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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:
DIVISION OF BOND FINANCE
HIGHWAY SAFETY AND MOTOR VEHICLES
DEPARTMENT OF REVENUE
FLORIDA LAND & WATER ADJUDICATORY COMMISSION
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
STATE BOARD OF ADMINISTRATION
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 Wednesday, May 28, 2003 commencing at
approximately 9:30 a.m.
Reported by:
KRISTEN L. BENTLEY
Court Reporter
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FL 32301 (850)878-2221
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APPEARANCES:
Representing the Florida Cabinet:
JEB BUSH
Governor
CHARLES H. BRONSON
Commissioner of Agriculture
CHARLIE CRIST
Attorney General
TOM GALLAGHER
Treasurer
* * *
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I N D E X
DIVISION OF BOND FINANCE
(Presented by Ben Watkins)
ITEM ACTION PAGE
1 approved 5
2 approved 5
3 approved 5
4 approved 6
HIGWAY SAFETY & MOTOR VEHICLES
(Presented by Fred Dickinson)
ITEM ACTION PAGE
1 approved 10
2 approved 10
3 approved 18
DEPARTMENT OF REVENUE
(Presented by Lisa Echeverri)
ITEM ACTION PAGE
1 approved 19
2 approved 20
FLORIDA LAND & WATER ADJUDICATORY COMMISSION
(Presented by Teresa Tinker)
ITEM ACTION PAGE
1 approved 21
2 approved 22
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BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
(Presented by Rob Lovern and David Struhs)
ITEM ACTION PAGE
1 approved 33
2 approved as amended 51
3 approved 54
4 approved 55
5 deferred 55
6 approved 55
7 approved 56
8 approved 67
9 defferred 67
STATE BOARD OF ADMINISTRATION
(Presented by Coleman Stipanovich)
ITEM ACTION PAGE
1 approved 69
2 approved 69
3 approved 69
4 approved 70
5 approved 70
6 approved 71
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DIVISION OF BOND FINANCE, May 28, 2003 5
1 P R O C E E D I N G S
2 (The agenda items commenced at 9:30 a.m.)
3 GOVERNOR BUSH: The next cabinet meeting will be
4 June 12th, 2003, a Thursday. Division of Bond Finance.
5 COMMISSIONER GALLAGHER: Motion on the minutes.
6 COMMISSIONER BRONSON: Second.
7 GOVERNOR BUSH: Moved and seconded. Without
8 objection, Item 1 passes.
9 MR. WATKINS: Item 2 is a resolution authorizing
10 the competitive sale of up to $44.6 million in capital
11 outlay bonds for school construction.
12 COMMISSIONER GALLAGHER: Motion on two.
13 COMMISSIONER BRONSON: Second.
14 GOVERNOR BUSH: Moved and seconded. Without
15 objection, the motion passes.
16 MR. WATKINS: Item No. 3, a resolution authorizing
17 the issuance and competitive sale of up to $240 million
18 in PECO refunding bonds.
19 COMMISSIONER BRONSON: Motion on 3.
20 COMMISSIONER GALLAGHER: Second.
21 GOVERNOR BUSH: Moved and seconded. Without
22 objection, the item passes.
23 MR. WATKINS: And Item No. 4 is a report of award
24 on the competitive sale of 138 and a half million
25 dollars of Florida Forever Revenue Bonds. The bonds
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DIVISION OF BOND FINANCE, May 28, 2003 6
1 were awarded to the low bidder at a true interest cost
2 of approximately 3.83 percent.
3 COMMISSIONER GALLAGHER: Motion on 4.
4 COMMISSIONER BRONSON: Seconded.
5 GOVERNOR BUSH: Moved and seconded. Without
6 objection, the item passes. Ben, any -- do you want to
7 give us a quick update on the budget. There was
8 actually some good news on -- not the whole budget,
9 just the --
10 (Laughter.)
11 MR. WATKINS: I was going to say, you must have
12 some time today, Governor.
13 GOVERNOR BUSH: Exactly. They don't need to
14 relive that. But the bonding elements, I thought,
15 turned out, given the tough year, normally -- other
16 states are actually using debt to pay for general
17 obligation day-to-day expenses. California has
18 proposed -- the California governor has proposed that
19 which is -- when you reach that point, you know it's
20 time to maybe move back to the private sector. But we
21 actually have had -- we had some good news on the
22 Everglades at least and maybe you could brief the
23 cabinet on that.
24 MR. WATKINS: Sure. I would be happy to,
25 Governor. First off, relative to your first point,
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DIVISION OF BOND FINANCE, May 28, 2003 7
1 you're absolutely right, in comparison to other states
2 and their financial position and how they are using
3 debt to provide one-shot revenues to balance the
4 budget, in effect, they're financing their deficit. We
5 are not even anywhere close to considering that. I
6 mean, we're dealing with plain vanilla, what we have
7 always borrowed for in the past which is long-term
8 fixed capital outlay projects.
9 Class size reduction, my understanding, there is
10 about 600 million in the budget for class size
11 reduction which is an expansion of the Lottery Revenue
12 Bond Program. So we used a successful model, expanded
13 it, provided additional funding for $600 million on
14 that initiative.
15 On the environmental bonding programs, we
16 successfully completed the substitution of the surety
17 bond for the cash reserve which freed up $300 million
18 and the question was how was the Legislature going to
19 use those monies. Last year they had used them for
20 purposes that were not consistent.
21 GOVERNOR BUSH: They tried to.
22 MR. WATKINS: They tried to. And thanks to your
23 sharp veto pen, that did not move forward. This year
24 they've seen the wisdom of your policy behind how to
25 use this money and are using $200 million of the cash
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DIVISION OF BOND FINANCE, May 28, 2003 8
1 from the reserve being transferred to the Everglades
2 Restoration Trust Fund and being used to pay for
3 Everglades restoration.
4 So we used monies in the reserve for the
5 environmental programs that were freed up by the surety
6 bond and moved those to the Everglades Trust Fund to
7 pay for those in lieu of a new borrowing program which
8 has been authorized but which will not be utilized
9 until these monies are exhausted.
10 GOVERNOR BUSH: But wasn't the 100 million that
11 remained transferred to Florida Forever and so we'll be
12 issuing $200 million of debt instead of $300 million?
13 MR. WATKINS: Governor, that was one of the
14 proposals, but I haven't had an opportunity to look at
15 the budget and verify that. But I believe that's
16 correct.
17 GOVERNOR BUSH: So for the first time, since I've
18 been around here at least, we're using cash instead of
19 debt for these important preservation projects. And
20 just to put that in perspective, during what -- I got a
21 chance to visit with my fellow governors quite a bit
22 because of our Medicaid reform efforts we're trying to
23 do, and that's just unprecedented. No one is going --
24 I mean everybody is going the other way.
25 So I really commend the Legislature for -- they
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DIVISION OF BOND FINANCE, May 28, 2003 9
1 were on a path to do the ugly thing and they reversed
2 themselves to do the right thing and taxpayers are
3 going to be better off because of it. You won't be
4 reading about it in the paper which is why I asked Ben
5 to give us a briefing. This is good news and
6 therefore, as I said, you won't read about it.
7 MR. WATKINS: It's good news, Governor, that's the
8 reason we don't read about it.
9 GOVERNOR BUSH: That's what I just said.
10 MR. WATKINS: Thank you very much.
11 GOVERNOR BUSH: Thank you.
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 10
1 GOVERNOR BUSH: Highway Safety and Motor Vehicle.
2 That was an editorial comment by the way.
3 COMMISSIONER GALLAGHER: Motion on the minutes.
4 COMMISSIONER BRONSON: Second.
5 GOVERNOR BUSH: There's a motion on the minutes
6 and a second. Without objection, the item passes.
7 MR. DICKINSON: Governor, our second item is to
8 request approval to contract for pre-employment
9 psychological screenings for our CSOs, community
10 service officers, and our troopers. This is a contract
11 we've had for 13 years for the group. Even though it's
12 exempted from some of the proceedings, we went ahead
13 and got some quotes and this is the low group -- the
14 low bid.
15 GOVERNOR BUSH: Is there a motion?
16 COMMISSIONER GALLAGHER: Motion.
17 COMMISSIONER BRONSON: Second.
18 GOVERNOR BUSH: A second. Any discussion? Moved
19 and seconded. Without objection, the item passes.
20 MR. DICKINSON: Governor, the next item in the
21 ongoing saga of our plates, we have 17 plates before
22 you. And we're going to do them in a group if that's
23 acceptable.
24 GOVERNOR BUSH: No, no, I think we should go
25 through each one individually.
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 11
1 (Laughter.)
2 COMMISSIONER GALLAGHER: And start with the very
3 first one, the orange blossom.
4 MR. DICKINSON: Actually, all these plates are
5 collegiate plates from the independent colleges and
6 universities except for the first one which is the PBA
7 plate. I see some PBA guys here on the front row that
8 have been very patient with us. We have worked for a
9 long time. There you go. (Laughter.) Instead of
10 sample, we went with -- go ahead, David.
11 (Displaying plate.)
12 MR. DICKINSON: The PBA plate was passed some time
13 ago and we've been working very diligently with them to
14 get the artwork right. It's a little more involved
15 plate than some of the others. All the rest -- and
16 this goes to their heart fund as I understand it. All
17 the other tags go to a scholarship fund or some
18 scholarship type endeavor.
19 COMMISSIONER GALLAGHER: Does everybody get "Bush"
20 on their license plate, or is that just special?
21 (Laughter.)
22 MR. DICKINSON: We're going to restrict that to
23 one car, Governor.
24 COMMISSIONER GALLAGHER: I thought maybe the
25 "Bush" part and they just change the number afterwards.
