is a legal fiction in the
16 sense
that it's not considered debt because
17 it's
subject to appropriation, which means the
18 school
district legally has the option to
19 nonappropriate
and walk away from its
20 commitment.
21 But
from a practical standpoint, they
22 couldn't
do that simply because it would
23 foreclose
future access to the credit markets.
24 So
as a legal matter, it's not considered a
25 debt.
As a practical matter, it is a debt and
16
1 it's a way, a tool that local school districts
2 use
to provide funding.
3 So
there are other sources, that if you
4 wanted
to see a macro picture of state level
5 funding
and local funding combined, that would
6 be
necessary to take into account, but we
7 haven't
done that for this purposes; I was just
8 focussing
on Lottery and State funding.
9 The
second question is sort of how does
10 the
state stack up against other states in
11 education
spending?
12 GOVERNOR
BUSH: Capital spending.
13 MR.
WATKINS: Capital spending. And that is
14 another
issue that I have not quantified and tried
15 to
evaluate.
16 GOVERNOR
BUSH: I was told we were second
17 last
year.
18 MR.
WATKINS: I was going to say my instincts
19 tell
me we are pretty high. That's simply because
20 anecdotally,
the PECO program is our largest bond
21 program.
There is over $9 billion in debt. We do
22 more
PECO bonds than we have done for any other
23 program
that, combined with the Debt Affordability
24 Study
we did and where we are in relation to other
25 states,
tells me that a vast majority of what we
17
1 borrow and what we go in debt for as a state is
2 specifically
related to school construction.
3 PECO
funds K through 12, community
4 colleges
and universities, so it goes across
5 all
lines. And the legislature makes a
6 decision
every year about how much is devoted
7 to
each purpose. But on an overall basis, I
8 would
think we are pretty high.
9 Last,
the last question is sort of what is
10 the
outer limit?
11 And
I would answer that question by
12 evaluating
it in the context of the Debt
13 Affordability
Study which we adopted by policy
14 to
determine whether or not a particular
15 initiative
is above or below the line.
16 We
got a target; we got a limit. We can
17 quantify
it; we can measure it. We can
18 evaluate
the future financial impact; we
19 provide
that information to the legislature for
20 them
to make a decision about prioritizing
21 capital
spending and allocating scarce
22 resources.
And that's what this is all -- the
23 whole
Florida of the Debt Affordability Study,
24 so
that's how I look at that and evaluate that.
25 GOVERNOR
BUSH: Do you know what the
18
1 practicality -- I wasn't really asking about that,
2 but
that's certainly true, what you said about the
3 practicality
in terms of financial feasibility.
4 But
what about the just the practicality
5 of
getting money into the ground and building
6 capacity?
I don't know, I sometimes wonder how
7 fast
-- maybe our schools districts aren't the
8 most
efficient in building capacity, but is
9 there
a limit as a state -- I mean, based on
10 the
experience of the 2.8 billion, I think a
11 lot
of people are surprised we are still
12 bonding
proceeds of something that was done
13 five
years ago.
14 I
am just curious if we learned any
15 lessons
about the speed by which capacity can
16 be
built under our system?
17 MR.
WATKINS: Governor, you are exactly
18 right.
19 I
would look at our experience in the
20 Lottery
Revenue Bond Program to answer that
21 question.
And our experience was and the
22 expectation
in a lot of legislators' minds is
23 that
if we approved $2.7 billion in funding,
24 we'd
sell one big bond issue in year one and
25 we'd
distribute it to the districts and be done
19
1 with it.
2 Fortunately,
because of the way the
3 program
was designed, there were built-in
4 checks
and balances to make sure that the
5 funding
was efficiently and effectively
6 deployed
and distributed to the districts.
7 And
so the way that we did that is by
8 saying:
Let's design this program exactly the
9 same
way PECO works.
10 PECO
has served the state very, very well
11 in
terms of the way that it's administered and
12 the
efficiency of marrying the borrowing of
13 money
with the distribution of cash and
14 matching
those two things as closely as we can.
15 And
so that was what we were looking at
16 when
the Lottery Bond Program was designed and
17 a
decision made about how it would be
18 implemented.
19 And
so what is important to understand is
20 that
the funding was made available on day one,
21 in
effect, because the money was included in
22 the
budget; the appropriation authority was
23 given
through encumbrance authorization, which
24 allows
the local school districts to legally go
25 out
and sign a contract to build a school,
20
1 which is exactly what they did. And it's taken
2 us
five years to effectively absorb the funding
3 that
was provided in 1997.
4 GOVERNOR
BUSH: So based on that, if the
5 initiative
that's on the ballot passes, how -- I
6 just
-- are we going to have to use other means to
7 build
capacity? Because if the traditional
8 brick-and-mortar
approach is limited, there is a
9 lot
of money, but there a finite amount of
10 capacity
that can be built by doing the
11 traditional
way of siting property, going through
12 the
development process, designing the building
13 and
building it.
14 If
the initiative requires a capacity
15 greater
than what our capacity to build is, one
16 would
have to conclude, would one not, that we
17 would
have to find other alternatives to build
18 capacity?
19 MR.
WATKINS: Absolutely.
20 GOVERNOR
BUSH: Temporary ones, like things
21 in
the football fields, with sidewalks to the
22 cafeteria
hopefully.
23 MR.
WATKINS: Or double sessions or lots of
24 other
things that people, the local officials,
25 local
school district officials find difficult.
21
1 But I think that's a fair assessment.
2 GOVERNOR
BUSH: Thought provoking. Thank
3 you,
Ben.
4 MR.
WATKINS: In conclusion, on this
5 particular
item, from looking at the numbers, what
6 it
tells me is by either measure, whether you are
7 talking
about appropriations and budget authority
8 or
whether you are talking about cash distributed
9 to
the districts, this program, the Lottery Bond
10 Program
represents a substantial investment by the
11 state
in K through 12 school construction. And
12 that
is what I wanted people to understand in
13 considering
agenda item number 4, which is the
14 last
installment of this program.
15 GOVERNOR
BUSH: Is there a motion?
16 TREASURER
GALLAGHER: Move.
17 COMMISSIONER
CRIST: Second.
18 GOVERNOR
BUSH: Moved and seconded. Without
19 objection,
it's approved.
20 Thank
you, Ben.
21 MR.
WATKINS: Item 5 is a report of award on
22 the
competitive sale of 250,955,000 in Department
23 of
Transportation Right-of-Way Acquisition and
24 Bridge
Construction Bonds.
25 The
bonds were awarded to the low bidder
22
1 at a true interest cost of 4.53 percent. Of
2 the
$253,000,000, $250,955,000 is new money for
3 purposes
of right-of-way acquisition and
4 6.3
million -- or excuse me, 50,955,000 is for
5 refunding
purposes, and 200 million is for new
6 construction;
too many numbers, Governor, too
7 many
numbers.
8 TREASURER
GALLAGHER: You saved 6 million --
9 MR.
WATKINS: Thank you very much for
10 completing
that thought.
11 Gross
debt service savings was 6.2 million
12 and
present value savings was 4.2 million.
13 TREASURER
GALLAGHER: Motion on 5.
14 COMMISSIONER
CRIST: Second.
15 GOVERNOR
BUSH: Moved and seconded. Without
16 objection,
the item is approved.
17 MR.
WATKINS: Item number 6 is a report of
18 award
on the competitive sale $326 million of PECO
19 refunding
bonds.
20 The
bonds were awarded to the low bidder
21 at
a true interest cost rate of 4.057 percent,
22 generating
gross debt service savings for the
23 state
of 38.2 million and on a present value
24 basis,
26.2 million.
25 TREASURER
GALLAGHER: Motion on 6.
23
1 COMMISSIONER CRIST: Second.
2 GOVERNOR
BUSH: Moved and seconded. Without
3 objection,
the item passes.
4 MR.
WATKINS: One other thing of note, just
5 to
give you again a broader perspective of
6 refunding
activities during the current calendar
7 year.
8 Interest
rates have been extraordinarily
9 low
from a historical perspective; contrary to
10 sort
of conventional wisdom a year ago, we have
11 executed
in the current calendar year
12 $1.1
billion in refunding bonds, the majority
13 of
which relates to PECO, because it's the
14 largest
program we have, generating gross debt
15 service
savings to the state of 133 million or
16 $93.4
million on a present value basis. So we
17 have
been busy taking advantage of
18 opportunities
that presented themselves.
19 The
refunding that you all authorized at
20 the
last Cabinet meeting in St. Petersburg,
21 which
was authorized on Tuesday, was sold on
22 Wednesday
and this is the report of award that
23 appears.
As you can see from prior -- the
24 agenda
item this morning, we have got some
25 other
candidates that we are moving to execute
24
1 on.
2 COMMISSIONER
CRIST: My staff informs me that
3 through
the efforts of Ben Watkins and his staff,
4 that
an estimated 80.2 million has been saved in
5 PECO
refunds, which will be reinvested in the
6 Florida
education system this year. So thank you.
7 GOVERNOR
BUSH: Thank God for the two guys in
8 the
Federal Reserve who voted for lower rates,
9 contrary
to Greenspan.
10 Thank
you, Ben.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
25
1 GOVERNOR BUSH: The Florida Department Of Law
2 Enforcement.
3 TREASURER
GALLAGHER: Motion on the minutes.
4 COMMISSIONER
CRIST: Second.
5 GOVERNOR
BUSH: Moved and seconded. Without
6 objection,
the item passes.
7 Item
2.
8 MR.
McLaughlin: Merely a year ago, the Department
9 began
a process of revising our administrative
10 rules
to comport with changes in state statute,
11 federal
law and regulation, and some policies
12 adopted
by commission counsel that are located
13 within
the Department of Law Enforcement; we
14 requested
in July the authority to move forward
15 with
that process. You granted that. We have
16 today
before you a request to finalize these rules
17 effective
October 31 of this year.
