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          1
 
          2                  T H E   C A B I N E T
 
          3             S T A T E   O F   F L O R I D A
 
          4
                                 Representing:
          5
                        COMMISSION ON MINORITY ECONOMIC
          6                 AND BUSINESS DEVELOPMENT
                         STATE BOARD OF ADMINISTRATION
          7                 DIVISION OF BOND FINANCE
                        INFORMATION RESOURCE COMMISSION
          8                  DEPARTMENT OF REVENUE
                            STATE BOARD OF EDUCATION
          9                ADMINISTRATION COMMISSION
                             FLORIDA LAND AND WATER
         10                  ADJUDICATORY COMMISSION
                             TRUSTEES OF THE INTERNAL
         11                   IMPROVEMENT TRUST FUND
 
         12
                       The above agencies came to be heard before
         13   THE FLORIDA CABINET, Honorable Governor Chiles
              presiding, in the Cabinet Meeting Room, LL-03,
         14   The Capitol, Tallahassee, Florida, on Tuesday,
              October 24, 1995, commencing at approximately
         15   9:40 a.m.
 
         16
 
         17
 
         18                       Reported by:
 
         19                    LAURIE L. GILBERT
                        Registered Professional Reporter
         20                 Certified Court Reporter
                            Notary Public in and for
         21              the State of Florida at Large
 
         22
 
         23            ACCURATE STENOTYPE REPORTERS, INC.
                                100 SALEM COURT
         24                TALLAHASSEE, FLORIDA 32301
                                  904/878-2221
         25                      1-800/934-9090

                                                              2
 
          1   APPEARANCES:
 
          2            Representing the Florida Cabinet:
 
          3            LAWTON CHILES
                       Governor
          4
                       BOB CRAWFORD
          5            Commissioner of Agriculture
 
          6            BOB MILLIGAN
                       Comptroller
          7
                       SANDRA B. MORTHAM
          8            Secretary of State
 
          9            BOB BUTTERWORTH
                       Attorney General
         10
                       BILL NELSON
         11            Treasurer
 
         12            FRANK T. BROGAN
                       Commissioner of Education
         13
                                      *
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                 October 24, 1995
                                                              3
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   COMMISSION ON MINORITY
              ECONOMIC AND BUSINESS
          4   DEVELOPMENT:
              (Presented by Tereasa P. Stewart,
          5       Interim Executive Administrator)
 
          6    1                  Deferred                 10
               2                  Approved                 10
          7    3                  Approved                 11
               4                  Approved                 11
          8    5                  Approved                 12
               6                  Deferred                 13
          9
              STATE BOARD OF ADMINISTRATION:
         10   (Presented by Ash Williams, Jr.,
                  Executive Director)
         11
               1                  Approved                 14
         12    2                  Approved                 14
               3                  Approved                 14
         13    4                  Approved                 15
               5                  Approved                 15
         14
              DIVISION OF BOND FINANCE:
         15   (Presented by J. Ben Watkins, III,
                  Director)
         16
               1                  Approved                 16
         17    2                  Approved                 16
 
         18   INFORMATION RESOURCE COMMISSION:
              (Presented by John Douglas,
         19       Interim Executive Director)
 
         20    1                  Approved                 17
               2                  Approved                 17
         21
              DEPARTMENT OF REVENUE:
         22   (Presented by L.H. Fuchs,
                  Executive Director)
         23
               1                  Approved                 19
         24    2                  Approved                 19
               3                  Approved                 19
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                 October 24, 1995
                                                              4
 
          1                        I N D E X
                                  (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              STATE BOARD OF EDUCATION:
          4   (Presented by Robert L. Bedford,
                  Deputy Commissioner)
          5
               1                  Approved                 21
          6    2                  Approved                 21
               3                  Approved                 47
          7    4                  Approved                 47
               5                  Deferred                 49
          8    6                  Deferred                 49
               7                  Deferred                 49
          9    8                  Deferred                 49
               9                  Deferred                 49
         10   10                  Deferred                 49
              11                  Deferred                 49
         11   12                  Deferred                 49
              13                  Deferred                 49
         12   14                  Deferred                 49
              15                  Approved                 49
         13   16                  Approved                 51
              17                  Approved                 51
         14   18                  Approved                 51
              19                  Approved                 52
         15   20                  Approved                 52
              21                  Approved                 52
         16   22                  Approved                 53
 
         17   ADMINISTRATION COMMISSION:
              (Presented by Robert B. Bradley, Ph.D.,
         18       Secretary)
 
         19    1                  Approved                 54
               2 A.               Approved                 54
         20    2 B.               Approved                 54
               3                  Approved                 55
         21    4                  Approved                 55
               5                  Approved                 55
         22    6                  Approved                 56
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                 October 24, 1995
                                                              5
 
          1                        I N D E X
                                  (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              FLORIDA LAND AND WATER ADJUDICATORY COMMISSION:
          4   (Presented by Robert B. Bradley, Ph.D.,
                  Secretary)
          5
               1                  Approved                 57
          6    2                  Approved                111
 
          7   BOARD OF TRUSTEES,
              INTERNAL IMPROVEMENT
          8   TRUST FUND:
              (Presented by Virginia B. Wetherell,
          9       Secretary)
 
         10    1                  Approved                112
               2                  Approved                112
         11   Substitute 3        Deferred                112
              Substitute 4        Deferred                113
         12    5                  Approved                113
               6                  Approved                113
         13    7                  Approved                113
               8                  Approved                114
         14   Substitute 9        Withdrawn               114
              10                  Approved                114
         15   11                  Approved                114
              12                  Approved                115
         16
                       CERTIFICATE OF REPORTER            116
         17
                                      *
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              6
 
          1                  P R O C E E D I N G S
 
10:10     2            (The agenda items commenced at 10:12 a.m.)
 
10:10     3            GOVERNOR CHILES:  Now we'll go to the
 
10:10     4       Commission on Minority Economic and Business
 
10:10     5       Development.
 
10:10     6            MS. STEWART:  Good morning.
 
10:10     7            The first item is final agency action on an
 
10:10     8       administrative hearing in the case of Air X
 
10:10     9       Service Corporation of the denial of application
 
10:10    10       for certification as a Minority Business
 
10:10    11       Enterprise.
 
10:10    12            Governor Chiles, before action is taken
 
10:10    13       today, there is a representative here from the
 
10:10    14       Air X Service Corporation who would like to
 
10:10    15       speak, and her name is Ms. Olga Fernandez.  She
 
10:10    16       is representing Air X.
 
10:11    17            GOVERNOR CHILES:  Okay.
 
10:11    18            MS. FERNANDEZ:  Good morning.
 
10:11    19            My name is Olga Fernandez, and I'm here on
 
10:11    20       behalf of the applicant to urge you to reject
 
10:11    21       the final order dismissing this case.
 
10:11    22            Air X Service Corporation is an
 
10:11    23       air conditioning service company in business
 
10:11    24       since 1992.  In 1993, they applied for their
 
10:11    25       certification as an MBE with the State.  They're
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              7
 
10:11     1       certified by Dade County, by West Palm Beach
 
10:11     2       County, and by Broward County.
 
10:11     3            Their certification was initially denied
 
10:11     4       because the State felt it didn't have enough
 
10:11     5       evidence that the two minority Hispanic brothers
 
10:11     6       had enough control and supervision of the
 
10:11     7       business.  Later, through depositions and
 
10:11     8       discovery, these facts were determined.
 
10:11     9            And then at the last minute, right before
 
10:11    10       the final administrative hearing, the State
 
10:11    11       raised a new issue, and that was a new statute,
 
10:11    12       a statute that requires owners to be licensed,
 
10:11    13       to have their own license, in a particular
 
10:11    14       business.
 
10:11    15            And our argument is, and our position in
 
10:12    16       which we've cited two cases that hold that way
 
10:12    17       is, that this new statute does not apply
 
10:12    18       retroactively to the time that the application
 
10:12    19       was filed by Air X Service Corporation.
 
10:12    20            And we urge you to please reject this final
 
10:12    21       order.  Based on those grounds, it would be
 
10:12    22       unfair and illogical to do so.
 
10:12    23            An example of that would be if somebody,
 
10:12    24       for example, filed suit today, and two years
 
10:12    25       later there was a new law, and that new law --
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              8
 
10:12     1       the new -- imposing new obligations, would be
 
10:12     2       made to apply to this lawsuit.  And then
 
10:12     3       two years later down the line while the lawsuit
 
10:12     4       is still in -- in progress, a new law would come
 
10:12     5       in, and that would just create lots of chaos, it
 
10:12     6       doesn't make any sense.
 
10:12     7            Please, we ask you to allow this case to go
 
10:12     8       to a final administrative hearing, and to reject
 
10:12     9       this order of dismissal.
 
10:13    10            Thank you.
 
10:13    11            MS. STEWART:  She's trying to win.
 
         12            GOVERNOR CHILES:  That's a pretty good
 
         13       trick.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  I move the
 
10:13    15       staff recommendation, Governor.
 
10:13    16            GOVERNOR CHILES:  Staff recommendation has
 
10:13    17       been moved.
 
10:13    18            Is there a second?
 
10:13    19            COMMISSIONER CRAWFORD:  Could we hear a
 
10:13    20       little bit about the other side?
 
10:13    21            MS. STEWART:  Sir?
 
10:13    22            COMMISSIONER CRAWFORD:  Could we hear the
 
10:13    23       other side, I mean, a little more --
 
10:13    24            GOVERNOR CHILES:  Could we --
 
         25            COMMISSIONER CRAWFORD:  -- a little
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              9
 
          1       rebuttal?
 
10:13     2            GOVERNOR CHILES:  -- hear a little bit more
 
10:13     3       about why -- the staff recommendation.
 
10:13     4            MS. STEWART:  Yes, sir.
 
10:13     5            The hearing officer concluded that there
 
10:13     6       were not enough disputed facts for this case to
 
10:13     7       go forth.  Also, the issue of licenses is
 
10:14     8       addressed in Florida Statute.
 
10:14     9            Even though the application was pending at
 
10:14    10       the time the statute became law, it was
 
10:14    11       determined that the law applied to this
 
10:14    12       license.  So, therefore, a formal hearing was
 
10:14    13       not given to Air Service -- Air X Service
 
10:14    14       Corporation.
 
10:14    15            The -- I believe the staff have seen the
 
10:14    16       recommended final order that the hearing officer
 
10:14    17       gave us on this issue.  So we do not feel that
 
10:14    18       there are enough disputed facts for this to go
 
10:14    19       forward.
 
10:14    20            ATTORNEY GENERAL BUTTERWORTH:  So the issue
 
10:14    21       is not just on the licensing then, it's more
 
10:14    22       than that.
 
10:14    23            MS. STEWART:  It's -- it's licensing.
 
10:14    24       It's -- they're in the air conditioning
 
10:14    25       service.  They have no license, and they have no
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              10
 
10:14     1       federal certification from EPA to perform this
 
10:14     2       service.
 
10:14     3            ATTORNEY GENERAL BUTTERWORTH:  But as soon
 
10:14     4       as they get that, they can -- they can then
 
10:14     5       apply again.
 
10:15     6            MS. STEWART:  Yes, sir.
 
10:15     7            GOVERNOR CHILES:  We have a motion.
 
10:15     8            SECRETARY MORTHAM:  Governor, I'd suggest
 
10:15     9       we defer this issue.
 
10:15    10            GOVERNOR CHILES:  Substitute to defer.
 
10:15    11            Is there a second to that?
 
10:15    12            COMPTROLLER MILLIGAN:  Second.
 
10:15    13            GOVERNOR CHILES:  Second.
 
10:15    14            Without objection, it's deferred.
 
10:15    15            MS. STEWART:  Our second action -- our
 
10:15    16       second item is final agency action on
 
10:15    17       administrative hearing in the case of Florida
 
10:15    18       Moving System, Inc., on denial of application
 
10:15    19       for certification as a Minority Business
 
10:15    20       Enterprise.
 
10:15    21            SECRETARY MORTHAM:  Move approval.
 
10:15    22            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:15    23            GOVERNOR CHILES:  Moved and seconded.
 
10:15    24            Without objection, it's approved.
 
10:15    25            MS. STEWART:  Item 3, final agency action
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              11
 
10:15     1       on an administrative hearing in the case of
 
10:15     2       General Contractors and Construction Management,
 
10:15     3       Inc., of the denial of application for
 
10:15     4       certification as a Minority Business Enterprise.
 
10:15     5            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
10:16     6            SECRETARY MORTHAM:  Second.
 
10:16     7            GOVERNOR CHILES:  Is there a motion and
 
10:16     8       second?
 
10:16     9            ATTORNEY GENERAL BUTTERWORTH:  Yes.
 
         10            SECRETARY MORTHAM:  Yes.
 
10:16    11            GOVERNOR CHILES:  Without objection, it's
 
10:16    12       approved.
 
10:16    13            MS. STEWART:  Item 4, final agency action
 
10:16    14       on an administrative hearing in the case of
 
10:16    15       Larsen Communication and Professional Services,
 
10:16    16       Inc., of the denial of application for
 
10:16    17       certification as a Minority Business Enterprise.
 
10:16    18            COMMISSIONER BROGAN:  Move approval.
 
10:16    19            SECRETARY MORTHAM:  Second.
 
10:16    20            COMPTROLLER MILLIGAN:  Second.
 
10:16    21            GOVERNOR CHILES:  Moved and seconded.
 
10:16    22            Without objection, it's approved.
 
10:16    23            MS. STEWART:  Final agency action on an
 
10:16    24       admin--
 
10:16    25            Item 5, final agency action on an
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              12
 
10:16     1       administrative hearing in the case of
 
10:16     2       Met Construction, Inc., of the denial of
 
10:16     3       application for certification as a Minority
 
10:16     4       Business Enterprise.
 
10:16     5            TREASURER NELSON:  Move it.
 
10:16     6            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:16     7            GOVERNOR CHILES:  Moved and seconded.
 
10:16     8            Without objection, it's approved.
 
10:16     9            MS. STEWART:  Item 6, final agency action
 
10:16    10       on an administrative hearing in the case of
 
10:16    11       T-B Services Group, Inc., of the denial of
 
10:16    12       application for certification as a Minority
 
10:16    13       Business Enterprise.
 
10:16    14            SECRETARY MORTHAM:  Governor --
 
10:17    15            GOVERNOR CHILES:  Yes.
 
10:17    16            SECRETARY MORTHAM:  -- question.
 
10:17    17            Is this particular item very similar to the
 
10:17    18       item number 1?
 
10:17    19            MS. STEWART:  Yes --
 
10:17    20            SECRETARY MORTHAM:  Is it not predicated on
 
10:17    21       the exact same issue?
 
10:17    22            MS. STEWART:  Yes, it is, it's license.
 
10:17    23            SECRETARY MORTHAM:  Governor, I'd like to
 
10:17    24       move deferral of item 6, too.
 
10:17    25            COMPTROLLER MILLIGAN:  And I second.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

               COMMISSION ON MINORITY ECONOMIC BUSINESS DEVELOPMENT
                                 October 24, 1995
                                                              13
 
10:17     1            GOVERNOR CHILES:  Moved and seconded to
 
10:17     2       defer.  Is there --
 
10:17     3            Without objection, deferred.
 
          4            ATTORNEY GENERAL BUTTERWORTH:  That was the
 
          5       last item.
 
10:17     6            GOVERNOR CHILES:  Oh, that was the last
 
10:17     7       item?  All right.
 
          8            (The Commission on Minority Economic and
 
          9       Business Development Agenda was concluded.)
 
         10                             *
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                 October 24, 1995
                                                              14
 
10:17     1            GOVERNOR CHILES:  State Board of
 
10:17     2       Administration.
 
10:17     3            COMPTROLLER MILLIGAN:  I move the minutes.
 
10:18     4            TREASURER NELSON:  Second.
 
10:18     5            GOVERNOR CHILES:  Moved and seconded on the
 
10:18     6       minutes.
 
10:18     7            Without objection, they're approved.
 
10:18     8            MR. WILLIAMS:  Item 2 is a fiscal
 
10:18     9       sufficiency for the Florida Housing Finance
 
         10       Agency.
 
10:18    11            (Secretary Mortham exited the room.)
 
10:18    12            TREASURER NELSON:  Move it.
 
10:18    13            COMPTROLLER MILLIGAN:  Second.
 
10:18    14            GOVERNOR CHILES:  Moved and seconded.
 
10:18    15            Without objection, it's approved.
 
10:18    16            MR. WILLIAMS:  Item 3 is the fiscal
 
10:18    17       sufficiency for the Florida Housing Finance
 
10:18    18       Agency.
 
10:18    19            TREASURER NELSON:  Move it.
 
10:18    20            COMPTROLLER MILLIGAN:  And second.
 
10:18    21            GOVERNOR CHILES:  Moved and seconded.
 
10:18    22            Without objection, it's approved.
 
10:18    23            MR. WILLIAMS:  Item 4 is a fiscal
 
10:18    24       sufficiency for the Florida Housing Finance
 
10:18    25       Agency.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                 October 24, 1995
                                                              15
 
10:18     1            TREASURER NELSON:  Move it.
 
10:18     2            COMPTROLLER MILLIGAN:  Second.
 