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 12
1 GOVERNOR BUSH: Exactly. It's going to be a
2 bestseller, no question.
3 MR. DICKINSON: We should have these plates out in
4 60 to 90 days.
5 GOVERNOR BUSH: Now we have -- there was one of
6 these -- I was a little embarrassed to tell you that I
7 didn't know the Florida Hospital College of Health
8 Sciences existed. What is it?
9 MR. DICKINSON: Orlando. That is a -- and I'm
10 sure the lieutenant governor would know more about it.
11 GOVERNOR BUSH: Technical school?
12 MR. DICKINSON: Yes, sir. Well, it's specifically
13 for hospital administration.
14 GOVERNOR BUSH: Does anybody know? Well, we got a
15 plate for it. God bless America.
16 (Laughter.)
17 COMMISSIONER GALLAGHER: If they don't sell 8,000
18 of them they'll be out of the plate business.
19 GOVERNOR BUSH: Fred, is that true now, that if
20 you don't reach a certain threshold, your plate dies a
21 graceful death?
22 MR. DICKINSON: Yes, sir, we have --
23 (Off-the-record discussion.)
24 MR. DICKINSON: 8,000 sales in five years.
25 GOVERNOR BUSH: Oh, in five years.
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 13
1 MR. DICKINSON: But these are exempted now. These
2 come under the college -- the collegiate exemption.
3 And that, quite frankly -- if I can give you a little
4 history here. This is the George Kirkpatrick --
5 affectionately known in our shop as the George
6 Kirkpatrick tag. George came to us about two weeks
7 before the expiration of an extension that was put in
8 the statute last session and he got 23 -- 23
9 independent colleges and universities slid under the --
10 it was actually, I think, put in for New College
11 originally for a former president, Senator John McKay.
12 Then they slid the rest of them in under this.
13 So they still -- you know, we're going to have the
14 tags out there, but we are mindful that there are very
15 few of these tags that will sell compared to the
16 mainstream. So we're printing fewer of them, trying to
17 save a little money.
18 GOVERNOR BUSH: Are we number one yet?
19 MR. DICKINSON: No, sir, we're still not number
20 one but we're in the top five. We're closing rapidly.
21 This will make us 71 plates. And you have before you a
22 couple -- I think eight passed this last session. And
23 it has been, that's a nice sharp veto pen you have.
24 But whatever we need to do, we will do. And then there
25 are an additional six, I think, in the pipeline to come
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 14
1 before you that you've already approved.
2 GOVERNOR BUSH: And that still doesn't put us
3 number one?
4 MR. DICKINSON: No, sir. And I'm going to get you
5 a ranking next time we come up here. But I think we're
6 fourth.
7 COMMISSIONER GALLAGHER: We're going to 77
8 specialty plates -- all plates goes to 100?
9 MR. DICKINSON: This will be 77? Seventy-one.
10 Seventy-one. We'll come forward with enough to boost
11 it to 88. But I think you're referring to some of the
12 nonspecialty plates that our tax collectors hold in
13 inventory such as the Purple Heart and some of those
14 types. And those do add up. There's another 23 of
15 those that the tax collectors hold in inventory. But
16 they are not -- they don't collect any money that goes
17 to a designated source.
18 COMMISSIONER GALLAGHER: But it's still a
19 different license plate that hangs on people's cars.
20 MR. DICKINSON: That's correct.
21 COMMISSIONER GALLAGHER: So we have, what I see
22 here, is that if you take the total number of all of
23 them, we're at 100. Counting anything somebody can
24 hang on their car legally. Got to be number one, Fred,
25 come on.
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HIGHWAY SAFETY & MOTOR VEHICLES, May 28, 2003 15
1 (Laughter.)
2 COMMISSIONER GALLAGHER: Somebody has got more
3 than 100 tags that hang on people's cars?
4 MR. DICKINSON: They do but I think the Governor
5 wants me to tell you that we're number one.
6 (Laughter.)
7 GOVERNOR BUSH: We're going to keep shopping until
8 we are number one. It's in your interest.
9 MR. DICKINSON: I don't think we have a problem
10 there.
11 COMMISSIONER GALLAGHER: You will be the governor
12 who moved us to number one in tags, no doubt about it.
13 COMMISSIONER BRONSON: Governor, also since we're
14 on the tag issue and since Commissioner Gallagher has
15 shown something that I asked some of our staff to work
16 on in marketing, we had a lot of calls after the last
17 meeting about the --
18 GOVERNOR BUSH: I heard. I got a few too.
19 COMMISSIONER BRONSON: About the tag. And I asked
20 him to come up with an orange that looks more like an
21 orange and we put the state flower on it.
22 COMMISSIONER GALLAGHER: And you won the contest,
23 I guess. The winner of the contest, Commissioner
24 Bronson.
25 COMMISSIONER BRONSON: This is the suggestion we
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1 have based on a lot of phone calls.
2 COMMISSIONER GALLAGHER: So any third grader that
3 designs it and it looks just like this will win the
4 contest. There won't be a fix or anything. They'll
5 all know what it's supposed to look like.
6 COMMISSIONER BRONSON: The only difference of what
7 this one, that we would suggest, would be that we might
8 actually have the "Florida" a little bit bigger but
9 keep the "myflorida.com" with "Florida" being a little
10 bit more prominent. And the commissioner asked me
11 about the blooms on the orange trees. Late oranges in
12 Florida, as most tourists over the decades, centuries
13 have known, have blooms still on the trees while the
14 oranges --
15 GOVERNOR BUSH: Of course they do.
16 COMMISSIONER GALLAGHER: So this is not a Valencia
17 orange? What kind of orange is this?
18 COMMISSIONER BRONSON: That would be more or less
19 a Valencia that is a late season Valencia. It has a
20 bloom on it.
21 GOVERNOR BUSH: I heard the treasurer added the
22 flowers, right?
23 COMMISSIONER BRONSON: That's a suggestion that we
24 have.
25 GOVERNOR BUSH: Wasn't that your suggestion, the
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1 flowers?
2 COMMISSIONER GALLAGHER: That's the orange
3 blossom, the state flower.
4 GOVERNOR BUSH: I like it.
5 COMMISSIONER GALLAGHER: And behind it is a
6 Valencia, right?
7 COMMISSIONER BRONSON: Anyway, the other
8 question would be to you, How many of the tags already
9 printed do we have and how long a period of time are we
10 talking before we see any new tag as far as the state
11 tag goes?
12 MR. DICKINSON: Commissioner, if we got to work
13 today, we're probably six to seven months out. We've
14 got that much inventory. And we need to work with the
15 vendor to come back to you with a prototype.
16 COMMISSIONER BRONSON: It's not a rush thing,
17 we've got plenty of tags for a few months?
18 MR. DICKINSON: Yes.
19 COMMISSIONER GALLAGHER: And so we're going to get
20 rid of the peach, I mean the orange that looks like a
21 peach?
22 GOVERNOR BUSH: He'll send his crack team back to
23 the drawing board to make sure it looks like an orange,
24 not a peach.
25 COMMISSIONER GALLAGHER: You know, we were just
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1 following your idea about having this contest.
2 MR. DICKINSON: Did you do the tags?
3 GOVERNOR BUSH: I don't think we did.
4 COMMISSIONER GALLAGHER: A motion on 2 (sic).
5 COMMISSIONER BRONSON: Second.
6 GOVERNOR BUSH: There's a motion and a second.
7 Without objection, the item passes.
8 MR. DICKINSON: Thank you, Governor and cabinet.
9 GOVERNOR BUSH: You want a picture?
10 MR. DICKINSON: While they are coming up,
11 incidentally we had 32 fatalities over the past weekend
12 which is up a little from last year.
13 GOVERNOR BUSH: How many last year?
14 COMMISSIONER GALLAGHER: Thirty-two.
15 GOVERNOR BUSH: How much up from last year?
16 MR. DICKINSON: Two.
17 COMMISSIONER GALLAGHER: By the way, that was a
18 motion on 3 for tags.
19 (Pause.)
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DEPARTMENT OF REVENUE, May 28, 2003 19
1 COMMISSIONER BRONSON: Motion on the minutes.
2 ATTORNEY GENERAL CRIST: Second.
3 GOVERNOR BUSH: There is a motion on the minutes
4 and a second. Without objection, the item passes.
5 MS. ECHEVERRI: Good morning. I'm Lisa Echeverri,
6 deputy director for the Department. Dr. Zengali wanted
7 me to apologize for not being here this morning. He's
8 giving a presentation at the Stirling conference in
9 Orlando. And then he's hoping to go down to West Palm
10 Beach to welcome the arrival of his first grandbaby.
11 GOVERNOR BUSH: All right.
12 MS. ECHEVERRI: So he's excited about that.
13 GOVERNOR BUSH: He should be.
14 MS. ECHEVERRI: Item 2, the Department is
15 requesting approval of Rule 12E-1.022 which is the
16 Overpayment Recovery Rule for child support
17 enforcement. This rule adopts federal provisions that
18 will allow the Department to send three notices to a
19 custodial parent that's received an overpayment and
20 work out a payment schedule with that parent. In the
21 absence of an agreement, it would allow the Department
22 to retain 25 percent of future distributions.
23 GOVERNOR BUSH: Is there a motion?
24 COMMISSIONER GALLAGHER: Motion on 2.
25 COMMISSIONER BRONSON: Second.
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DEPARTMENT OF REVENUE, May 28, 2003 20
1 GOVERNOR BUSH: Moved and seconded. Any
2 discussion? Without objection, the item passes. Thank
3 you, Lisa.