18 COMMISSIONER
CRIST: So moved.
19 GOVERNOR
BUSH: There is a motion, is there a
20 second?
21 TREASURER
GALLAGHER: Second.
22 GOVERNOR
BUSH: Any discussion? Motion
23 passes
without objection.
24 Thank
you very much.
25
26
1 GOVERNOR BUSH: The Department of Veterans
2 Affairs
Agenda item we deferred until the
3 October
22nd meeting.
4 State
Board of Education. Robin, how are
5 you
doing?
6 TREASURER
GALLAGHER: Motion on the minutes.
7 COMMISSIONER
CRIST: Second.
8 GOVERNOR
BUSH: Moved and seconded. Without
9 objection,
the item passes.
10 TREASURER
GALLAGHER: That's including
11 August
13, August 27 and September 10 meetings.
12 GOVERNOR
BUSH: Thank you, Treasurer.
13 MS.
SAFLEY: Item 2 is the approval of a
14 resolution
authorizing the issuance and sale of up
15 to
300 million Lottery Revenue Bonds.
16 COMMISSIONER
CRIST: Motion.
17 TREASURER
GALLAGHER: Second.
18 GOVERNOR
BUSH: Moved and seconded. Without
19 objection,
the item passes.
20 MS.
SAFLEY: Item 3 is proposed High Priority
21 Location
Schools for the 2002-2003 school year.
22 TREASURER
GALLAGHER: Motion.
23 COMMISSIONER
CRIST: Second.
24 GOVERNOR
BUSH: Without the objection, item
25 passes.
27
1 MS. SAFLEY: Item 4 is a request for a
2 five-year
renewal of Volusia County's charter
3 district
school. We have Dr. Chris Colwell,
4 assistant
superintendent for curriculum, to make a
5 brief
introduction.
6 GOVERNOR
BUSH: Welcome back.
7 MR.
CALDWELL: Thank you, Governor, it's good
8 to
be back.
9 Governor
Bush, Members of the Cabinet, my
10 name
is Chris Colwell, I am assistant
11 superintendent
for curriculum and school
12 curriculum
in Volusia County.
13 On
September 24, 2002, I had the honor,
14 along
with Tim, the deputy superintendent, and
15 Mr.
Bill Hall, superintendent, to address the
16 State
Board Of Education in order to provide a
17 progress
report on the implementation of the
18 charter
district contract between this board
19 and
the Volusia County school board.
20 In
that presentation it was noted that the
21 Southern
Association of Colleges and Schools
22 recommended
the charter school district
23 contract
to be renewed an additional five
24 years.
25 Also
on September 24, the School Board of
28
1 Volusia County took action to approve a renewal
2 of
the charter contract for an additional five
3 years,
effective July 1, 2003, and remaining in
4 effect
through June 30, 2008.
5 At
this time the superintendent and the
6 School
Board of Volusia County would request
7 the
State Board of Education approve this
8 five-year
renewal of their charter contract.
9 GOVERNOR
BUSH: Any discussion? I think we
10 had
a good discussion last meeting, and we
11 appreciate
your work on this. Is there a motion?
12 COMMISSIONER
CRIST: I have a motion to
13 approve
the five-year renewal of the Volusia
14 Charter
District contract effective July 1, 2003
15 through
June 30, 2004.
16 GENERAL
BUTTERWORTH: Second.
17 GOVERNOR
BUSH: There is a motion and a
18 second.
Anymore discussion?
19 The
item passes without objection. Thank
20 you
very much.
21 MS.
SAFLEY: Item 5 is Spiral Tech Elementary
22 School
versus Miami-Dade County School Board.
23 COMMISSIONER
GALLAGHER: Move to defer until
24 October
22nd.
25 COMMISSIONER
CRIST: Second.
29
1 GOVERNOR BUSH: There is a motion to defer
2 and
a second. Without objection, the item is
3 deferred.
Thank you, Robin.
4 MS.
SAFLEY: Thank you.
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
1 GOVERNOR BUSH: Board of Trustees.
2 TREASURER
GALLAGHER: Motion on the minutes.
3 COMMISSIONER
CRIST: Second.
4 GOVERNOR
BUSH: Moved and second. Without
5 objection,
the item passes. Item 2.
6 MR.
STRUHS: Good morning, Governor.
7 GOVERNOR
BUSH: Good morning.
8 MR.
STRUHS: Item 2 we would like to defer
9 until
November 26.
10 TREASURER
GALLAGHER: Motion to defer.
11 COMMISSIONER
CRIST: Second.
12 GOVERNOR
BUSH: There is a motion to defer
13 and
a second. Without objection, the item is
14 deferred
until November 26.
15 MR.
STRUHS: Item 3 is an opportunity to tell
16 what
I think is a really positive story about what
17 this
Cabinet, the Legislature and Governor have
18 done
this last four years.
19 Over
the last four years, if you look at
20 the
record, we have now acquired, Governor, a
21 quarter
of a million acres of conservation land
22 across
Florida. That's because of things like
23 Florida
Forever and the legislature's
24 generosity
and then what this Cabinet does
25 every
other week.
31
1 One of the things that has gotten a lot of
2 attention
in the last few years is just not
3 spending
money and buying land but are we
4 managing
it well? Are we managing it for the
5 intended
public purpose?
6 And
to that point, we have put every
7 property
in the State of Florida on a regular
8 five-year
cycle so we can go back and review
9 our
plan for managing it and how we are doing
10 against
that plan.
11 In
the last round of the five-year reviews
12 we
looked at a variety of properties, including
13 Troy
Springs State Park.
14 And
what we discovered at Troy Springs
15 State
Park is that there were some problems.
16 There
were some issues that were lacking.
17 What
I am proud to do today is to report
18 to
you how this accountability and management
19 has
uncovered these problems and allowed us to
20 repair
and address them in a way that was
21 prudent
and cost effective.
22 These
kinds of investments of about
23 $700,000
in this park has made it far more
24 environmentally
sensitive in terms of dealing
25 with
erosion, siltation, and it's made it a
32
1 safer and more publicly-accessible property.
2 We
have a very short presentation, but
3 some
nice pictures that will demonstrate what
4 this
management plan is doing and using Troy
5 Springs
as an example of that.
6 I
would like to introduce two individuals
7 from
our staff, Randy Smith and Al Gregory, who
8 will
do the presentation.
9 GOVERNOR
BUSH: Okay.
10 MR.
GREGORY: Thank you, Governor, Members of
11 the
Cabinet, I am Albert Gregory with the Division
12 of
Recreation and Parks.
13 We
have a very brief slide presentation
14 for
you today of Troy Springs State Park, we
15 will
show you some of the management
16 accomplishments
that we have been able to make
17 since
we have been managing the property there.
18 This
first slide you see is the boundary
19 map
of the park. The property contains
20 79
acres, almost all of which is uplands. The
21 large
black feature on the north is the
22 Suwannee
River itself. The linear feature on
23 the
southwest of the image is County Road 425.
24 The
access to the property is off of County
25 Road
425 in the small appendage that sticks
33
1 down there.
2 The
park was acquired in 1995 under the
3 Conservation
and Recreation Lands Program. The
4 purpose
of acquisition, one, was to protect the
5 springs
and its associated water resources, and
6 second,
to provide compatible outdoor
7 recreation,
the kinds of outdoor recreation
8 that
are compatible with the primary purpose of
9 springs
protection.
10 The
land was leased to the Office of
11 Greenways
and Trails in DEP for an interim
12 management
period, and in 1997 it was leased to
13 the
Division of Recreation and Parks for
14 management
as part of the state park system.
15 The
main natural feature of the park, of
16 course,
is Troy Spring. This is a view of the
17 spring
bowl on the left, the spring run, you
18 can
see the clear water, and indeed the
19 standing
waters of the Suwannee River.
20 The
park has important cultural features
21 as
well. The main one, the one that is most
22 manifest,
you can see near the mouth of the
23 spring
run there is an oval shaped feature;
24 that's
the remains of the CSS Madison.
25 GOVERNOR
BUSH: Can you point that out on the
34
1 picture, please? I don't see the remains.
2 MR.
GREGORY: It's the oval shaped feature
3 near
the black rocks, near the mouth of the
4 spring.
That's the actual remnants of the Madison
5 itself.
6 GOVERNOR
BUSH: I can see that.
7 The
Madison was one of the steam-powered
8 boats
that traveled the Suwannee River during
9 the
Civil War. During the Civil War it was
10 left
in the spring run, scuttled to stay and
11 over
the years it has been dismantled. Indeed
12 what
you see now is what is left of the CSS
13 Madison.
It's basically the ribs of the boat
14 on
the bottom of the river.
15 State
parks in Florida have an open land
16 policy.
When we are assigned lands to manage
17 as
part of the state park system, one of our
18 first
jobs is to get public access to the
19 property
as soon as possible. We do that
20 normally
by way of a basic amenities package
21 which
we call a starter kit. Starter kits are
22 composed
of a self-composting toilet stabilizig
23 the
parking area and picnic shelter and a basic
24 information
kiosk so visitors can orient
25 themselves
to the property.
35
1 In the case of Troy Spring we considered
2 doing
that, but Troy Springs had several
3 problems
which limited our ability to install
4 or
normal starter kit package.
5 The
first problem is depicted by the
6 slide.
The entrance road that had been used
7 for
years by people to get to the spring was on
8 state
property, then it left state property and
9 crossed
private property. So if we were to use
10 that
road as the primary access to the park, we
11 would
be putting the visitors in the situation
12 of
trespassing on the neighbor's land.
13 This
slide, you can see the metal post
14 standing
on our boundary looking into the
15 joined
private property and you can see the
16 road
some 50 to 60 feet inside the private
17 property.
18 The
second problem that we were dealing
19 with
was Troy Springs had no facilities to
20 channel
visitor use. The property had not been
21 opened
to the public for recreation prior to
22 the
state's acquisition and as you can see from
23 the
slide of the spring head as it existed just
24 after
acquisition, there is no way for the
25 public
to get down to the water.