10:18     3            GOVERNOR CHILES:  Moved and seconded.
 
10:18     4            Without objection, it's approved.
 
10:18     5            Bond Finance.
 
10:18     6            TREASURER NELSON:  One more.
 
          7            GOVERNOR CHILES:  Oh.  Go ahead.
 
10:18     8            MR. WILLIAMS:  Item 5, reports from the
 
10:18     9       Executive Director, the Investment Performance
 
10:18    10       and Fund Balance Analysis for the month of
 
10:18    11       September '95.
 
10:18    12            TREASURER NELSON:  Move it.
 
10:18    13            COMPTROLLER MILLIGAN:  And second.
 
10:18    14            GOVERNOR CHILES:  Moved and seconded.
 
10:18    15            Without objection, that's approved.
 
10:18    16            MR. WILLIAMS:  Thank you.
 
         17            (The State Board of Administration Agenda
 
         18       was concluded.)
 
         19                             *
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                 October 24, 1995
                                                              16
 
10:18     1            GOVERNOR CHILES:  Bond Finance.
 
10:18     2            MR. WATKINS:  Two items for your
 
10:18     3       consideration this morning.
 
10:18     4            Item 1 is approval of the minutes from the
 
10:18     5       October 12 --
 
10:18     6            ATTORNEY GENERAL BUTTERWORTH:  So move.
 
10:18     7            GOVERNOR CHILES:  It's moved and seconded.
 
10:18     8            Without objection, the minutes are
 
          9       approved.
 
10:19    10            MR. WATKINS:  Item number 2 is a resolution
 
10:19    11       authorizing the negotiated sale of Multifamily
 
10:19    12       Housing Revenue Bonds for the projects specified
 
10:19    13       in items A through C for and on behalf of the
 
10:19    14       Florida Housing Finance Agency at their request.
 
10:19    15            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
10:19    16            COMPTROLLER MILLIGAN:  Second.
 
10:19    17            GOVERNOR CHILES:  Moved and seconded.
 
10:19    18            Without objection, it's approved.
 
         19            (The Division of Bond Finance Agenda was
 
         20       concluded.)
 
         21                             *
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                         INFORMATION RESOURCE COMMISSION
                                 October 24, 1995
                                                              17
 
10:19     1            GOVERNOR CHILES:  Information Resource
 
10:19     2       Commission.
 
          3            (Secretary Mortham entered the room.)
 
10:19     4            MR. DOUGLAS:  Good morning, Governor,
 
10:19     5       members of the Cabinet.  Two items this morning.
 
10:19     6            Item number 1 is approval of the minutes of
 
10:19     7       the meeting on September 28th, 1995.
 
10:19     8            COMMISSIONER BROGAN:  So move.
 
10:19     9            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:19    10            GOVERNOR CHILES:  Moved and seconded.
 
10:19    11            Without objection, it's approved.
 
         12            MR. DOUGLAS:  Item number 2 is the approval
 
10:19    13       of award of a contract to Coopers and Lybrand
 
10:19    14       for $499,900 to acquire project monitoring
 
10:19    15       services pursuant to Section 282.322,
 
10:19    16       Florida Statutes, for monitoring designated
 
10:19    17       projects identified in the General
 
10:19    18       Appropriations Act.
 
10:19    19            SECRETARY MORTHAM:  Move approval.
 
10:19    20            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:19    21            COMMISSIONER CRAWFORD:  Second.
 
10:19    22            GOVERNOR CHILES:  Moved and seconded.
 
10:19    23            Without objection, it's approved.
 
10:19    24            MR. DOUGLAS:  Thank you, Governor.
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                         INFORMATION RESOURCE COMMISSION
                                 October 24, 1995
                                                              18
 
          1            (The Information Resource Commission Agenda
 
          2       was concluded.)
 
          3                             *
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              DEPARTMENT OF REVENUE
                                 October 24, 1995
                                                              19
 
10:20     1            GOVERNOR CHILES:  Department of Revenue.
 
10:20     2            MR. FUCHS:  Good morning.
 
10:20     3            GOVERNOR CHILES:  Good morning.
 
10:20     4            MR. FUCHS:  Item 1 is request for approval
 
10:20     5       of minutes of the September 28th meeting.
 
10:20     6            SECRETARY MORTHAM:  Move approval.
 
10:20     7            COMMISSIONER BROGAN:  Second.
 
10:20     8            GOVERNOR CHILES:  Moved and seconded.
 
10:20     9            Without objection, minutes are approved.
 
10:20    10            MR. FUCHS:  Item 2 is a request for
 
10:20    11       approval to amend our rule on the Minority
 
10:20    12       Business Enterprise Procurement Program.
 
10:20    13            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
10:20    14            SECRETARY MORTHAM:  Second.
 
10:20    15            GOVERNOR CHILES:  Moved and seconded.
 
10:20    16            Without objection, it's approved.
 
10:20    17            MR. FUCHS:  Item 3 is a request for
 
10:20    18       authority to enter into contracts between the
 
10:20    19       Department of Revenue and eight certified public
 
10:20    20       accountant firms for tax compliance audits.
 
10:20    21            COMPTROLLER MILLIGAN:  So move.
 
10:20    22            SECRETARY MORTHAM:  Second.
 
10:20    23            GOVERNOR CHILES:  Moved and seconded.
 
10:20    24            Without objection, it's approved.
 
10:20    25            MR. FUCHS:  Thank you.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                              DEPARTMENT OF REVENUE
                                 October 24, 1995
                                                              20
 
          1            (The Department of Revenue Agenda was
 
          2       concluded.)
 
          3                             *
 
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              21
 
10:20     1            GOVERNOR CHILES:  State Board of Education.
 
10:20     2            MR. BEDFORD:  Good morning,
 
10:20     3       Governor Chiles, members of the State Board of
 
10:20     4       Education.
 
10:20     5            Item 1, minutes of the meeting held
 
10:20     6       September 14th, 1995.
 
10:20     7            COMMISSIONER BROGAN:  Move approval.
 
10:20     8            SECRETARY MORTHAM:  Second.
 
10:20     9            THE COURT:  Moved and seconded.
 
10:21    10            Without objection, it's approved.
 
10:21    11            MR. BEDFORD:  Item 2, minutes of the
 
10:21    12       meeting held on August 22nd, 1995.  This is an
 
10:21    13       item deferred from the October 12th Cabinet
 
10:21    14       meeting.
 
10:21    15            COMMISSIONER BROGAN:  Move approval.
 
10:21    16            SECRETARY MORTHAM:  Second.
 
10:21    17            GOVERNOR CHILES:  Moved and seconded.
 
10:21    18            Without objection, it's approved.
 
         19            MR. BEDFORD:  Item 3 is the annual report
 
10:21    20       of the Florida Education and Employment Council
 
10:21    21       for Women and Girls.  We have with us coming
 
10:21    22       forward at this time, Colonel Ron Joe.  And he
 
10:21    23       will make a presentation for your information.
 
10:21    24            Colonel Joe, welcome.
 
10:21    25            COLONEL JOE:  Good morning, Governor,
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              22
 
10:21     1       members of the Board.
 
10:21     2            It's a pleasure to be here.  I'm Colonel
 
10:21     3       Ron Joe.  I'm assigned to the only -- to the
 
10:21     4       Defense Equal Opportunity Management Institute.
 
10:21     5       It's located at Patrick Air Force Base.  We
 
10:21     6       train equal opportunity advisors for the
 
10:21     7       Department of Defense.
 
10:21     8            It's a pleasure to be on this Board at the
 
10:21     9       appointment of Commissioner Brogan.  I have with
 
10:21    10       me Dr. Steve Sorg, who is a member of the Board,
 
10:21    11       will come up to --
 
10:21    12            Steve, stand up so we can see you, please.
 
10:22    13            And Dr. Carol Darling, who is the Executive
 
10:22    14       Director for the Board.
 
10:22    15            We'd like to do three things this morning:
 
10:22    16       First of all, give you a brief history of
 
10:22    17       the Board, the Council, and then talk to you
 
10:22    18       about the 1995 annual report.  And then make a
 
10:22    19       petition to the Board about the future of the
 
10:22    20       Council.
 
10:22    21            We'd like to thank Commissioner Brogan, for
 
10:22    22       the Commission for giving us the life, for the
 
10:22    23       financing, for the support.  We came to
 
10:22    24       Commissioner Brogan with this report just two to
 
10:22    25       three weeks ago.  And gave an initial report to
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              23
 
10:22     1       him, and asked for his support to be here today
 
10:22     2       to present this report to the Cabinet.
 
10:22     3            I would now like to turn the podium over
 
10:22     4       to Dr. Steve Sorg, who will give you a review
 
10:23     5       and the history of the Council.
 
10:23     6            DR. SORG:  Good morning.
 
10:23     7            GOVERNOR CHILES:  Good morning.
 
10:23     8            DR. SORG:  I will make the history brief,
 
10:23     9       because I think the most important part of this
 
10:23    10       is the presentation of our sixth annual report.
 
10:23    11            The Council -- the Florida Education
 
10:23    12       Employment Council for Women and Girls was
 
10:23    13       formulated in 1989 by Commissioner of Education,
 
10:23    14       Betty Castor.
 
10:23    15            It has had the purpose of advising the
 
10:23    16       Commissioner of Education, through the Division
 
10:23    17       of Vocational Education, on matters related to
 
10:23    18       the equity in the education or employment of
 
10:23    19       women and girls, and training them for
 
10:23    20       employment.
 
10:23    21            All members have been appointed by the
 
10:23    22       Commissioner of Education.  And the group is a
 
10:23    23       very diverse group in regards to race, gender,
 
10:23    24       ethnicity.  It also represents a wide range of
 
10:23    25       groups representing Florida business, industry,
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              24
 
10:23     1       trade associations, public agencies, education,
 
10:23     2       advisory committees, and educational
 
10:23     3       institutions.
 
10:24     4            One of the purposes that the council has
 
10:24     5       served is to provide for the conduct of
 
          6       statewide needs assessments as prescribed by the
 
10:24     7       Carl Perkins Act or the State Equity
 
10:24     8       Administrator.
 
10:24     9            Now, we meet three to four times a year.
 
10:24    10       Two of those meetings have been public meetings
 
10:24    11       held around the state, soliciting information
 
10:24    12       from lay citizens, advocacy groups, and others
 
10:24    13       related to education and employment
 
10:24    14       opportunities for women and girls.
 
10:24    15            One of the things that we have done is to
 
10:24    16       produce an annual report each year, and this
 
10:24    17       year the sixth annual report is the topic of
 
10:24    18       interest.
 
10:24    19            We have done numerous things in the past.
 
10:24    20       The annual reports have been presented here on
 
10:24    21       several occasions, and the Commissioner has all
 
10:24    22       of those.
 
10:24    23            Last year, the grants that we hold at the
 
10:24    24       University of Central Florida to administer this
 
10:24    25       council conducted statewide educational needs
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              25
 
10:24     1       assessments for victims of domestic violence,
 
10:24     2       and it won a Governor's award last year for
 
10:25     3       prevention of domestic violence, and we were
 
10:25     4       pleased to receive that.
 
10:25     5            This report is kind of an extension of
 
10:25     6       that, and we at this time would like to present
 
10:25     7       to you the sixth annual report.
 
10:25     8            Thank you.
 
10:25     9            COLONEL JOE:  Governor, members of the
 
10:25    10       Cabinet, I would hope that you have a copy of
 
10:25    11       this report at your desk.  If possible, I'd like
 
10:25    12       to go through it with you as a means of
 
10:25    13       presenting it.
 
10:25    14            On page 2 of that report, which is the
 
10:25    15       contents, we have set the report up and looked
 
10:25    16       at the issues of teen pregnancy in the state of
 
10:25    17       Florida.  We feel that it is an issue that is of
 
10:25    18       importance to the citizens of this Florida --
 
10:25    19       for the state of Florida for a number of
 
10:25    20       reasons.
 
10:25    21            But as you can see from looking at the
 
10:25    22       contents, we looked at the issues related to
 
10:25    23       teenage pregnancy.  We then looked at programs
 
10:25    24       for the prevention of teenage pregnancy.  We
 
10:25    25       looked at programs for parents and parenting as
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              26
 
10:26     1       pertained to teenage pregnancy.
 
10:26     2            We then looked at legal issues pertaining
 
10:26     3       to this problem, and then there are a number of
 
10:26     4       appendices beginning with the recommendations
 
10:26     5       from the report in which there are 26
 
10:26     6       recommendations.
 
10:26     7            We constructed the report so that there are
 
10:26     8       recommendations at the end of each chapter.  So,
 
10:26     9       for example, teenage pregnancy and parenthood,
 
10:26    10       the issues, there are then recommendations at
 
10:26    11       the end of the issues portion as well.
 
10:26    12            The report will not allow me to obviously
 
10:26    13       do it -- every issue in detail.  So what I will
 
10:26    14       try to do is highlight and discuss with you some
 
10:26    15       pertinent points as I go through it.
 
10:26    16            The objective of the report was threefold:
 
10:26    17       We first of all wanted to compile and synthesize
 
10:26    18       information on teenage pregnancy.  There was a
 
10:26    19       lot of information out there, but we thought
 
10:26    20       that we could do a service for the state by
 
10:26    21       doing that.
 
10:27    22            Secondly, we wanted to educate and inform
 
10:27    23       Florida's policymakers and its citizens of the
 
10:27    24       financial and the societal cost that teenage
 
10:27    25       pregnancy has for our state, our nation, for the
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              27
 
10:27     1       teenage mother, for the parents where both
 
10:27     2       parents are involved, and for our state.
 
10:27     3            And then finally, we wanted to provide some
 
10:27     4       recommendations that we would hope that you
 
10:27     5       would agree to act on for us, and, therefore,
 
10:27     6       make a real difference in our state on the issue
 
10:27     7       of teen pregnancy.
 
10:27     8            This first slide provides you some
 
10:27     9       information, if you will.  Seventeen thousand
 
10:27    10       live births in the state of Florida in 1994.
 
10:27    11       You can see there where Florida ranks.  We
 
10:27    12       believe that the consequences of early
 
10:27    13       childbearing is devastating for teen mothers.
 
10:28    14            Some of the young girls that we ran into as
 
10:28    15       members of this committee as we visited
 
10:28    16       throughout your state, and our own individual
 
10:28    17       areas, to talk to young girls who were -- who
 
10:28    18       were pregnant and who were mothers, was
 
10:28    19       absolutely devastating to see ten year old,
 
10:28    20       twelve year old, fourteen year old girls who are
 
10:28    21       themselves kids and children, who are now
 
10:28    22       saddled with children to try and raise.
 
10:28    23            I'd like to ask you to turn to page 8 and
 
10:28    24       page 9 of your report.  And look at the second
 
10:28    25       column on page 8 where it says the cost of
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              28
 
10:28     1       teenage pregnancy and parenthood, and the
 
10:28     2       economic costs.
 
10:28     3            Children who have babies early do not
 
10:28     4       complete education, do not work themselves
 
10:28     5       through to a job, immediately have less income
 
10:28     6       for life than those who are able to delay
 
10:29     7       childbearing to later on.
 
10:29     8            It gives you the figures there on the
 
10:29     9       median income of a female headed household under
 
10:29    10       twenty-five years of age.  And it says that it's
 
10:29    11       $4,243 in 1989.
 
10:29    12            We feel that -- the reports say that we
 
10:29    13       spend 1.1 billion dollars on the children that
 
10:29    14       were born to teen parents in 1992 by the time
 
10:29    15       they have reached the age of twenty-five.
 
10:29    16            Now, in 1992, there were 17,158 children
 
10:29    17       born to teen parents; roughly 17,000 in '93; and
 
10:30    18       17,000 in '94.  If you just add those
 
10:30    19       three years up alone, we're talking about
 
10:30    20       51,965 children born to teen parents.  At an
 
10:30    21       average cost of, if you will, 1.1 billion
 
10:30    22       dollars by the time that we can get them to
 
10:30    23       adulthood and off of dependency for state
 
10:30    24       programs, the economic costs alone say that we
 
10:30    25       ought to do what we can to try and provide for a
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              29
 
10:30     1       prevention, if you will, of teen pregnancy in
 
10:30     2       our state.
 
10:30     3            The recommendations -- one other point.
 
10:30     4       I'm sorry.  Would you turn to page 14.  And then
 
10:30     5       we'll move to recommendations.
 
10:30     6            Page 14 says that there is a significant
 
10:30     7       correlation -- that's on the right-hand side at
 
10:30     8       the bottom of the page, and it's in bold
 
10:30     9       letters.
 
10:30    10            There is a significant correlation between
 
10:30    11       child and sexual abuse and teenage pregnancy.
 
10:30    12       And one report indicates that 66 percent of the
 
10:31    13       young women surveyed who became pregnant were
 
10:31    14       sexually abused.  And so there is a tremendous
 
10:31    15       linkage to this issue and to this problem, and
 
10:31    16       deserves a look.  And if there's anything we can
 
10:31    17       do in the state of Florida, we'd like to do
 
10:31    18       that.
 
10:31    19            And now the recommendations that go along
 
10:31    20       with the teen pregnancy and parenthood issues.
 
