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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
                         STATE BOARD OF ADMINISTRATION
          6                 DIVISION OF BOND FINANCE
                            STATE BOARD OF EDUCATION
          7              STATE BOARD OF CAREER EDUCATION
                           ADMINISTRATION COMMISSION
          8                  TRUSTEES OF THE INTERNAL
                              IMPROVEMENT TRUST FUND
          9
 
         10            The above agencies came to be heard before
              THE FLORIDA CABINET, Honorable Governor Chiles
         11   presiding, in the Cabinet Meeting Room, LL-03,
              The Capitol, Tallahassee, Florida, on Thursday,
         12   March 28, 1996, commencing at approximately 9:50 a.m.
 
         13
 
         14
 
         15                       Reported by:
 
         16                    LAURIE L. GILBERT
                        Registered Professional Reporter
         17                 Certified Court Reporter
                            Notary Public in and for
         18              the State of Florida at Large
 
         19
 
         20
 
         21            ACCURATE STENOTYPE REPORTERS, INC.
                                100 SALEM COURT
         22                TALLAHASSEE, FLORIDA 32301
                                  904/878-2221
         23                      1-800/934-9090
 
         24
 
         25


 


                                                              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.
 

 
                                  March 28, 1996
                                                              3
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   STATE BOARD OF ADMINISTRATION:
              (Presented by Ash Williams, Jr.,
          4       Executive Director)
 
          5    1                  Approved                  6
               2                  Approved                  6
          6    3                  Approved                  7
               4                  Approved                  7
          7    5                  Approved                  7
               6                  Approved                  7
          8    7                  Approved                  8
 
          9   DIVISION OF BOND FINANCE:
              (Presented by J. Ben Watkins, III,
         10       Director)
 
         11    1                  Approved                  9
               2                  Approved                  9
         12    3                  Approved                  9
               4                  Approved                 10
         13    5                  Approved                 13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                  March 28, 1996
                                                              4
 
          1                         I N D E X
                                   (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              STATE BOARD OF EDUCATION:
          4   (Presented by Robert L. Bedford, Ph.D.,
                  Deputy Commissioner)
          5
               1                  Report                   15
          6    2                  Deferred                 19
               3                  Deferred                 19
          7    4                  Approved                 20
               5                  Approved                 20
          8    6                  Approved                 21
               7                  Approved                 21
          9    8                  Approved                 21
               9                  Approved                 22
         10   10                  Approved                 22
              11                  Approved                 22
         11   12                  Approved                 24
              13                  Approved                 24
         12   14                  Approved                 24
              15                  Approved                 25
         13   16                  Approved                 25
              17                  Approved                 25
         14   18                  Approved                 26
              19                  Approved                 26
         15   20                  Approved                 26
              21                  Approved                 27
         16
              STATE BOARD OF CAREER EDUCATION:
         17   (Presented by Robert L. Bedford, Ph.D.,
                  Deputy Commissioner)
         18
               1                  Approved                 28
         19    2                  Approved                 28
 
         20   ADMINISTRATION COMMISSION:
              (Presented by Robert B. Bradley, Ph.D.,
         21       Secretary)
 
         22    1                  Approved                 29
               2A and 2B          Approved                 29
         23    3                  Approved                 29
               4                  Approved                 93
         24
 
         25

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

 
                                  March 28, 1996
                                                              5
 
          1                         I N D E X
                                   (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              BOARD OF TRUSTEES OF THE
          4   INTERNAL IMPROVEMENT
              TRUST FUND:
          5   (Presented by Virginia B. Wetherell,
                  Secretary)
          6
               1                  Approved                 95
          7    2                  Approved                 95
               3                  Approved                 95
          8    4                  Approved                 96
               5                  Approved                 96
          9    6                  Approved                 96
               7                  Approved                 96
         10    8                  Approved                 97
               9                  Approved                 97
         11   10                  Approved                 97
              11                  Approved                 98
         12   12                  Approved                 98
              13                  Approved                 98
         13   14                  Approved                124
 
         14
                       CERTIFICATE OF REPORTER            129
         15
                                      *
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  March 28, 1996
                                                              6
 
          1                  P R O C E E D I N G S
 
          2            (The agenda items commenced at 10:28 a.m.)
 
          3            GOVERNOR CHILES:  State Board of
 
          4       Administration.
 
          5            MR. WILLIAMS:  Item 1 is the minutes of the
 
          6       March 12 meeting.
 
          7            TREASURER NELSON:  Motion.
 
          8            COMPTROLLER MILLIGAN:  Motion.
 
          9            GOVERNOR CHILES:  Moved --
 
         10            TREASURER NELSON:  Second.
 
         11            GOVERNOR CHILES:  -- and seconded.
 
         12            Without objection, the minutes are
 
         13       approved.
 
         14            MR. WILLIAMS:  Item 2 is a fiscal
 
         15       sufficiency for the Board of Regents,
 
         16       Florida A&M student apartment facility revenue
 
         17       bonds.
 
         18            COMPTROLLER MILLIGAN:  Motion.
 
         19            TREASURER NELSON:  Second.
 
         20            GOVERNOR CHILES:  Moved and seconded.
 
         21            Without objection, they're approved.
 
         22            MR. WILLIAMS:  Item 3 is a fiscal
 
         23       sufficiency for DOT right-of-way acquisition and
 
         24       bridge construction refunding bonds.
 
         25            COMPTROLLER MILLIGAN:  Motion.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  March 28, 1996
                                                              7
 
          1            TREASURER NELSON:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, that's approved.
 
          4            MR. WILLIAMS:  Item 4 is an interest rate
 
          5       exception for the Overoaks Community Development
 
          6       District.
 
          7            COMPTROLLER MILLIGAN:  Motion.
 
          8            TREASURER NELSON:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, that's approved.
 
         11            MR. WILLIAMS:  Item 5 is an appointment to
 
         12       the Florida Hurricane Catastrophe Fund Advisory
 
         13       Council.
 
         14            COMPTROLLER MILLIGAN:  I move this.
 
         15            TREASURER NELSON:  Second.
 
         16            GOVERNOR CHILES:  Moved and seconded.
 
         17            Without objection, it's approved.
 
         18            MR. WILLIAMS:  Item 6 is authority to
 
         19       proceed with the shareholder resolution relating
 
         20       to Archer-Daniels Midland Corporation.
 
         21            COMPTROLLER MILLIGAN:  And a motion.
 
         22            TREASURER NELSON:  Second.
 
         23            GOVERNOR CHILES:  There's a motion and a
 
         24       second.
 
         25            Without objection, that's approved.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                          STATE BOARD OF ADMINISTRATION
                                  March 28, 1996
                                                              8
 
          1            MR. WILLIAMS:  Item 7, reports from the
 
          2       Executive Director.  We have investment
 
          3       performance and fund balance for February '96.
 
          4            COMPTROLLER MILLIGAN:  Motion.
 
          5            TREASURER NELSON:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, that's approved.
 
          8            MR. WILLIAMS:  Thank you.
 
          9            (The State Board of Administration Agenda
 
         10       was concluded.)
 
         11                             *
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  March 28, 1996
                                                              9
 
          1            GOVERNOR CHILES:  Division of Bond Finance.
 
          2            MR. WATKINS:  Item number 1 is approval of
 
          3       the minutes of the March 12 meeting.
 
          4            SECRETARY MORTHAM:  So move.
 
          5            COMPTROLLER MILLIGAN:  And second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            MR. WATKINS:  Item number 2 is a resolution
 
          9       authorizing the competitive sale of up to
 
         10       50 million dollars for Department of
 
         11       Transportation right-of-way acquisition
 
         12       refunding bonds.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         14            SECRETARY MORTHAM:  So move.
 
         15            GOVERNOR CHILES:  Moved and seconded.
 
         16            Without objection, that's approved.
 
         17            MR. WATKINS:  Item number 3 is a resolution
 
         18       authorizing the competitive sale of up to
 
         19       12.7 million dollars if -- for Board of Regents
 
         20       revenue bonds for a Florida A&M University
 
         21       dormitory facility.
 