36
1 So if we were to provide public access
2 without
the benefit of the facilities to
3 channel
public use and handle the visitors'
4 impact,
we would be actually causing
5 destruction
to the spring.
6 The
third reason was Troy Springs had
7 plenty
of public access from the Suwannee River
8 anyway.
It had been used by many visitors; in
9 this
case in this slide there is a group of
10 cave
divers gathering and assembling, ready to
11 go
into the springs for a cave dive; you can
12 see
the means of access, people pulling pontoon
13 boats
up, motor boats, they get out, and you
14 can
see the impact that this kind of use has
15 had
on the shoreline of this spring run. You
16 can
see erosion there clearly.
17 Troy
Springs is just about the northern
18 limit
that motor boats can go up the Suwannee
19 River
without causing damage to the boats.
20 Large
shoal areas begin to occur just upstream
21 from
here. So for all practical purposes, this
22 is
where the boats stop on the river; that's
23 why
Troy Springs has been a very popular
24 recreational
area in the past in this manner.
25 We
finished our land management plan in
37
1 March 2000. In the 2001-2002 legislative
2 budget
request, we asked for and received
3 $500,000
in park development funds. And this
4 is
our site plan for the park that has guided
5 our
park development efforts. And at this
6 point,
Randy Smith will take you through the
7 rest
of it.
8 MR.
SMITH: Thank you, Governor and Cabinet.
9 The
site plan illustrates two categories
10 of
features in the park: Existing structures
11 and
conditions and new construction
12 improvements.
13 The
existing conditions consist of a
14 concrete
boat ramp at the eastern edge of the
15 spring;
the residence which is a log cabin and
16 currently
provides housing for our resident
17 ranger;
a caboose which I understand was placed
18 on
the property by a previous owner who was a
19 railroad
executive; the barn which is being
20 used
as a maintenance building, and the
21 Madison.
22 The
construction improvements, as
23 illustrated,
located on the Suwannee River is a
24 fixed
observation platform that supports a
25 gangway
to a floating dock where motorized
38
1 craft can dock and access the springs by way of
2 a
existing concrete ramp through a series of
3 ADA-compliant
walkways.
4 The
flooding barricade indicated at the
5 entrance
to the spring is placed there to
6 prevent
motor craft from entering the spring
7 and
causing continued damage to the Madison and
8 the
spring slopes.
9 The
entranceway to the park was laid out
10 to
preserve trees and natural vegetation. The
11 road
is winding and it's two-laned and is
12 divided
in several locations to create green
13 islands
of separation.
14 The
road leads to a 20-unit parking lot
15 that's
connected to a series of sidewalks that
16 provides
access to the restroom facility and
17 the
ramps to the spring access which are
18 constructed
in gray.
19 At
the edge of the spring is a sizeable
20 dock
that has been constructed. The perimeter
21 of
the dock was designed to fit in harmony with
22 the
natural limerock formations at the edge of
23 the
spring. All of these improvements are in
24 place
and as of the end of last month, the
25 project
was 100 percent complete.
39
1 GOVERNOR BUSH: Thank you.
2 MR.
STRUHS: With that, it's just a good
3 example
I think of the fact with the quarter of a
4 million
new acres acquired over the last four
5 years,
we haven't lost sight of the need to make
6 necessary
improvements and investments to manage
7 these
properties. I would have to point out one
8 thing
on this particular property.
9 About
a 700,000-dollar investment to make
10 these
improvements; about $500,000 of that,
11 Governor,
I think came from your Florida
12 Springs
Initiative which is a focussed effort
13 on
improving the protection of Florida springs.
14 So
we are real pleased with that.
15 The
local community is very pleased as
16 well
with the progress we have made that.
17 With
that, by way of introduction and
18 background,
all we need on this item is your
19 acceptance
of the overall report which is in
20 your
materials.
21 GOVERNOR
BUSH: Is there a motion to accept?
22 GENERAL
BUTTERWORTH: Motion.
23 TREASURER
GALLAGHER: Second.
24 GOVERNOR
BUSH: Any other discussion?
25 GENERAL
BUTTERWORTH: I just have one
40
1 question, Governor.
2 I
think this has come up with previous
3 Secretaries
and I may have to worry about this
4 or
may not have to. But how do we keep funding
5 all
this land we manage, not only this
6 wonderful
site, but all the others? I know
7 other
Secretaries before you always said: Wait
8 a
minute, do we have to fund --
9 MR.
STRUHS: We do. When the Governor
10 proposed
the idea of Florida Forever now three and
11 a
half years ago, specifically noted the need to
12 not
just take the money to buy the land, but to
13 reserve
a portion of it specifically for
14 management.
And I think that has made a big
15 difference.
16 Also
the legislature, I think, back when
17 Commissioner
Bronson was Senator Bronson, he as
18 a
sponsor of that bill I think made a specific
19 effort
on focussing the department on improving
20 our
management.
21 So
we have clearly gotten the message from
22 the
legislature, from the Governor, as well as
23 from
this Cabinet. And we are taking it to
24 heart
and we are making the resources
25 available.
41
1 This springs areas are especially
2 vulnerable,
unless they are managed correctly.
3 And
the additional resources that came from the
4 Governor's
Springs Initiative had been well
5 received
and have allowed us to make some very
6 strategic
improvements.
7 GOVERNOR
BUSH: Florida Forever has a higher
8 percentage
of management dollars being spent as a
9 percentage
of the overall amount than what we had
10 in
Preservation 2000.
11 MR.
STRUHS: That's correct.
12 GOVERNOR
BUSH: Which was a general
13 reflection
of -- is there a confirmation of that?
14 MR.
STRUHS: No, we know that's the truth. I
15 was
just given the exact figure.
16 GOVERNOR
BUSH: The point being that I think
17 with
Preservation 2000, which is a great program,
18 I
think one of the defects that was clear when
19 there
was a chance to review it was that we were
20 not
putting enough money into management.
21 And
interestingly, I think with Florida
22 Forever,
when we get enough experience under
23 our
belt, we will find that we are not, by
24 definition,
we are not going to buy a billion
25 acres
like we did; it would be less, but it
42
1 will be more strategic as it relates to parcels
2 in
the path of development, more focus on
3 public
access to these properties as well.
4 So
there is still work to do on the
5 management
side. I don't think anybody in the
6 department
would suggest otherwise. I hope you
7 are
not.
8 MR.
STRUHS: No, sir.
9 GOVERNOR
BUSH: We need to do more.
10 MR.
STRUHS: What we are sufficiently proud
11 of
with this report is to demonstrate to you and
12 demonstrate
to the public that we have
13 accountability,
a new heightened sense of
14 accountability,
to make sure that these properties
15 are,
in fact, being reviewed.
16 GOVERNOR
BUSH: Any other discussion? There
17 is
a motion to accept this report and a second, I
18 believe.
19 Without
objection. The items passes.
20 MR.
STRUHS: Item 4, we would like to
21 withdraw
this item from the agenda.
22 GOVERNOR
BUSH: Motion to withdraw.
23 GENERAL
BUTTERWORTH: Second.
24 GOVERNOR
BUSH: Motion and a second. Without
25 objection,
the item is withdrawn.
43
1 MR. STRUHS: Item 5 is a consideration to
2 surplus
10 remaining lots in Miami-Dade County and
3 then
to accept an offer from General Real Estate
4 Corporation.
5 You
have heard items related to this in
6 the
past, but I would like to just give you a
7 quick
refresher course as to the history as to
8 why
we are here.
9 Back
in 1989 under a program under Save
10 Our
Coasts, the State of Florida bought 22 lots
11 in
North Miami Beach. 11 of those lots are
12 contiguous,
one to the other, and 11 were
13 noncontiguous.
14 These
lots average approximately 50-foot
15 frontage;
they are approximately about a
16 quarter
acre or less.
17 After
it became apparent that these
18 properties
were not providing any critical
19 conservation
needs for the state, the City of
20 North
Miami Beach requested a gift of the 11
21 contiguous
lots so that they might build a city
22 waterfront
park.
23 Our
response to the City of North Miami
24 Beach
was that prior to making a gift of the 11
25 contiguous
lots, we wanted to see if we could
44
1 first recover the full investment of the Board
2 of
Trustees and the State for the 22 lots that
3 were
purchased back in 1989.
4 The
purchasing price for the 22 lots in
5 1989
was $6.7 million. That meant that we were
6 going
to have to set a goal for ourselves of
7 raising
$6.7 million for the 11 noncontiguous
8 lots.
9 We
employed a very vigorous professional
10 level
international marketing scheme to get rid
11 of
the 11 noncontiguous lots. You may recall
12 several
weeks ago one of those lots was
13 successfully
sold to Mr. Quadros for
14 $1.2
million along with, I would hasten to add,
15 a
single-family home deed restriction as part
16 of
that transaction.
17 We
come before you today with good news
18 and
that is the 10 remaining noncontiguous lots
19 have
an offer with a binder. The offer comes
20 from
the General Real Estate Corporation and it
21 is
an offer for $7.55 million. And again, it
22 would
be attached or have attached to it the
23 single-family
home deed restriction.
24 This
represents an offer of $975,000 above
25 the
appraised value.
45
1 If you take the seven and a half million
2 of
this offer with the 1.2 million offered by
3 Mr.
Quadros, that is total proceeds of
4 $8.75
million. So clearly we have done even
5 better
than our very aggressive goal to begin
6 with.
7 This
would allow us to then to take the 10
8 contiguous
lots, actually make it a gift for a
9 city
park in North Miami Beach, and to keep the
10 state
whole and indeed to actually make a
11 little
profit besides.
12 I
do have to bring to your attention one
13 just
quick item and that is you should have in
14 your
materials a list of all the offers that
15 have
been made on these various properties. It
16 is
probably only fair to point out there is an
17 offer
by Mr. Eric Seger for lot number 5 for
18 $1,250,000.