10:31    21            I will let you read them.  If you have
 
10:31    22       questions -- just comment on one.  And that is
 
10:31    23       that we would like to recommend the appointment
 
10:31    24       of a council, a statewide council, to look at
 
10:31    25       the initiatives -- to look at initiatives, to
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              30
 
10:31     1       see how as a state we could pull together,
 
10:31     2       community, schools, and otherwise to see if
 
10:31     3       there's something that we can do about -- about
 
10:31     4       this problem.
 
10:31     5            The next portion of the report talks about
 
10:31     6       programs for the prevention of teenage
 
10:31     7       pregnancy.  We think that prevention is a real
 
10:32     8       crux of this problem.  If we can prevent this
 
10:32     9       problem, then, of course, we can -- we can do
 
10:32    10       well to stop the cost in terms of dollars; the
 
10:32    11       societal cost; the cost to the parents; and,
 
10:32    12       of course, the cost to the children.
 
10:32    13            I'd like to direct your attention to
 
10:32    14       page 19, if you will.  At the top of the page
 
10:32    15       there, it says that there are several decision
 
10:32    16       points at which preventive programs can enter to
 
10:32    17       make a difference.  These decision points
 
10:32    18       represent where young teens first make the
 
10:32    19       decision to engage in sexual activity, and then
 
10:32    20       the decision to get -- engage in unprotected
 
10:32    21       sexual activity, and then make the choice to
 
10:32    22       keep the baby.
 
10:32    23            And what preventive programs can do is to
 
10:32    24       try and convince, first of all, young teens to
 
10:32    25       abstain from sex, to not have sex-- sexual
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              31
 
10:32     1       intercourse.  But then to go on and admit that
 
10:33     2       once they do become sexually active, once they
 
10:33     3       are the parents of children as teens, then we
 
10:33     4       should do what we can do to prevent second
 
10:33     5       pregnancies, because these persons become, in
 
10:33     6       many instances, wards of the state, they go on
 
10:33     7       to the welfare cycle, and it's -- and it's
 
10:33     8       necessary to break that cycle.
 
10:33     9            Good programs for prevention of teen
 
10:33    10       pregnancy involve parents, they involve peer
 
10:33    11       educators, they divide -- they involve
 
10:33    12       developing and improving the self-esteem of the
 
10:33    13       persons that -- these young teenagers who are
 
10:33    14       involved.
 
10:33    15            We think that schools should be involved,
 
10:33    16       we don't think that schools have all of the
 
10:33    17       answers to these situations, and, of course,
 
10:33    18       situations where schools and communities and
 
10:33    19       parents are involved we think are most
 
10:33    20       productive.
 
10:33    21            The recommendations reference this program
 
10:34    22       for the prevention of teen pregnancy are shown
 
10:34    23       here.
 
10:34    24            Next we'd like to look at some goals for
 
10:34    25       programs of pregnant and parenting teens.
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              32
 
10:34     1            Once these young teens have children, it is
 
10:34     2       so important for us as a state to provide
 
10:34     3       programs for them that will allow them to get
 
10:34     4       through school so that they can get a high wage
 
10:34     5       job and can be productive and not spend the rest
 
10:34     6       of their lives in a welfare cycle, and as wards
 
10:34     7       of the states -- of the state.
 
10:34     8            The risks, as you can see here, are just
 
10:35     9       absolutely horrible.  What happens to teenage
 
10:35    10       parents is that they don't go to school, they
 
10:35    11       finish -- they don't finish school, they fail at
 
10:35    12       school, they don't get employed, they risk
 
10:35    13       poverty.  One of the quickest signs or one of
 
10:35    14       the clear indicators of teenage pregnancy is
 
10:35    15       situations where -- where there is poverty.
 
10:35    16            One of the stories that -- that I ran into
 
10:35    17       as we walked around and looked at this is a
 
10:35    18       young man in my county who has reported as
 
10:35    19       somewhere in the neighborhood of nineteen
 
10:35    20       children fathered in our vicinity.
 
10:35    21            I met a young lady who fathered four of his
 
10:35    22       children who related to me that she knew the
 
10:35    23       mother of three of his other children.  And I
 
10:35    24       say, why should I pay taxes so that someone
 
10:35    25       who's about thirty something can have children
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              33
 
10:36     1       with a fourteen year old child; and as a state,
 
10:36     2       we have done nothing to him, and we've done
 
10:36     3       nothing to stop that process from occurring?
 
10:36     4       We -- we need to do something to break that
 
10:36     5       cycle.
 
10:36     6            I talked to a young lady who was pregnant,
 
10:36     7       and she was the first one that I ran into,
 
10:36     8       because most times you say young girls have
 
10:36     9       children by accident, or -- or they don't have
 
10:36    10       the facts.
 
10:36    11            But here was a young girl who had a child
 
10:36    12       because she wanted to.  And her reason for
 
10:36    13       having this child was because her sisters and
 
10:36    14       her cousins had children, and she wanted to have
 
10:36    15       one like them.
 
10:36    16            And, oh, by the way, yes, the mother was a
 
10:36    17       teenage parent, too; and, yes, they were all on
 
10:36    18       welfare, and that cycle was continuing.
 
10:36    19            And as a state, I think, that what we do is
 
10:36    20       look as hard as we can, yet how do we break this
 
10:37    21       cycle, and how do we provide programs and do the
 
10:37    22       kind of things that we need to do here, and then
 
10:37    23       get them hopefully in vocational programs; or if
 
10:37    24       it's possible to maintain the tracks in the
 
10:37    25       traditional track of school, get them in
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              34
 
10:37     1       education so that they can move on and not be
 
10:37     2       wards of the state.
 
10:37     3            Here are recommendations -- referenced
 
10:37     4       programs for parenting -- pregnant and parenting
 
10:37     5       teenagers.
 
10:37     6            I'd now like to move to legal issues.
 
10:37     7       This -- this is sort of a soapbox the Council
 
10:37     8       had -- very hard to try to keep me off of.  I'd
 
10:38     9       like to invite your attention to page -- I said
 
10:38    10       33.  And I think I have that on the wrong page.
 
10:38    11            I'm sorry, page 36, please.  Page 36.
 
10:38    12            I have a hard time understanding -- and I'm
 
10:38    13       an Army officer and I'm armor and tank corps and
 
10:38    14       all that, and I'm still active duty, and been to
 
10:38    15       Vietnam, and 29 years and -- citizen of Florida,
 
         16       Florida A&M University graduate, and
 
10:38    17       Florida State, and all that stuff.
 
10:38    18            And I have problems understanding why we
 
10:38    19       ought to have thirty-nine year old men,
 
10:38    20       twenty-nine year old men, forty year old men
 
10:38    21       having sex with eight, ten, eleven year old
 
10:38    22       girls, and nothing happening to them.
 
10:38    23            I think that it's something that our state
 
10:38    24       ought to act on, because it just, in my opinion,
 
10:38    25       doesn't make sense that we should continue to
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              35
 
10:38     1       let that occur in our state and in our society.
 
10:39     2            On page 36, it says that any person who has
 
10:39     3       unlawful carnal intercourse with any unmarried
 
          4       person of previous chaste character, who at the
 
10:39     5       time of same intercourse is under the age of
 
10:39     6       eighteen.
 
10:39     7            I invite your attention to the words of
 
          8       previous chaste condition.  What in the world
 
10:39     9       does that have to do with an old person, a
 
10:39    10       person who is majority, a person who is
 
10:39    11       twenty-nine, who's thirty, who's forty, having
 
10:39    12       sex with a ten year old, eleven year old
 
10:39    13       individual.
 
10:39    14            The stories are -- are there, it is still
 
10:39    15       happening in our state.  The age of people who
 
10:39    16       are having sex with many of the young girls in
 
10:39    17       our state by far exceed the age of the girls
 
10:39    18       that are impregnated.
 
10:40    19            Most of the pregnant -- most of the young
 
10:40    20       girls in our state who are pregnant or get
 
10:40    21       pregnant are not pregnant by their peers.  It is
 
10:40    22       not by other high school age or other teenage
 
10:40    23       persons who are of their age.
 
10:40    24            This is the recommendation that we have to
 
10:40    25       you reference the legal issues.  We would ask
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              36
 
10:40     1       you to please take a look at this statute, to
 
10:40     2       look at more forcefully prosecuting statutory
 
10:40     3       rape issues, and see what we can do to turn
 
10:40     4       around this issue of teenage pregnancy in our
 
10:40     5       state.
 
10:40     6            And finally, there is a number of
 
10:40     7       appendices that are in the report.  We would
 
10:40     8       invite you to please look at it, have members of
 
10:40     9       your staff to look at it.  And we feel that this
 
10:40    10       report can make a difference in the state of
 
10:41    11       Florida if it's looked at, and if we work on
 
10:41    12       some of the recommendations in those areas where
 
10:41    13       you're able to make a difference.
 
10:41    14            The final point that I said I would cover
 
10:41    15       with you today was one of asking for your
 
10:41    16       continuance of the council that I'm on.  I am
 
10:41    17       appointed to this council, as are the other
 
10:41    18       members, by Commissioner Brogan.  The very title
 
10:41    19       of the council says for the Education of Women
 
10:41    20       and Girls.
 
10:41    21            We're moving to a block grant environment.
 
10:41    22       We feel that we should move to an environment
 
10:41    23       where we are interested not only in women and
 
10:41    24       girls, but for all of the citizens of the state
 
10:41    25       of Florida where we're interested in gender and
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              37
 
10:41     1       equity issues for the whole state of Florida.
 
10:41     2       And with the end of Perkins, we beseech you to
 
10:41     3       appoint a council like this, even if it's a new
 
10:41     4       council, doesn't have to be this council.
 
10:42     5            This council is well constituted, it is
 
10:42     6       across the state in terms of its representation,
 
10:42     7       it is across a number of business and interests
 
10:42     8       in its representation, it has ethnic background
 
10:42     9       across the entirety of our state.
 
10:42    10            But we believe that you should have and
 
10:42    11       need a council like this to come to you and
 
10:42    12       bring advice, to visit the state and hear people
 
10:42    13       throughout the state of Florida on the equity
 
10:42    14       and fairness issues that approach you as a
 
         15       state.
 
10:42    16            How it would be funded, we're presently
 
10:42    17       funded out of the Commission of Education.  We
 
10:42    18       would hope that we could continue there.  But in
 
10:42    19       whatever way or means you decided to fund a
 
10:42    20       council that would be able to speak to the
 
10:42    21       equity and gender issues of this state, we would
 
10:42    22       encourage you to do so.
 
10:42    23            Subject to your questions, that completes
 
10:42    24       my presentation.
 
10:42    25            COMMISSIONER BROGAN:  Governor --
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              38
 
10:42     1            GOVERNOR CHILES:  Thank you, sir.
 
10:42     2            COMMISSIONER BROGAN:  -- on behalf of the
 
10:42     3       State Board of Education, I would just like to
 
10:43     4       thank Colonel Joe, and all the members of the
 
10:43     5       Commission for working so hard; and as you can
 
10:43     6       see, working so diligently on a variety of
 
10:43     7       important issues.
 
10:43     8            It is I think somewhat redundant to say
 
10:43     9       that we are all aware of the financial burden
 
10:43    10       that comes about for all of us when -- when
 
10:43    11       teenagers are engaged in these kinds of
 
10:43    12       activities.  We also recognize even more so the
 
10:43    13       burden that it places on the individuals trying
 
10:43    14       to seek the American dream, and lead the
 
10:43    15       American dream, when they start so early on with
 
10:43    16       the challenges that they face in these
 
10:43    17       situations.
 
10:43    18            And we know it's a pressure that in many
 
10:43    19       ways has been relegated to schools, in my humble
 
10:43    20       opinion, because many of our communities are not
 
10:43    21       addressing the problem the way they should and
 
10:43    22       turning to our schools for all of the answers to
 
10:43    23       some of society's greatest problems in the
 
10:43    24       limited time and the limited -- with the limited
 
10:43    25       resources that we have available.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              39
 
10:43     1            Most importantly to me -- because,
 
10:44     2       of course, I've written many reports such as
 
10:44     3       this -- but I think within this report, there's
 
10:44     4       some very, very important information that's
 
10:44     5       alluded to by Colonel Joe, and that I was
 
10:44     6       fascinated with, and yet very, very upset
 
10:44     7       about.
 
10:44     8            And if you did, as I did, read through the
 
10:44     9       document, you see such bulletins on page 17
 
10:44    10       where it says -- and I'm reiterating some of
 
10:44    11       what Colonel Joe said -- men older than
 
10:44    12       high school age account for 77 percent of all
 
10:44    13       births among girls of high school age sixteen to
 
10:44    14       eighteen.  That's a staggering thought.
 
10:44    15            Because we get so stereotypically minded
 
10:44    16       and think that the vast majority of teenage
 
10:44    17       births are as a result of teenagers having
 
10:44    18       premarital sex, and then you see a statistic
 
10:44    19       like that which points out something so glaring,
 
10:44    20       that older men are involved in these kinds of
 
10:44    21       illegal --
 
10:44    22            And I really appreciate your pointing that
 
10:44    23       out.
 
10:44    24            -- patently illegal activities.  And more
 
10:45    25       often than not, without any sort of intervention
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              40
 
10:45     1       from -- from the system.
 
10:45     2            You also see a bullet there that says
 
10:45     3       two-thirds of the teenagers who give birth
 
10:45     4       provided no information about the father on the
 
10:45     5       birth certificate.
 
10:45     6            COLONEL JOE:  That's right.
 
10:45     7            COMMISSIONER BROGAN:  And I would suggest
 
10:45     8       that's a national trend that we're seeing.
 
10:45     9       I think what it does is create -- it's a very
 
10:45    10       sad classification within -- within the male
 
10:45    11       ranks that suggest that it's easy to be involved
 
10:45    12       in conception, it's another thing to actually
 
10:45    13       father a child.
 
10:45    14            And in my opinion -- and I'm sure that of
 
10:45    15       the members of the State Board -- father means
 
10:45    16       far more than just being --
 
10:45    17            COLONEL JOE:  That's correct.
 
10:45    18            COMMISSIONER BROGAN:  -- being involved in
 
10:45    19       the actual conception of that child.
 
10:45    20            And so I think it's a sad commentary when
 
10:45    21       we see so many of our youngsters involved in
 
10:45    22       these activities with older men, number one, who
 
10:45    23       in my opinion are just absolutely engaged in a
 
10:45    24       willful criminal act by taking advantage of a
 
10:45    25       vulnerable young person.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              41
 
10:45     1            And I also believe that as we continue to
 
10:46     2       look at our entire system of welfare and -- and
 
10:46     3       how we're trying to help many of these teenagers
 
10:46     4       in this situation, we don't ever forget the fact
 
10:46     5       that two people have to be involved in
 
10:46     6       conception, and that I think we have been giving
 
10:46     7       a free ride to too many young men, and men who
 
10:46     8       are older over the years to become involved in
 
10:46     9       conception with absolutely no responsibility to
 
10:46    10       the actual fathering of those children.
 
10:46    11            Nationwide, the percentages of unwed
 
10:46    12       mothers are growing dramatically and
 
10:46    13       shockingly.  And I think a part of that is the
 
10:46    14       fact that men, whether they're young or old
 
10:46    15       enough to know better, are not forced to take
 
10:46    16       the responsibility for anything other than the
 
10:46    17       conception of these children, and I think it
 
10:46    18       makes a sad commentary about where our society
 
10:46    19       is headed.
 
10:46    20            And we really want to thank Colonel Joe and
 
10:47    21       the members of the Commission.  They come forth
 
10:47    22       annually with a number of statistical pieces
 
10:47    23       that have to do with girls and women.  This year
 
10:47    24       I think their report is important for many of
 
10:47    25       us.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              42
 
10:47     1            And I think again, and I'll wrap up by
 
10:47     2       saying, we've got to constantly remind everyone
 
10:47     3       that the education of youngsters transcends the
 
10:47     4       classroom and the school campus.  It is a family
 
10:47     5       and a community activity as well.
 
10:47     6            And personal and individual responsibility
 
10:47     7       is something that I think is ignored too much as
 
10:47     8       we approach the 21st Century.  But it's even
 
10:47     9       becoming more important as we approach the
 
10:47    10       21st Century.  And it's something that we have
 
10:47    11       to return to, and that is suggesting that people
 
10:47    12       who break the rules have consequences that
 
10:47    13       should and must be paid, to send a clear message
 
10:47    14       to everyone that we simply cannot continue to
 
10:47    15       tolerate acts such as this in the future.
 
10:47    16            So, Colonel Joe, on behalf of all of us,
 
10:47    17       thank you again very much.  It's I think an
 
10:47    18       important piece, and we appreciate the
 
10:47    19       Commission as well.
 
10:48    20            Thank you, Governor.
 
10:48    21            GOVERNOR CHILES:  Thank you, Colonel.
 
10:48    22            COLONEL JOE:  Yes.
 
10:48    23            TREASURER NELSON:  Just one quick question.
 
10:48    24            Colonel --
 
10:48    25            MR. BEDFORD:  Colonel.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              43
 
10:48     1            TREASURER NELSON:  -- does the intriguing,
 
10:48     2       yet shocking revelation of what Frank just
 
10:48     3       mentioned, three-quarters are -- of the fathers
 
10:48     4       are not high school --
 
10:48     5            COLONEL JOE:  Yes, sir.
 