         22            COMMISSIONER BROGAN:  Move approval.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, that's approved.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  March 28, 1996
                                                              10
 
          1            MR. WATKINS:  Item number 4 is a resolution
 
          2       selecting bond council for Department of
 
          3       Transportation right-of-way acquisition
 
          4       program.
 
          5            The recommendation is based on a
 
          6       competitive solicitation through an RFP, and an
 
          7       objective evaluation by a selection committee.
 
          8       And the recommendation is Greenberg, Traurig.
 
          9            SECRETARY MORTHAM:  So move.
 
         10            COMMISSIONER CRAWFORD:  Second.
 
         11            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         12            GOVERNOR CHILES:  Moved and seconded.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  Governor --
 
         14            GOVERNOR CHILES:  Without objection --
 
         15            ATTORNEY GENERAL BUTTERWORTH:  I have one
 
         16       question.
 
         17            GOVERNOR CHILES:  Yes.
 
         18            ATTORNEY GENERAL BUTTERWORTH:  You have one
 
         19       firm here, I think it's Brian T. Miller and
 
         20       Oliver.  -- or Olive.  I --
 
         21            MR. WATKINS:  Yes, sir.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Will they be
 
         23       having any -- any bond transactions with DOT, or
 
         24       any other company?
 
         25            The reason why I ask, isn't a person by the

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  March 28, 1996
                                                              11
 
          1       name of John French one of their lawyers?
 
          2            MR. WATKINS:  I'm not aware of that.
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Okay.  If he
 
          4       is, I'm --
 
          5            MR. WATKINS:  He may well be.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  I believe
 
          7       it's his philosophy -- at least it was in the
 
          8       Senate on Tuesday -- that he believes that the
 
          9       State of Florida should be handling, under the
 
         10       Attorney General, most of the -- of the legal
 
         11       work.  And that it should not go to the
 
         12       outside.
 
         13            So if you let me know when that law firm
 
         14       has anything coming up, I'd -- I'll be wanting
 
         15       to know.
 
         16            MR. WATKINS:  I'll check into that --
 
         17            ATTORNEY GENERAL BUTTERWORTH:  Thank you.
 
         18            MR. WATKINS:  -- and report back to you.
 
         19            Item number 5 is a report of award of
 
         20       five --
 
         21            GOVERNOR CHILES:  Don't you think that you
 
         22       ought to be handling these right-of-way
 
         23       matters?
 
         24            ATTORNEY GENERAL BUTTERWORTH:  Governor, we
 
         25       do have some expertise in this area, and I think

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             DIVISION OF BOND FINANCE
                                  March 28, 1996
                                                              12
 
          1       that on some of these issues, I think my law
 
          2       firms feel very strongly that the State should
 
          3       be handling the work.  The State should be
 
          4       looking towards doing it.
 
          5            And if we can do it more efficiently and
 
          6       more cost effective, and as well as the -- as
 
          7       the outside lawyers can, I think we should
 
          8       really look towards that.
 
          9            And from what I heard in the Cabinet --
 
         10       what I heard on Tuesday is that many of these
 
         11       lobbyists for tobacco think that the
 
         12       Attorney General's Office has such tremendous
 
         13       capabilities, that there is no reason really to
 
         14       go outside.
 
         15            So I think it is something which we really
 
         16       should address, Governor.
 
         17            MR. WATKINS:  Efficiency and cost
 
         18       effectiveness are one of our primary objectives
 
         19       at the Division, and we'll look into that and
 
         20       report back to you on that.
 
         21            ATTORNEY GENERAL BUTTERWORTH:  Thank you
 
         22       very much.
 
         23            MR. WATKINS:  Item number 5 is a report of
 
         24       award of five million seventy thousand revenue
 
         25       bond issues for Department of

 
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                             DIVISION OF BOND FINANCE
                                  March 28, 1996
                                                              13
 
          1       Management Services for our facilities
 
          2       management program.
 
          3            Competitive bids were received on March 7,
 
          4       1996, and the bond issue was awarded to the low
 
          5       bidder at an interest rate of approximately
 
          6       five-and-a-half percent.
 
          7            GOVERNOR CHILES:  A nice interest rate.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Yeah.
 
          9            GOVERNOR CHILES:  Like it.
 
         10            MR. WATKINS:  Thank you, sir.
 
         11            GOVERNOR CHILES:  Is there a motion?
 
         12            COMMISSIONER BROGAN:  Second.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         14            GOVERNOR CHILES:  And seconded.
 
         15            Without objection, that's approved.
 
         16            MR. WATKINS:  Very good.
 
         17            (The Division of Bond Finance Agenda was
 
         18       concluded.)
 
         19                             *
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              14
 
          1            GOVERNOR CHILES:  State Board of Education.
 
          2            DR. BEDFORD:  Good morning,
 
          3       Governor Chiles, members of the State Board of
 
          4       Education.
 
          5            Take a moment and welcome back
 
          6       Governor Chiles and Commissioner Brogan from the
 
          7       Education Summit.  I'm sure we'll be hearing
 
          8       later about the program that was presented.
 
          9            We're grateful to have you back.
 
         10            First item, Readiness for College Report.
 
         11       I know that each of you have received the copy
 
         12       during Cabinet aides briefing.  We offered to do
 
         13       the full half hour report, they declined and
 
         14       thought maybe you wouldn't want to hear that.
 
         15            For the record, I would just like to read
 
         16       into the record that the college -- the
 
         17       Readiness for College Report is an annual report
 
         18       to the Florida Legislature, the State Board of
 
         19       Education, and the school districts.
 
         20            And we're aware that it reflects those
 
         21       graduates from our school that were first time
 
         22       entrants into community college or the public
 
         23       universities in Florida, and do not reflect the
 
         24       total graduates.
 
         25            The information that you received did

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              15
 
          1       express the fact that there was a slight decline
 
          2       in each of the last three years in the
 
          3       percentage of all students passed in all areas.
 
          4            And I think the item that might -- we might
 
          5       want to draw attention to is, this year that we
 
          6       did notice an increase in the performance of
 
          7       community college students, and their increase
 
          8       was in the area of mathematics.
 
          9            And I think you have all the material in
 
         10       the report, and the report is for your
 
         11       information.
 
         12            GOVERNOR CHILES:  Troubling is the bullet
 
         13       that you have that students of all ethnic groups
 
         14       showed a decline in overall performance.
 
         15            DR. BEDFORD:  That is correct.  The --
 
         16       among the ethnic groups that we maintain data
 
         17       on, Asians and whites were better prepared than
 
         18       American Indians, blacks, and Hispanics.
 
         19            And in the gender, females were better
 
         20       prepared in writing; while males were better
 
         21       prepared in mathematics, reading, and in all
 
         22       areas.
 
         23            GOVERNOR CHILES:  Well, we've known that
 
         24       there's been this difference.
 
         25            DR. BEDFORD:  Right.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              16
 
          1            GOVERNOR CHILES:  But the troubling thing
 
          2       is to see that their performance is --
 
          3            DR. BEDFORD:  Right.
 
          4            GOVERNOR CHILES:  -- going down, rather
 
          5       than up because we have been seeing it inching
 
          6       up.  And we see that in the overall performance
 
          7       here.  Not quite a percentage point, but it's --
 
          8            DR. BEDFORD:  Yes, sir.
 
          9            GOVERNOR CHILES:  -- still a good trend.
 
         10       But to see this going down, what -- do you have
 
         11       any reason for that?  I mean --
 
         12            DR. BEDFORD:  When I -- when I come before
 
         13       you at our next Cabinet meeting and address the
 
         14       Cabinet on the frameworks and the benchmarks and
 
         15       where we hope to go with assessment, I think
 
         16       that is how we're going to address all
 
         17       students.
 