4 MS. ECHEVERRI: Thank you.
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FLORIDA LAND & WATER ADJUDICATORY COMM, May 28, 2003 21
1 GOVERNOR BUSH: The Florida Land and Water
2 Adjudicatory Commission.
3 COMMISSIONER GALLAGHER: Motion on the minutes.
4 COMMISSIONER BRONSON: Second.
5 GOVERNOR BUSH: Moved and seconded. Without
6 objection, the item passes. Item 2.
7 MS. TINKER: Item 2, recommend approval of the
8 proposed final rule establishing the Tuscany Community
9 Development District in Citrus County. Governor, we
10 have one speaker this morning, Bob Knight, representing
11 Citrus County.
12 MR. KNIGHT: Thank you, Governor, members of the
13 cabinet. I'm representing Citrus County. I would like
14 it on the record that Citrus County is in favor of this
15 development. They are a developer with more than 40
16 years' standing in Citrus County. We believe it would
17 be a positive addition to a development in the county.
18 We did have one issue. Would like to draw your
19 attention that we believe Judge Alexander who held the
20 public hearings on April 11th of last year resolved,
21 Item 41 of his findings of fact and law basically
22 state, The Commission is not the forum to consider or
23 modifying the existing service territory of Rolling
24 Oaks which is the utility that serves the rest of
25 Beverly Hills.
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FLORIDA LAND & WATER ADJUDICATORY COMM, May 28, 2003 22
1 It's not the forum to modify the existing service
2 territory, Rolling Oaks, therefore that issue is not
3 germane to this proceeding. Providing of this forum
4 does not portend to change service territory
5 boundaries. Citrus County is fully in favor of this
6 development as envisioned. Thank you.
7 GOVERNOR BUSH: Thank you. Who was the developer?
8 MR. KNIGHT: Beverly Hills Development
9 Corporation.
10 GOVERNOR BUSH: And they're based in Citrus
11 County?
12 MR. KNIGHT: Yes, they are. Members and officers
13 of that organization are active locally in various
14 civic organizations and are leaders in the county.
15 GOVERNOR BUSH: Okay. Any discussion?
16 COMMISSIONER GALLAGHER: Motion on 2.
17 COMMISSIONER BRONSON: Second.
18 GOVERNOR BUSH: No other speakers?
19 MS. TINKER: No, sir.
20 GOVERNOR BUSH: Okay. There's a motion and a
21 second on Item 2. Without objection, the item passes.
22 MS. TINKER: Thank you.
23 GOVERNOR BUSH: Thank you.
24 Board of Trustees. Bob, are you going to do it?
25 (Off-the-record discussion.)
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BOARD OF TRUSTEES, May 28, 2003 23
1 MR. LOVERN: Good morning. I'm Rob Lovern,
2 Assistant Director of State Lands. Item No. 1 this
3 morning is approval of amendments to Chapter 18-23,
4 Florida Administrative Code. They cover an update of
5 the description of buffer preserves, advise the public
6 on how to obtain information about boundaries, specify
7 the management goals of CAMA. Specify the operating
8 hours, deal with rules and regulations on it. And most
9 specifically, Item 6 is, Establish and specify fines
10 and violations pursuant to the legislative, the
11 recommended approval.
12 We have two speakers this morning and the first
13 speaker is Gerald Ward.
14 GOVERNOR BUSH: Good morning, sir.
15 MR. WARD: Good morning. I'm Gary Ward, Gerald M.
16 Ward. 31 West 20th Street, Riviera Beach. Member and
17 represent the legislative committee of the Marine
18 Industries Association of Treasure Coast headquartered
19 in Stuart and operating for Indian River, St. Lucie,
20 Okeechobee and Martin Counties. As an aside, but truly
21 on point, General Crist, welcome back from your CNN
22 Live appearance in Atlanta after 8:00 p.m. last night.
23 You were very effective in comments on the driver's
24 license photos. A very similar issue to this item,
25 legal, due process, and fairness. Even my very liberal
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BOARD OF TRUSTEES, May 28, 2003 24
1 wife back in Riviera Beach agrees and supports the
2 State's position on the driver's license photos.
3 This issue is another holiday rulemaking by the
4 Florida Department of Environmental Protection, Office
5 of Coastal and Aquatic Managed Areas. The Trustees'
6 tenant and lands manager for certain sanctuaries and
7 reserves in and adjacent sovereignly submerged lands
8 which by this rulemaking will now include hundreds of
9 islands, uplands, within the boundaries of the three to
10 four dozen aquatic preserves within the state.
11 The rulemaking sort of reminds me of a camel
12 construction which was authorized solely by a floor
13 amendment in the last three days of the 2001
14 Legislature attached to the Florida Forever Act, sort
15 of a train. Beginning with an attempt at rulemaking in
16 March and April of 2002, the first attempt was
17 withdrawn in late summer and we saw, again, that
18 Thanksgiving this rulemaking rule development start
19 with a proposed rule between Christmas and New Year's,
20 which you have before you today. We think it is
21 somewhat --
22 GOVERNOR BUSH: I'm sorry, you said the hearing
23 was between Christmas and New Year's?
24 MR. WARD: No, the proposed rule was published
25 between Christmas and New Year's, 27 December. That's
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BOARD OF TRUSTEES, May 28, 2003 25
1 what you have before you is the proposed rule.
2 And we did have one hearing. There was workshops
3 from the rule development but they happened to be the
4 same week that Roger Babb, the hearing officer for the
5 U.S. Fish and Wildlife Service, told me he had right at
6 3,000 people show up in Fort Myers on the manatee issue
7 but these hearings or workshops were held the first
8 week of December of 2002, Monday through Friday and the
9 cabinet, your aides, heard how attendance was very
10 poor.
11 Well, the voting community was out in force for
12 other issues which conflicted. I would tell you that
13 there was then a public hearing, the Marine Industries
14 Treasure Coast had submitted written comments for which
15 we have yet to have a response to either of our two
16 letters which does disturb us, but that doesn't
17 invalidate the process as your chief aide, Governor,
18 was talking about. The 120 process has probably been
19 followed to the technical provisions of Chapter 120.
20 We're concerned about whether the ultimate ticket fine
21 process is effective in enforcement or whether it
22 should be modified further.
23 And our ultimate close in a minute would be that
24 you probably ought to defer it and let your staffs,
25 particularly your lawyers, take a look at it. We have
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1 given you a two-page letter from the Marine Industries
2 dated the 23rd of May which summarizes the issues
3 location. They're deleting the definitions written of
4 notice of where preserves are going to be located.
5 That's in the current rule that's being modified.
6 We're concerned that there are no basic standards
7 for the gradation of fines from 50 to $500 as a ticket
8 fine. They can be cumulative. Your kid at 18 goes to
9 an island within an aquatic preserve, stays overnight,
10 that's camping, he gets cold, lights a fire, that's an
11 unpermitted fire. Like all kids, he may have a beer on
12 board the boat or something. They just add up and you
13 can get $1,000 worth of ticket fines real quick.
14 We call your attention to 327.73, Florida
15 Statutes, which is our basic boating ticket
16 enforcement, noncriminal violation. And that has been
17 fine-tuned for years. It's a $50 fine and it tends to
18 work. It produces effectiveness in that if somebody
19 violates, they do find out that there are laws of the
20 state of Florida and they have a process and procedure
21 if they wish to challenge it. This particular
22 rulemaking omits all of the safeguards and reduces
23 probably the effectiveness because it will probably
24 generate business for lawyers who find that the
25 violator has been ticketed for $1,000 worth of fines
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1 and we think that's probably not good overall law
2 enforcement in the state.
3 Our suggestion was to let your -- each of you have
4 on-staff lawyers. Let them take a much closer look at
5 it and defer for a cycle so that you can get a better
6 read on whether this is what you really want to do. If
7 you don't, I think it will be back to you with
8 legislative changes which is maybe another way to
9 handle the problem.
10 GOVERNOR BUSH: You know, the irony is since you
11 all worked so hard to get a bill passed that I may --
12 I'm not going to say if I'm going to sign it yet
13 because I haven't signed it. But there will be better
14 enforcement. Taking the marine fuel tax away from the
15 road budget to increase enforcement. Do you find any
16 irony there?
17 MR. WARD: No, sir, because --
18 GOVERNOR BUSH: I do. I find it ironic.
19 THE WITNESS: That particular marine fuel tax is
20 generated by the marinas. That doesn't even include
21 those in the gas stations --
22 GOVERNOR BUSH: But the money is going to increase
23 enforcement for violation of laws. And your principal
24 concern here is these possible fines are onerous, it
25 sounds like.
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1 MR. WARD: Well, these fines are not effective.
2 When you take a very heavy fine, it's not effective. A
3 small fine against folks makes them understand the
4 process, makes them say, I shouldn't do this again.
5 The big fine causes them to bring out the big guns, the
6 lawyers, to fight it, go to court, and that's not
7 effective for our judicial system.
8 GOVERNOR BUSH: But we're going to have a lot more
9 smaller fines because if I pass this bill -- I mean, I
10 think we need more law enforcement on the waters. It's
11 definitely an issue in our state.
12 MR. WARD: That's what 327.73 provides for.
13 That's the nonjudicial ticketing fine.
14 GOVERNOR BUSH: Thank you, sir. Any other
15 speakers?
16 MR. LOVERN: I'd like to introduce Danny Riley
17 with the Office of Coastal and Aquatic Managed Areas.
18 GOVERNOR BUSH: Good morning, sir.
19 MR. RILEY: Good morning. Thank you. I'm Danny
20 Riley, assistant director of the Office of Coastal and
21 Aquatic Managed Areas which is a relatively new
22 division of the Department of Environmental Protection.
23 As a result of the very aggressive land acquisition
24 programs of the state, we have rapidly become one of
25 the major land managers in the state and particularly
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1 coastal properties.