19 The
recommended option that we are
20 bringing
to you today is to, in fact, sell off
21 10
of them as a block to the General Real
22 Estate
Corporation. We think that the
23 advantages
to the state for that strategy are
24 clear.
25 With
that, I would recommend approval.
46
1 TREASURER GALLAGHER: I don't have the plat I
2 had
at the last meeting, but if we got an offer
3 for
a-million-two on a lot that had not been sold;
4 we
got a-million-two on a lot that has been sold;
5 we
are selling 10 lots for 7 million, somehow or
6 another
I think we ought to be selling 10 lots for
7 10
million.
8 MR.
STRUHS: The reason we are offering to
9 bring
this to you as a recommendation is because
10 not
all these lots are waterfront. Some of these
11 lots
are on the other side of the road.
12 So
they aren't all of equal value and they
13 all
aren't of equal size. But taken as a
14 whole,
compared to the appraised value of the
15 properties
and the offer we have before you
16 today
and the convenience and efficiency of
17 moving
all 10 of them, we would recommend
18 approval.
19 GOVERNOR
BUSH: I asked the exact same
20 question
and got the same answer.
21 TREASURER
GALLAGHER: Motion on 5. Then it
22 must
be the right answer.
23 GOVERNOR
BUSH: Is there a second?
24 COMMISSIONER
CRIST: Second.
25 GOVERNOR
BUSH: Any discussion? Moved and
47
1 seconded. Without objection, the item passes.
2 David,
I would like to make sure that
3 while
this is not a Cabinet decision, the
4 legislature
has the authority, I guess, of
5 how
-- they have three options they can use to
6 expend
the surplus funds.
7 They
can pay down the debt, they can buy
8 additional
land or they can use it for whatever
9 they
please, which is what they tried to do on
10 a
broader basis with the budget this last year,
11 and
I had to exercise my veto powers to stop
12 that;
and I am glad I did.
13 I
think the Cabinet, I would hope the
14 Cabinet
would be supportive of making -- being
15 on
record in support of using these proceeds
16 for
purchases of additional land.
17 There
is a motion.
18 COMMISSIONER
CRIST: Second.
19 GOVERNOR
BUSH: Moved and seconded. Any
20 discussion?
21 MR.
STRUHS: I think I forgot one thing,
22 Governor,
and that was Art Draper might have
23 wanted
to speak to this item as well from the
24 Audubon
Society.
25 GOVERNOR
BUSH: We moved it. We have moved
48
1 and seconded it. Without objection, the item
2 passes.
3 Mr.
Draper, welcome.
4 MR.
DRAPER: Speaking after the fact, but I
5 just
want to acknowledge what you just said about
6 using
funds, the proceeds from the sale to
7 purchase
additional conservation lands. If that
8 did
happen, we would be in support of that.
9 We
had an issue I was going to raise if I
10 spoke
before you made your decision, was to
11 suggest
you move to a trade situation on this,
12 but
we are very, very pleased to see the money
13 rolled
into some other conservation purchase;
14 that
would be very good.
15 Thank
you very much.
16 GOVERNOR
BUSH: Thank you, sir.
17 Item
6.
18 MR.
STRUHS: Item 6, we are recommending
19 approval.
This is an option agreement to acquire
20 74.6
acres within the Estero Bay Florida Forever
21 Project.
22 It's
98 percent of the appraised value,
23 74.6
acres.
24 Heather
Stafford, who is the manager of
25 the
Estero Bay Aquatic Preserve, is available
49
1 here if you have any questions as to the
2 resource
values of this property. If not, we
3 recommend
approval.
4 TREASURER
GALLAGHER: Motion on 6.
5 GENERAL
BUTTERWORTH: Second.
6 GOVERNOR
BUSH: Moved and seconded. Without
7 objection,
the item passes.
8 MR.
STRUHS: Item number 7 is just a
9 remarkable
opportunity for the state.
10 Back
in 1999, Bald Point became one of our
11 newest
state parks. In fact, we are especially
12 proud
of the fact in the last four years, as a
13 state
we have actually established seven new
14 state
parks over the last four years, this
15 being
one of them, and in an area that is
16 especially
interesting to the north Florida
17 landscape.
18 The
opportunity here is for $10,302,000 to
19 purchase
these 2,851 acres. It is a remarkable
20 piece
of property. I have seen it myself. It
21 is
the home of three different bald eagle
22 nests,
beautiful waterfront as well as some
23 fresh
waterways on the interior.
24 I
believe we have a number of speakers on
25 this
item, Mr. Charles Patterson from 1,000
50
1 Friends of Florida, Paul Johnson of the
2 Apalachicola
Ecological Conservancy, as well as
3 George
Wilson, representing the seller, St. Joe
4 Timberland.
So if we invite each one of them
5 up
here for a minute at least, that would be
6 fine.
7 GOVERNOR
BUSH: Sure.
8 Good
morning.
9 MR.
WILSON: Good morning, I am George Wilson
10 with
St. Joe Company.
11 David
asked me to briefly describe the
12 tract
and the character of the natural area.
13 I
think the agenda item really does that
14 eloquently.
I won't try to compete with that.
15 All
I can say is that this site has long
16 been
the dream of our area conservationists,
17 local
government officials and conservationists
18 for
a long time.
19 The
preservation of this watershed on
20 Alligator
Harbor, Ochlocknee Bay, is a
21 remarkable
accomplishment for this state and
22 adds
to an existing 1500 acres that the state
23 now
owns, creates a great regional park, and we
24 at
the St. Joe Company are very proud to have
25 participated
in the preservation of this area
51
1 both by this sale and our stewardship for the
2 last
50 years of this asset.
3 It
is a remarkable natural area, an
4 archaeological
site, and out of more than a
5 hundred
miles of such similar frontage on
6 rivers
and bays in Florida. This is probably
7 one
of the nicest natural areas that St. Joe
8 had
in our portfolio of sites.
9 We
are very proud to turn this over to
10 America's
best park system and it will be a
11 great
asset for the future of Franklin County
12 and
this area. Thank you very much.
13 GOVERNOR
BUSH: Thank you. David, could you
14 with
this picture, can you describe what we
15 already
have, that we purchased?
16 MR.
STRUHS: This portion here, Governor, is
17 the
existing Bald Point State Park. The
18 acquisition
is this portion here within the yellow
19 perimeter,
including both sides of State Road 370.
20 It's
County Road 370.
21 GOVERNOR
BUSH: So we are basically tripling
22 the
size of the park?
23 MR.
STRUHS: Yes, sir. Yes, sir. As you
24 know,
this type of landscape is -- there is not
25 much
of it left in north Florida. So a piece this
52
1 size of conservation, it is truly remarkable.
2 This
area here, this creek area here is
3 going
to make just a superb destination for
4 those
who like to canoe and kayak. This is
5 Tucker
Lake here, a fairly large lake; it's
6 largely
freshwater; occasionally it does get
7 inundated
with saltwater.
8 We
also expect we are going to find
9 archaeological
resources here in this island,
10 Tucker
Lake as well. It's also the home to --
11 I
don't know if George mentioned this or not,
12 this
is one of the few places left in Florida
13 if
you go out on the beach in the morning, you
14 will
actually see bear prints in the sand.
15 It's
an interesting place from a biological
16 point
of view.
17 TREASURER
GALLAGHER: Which part are we
18 buying
here, the big part?
19 GOVERNOR
BUSH: The middle part.
20 TREASURER
GALLAGHER: The small part we
21 already
own?
22 MR.
STRUHS: We own this section here.
23 COMMISSIONER
GALLAGHER: We are buying the
24 two
in yellow?
25 MR.
STRUHS: The acquisition is in the yellow
53
1 perimeter, from this corner to this corner here to
2 here.
3 GOVERNOR
BUSH: All right.
4 MR.
STRUHS: Thank you very much for your
5 support
on this item.
6 TREASURER
GALLAGHER: Motion on item 7.
7 GENERAL
BUTTERWORTH: Second.
8 GOVERNOR
BUSH: Motion and a second. The
9 item
passes without objection.
10 MR.
STRUHS: Item number 8, there are a
11 number
of speakers who are going to want to
12 address
the board, so they would be prepared.
13 I
have on my list Sam Ard, representing
14 representing
David Chapman, Andrew Frish
15 representing
Leon and Carolyn Clark, and Eric
16 Draper
from the Audubon of Florida.
17 Let
me just give you a quick overview of
18 what
this item is.
19 There
are essentially two parts to this
20 agenda
item. The Board must determine and you
21 must
have five votes to determine that this
22 exchange,
this value-for-value, one-to-one
23 exchange
of property is in the public interest.
24 And
then if you determine it's in the public
25 interest,
if you approve the terms of this
54
1 specific exchange agreement.
2 The
reason we are recommending approval of
3 this
item is there are three basic arguments as
4 to
why this is, in fact, in the public
5 interest.
6 The
property that is being exchanged is,
7 in
fact, filled land, and it's unlikely it
8 would
ever be restored back to submerged land.
9 Secondly,
the parcel by itself is too
10 small
and in a location where it would really
11 not
ever be effectively managed by the state.
12 In
fact, it's not being managed today.
13 Thirdly,
the exchange of land that is
14 available
to you on this agenda item would
15 actually
provide you an opportunity to acquire
16 land
that is far more important and far better
17 to
the state's ecological interests and, in
18 fact,
is land is already contiguous to other
19 important
conservation lands in the
20 Wekiva-Ocala
Greenway Area.
21 So
with those arguments, before we would
22 recommend
approval of this item, the specifics
23 of
the exchange I think are in your materials.
24 If
you don't have any questions from me, I
25 would
invite Sam Ard to speak first, followed
55
1 by Andrew Frish and then Mr. Draper from
2 Audubon.
3 GOVERNOR
BUSH: Very good.