         18            And we firmly believe all students can
 
         19       learn, and we believe that we need to establish
 
         20       a system in Florida based on some common
 
         21       frameworks and benchmarks in all of the counties
 
         22       in Florida, and then hold them accountable for
 
         23       that.
 
         24            And at the next meeting on April 9th, I'll
 
         25       be spending quite a bit of time discussing that

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              17
 
          1       with you.
 
          2            GOVERNOR CHILES:  Very good.
 
          3            Yes, sir.
 
          4            TREASURER NELSON:  Governor, the percent in
 
          5       high school passing all of the subjects keeps
 
          6       going down.
 
          7            For the sixth year in a row, it's gone
 
          8       down.  It's my understanding that one of the
 
          9       problems is on the low scores on the math is
 
         10       that some of the students are taking that test
 
         11       which has algebra, but they don't have algebra
 
         12       in school.
 
         13            DR. BEDFORD:  Right.
 
         14            TREASURER NELSON:  Is that what is skewing
 
         15       the test down?
 
         16            DR. BEDFORD:  I don't want to say that that
 
         17       is the only thing that is involved.  But there
 
         18       is definitely -- and we know, and we've
 
         19       addressed it in the Legislature this year -- we
 
         20       know that this test, that SAT tests, rely very
 
         21       heavily on the background of the students; and
 
         22       we know, and we have made reports that if they
 
         23       take algebra and geometry, they will do
 
         24       significantly better on these exams.
 
         25            We have asked for legislation to mandate

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              18
 
          1       the taking of Algebra I at the high school level
 
          2       in hopes that it will help correct this
 
          3       problem.  And that's for all students.  We're
 
          4       looking at every student being able to do that.
 
          5            COMMISSIONER BROGAN:  We have -- we've
 
          6       also, Commissioner, asked in legislation to
 
          7       constrain the number of Level I courses that a
 
          8       student can take toward graduation.  Those
 
          9       Level I courses are the old functional courses,
 
         10       which, put enough of them together, simply don't
 
         11       allow a student to graduate with enough skills
 
         12       to be able to access postsecondary education
 
         13       with the skills that they need to succeed.
 
         14            And for years, we've been seeing large
 
         15       numbers of students move through the system
 
         16       collecting up in high school large numbers of
 
         17       Level I courses, which directly -- in my
 
         18       opinion, directly contributes to exactly what
 
         19       you're saying.  That they are seeing on those
 
         20       entry level tests for the first time a lot of
 
         21       that information, rather than needing
 
         22       remediation in it.  So we hope that'll make a
 
         23       difference, too.
 
         24            As well as Dr. Bedford mentioned, a lot of
 
         25       the things that we'll talk about at the next

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              19
 
          1       Cabinet meeting.
 
          2            DR. BEDFORD:  Yeah.  One other item that we
 
          3       are working on, of course, is the critically low
 
          4       performing schools.  Some of those schools were
 
          5       high schools, and they were identified by low
 
          6       math scores.
 
          7            And so we are working with those schools
 
          8       and those districts in those areas to improve
 
          9       those particular students also.
 
         10            GOVERNOR CHILES:  Thank you.
 
         11            DR. BEDFORD:  Thank you.
 
         12            Item 2 and 3, with your permission, I would
 
         13       ask to defer those until the next State Board
 
         14       meeting on April 9th.  We have a technicality
 
         15       that we need to correct.
 
         16            With your permission, we would defer until
 
         17       April 9.
 
         18            GOVERNOR CHILES:  Without objection, is
 
         19       there a motion and second, we will defer that.
 
         20            You moved.
 
         21            COMMISSIONER BROGAN:  I move.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Moved.
 
         23            GOVERNOR CHILES:  You seconded.
 
         24            ATTORNEY GENERAL BUTTERWORTH:  I seconded.
 
         25            GOVERNOR CHILES:  Yes, sir.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              20
 
          1            DR. BEDFORD:  Item 4, an amendment to
 
          2       Rule 6A-1.012, purchasing policies.  Our
 
          3       recommendation is to approve as amended.
 
          4            COMMISSIONER BROGAN:  So move.
 
          5            SECRETARY MORTHAM:  Move.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            DR. BEDFORD:  Item 5 is repeal
 
          9       Chapter 6A-1, Sections .042, .05, .031, .066,
 
         10        .069, .094, .0952, .09521, and .0982.
 
         11            Recommended approval.
 
         12            COMMISSIONER BROGAN:  Move approval.
 
         13            SECRETARY MORTHAM:  Second.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, it's approved.
 
         16            DR. BEDFORD:  Item 6 is a correction of
 
         17       some action that we have taken previously.
 
         18       Based upon a recommendation of Joint
 
         19       Administrative Procedures Commission, we are
 
         20       coming before you to amend the requirements for
 
         21       programs in courses which are funded through the
 
         22       Florida Educational Finance Program, for which a
 
         23       student may earn credit toward high school
 
         24       graduation.
 
         25            COMMISSIONER BROGAN:  Move approval.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              21
 
          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            DR. BEDFORD:  Item 7, repeal of various
 
          5       sections of Chapter 6A, dash, 3 dealing with bus
 
          6       rules.
 
          7            COMMISSIONER BROGAN:  Move approval as
 
          8       listed.
 
          9            SECRETARY MORTHAM:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's approved.
 
         12            DR. BEDFORD:  Item 8, amendment 6A, dash,
 
         13       3.006, pool purchase need for purchase of
 
         14       equipment and contractual needs, Department of
 
         15       Management Services, Division of Purchasing,
 
         16       authorized to negotiate contracts.  Once again
 
         17       deals with school buses.
 
         18            COMMISSIONER BROGAN:  Move approval.
 
         19            SECRETARY MORTHAM:  Second.
 
         20            GOVERNOR CHILES:  Moved and seconded.
 
         21            Without objection, it's approved.
 
         22            DR. BEDFORD:  Item 9, Rule 6A, dash,
 
         23       3.0141, amendment to employment of school bus
 
         24       drivers.
 
         25            COMMISSIONER BROGAN:  Move approval.

 
                        ACCURATE STENOTYPE REPORTERS, INC.
 

                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              22
 
          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            DR. BEDFORD:  Item 10, amendment to
 
          5       Rule 6A, dash, 3.017, responsibility of --
 
          6       responsibilities of school districts for student
 
          7       transportation.
 
          8            COMMISSIONER BROGAN:  Move approval.
 
          9            SECRETARY MORTHAM:  Second.
 
         10            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         11            GOVERNOR CHILES:  Moved and seconded.
 
         12            Without objection, it's approved.
 
         13            DR. BEDFORD:  Item 11 is new.  It's a
 
         14       Rule 6A, dash, 4.0233, specialization
 
         15       requirements for certification in the area of
 
         16       middle grades; integrated curriculum, which
 
         17       would be grades 5 through 9.
 
         18            We would ask you to approve this rule as
 
         19       amended.  I believe you received copies of the
 
         20       amendment this week.
 
         21            COMMISSIONER BROGAN:  Move approval as
 
         22       amended.
 
         23            SECRETARY MORTHAM:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.

 
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                             STATE BOARD OF EDUCATION
                                  March 28, 1996
                                                              23
 
          1            SECRETARY MORTHAM:  Governor --
 
          2            GOVERNOR CHILES:  Yes, ma'am.
 
          3            SECRETARY MORTHAM:  -- if I could just make
 
          4       a comment.
 
          5            On this particular rule, I -- I'd just like
 
          6       to commend the Department.  I think that this is
 
          7       really going to be a step forward --
 
          8            DR. BEDFORD:  Yes.
 
          9            SECRETARY MORTHAM:  -- in middle schools,
 
         10       and no doubt that is a difficult age to -- to
 
         11       deal with, and I -- I just think that this new
 
         12       rule is very, very good for education in
 
         13       general.
 