2 We're currently managing 160,000 acres of coastal
3 uplands. And we've had -- we experience all of the
4 difficulties for managing these properties including
5 enforcement issues. Because of that, we sought
6 specific legislative authority in Chapter 253.86 in the
7 2001 Legislature which gave the Office of Coastal and
8 Aquatic Managed Areas specific rulemaking authority and
9 it authorized the use of fines for violations on our
10 properties up to $500. As a result of that, we have
11 started the promulgation of these rules to manage these
12 properties.
13 We started off without a draft rule in late
14 summer. We scheduled five workshops to obtain public
15 input to see -- to inform the public of what our needs
16 were for managing the property and to get their input
17 so that we could objectively establish fair and
18 reasonable rules so that we could manage the property
19 in accordance with the way the trustees would like for
20 us to and also be sensitive to the public concerns
21 about public use.
22 I held those five workshops around the state. The
23 first one was in St. Petersburg in early December.
24 There were no attendees. The second one --
25 GOVERNOR BUSH: None? Zero?
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1 MR. RILEY: None. The second was in Fort Myers.
2 There were no attendees. The third one was in West
3 Palm Beach. There was one attendee, that was
4 Mr. Gerald Ward. The fourth one was in Melbourne.
5 There were 16 attendees at that meeting.
6 GOVERNOR BUSH: General?
7 ATTORNEY GENERAL CRIST: What time do you hold
8 these things?
9 MR. RILEY: They were held at --
10 ATTORNEY GENERAL CRIST: Meetings, forgive me.
11 MR. RILEY: 6:30 -- 6 or 7 p.m. I don't remember.
12 But they were after work hours. And they were
13 advertised as required by law in the Florida
14 Administrative Weekly. Plus they were advertised --
15 ATTORNEY GENERAL CRIST: Everybody reads that.
16 (Laughter.) I gest.
17 MR. RILEY: And they are advertised in the local
18 newspapers and there are listings of that in the backup
19 to this item as to where they were advertised and when.
20 So there was ample opportunity for the public to be
21 aware and attend these meetings.
22 The meeting and -- the workshop in Melbourne,
23 there were actually 16 people who attended, half of
24 whom said that they were there because they thought
25 this was the manatee issue and left when they found
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1 that it was not. And then the fifth workshop was in
2 Jacksonville and there was no one who attended there.
3 After those workshops, we developed the draft rules and
4 then had a public hearing again in Melbourne because
5 that's where -- that was the central location where
6 most of the interest had been expressed previously.
7 And we had a dozen or so people at that meeting. And
8 basically there's been agreement among all the parties
9 that we've involved other than Mr. Ward throughout this
10 process.
11 In fact, I have a letter here from Standing Watch
12 that I met with on several occasions, the same as I did
13 with Mr. Ward, that compliments us for involving them
14 appropriately and for the result that we came up with
15 in the rules.
16 GOVERNOR BUSH: But what about the question of an
17 open-ended pricing for the fines rather than some kind
18 of gradation that could be established?
19 MR. RILEY: Well, it simply is not true. What we
20 got in the legislative authority is fines up to $500.
21 What we have done in these rules is establish four
22 different categories which are different levels of
23 fines. The first one being a $50 fine for a
24 nondestructive violation that includes consumption of
25 alcoholic beverages or the solicitation or distribution
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1 of commercial materials in advertising.
2 The second category is a $100 fine and that's
3 major nondestructive violations and that is for the
4 proper disposal of wastewater and trash. The third
5 category is $250 fines for resource damage violations
6 including trapping and concealment devices being used
7 for trapping animals, hunting or harassing wildlife,
8 admission of unleashed domestic animals,
9 transplantation, removal of exotic plants and so forth.
10 And the fifth category is $500 fines for public
11 danger violations. There are only two of those. One
12 is for the use of firearms which might endanger the
13 public. And fires are limited to designated areas.
14 And that is a result of the need to control fires
15 because of obvious problems we've had on state lands
16 during the drought periods over the last few years. So
17 we do, in fact, have a gradation of the fines.
18 And following the public workshop in Melbourne and
19 private meeting with Mr. Ward, based on their
20 recommendations to reduce the amounts of fines, we did,
21 in fact, reduce the fines. We started off in the
22 original draft with fines of 100, 250, and 500. So we
23 did actually reduce the fines so that there are some
24 lower level fines now.
25 GOVERNOR BUSH: Any other questions? So the
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1 proposed rule -- when you say it's a proposed rule,
2 we're approving -- we're not approving the final rule
3 here, are we?
4 MR. RILEY: Yes, this is for rule adoption.
5 GOVERNOR BUSH: Any other discussion?
6 COMMISSIONER GALLAGHER: There's a motion.
7 GOVERNOR BUSH: Oh, there's a motion. I'm sorry.
8 COMMISSIONER GALLAGHER: I made a motion.
9 GOVERNOR BUSH: There is a motion. Is there a
10 second?
11 Yes, General.
12 ATTORNEY GENERAL CRIST: Thanks. Maybe I misheard
13 but I thought you recommended a deferral in your
14 opening comments. Not you.
15 MR. RILEY: Mr. Ward recommended deferral. We are
16 recommending approval.
17 ATTORNEY GENERAL CRIST: Indeed.
18 MR. RILEY: We, the Agency.
19 ATTORNEY GENERAL CRIST: Second.
20 GOVERNOR BUSH: There is a motion and a second.
21 Any other discussion? Without objection, the item
22 passes.
23 MR. LOVERN: Item No. 2 is consideration of a
24 request to enter into rulemaking to make amendments to
25 Chapter 18-21 regarding the forms of authorization
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1 required for the use of sovereignly submerged lands.
2 The intention in rulemaking is to get into some of the
3 definitions in the rule existing. Management
4 practices, standards, and criteria, forms of
5 authorization required for use of sovereignly submerged
6 lands and submerged lands. Applications for lease,
7 application for public and private easements, payments
8 and fees. And we have several speakers on this item
9 this morning, the first of which is Jeremy Kraft.
10 COMMISSIONER GALLAGHER: Right before he speaks.
11 MR. LOVERN: Yes, sir.
12 COMMISSIONER GALLAGHER: On this particular one,
13 at this point, although I want to hear the speakers,
14 I'm a little concerned about what happens to private
15 dock owners and what this rule appears, although I'm
16 sure some discussion can happen, appears to start
17 taking those people that have a little dock and put a
18 little pontoon boat or something, all of a sudden
19 having to lease the submerged land, all this other
20 stuff that hasn't been in the past, I want to make sure
21 it's clarified in here that we're not doing that before
22 we end up moving forward on this.
23 MR. LOVERN: Yes, sir, the -- I just want to --
24 it's my understanding that no private dock that exists
25 today that's not required to have a lease would be
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1 required to have a lease after rulemaking. But I'll
2 let Jim Stoutamire with the Bureau of Submerged Lands
3 explain in more detail to make sure we have that
4 covered.
5 GOVERNOR BUSH: Good morning, sir.
6 MR. STOUTAMIRE: Good morning. Jim Stoutamire.
7 Submerged Lands and Environmental Resources. Just to
8 briefly respond to your concern, this rule will not
9 elevate the form of authorization required for any
10 single-family dock. A dock that was large enough to
11 require a lease today would require a lease tomorrow.
12 A dock that did not require a lease today would not
13 require a lease tomorrow. We have merely tightened up
14 and made the definition clear so that single-family
15 homeowners, dock contractors and staff can clearly
16 understand the distinction between the minimum size
17 dock or the ten to one dock, the single-family
18 homeowner qualifies for under their riparian rights and
19 the larger docks.
20 GOVERNOR BUSH: Why are we doing this?
21 MR. STOUTAMIRE: Sir?
22 GOVERNOR BUSH: Is this based on a law that
23 passed?
24 MR. STOUTAMIRE: The forms of authorization
25 portion of the sovereign lands rules have not been
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1 amended, it's my understanding and substantively in
2 about 20 years. The intent of this rulemaking is
3 primarily to make the rule consistent with past board
4 actions dating as far back as 1972. Clarify the form
5 of authorization for the public, clarify the form of
6 authorization for staff.
7 It does not elevate the form of authorization for
8 any structures, public or private. And, in fact,
9 certain cases, for example, public channels, private
10 sea walls, it lowers the required form of
11 authorization. For example, public channels will no
12 longer require an easement. They may be authorized
13 under a letter of consent.
14 COMMISSIONER BRONSON: Governor?
15 GOVERNOR BUSH: Yes, Commissioner.
16 COMMISSIONER BRONSON: Thank you. I have had a
17 few concerns about Item 2. One of the concerns about
18 the proposed rule amendments, specifically I'm
19 concerned about the serious -- potential serious
20 financial implications this amended rule as currently
21 proposed might have on the aquaculture industry. And
22 although I won't hold up the rulemaking going forward,
23 I would request that DEP staff work with my aquaculture
24 staff and the Department on language in this rule which
25 will ensure that the aquaculture industry is not
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1 negatively impacted. And also based on the concerns
2 that I think we're going to hear today that one hearing
3 is not necessarily adequate in this issue.
4 I'm not sure all of those that may be affected
5 understand the potential of this rulemaking. And I
6 would actually ask that DEP, as a condition of the rule
7 going forward for my vote, that I would ask the cabinet
8 to consider DEP to hold two additional workshops and
9 one public hearing and for the DEP staff to work with
10 our aquaculture staff. And the reason why, Governor,
11 that I'm concerned, there are some, and I would assume
12 that this is going to be a consideration under this
13 rule, there are some of our clam operators who actually
14 are leasing State submerged lands on clams that will
15 leave their dock at their house to go out and work
16 their clam leases and they may bring some clams back
17 that they take to a processing plant to their dock
18 which could leave them as considered to be a commercial
19 operation rather than they're docked at their home that
20 could set up some potential problems for those
21 individual clam leases. And some of these are only
22 like an acre to three-acre leases. They're very small
23 leases. And I don't want to negatively impact them
24 with the potential of having to pay a high lease on a
25 dock that they've had for years. And now that they
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1 have one little acre of submerged land, now they are
2 going to get hit with a high fee. So I would at least
3 like to have two more additional workshops so that
4 those people would understand that and at one more
5 public hearing so that if they do have a concern on
6 this, they will show up and work those issues out.