4 MR.
ARD: Thank you. Good morning Governor,
5 Members
of the Board, I am Sam Ard, I am
6 representing
Mr. David Chapman of Lake Worth,
7 Florida,
working with the Leasure Heidkamp law
8 firm
out of Fort Myers on this exchange.
9 We
do understand that this is the first
10 time
the one-for-one, new policy one-for-one
11 exchange
has come before this board, and we do
12 understand
that approval will require five
13 affirmative
votes.
14 As
you heard, Mr. Chapman has been working
15 with
the Division of State Lands for about a
16 year
now to acquire this parcel of formerly
17 submerged
sovereignty lands, used to be the
18 marsh
lands of Lake Okeechobee prior to the
19 building
of the Hoover Dike.
20 It's
now permanently upland. In fact,
21 there
are other properties adjacent to that
22 that
were formerly submerged lands that the
23 state
has sold in the past.
24 It
does contain three lots that were
25 originally
above the ordinary high watermark of
56
1 the lake. You will see those down here in this
2 corner.
Those three have two owners. Two are
3 owned
by Mr. Robert Bianco and other one by
4 Mr.
James Click.
5 It's
also boarded on the east side, which
6 will
be over here, by the family of Mr. and
7 Ms.
Leon Clark. All three of those property
8 owners
have expressed an interest in this
9 matter.
10 Mr.
Bianco was concerned that his parcel
11 is
landlocked, and there is an easement there,
12 but
it is not a permanent easement; this
13 easement
runs here on this picture, on the
14 aerial
photo.
15 We
have been able to reach an agreement
16 with
Mr. Bianco that if this board approves the
17 exchange,
then Mr. Chapman will go ahead and
18 grant
a permanent easement at no cost to him as
19 it
exists now.
20 We
also have talked to -- Mr. Bianco is
21 concerned
about a buffer area, and we have also
22 reached
agreement with his attorney that if
23 this
board approves this exchange, that he
24 would
have an option to purchase up to 25 feet
25 of
buffer at whatever the per acre basis is
57
1 that Mr. Chapman has in the exchange.
2 The
other one that was of concern,
3 Mr.
Andrew Frish is not here today. We have
4 worked
out an agreement to take care of their
5 problem.
They were concerned with -- maybe
6 it's
in your backup. They had made an offer
7 for
this parcel some months back and at that
8 point
the Water Management District had
9 determined
that: Well, we don't know; we may
10 need
this parcel in the future.
11 Mr.
Chapman came in at a later date and
12 said
I would like to exchange lands. You show
13 me
what you want me to buy, I will buy it, I
14 will
swap it out for this.
15 The
Clarks raised a legal point on the
16 procedures
that we're using. In the past three
17 or
four days, we have been working with his
18 attorney
and we have been able to reach
19 agreement
that the parcel that the Clarks would
20 really
like is this piece right here, this
21 L-shape
piece, and this is a paved road that
22 goes
from the county road to the canal. And
23 it's
roughly 7.3 acres, is what we been told,
24 and
that also would go to them in an option at
25 the
same per acre price that Mr. Chapman will
58
1 pay for.
2 GOVERNOR
BUSH: Where is Mr. Clark's property
3 right
now?
4 MR.
ARD: Right here. This land, he is the
5 east
border. His property from us is the east
6 border
of this property.
7 Just
a little bit about Mr. Chapman. I
8 toured
this site in August and met Mr. Chapman
9 and
looked at his business and what he does.
10 He
has an RV park, which is right here, this
11 parcel;
it has roughly 200 manufactured homes,
12 RVs
in it, in Lake Worth, Florida, which is
13 about
as rural are as you are ever going to get
14 in
Florida. The closest cities are Moore
15 Haven
to the south and Okeechobee to the north.
16 He
has about 400 residents there. They
17 are
seasonal residents, maybe 20 that live
18 there
year round, but the park has paved roads,
19 underground
utilities, landscape, fruit trees,
20 community
centers where they have weekly dances
21 and
cookouts for the residents.
22 And
he also has a package plant, a water
23 treatment
system that's located here that
24 handles
all of the treatment, water treatment
25 for
that community.
59
1 He also built another building where he
2 put
in a beauty shop, a library, a workout
3 facility;
it's really a neat place to see it
4 firsthand,
where retirees can come down and
5 have
fun and be able to enjoy being outside in
6 Florida
and fish and have access to the lake
7 and
that kind of thing.
8 Also,
it won't show it on this map, but
9 about
right here, which borders this piece, he
10 has
built a grocery store and a marina and an
11 RV
storage center for those people.
12 Like
I said, there are no grocery stories
13 around;
they call it the Lake Worth Publix and
14 it
has a deli in it and they don't have to
15 drive
30 or 45 minutes to go to a grocery store
16 and
come back; they can do it all right there.
17 The
other thing that I think is important
18 to
mention is Glades County. The taxes that
19 Mr.
Chapman pays on this development, just the
20 two
RV parks, none of that is homestead
21 exempted.
All of it is taxed at full value,
22 and
Glades County is at a 10-mill cap. They
23 are
on the list of the rural counties of
24 critical
economic concern.
25 Mr.
Chapman, just with his developments
60
1 between that and the marina, pays around
2 3
percent of the total ad valorem tax base of
3 Glades
County. So I say that to say any
4 impact,
any economic development, has a
5 tremendous
impact on that county.
6 GOVERNOR
BUSH: Mr. Ard, what would be the
7 intention
-- what would be the -- Mr. Chapman
8 wants
to develop this property?
9 MR.
ARD: Mr. Chapman envisions low-impact
10 development;
he would like to have a lodge that
11 would
attract people to come in, tourists to come
12 in
and maybe spend the night there at the lodge,
13 eat,
do whatever, and then a small golf course on
14 the
parcel.
15 And
the property is presently on the
16 future
land use map of Glades County as
17 agricultural/residential,
which allows for one
18 unit
per 5 acres. He does not envision having
19 anything
that high intensity.
20 In
closing, I would like to just say that
21 it
seems like a win/win for all Floridians
22 here.
You have a piece of property that has
23 already
been permanently impacted; it's not
24 going
to be a marsh land ever again.
25 The
Audubon Chapter is going to discuss
61
1 their concerns about water storage. And what I
2 will
tell you is it's only 103 acres, and you
3 can't
get the perspective by looking at a map
4 that's
this detailed. But when you back up and
5 take
a bird eye's view, there is plenty of land
6 just
west of here that you can use for water
7 storage.
8 If
they are looking at ASR wells, an ASR
9 well
doesn't take over two or three or four
10 acres
at most, and that can be done either on
11 the
site -- Mr. Chapman is willing to go along
12 with
them there -- but they have already
13 identified
another site of state-owned property
14 where
they say that will fit.
15 Surface
water storage absolutely cannot
16 work
here, because the site is so small, it's
17 already
got a canal there; and by the time you
18 diked
it and took away all the property down
19 here
that's privately owned, at the time you
20 put
the dirt in, you may have, what, a three or
21 four-story
swimming pool because there is just
22 not
enough area there to do that.
23 So
what I would like to urge this board to
24 do
-- and again, I know we need five votes out
25 of
it -- is to do something that's a win/win
62
1 for the entire state. You are going to get a
2 very
nice piece of property that you will
3 manage,
that is only a management plan and this
4 piece
of property has never had a management
5 plan,
except for Mr. Click, who I failed to
6 mention,
who had a sublease where he was
7 leasing
the land to someone else to raise
8 cattle.
9 Mr.
Chapman has since come in and found
10 the
rancher another place to graze cattle and
11 Mr.
Click hasn't been heard from since the
12 division
contacted him with that.
13 But
that's basically all the management
14 the
property has had. And I would just say in
15 your
earlier discussions when you were
16 discussing
management, this parcel is so small,
17 so
remote and unattached, it is not
18 economically
wise, in my opinion, for you to
19 try
to even attempt to manage that.
20 So
I will be glad to answer any questions.
21 I
appreciate your time.
22 GOVERNOR
BUSH: All right. Let's hear from
23 the
rest of the speakers.
24 Wasn't
there a --
25 MR.
STRUHS: Is Mr. Frish here?
63
1 MR. ARD: No, I mentioned he's not coming.
2 GOVERNOR
BUSH: Okay. Mr. Draper.
3 MR.
DRAPER: Eric Draper, Audubon of Florida,
4 objecting
to this proposal. And I appreciate
5 Mr.
Ard's introducing our concerns.
6 We
believe that this land exchange runs
7 counter
to the goals of the Comprehensive
8 Everglades
Restoration Plan.
9 Our
staff, our scientists and attorneys,
10 have
paid close attention to CERP
11 implementation,
and we question whether or not
12 this
parcel of land has been evaluated by the
13 South
Florida Water Management District, by
14 DEP's
Office of the Everglades policy, or by
15 the
Army Corps of Engineers for potential water
16 storage
needs in consistency with CERP.
17 We
know that at one time the South Florida
18 Water
Management District had identified this
19 land
as a potential storage site. But the
20 storage
plans were unlike Okeechobee which
21 require
300 ASR wells and a huge amount of
22 volume
of water had not been completed. In
23 fact,
the scientists working for Crochen
24 organization,
doing oversight and the water
25 Management
District and the Army Corps of
64
1 Engineers have given themselves as much as
2 seven
more years to complete their studies of
3 what
the overall storage needs for this area
4 are.
5 Lake
Okeechobee at this point is brimming
6 with
water. The Water Management District is
7 considering
an additional regulatory release
8 from
the Caloosahatchee River. If you have
9 read
the papers from that part of Florida, you
10 know
that residents down there are objecting to
11 the
continuing use of Lake Okeechobee as a
12 storage
site for water and these pulse releases
13 into
the estuary which has damages.