10:48     6            TREASURER NELSON:  -- does that change in
 
10:48     7       any way the public receptivity to sexual
 
10:48     8       education in the schools?
 
10:48     9            COLONEL JOE:  I don't think it would change
 
10:48    10       the public receptivity.  It -- it's a community
 
10:48    11       issue, as you well know.  And so there are some
 
10:48    12       communities where it would be from one end of
 
10:48    13       the spectrum to the other.
 
10:48    14            Where it would go all the way from
 
10:48    15       involving the school, talking about the sexual
 
10:48    16       education, inviting -- providing contraceptives,
 
10:48    17       if necessary, to those communities where you
 
10:49    18       absolutely wouldn't talk about contraceptives at
 
10:49    19       all, but then would talk about the sexual
 
10:49    20       education piece in the classroom.
 
10:49    21            So I think that in those programs where we
 
10:49    22       found our research is that education about
 
10:49    23       sexuality, education about unsafe sex, which is
 
10:49    24       also a really -- these sexually transmitted
 
10:49    25       diseases -- and I didn't have time to go through
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              44
 
10:49     1       all that -- is also a real threat to our society
 
10:49     2       and to our state.  So we also have to try to
 
10:49     3       educate these teens on how to have safe sexual
 
10:49     4       activities, if they're going to have them, is
 
10:49     5       something that we really need to do.
 
10:49     6            I guess the frightening thing for me, and
 
10:49     7       what I -- what we wanted to relay is that here
 
10:49     8       is a good -- there's a large majority of this
 
10:49     9       activity that is going -- that is ongoing, and
 
10:49    10       it's illegal.
 
10:49    11            I mean, if we could stop the 77 percent of
 
10:49    12       older men and send this clear signal to them
 
10:49    13       that this is illegal, unwanted, and that we will
 
10:49    14       not tolerate this kind of behavior, we could
 
10:50    15       begin to see a decrease in the -- in the kind of
 
10:50    16       statistics and numbers that we have here.
 
10:50    17            COMMISSIONER BROGAN:  Governor, could I --
 
10:50    18            GOVERNOR CHILES:  Yes.
 
10:50    19            COMMISSIONER BROGAN:  -- could I address
 
10:50    20       that for just a minute, because it's an
 
10:50    21       important question.
 
10:50    22            I think that this information, because the
 
10:50    23       issue of -- of sexuality and sexual education,
 
10:50    24       of course, is going to be one that will be
 
10:50    25       debated well beyond all of us.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              45
 
10:50     1            But I think appropriate information is
 
10:50     2       important for students.  You know, it's
 
10:50     3       interesting how we will talk to kindergarten
 
10:50     4       students in programs such as Stranger Danger,
 
          5       where we tell them to beware --
 
10:50     6            (Commissioner Crawford exited the room.)
 
10:50     7            COMMISSIONER BROGAN:  -- of those who would
 
10:50     8       actually do them harm out there in the adult
 
10:50     9       population.
 
10:50    10            But as youngsters start to get a little
 
10:50    11       older -- and I still consider seventeen year
 
10:50    12       olds as youngsters -- we start to take a
 
10:50    13       different approach to things like that.  And in
 
10:50    14       my opinion, those who would prey on the
 
10:50    15       vulnerability of a child of sixteen, seventeen,
 
10:50    16       or less --
 
10:50    17            COLONEL JOE:  We've got ten year olds,
 
10:50    18       eight year olds, eleven year olds.  It's just --
 
10:50    19            COMMISSIONER BROGAN:  -- are just as
 
10:50    20       dangerous to those youngsters as a potential
 
10:51    21       child molester in a park is to a five or six
 
10:51    22       year old, for different reasons, but with
 
10:51    23       shockingly the same kind of atrocities being
 
10:51    24       perpetrated out there.
 
10:51    25            I would think that a group that probably
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              46
 
10:51     1       should be aware of information such as this are
 
10:51     2       the students themselves, that they do need to be
 
10:51     3       wary of those who would prey on them, even if
 
10:51     4       they are seventeen, because it's possible to be
 
10:51     5       preyed upon by an older individual, that you've
 
10:51     6       got to be aware.
 
10:51     7            And a statistic such as that, which is so
 
10:51     8       frightening and so alarming I think would be
 
10:51     9       equally frightening and alarming to young people
 
10:51    10       to know, because they have the same
 
10:51    11       stereotypical --
 
10:51    12            (Commissioner Crawford entered the room.)
 
10:51    13            COMMISSIONER BROGAN:  -- view of teen
 
10:51    14       pregnancy that most teen pregnancy occurs with
 
10:51    15       other teenagers, to hear that they are
 
10:51    16       absolutely in peril when it comes to dealing
 
10:51    17       with older -- older adults who are actually
 
10:51    18       violating the law when they're engaged in these
 
10:51    19       activities.
 
10:51    20            COLONEL JOE:  And the education piece is so
 
10:51    21       important, again, because you have to remember
 
10:52    22       that some of this is family abuse.  It's some --
 
10:52    23       some of this occurs where young girls are in
 
10:52    24       families, and family members involved in sexual
 
10:52    25       abuse within the family.  And they need to be
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              47
 
10:52     1       taught self-esteem and coping techniques for how
 
10:52     2       to deal with that as well.
 
10:52     3            GOVERNOR CHILES:  Thank you, sir.
 
10:52     4            Did we adopt the --
 
10:52     5            ATTORNEY GENERAL BUTTERWORTH:  Is there a
 
10:52     6       motion to approve?
 
10:52     7            COMMISSIONER BROGAN:  I'll move to accept
 
10:52     8       the --
 
10:52     9            GOVERNOR CHILES:  Moved and second to
 
10:52    10       receive the report.
 
10:52    11            As many as favor, signify by saying aye.
 
10:52    12            Opposed, no.
 
10:52    13            Subject -- item 4.
 
10:52    14            MR. BEDFORD:  Item 4 is a repeal of 6A,
 
10:52    15       dash, 10.018, Time Shortened Educational
 
10:52    16       Programs.
 
10:52    17            COMMISSIONER BROGAN:  Move approval.
 
10:52    18            SECRETARY MORTHAM:  Second.
 
10:52    19            GOVERNOR CHILES:  Moved and seconded.
 
10:52    20            Without objection, it's approved.
 
10:52    21            MR. BEDFORD:  Items 5 through, and
 
10:52    22       including 14, we request deferral.
 
10:52    23            COMMISSIONER BROGAN:  Governor, I would
 
10:52    24       request that deferral.  And also to make
 
10:52    25       mention, lest you think this is becoming too
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              48
 
10:52     1       redundant, we are having some difficulty
 
10:53     2       reaching agreement with the Joint Administrative
 
10:53     3       Procedures Committee on some of these rules.
 
10:53     4            I recognize that these are dotted line
 
10:53     5       rules on my organizational chart and don't fall
 
10:53     6       directly beneath my purview.  But nevertheless,
 
10:53     7       I'm responsible for bringing them to you.
 
10:53     8            And we're trying to work these through with
 
10:53     9       the Joint Administrative Procedures Committee to
 
10:53    10       their satisfaction, as well as the satisfaction
 
10:53    11       of the group asking to promulgate the rule
 
10:53    12       changes.
 
10:53    13            So as soon as we arrive at that conclusion,
 
10:53    14       we will bring them forward.  I'm -- I'm a bit
 
10:53    15       concerned on this issue philosophically,
 
10:53    16       however.
 
10:53    17            I know, as you -- all the other agency
 
10:53    18       heads and the members of the Cabinet, I'm going
 
10:53    19       to be coming forward with volumes of rules for
 
10:53    20       repeal and amendment, et cetera, based on all of
 
10:53    21       our philosophies.  And we're trying to work
 
10:53    22       through some philosophical issues which abs--
 
10:53    23       hopefully we'll be able to do that soon and
 
10:53    24       bring these rules forward.
 
10:53    25            So we would like to defer this issue today.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              49
 
10:53     1            GOVERNOR CHILES:  Motion to defer.
 
10:53     2            Is there a second?
 
10:54     3            SECRETARY MORTHAM:  Second.
 
10:54     4            GOVERNOR CHILES:  Second.
 
10:54     5            Without objection, it's deferred.
 
10:54     6            MR. BEDFORD:  Item 15, appointment to the
 
10:54     7       Education Practices Commission by
 
10:54     8       Commissioner Brogan.
 
10:54     9            Appointee:  Robert G. Walker as
 
10:54    10       Superintendent, September 30th, 1999; appointee,
 
10:54    11       Ronald S. Wright, Administrator, September 30th,
 
10:54    12       1999; appointee, Robert E. Burton, former
 
10:54    13       school board member, September 30th, 1999;
 
10:54    14       Jordon J. Corbett, former school board member,
 
10:54    15       September 30th, 1998; Patricia Schmoyer,
 
10:54    16       teacher, September 30th, 1999; and
 
10:54    17       Margaret A. Wolfe, teacher, September 30th,
 
10:54    18       1999.
 
10:54    19            COMMISSIONER BROGAN:  Move approval,
 
10:54    20       Governor.
 
10:54    21            SECRETARY MORTHAM:  Second.
 
10:54    22            GOVERNOR CHILES:  Moved and seconded.
 
10:54    23            Without objection, approved.
 
10:54    24            MR. BEDFORD:  Item 16, appointments to the
 
10:54    25       Education Standards Commission by
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              50
 
10:54     1       Commissioner Brogan.
 
10:54     2            Appointee:  Bobbie D' Alessandro,
 
10:54     3       Superintendent, September 30th, 1996;
 
10:54     4       Eloise Lisch, school board member,
 
10:55     5       September 30th, 1998; Barbara Sharpe,
 
10:55     6       school board member, September 30th, 1996;
 
10:55     7       William L. Proctor representing higher
 
10:55     8       education, September 30th, 1998; Kathy Johnson,
 
10:55     9       higher education, September 30th, 1998;
 
10:55    10       Diane Farmer, teacher, September 30th, 1998;
 
10:55    11       Mattie Rodriquez-Walling, teacher,
 
10:55    12       September 30th, 1998; James W. Pippen, teacher,
 
10:55    13       September 30th, 1998.
 
10:55    14            We wish to withdraw the name of
 
10:55    15       Patricia Carson, teacher.  She has been promoted
 
10:55    16       to an administrator and can no longer serve in
 
10:55    17       that position as a teacher.
 
10:55    18            Reappointee would be Rebecca McBride,
 
10:55    19       principal; and Mary Lopez, teacher, with terms
 
10:55    20       September 30th, 1998.
 
10:55    21            COMMISSIONER BROGAN:  Governor, I'd move
 
10:55    22       approval with special notation that we will
 
10:55    23       withdraw Patricia Carson, and come back with --
 
10:55    24       with a name as soon as we have one available to
 
10:56    25       the members of the State Board of Education.
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              51
 
10:56     1            SECRETARY MORTHAM:  Second.
 
10:56     2            GOVERNOR CHILES:  Moved and seconded.
 
10:56     3            Without objection, it's approved.
 
10:56     4            MR. BEDFORD:  Item 17,
 
10:56     5       State University System Information Technology
 
10:56     6       Resource Procurement Advisory Council report for
 
10:56     7       the fiscal year 1994-95.
 
10:56     8            You have in your backup packet the three
 
10:56     9       actions taken by that council, and it is a
 
10:56    10       four-information item.
 
10:56    11            COMMISSIONER BROGAN:  Do we need a motion
 
10:56    12       on for information, Governor?
 
         13            GOVERNOR CHILES:  Yeah, I think we do need
 
10:56    14       a motion.
 
10:56    15            COMMISSIONER BROGAN:  I move we approve.
 
10:56    16            COMMISSIONER CRAWFORD:  Second.
 
10:56    17            GOVERNOR CHILES:  Moved and seconded.
 
10:56    18            Without objection, it's approved.
 
10:56    19            MR. BEDFORD:  Item 18 is to repeal/revise
 
10:56    20       rules of Chapter 6C-6, Students.  This would be
 
10:56    21       State University System rules.
 
10:56    22            COMMISSIONER BROGAN:  Move approval.
 
10:56    23            SECRETARY MORTHAM:  Move approval.
 
10:56    24            GOVERNOR CHILES:  Moved and seconded.
 
10:56    25            Without objection, it's approved.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              52
 
10:56     1            MR. BEDFORD:  Item 19, to repeal rules in
 
10:56     2       chapter 6C-8, Educational Delivery.
 
10:56     3            COMMISSIONER BROGAN:  Move approval.
 
10:56     4            SECRETARY MORTHAM:  Second.
 
10:56     5            GOVERNOR CHILES:  Moved and seconded.
 
10:57     6            Without objection, it's approved.
 
10:57     7            MR. BEDFORD:  Item 20, to repeal or revise
 
10:57     8       rules in Chapter 6C, dash, 10, Miscellaneous
 
10:57     9       Provisions.
 
10:57    10            COMMISSIONER BROGAN:  Move approval.
 
10:57    11            SECRETARY MORTHAM:  Second.
 
10:57    12            GOVERNOR CHILES:  Moved and seconded.
 
10:57    13            Without objection, it's approved.
 
10:57    14            MR. BEDFORD:  Item 21, revise Rule 6C,
 
10:57    15       dash, 10.001, Self Insurance Programs.
 
10:57    16            COMMISSIONER BROGAN:  Move approval.
 
10:57    17            SECRETARY MORTHAM:  Second.
 
10:57    18            GOVERNOR CHILES:  Moved and seconded.
 
10:57    19            Without objection, it's approved.
 
10:57    20            MR. BEDFORD:  Item 22, to revise Rule
 
10:57    21       6C-10, dash, 013, Certification of Residency for
 
10:57    22       Appropriated Program.
 
10:57    23            COMMISSIONER BROGAN:  Move approval.
 
10:57    24            SECRETARY MORTHAM:  Second.
 
10:57    25            GOVERNOR CHILES:  Moved and --
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                             STATE BOARD OF EDUCATION
                                 October 24, 1995
                                                              53
 
10:57     1            SECRETARY MORTHAM:  Second.
 
10:57     2            GOVERNOR CHILES:  -- seconded.
 
10:57     3            Without objection, it's approved.
 
10:57     4            MR. BEDFORD:  Thank you.
 
          5            (The State Board of Education Agenda was
 
          6       concluded.)
 
          7                             *
 
          8
 
          9
 
         10
 
         11
 
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         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                            ADMINISTRATION COMMISSION
                                 October 24, 1995
                                                              54
 
10:57     1            GOVERNOR CHILES:
 
10:57     2       Administrative Commission.
 
10:57     3            DR. BRADLEY:  Item number 1, recommend
 
10:57     4       approval of the minutes of the meeting held
 
10:57     5       October 12th, 1995.
 
10:57     6            COMMISSIONER BROGAN:  So move, Governor.
 
10:57     7            SECRETARY MORTHAM:  Second.
 
10:57     8            GOVERNOR CHILES:  Moved and seconded.
 
10:57     9            Without objection, minutes are approved.
 
10:57    10            DR. BRADLEY:  Item 2 A., recommend the
 
10:57    11       transfer of general revenue appropriations from
 
10:58    12       administered funds to the Department of Banking
 
10:58    13       and Finance.
 
10:58    14            COMMISSIONER BROGAN:  Move approval.
 
10:58    15            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:58    16            GOVERNOR CHILES:  Moved and seconded.
 
10:58    17            Without objection, it's approved.
 
10:58    18            DR. BRADLEY:  Item 2 B., recommend the
 
10:58    19       transfer of general revenue appropriations in
 
10:58    20       the Department of Banking and Finance.
 
10:58    21            COMMISSIONER BROGAN:  Move approval.
 
10:58    22            SECRETARY MORTHAM:  Second.
 
10:58    23            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:58    24            GOVERNOR CHILES:  Moved and seconded.
 
10:58    25            Without objection, it's approved.
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                            ADMINISTRATION COMMISSION
                                 October 24, 1995
                                                              55
 
10:58     1            DR. BRADLEY:  Item number 3, recommend the
 
10:58     2       establishment of position in excess of the
 
10:58     3       number fixed by the Legislature in the
 
10:58     4       Department of Environmental Protection.
 
10:58     5            SECRETARY MORTHAM:  Move approval.
 
10:58     6            COMMISSIONER BROGAN:  Second.
 
10:58     7            COMPTROLLER MILLIGAN:  Second.
 
10:58     8            GOVERNOR CHILES:  Moved and seconded.
 
10:58     9            Without objection, it's approved.
 
10:58    10            DR. BRADLEY:  Item number 4, recommend the
 
10:58    11       transfer of general revenue appropriations in
 
10:58    12       the Department of Health and Rehabilitative
 
10:58    13       Services.
 
10:58    14            SECRETARY MORTHAM:  Move approval.
 
10:58    15            COMMISSIONER BROGAN:  Second.
 
10:58    16            GOVERNOR CHILES:  Moved and seconded.
 
10:58    17            Without objection, it's approved.
 
10:58    18            DR. BRADLEY:  Item number 5, recommend the
 
10:58    19       transfer of general revenue appropriations in
 
10:58    20       the Florida Department of Law Enforcement.
 
10:58    21            COMMISSIONER BROGAN:  Move approval.
 