         14            COMMISSIONER BROGAN:  Thank you,
 
         15       Secretary.
 
         16            It's -- we hope it's going to be symbolic
 
         17       of much of the certification changes that we
 
         18       hope to make when our task forces are completed
 
         19       and we come back with those recommendations.
 
         20            But having been a middle school
 
         21       administrator under the old system, and then
 
         22       under the previous system, the system that we're
 
         23       changing now, I can tell you that it will afford
 
         24       much greater flexibility to -- to be able to
 
         25       schedule teachers and students more

 
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                                  March 28, 1996
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          1       appropriately at the middle school level, and
 
          2       I think make some dramatic changes in the way
 
          3       we're approaching that middle school
 
          4       curriculum.  So we appreciate that.
 
          5            Thank you, Governor.
 
          6            GOVERNOR CHILES:  Yes, sir.
 
          7            DR. BEDFORD:  Did we vote on -- I'm sorry.
 
          8            Okay.  Item 12, repeal 6A, dash, 5 section.
 
          9            COMMISSIONER BROGAN:  Move approval.
 
         10            SECRETARY MORTHAM:  Second.
 
         11            GOVERNOR CHILES:  Moved and seconded.
 
         12            Without objection, it's approved.
 
         13            DR. BEDFORD:  Item 13, repeal in
 
         14       Chapter 6A, dash, 6, various sections.
 
         15            COMMISSIONER BROGAN:  Move approval.
 
         16            SECRETARY MORTHAM:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded.
 
         18            Without objection, it's approved.
 
         19            DR. BEDFORD:  Item 14, repeal Rule 6A,
 
         20       dash, 10.035, general requirements for
 
         21       vocational education instruction funding.
 
         22            COMMISSIONER BROGAN:  Move approval.
 
         23            SECRETARY MORTHAM:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.

 
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          1            DR. BEDFORD:  Item 15, an amendment to
 
          2       Rule 6A, dash, 20.039, Florida Teacher
 
          3       Scholarship and Forgivable Loan Program.
 
          4            COMMISSIONER BROGAN:  Move approval.
 
          5            SECRETARY MORTHAM:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            DR. BEDFORD:  Item 16, an amendment.
 
          9       Rule 6A, dash, 20.042, Occupational Therapists
 
         10       and Physical Therapists Scholarship Loan
 
         11       Program.
 
         12            COMMISSIONER BROGAN:  Move approval.
 
         13            SECRETARY MORTHAM:  Second.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, it's approved.
 
         16            DR. BEDFORD:  Item 17, new.  Rule 6A, dash,
 
         17       20.099, Florida Federal Family Education Loan
 
         18       Program.
 
         19            COMMISSIONER BROGAN:  Move approval.
 
         20            SECRETARY MORTHAM:  Second.
 
         21            GOVERNOR CHILES:  Moved and seconded.
 
         22            Without objection, it's approved.
 
         23            DR. BEDFORD:  Item 18 is a repeal of
 
         24       Section 6 -- excuse me -- of 6A, dash, 20.
 
         25            COMMISSIONER BROGAN:  Move approval.

 
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                                                              26
 
          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            DR. BEDFORD:  Item 19, we have -- you have
 
          5       received reports and recommendations on State
 
          6       funding for research and public service in the
 
          7       State University System, and reports on State
 
          8       student financial aid.
 
          9            It is a report for acceptance.  If you have
 
         10       questions, I have Mr. Bill Proctor in the
 
         11       audience.  Your pleasure.
 
         12            GOVERNOR CHILES:  I think you can move --
 
         13            SECRETARY MORTHAM:  Move to accept.
 
         14            COMMISSIONER CRAWFORD:  Second.
 
         15            GOVERNOR CHILES:  It's been moved and
 
         16       seconded.
 
         17            Without objection, it's approved.
 
         18            DR. BEDFORD:  Thank you.
 
         19            Item 20, a request to exercise the right of
 
         20       eminent domain, deferred from the February 27th,
 
         21       1996, Cabinet meeting.
 
         22            COMMISSIONER BROGAN:  Move approval.
 
         23            SECRETARY MORTHAM:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.

 
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          1            DR. BEDFORD:  Item 21, appointment to the
 
          2       State Board of Community Colleges,
 
          3       Alberta K. Wilson, a term through
 
          4       September 30th, 1997.
 
          5            SECRETARY MORTHAM:  Move approval.
 
          6            COMMISSIONER BROGAN:  Move approval.
 
          7            Second.
 
          8            GOVERNOR CHILES:  Moved and seconded.
 
          9            Without objection, it's approved.
 
         10            (The State Board of Education Agenda was
 
         11       concluded.)
 
         12                             *
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25

 
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                         STATE BOARD OF CAREER EDUCATION
                                  March 28, 1996
                                                              28
 
          1            GOVERNOR CHILES:  State Board of Career
 
          2       Education.
 
          3            DR. BEDFORD:  Item 1, minutes of the
 
          4       meeting on --
 
          5            COMMISSIONER BROGAN:  Move minutes.
 
          6            DR. BEDFORD:  -- on January 23rd, 1996.
 
          7            GOVERNOR CHILES:  Moved and seconded.
 
          8            Without objection, they're approved.
 
          9            DR. BEDFORD:  Item 2 is reports and
 
         10       recommendation of the Florida Council on
 
         11       Vocational Education.
 
         12            Once again, I have Chuck Kronz in the
 
         13       audience if you would like to have any
 
         14       questions.
 
         15            Otherwise we would ask you to --
 
         16            COMMISSIONER BROGAN:  I'll move approval.
 
         17            SECRETARY MORTHAM:  Second.
 
         18            DR. BEDFORD:  -- approve --
 
         19            GOVERNOR CHILES:  Approved and seconded.
 
         20            Without objection, it's approved.
 
         21            (The State Board of Career Education Agenda
 
         22       was concluded.)
 
         23                             *
 
         24
 
         25

 
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          1            GOVERNOR CHILES:
 
          2       Administrative Commission.
 
          3            DR. BEDFORD:  Thank you.
 
          4            GOVERNOR CHILES:  Motion on the minutes.
 
          5            COMMISSIONER BROGAN:  So move.
 
          6            SECRETARY MORTHAM:  Move.
 
          7            GOVERNOR CHILES:  Moved and seconded.
 
          8            Without objection, it's approved.
 
          9            DR. BRADLEY:  Item number 2-A and B,
 
         10       recommend the transfer of general revenue
 
         11       appropriations in Department of Health and
 
         12       Rehabilitative Services.
 
         13            SECRETARY MORTHAM:  So move.
 
         14            GOVERNOR CHILES:  Moved.
 
         15            COMMISSIONER CRAWFORD:  Second.
 
         16            GOVERNOR CHILES:  Seconded.
 
         17            Without objection, it's approved.
 
         18            DR. BRADLEY:  Item number 3, recommend the
 
         19       transfer of general revenue appropriations in
 
         20       the Department of Labor and Employment Security.
 
         21            SECRETARY MORTHAM:  Move approval.
 
         22            COMMISSIONER CRAWFORD:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, it's approved.
 
         25            DR. BRADLEY:  Item number 4,

 
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          1       Administration Commission, request authorization
 
          2       for staff to notice the proposed rule amending
 
          3       the Monroe County Comprehensive Plan.
 
          4            Testimony received at the February 27th
 
          5       Administration Commission is incorporated as
 
          6       part of the official record of this proceeding.
 
          7            Additionally, there are several speakers to
 
          8       be heard today.  And I can introduce them in a
 
          9       second.
 
         10            GOVERNOR CHILES:  All right.
 
         11            DR. BRADLEY:  What we have is -- we have a
 
         12       group of citizens from Monroe County that I'd
 
         13       like --
 
         14            GOVERNOR CHILES:  I understand some of
 
         15       those citizens would like to catch an 11:30
 
         16       plane.  I wonder if we could put those on first.
 
         17            DR. BRADLEY:  Yes, sir.
 
         18            GOVERNOR CHILES:  And see if there's a way
 
         19       of accommodating.
 