7 GOVERNOR BUSH: Are there any speakers?
8 MR. STOUTAMIRE: I believe there are. And if I
9 may respond briefly, we'll certainly welcome your
10 direction on this issue. I will note that this rule
11 has already had four publicly noticed technical
12 advisory committee meetings and four public workshops.
13 With respect to the aquaculture issue, we'll be more
14 than happy to work with your staff.
15 I will call your attention to some language we
16 have added to the definition of revenue-generating
17 activities which clarifies that the act of mooring a
18 commercial vessel, for example, a vessel serving an
19 agriculture lease or any other commercial activity at
20 one's residential dock, does not make that dock
21 revenue-generating and hence it would not require a
22 lease based on the revenue-generating lease
23 requirement. But we will be happy to work with
24 aquaculture staff and tighten that language up. I
25 appreciate the suggestion.
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1 COMMISSIONER BRONSON: I wanted to make sure.
2 Because I was under the understanding that if they go
3 out in their boat, and many times it's their own
4 fishing boat that they're going out in, and they bring
5 clams in a bag back to the dock and just lay it up on
6 the dock to carry it to a processing facility, that
7 could be construed as an industrial or a business use
8 of that, quote, private dock and that's what has me
9 concerned.
10 MR. STOUTAMIRE: I understand. And like I said,
11 we'll be happy to work with your staff on that issue.
12 GOVERNOR BUSH: Speakers.
13 MR. LOVERN: Next speaker is Jeremy Kraft.
14 GOVERNOR BUSH: Welcome, sir.
15 MR. KRAFT: Good morning, Governor and members.
16 I'm Jeremy Kraft with Advanced Environmental
17 Technologies. I'm here today representing Bob and Judy
18 Langford who have been required to get a lease for a
19 private dock. It's 245 feet long. They had to make it
20 that long to get to three and a half feet of water.
21 They've got two boat slips. They are small slips,
22 10 feet wide and 12 feet wide.
23 They were required to get a lease because they
24 wanted to put a cover over their boats to protect their
25 investments. That's the kind of activity that's going
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1 on today. Jim is correct. This rule would just codify
2 the actions of the Department as they exist today. But
3 the Department has changed its philosophy with respect
4 to private docks. We've gone back -- and I've
5 circulated a report to each of your offices. We've
6 gone back and looked at 30 years worth of board action.
7 We could not find an instance where the board directed
8 the staff to require leases for private single-family
9 docks.
10 You also have a conceptual state land management
11 plan that is in effect that does not include private
12 docks under the leasing category. This rule is not
13 changing that conceptual land management plan and it
14 should be, if we're going to make this change and start
15 requiring leases on private docks. This rule for the
16 first time would include the words "private dock" and
17 "lease" in the same sentence. It has not existed
18 before. We also pulled a list of docks that may be
19 private single-family docks from DEP last Wednesday.
20 They do not have a separate computer category to
21 separate out private single-family docks.
22 We found a maximum of 114 of those that could be
23 private docks. They range in size from as small as
24 836 square feet. That's a tiny dock. You also have to
25 think that these rules were adopted in the 1980s; Jim
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1 is correct there. They need revision. They need to
2 incorporate today's culture, today's economy. In the
3 1980s few people needed more than two slips. With the
4 advent of jet skis, it's not uncommon to find a family
5 that has a flats fishing boat and a couple of jet skis.
6 Under that scenario, you'd have to obtain a lease
7 because DEP would consider it three slips.
8 We think it's inappropriate to move forward with a
9 rule that requires leases on private docks in that
10 instance. There are other areas of the rule that cause
11 concern. We've also got clients who will be forced to
12 come under lease because of changes in the definition
13 of preempted area.
14 GOVERNOR BUSH: Preempt? I'm sorry?
15 MR. KRAFT: Preempted area. Right now the area
16 you have to lease is what's considered preempted and
17 it's a dock that goes out to mooring pilings. I think
18 the wording in this rule greatly strengthens the
19 Department's arguments that a lot of areas would have
20 to come under lease that presently do not have leases
21 and which have had letters from the Department in the
22 past saying they do not need leases.
23 But we're fighting one of these battles right now
24 in Pensacola where a facility that was built in 1917
25 has a letter saying it didn't need grandfathering,
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1 didn't need to come under lease, is now being required
2 to come under lease. This rule would make it clear
3 that that facility would have to have a lease. Those
4 kind of public policy issues should be addressed a good
5 deal further.
6 Another area of concern is with the unit-to-slip
7 ratio with condominiums. In the 1980s when this rule
8 was adopted, there was a good study done, directed by
9 the Board of Trustees then to determine how many
10 condominium owners of waterfront property actually had
11 boats. The concern was people were leasing these dock
12 spaces to people and making money on them.
13 The unit-to-slip ratio was put into place then in
14 order to minimize the number of rental slips that might
15 be behind condominiums. Luckily our economy has grown
16 greatly since the '80s. People can afford boats. And
17 now I think if you go back and do that same study,
18 you'll find most waterfront condominium owners want
19 boats behind their condominium. The unit-to-slip ratio
20 no longer applies.
21 Also, it was invented at the time when most boats
22 were only about 24 feet long. Now we're seeing boats
23 in the 45-foot trawler range. And the area limitations
24 allowed for condominium docks no longer are effective,
25 no longer allow one to even meet the unit-to-slip
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1 ratio.
2 So we would urge you to direct staff, if you want
3 to move -- continue with the rulemaking, urge them to
4 open the discussions fully on these issues and to bring
5 them back to you after a full public discussion of
6 these. Thank you.
7 GOVERNOR BUSH: I appreciate your comments. I
8 still -- if the Department could answer the question
9 why we're doing this and whether or not this -- there
10 wasn't, unlike the previous discussion where there was
11 a law that rules needed to be created to deal with the
12 new statute, there is no statute that is driving this.
13 That was your answer, right?
14 MR. STOUTAMIRE: That is correct.
15 GOVERNOR BUSH: Do you have the delegated
16 authority to do these rules based on the new APA
17 interpretations?
18 MR. STOUTAMIRE: This rulemaking is totally
19 consistent with Chapter 120 and it's a direct outgrowth
20 from direction from the Board of Trustees on a variety
21 of occasions to clarify the forms of authorization.
22 And, in fact, this rule has been before you before
23 back, I believe, in 1999 to actually start the
24 rulemaking. What we are bringing here to you now is
25 request for approval to publish the proposed rule to
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1 begin the formal adoption process and get additional
2 public comment.
3 With respect to the structures that were
4 mentioned, the private residential single-family dock,
5 yes, there are two slips. Yes, one of them is 10 feet
6 wide. Yes, the other is 12 feet wide. They are
7 27 feet long for a 21-foot flats boat and a 17-foot
8 Boston Whaler. The addition of a cover did not trigger
9 the need for a lease. The fact that this dock is
10 wider, longer, has two additional platforms in addition
11 to the slip and exceeds the size of those in the
12 immediate vicinity triggered the need for a lease.
13 With respect to the preempted area, as I mentioned
14 earlier, this codifies board policy going back to items
15 as far back as 1972, that commercial off-loading
16 facilities adjacent to bulkheads to commercial uplands
17 do, in fact, require a lease whether or not mooring
18 pilings exist. The board has voted on this, to my
19 personal knowledge, on three separate occasions.
20 GOVERNOR BUSH: All right. Any other speakers?
21 MR. LOVERN: Second speaker I have listed is Nancy
22 Brown. I'm not sure if she's here this morning. I
23 haven't seen her. We can go ahead and go to the next
24 one. Third speaker -- I'm sorry.
25 MR. STOUTAMIRE: Ms. Brown had several concerns
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1 about the rule but she was satisfied. One of them was
2 striking a statutory reference, her concern that
3 somehow that was going to eliminate the statute. And
4 the other was some concern over unit-to-slip ratio.
5 MR. LOVERN: Third speaker is Gerald Ward.
6 GOVERNOR BUSH: Good morning, again.
7 MR. WARD: Good morning, again, yes, sir. You get
8 a double dip today fortunately. Gerald Ward, 31 West
9 20th Street, Riviera Beach. I'm here as a consulting
10 engineer, coastal and environmental, over 30 years of
11 practice and a very long-term member of the Florida
12 Engineering Society, Conservation on Environmental
13 Quality Committee. We support going ahead now. With
14 that statement, we would like to sort of elaborate for
15 a short time. The basic rule, 18-21, was developed in
16 1982 to 1984. I go back prior to Jim Stoutamire in
17 processing things directly with the trustees which went
18 out of office existence in 1975.
19 We -- this is really an issue of definition of how
20 to and to some degree money. The single-family dock
21 issue needs you-all's specific input and direction.
22 Jim is correct that lots of things could require, for
23 over 1,000 foot, a single-family homeowner to get a
24 lease. And it's been bad for the public to be beat
25 about by a processor in Pensacola or West Palm Beach
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1 over the last two decades that did apply or didn't
2 apply the rule.