14 The
biggest challenge to the requested
15 restoration
is storage water, and we need as
16 much
area to store it as we possibly can, and
17 we
need to study the entire land area around
18 the
lake to make sure that we have identified
19 the
most appropriate sites.
20 And
as I said before, the Corps is not
21 even
close to finalizing the exact locations of
22 the
wells in question here. And even if we
23 don't
go with the ASR wells, if in the event we
24 don't
go with the ASR in that system and we
25 don't
need the site for ASR, we are going to be
65
1 scrambling to put together every piece of
2 storage
we can in that system because the state
3 really
doesn't own that much land near that
4 part
of the lake.
5 Now
I make the point the state has spent
6 millions
of dollars, hundreds of millions
7 dollars,
and the legislature has approved
8 almost
a billion dollars more to purchase land
9 and
to store water and to move water through
10 the
system.
11 And
we would be troubled in any situation
12 where
a decision was made by the Water
13 Management
District or by the state to take a
14 piece
of land that, even if it could not be
15 used
prospectively in Everglades restoration,
16 wouldn't
be traded for additional storage
17 capacity
right there within the area, where we
18 know
we are going to need a lot of storage
19 capacity.
20 I
want to point out that we are troubled
21 by
a series of agency decisions around CERP
22 projects
in which land is given up. We lost a
23 square
mile of land along the C-51 Canal just
24 last
year that became, because of a slow down,
25 too
expensive to buy.
66
1 We are working against a permit that the
2 Water
Management District has ordered in an
3 Everglades
project along Biscayne Bay right
4 now,
trying to get them to reverse that
5 decision
where we are giving up several hundred
6 acres
of land that we need for storage and
7 crawlways
always.
8 And
there is a problem with shrinking
9 projects
that has happened also, and this is
10 one
of our concerns, is that down in the
11 Hillsborough
Canal impoundment where we
12 actually
shrunk the thing because there is not
13 enough
land to store, so the tendency is to use
14 less
storage land and try to store the water
15 more
deeply.
16 We
have encouraged you before, and we'll
17 encourage
you again, to exercise strong
18 oversight
with the agencies that are managing
19 the
Everglades Restoration Project and the
20 agencies
and the local governments in making
21 land
use decisions down in south Florida. We
22 simply
can't afford to make mistakes on the use
23 of
land and then go back afterwards and try to
24 undo
those mistakes.
25 Any
time the state has let land go and
67
1 then gone back to try to purchase it again,
2 it's
turned out to be much more expensive.
3 And
I am suggesting this could be an
4 expensive
mistake. Maybe I am wrong. Maybe
5 this
land is not necessary for an ASR well,
6 maybe
it's not necessary for surface storage,
7 maybe
it can be used for some economic
8 development
projects sometime off in the
9 future.
But let's not make that decision until
10 the
Army Corps of Engineers, which has been
11 charged
with doing this project, South Florida
12 Water
Management District and others have fully
13 evaluated
the project.
14 I
want to conclude by saying -- before I
15 conclude,
I just want to point out that you got
16 a
letter from Henry Dean that says the district
17 doesn't
need the land. Henry Dean is the chair
18 of
-- director of the South Florida Water
19 Management
District.
20 I
just want to point out to you that the
21 last
line on your agenda 8 says the South
22 Florida
Water Management District reviewed the
23 parcel
information and concluded that their
24 CERP
plans were not complete, were not
25 complete,
and wished to have this parcel
68
1 reserved until the necessary planning is
2 finished.
3 Those
are the words of the South Florida
4 Water
Management District. They run a little
5 inconsistent
with the letter that Henry Dean
6 sent
on September 27.
7 I
want to point out to you that that is
8 the
real situation. We really are in the
9 planning
process here which will take several
10 years
until ASR wells are fully evaluated
11 before
we know whether or not we are going to
12 need
this land or not.
13 So
we support the purchase of the
14 Wekiva-Ocala
Greenway project, I think that is
15 very
important. There is plenty of money in
16 the
Florida Forever Fund available to buy that
17 land,
and I think their cash offer should be
18 made
to Mr. Chapman for that piece of property.
19 So
it will be imprudent to move forward with
20 this
trade right now and lose this potential
21 storage
capacity in the Everglades system.
22 Thank
you very much.
23 GOVERNOR
BUSH: Thank you.
24 MS.
ARMSTRONG: Eva Armstrong with the
25 Division
of State Lands. I am here to answer any
69
1 specific questions you might have.
2 GOVERNOR
BUSH: Can you explain the South
3 Florida
Water Management District's position?
4 MS.
ARMSTRONG: Yes, sir. In fact, I
5 conferred
again with Henry Dean this morning just
6 to
make sure.
7 When
this came up for us, we sent
8 overhead
-- I mean aerial photographs and a
9 description
of the site to the Water Management
10 District
and said: Is this one that you are
11 interested
in, because we count on them to tell
12 us
what lands they need. They are the lead
13 agency.
The Corps is not involved in
14 acquisitions
or retention of land on this size
15 of
property. It is solely in the realm of the
16 Water
Management District, according to Henry
17 Dean.
18 He
had his staff look at it. They
19 originally
thought that what they asked for
20 was
-- they said as long as you reserve -- you
21 obtain
for us an option, if we need it for two
22 or
three acres for ASR wells on this site, the
23 one
you are looking at today, we would be okay
24 with
you disposing of the property.
25 As
we started talking about that option
70
1 with Mr. Chapman, there is additional Board of
2 Trustees
owned-land which is to the west, over
3 here,
that the Trustees --
4 GOVERNOR
BUSH: Where are you pointing?
5 MS.
ARMSTRONG: It is to the west of this
6 map.
The map is here, it's out here. This is
7 west.
This is east.
8 GOVERNOR
BUSH: Show your finger on the map.
9 We
can't see.
10 MS.
ARMSTRONG: This is west.
11 GOVERNOR
BUSH: Thank you.
12 MS.
ARMSTRONG: Directionally impaired this
13 morning.
14 Anyway,
it's to the west and we sent an
15 overhead
down and said: If you want, you could
16 also
have this property. And Henry replied in
17 a
written response you have in the backup after
18 his
staff looked at it and said: If we can
19 have
that property, we won't need an interest
20 in
the one you are considering swapping with
21 Mr.
Chapman. That's what he confirmed again
22 this
morning.
23 TREASURER
GALLAGHER: I think the reason the
24 question
is being asked is when the Clarks
25 apparently
asked in July of 2002, one of the staff
71
1 from SWFMD said that it was not available because
2 of
potential need. And then now on September 23
3 the
executive director said it's not needed. So
4 we
are getting sort of two ends --
5 MS.
ARMSTRONG: Yes, sir. What happened --
6 this
is a rarity, but it does, in fact, sometimes
7 occur.
8 The
inquiry from Mr. Clark came in to one
9 land
acquisition agent. They did the normal
10 thing;
picked up the phone and called; they
11 were
told no, we think we need to maintain
12 this.
They got a letter confirming that and we
13 rejected
the Clarks' interest. At that point
14 it
wasn't an offer, it was just an interest.
15 Several
months later, Mr. Chapman sent a
16 letter
to the bureau chief, who referred it to
17 a
different agent, not knowing that the other
18 agent
had it, and they went further. They sent
19 the
maps down to the Water Management District
20 and
got an official response back, in that
21 manner;
so it was later.
22 TREASURER
GALLAGHER: Maybe --
23 MS.
ARMSTRONG: It was eight months later.
24 TREASURER
GALLAGHER: What's the difference?
25 You
got the Clarks and Chapman, both were
72
1 interested in the land?
2 MS.
ARMSTRONG: Yes.
3 TREASURER
GALLAGHER: So how come Chapman got
4 it
and not the Clarks?
5 MS.
ARMSTRONG: We sent the letter, the first
6 agent
sent the letter to Clarks saying we are not
7 interested,
the Water Management District wants to
8 keep
it.
9 Eight
months later a different purchaser
10 appears;
that agent follows through, and we
11 weren't
even aware of the Clarks' request until
12 about
eight weeks ago when we had a staff
13 change
and all of sudden, as we are shifting
14 work
around, it becomes apparent that the
15 Clarks
were interested in the same property.
16 TREASURER
GALLAGHER: Well, it seems to me we
17 ought
to have some kind of bid between the two or
18 something
instead of just: You talked to the
19 wrong
land agent. That's -- if I happen to call
20 up
and get the wrong person on the phone, I don't
21 get
a shot at the land and General Butterworth
22 calls
the right person and the guy runs it all
23 through
and he gets it. I have a hard time with
24 that.
25 MS.
ARMSTRONG: Well, the result you have in
73
1 front of you now is the Clarks are getting the
2 exact
land they wanted, which was this piece right
3 here.
They have negotiated that with Mr. Chapman.
4 TREASURER
GALLAGHER: And what is Mr. Chapman
5 getting?
6 MS.
ARMSTRONG: And he is retaining the rest,
7 which
is from this canal road over.
8 GOVERNOR
BUSH: Plus he provides an easement.
9 MS.
ARMSTRONG: Right, and he is providing
10 easements
for the other people. They own property
11 here,
and they wanted the easement down this area;
12 so
he provided the easements for the other
13 neighbors.
14 TREASURER
GALLAGHER: Who has got the
15 property
a little further west?
16 MS.
ARMSTRONG: Off this map?
17 TREASURER
GALLAGHER: Well, let's put the
18 easement
road.
19 MS.
ARMSTRONG: Chapman --
20 GOVERNOR
BUSH: You are off the map for me.
21 Chapman
goes to the easement road -- slide the map
22 over
and show me how far his goes.
23 MS.
ARMSTRONG: The map doesn't cover the
24 whole
property. It goes overhere further.
25 COMMISSIONER
GALLAGHER: That's what we are
74
1 giving Chapman?
2 MS.
ARMSTRONG: Correct, from that, all the
3 way
over to where Mr. Ard's hand is. We can't the
4 whole
map on here.