         20            Do we have a time limitation here now?
 
         21            DR. BRADLEY:  We're going to give each of
 
         22       the citizens 2 minutes, Governor.
 
         23            (Commission Crawford exited the room.)
 
         24            GOVERNOR CHILES:  All right.  Well,
 
         25       you're -- we want to try to get those especially

 
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          1       before us that haven't had a chance to speak
 
          2       before.  This matter's been before the Cabinet
 
          3       before.
 
          4            DR. BRADLEY:  Yes, sir.  Why don't --
 
          5            GOVERNOR CHILES:  And I certainly want to
 
          6       try to put those on that could have a chance of
 
          7       catching that plane if they're out of here in
 
          8       the next 20 minutes.
 
          9            DR. BRADLEY:  Yes, sir.  We have a group of
 
         10       citizens.  The -- Kim Works of the Key West
 
         11       Chamber of Commerce is the first one who signed
 
         12       up here.
 
         13            If --
 
         14            GOVERNOR CHILES:  Somebody needs to try to
 
         15       help me organize this so that --
 
         16            DR. BRADLEY:  Right.  And I'll get
 
         17       Teresa Tinker to line up the remaining people so
 
         18       that --
 
         19            GOVERNOR CHILES:  All right.
 
         20            DR. BRADLEY:  -- they're next.
 
         21            I'll tap them on the shoulder when their
 
         22       2 minutes are up, Governor.
 
         23            GOVERNOR CHILES:  All right.  I hope y'all
 
         24       understand, we're trying to do this to
 
         25       accommodate everybody and give you a chance to

 
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          1       speak, but also see if you can catch a plane.
 
          2            MS. WORKS:  Yes, sir.  Thank you for the
 
          3       time.
 
          4            I'm Kim Works, President of the Key West
 
          5       Chamber of Commerce.  We have sent each and
 
          6       every one of you a resolution concerning the
 
          7       State amendments, and we understand that some
 
          8       changes have been made.
 
          9            We understand that you are working with us,
 
         10       and thank you for that.  Thank you for listening
 
         11       to us.  We have a lot of -- long five years
 
         12       ahead of us.  So we appreciate the working
 
         13       and -- and ask you to continue to work with us
 
         14       and Key West and Monroe County.
 
         15            GOVERNOR CHILES:  Thank you.
 
         16            DR. BRADLEY:  Teresa has the next name,
 
         17       Governor.
 
         18            GOVERNOR CHILES:  Maybe if people would
 
         19       just kind of come forward that are going to
 
         20       speak, and then we'll save a little time.
 
         21            Yes, sir.
 
         22            MR. GONZALEZ:  Governor, Cabinet members,
 
         23       Jose Gonzalez.  I'm a former president of the
 
         24       Chamber of Commerce, and also I serve on our
 
         25       land authority in the County.

 
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          1            I know you've heard a lot from our County.
 
          2       And I just basically want to urge you all to --
 
          3       in further review of our plan to take into
 
          4       account this whole question of funding.
 
          5            Clearly our small County of 80,000 people
 
          6       cannot in any way begin to absorb some of the
 
          7       mandates that are being created for us.
 
          8            And even though we know we've been working
 
          9       together, and there are some that feel that
 
         10       maybe we haven't been working together as well
 
         11       as we should, the bottom line is is that
 
         12       whatever we ultimately do for our County, in the
 
         13       interest of not just the residents of
 
         14       Monroe County, but the rest of the state, that
 
         15       we do it in a way that does not break the people
 
         16       of Monroe County.
 
         17            So I urge you again, in looking at
 
         18       everything that you are contemplating with us,
 
         19       to take into account this whole funding
 
         20       question.  It's paramount to us.
 
         21            Thank you.
 
         22            GOVERNOR CHILES:  Thank you, sir.
 
         23            (Commissioner Crawford entered the room.)
 
         24            MR. FAGAN:  Good morning, Governor, members
 
         25       of the Cabinet.  My name is Michael Fagan.  I'm

 
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          1       here on behalf of the Florida Keys
 
          2       Board of Realtors.  We're the Upper Keys Board
 
          3       encompassing the area from Key Largo to Layton.
 
          4            Thank you for giving us the opportunity to
 
          5       speak.  I will speak rather briefly on the issue
 
          6       of the cesspools being tied into the number of
 
          7       permits being issued.
 
          8            Basically removing a cesspool allows
 
          9       another one of the permits to be issued up to
 
         10       255 annually.
 
         11            The -- the ROGO permit application process
 
         12       has been going very well.  We think it's a
 
         13       mistake, however, to tie the cesspool removal in
 
         14       with new construction.
 
         15            The cesspools are mistakes of the past.
 
         16       New construction in line with current building
 
         17       regulations, and sewage treatment regulations,
 
         18       only enhance our environment.  We must have
 
         19       moderate growth in the Keys.  If we don't, we
 
         20       will stagnate and die.  We are totally tourist
 
         21       based, some growth, housing for workers is all
 
         22       needed.
 
         23            To force new owners to be tied into the
 
         24       removal of cesspools we think is an onerous
 
         25       burden on these owners.  And there should be

 
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          1       other methods for removing the cesspools.
 
          2            We also think much more needs to be done to
 
          3       study the nearshore water qualities.  Instead of
 
          4       100 percent of the blame for this being placed
 
          5       on the residents, nothing going to Big Sugar --
 
          6            (Attorney General Butterworth exited the
 
          7       room.)
 
          8            MR. FAGEN:  -- other nutrient dumpers into
 
          9       the bay, we think that the Cabinet, and,
 
         10       Governor, you should take a much broader look at
 
         11       what's happening in our wonderful islands.
 
         12            And, in fact, we'd love to invite all of
 
         13       you down to come visit our beautiful islands and
 
         14       see what we're talking about.
 
         15            So we urge you to reconsider tying cesspool
 
         16       removal in with the issuance of new building
 
         17       permits.
 
         18            Thank you very much.
 
         19            GOVERNOR CHILES:  Thank you.
 
         20            MR. ROSENBLATT:  I'm Joel Rosenblatt.  I'm
 
         21       a consulting engineer from the -- Monroe County.
 
         22            I sent a substantial letter -- I think each
 
         23       of you folks got a copy after the last meeting
 
         24       through Teresa Tinker, which was intended to
 
         25       review everything that was discussed at the

 
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          1       previous meeting.  Two minutes is not enough
 
          2       time to attack it.
 
          3            But there was something that has come up
 
          4       since I wrote that letter, which further
 
          5       emphasized a point I was making.
 
          6            Nobody has identified the sources of
 
          7       whatever water quality problems people have
 
          8       imagined are our problem.
 
          9            And in that letter, I had recommended a
 
         10       type of study that could be done to plot
 
         11       contours of water quality across the Keys from
 
         12       Hawk's Channel, and see where the variations are
 
         13       occurring to identify the sources of where some
 
         14       sort of pollutant or other must be entering.
 
         15            What has happened since then is that,
 
         16       in fact, such a survey was conducted.  It was
 
         17       conducted by the Florida Marine Sanctuary people
 
         18       who retained people from the Rosenstiel School
 
         19       at the University of Miami to conduct the
 
         20       survey.
 
         21            The expectation by the Marine Sanctuary
 
         22       people in ordering that study was to take the
 
         23       contours that were determined as evidence for
 
         24       their budget hearings which were recently held
 
         25       in Washington.

 
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          1            The survey didn't give them data to justify
 
          2       anything, and they haven't distributed it or
 
          3       published it.
 
          4            What it did show is that of all of the
 
          5       identifiable foreign materials, primarily
 
          6       nutrients, there was a uniform gradient all the
 
          7       way from the reef across Hawk's Channel, and
 
          8       around the surrounding islands.  You couldn't
 
          9       see an increase in the vicinity of an island,
 
         10       which if the island had been a source, you
 
         11       should have seen.
 