10:58    22            SECRETARY MORTHAM:  Second.
 
10:58    23            GOVERNOR CHILES:  Moved and seconded.
 
10:58    24            Without objection, it's approved.
 
10:58    25            DR. BRADLEY:  Item number 6, recommend the
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10:58     1       transfer of fixed capital outlay appropriations.
 
10:58     2            COMMISSIONER BROGAN:  Move approval.
 
10:59     3            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:59     4            GOVERNOR CHILES:  Moved and seconded.
 
10:59     5            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:59     6            GOVERNOR CHILES:  Moved and seconded.
 
10:59     7            Without objection, it's approved.
 
          8            (The Administration Commission Agenda was
 
          9       concluded.)
 
         10                             *
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
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10:59     1            GOVERNOR CHILES:  FLAWAC.
 
10:59     2            DR. BRADLEY:  Item number 1, request
 
10:59     3       approval of the minutes of September 14th, 1995,
 
10:59     4       Commission meeting.
 
10:59     5            COMMISSIONER BROGAN:  So move.
 
10:59     6            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
10:59     7            GOVERNOR CHILES:  Moved and seconded.
 
10:59     8            Without objection, it's approved.
 
10:59     9            DR. BRADLEY:  Item number 2 is a request --
 
10:59    10       the authorization to enter a draft final order.
 
10:59    11       We have a number of individuals here to speak on
 
10:59    12       this issue.
 
10:59    13            David Theriaque from Edgewater Beach Owners
 
10:59    14       Association; Marti Chumbler, KMP, Ltd.;
 
         15       David Jordan from DCA; and also available to
 
         16       speak if you have any questions is George Miller
 
         17       from Walton County --
 
         18            GOVERNOR CHILES:  Do you have some kind of
 
         19       time frame?
 
         20            DR. BRADLEY:  Five minutes?
 
         21            The first person would be David Theriaque
 
         22       from the Edgewater Beach Owners Association.
 
         23            MR. THERIAQUE:  Good morning.
 
         24            My name is David Theriaque, I represent the
 
         25       Association.
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          1            Before I turn to our arguments regarding
 
          2       the recommended order, I'd like to briefly
 
          3       address our motion to abate, which we filed
 
          4       along with our exceptions to the recommended
 
          5       order.
 
          6            The basis for our rec-- our motion to abate
 
          7       is that the order before you and the 1993
 
          8       resolution, which is the crux of that
 
          9       recommended order from the hearing officer is no
 
         10       longer the project.
 
         11            In 1995, Walton County approved another
 
         12       resolution which superseded the 1993 resolution,
 
         13       which forms a basis of the case that's before
 
         14       you.
 
         15            In the 1993 resolution, the -- excuse me --
 
         16       the 1995 resolution, Walton County changed the
 
         17       configuration, at the request of KPM, and
 
         18       changed it from the 19 town homes and the
 
         19       282 units to a 24-story condominium unit.
 
         20            And there's a case pending before DOAH at
 
         21       this point challenging the '95 resolution.
 
         22       Well, after the '95 resolution was adopted, KPM,
 
         23       one of the defendants in this case, sold the
 
         24       property to Paul Freeman of the Grand Dunes.  So
 
         25       the defendant that's before you in the '93 case
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          1       no longer even owns the property.
 
          2            And Mr. Freeman has subsequently filed
 
          3       another notice of proposed change to change the
 
          4       project again.  That was just filed the
 
          5       beginning of October.
 
          6            So essentially you're hearing a case today
 
          7       that nobody has any intention to build, and one
 
          8       of the defendants is no longer even involved in
 
          9       the case any more.
 
         10            You will hear argument that it's crucial
 
         11       that you resolve this case because one of the
 
         12       issues is whether or not you can resolve --
 
         13       whether you can revive a development order that
 
         14       has expired.
 
         15            However, the issues that you will not be
 
         16       able to resolve in the other cases which will
 
         17       continue on are standing questions, are
 
         18       questions about what happens after a development
 
         19       order is revived, whether or not it has to
 
         20       comply with the current Comprehensive Plan and
 
         21       the current regulations.
 
         22            And we would contend that those are issues
 
         23       that should be addressed at the same time as the
 
         24       issue of whether or not the development order
 
         25       could be revived.  And we would request that you
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          1       abate the 1993 proceeding until the 1995 case is
 
          2       resolved.
 
          3            As a further point, the 1995 case, which
 
          4       was scheduled for hearing in November, has been
 
          5       abated as well to allow the new owner to
 
          6       submit -- which they have another notice of
 
          7       proposed change for a different project.
 
          8            So that hearing officer is staying that
 
          9       case so we can get whatever the final project is
 
         10       going to be for the remainder of the Edgewater
 
         11       DRI.  Now, at this point, we simply don't know.
 
         12            Turning to our objections -- or exceptions
 
         13       to the recommended order.  I'll be very brief
 
         14       with this.
 
         15            On the merits, we contend quite simply that
 
         16       when a development order has an expiration date
 
         17       and the time passes, that it's dead.
 
         18       Section 380.06 provides the requirement that all
 
         19       development orders contain a termination date.
 
         20       There is no language in the statute whatsoever
 
         21       that states, well, it's only sort of dead, that
 
         22       you can take it back from the grave and breathe
 
         23       life into it six months, a year, two years,
 
         24       five years down the road.
 
         25            At the time that Walton County adopted this
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          1       resolution, section 380.06 did not have a
 
          2       termination requirement.  The County was ahead
 
          3       of itself, and actually required that a
 
          4       termination date be included in the resolution.
 
          5            The Florida Legislature in 1985,
 
          6       recognizing that we have these development
 
          7       orders that have no termination dates pending
 
          8       throughout the entire state, some have referred
 
          9       to them as dinosaurs, because they're vested
 
         10       from the current comprehensive plan.  They can
 
         11       build out without having to comply with current
 
         12       regs.  The Florida Legislature in 1985 amended
 
         13       380.06 to require a termination date so that at
 
         14       some point in time these things die.
 
         15            Regarding the standing, the hearing officer
 
         16       held that we did not have standing.  The
 
         17       association failed to quantify the impacts that
 
         18       would take place to its retention pond.
 
         19            I respectfully submit that that's an
 
         20       impossible burden.  The storm water retention
 
         21       plan submitted by KPM is not the final plan.
 
         22       And, indeed, the evidence was undisputed at the
 
         23       hearing that the groundwater model necessary to
 
         24       determine how their retention system was going
 
         25       to function was never performed.
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          1            In essence, the hearing officer would have
 
          2       us performing functions that the -- KPM itself
 
          3       had never performed.  And we are -- the
 
          4       Association was held to a burden of trying to
 
          5       prove something that it could never prove.
 
          6            The second basis for our standing is that
 
          7       it's also undisputed among DCA, among
 
          8       Walton County, by my clients, that my clients,
 
          9       which turn -- this is the half that was
 
         10       constructed, the half that's on my right.  This
 
         11       is the half that was never constructed.
 
         12            All parties agree that if my clients were
 
         13       to do any change to what's been constructed,
 
         14       that they still have to comply with the
 
         15       notification of proposed change requirements in
 
         16       the DRI statute, that they are still bound by
 
         17       those regulations.  And yet we are told --
 
         18            My 5 minutes are up?
 
         19            I'm told my 5 minutes are up.  If I can
 
         20       have one more minute, sir.
 
         21            Thank you.
 
         22            That was a quick 5 minutes.
 
         23            And yet we are --
 
         24            COMMISSIONER BROGAN:  Time flies when
 
         25       you're having fun, right?
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          1            MR. THERIAQUE:  And yet we are told that
 
          2       while we are bound by the regulations of the DRI
 
          3       statute, that we don't have standing, we don't
 
          4       have any of the -- the attributes of qualifying
 
          5       for being bound.
 
          6            And lastly, the public policy that's at
 
          7       issue here, this is a case of first impression.
 
          8       There is no case law.  This is an opportunity
 
          9       for you all to establish a state policy on
 
         10       issues of this nature.
 
         11            If Hurricane Opal has taught us anything,
 
         12       it should have taught us that low density
 
         13       development is what should occur on our
 
         14       beaches.  If this development order is revived,
 
         15       it revives 19 town homes and 282 condo units.
 
         16       If this development order is terminated, it
 
         17       allows for approximately 84 condo units.
 
         18            I would submit that for the state public
 
         19       policy, the Governor and Cabinet should take a
 
         20       position that we promote, wherever possible, the
 
         21       lowest density development on the beaches.
 
         22            Thank you.
 
         23            GOVERNOR CHILES:  Thank you.
 
         24            COMMISSIONER BROGAN:  Can I ask a question
 
         25       before he leaves the podium, Governor?
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          1            GOVERNOR CHILES:  Yes, sir.
 
          2            COMMISSIONER BROGAN:  How many units in
 
          3       Edgewater?
 
          4            MR. THERIAQUE:  One hundred and
 
          5       seventy-five.
 
          6            COMMISSIONER BROGAN:  Significantly --
 
          7            GOVERNOR CHILES:  How many units would have
 
          8       been there if the other side of the horseshoe
 
          9       had been completed?
 
         10            MS. CHUMBLER:  Three hundred and one.
 
         11            MR. THERIAQUE:  Three hundred and one.  If
 
         12       the other side had been completed, sir.
 
         13            GOVERNOR CHILES:  Total of 175 --
 
         14            MR. THERIAQUE:  And 301.
 
         15            GOVERNOR CHILES:  And 301.
 
         16            MR. THERIAQUE:  Yes, sir.
 
         17            MS. CHUMBLER:  Right.  For
 
         18       four seventy-six.
 
         19            MR. THERIAQUE:  For a total -- and that was
 
         20       back in 1982 when it was approved prior to the
 
         21       new comp plan.
 
         22            Thank you.
 
         23            DR. BRADLEY:  The next speaker is
 
         24       Marti Chumbler of KMP.
 
         25            MS. CHUMBLER:  Governor, members of the
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          1       Cabinet, I'm Marti Chumbler with the Carlton,
 
          2       Fields law firm here representing KPM, the
 
          3       developer.
 
          4            If I could, I'd like to respond to a couple
 
          5       of the things that Mr. Theriaque mentioned to
 
          6       you.
 
          7            First, he mentioned that the present owner
 
          8       of the property, my client's property, is no
 
          9       longer KPM.  That's not quite right.  KPM is
 
         10       still a part owner of this property due in large
 
         11       part to the cost of litigation.  This litigation
 
         12       has been going on since '93.
 
         13            KPM found it necessary to bring in a new
 
         14       partner to help finance the project.  And as a
 
         15       result of that, we now have a second partner who
 
         16       is now part owner of the property.  But KPM is
 
         17       still here, KPM is still present, and is still
 
         18       part owner of the property.
 
         19            Mr. Theriaque also spoke to you about the
 
         20       need for a motion to grant his motion to abate.
 
         21       I would suggest to you that that would not be
 
         22       appropriate.
 
         23            There have been a number of changes in this
 
         24       project through the years, beginning first with
 
         25       the project in '82 that would have had a total
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          1       of 476 units.
 
          2            In '93, my client came in and asked for a
 
          3       downsizing of their phases -- remaining phases
 
          4       of the project.  It would have been 301 units
 
          5       under the original plan.
 
          6            In the proposal that's -- or the resolution
 
          7       that's before you today, they would have
 
          8       downsized that to 286 units.
 
          9            Their -- their plan in '93, what you
 
         10       actually have before you today, would have
 
         11       consisted of 19 town homes on the beach side of
 
         12       the property here, with subsequent phases of
 
         13       high-rise condos back from the beach toward the
 
         14       rear of the property.
 
         15            And it -- before my client could come to
 
         16       the -- could build those subsequent phases, they
 
         17       would have had to go back to the county for
 
         18       additional approval.
 
         19            Unfortunately there -- even though this
 
         20       body originally dismissed the appeal challenging
 
         21       that '93 resolution, the District Court of
 
         22       Appeal reversed, there was a long delay because
 
         23       of that intervening period of two years, we're
 
         24       now back before you on a resolution that was
 
         25       first granted in 1993.
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          1            And the real estate market simply changed.
 
          2       The change that occurred between '93 -- the '93
 
          3       resolution and the '95 resolution simply
 
          4       reflects my clients looking at the real estate
 
          5       market in the area and realizing that what was
 
          6       marketable in '93 was no longer marketable in
 
          7       '95.
 
          8            And so they went to the County in '95 and
 
          9       asked for an amendment.  Now, that amendment is
 
         10       not final.  There was a resolution passed by the
 
         11       County, and -- in January of '95 -- excuse me --
 
         12       April of '95.  But the Edgewater Beach
 
         13       Condominium Association has challenged that in
 
         14       three separate forums, two court cases that are
 
         15       still pending, and one FLAWAC appeal that's
 
         16       still pending.
 
         17            So we don't have a '95 order yet.  We don't
 
         18       know if we'll ever have a '95 order.
 
         19            The second reason the project has changed,
 
         20       and I think that's most reflected in the
 
         21       amendment that now is pending before the County,
 
         22       has been an attempt by my client to negotiate
 
         23       with -- with Edgewater to try to downsize the
 
         24       project and make the project one that's more
 
         25       palletable to Edgewater.
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          1            The '95 order that's been approved by the
 
          2       County would have had 281 units in the
 
          3       subsequent phases.  The amendment that's now
 
          4       pending before the County would downsize that to
 
          5       178 units.
 
          6            So what we keep doing is going back to
 
          7       Edgewater, trying to come up with a project that
 
          8       would be more acceptable to them.  And yet still
 
          9       be a marketable project.
 
         10            Having this property means nothing to my
 
         11       client if they can't sell it, and if they can't
 
         12       find people who are willing to purchase units on
 
         13       this property.
 
         14            He also mentioned to you Opal and the need
 
         15       to have low density development on this
 
         16       property.  George Ralph Miller, the County
 
         17       Attorney is here, and he I think can tell you
 
         18       from firsthand inspection of the area that the
 
         19       projects that were harmed in this area were not
 
         20       the high density condominiums.  They did very
 
         21       well.  The new construction condominiums out
 
         22       there withstood Opal very well.  It was the low
 
         23       density, older construction that was harmed on
 
         24       these beachfronts.
 
         25            Now, to get you to what are the real merits
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          1       of this case, the hearing officer found that the
 
          2       Department of Community Affairs' long-standing
 
          3       policy that a local government can decide
 
          4       whether it wants to revive a development order
 
          5       is an appropriate policy.
 
          6            Mr. Jordan from the Department of Community
 
          7       Affairs is going to come and tell you why those
 
          8       are -- that is a good policy, and it's one that
 
          9       should be continued.
 
         10            What I want to tell you is what it means to
 
         11       my client if you make a decision contrary to
 
         12       that recommendation.
 
         13            My client went to the County in '92, right
 
         14       after they took possession of this property; and
 
         15       said, we've got a development order that's about
 
         16       to expire, what do we do?
 
         17            They were told, simply come to the
 
         18       Commission and ask for it to be extended.  They
 
         19       did that to the County Commission.
 
         20            Everything that my client has done since
 
         21       they took possession of this property has been
 
         22       at the express direction of either the county or
 
         23       the Department of Community Affairs.
 
         24            If my client had chosen to ignore
 
         25       directions they had gotten from governmental
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          1       entities, those who supposedly knew what they
 
          2       were doing, we could have had a project built.
 
          3            And instead, we decided to follow the
 
          4       rules.  And following the rules, we now find
 
          5       ourselves before you today saying, we don't
 
          6       really care whether you revive the development
 
          7       order or not, but if you decide not to, put us
 
          8       back where we were in 1992, let us follow those
 
          9       rules, and build a project.
 
         10            Thank you.
 
         11            Any questions before I --
 
         12            TREASURER NELSON:  Yes.
 
         13            GOVERNOR CHILES:  Yes, sir.
 
         14            TREASURER NELSON:  The existing building
 
         15       that's shown in that graphic right there --
 
         16            MS. CHUMBLER:  Yes, sir.
 
         17            TREASURER NELSON:  -- how far is the most
 
         18       seaward portion of that building from the
 
         19       existing Gulf?
 
         20            MS. CHUMBLER:  I don't know the footage.
 
         21       But I can tell you that when this original
 
         22       project was built, it was to be built right out
 
         23       to the then existing Coastal Construction Line.
 
         24            Since that time, the Coastal Construction
 
         25       Line has been backed up.  The existing building
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          1       extends beyond that Coastal Construction Line,
 
          2       as would have the subsequent phases.
 
          3            Now, each of the -- the amendments that my
 
          4       client has sought to make this have been behind
 
          5       the new Coastal Construction Line.
 
          6            TREASURER NELSON:  All right.  But --
 
          7            MS. CHUMBLER:  I can't give you exact
 
          8       footage or --
 
          9            TREASURER NELSON:  But the question is, and
 
         10       it sparked my curiosity, because I've flown over
 
         11       that building twice in the days right after the
 
         12       hurricane, and I'd like to know how close is the
 
         13       end of that building to the water.
 
         14            MS. CHUMBLER:  Mr. --
 
         15            TREASURER NELSON:  From my perch in the
 
         16       helicopter, it looked very close.
 