5 TREASURER
GALLAGHER: He owns across the
6 road?
7 GOVERNOR
BUSH: He owns west of the easement.
8 MR.
ARD: He owns west of this parcel.
9 TREASURER
GALLAGHER: Show me where he owns.
10 Put
your hand where he owns. Okay, he owns over
11 there.
And there is some kind of a line there.
12 MR.
ARD: The highway runs here. The canal
13 runs
here. He owns this corridor right here.
14 That's
where the marina road is going, marina,
15 grocery
store.
16 COMMISSIONER
GALLAGHER: Oh, okay, but we
17 can't
see that on this.
18 GENERAL
MILLIGAN: The state owns another
19 piece
beyond that.
20 MS.
ARMSTRONG: Correct.
21 MR.
ARD: It will be off this canal right
22 here.
23 GENERAL
MILLIGAN: Let me understand, the
24 state
has reached an agreement with the South
25 Water
Management District to use that land for
75
1 wells?
2 MS.
ARMSTRONG: If it's needed, yes. They
3 said
they could put the wells on that site. I've
4 got
another map. Let me -- this is the property
5 that
we are talking about swapping today, this
6 large
dark area.
7 This
is a piece that is privately owned
8 that
the Trustees deeded out a number of years
9 ago.
Parcel B is the parcel that the Water
10 Management
District said if we could give them
11 that
parcel to use for ASR wells if they need
12 them,
then they don't need an interest in
13 Parcel
A.
14 TREASURER
GALLAGHER: We own this land
15 because
it was submerged?
16 MS.
ARMSTRONG: Yes, sir, sovereignty
17 submerged
land that has since been filled.
18 TREASURER
GALLAGHER: Who filled it?
19 MS.
ARMSTRONG: When they created the dike.
20 GOVERNOR
BUSH: Army Corps of Engineers.
21 TREASURER
GALLAGHER: So what you have here
22 is
a canal for the Everglades?
23 MS.
ARMSTRONG: The canal that goes around
24 north
of the dike. The dike is here.
25 MR.
ARD: As an aside, Governor, Members of
76
1 the Board, this other 25-acre piece is also not
2 managed
by the state, but someone has planted it
3 for
Hank when I was down there.
4 TREASURER
GALLAGHER: Which piece, A or B?
5 MR.
ARD: B.
6 MS.
ARMSTRONG: That's the Perimeter Canal.
7 GOVERNOR
BUSH: We don't manage all our
8 properties
to the same intensity.
9 MS.
ARMSTRONG: No, we don't.
10 TREASURER
GALLAGHER: How did Mr. Chapman get
11 the
piece of property that he built the store on?
12 MR.
ARD: I want to say that the name of the
13 prior
owner was Basso Farms? That was land that
14 was
sold by the board; I don't know the year, I
15 want
to say it's pre1980. He came in and acquired
16 it
from there. And there was -- also the Clarks
17 had
acquired -- I do not have a chain of title in
18 front
of me, but that was also formerly submerged
19 lands
that was sold by the state that the Clarks
20 came
in and then bought.
21 TREASURER
GALLAGHER: Each time this happens,
22 somebody
in the state says: Well, you know, we
23 don't
need that; we just need this part here. Now
24 we
don't need that part here, we just need this
25 little
part over here. The next thing you know is
77
1 we are going to need this little tiny part over
2 here
and then we are going to have to buy it back
3 from
them so we can use it for what we have it for
4 now.
Is that how it usually works?
5 MS.
ARMSTRONG: That's not our intent here.
6 Let
me tell you that as we put this item together,
7 I
felt it was worth your review because the plus
8 side
of making this exchange is we are getting a
9 piece
of property we want in the Wekiva-Ocala
10 Greenway
that is adjacent to what we already own,
11 great
resource value, it's $360,000 that we don't
12 have
to write the check for out of Florida
13 Forever.
14 You
have a parcel here we are not actively
15 managing;
this is one that will never be
16 returned
to the submerge land state it was once
17 in.
So we felt it was worth the trip here for
18 you
to take a look at this and decide is this
19 what
you would like to have done with this
20 property
or do you want to keep it for
21 Everglades
if we need it?
22 TREASURER
GALLAGHER: I have another
23 question.
The little triangle down at the bottom,
24 how
did those people get that?
25 MS.
ARMSTRONG: Which triangle, are you
78
1 talking about Parcel B or something else?
2 TREASURER
GALLAGHER: Little triangle A down
3 by
the dike.
4 MS.
ARMSTRONG: It was deeded out some time
5 ago.
I don't know the specifics, but we can find
6 out.
7 MR.
ARD: It was preexisting in the lake
8 above
the ordinary high watermark. It was private
9 land.
10 GENERAL
MILLIGAN: It is a hill.
11 GOVERNOR
BUSH: So if we used this for
12 storage,
other than aquifer storage recovery, you
13 still
have these people, they would be surrounded
14 by
water?
15 MS.
ARMSTRONG: I am not an engineer. But in
16 my
estimate, this is not a great site for stacking
17 of
water. It would pose a challenge.
18 GOVERNOR
BUSH: They would have an island.
19 Then
we would buy it like we did the on in Lake --
20 TREASURER
GALLAGHER: Buy it back from them
21 because
we already gave it to them or sold it to
22 them
or something.
23 GOVERNOR
BUSH: Would Mr. Chapman agree to
24 have
some kind of -- go into an agreement where
25 they
would -- where he would agree to allow for an
79
1 ASR well if it was defined for 2 acres, or
2 whatever
the amount would be, so that we would not
3 encumber
any of the planning for the Army Corps?
4 MR.
ARD: In fact, I will submit to you that
5 an
ASR well is compatible with the type of
6 development
he has out there; because what he is
7 looking
at is low impact; there is plenty of
8 space,
plenty of room.
9 And
also, in fact, the packet of
10 information
that we gave to the Cabinet aides
11 before
the letter of the 27th came in included
12 a
contract that I had done for Mr. Chapman that
13 he
had signed that gives them an option. So
14 yes,
sir, easily.
15 GOVERNOR
BUSH: That would be access to an
16 ASR
well without a rental?
17 MR.
ARD: Yes, sir, I would say Mr. Chapman
18 has
given me permission to say if that's what is
19 necessary,
then that's not a problem, and we'll
20 put
it on the record here today to show his
21 intent.
22 TREASURER
GALLAGHER: I missed that.
23 GOVERNOR
BUSH: He would agree to commit to,
24 if
the Army Corps decided this property was
25 essential
for the CERP plan, to give the state --
80
1 the Army Corps, I don't know who would be the
2 owner
of it -- but the ASR well, the footprint,
3 which
would be a couple of acres.
4 TREASURER
GALLAGHER: You mean donate it
5 wherever
we wanted it? Whatever the Corps wanted,
6 or
how would we know where it would be?
7 GOVERNOR
BUSH: That's part of the challenge.
8 Now
we are going to wait six years to determine
9 where
-- because the Army Corps hasn't done the --
10 MR.
ARD: Mr. Chapman would have a very
11 strong
interest in having that found as fast as
12 possible.
So he would work with them. We are
13 here
to commit, yes, that's okay.
14 GOVERNOR
BUSH: Any other discussion? Is
15 there
a motion?
16 SECRETARY
SMITH: I would move we work with
17 the
Corps to provide an ASR site, if necessary.
18 GOVERNOR
BUSH: Is there a second?
19 GENERAL
MILLIGAN: Let me ask a question. A
20 single
ASR site, is that all that would be
21 required
or not?
22 GOVERNOR
BUSH: I don't know about the
23 engineering.
24 TREASURER
GALLAGHER: Absolutely. You got to
25 run
something to it to pump it in and out. It's a
81
1 lot more than just one -- a couple acres, I would
2 think.
3 GENERAL
MILLIGAN: What's the magnitude of
4 the
terrain that you need around it?
5 GOVERNOR
BUSH: They said two or three acres,
6 I
was taking them at their word.
7 MS.
ARMSTRONG: The surface area we were told
8 was
two or three acres.
9 SECRETARY
SMITH: My logic is this: First
10 they
made at least an initial determination they
11 weren't
going to need that. They are willing to
12 say
they changed their mind and they do need it,
13 they
would make that two or three acres available.
14 I
think some consideration is due the
15 economy
of the local government there. If this
16 is
going to add to the tax base, if there is an
17 investment
situation, I think that's some part
18 of
governmental responsibility.
19 I
don't think we're concerned about
20 (inaudible)
helping the landowner out and make
21 them
better. But if part of that accommodates
22 that
county and improve, I think that's a
23 consideration.
24 GOVERNOR
BUSH: There is a motion. Is there
25 a
second?
82
1 COMMISSIONER CRIST: Second.
2 GOVERNOR
BUSH: We need five votes though.
3 Any
other discussion? Mr. Draper, would you like
4 to
opine?
5 MR.
DRAPER: I just wanted to clarify
6 something,
that the statement was made that your
7 footprint
for an ASR well is only two or three
8 acres.
9 That's
correct for the physical
10 infrastructure
of the well perhaps, but many of
11 the
ASR wells are actually designed with
12 adjacent
surface storage capacity so that they
13 can
store some of the water that you are going
14 to
actually inject into the system, near the
15 facility
to inject. So many of these ASR wells
16 when
they are designed have adjacent surface
17 water
storage.
18 So
it's correct to say the footprint of
19 the
ASR well is only two to three acres
20 perhaps,
but oftentimes they are designed with
21 additional
on-site storage capacity.
22 TREASURER
GALLAGHER: Which would be like how
23 big?
24 MR.
DRAPER: I am not an engineer and I don't
25 know
this well, and I can just tell you that we
83
1 are struggling for Everglades restoration and we
2 are
trying to figure this stuff out right now.
3 There
is not enough land left in south Florida to
4 store
the water we need to make the Everglades
5 Restoration
Project work. That's why we are
6 literally
fighting for it acre by acre.