3 The rule is convoluted in some cases and it needs
4 clarification just like Commissioner Bronson's
5 aquaculture issue. You don't need the guy that goes
6 out of his house and has a commercial fishing license
7 to always have to have a lease or provide for some
8 compensation to the trustees. I would like you to
9 consider Jeremy's comments about additional hearings,
10 Commissioner Bronson's. We really need hearings
11 sometimes, not workshops, because you get better
12 recording. That's one of the problems we had with the
13 previous item.
14 If you don't have a full record of what happened,
15 you don't know what happened. And let's go to the next
16 step. Telecommunications. There's nothing wrong with
17 each of these being noticed as a telecommunications
18 hearing. Establish a meet-me number which doesn't cost
19 the Department a whole lot of money but people sit in
20 their office, they've got all their resources with them
21 and they bring lots of good ideas, they don't have to
22 travel. Just do something new to get this to resolve
23 because we do need the definition and you need to get
24 more involved your own selves. There are things that
25 sometimes we sit out in the audience and look at and
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1 say, Maybe we should have done more in education of the
2 Board. So let's go forward today. Thank you.
3 GOVERNOR BUSH: Thank you, sir.
4 MR. LOVERN: Fourth speaker this morning is
5 Mr. Richard Brightman.
6 MR. BRIGHTMAN: Good morning, Governor, members of
7 the board. I'm Richard Brightman from Hopping, Green
8 and Sams here today on behalf of the Florida Electric
9 Power Utility Incorporated coordinating group. The FCG
10 is a trade association of some 39 or more public
11 utilities, investor-owned, municipal, and cooperative
12 electric utilities. We've been participating with the
13 staff on this rule development from the inception,
14 maybe even before the inception, and would echo some of
15 the remarks earlier that this rule does need to be
16 clarified. It is confusing to the general public and
17 to the practitioner and I think also to staff and
18 does -- would warrant some clarification. We're
19 generally in support of the nondocking issues -- I'm
20 not here to talk about docking issues -- that the staff
21 has put into this rule.
22 I would like to commend for your consideration a
23 couple of additional changes that the electric utility
24 industry would like to see put into this rule. The
25 first is to provide for some temporary consent for the
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1 construction of already-approved electric transmission
2 cables. Currently, the process is when an electric
3 transmission cable has to cross sovereign lands they go
4 through the full-blown easement process and that can
5 take several months to get approved, sometimes even
6 coming before this Board depending on the delegations
7 of authority.
8 But the current process has, after it is
9 ultimately approved, the cable cannot be constructed
10 until the easement document itself is drafted, signed,
11 and recorded. Now that may sound like a simple process
12 but it can take at least six to eight weeks. And in my
13 experience, I've had one that took over a year after
14 the easement was approved before the easement document
15 was signed -- drafted, signed, and recorded. And that
16 prevented the electric utility from fulfilling its
17 statutory obligation to provide service with that cable
18 during that period of time after the easement had been
19 approved.
20 GOVERNOR BUSH: It takes six to eight weeks to --
21 after approval to record --
22 MR. BRIGHTMAN: To draft, get signatures, and
23 record. That's on a good day, Governor.
24 GOVERNOR BUSH: That's ridiculous.
25 MR. BRIGHTMAN: As I said --
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1 GOVERNOR BUSH: Be prepared, Department, to
2 answer the question why it takes so long. But go
3 ahead.
4 MR. BRIGHTMAN: What I'm suggesting solution as a
5 solution for that is that there be a letter of consent
6 authorized to allow the utility to go forward during
7 that process. We're happy to go through that process
8 and get it drafted, signed, and get it recorded and so
9 forth, but we ought not to be held up from constructing
10 during that hiatus.
11 The second issue I'd like to raise with you is the
12 form of authorization required for the use of
13 horizontal directional drill technology where they bore
14 underwater bodies instead of putting a cable over an
15 overhead crossing. Currently, the rule provides either
16 an exemption or the less formal approval, a letter of
17 consent for overhead crossings if there are no
18 structures on sovereign lands.
19 However, horizontal directional drill activities,
20 which I think most people agree are less impactive,
21 still require the full-blown easement. My clients
22 would like to suggest that creates a disincentive for
23 the industry to use the less impactive technology
24 because they have to go through a more formal
25 time-consuming process to get the approval.
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1 So I'm here to generally support what's been done
2 but to urge you to maybe gently nudge the staff to go a
3 little further on those two issues I'd raised. That's
4 all I have. I'd be happy to answer questions.
5 GOVERNOR BUSH: Thank you very much.
6 COMMISSIONER GALLAGHER: I move to continue ahead
7 with this rule and bring it back after they've had a
8 little more work on it to clarify the private dockage
9 and to clarify some of the aquaculture problems that
10 Commissioner Bronson has and hopefully clarify some of
11 the leases that are done for the utility industry. I
12 think these things all need a little clarification. I
13 think if you-all spend some time on that you'll be able
14 to do it. And I'd personally like to see it again.
15 GOVERNOR BUSH: Oh, you will soon.
16 COMMISSIONER GALLAGHER: Well, we wouldn't if
17 we --
18 GOVERNOR BUSH: Wouldn't we? I mean, it would
19 come -- it's a proposed rule so it would come back to
20 us for approval --
21 COMMISSIONER GALLAGHER: No, we're approving it
22 here.
23 MR. STOUTAMIRE: This is step one. We will be
24 holding, pending your direction, a minimum of one
25 public hearing at which the public will be free to
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1 comment and suggest amendments.
2 GOVERNOR BUSH: What do you think about that
3 telecommunications idea? It's a big state.
4 MR. STOUTAMIRE: That's something we routinely do.
5 We did it as recently as a fiber optic hearing down in
6 West Palm Beach where we had call-in lines for some
7 folks from California.
8 GOVERNOR BUSH: So you're going to do it?
9 MR. STOUTAMIRE: Oh, yeah.
10 COMMISSIONER BRONSON: On my motion, are we going
11 to add my motion to which says -- which calls for two
12 additional workshops and one public hearing?
13 COMMISSIONER GALLAGHER: It's fine with me.
14 COMMISSIONER BRONSON: As well as the DEP staff
15 working with our aquaculture staff to make sure there's
16 not going to be any complications there.
17 COMMISSIONER GALLAGHER: If that's a motion, I'll
18 second your motion. How's that?
19 GOVERNOR BUSH: There's a motion and second. Any
20 other discussion? The motion as amended is approved
21 without objection. Can someone answer the question of
22 the time it takes to get, after approval --
23 MR. LOVERN: No one stepped up as quickly as
24 before. A lot of the time is spent in terms of legal
25 review internally. But also the clients have legal
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1 review. So there is a process on both sides. I don't
2 think it's often calculated -- I can't think of one
3 that's taken that long once everyone agreed on the
4 easement document. So that process --
5 COMMISSIONER GALLAGHER: Isn't there a standard
6 easement document and all you do is fill in --
7 MR. LOVERN: Well, there's legal descriptions and
8 that sort of thing that have to be reviewed and
9 developed.
10 GOVERNOR BUSH: Well, I would urge you, just as
11 you-all have been very successful in streamlining the
12 acquisition of public lands or lands that we want to
13 become public, and we've shortened that time frame and
14 we've reengineered that process, I would urge you to
15 consider looking at this process and creating some best
16 practices to shrink that down. I know you can do it
17 because you've done it in a lot of different areas of
18 the Department. The Department is much more efficient
19 than it once was and less bureaucratic. That may
20 create some consternation for people because the
21 bureaucracy and slowness may have helped some people
22 that were not anticipating efficiencies in terms of our
23 ability to regulate. But having said that, if this is
24 a problem, I know you can figure out how to address it.
25 MR. LOVERN: Yes, sir. And specifically in the
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1 Division, with regard to sovereignly submerged lands
2 documents, we recently completed, in conjunction with
3 the inspector general's office, a mapping of all the
4 processes in the Division. So it's taken a year to get
5 that done. We're now beginning to look at each one
6 individually to put whatever improvements in place we
7 can.
8 GOVERNOR BUSH: Excellent. Thank you.
9 MR. STOUTAMIRE: Two quick comments. Please
10 understand that this rule does include a letter of
11 consent for activities necessary to protect public
12 health, safety, and welfare. And Suzanne Brantley, our
13 counsel, has called something to my attention. At this
14 point in the adoption process we cannot notice public
15 workshops under Chapter 120. So what we will do is
16 notice three additional public hearings.
17 GOVERNOR BUSH: That's fine.
18 MR. STOUTAMIRE: Is that okay?
19 GOVERNOR BUSH: Yeah, that's even actually more.
20 Thank you. Secretary?
21 MR. STRUHS: Good morning, Governor. I'm sorry
22 for my tardiness this morning. But the good Lord is
23 smiling on us today. Because, in fact, Item 3 is
24 focussed specifically on--
25 GOVERNOR BUSH: That's good to know. I woke up
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1 this morning and wondered if the good Lord was going to
2 smile on me.
3 MR. STRUHS: Item 3 just happens to be an item in
4 which we will be looking to accelerate the approval
5 process for easements. So sometimes these things are
6 just remarkably --
7 GOVERNOR BUSH: Providential.
8 MR. STRUHS: Providential, that's right.
9 COMMISSIONER GALLAGHER: Well, as you're hitting
10 Item 3, I'd like to move Item 3 but make the delegation
11 of authority five acres.
12 MR. STRUHS: And that is fine with us. We've
13 spoken to your cabinet aides and they're more
14 comfortable with five over ten and we're fine with
15 that.
16 COMMISSIONER BRONSON: Second.
17 GOVERNOR BUSH: Moved and seconded. Without
18 objection, the item is approved.
19 MR. STRUHS: Just for the audience's benefit, what
20 this does is, we currently had delegated to the
21 Department the ability to approve easements on uplands
22 up to a quarter of an acre. This would now make that
23 five acres which means we can get more of these
24 processed faster.