         17            MS. CHUMBLER:  Mr. Miller may be able to
 
         18       address that.  I don't have --
 
         19            TREASURER NELSON:  Do we have an answer?
 
         20            MR. MILLER:  No, sir, I don't know.  I
 
         21       would say 200 feet or more.
 
         22            (Governor Chiles exited the room.)
 
         23            TREASURER NELSON:  That's not what I saw.
 
         24            MR. MILLER:  It's quite a distance after
 
         25       Opal, I assure you.  The shoreline has been
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          1       extended, the depth of it.
 
          2            TREASURER NELSON:  Counselor, where is the
 
          3       Coastal Control Line now?
 
          4            MS. CHUMBLER:  The Coastal Construction --
 
          5       I confess, I have not been there since the
 
          6       storm.
 
          7            There was a line of dunes here, and the
 
          8       Coastal Construction Line was immediately behind
 
          9       the pre-storm dune line.
 
         10            TREASURER NELSON:  All right.  Show me on
 
         11       the existing building where the --
 
         12            MS. CHUMBLER:  Well --
 
         13            TREASURER NELSON:  -- Coastal Line would
 
         14       be.
 
         15            MS. CHUMBLER:  Commissioner Nelson, perhaps
 
         16       the easiest -- I don't know if you have a copy
 
         17       of the diagram that we handed out to the aides,
 
         18       I'd be glad to provide you with a copy -- on --
 
         19       in fact, I'll let everyone have a copy if they'd
 
         20       like.
 
         21            What I'm handing you is several diagrams of
 
         22       some of the various permutations this project
 
         23       has gone through.
 
         24            If you turn to page 2 of that, you'll see a
 
         25       dashed line there that indicates what the
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          1       original Coastal Construction Line was.
 
          2            And then if you look at the fourth page,
 
          3       you'll see two dashed lines across the
 
          4       property.  The first that's -- the dashes are
 
          5       slightly at greater distance from each other is
 
          6       the original line.  The second is the present
 
          7       Coastal Construction Line.
 
          8            Does that help you?
 
          9            TREASURER NELSON:  Yeah.  It sure does.
 
         10       That answers my question.
 
         11            MS. CHUMBLER:  Okay.
 
         12            SECRETARY MORTHAM:  Any other questions?
 
         13            COMMISSIONER BROGAN:  Before I ask, we
 
         14       still have another speaker, or speakers?
 
         15            I'll wait.
 
         16            DR. BRADLEY:  The third speaker is
 
         17       David Jordan of DCA.
 
         18            (Governor Chiles entered the room.)
 
         19            MR. JORDAN:  Good morning.  The Department
 
         20       intervened in this case, because this is the
 
         21       first time that the issue of how to deal with an
 
         22       expired DRI and the revived DRI has been
 
         23       presented to a hearing officer and to this
 
         24       Commission.
 
         25            The Department has dealt with this issue
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          1       with many expired DRI development orders over
 
          2       the years, involving many different kinds and
 
          3       sizes of DRIs, ranging from a relatively small
 
          4       shopping mall that was almost completed when the
 
          5       development order expired, all the way up to a
 
          6       very large DRI covering many acres with
 
          7       development scattered all across the landscape
 
          8       covered by the DRI development order.
 
          9            And we were trying to ask -- we asked the
 
         10       hearing officer to approve our policy as being
 
         11       something that made sense not only in its regard
 
         12       to this DRI, but in regards to having -- as it
 
         13       would be applied to DRIs in general throughout
 
         14       the years.
 
         15            The hearing officer did accept our policy,
 
         16       and we think it makes sense, especially in light
 
         17       of the very detailed provisions of the statute
 
         18       regarding how to amend a DRI development order
 
         19       and how to abandon a DRI development order, both
 
         20       of which tell you to take into account the
 
         21       impacts of the change in approving either the
 
         22       abandonment or the amendment.
 
         23            The Department would ask the Commission to
 
         24       approve your propos-- your staff's proposed
 
         25       final order, which adopts the DOAH recommended
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          1       order.
 
          2            And I'd be glad to answer any questions
 
          3       that you might have.
 
          4            GOVERNOR CHILES:  Other questions.
 
          5            MR. JORDAN:  Thank you.
 
          6            DR. BRADLEY:  That's all the speakers that
 
          7       were scheduled to speak.
 
          8            George Miller of Walton County is here if
 
          9       you have any questions.
 
         10            GOVERNOR CHILES:  Well, I think we ought to
 
         11       hear from George Miller.
 
         12            MR. MILLER:  Thank you, Governor.  That's
 
         13       about it.
 
         14            As usual, you want to make sure I'm earning
 
         15       my fee.
 
         16            GOVERNOR CHILES:  I think that's about
 
         17       enough now.
 
         18            MR. MILLER:  Again, as you -- I'll be happy
 
         19       to answer any questions from the County's point
 
         20       of view.  We support, of course, the
 
         21       hearing officer's recommended order.
 
         22            TREASURER NELSON:  I do want to compliment
 
         23       the County and the County Commission, because it
 
         24       was obvious to me that the County Commission is
 
         25       enforcing the building code.  Because it was the
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          1       new single family structures that withstood the
 
          2       title surge almost unscathed as compared to the
 
          3       single family dwelling structures of vintage,
 
          4       like, 1970 that were totally demolished.
 
          5            Now, with regard to structures such as
 
          6       this, I don't know.  I -- I didn't go in them to
 
          7       inspect them.  But just purely from the
 
          8       helicopter, it was clear on the single family
 
          9       structures, you all are enforcing the code on
 
         10       your new structures, and it paid off handsomely.
 
         11            MR. MILLER:  Absolutely.  And I think the
 
         12       high-rises did do quite well.  The first floors
 
         13       on some of them were blown out.  I understand
 
         14       that they're somewhat designed to do that.  But
 
         15       they sustained the wind and water damage quite
 
         16       well.  But you're absolutely correct about new
 
         17       construction.
 
         18            TREASURER NELSON:  Thank you.
 
         19            MR. MILLER:  Thank you.
 
         20            COMMISSIONER BROGAN:  Governor, could I ask
 
         21       counsel for Edgewater a question, please?
 
         22            And I'm sorry, is it Mr. Theriaque?
 
         23            MR. THERIAQUE:  Theriaque.
 
         24            COMMISSIONER BROGAN:  Theriaque.
 
         25       I'm sorry, sir.
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          1            MR. THERIAQUE:  Yes, sir.
 
          2            COMMISSIONER BROGAN:  We have wrestled with
 
          3       this issue, got a lot of time spent on this
 
          4       issue because it's complicated based on time,
 
          5       previous rulings, pending rulings, changes in
 
          6       the project itself.
 
          7            But the one thing that I've got to ask, and
 
          8       I'm going to ask you to speculate a little bit,
 
          9       or -- possibly.  The changes in the project that
 
         10       I've seen since 1993 have taken the project from
 
         11       476 units -- and please correct me if I'm
 
         12       wrong -- 476 units to 301 units to 286 units,
 
         13       and I heard someone mention a possible figure of
 
         14       178 units.
 
         15            I -- you know, as you read these things,
 
         16       you not only read the law and the findings, but
 
         17       you also start to read intent.
 
         18            Counselor, is it the intent of Edgewater
 
         19       that if KPM came along with a project that would
 
         20       significantly downsize from even the 178, that
 
         21       there would be objections filed?
 
         22            MR. THERIAQUE:  Let me answer that two
 
         23       ways.
 
         24            COMMISSIONER BROGAN:  I guess -- I'm trying
 
         25       to tap dance.  Let me ask you straight out.
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          1            Is Edgewater attempting to see that there
 
          2       is no project --
 
          3            MR. THERIAQUE:  No.
 
          4            COMMISSIONER BROGAN:  -- developed by KPM?
 
          5            MR. THERIAQUE:  None.
 
          6            COMMISSIONER BROGAN:  And if the answer to
 
          7       that is no, then what is it that Edgewater is
 
          8       looking for?
 
          9            MR. THERIAQUE:  If I may approach you, sir,
 
         10       I'd like to hand something out which would help
 
         11       me answer this question.
 
         12            And because my time ran out, I wasn't able
 
         13       to hit this point, so I appreciate you asking
 
         14       the question.
 
         15            COMMISSIONER BROGAN:  That's why I'm here.
 
         16            MR. THERIAQUE:  What the Association wants,
 
         17       one of two alternatives:  One, they would like
 
         18       to have the project built out the way it was
 
         19       designed in 1982.  That has been their position
 
         20       since 1992 --
 
         21            COMMISSIONER BROGAN:  Counselor, let me --
 
         22            TREASURER NELSON:  You mean like that?
 
         23            COMMISSIONER BROGAN:  Let me interject.
 
         24            MR. THERIAQUE:  Yes, sir.
 
         25            COMMISSIONER BROGAN:  My understanding was
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          1       that one of the first problems was the fact that
 
          2       there is a view problem with the original
 
          3       architectural design, that the view would be
 
          4       hindered by the residents of Edgewater for a
 
          5       Gulf view if the original design were actually
 
          6       constructed?
 
          7            MR. THERIAQUE:  No, sir.  I believe some of
 
          8       the condo units may have in their view -- I
 
          9       can -- this is an artist's rendition that was
 
         10       prepared at the time the 1982 development order
 
         11       was approved.
 
         12            If it would help, I'll bring it up there.
 
         13       But if -- you can see, even from the back units,
 
         14       which is where the elevator shaft is, because
 
         15       this is a stair step condominium design, you
 
         16       still have a view going out.
 
         17            So their concern is not to try to kill any
 
         18       project that's proposed by KPM or any other
 
         19       developer.  Their initial concern was they
 
         20       bought into a project.  There were amenities
 
         21       that were supposed to be completed in the
 
         22       subsequent phases.
 
         23            As a matter of fact, when the developer
 
         24       went bankrupt on the first two phases, they had
 
         25       to dig into their own pocketbooks and complete
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          1       many of the things that were supposed to be in
 
          2       the first two phases.  They still believe that
 
          3       this is a fantastic design.
 
          4            And if any developer were to come forward
 
          5       and say, we want to complete what was proposed
 
          6       in 1982, including the amenities, there would be
 
          7       no objection.
 
          8            If that doesn't take place, what they want
 
          9       is whomever comes in -- whoever comes in, to
 
         10       comply with the current Comprehensive Plan, that
 
         11       the -- that they feel that it's inappropriate
 
         12       for a developer to come in, revive a D.O., a
 
         13       developmental order; not complete a project; not
 
         14       incur any of the liabilities; but to get the
 
         15       benefits of not having to comply with today's
 
         16       current regs.
 
         17            And if somebody were to come in and comply
 
         18       with today's current regs in the 35 height
 
         19       limitation, 35 foot height limitation; and
 
         20       12 dwelling units per acre, we wouldn't be
 
         21       here.  That's their position.
 
         22            COMMISSIONER BROGAN:  Okay.  Following up
 
         23       on that.  If the proposed project were
 
         24       completed -- and I'm talking now I suppose about
 
         25       the 286 unit project which is the one that is
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          1       the most current project being promoted -- if
 
          2       that were constructed as it exists today, are
 
          3       there view problems with that and amenity
 
          4       problems with that?  Recognizing it is
 
          5       substantially different than the original
 
          6       project, I grant you that.
 
          7            But how does that address the issues of
 
          8       the -- the existing tenants when it comes to
 
          9       those other issues that have been wrestled
 
         10       with?
 
         11            MR. THERIAQUE:  It's my understanding of
 
         12       the handout that Ms. Chumbler passed out to you,
 
         13       there is a sheet that has a comparison of three
 
         14       different designs.  And I don't have that in
 
         15       front of me.
 
         16            The middle design is the one that is the
 
         17       1995 resolution.  That's a 24-story
 
         18       condominium -- building, it's not stair
 
         19       stepped.  There would be a blockage problem.
 
         20       But that's not on the table any more either.
 
         21            There is a third design from the
 
         22       Grand Dunes which I believe is either 189 or
 
         23       178 units.  I have not seen that proposal yet.
 
         24       It's just been filed, as I understand, with the
 
         25       Regional Planning Council sometime early
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          1       October, shortly after Hurricane Opal.
 
          2            I believe it's a 21-story building.  My
 
          3       understanding from my client, who has been in
 
          4       almost daily contact with Paul Freeman, that
 
          5       there is a blockage problem with the views with
 
          6       that proposal as well.
 
          7            Furthermore, there's no completion of the
 
          8       amenities.  Even if there was not a blockage
 
          9       problem, this allows somebody to come in,
 
         10       complete a development order with something
 
         11       other than what was proposed in 1982, not
 
         12       complete the amenities, and get all the
 
         13       benefits, yet none of the liabilities.
 
         14            COMMISSIONER BROGAN:  Well, relative to the
 
         15       issue of density, if -- if the group was ready
 
         16       to approve a 476 unit project, and now has
 
         17       density problems with a 286 unit project, I'm
 
         18       trying to understand the position on density
 
         19       then.
 
         20            MR. THERIAQUE:  Their contention is they
 
         21       can't object to the original plan being built
 
         22       out.  They bought in expecting --
 
         23            COMMISSIONER BROGAN:  Like it or not --
 
         24            MR. THERIAQUE:  Like it or not --
 
         25            COMMISSIONER BROGAN:  -- is that what
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          1       you're saying?
 
          2            MR. THERIAQUE:  -- that's what they bought
 
          3       into.  And that it would be inappropriate for
 
          4       them to say, well, this is what we bought into,
 
          5       but we really don't like it, we're going to
 
          6       oppose it.
 
          7            COMMISSIONER BROGAN:  So the issue of
 
          8       density is really, really moot then.  If they're
 
          9       willing to accept this -- density's a
 
         10       philosophical issue, as well as an impact issue
 
         11       if they're looking to buy into a 476 unit
 
         12       project because it was good or bad, the one that
 
         13       they had agreed to up front, and now they're
 
         14       going to argue over 286 and the issue of
 
         15       density, it really does make that argument
 
         16       somewhat moot I would think.
 
         17            I'm just trying to throw out those
 
         18       arguments for myself that probably have a little
 
         19       less impact or standing to me than some of the
 
         20       other -- because you both make good arguments,
 
         21       believe me.
 
         22            And I'm trying to get down to the focus of
 
         23       this thing.  And I understand your position on
 
         24       density, but it really does make that argument
 
         25       somewhat diluted when we say, good, bad, or
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          1       indifferent, we would accept 476; we won't
 
          2       accept 286, because we think that's a density
 
          3       problem.
 
          4            There have been changes made.  The order
 
          5       that we have -- the recommended order that we
 
          6       have in front of us today, I am concerned what
 
          7       it actually is a recommended order regarding.
 
          8            The retention pond issue.  It's your
 
          9       position that the retention pond issue is based
 
         10       on a construction which is no longer being
 
         11       proposed?
 
         12            MR. THERIAQUE:  It's my understanding from
 
         13       the expert retained by KPM that they have
 
         14       designed a mechanism -- a system that has a
 
         15       retaining wall that apparently goes 6 or 8 feet
 
         16       into the ground which will intercept and prevent
 
         17       any storm water from the -- the 19 town homes
 
         18       from reaching the retention pond that's on both
 
         19       KPM's property and my client's property.
 
         20            Our contention is that the 17 -- or the 19
 
         21       town homes is no longer an issue, we're looking
 
         22       at something else.
 
         23            So regardless of how this body, or if this
 
         24       thing goes up on appeal to the First District
 
         25       Court of Appeal, rules on the standing issue on
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          1       this particular plan, that that's not going to
 
          2       be binding, because then we're looking at a
 
          3       24-story condominium with a different storm
 
          4       water run off management plan and different
 
          5       impacts.
 
          6            COMMISSIONER BROGAN:  All right.  And I'd
 
          7       also, Governor -- I don't want to monopolize
 
          8       this, but I also want to give the other counsel
 
          9       an opportunity to respond to any of those
 
         10       that -- that she would care to.
 
         11            MR. THERIAQUE:  Thank you.
 
         12            MS. CHUMBLER:  If I could, briefly on the
 
         13       standing issue.  Standing issue is a very legal
 
         14       point.
 
         15            Frankly, I just as soon you find they have
 
         16       standing.  Because that gets you to the -- to
 
         17       the real crux of the issue, which is can this
 
         18       development order be revived.
 
         19            And in this letter from Miss Harris, the
 
         20       president of the condominium association, that
 
         21       has not been my client's understanding.  But
 
         22       taking that, if, in fact, the condominium
 
         23       association would accept this, you have to --
 
         24       you have to revive the development order.
 
         25       Regardless of what is developed out there, you
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          1       have to revive the development order.
 
          2            So the question of what is ultimately built
 
          3       out there is not really the issue that's before
 
          4       this body.  The issue is to revive the
 
          5       development order so that some development can
 
          6       occur.  Whether it be this, or whether it be a
 
          7       lesser development.
 
          8            COMMISSIONER BROGAN:  So it's your -- your
 
          9       position that the recommended order which would
 
         10       allow that development order to be restored is
 
         11       point one --
 
         12            MS. CHUMBLER:  Right.
 
         13            COMMISSIONER BROGAN:  -- other issues to be
 
         14       addressed as they unfold in the future --
 
         15            MS. CHUMBLER:  Yes, sir.
 
         16            COMMISSIONER BROGAN:  -- on what will no
 
         17       doubt be a whole range of other issues --
 
         18            MS. CHUMBLER:  Yes, sir.
 
         19            COMMISSIONER BROGAN:  -- on the project.
 
         20            MS. CHUMBLER:  That's right.
 
         21            Some of those issues were hashed out before
 
         22       the County, and some of them may be back here.
 