7 GOVERNOR
BUSH: That's also why we are
8 embracing
the ASR technology, because we don't
9 have
enough land mass to store the water in the
10 traditional
means.
11 MR.
DRAPER: Governor, I wouldn't want to
12 argue
that point with you, but there is a National
13 Academy
of Sciences review study going on right
14 now
about the ASR technology; and the jury is out
15 as
to whether or not that will ultimately be used.
16 The
state's commitment to it is fairly limited at
17 this
point. We just don't know what --
18 GOVERNOR
BUSH: Didn't that study just get
19 completed?
20 MR.
DRAPER: Well, they just had an initial
21 review
of the initial approach to the ASR study,
22 which
it said that the study is on the right
23 track,
but they did not complete the study yet.
24 GOVERNOR
BUSH: Good. Okay, there is a
25 motion
and a second. Any other discussion?
84
1 All in favor say aye.
2 GOVERNOR
BUSH: Aye.
3 SECRETARY
SMITH: Aye.
4 COMMISSIONER
CRIST: Aye.
5 GOVERNOR
BUSH: All opposed?
6 GENERAL
BUTTERWORTH: No.
7 TREASURER
GALLAGHER: No.
8 GENERAL
MILLIGAN: No.
9 GOVERNOR
BUSH: The motion does not pass.
10 MR.
STRUHS: That concludes the Board of
11 Trustees'
agenda. Thank you for your attention.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
85
1 GOVERNOR BUSH: State Board of
2 Administration.
3 TREASURER
GALLAGHER: Motion on the minutes.
4 GOVERNOR
BUSH: There is a motion on the
5 minutes.
A second?
6 SECRETARY
SMITH: I will second it.
7 GOVERNOR
BUSH: Moved and seconded. Without
8 objection,
the item passes.
9 TREASURER
GALLAGHER: Motion on the
10 September
24 minutes; that was 10 and 24th.
11 GOVERNOR
BUSH: Item 2, there is a motion and
12 a
second for approval of the minutes of
13 September
24, 2002.
14 Without
objection, the item passes.
15 Item
3.
16 MR.
STIPANOVICH: Item 3, Governor, is
17 approval
of fiscal sufficiency of an amount not
18 exceeding
80 million, State of Florida, Department
19 of
Management Services, Florida Facilities Pool
20 Revenue
Funding Bonds. It is recommended the
21 board
approve this item.
22 TREASURER
GALLAGHER: Move.
23 GENERAL
MILLIGAN: Seconded.
24 GOVERNOR
BUSH: Moved and seconded. Without
25 objection,
the item passes.
86
1 MR. STIPANOVICH: Item 4, approval of fiscal
2 sufficiency
of an amount not exceeding
3 125
million, State of Florida, Department of
4 Environment
Protection of Florida Forever Revenue
5 Refunding
Bonds. It is recommended the Board
6 approve
this item.
7 GENERAL
MILLIGAN: Move.
8 TREASURER
GALLAGHER: Second.
9 MR.
STIPANOVICH: Item 5, a resolution of the
10 State
Board of Administration approving the fiscal
11 sufficiency
of an amount not exceeding
12 300
million, State of Florida, State Board of
13 Education
Lottery Revenue Bonds. It is
14 recommended
the Board approve this item.
15 TREASURER
GALLAGHER: Motion on 5.
16 GENERAL
MILLIGAN: Second.
17 GOVERNOR
BUSH: Moved and seconded.
18 Did
I do item 4? Colleen was bugging me.
19 Item
4 was a motion and a second. Without
20 objection,
the item passes.
21 Item
5, there is a motion and a second.
22 The
item passes.
23 MR.
STIPANOVICH: Item 6, approval of fiscal
24 determination
of one or more series in an
25 aggravate
amount not exceeding 100 million,
87
1 Florida Housing Finance Corporation Homeowner
2 Mortgage
Revenue Bonds in an amount not exceeding
3 100
million Federal Home Loan Bank Line Of Credit.
4 Governor,
it is recommended the board approve this
5 item.
6 TREASURER
GALLAGHER: Motion on 7 (sic).
7 GENERAL
MILLIGAN: Second.
8 GOVERNOR
BUSH: There is motion and a second
9 on
Item 6. Without objection, the item passes.
10 MR.
STIPANOVICH: Item 7, the staff of the
11 Florida
State Board of Administration requests
12 that
the Trustees approve filing for adoption
13 three
sets of rules pertaining to the Defined
14 Contribution
Plan.
15 The
Trustees approved filling of notice
16 for
these three sets of rules under A, B and C
17 of
this item 7 on the agenda at the August 13,
18 2002
Cabinet meeting.
19 Today,
Governor, Members, we are simply
20 bringing
back the rules for adoption.
21 Under
A, the rules are 19-12.001 and
22 19-12.006
and 19-12.007.
23 These
rules implement requirements of the
24 Federal
Internal Revenue Service regarding
25 implementation
of the Defined Contribution
88
1 Program.
2 GENERAL
MILLIGAN: Move 7A.
3 COMMISSIONER
GALLAGHER: Second.
4 GOVERNOR
BUSH: There is a motion and a
5 second
on 7A. Without objection, the item passes.
6 MR.
STIPANOVICH: 7B, under this item, there
7 is
only one rule. This rule, 19-11.001,
8 implements
new section 121.78 of the Florida
9 Statutes
enacted during the 2002 legislative
10 session
regarding employer contributions.
11 TREASURER
GALLAGHER: Move item 7B.
12 GENERAL
MILLIGAN: Second.
13 GOVERNOR
BUSH: There is a motion and a
14 second
on item 7B. Without objection, the item
15 passes.
16 MR.
STIPANOVICH: Item C, under C the rules
17 are
19-10.002 and 19-10.003. These rules relate
18 to
asset transfer procedures.
19 GENERAL
MILLIGAN: Move Item 7C.
20 TREASURER
GALLAGHER: Second.
21 GOVERNOR
BUSH: There is a motion and a
22 second
on item 7C. Without objection, the item
23 passes.
24 MR.
STIPANOVICH: This completes number 7.
25 Item
8, the Florida Hurricane Catastrophe
89
1 Fund requests approval of two rules.
2 The
Trustees approved filing notice for
3 these
two rules at the August 13, 2002, Cabinet
4 meeting.
Today again we are simply bringing
5 the
rules back for adoption.
6 The
first rule is 19-8.010 relating to
7 reimbursement
contracts.
8 The
second rule is 19-8.029 relating to
9 insurer
reporting requirements.
10 TREASURER
GALLAGHER: Motion on 8.
11 GENERAL
MILLIGAN: Second.
12 GOVERNOR
BUSH: Moved and seconded. Without
13 objection,
the item passes.
14 MR.
STIPANOVICH: Chairman Members, the items
15 9
and 10 have to do with special corporations.
16 The
first item, number 9, has to do with
17 the
Florida Water Pollution Control Financing
18 Corporation.
The executive director serves as
19 the
chief executive officer of the Florida
20 Water
Pollution Control Financing Corporation.
21 At
this time I would like to recognize the
22 chairman
of the board and other members that
23 are
present here at the meeting.
24 The
board consists of Treasurer Gallagher,
25 General
Milligan, Secretary Struhs who is the
90
1 chair, and the Governor's budget director,
2 Donna
Arduin. Our CEO of the Water Pollution
3 Control
Financial Corporation asked that the
4 board
of directors of the corporation adopt a
5 resolution
appointing Barbara Jarriel in her
6 capacity
as chief investment officer of the
7 Florida
State Board of Administration,
8 treasurer
of the corporation and designating
9 the
position of chief investment officer of the
10 corporation
treasurer in the future.
11 COMMISSIONER
GALLAGHER: Move 9 and 10.
12 GENERAL
MILLIGAN: Moving 9 and 10?
13 COMMISSIONER
GALLAGHER: Yes.
14 GENERAL
MILLIGAN: Then I will second 9 and
15 10.
16 MR.
STIPANOVICH: Item 10 --
17 GOVERNOR
BUSH: I am not on this board.
18 MR.
STRUHS: No, you are not.
19 Can
we have a vote? All in favor of the
20 motion,
please raise your hand.
21 GENERAL
MILLIGAN: This is item 9 --
22 GOVERNOR
BUSH: State the vote so it can be
23 recorded.
24 MR.
STRUHS: The vote was unanimous in favor
25 of
the appointment.
91
1 GOVERNOR BUSH: Well done.
2 MR.
STIPANOVICH: Item 10, the Inland
3 Protection
Financing Corporation. It's my
4 recommendation
the Inland Protection Finance
5 Corporation
be approved.
6 TREASURER
GALLAGHER: I move 10.
7 GOVERNOR
BUSH: Is there a second?
8 GENERAL
MILLIGAN: Second.
9 GOVERNOR
BUSH: Moved and seconded. Without
10 objection,
the item passes.
11 Thank
you, Coleman.
12 (The
proceedings concluded at 11:30 a.m.)
13
14
15
16
17
18
19
20
21
22
23
24
25
92
1 CERTIFICATE OF REPORTER
2
3
4
5 STATE
OF FLORIDA )
6 COUNTY
OF LEON )
7
8 I,
SANDRA L. NARGIZ, RMR, CRR, certify that I
9 was
authorized to and did stenographically report the
10 proceedings
herein, and that the transcript is a true
11 and
complete record of my stenographic notes.
12 I
further certify that I am not a relative,
13 employee,
attorney or counsel of any of the parties,
14 nor
am I a relative or employee of any of the parties'
15 attorney
or counsel connected with the action, nor am I
16 financially
interested in the action.
17 WITNESS
my hand and official seal this 14th
18 day
of October, 2002.
19
20
21 ______________________________
22 SANDRA
L. NARGIZ, RMR, CRR
100 SALEM COURT
23 TALLAHASSEE, FL 32301
850-878-2221
Cabinet
Affairs