25 And, indeed, Item No. 4, Providence continues to
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1 shine on us. Item 4 is an example of a case that would
2 actually benefit from the action just taken by your
3 Board of Trustees. So in the future, an item like No.
4 4 would no longer be in the agenda. It would just move
5 through and get done.
6 GOVERNOR BUSH: Is there a motion?
7 COMMISSIONER GALLAGHER: Motion on 4.
8 COMMISSIONER BRONSON: Second.
9 GOVERNOR BUSH: Moved and seconded. Show how
10 efficient we are. Without objection, the item passes.
11 COMMISSIONER GALLAGHER: Motion to defer 5.
12 MR. STRUHS: And a note on 5, sir --
13 GOVERNOR BUSH: There is a motion to defer until
14 June 26th and a second. Without objection, the item is
15 deferred.
16 MR. STRUHS: Another example of how all these
17 things interlock. Item 5 is an example of an easement
18 that would be delegated. But, in fact, because it is
19 an issue that has heightened public concern, even with
20 the delegation --
21 COMMISSIONER GALLAGHER: Motion on 6.
22 (Laughter.)
23 MR. STRUHS: It all fits together.
24 GOVERNOR BUSH: There's a motion on 6. Is there a
25 second?
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1 COMMISSIONER BRONSON: Second.
2 GOVERNOR BUSH: Moved and seconded. Without
3 objection, the item is approved. Get ahead of the
4 curve here, David.
5 MR. STRUHS: I'm with you, sir. Item No. 7.
6 COMMISSIONER GALLAGHER: Motion on 7.
7 GOVERNOR BUSH: You want to, just for the public,
8 announce --
9 MR. STRUHS: Yes, sir. This is an option
10 agreement for 71 acres in the Chassahowitzka Swamp
11 Wildlife Management Area to be managed by the Florida
12 Fish and Wildlife Conservation Commission.
13 GOVERNOR BUSH: Thank you, there's a motion.
14 COMMISSIONER BRONSON: Second.
15 GOVERNOR BUSH: And a second. Without objection,
16 the item is passed.
17 MR. STRUHS: Item 8, I'd like to just point out
18 that there is an issue on Item 8 as it relates to the
19 process apart from the substance. And one of the
20 things that I promised you-all back in September of
21 last year is that in our ongoing efforts to improve the
22 efficiency of our land acquisition efforts, that we
23 would come back to you and seek your agreement to move
24 forward with some additional means of improving those
25 efficiencies. We now have one of those options before
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1 you. And what we would seek today is your guidance,
2 your advice as we move forward. And to the extent that
3 you're interested in a description of the kind of
4 contracts we're looking to enter into, we're prepared
5 to do that.
6 COMMISSIONER GALLAGHER: I'll move to accept
7 Item 8.
8 GOVERNOR BUSH: Is there a second?
9 ATTORNEY GENERAL CRIST: I'll second it. But I'd
10 like you to go ahead and elaborate as you've
11 volunteered.
12 MR. STRUHS: Yes, sir. And I'm going to ask
13 Mr. Lovern to describe this in brief. A lot of you
14 have been already briefed in detail on this. But,
15 again, for the public's benefit, a quick overview.
16 MR. LOVERN: Good morning. I'm Rob Lovern,
17 assistant director of State Lands again. The item in
18 question today is, again, a continuation of efficiency
19 efforts that we've put in place throughout the
20 Division. And brief history is that state lands has
21 privatized quite a few functions over the last ten to
22 12 years with the advent of the P2000 program and then
23 moving into Florida Forever. We've been very
24 successful with that. I think it's part of the
25 foundation of the reduction and process times. We've
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1 reduced by 46 percent the acquisition time line. It's
2 a result of being able to process more work, more
3 volume faster than what we were able to do with the
4 staff that we have.
5 Staffing in our Division has remained relatively
6 constant since about 19, I think, 88. 1990, of course,
7 with P2000, we received a 250 percent increase in
8 funding and thereby workload but the staffing, again,
9 has remained relatively constant. So during the ten
10 years of P2000 and entering into Florida Forever, we've
11 used private contractors to reach the programmatic
12 objectives and the objectives of the Trustees.
13 This latest effort that David stated that he had
14 mentioned to you back in September involves privatizing
15 some of the private real estate services. And part of
16 how this came about was our studying the processes
17 again and what's happening in the processes and what
18 results we're getting. And we notice that over the
19 last two years, for instance, we used earlier data
20 which is the same. But over the last two years, we
21 noticed that out of all the appraisals, for instance,
22 that we acquired, 40 percent of those resulted in an
23 acquisition. So conversely 60 percent did not, so
24 60 percent of the appraisals we obtained. And the
25 costs of those appraisals were about $550,000 per year.
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1 We also, if you -- in our process, understand that
2 the acquisition agents may make contact with owners,
3 they spend a lot of time doing that. They develop a
4 request for an appraisal. We have to get an appraisal
5 map and then we get an appraisal. So there's a lot
6 more workload involved with an appraisal than just
7 obtaining that.
8 And in this case, the appraisal maps alone that
9 accompanied those appraisals were about $600,000 per
10 year. With staff time, we did a calculation of that,
11 comes to about 1.4 million a year. So over the last
12 two years, we've averaged about $2.5 million in work
13 that turned out to be nonproductive. It did not result
14 in the acquisition of land. So our effort is to try to
15 use some private contractors to do what we've dubbed
16 the project, Project Triage. Which in the current
17 evaluation process for projects, there is an
18 extraordinary focus on resources which is important.
19 That's what the purpose of the program is and we aren't
20 suggesting any change to the evaluation of the
21 resources.
22 One element that's not done at this point is a
23 thorough evaluation of the feasibility of the project
24 from a real estate perspective. While the resource may
25 be pristine, if the owners are not willing to sell to
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1 us, then it doesn't benefit the program that we can't
2 buy it but we spend a lot of money finding that out.
3 So the idea for efficiency is that we put an extreme
4 focus up front on a project as opposed to the current
5 process of mapping and appraising, negotiating to find
6 out we're not going to be successful.
7 We're suggesting that if we use private
8 contractors to do feasibility studies on projects, to
9 do market research on projects, to do owner contact on
10 projects under our name, and begin that process of
11 evaluating the real estate viability of the project
12 prior to us spending money, we think that over time if
13 we improve our ratio of success from 40 percent to 75,
14 we can save about $1.9 million per year. That figure
15 will take a couple of years to reach simply because of
16 the -- I'm sorry?
17 GOVERNOR BUSH: Commissioner.
18 COMMISSIONER BRONSON: Well -- and after our
19 discussion yesterday, I did a lot of thinking about
20 this whole process. And, of course, taking it point by
21 point as you're giving it now, it makes sense that you
22 would probably save some money in the end by doing
23 this. But on the other hand, I got to thinking, why
24 would you not go to, if you've got a targeted area that
25 the committee has selected as a potential for an
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1 important property for state lands, find out what the
2 owner is willing to talk about as far as price and so
3 forth to get an idea if they are so far out of line
4 that you know it's not worth going to have all the
5 mapping done and everything else.
6 And instead of just going out and mapping and
7 spending all that money and engineers and people with
8 environmental backgrounds to go out and make all these
9 analyses, why would you spend that money if the people
10 aren't really in the mood to sell to start with?
11 MR. LOVERN: Part of the process of the project
12 ranking is just that. Whoever proposes is required to
13 submit to us that the owners are willing to sell. I
14 think what happens though is are they really willing to
15 sell or are they interested in making some money on
16 their property which is two different things.
17 A lot of times we get, in an application, it says
18 that we've contacted all the owners, they're all
19 willing to sell. We haven't done that evaluation from
20 a real estate perspective. They may be thinking that
21 in terms of a government program they're going to make
22 a lot of money on their property. So they're really
23 saying, We may be interested if you pay us what we have
24 in mind.
25 So the real issue is aligning expectations. You
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1 can, again, go out, and if the expectations are not
2 aligned, which is the case now, you may find everyone
3 saying, Yes, and then later on in the process saying,
4 No. In this case we would like to find out what the
5 real -- maybe some more general studies on evaluations,
6 possibly a letter that goes out and says, Our research
7 indicates the value range is 15 to 1800. What are you
8 thinking?
9 So it would require some work for us to get there.
10 Another factor is sort of incidental to this. One of
11 the next things we're doing is developing some very
12 advanced databases and management information systems
13 in the Division. That's part of our process mapping
14 effort, is to develop a system that encompasses
15 efficient processes. So our staff will also be
16 spending a lot of time with that.
17 And part of this effort is, for instance, to have
18 someone build an ownership database on a CD ROM that we
19 could use for mail-outs. Instead of going owner by
20 owner, we could do more mass contacting. And the
21 effort would be that in a list that now contains about
22 $2.5 billion worth of property and where we have about
23 $105 million a year to spend which nets out about 95
24 million, so that 95 million, the question we have is,
25 Where do we apply that resource? Where do we apply
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1 staff time?
2 And so with a list that revolves around a
3 six-month cycle, we have to constantly be in that mode.
4 And, Commissioner, I certainly agree with what you said
5 and that's the intent of what we want to do, but we
6 also have the issue of the value of the resource. So
7 the idea is not simply that we evaluate the real estate
8 viability because it may be a very pristine resource.
9 The idea is that we could move to some other
10 strategy to help facilitate success in the project.
11 It's not that we would want to walk away from it. It's
12 what other creative approaches can we use to moving
13 this project from a marketing perspective into becoming
14 a viable project. So it wouldn't be the idea of
15 neglecting the resource but using approaches other than
16 those that we've used in the past.