         23            COMMISSIONER BROGAN:  No doubt.
 
         24            MS. CHUMBLER:  And some of them will be
 
         25       decided by a Circuit Court judge.
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          1            TREASURER NELSON:  Governor, would somebody
 
          2       address the question of the relocation of the
 
          3       Coastal Control Line from --
 
          4            (Secretary Mortham exited the room.)
 
          5            TREASURER NELSON:  -- DEP after the storm.
 
          6            DR. BRADLEY:  Secretary Wetherell.
 
          7            MS. WETHERELL:  Mr. Treasurer, in this
 
          8       county, we're not in the process -- or at this
 
          9       point, we don't have any information to lead us
 
         10       to reestablishing the line in that county.
 
         11            Bay County was the one we were talking
 
         12       about last week in which the line was
 
         13       predominantly now in the water.  And we have
 
         14       since the last Cabinet meeting reestablished --
 
         15       by an emergency order, a Control Line 100 feet
 
         16       landward of the old line.
 
         17            But in this county, at this point, we don't
 
         18       have information to suggest that we would
 
         19       reestablish a line.
 
         20            Does that answer your question?
 
         21            TREASURER NELSON:  (Nodding head.)
 
         22            ATTORNEY GENERAL BUTTERWORTH:  I'd like it
 
         23       if you'd answer that further.
 
         24            If we're going to revive the development
 
         25       order, and if after Opal it appears the Coastal
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          1       Construction Line should be moved back -- I
 
          2       don't know if it should or should not, I do not
 
          3       know -- but let's say it should be moved back.
 
          4            If we revive the development order, must
 
          5       they build with the new construction line, or
 
          6       the old construction line, or the one today?
 
          7            MS. WETHERELL:  I can't answer that
 
          8       question.  Let me see if I have anybody --
 
          9            ATTORNEY GENERAL BUTTERWORTH:  Maybe the
 
         10       Department can give us some idea here.
 
         11            MS. WETHERELL:  Kirby may can.
 
         12            Can you answer that --
 
         13            TREASURER NELSON:  I think this is a very
 
         14       important question.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  Maybe --
 
         16            TREASURER NELSON:  You know, I could answer
 
         17       it very precisely.
 
         18            (Secretary Mortham entered the room.)
 
         19            MS. CHUMBLER:  Mr. Nelson, while they're
 
         20       conferring, I'll tell you what my client has
 
         21       indicated.  And that is that all of those
 
         22       separate permitting -- environmental
 
         23       permitting --
 
         24            COMMISSIONER BROGAN:  Counsel, I'm sorry.
 
         25       Could you sort of mill over there towards --
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          1            MS. CHUMBLER:  I'm sorry.
 
          2            COMMISSIONER BROGAN:  -- the microphone
 
          3       there?
 
          4            MS. CHUMBLER:  All of the -- all of the
 
          5       various --
 
          6            COMMISSIONER BROGAN:  Push them right --
 
          7       don't -- yeah.
 
          8            MS. CHUMBLER:  The environmental permits
 
          9       that we would have to get, including any
 
         10       necessary coastal construction permit, would
 
         11       still be required.  We would have to comply with
 
         12       that Coastal Construction Line in effect at the
 
         13       time we sought those environmental licenses,
 
         14       regardless of what the development order is.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  What about
 
         16       other procedures though?  I mean -- I know one
 
         17       of the questions was, what's the -- what's the
 
         18       Department -- what if the County has all new
 
         19       building procedures?
 
         20            MS. CHUMBLER:  We'd have to -- if they have
 
         21       all new building permits, we'd have to follow
 
         22       those new building permits.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  But how
 
         24       about the densities?
 
         25            MS. CHUMBLER:  Well, now, that's a comp
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          1       plan issue.  Now, if that is an issue, the issue
 
          2       of vesting under the comp plan and consistency
 
          3       with the comp plan was not raised in this
 
          4       proceeding.  In this proceeding.
 
          5            It has been raised as to the '95
 
          6       resolution.  And, in fact, the Legislature has
 
          7       decided that those consistency issues should be
 
          8       decided in the Circuit Court, one sixty-two
 
          9       three thirty-two fifteen specifically says that
 
         10       the sole forum for deciding those consistency
 
         11       issues is in Circuit Court.
 
         12            And there is a Circuit Court proceeding
 
         13       pending challenging the '95 resolution on that
 
         14       issue.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  Of what
 
         16       benefit is there then to your client to revive
 
         17       this development order versus just going for a
 
         18       whole new DRI order?
 
         19            MS. CHUMBLER:  The benefit is that my
 
         20       client has expended substantial funds on legal
 
         21       fees, on my services, on experts, on other
 
         22       people, we have gone through two days of
 
         23       hearing, we have done appeals to the District
 
         24       Court --
 
         25            ATTORNEY GENERAL BUTTERWORTH:  You can help
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          1       the bottom line of Carlton, Fields by -- by
 
          2       letting you bill more hours.
 
          3            MS. CHUMBLER:  That would not help my
 
          4       client, however.
 
          5            We've been -- as I say, we've been in
 
          6       litigation on the issue of whether a local
 
          7       government can revive a development order for a
 
          8       long time.
 
          9            There is no need -- there is nothing to
 
         10       be -- to be gained by throwing out all of that
 
         11       work on the part of my firm, Mr. Theriaque's
 
         12       firm, and several other law firms, and starting
 
         13       all over again on that issue, because that's
 
         14       what you'd be doing.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  Well, is DCA
 
         16       then also saying then, sir, that the -- by
 
         17       reviving the development order, the environment
 
         18       has no -- there's no problem that the
 
         19       environment is not going to be harmed?
 
         20            MR. JORDAN:  No.  What we're saying is is
 
         21       that the -- once the decree which established
 
         22       the commerce and planning process gives a
 
         23       certain amount of respect to associated DRI
 
         24       development orders.
 
         25            And here we're talking about a change
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          1       that's been determined to be a nonsubstantial
 
          2       deviation too small to require further DRI
 
          3       review.  And in that event, we believe that it's
 
          4       appropriate for the DRI development order to be
 
          5       revived.  Especially since the environmental
 
          6       aspects were considered in the original DRI
 
          7       review in the first place.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  So you're
 
          9       saying that -- or everyone's saying if, in fact,
 
         10       the Coastal Construction Control Line should,
 
         11       in essence, be on the other side of Highway 98,
 
         12       by reviving the development order, they will not
 
         13       be able to build south of 98, if their line gets
 
         14       changed --
 
         15            MR. JORDAN:  Well, it's been --
 
         16            ATTORNEY GENERAL BUTTERWORTH:  -- before
 
         17       the permit?
 
         18            MR. JORDAN:  Well, there's many cases that
 
         19       say the DRI process is an additional layer of
 
         20       review.  That doesn't replace all the other
 
         21       layers, it's just an additional layer of review
 
         22       placed upon very large developments.
 
         23            And, in fact, the DRI process, it just
 
         24       recognizes the possibility of changes to the --
 
         25       that will require the developer, because of
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          1       other environmental reviews, and makes it easier
 
          2       for the developer to get -- change the
 
          3       development order on that basis.
 
          4            ATTORNEY GENERAL BUTTERWORTH:  If we revive
 
          5       the order as of today, they must then comply
 
          6       with all procedures of Walton County's in place
 
          7       as of today, not in place as of yesterday or the
 
          8       date that the original -- that they originally
 
          9       got the development order.
 
         10            MR. JORDAN:  Well, that's true in regards
 
         11       to things like building codes, as to how well
 
         12       the building's going to be -- things like that.
 
         13       That's not true in regards to the Comprehensive
 
         14       Plan.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  So how could
 
         16       the State -- we as Trustees, how -- how are the
 
         17       people of the state of Florida affected then?
 
         18       Very simple language.
 
         19            What are we losing by ruling the way you
 
         20       want us to rule, the way DCA seems to want us to
 
         21       rule in this --
 
         22            MR. JORDAN:  Well, we don't think we're
 
         23       losing anything.  We think we've got a
 
         24       development that's already gone through a very
 
         25       intense review process.
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          1            We think they're proposing what has already
 
          2       been determined to be a minor change to that
 
          3       approval.  We think if subsequent events in --
 
          4       that would affect other regulatory programs,
 
          5       like the Coastal Control -- Control Construction
 
          6       Line mandated change -- further change, that can
 
          7       be done, the DRI development order will not
 
          8       prevent moving this building in regards to a new
 
          9       Construction Control Line.
 
         10            And we think that the -- this policy of
 
         11       reviving DRIs that are not being changed very
 
         12       much by extension of the expiration date because
 
         13       of the analysis of the impacts of that change is
 
         14       a good thing.  Especially when you apply it to
 
         15       all the various kinds of DRIs across the state.
 
         16            TREASURER NELSON:  Governor --
 
         17            ATTORNEY GENERAL BUTTERWORTH:  I wish the
 
         18       Secretary of the agency was here.  I'm surprised
 
         19       the secretary of the agency is not here.  I wish
 
         20       Mr. Murley was here, I'd like to hear from him
 
         21       on this.
 
         22            MR. JORDAN:  Well, I can tell you that the
 
         23       Secretary of the agency authorized intervention
 
         24       on this very issue.  That's -- this is the
 
         25       policy of the Department that I'm explaining
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          1       now --
 
          2            ATTORNEY GENERAL BUTTERWORTH:  I'm
 
          3       surprised on such an important issue, the
 
          4       Secretary's not here, sir.
 
          5            MR. JORDAN:  Okay.
 
          6            TREASURER NELSON:  Governor, may I ask
 
          7       Madam Counselor -- Carlton, Fields' counselor --
 
          8            MS. CHUMBLER:  I'm sorry.
 
          9            TREASURER NELSON:  -- would you tell me if
 
         10       new standards are set and a new control line is
 
         11       set --
 
         12            MS. CHUMBLER:  Yes, sir.
 
         13            TREASURER NELSON:  -- that your client
 
         14       would have to comply with, what would you
 
         15       additionally have to comply with if the old
 
         16       development order ceased that you would not have
 
         17       to comply with if the old development order were
 
         18       reactivated?
 
         19            MS. CHUMBLER:  Well, it depends on where
 
         20       you put us in time.  If you had put us at the
 
         21       point in '92 when we took possession of this
 
         22       property and first went to the County and then
 
         23       Department of Community Affairs --
 
         24            TREASURER NELSON:  The time --
 
         25            MS. CHUMBLER:  -- and said --
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          1            TREASURER NELSON:  -- is today.  Today.
 
          2            MS. CHUMBLER:  -- proceed --
 
          3            TREASURER NELSON:  Today.
 
          4            MS. CHUMBLER:  Okay.  Time --
 
          5            TREASURER NELSON:  The answer --
 
          6            MS. CHUMBLER:  -- as of --
 
          7            TREASURER NELSON:  -- as of today.
 
          8            MS. CHUMBLER:  -- as of today --
 
          9            TREASURER NELSON:  That's correct.
 
         10            MS. CHUMBLER:  -- having not been misled
 
         11       apparently -- or possibly by government, there
 
         12       is a '93 development order that took place -- or
 
         13       excuse me -- '93 Comprehensive Plan that was
 
         14       adopted by the County after the '93 resolution
 
         15       that is before you today.
 
         16            That '93 Comprehensive Plan includes a
 
         17       height limitation that was not in effect at the
 
         18       time.  That also includes I think 12 units per
 
         19       acre density limitation.
 
         20            The '93 resolution includes within it the
 
         21       first phase, the phase that was specifically
 
         22       approved, the 19 town homes, which not -- would
 
         23       not violate the height limitation.
 
         24            But the overall project did include later
 
         25       phases -- later phases that would violate that
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          1       height limitation.
 
          2            Now, let me throw in a little extra, one
 
          3       other thing why I think you're really getting
 
          4       into a can of worms if you get into this issue
 
          5       that was never raised in these proceedings.
 
          6            And that is, there's a recent decision out
 
          7       of the First District Court of Appeals, St. Joe
 
          8       Paper Company versus Walton County, that calls
 
          9       into question whether the '93 Comprehensive Plan
 
         10       in Walton County is even in effect.
 
         11            TREASURER NELSON:  Okay.  But that's not my
 
         12       question.
 
         13            MS. CHUMBLER:  Now, aside from the
 
         14       Comprehensive Plan, my response would be other
 
         15       regulations and permitting requirements in
 
         16       Walton County today, we would be required to
 
         17       comply with.
 
         18            TREASURER NELSON:  Okay.  So to say simply
 
         19       what I think you just said, if there were no
 
         20       development order that was allowed to be
 
         21       reactivated, the -- what additionally your
 
         22       clients would have to do would -- you tell me if
 
         23       this is correct what you just said -- they would
 
         24       have to comply with the lower density, the
 
         25       additional setback, and what else?
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          1            ATTORNEY GENERAL BUTTERWORTH:  Height.
 
          2            TREASURER NELSON:  And height --
 
          3            MS. CHUMBLER:  Height limitation.
 
          4            TREASURER NELSON:  And height limitation.
 
          5            MS. CHUMBLER:  Yes, sir.
 
          6            TREASURER NELSON:  Under -- if the original
 
          7       development order is not reactivated -- is
 
          8       reactivated --
 
          9            MS. CHUMBLER:  Yes, sir.
 
         10            TREASURER NELSON:  -- they do not have to
 
         11       comply with those three?
 
         12            MS. CHUMBLER:  If it is reactivated, you
 
         13       have a resolution by the County that was
 
         14       approved in 1993 prior to the adoption of the --
 
         15       of the existing -- if it is existing --
 
         16       Walton County Comprehensive Plan.  There was
 
         17       also a '90 Comprehensive Plan at -- in effect.
 
         18            Now, the issue of whether we were
 
         19       consistent with that plan still wasn't raised.
 
         20       Our position would be that we were a vested
 
         21       project, and, in fact, in the '95 order, the
 
         22       county found we were a vested project --
 
         23            TREASURER NELSON:  Counselor, I don't know
 
         24       what you just said.
 
         25            MS. CHUMBLER:  Okay.
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          1            TREASURER NELSON:  Question number one --
 
          2            MS. CHUMBLER:  Yes, sir.
 
          3            TREASURER NELSON:  -- if the development
 
          4       order is reactivated --
 
          5            MS. CHUMBLER:  Yes.
 
          6            TREASURER NELSON:  -- would you have to
 
          7       comply with the height limitation?
 
          8            MS. CHUMBLER:  No, sir.
 
          9            TREASURER NELSON:  Okay.  Question
 
         10       number two:  If the development order is --
 
         11            MS. CHUMBLER:  Mr. Nelson, can --
 
         12            TREASURER NELSON:  -- reactiv--
 
         13            MS. CHUMBLER:  -- can I back up just a
 
         14       second to make sure you're clear.
 
         15            The development order that's before you
 
         16       today was adopted before there was a height
 
         17       limitation.  There was no height limitation --
 
         18            TREASURER NELSON:  I understand.  I
 
         19       understand.
 
         20            MS. CHUMBLER:  That's what --
 
         21            TREASURER NELSON:  There is a height
 
         22       limitation now in Walton County.
 
         23            MS. CHUMBLER:  Yes, sir.
 
         24            TREASURER NELSON:  Okay.  So question
 
         25       number one:  If the development order is
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          1       reactivated, do you have to comply with the
 
          2       height limitation today?
 
          3            MS. CHUMBLER:  No, sir.
 
          4            TREASURER NELSON:  And the answer is no.
 
          5            MS. CHUMBLER:  Right.
 
          6            TREASURER NELSON:  Question number two is:
 
          7       If the development order is reactivated, do you
 
          8       have to comply with today's density
 
          9       requirement?
 
         10            MS. CHUMBLER:  No, sir.
 
         11            TREASURER NELSON:  The answer is no.
 
         12            Thank you, Governor.
 
         13            I can tell you on the basis of the answer
 
         14       that was just given to me, I will vote against
 
         15       reactivation of the development order.
 
         16            ATTORNEY GENERAL BUTTERWORTH:  I feel the
 
         17       same way on it.  But my -- I must go a little
 
         18       bit further on that because we just -- we
 
         19       just -- I mean, I think the timing of this issue
 
         20       coming up is just bad.
 
         21            You know, if it would have come up a couple
 
         22       of weeks ago, you might have had a little
 
         23       different problem.
 
         24            But how we vote on this may have a
 
         25       tremendous affect on how we vote on all issues
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          1       on Coastal Construction Lines after storms.
 
          2       This could be a bad precedent one way or the
 
          3       other.
 
          4            Governor, I'd like to see us defer the item
 
          5       maybe to see what real effect this thing will
 
          6       have.  I have -- I know my vote today is no on
 
          7       this because I don't have enough facts.
 
          8            DER has not gone out, determined whether or
 
          9       not we need a new Coastal Construction Line.
 
         10       The County has not -- either -- we know
 
         11       Bay County definitely needs one.  I have a real
 
         12       problem with this issue at this point in time.
 