         12            You can sit here and spend 600 million
 
         13       dollars on sewage treatment plants.  And having
 
         14       done it, there won't be a measurable change in
 
         15       the water quality adjacent to the islands.
 
         16            What are we doing?  The fact that a group
 
         17       of people are screaming about trying to drive
 
         18       people out of the Keys, which is what the real
 
         19       agenda is.  If you look at what has been
 
         20       promoted by these same people doing these
 
         21       things, they suddenly became concerned about
 
         22       hurricane evacuation.  That's got nothing to do
 
         23       with the wilderness or the environment.
 
         24            It does -- only has one thing to tie it
 
         25       in.  It's a mechanism for chasing away people.

 
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          1       And they don't show up at hearings if they're
 
          2       concerned about public safety for the budget for
 
          3       the police department, or ambulances, or fire
 
          4       trucks.  It's a matter of no people.
 
          5            If that is a political advantage, I would
 
          6       like to suggest one thing before I complete.
 
          7       All over the country when you drive down a road,
 
          8       there'll be a sign that says welcome, usually
 
          9       the Kiwanis Club or the Rotary or the Chamber of
 
         10       Commerce.
 
         11            If this organization intends that it be a
 
         12       policy to stop people from going to the Keys,
 
         13       you can get nationwide publicity by erecting a
 
         14       big billboard in Homestead as you approach the
 
         15       18-mile stretch that says, if you are coming to
 
         16       live in the Keys, please make a U-turn at the
 
         17       next story and go back where you came from, you
 
         18       are not welcome.
 
         19            GOVERNOR CHILES:  Thank you, sir.
 
         20            MR. SMITH:  Governor Chiles, members of
 
         21       the -- of the Board, my name is Bill Smith, and
 
         22       I'm before you as the Executive Director of the
 
         23       Florida Keys Contractors Association.
 
         24            I'd like to start out by saying, I
 
         25       certainly appreciate that for me, you have

 
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          1       reduced this issue down to one primary issue.
 
          2       And that is the stability of the construction
 
          3       industry in Monroe County.
 
          4            As I stood before you back in February, I
 
          5       explained how we had agreed to a substantial
 
          6       reduction of permits down to 255 units
 
          7       annually.  And we did that because we
 
          8       acknowledge a need for reasonable growth
 
          9       control.
 
         10            Representing the Florida Keys Contractors
 
         11       Association, I remain fearful though that the
 
         12       way the rule is presently written, that we will
 
         13       not continue to authorize the 255 permits in
 
         14       Monroe County.
 
         15            I'm standing before you respectfully
 
         16       requesting that the Governor and this Cabinet
 
         17       separate the possibility of any reduction from
 
         18       that 255.  If the State does not provide the
 
         19       funding for the five-year plan, or if there are
 
         20       any other impediments, we feel that you should
 
         21       have no reason for reducing the permits to 255.
 
         22            Thank you for this time.  And please
 
         23       consider our --
 
         24            GOVERNOR CHILES:  Thank you.
 
         25            MR. SMITH:  -- our consideration.

 
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          1            MR. PONTIN:  Governor and Cabinet members,
 
          2       for the record, my name is Captain H.T. Pontin,
 
          3       a 35-year resident of the Keys.
 
          4            I very seldom use the word Captain, but
 
          5       today I feel that it will give credence to what
 
          6       I'm saying.
 
          7            I've been a licensed captain in the
 
          8       U.S. Coast Guard for over 50 years.  I've been
 
          9       involved in boats and ships from bonefish skiffs
 
         10       to supertankers.
 
         11            To improve the water quality in the Keys,
 
         12       millions of dollars have been spent for studies,
 
         13       but nothing for cure.  The biggest part of the
 
         14       problem is Florida Bay.
 
         15            The overflight surveys printed by the
 
         16       Miami Herald every month show polluted waters
 
         17       from Florida Bay is being carried by the
 
         18       currents into the Florida Keys.  Last month I
 
         19       asked before you people for a description of
 
         20       inshore waters, and to what extent they were
 
         21       polluted by sewage.
 
         22            The Monroe County tax rolls show there are
 
         23       37,126 houses, trailers, and condos in the
 
         24       County, not the cities.
 
         25            We are asking these people to go into debt

 
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          1       for 240 million, or whatever the figure is
 
          2       today, to erase a problem that you can't prove
 
          3       it exists to any significant extent.
 
          4            You want to mandate that the people of
 
          5       Monroe County put in sewage treatment plants
 
          6       costing millions of dollars with no funding.
 
          7            My septic system was put in under the same
 
          8       requirements as the old he coons for his
 
          9       cook shack.  Both are working just fine.  Why
 
         10       shouldn't he and everyone else in the state with
 
         11       a septic system come up with the money for
 
         12       treatment plants in the hot spots.  I hate being
 
         13       threatened or discriminated --
 
         14            (Attorney General Butterworth entered the
 
         15       room.)
 
         16            MR. PONTIN:  -- against.  It's just not the
 
         17       American way.
 
         18            Thank you.
 
         19            GOVERNOR CHILES:  Thank you, Captain.
 
         20            MR. HORAN:  My name is David Paul Horan,
 
         21       and I appear with numerous directors of the
 
         22       Greater Key West Chamber of Commerce.  We flew
 
         23       up this morning in the -- some pretty foggy
 
         24       stuff to get in here and say something to you.
 
         25            People in Monroe County owe a tremendous

 
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          1       amount to your cook shack, Governor.  Because
 
          2       that brought it, I think, to a real great extent
 
          3       home on what some of the things we'd been facing
 
          4       for years and years, Catch-22.  You just can't
 
          5       get there from here.
 
          6            In 1979, Governor Askew and his
 
          7       administration lobbied this Legislature up here
 
          8       for the designation of Monroe County as an area
 
          9       of Critical State Concern.  It had previously
 
         10       been declared unconstitutional by -- in a case
 
         11       brought by the City of Key West and Cross Key
 
         12       Waterways.
 
         13            Three eighty oh five five two, sub, four
 
         14       that was passed by the Legislature in 1979 said
 
         15       this with regard to the Critical State Concern
 
         16       designation.  This is a direct quote that said:
 
         17       It shall be repealed by the Commission no
 
         18       earlier than July 1st, 1980, and no later than
 
         19       July 1st, 1982, close quote.
 
         20            That's the way Critical Concern for the
 
         21       Keys was lobbied in the Legislature.
 
         22            Now, a few years ago, our State
 
         23       Supreme Court in a case that I brought up and
 
         24       argued in Young versus DCA, reminded the
 
         25       administrative form of government in this state

 
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          1       that local government decisions are
 
          2       presumptively valid.
 
          3            I understand there's a bill now to repeal
 
          4       that, and to put DCA back into the position
 
          5       where their decisions are presumptively valid.
 
          6       And I would suggest to you, that was tried once
 
          7       before, and if you read Young versus Askew,
 
          8       you're going to find out that that's not going
 
          9       to fly.
 
         10            Now we have HRS permitting activity that's
 
         11       become our problem.  Our best guess on central
 
         12       sewage treatment is between 200 and
 
         13       250 million.  Florida Bay is our major problem.
 
         14            Our central sewage treatment for the
 
         15       Middle Keys is not our major problem.  Now, if
 
         16       we can't get State or Federal funding, we cannot
 
         17       afford to do what DCA wants us to do.
 
         18            If somebody denies a building permit to
 
         19       somebody who has in good faith paid ad valorem
 
         20       taxes on a single family lot down there, and it
 
         21       is ultimately decided that that's a taking, then
 
         22       compensation's going to be due.  Somebody's got
 
         23       to pay it.
 
         24            It simply cannot be the fiscal
 
         25       responsibility of Monroe County or the citizens

 
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          1       of Monroe County to pay those inverse
 
          2       condemnation claims.  It has got to be the
 
          3       responsibility of State government.
 
          4            If it's State Critical Concern, it ought to
 
          5       be a State responsibility.  Our kids couldn't
 
          6       pay that bill.
 