17 GOVERNOR BUSH: A couple comments. You used the
18 word "privatization." This is an outsource effort. I
19 don't think it's privatization. The people that might
20 oppose privatization wouldn't necessarily oppose this
21 because this will allow us to buy more property at a
22 more efficient price to allow us to buy more property.
23 And words matter so I just urge you to use the right
24 language. I'll be reading about it. Once it's
25 repeated four times, it becomes the law of the land in
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1 Florida.
2 MR. LOVERN: Yes, sir. I agree.
3 COMMISSIONER BRONSON: The other issue, Governor,
4 I want to make sure, I want to make sure in this
5 process -- and I know where you're going and I
6 understand where you're going and why you're getting
7 there. But I don't want us necessarily to go out and
8 pick the No. 30 just to buy No. 30 on the list if
9 No. 30 isn't near as important as its total
10 environmental issues as No. 1 is. And I'm not saying
11 we ought to just go after No. 1 no matter what.
12 But what I'm saying is, I don't want us going and
13 buying lands that aren't as important as hubs in the
14 puzzle, if you will, that we may need to connect the
15 dots on some other properties and do some things for
16 habitat and so forth which has been one of the issues
17 in the state of Florida. Just to go get No. 30 because
18 that person is willing to deal with us and maybe we
19 didn't spend enough time working with the other people
20 to get them to come around to get a more important
21 piece of property that may need to be saved.
22 MR. LOVERN: Yes, sir. That's a very important
23 point and that's not our intent. The concept with the
24 A group -- as you know, now we have an A and a B
25 group -- is that they are all equal. If they made it
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1 into the A group, they're equal in resource. Of
2 course, some may disagree with that that support a
3 particular project --
4 GOVERNOR BUSH: Yeah, the properties on the B
5 group, they're the ones that disagree with the A group.
6 (Laughter.)
7 MR. LOVERN: Absolutely. Yes, sir. Because, as
8 you know, on those we require at least a 50 percent
9 discount to bargain-share to go after those deals.
10 GOVERNOR BUSH: I have another question.
11 MR. LOVERN: Yes, sir.
12 GOVERNOR BUSH: If you use real estate service
13 companies, don't you have the opportunity to save money
14 for having them become a cooperating broker rather than
15 us pay them? I mean, we've had deals here where we
16 could have saved -- some of these big timber deals, had
17 we had a broker representing our interests, we could
18 have got 50 percent of the commission and maybe
19 negotiated with that real estate broker a more
20 aggressive beneficial participation and the state could
21 have some savings. I may have said something that was
22 close to breaking the law, but I didn't mean it.
23 The idea is from a business perspective there is
24 money on the table that doesn't go into the pockets of
25 the seller that the buyer ultimately pays that if we
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1 negotiate this the right way, it will dwarf the savings
2 that you're talking about in terms of efficiencies.
3 MR. LOVERN: Yes, sir. The idea would be that
4 on -- the contracts that we're proposing are task
5 assignment contracts which means we have an umbrella
6 contract that covers general concepts yet each task
7 that we issue would be negotiated individually. So our
8 project managers within the Bureau of Land Acquisition
9 would look at the particular property for sale. And,
10 yes, if it's listed by a broker, part of the commission
11 that may be received by our contractor would be --
12 we've got to get into the legalities of representation
13 with that. But could they split the commission with
14 the listing broker, yes, and that's one of the things
15 we're looking at.
16 We had provided to you a chart as an example of
17 those commission structures. It's important to keep in
18 mind we haven't yet entered into negotiations with the
19 contractors. This was an analysis of whether we could
20 pay commissions that were based purely on productivity,
21 time, and dollar savings to the Florida Forever program
22 and still keep the total cost below the approved
23 value -- I'm sorry, the pure value which is the
24 appraised value of the acquisition. And we think we
25 have the proposal to enter into negotiations with these
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1 contractors that will get us there.
2 Again, we're not obligated with the contract to
3 ever use a contractor. We make no commitment to
4 provide any level of work, ever give them a task. We
5 have the option at any time if they do not perform
6 effectively and efficiently, we have the option of
7 never doing any more work with them. So our idea and
8 focus is on performance. It's on companies that will
9 produce the results that we need and will do it
10 efficiently and save money for the Florida Forever
11 program.
12 GOVERNOR BUSH: Any other discussion? There is a
13 motion and a second. Without objection, the item is
14 approved. Go forth and do good work.
15 COMMISSIONER GALLAGHER: Motion to defer No. 9.
16 COMMISSIONER BRONSON: Second.
17 GOVERNOR BUSH: There is a motion to defer Item 9
18 and a second. Without objection, the item is deferred.
19 MR. STRUHS: Governor, I just wanted, sir, to add
20 that on Item No. 8 we will plan on coming back in about
21 six months to give you a status report as to our
22 progress so we keep you informed as we go. And if I
23 could -- I can't. I'd like to just take 60 seconds if
24 I might.
25 Last night, the Florida Legislature enacted the
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1 Everglades funding plan for the next several years that
2 Governor Bush was the architect of --
3 GOVERNOR BUSH: We talked about that already
4 before you came.
5 MR. STRUHS: Excellent. $1.7 billion new and
6 additional revenue for Everglades restoration that
7 doesn't affect these other important land conservation
8 programs around the state of Florida. You won't read
9 that in any paper this morning --
10 GOVERNOR BUSH: I said that too. You're on
11 message.
12 (Laughter.)
13 COMMISSIONER GALLAGHER: You're on the script.
14 There's no doubt about it.
15 MR. STRUHS: That was completely unrehearsed.
16 GOVERNOR BUSH: That's for sure.
17
18
19
20
21
22
23
24
25
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1 GOVERNOR BUSH: State Board of Administration.
2 COMMISSIONER GALLAGHER: Motion on the minutes.
3 ATTORNEY GENERAL CRIST: Second.
4 GOVERNOR BUSH: There's a motion and a second.
5 Item 1 is approved without objection.
6 Item 2.
7 MR. STIPANOVICH: Item 2, the Florida -- excuse
8 me. Item 2, approval of fiscal sufficiency of an
9 amount not exceeding 240,000,000 State of Florida, full
10 faith and credit, State Board of Education public
11 education capital outlay refunding bonds.
12 COMMISSIONER GALLAGHER: Motion on 2.
13 ATTORNEY GENERAL CRIST: Second.
14 GOVERNOR BUSH: Moved and seconded. Without
15 objection, Item 2 is passed.
16 MR. STIPANOVICH: Item No. 3 is, Requesting
17 approval of fiscal sufficiency of an amount not
18 exceeding 44,630,000 State of Florida, full faith and
19 credit, State Board of Education capital outlay bonds.
20 ATTORNEY GENERAL CRIST: Motion.
21 COMMISSIONER GALLAGHER: Second.
22 GOVERNOR BUSH: Moved and seconded. Without
23 objection, the item is approved.
24 MR. STIPANOVICH: Item 4, Request approval of the
25 fiscal determination of aggregate amounts not exceeding
ACCURATE STENOTYPE REPORTERS, INC.
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STATE BOARD OF ADMINISTRATION, May 28, 2003 70
1 50 million Florida Housing Finance Corporation
2 homeowner mortgage revenue bonds.
3 ATTORNEY GENERAL CRIST: Motion.
4 COMMISSIONER GALLAGHER: Second.
5 GOVERNOR BUSH: Moved and seconded. Without
6 objection, the item is approved.
7 MR. STIPANOVICH: Item No. 5, Request approval of
8 fiscal determination of an amount not exceeding
9 12,200,000 tax exempt Florida Housing Finance
10 Corporation multifamily mortgage revenue bonds.
11 ATTORNEY GENERAL CRIST: Motion.
12 COMMISSIONER GALLAGHER: Second.
13 GOVERNOR BUSH: Moved and seconded. Without
14 objection, the item is approved.
15 MR. STIPANOVICH: Item No. 6 is the Florida
16 Hurricane Catastrophe Fund requests consideration for
17 Rule 6.1 which is the Florida Hurricane Catastrophe
18 Fund, requests the Trustees approve filing of Rule
19 19-8.028. This rule was unanimously approved by the
20 Board on April the 8th. We're just requesting approval
21 filing.
22 COMMISSIONER GALLAGHER: I'll move 6.1 and 6.2.
23 GOVERNOR BUSH: There is a motion --
24 ATTORNEY GENERAL CRIST: Second.
25 GOVERNOR BUSH: -- for 6.1 and 6.2 and a second.
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STATE BOARD OF ADMINISTRATION, May 28, 2003 71
1 Any discussion? Without objection, the item passes.
2 Thank you, Coleman.
3 MR. STIPANOVICH: Governor, members, we will be
4 bringing the budget to you hopefully at the next
5 cabinet meeting.
6 GOVERNOR BUSH: Thank you.
7 (Thereupon, the proceedings adjourned at 11:00
8 a.m.)
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STATE BOARD OF ADMINISTRATION, May 28, 2003 72
1
2 CERTIFICATE OF REPORTER
3
4 STATE OF FLORIDA )
5 COUNTY OF LEON )
6
7 I, KRISTEN L. BENTLEY, Court Reporter, certify
8 that the foregoing proceedings were taken before me at the
9 time and place therein designated; that my shorthand notes
10 were thereafter translated under my supervision; and the
11 foregoing pages numbered 1 through 72 are a true and correct
12 record of the aforesaid proceedings.
13
14 I further certify that I am not a relative,
15 employee, attorney or counsel of any of the parties, nor am
16 I a relative or employee of any of the parties' attorney or
17 counsel connected with the action, nor am I financially
18 interested in the action.
19 DATED this 2nd day of June, 2003.
20 ______________________________
21 KRISTEN L. BENTLEY, Court Reporter
Notary Public
22 850-878-2221
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ACCURATE STENOTYPE REPORTERS, INC.
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