         13            COMMISSIONER BROGAN:  Could I ask a --
 
         14            ATTORNEY GENERAL BUTTERWORTH:  It might be
 
         15       unfair.
 
         16            COMMISSIONER BROGAN:  Could I ask a
 
         17       procedural question, Governor?
 
         18            Is there any problem with deferring this
 
         19       issue at this point in terms of the recommended
 
         20       order, or are we running into any legal time
 
         21       lines, et cetera?
 
         22            MR. SMITH:  Governor, members of the
 
         23       Cabinet, I'm Greg Smith, the attorney for the
 
         24       Cabinet.
 
         25            There is a 90-day requirement that we
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          1       consider a recommended order within that time
 
          2       frame.  However, the parties agree that can be
 
          3       waived.  And this is the last date, the Cabinet
 
          4       date, within the 90-day framework.
 
          5            COMMISSIONER BROGAN:  I -- because I'm
 
          6       going to echo something the General mentioned.
 
          7            There is just some pieces here that are
 
          8       coming to light that I think are going to be
 
          9       very important, not only to this project, but
 
         10       other projects like it in the future based on a
 
         11       lot of things that may or may not -- and I'm not
 
         12       trying to intermingle apples and oranges and
 
         13       create new problems because of the hurricane and
 
         14       the coastal development line.
 
         15            But it's hard to stay away from that issue,
 
         16       and others, that might come up relative to these
 
         17       things.
 
         18            So your bottom line is as long as the two
 
         19       parties -- and I'm assuming that means the two
 
         20       counsels here today --
 
         21            MR. SMITH:  That's correct.
 
         22            COMMISSIONER BROGAN:  -- would concur that
 
         23       we could defer that issue until we get some more
 
         24       information from staff.
 
         25            MR. SMITH:  That's correct.
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          1            If I can address the Cabinet for just a
 
          2       moment, I would like to sort of clarify one
 
          3       issue, that we are here on the recommended
 
          4       order.  The recommended order does not reach the
 
          5       issue of density.
 
          6            The issue of density was raised in the '95
 
          7       case, which I think counsel had alluded to,
 
          8       there is a '95 case, it's at DOAH and currently
 
          9       abated.
 
         10            But the recommended order that came out of
 
         11       DOAH did not issue -- reach the issue of
 
         12       density.  It only reached the issues of reviving
 
         13       the DRI, and standing on some of the --
 
         14            COMMISSIONER BROGAN:  So we will just be
 
         15       wrestling with the density issue in a further
 
         16       recommended order.
 
         17            GOVERNOR CHILES:  Well, let me ask you this
 
         18       question, Greg --
 
         19            MR. SMITH:  Yes, sir.
 
         20            GOVERNOR CHILES:  -- if it's reinstated
 
         21       today --
 
         22            MR. SMITH:  Yes, sir.
 
         23            GOVERNOR CHILES:  -- would that allow them
 
         24       to not have to honor a new construction setback
 
         25       line?
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          1            MR. SMITH:  It's my opinion, Governor, that
 
          2       they would have to comply with the setback line
 
          3       even though the development order would allow
 
          4       them to have greater density.
 
          5            GOVERNOR CHILES:  They would have to comply
 
          6       with setback.
 
          7            MR. SMITH:  That's correct.
 
          8            GOVERNOR CHILES:  And that's -- that's what
 
          9       I would like to do.
 
         10            COMMISSIONER BROGAN:  And I assume --
 
         11       Counsel, you're agreeing --
 
         12            MS. CHUMBLER:  I would say --
 
         13            COMMISSIONER BROGAN:  -- that that is your
 
         14       interpretation as well --
 
         15            MS. CHUMBLER:  Yes, sir.
 
         16            COMMISSIONER BROGAN:  -- that regardless of
 
         17       what action we take today, even if it is to
 
         18       defer, that whatever the appropriate setback
 
         19       line is at a future point in time, your
 
         20       interpretation is that that project would have
 
         21       to comply with that future setback line.
 
         22            MS. CHUMBLER:  Yes, sir.
 
         23            COMMISSIONER CRAWFORD:  Governor, I think
 
         24       that -- that takes care of the concern that I
 
         25       had.  And I think we've raised a lot of issues
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          1       here that, you know, for -- for our own
 
          2       edification.
 
          3            But as it relates to the hearing officer,
 
          4       if he's correct, we ought to affirm what the
 
          5       hearing officer said, if -- in view of the fact
 
          6       that the project would have to adhere to any new
 
          7       setback requirements that --
 
          8            MS. WETHERELL:  Can I comment on that,
 
          9       because you asked me the question a minute ago.
 
         10            And, you know, number one, we don't
 
         11       anticipate that we will be establishing a new
 
         12       control line.  But either way, under the old or
 
         13       under a new -- which we don't think there will
 
         14       be one -- when they come in for a permit, they
 
         15       would have to meet the standards of -- of that
 
         16       time.
 
         17            And so, you know, we anticipate when they
 
         18       file an application for a permit, that that's
 
         19       when they'll be meeting these environmental
 
         20       tests, design and site.  And so either way, they
 
         21       have to meet those -- the standards of the rule.
 
         22            TREASURER NELSON:  But not the density nor
 
         23       the height limitation --
 
         24            MS. WETHERELL:  That's not --
 
         25            TREASURER NELSON:  -- according --
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          1            MS. WETHERELL:  Yes.  That's what --
 
          2            TREASURER NELSON:  -- according to the
 
          3       counselor's response.
 
          4            MS. WETHERELL:  That's true.  That's not
 
          5       part of the Control Line.
 
          6            TREASURER NELSON:  And -- and it's my
 
          7       understanding, and you tell me if this is true,
 
          8       that Walton County has enacted a new density,
 
          9       which is a lower density, and has enacted a
 
         10       height restriction which was not in effect back
 
         11       when this development was first started 13 years
 
         12       ago; is that correct?
 
         13            MR. THERIAQUE:  That's correct, sir.  They
 
         14       have a 35 foot height limitation, and a density
 
         15       of 12 dwelling units per acre, which would give
 
         16       them approximately 84 units, instead of 282.
 
         17            MS. CHUMBLER:  Mr. Nelson, if I may just
 
         18       say briefly, when you asked me those questions,
 
         19       I answered them from my position.  No
 
         20       hearing officer has ruled on that issue.
 
         21       Mr. Theriaque, I'm sure, will argue a different
 
         22       position.
 
         23            So you do not have a recommended order
 
         24       before you today that says anything about what
 
         25       would or would not be vested.
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          1            COMMISSIONER BROGAN:  Right.  And that's --
 
          2            MS. CHUMBLER:  That is my position.  As an
 
          3       attorney, I would argue that before you.
 
          4            TREASURER NELSON:  Yes.  I understand
 
          5       that.
 
          6            But what we're doing, and I see our role as
 
          7       sitting as a body of public policy.  And where I
 
          8       can defer to the local government's public
 
          9       policy, I'm going to.
 
         10            And the local government's public policy is
 
         11       a 35 foot height limitation, and a density of
 
         12       12 per acre.
 
         13            MS. CHUMBLER:  I would point --
 
         14            GOVERNOR CHILES:  Well, you just have to
 
         15       counter that against the fact that you've got
 
         16       the -- the objector here saying none of his
 
         17       people object to the higher density if you built
 
         18       it out the way it was.
 
         19            You know, the question really is what the
 
         20       hearing officer decided.  The hearing officer
 
         21       said -- it's a very narrow question, I think --
 
         22       do you allow them to extend the date that's
 
         23       expired.
 
         24            Because we all know that it was
 
         25       grandfathered in at greater exceptions.  Times
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          1       have changed tremendously.  You said you want to
 
          2       defer it to the County.  I doubt if the County
 
          3       wants you to defer to them on this one --
 
          4       subject right now.  I suspect they want to --
 
          5            You know, but I think what we're talking
 
          6       about is looking at the narrow question.  The
 
          7       hearing officer's decision is this thing was not
 
          8       absolutely cut off, and thought it should be
 
          9       extended.
 
         10            There is some citing of things that that's
 
         11       been done before, that's not an original new
 
         12       question to me.  That's what hearing officers
 
         13       are for, to weigh into that.
 
         14            On the policy question, you know, I agree,
 
         15       I think that's within our thing to make the
 
         16       policy on.  It seems to me what you say, that a
 
         17       setback line can be when they go for the permit,
 
         18       it's going to be what the setback line is at
 
         19       that time.  That to me is the protection that
 
         20       I'm seeking, to see that they don't have that.
 
         21            And I would vote now for this narrow ruling
 
         22       that the hearing officer's made to just concur
 
         23       with that ruling, and let the thing go forward.
 
         24            But I think we've discussed it long
 
         25       enough.  Let's get --
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          1            ATTORNEY GENERAL BUTTERWORTH:  Let's get
 
          2       the question of it then.  Because if we're going
 
          3       back and saying that the owners, Governor, would
 
          4       accept what -- the second half of the
 
          5       horseshoe --
 
          6            GOVERNOR CHILES:  Yeah.
 
          7            ATTORNEY GENERAL BUTTERWORTH:  -- they're
 
          8       also saying that, wait a minute, the developer
 
          9       promised us certain amenities that we do not
 
         10       have.  But they're saying, if they do the
 
         11       horseshoe or anything else, we want our
 
         12       amenities.
 
         13            What amenities do you not have that you
 
         14       were supposed to have?
 
         15            MR. THERIAQUE:  They were the -- some of
 
         16       the usual amenities with a condominium project:
 
         17       Racquetball courts, tennis courts, expanded
 
         18       lobbies, walls were going to be knocked down to
 
         19       expand a kitchen -- excuse me -- a conference
 
         20       room, a kitchen, a child play area, things along
 
         21       those lines, sir.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  I'm
 
         23       surprised that the new person has not gone to
 
         24       the old people -- to the old owners and said,
 
         25       I'm going to give you those amenities.  I'm
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          1       surprised they didn't do that.
 
          2            GOVERNOR CHILES:  All right.  What's your
 
          3       pleasure?
 
          4            COMMISSIONER CRAWFORD:  I move that we
 
          5       affirm the hearing officer's recommendation.
 
          6            SECRETARY MORTHAM:  Second.
 
          7            GOVERNOR CHILES:  Been moved and seconded
 
          8       that we affirm the hearing officer's
 
          9       recommendation.
 
         10            As many as favor the motion, signify by
 
         11       saying aye.
 
         12            SECRETARY MORTHAM:  Aye.
 
         13            COMMISSIONER CRAWFORD:  Aye.
 
         14            COMMISSIONER BROGAN:  Aye.
 
         15            COMPTROLLER MILLIGAN:  Aye.
 
         16            GOVERNOR CHILES:  Opposed, no.
 
         17            TREASURER NELSON:  No.
 
         18            ATTORNEY GENERAL BUTTERWORTH:  No.
 
         19            COMMISSIONER CRAWFORD:  We're three --
 
         20            GOVERNOR CHILES:  Sounds like it passed to
 
         21       me.
 
         22            COMMISSIONER CRAWFORD:  Yeah.
 
         23            SECRETARY MORTHAM:  I voted for it.
 
         24            GOVERNOR CHILES:  Hum?
 
         25            SECRETARY MORTHAM:  I voted for it.
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          1            GOVERNOR CHILES:  You voted for it.
 
          2            TREASURER NELSON:  What's it, 4-3?
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Four-three.
 
          4            TREASURER NELSON:  Four-three.
 
          5            GOVERNOR CHILES:  By your votes, you've
 
          6       approved the hearing officer's recommendation.
 
          7            (The Florida Land and Water Adjudicatory
 
          8       Commission Agenda was concluded.)
 
          9                             *
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
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          1            MS. WETHERELL:  Board of Trustees.
 
          2            Item 1, minutes.
 
          3            SECRETARY MORTHAM:  Move approval.
 
          4            TREASURER NELSON:  Second.
 
          5            GOVERNOR CHILES:  Moved and seconded.
 
          6            Without objection, minutes are approved.
 
          7            MS. WETHERELL:  Item 2 is a modification of
 
          8       a submerged land lease.
 
          9            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         10            COMMISSIONER CRAWFORD:  Second.
 
         11            THE COURT:  Moved and seconded.
 
         12            Without objection, that's approved.
 
         13            MS. WETHERELL:  Substitute item 3 we're
 
         14       deferring at the applicant's request till
 
         15       November the 29th.
 
         16            COMPTROLLER MILLIGAN:  Move.
 
         17            ATTORNEY GENERAL BUTTERWORTH:  Move
 
         18       deferral.
 
         19            GOVERNOR CHILES:  Moved and --
 
         20            COMMISSIONER CRAWFORD:  Second.
 
         21            GOVERNOR CHILES:  -- seconded.
 
         22            Without objection, it's deferred.
 
         23            MS. WETHERELL:  Substitute item 4, we're
 
         24       recommending deferral until November 29th.
 
         25            COMMISSIONER CRAWFORD:  Move deferral.
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          1            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, defer the item.
 
          4            MS. WETHERELL:  Item 5, three purchase
 
          5       agreements for the South Savannas CARL project,
 
          6       and a waiver of survey.
 
          7            SECRETARY MORTHAM:  Move approval.
 
          8            COMMISSIONER BROGAN:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, it's approved.
 
         11            MS. WETHERELL:  Item 6, purchase agreements
 
         12       for Charlotte Harbor CARL project, and a waiver
 
         13       of survey.
 
         14            SECRETARY MORTHAM:  Move approval.
 
         15            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         16            COMMISSIONER CRAWFORD:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded.
 
         18            Without objection, it's approved.
 
         19            MS. WETHERELL:  Item 7, two purchase
 
         20       agreements.
 
         21            SECRETARY MORTHAM:  Move approval.
 
         22            COMMISSIONER CRAWFORD:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, it's approved.
 
         25            MS. WETHERELL:  Item 8, a waiver of the
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          1       marketability of title.
 
          2            SECRETARY MORTHAM:  Move approval.
 
          3            COMMISSIONER CRAWFORD:  Second.
 
          4            GOVERNOR CHILES:  Moved and seconded.
 
          5            Without objection, it's approved.
 
          6            MS. WETHERELL:  Substitute item 9,
 
          7       recommend withdrawal.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          9            COMMISSIONER CRAWFORD:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's withdrawn.
 
         12            MS. WETHERELL:  Item 10, recommend approval
 
         13       of a surplus state land bid.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         15            GOVERNOR CHILES:  Moved and --
 
         16            COMPTROLLER MILLIGAN:  Second.
 
         17            GOVERNOR CHILES:  -- seconded.
 
         18            Without objection, it's approved.
 
         19            MS. WETHERELL:  Item 11, a lease renewal
 
         20       and a delegation of authority.
 
         21            SECRETARY MORTHAM:  Move approval.
 
         22            COMMISSIONER CRAWFORD:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, it's approved.
 
         25            MS. WETHERELL:  Item 12, proposed rule
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
                                 October 24, 1995
                                                              115
 
          1       amendment.
 
          2            SECRETARY MORTHAM:  Move approval.
 
          3            COMMISSIONER CRAWFORD:  Second.
 
          4            GOVERNOR CHILES:  Moved and seconded.
 
          5            Without objection, it's approved.
 
          6            MS. WETHERELL:  Thank you.
 
          7            ATTORNEY GENERAL BUTTERWORTH:  They're
 
          8       going to dismantle the cars in a couple of
 
          9       minutes if anybody cares to watch a car being
 
         10       dismantled in 4 minutes or less.
 
         11            GOVERNOR CHILES:  Oh.  I need a motion to
 
         12       approve the dates for the '96 --
 
         13            SECRETARY MORTHAM:  So move.
 
         14            GOVERNOR CHILES:  -- Clemency --
 
         15            COMMISSIONER CRAWFORD:  Second.
 
         16            GOVERNOR CHILES:  Without objection, the
 
         17       dates are approved.
 
         18            (The Board of Trustees of the Internal
 
         19       Improvement Trust Fund Agenda was concluded.)
 
         20                             *
 
         21            (The Cabinet meeting was concluded at
 
         22       11:56 a.m.)
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                 October 24, 1995
                                                              116
 
          1                 CERTIFICATE OF REPORTER
 
          2
 
          3
 
          4   STATE OF FLORIDA:
 
          5   COUNTY OF LEON:
 
          6            I, LAURIE L. GILBERT, do hereby certify that
 
          7   the foregoing proceedings were taken before me at the
 
          8   time and place therein designated; that my shorthand
 
          9   notes were thereafter translated; and the foregoing
 
         10   pages numbered 1 through 116 are a true and correct
 
         11   record of the aforesaid proceedings.
 
         12            I FURTHER CERTIFY that I am not a relative,
 
         13   employee, attorney or counsel of any of the parties,
 
         14   nor relative or employee of such attorney or counsel,
 
         15   or financially interested in the foregoing action.
 
         16            DATED THIS 3RD day of NOVEMBER, 1995.
 
         17
 
         18
 
         19                           LAURIE L. GILBERT, RPR, CCR
                                      100 Salem Court
         20                           Tallahassee, Florida 32301
                                      (904) 878-2221
         21
 
         22
 
         23
 
         24
 
         25
                        ACCURATE STENOTYPE REPORTERS, INC.