          7            Thank you.
 
          8            GOVERNOR CHILES:  Thank you, sir.
 
          9            MR. SCHRADER:  Good morning.  My name is
 
         10       Chris Schrader.  I'm a 26-year resident of
 
         11       Monroe County.  My background is in biology from
 
         12       Marquette University.  I've been involved in
 
         13       wastewater treatment in the Keys for 25 years.
 
         14            The original thrust of the drive for
 
         15       central sewer in Monroe County came from the
 
         16       materials mainly in the press stating that the
 
         17       reef was being devastated by sewage and
 
         18       so forth.
 
         19            Eventually people actually got around to
 
         20       going out and measuring what was happening on
 
         21       the reef, and they found out that on the reef,
 
         22       that the levels and the sediments and the -- and
 
         23       the water column of nutrients, nitrogen and
 
         24       phosphorus, were actually -- were actually lower
 
         25       than some of the best reefs in the Bahamas.

 
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          1            And once that -- and that's in this.  I
 
          2       will leave this with you.  This is from the
 
          3       Marathon Wastewater Facilities Plant.
 
          4            Once that fell by the wayside, all of a
 
          5       sudden, canal waters and the waters close to the
 
          6       canals became very important in the drive for
 
          7       central sewer.  And there are a whole lot of
 
          8       nutrient sources to the canals, and I'm not even
 
          9       going to go into -- there's no time to go into
 
         10       the details.
 
         11            We have no idea what portion manmade
 
         12       nutrients are in those canals, and we suspect
 
         13       that it is quite a low portion.
 
         14            Furthermore, there are means of cleaning up
 
         15       canals mechanically with aeration, and other
 
         16       sources -- and other technologies.  And my
 
         17       suggestion, to put it very -- very bluntly and
 
         18       quickly, is let's spend a few million dollars to
 
         19       clean up every canal in Monroe County.  And
 
         20       after they've had a year or two to -- to
 
         21       remediate, let's go in and see where we might
 
         22       still have health hazards.  And then see how
 
         23       much sewage plant and what areas have to be
 
         24       dealt with.
 
         25            But we could clean up all the canals in

 
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          1       Monroe County for a pittance of what the
 
          2       Marathon project is going to cost.
 
          3            As a matter of fact, I have another
 
          4       document here to Monroe County in 1991.  This is
 
          5       a staff memo espousing the values of cleaning
 
          6       those canals up with the -- with the methods
 
          7       I've enumerated.
 
          8            I think -- I also sit on the Technical
 
          9       Advisory Committee to the sanctuary, and I've
 
         10       been on water quality committees over the
 
         11       years.  And I've heard it all come and go.
 
         12            And I think we need to go back, as the
 
         13       gentleman said earlier, and take a close look at
 
         14       the real nutrient situation.
 
         15            People say, well, we can't study it to
 
         16       death, we've got a crisis.  I've been here a
 
         17       long time, I don't see things changing real
 
         18       rapidly.  I know the canals, some of them, are
 
         19       in bad shape.  I don't see it as a crisis.  If
 
         20       it wasn't a crisis last year, it's not a crisis
 
         21       now.
 
         22            Let's go back and get a better idea what's
 
         23       going on, see if we can't clean them up.  Then
 
         24       we'll look to the areas that we have to do
 
         25       different types of sewage treatment in.  Bearing

 
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          1       in mind that the money you take out of the
 
          2       pockets of the people in the Keys is -- is the
 
          3       money that's there for quality of life spending
 
          4       down the road.
 
          5            Thank you very much.  And I will leave
 
          6       these two documents with you.
 
          7            This top document shows that -- in '91, the
 
          8       County wanted -- was recommending to go to canal
 
          9       aeration.  My understanding is that other State
 
         10       agencies didn't want to do that, and there are
 
         11       different reasons been postulated.
 
         12            One was possibly there'd be heavy metals in
 
         13       the sediments, but more likely, we didn't want
 
         14       the water quality in the canals better than
 
         15       those outside of the canals because people might
 
         16       think that canals were good, and they may want
 
         17       to use more of them.
 
         18            So at any rate, I leave this with you.
 
         19            Thank you very much, gentlemen.
 
         20            GOVERNOR CHILES:  Thank you.
 
         21            MR. SCHRADER:  Thank you.
 
         22            DR. BRADLEY:  Governor, I'd like to
 
         23       introduce Mr. Apgar, who will introduce some
 
         24       folks from the County government.
 
         25            GOVERNOR CHILES:  All right, sir.

 
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          1            MR. APGAR:  Governor, members of the
 
          2       Cabinet, I'm Bob Apgar representing
 
          3       Monroe County.
 
          4            I'd like to make a few comments to you
 
          5       about the draft rule, and then introduce
 
          6       Commissioner London, who you remember, who's
 
          7       been our growth management liaison on the
 
          8       Commission, and some of the other members of the
 
          9       Commission will come up with him.
 
         10            To start with, Governor, your
 
         11       Executive Order that we received yesterday was
 
         12       very much appreciated.
 
         13            The people in the Keys I think feel that
 
         14       this shows that you have heard their concerns
 
         15       about State agencies stepping up and sharing the
 
         16       burdens of the critical area program with them.
 
         17            And your Executive Order very much shows
 
         18       the -- your intention that the agencies do
 
         19       that.  And we are appreciative of that order,
 
         20       and support it very strongly.
 
         21            You all know that there has been a great
 
         22       deal of work, great deal of discussion,
 
         23       negotiation, that has gone into this draft
 
         24       rule.  And we also appreciate that this rule
 
         25       shows that you have heard our concerns.

 
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          1            We appreciate the fact that the rule leaves
 
          2       our Rate of Growth Ordinance, which was adopted
 
          3       by the County, the first of its kind in the
 
          4       state, one of the few in the nation, that keeps
 
          5       growth at 255 residential units a year, based on
 
          6       hurricane evacuation.
 
          7            And I want to stress to you that the
 
          8       255 units was not a number that was pulled out
 
          9       of the air.  This number is based on the best
 
         10       available traffic modeling, transportation
 
         11       modeling, performed by the expert in the
 
         12       United States, and perhaps in the world, on this
 
         13       kind of modeling.
 
         14            And that number is important to us for
 
         15       legal defensibility, and for long-term stability
 
         16       in the Keys.  And you have heard from other
 
         17       citizens who've testified about how important it
 
         18       is to the consensus that supports growth
 
         19       management and Monroe County.
 
         20            Other numbers have been suggested, we know,
 
         21       such as zero, or 88.  We want to stress to you
 
         22       that the 255 is a hurricane evacuation based
 
         23       number, it is the only valid number.  That --
 
         24       and the only number that we feel is defensible
 
         25       at this point.

 
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          1            And we appreciate the fact that it is in
 
          2       the rule.  We appreciate -- we have heard your
 
          3       staff's assurance that that 255 units is going
 
          4       to be the Rate of Growth Ordinance units, and
 
          5       will not include vested and exempt units which
 
          6       very frankly, Governor, and members of the
 
          7       Cabinet, the County cannot regulate.  As a
 
          8       matter of law, we cannot regulate those units.
 
          9       That's why they are vested.
 
         10            The exempt units, of course, are exempt
 
         11       because they do not affect hurricane
 
         12       evacuation.  So we appreciate the stability that
 
         13       that measure gives to the -- to the -- to our
 
         14       continued application of the Rate of Growth
 
         15       Ordinance.
 
         16            We also appreciate very specifically
 
         17       policy 5 and the assurance that that policy
 
         18       gives the people of Monroe County that they will
 
         19       not be forced to pay higher taxes, that the
 
         20       County will be expected to bear its reasonable
 
         21       fair share costs of the program that's required
 
         22       to deal with the problems that we know we have,
 
         23       and that we know need to be addressed.
 
         24            And that the State, and hopefully the
 
         25       Federal government, will assist us in coming up

 
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          1       with the funding that we know is needed to
 
          2       address those problems.
 
          3            And I know that you, as we, have seen the
 
          4       Department of Community Affairs' cost estimates
 
          5       of the work program, which puts the total of
 
          6       that work program at 244 million dollars.
 
          7            And I know you appreciate, as well as we
 
          8       do, that Monroe County citizens cannot afford to
 
          9       pay that bill.  We must have the assistance of
 
         10       the State and Federal governments.
 
         11            Governor, with the -- at the conclusion of
 
         12       our negotiations, which were going on as late as
 
         13       this morning with your staff -- and we very much
 
         14       appreciate the professionalism that your staff
 
         15       have shown, all of your staffs have shown in
 
         16       this regard, and working with us on finding
 
         17       compromises -- there's been give and take on
 
         18       both sides of this rule.
 
         19            And with that, the assurances that we have
 
         20       from your staff with the provisions of this rule
 
         21       that our -- that state that our Rate of Growth
 
         22       Ordinance will be preserved, I will very
 
         23       strongly recommend to the County Commission, if
 
         24       you find this rule acceptable, that the County
 
         25       not challenge this rule, that the County not

 
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          1       seek to change the language of this rule.
 
          2            That we take this rule; work with it with
 
          3       your agencies; in good faith, try to solve the
 
          4       problems of the Keys.
 
          5            And, of course, we would intervene.  We
 
          6       know it will be challenged, the interests are
 
          7       out there that will do that, and we will
 
          8       intervene to protect the County's interest.  But
 
          9       I would strongly recommend to them that we not
 
         10       seek to make changes.
 
         11            I'd be happy to answer any questions that
 
         12       anyone may have.  And if not, I'll introduce
 
         13       Commissioner London.
 
         14            GOVERNOR CHILES:  All right.  Doesn't seem
 
         15       to be any questions.
 
         16            MR. APGAR:  Thank you, sir.
 
         17            Commissioner Jack London.
 
         18            MR. LONDON:  Good morning.
 
         19            GOVERNOR CHILES:  Good morning, sir.
 
         20            MR. LONDON:  I think this is getting to be
 
         21       a road show.  Maybe we could bring it down to
 
         22       Monroe County at some point.
 
         23            First of all, I'd like to introduce my
 
         24       fellow commissioners.  Standing beside me is --
 
         25            Come up here, please, Wilhelmina.

 
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          1            This is Wilhelmina Harvey, who I'll tell
 
          2       you a little bit about later.
 
          3            Also would Commissioner Reich and
 
          4       Commissioner Douglas and Commissioner Freeman --
 
          5       or Mayor Freeman, please stand up.
 
          6            And I'd also like the members of the
 
          7       Monroe County citizens group that came up here
 
          8       today to please stand up and please show you --
 
          9       show us how many of you did come up here.  We're
 
         10       very grateful.
 
         11            GOVERNOR CHILES:  We welcome y'all here
 
         12       today.  We're glad to have you.
 
         13            MR. LONDON:  And finally, I'd like to
 
         14       acknowledge that Representative Horan, who's
 
         15       been very helpful through this entire process,
 
         16       is in the audience -- or was until a few moments
 
         17       ago.
 
         18            GOVERNOR CHILES:  She works hard for you, I
 
         19       can tell you that.
 
         20            MR. LONDON:  She certainly does, and we're
 
         21       very grateful for that kind of representation.
 
         22            I want to also thank the Cabinet members
 
         23       who visited the Keys and took a firsthand look
 
         24       at things.  And I know others are planning to
 
         25       come.

 
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          1            I know that Secretary Mortham now knows
 
          2       more about transient rentals than anybody in the
 
          3       world.  So --
 
          4            Anyway, that's a little in joke that
 
          5       perhaps she'll explain later.
 
          6            In any event, I came here today -- or last
 
          7       night to deliver another message altogether.
 
          8       But I'm pleased to say that I've thrown those
 
          9       remarks away, and would like to say that this
 
         10       process that has brought us to this point has
 
         11       been, at least in my view, a wonderful exercise
 
         12       in give and take and compromise.  Those onerous
 
         13       elements that were in the rule that we felt we
 
         14       couldn't live with have been removed.
 
         15            And although we're not totally happy with
 
         16       what the package consists of, we feel that we
 
         17       can make a real effort to live with it.  You
 
         18       have our assurances that over the next
 
         19       five years, we'll make every effort to do our
 
         20       share, and participate in this partnership.
 
         21            Essentially that's all I have to say.
 
         22            I think this has been a very useful
 
         23       process.  And at this point, I think I'd like to
 
         24       tell you a little bit about Commissioner Harvey,
 
         25       who's going to say a few words to you.

 
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          1            Commissioner Harvey is the senior elected
 
          2       official in all of Florida.  And for over
 
          3       40 years, she's been an inspiration and a source
 
          4       of wisdom for us in Monroe County.
 
          5            And she also has a picture hanging in the
 
          6       Governor's Hall of Fame upstairs.  So she's one
 
          7       of the honorees.
 
          8            So at this point, I'd like to introduce to
 
          9       you the grande dame of Monroe County, Mayor
 
         10       Emeritus Wilhelmina Harvey.
 
         11            MS. HARVEY:  Thank you so much.
 
         12            MR. LONDON:  You're welcome.
 
         13            MS. HARVEY:  Honorable body, I'm really
 
         14       taken to tears almost with such a lovely
 
         15       introduction.
 
         16            And I think what Mayor Pro Tem London was
 
         17       trying to say, since I'm the only conch on the
 
         18       Monroe County Commission, I'm an endangered
 
         19       species.
 
         20            But all of Monroe County, we -- we have the
 
         21       greatest people there, the conchs are great, and
 
         22       then the newcomers that have come to the island
 
         23       have been just great, and they cooperate with
 
         24       us.
 
         25            And, you know, when you go to the state of

 
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          1       Kentucky, they make you a colonel.  Well,
 
          2       instead, in -- when you come down to the
 
          3       Florida Keys, we make you an honorary conch.
 
          4            And in that beautifully composed conch
 
          5       certificate, it reads:  You're now one of the
 
          6       world's friendliest peoples -- people.  And
 
          7       that's really true, because we really are
 
          8       friends.
 
          9            And I can remember when I was first
 
         10       married, living in Louisiana, and in everybody's
 
         11       home was a picture of the Pope.  And also
 
         12       Senator Huey P. Long.
 
         13            Well, if you come down to the Florida Keys,
 
         14       you will see etched in steel our gracious
 
         15       Governor, Governor Chiles, and his assistant,
 
         16       Buddy MacKay.  And --
 
         17            GOVERNOR CHILES:  And the Pope.
 
         18            MR. LONDON:  And the Pope.
 
         19            GOVERNOR CHILES:  We're going to have to
 
         20       give you some more time.  You just keep on.
 
         21            MS. HARVEY:  Thank you.
 
         22            Governor --
 
         23            COMMISSIONER BROGAN:  By the way, Governor,
 
         24       the thing that you and the Pope have most in
 
         25       common is that you both wear funny hats.

 
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          1            MS. HARVEY:  I meant that with due
 
          2       reverence, too.
 
          3            We came up here, Governor, and Cabinet
 
          4       members, with very heavy hearts.  And like Mayor
 
          5       Pro Tem London, I had my little speech all
 
          6       written out, and it took quite a long time to
 
          7       write it, because I wasn't very complimentary,
 
          8       and that's not my nature.  I love peace and
 
          9       cooperating with people.
 
         10            And I'm so pleased with how you have
 
         11       received this contingent, and you have
 
         12       considered the problems of Monroe County that,
 
         13       believe me, about 86,000 residents of the
 
         14       fabulous Florida Keys will never be able to
 
         15       forget the courtesy and the conditions which you
 
         16       prevailed upon and made possible for us.
 
         17            And we were so tired, you know.  My
 
         18       forefathers, they fought the Indians, then they
 
         19       fought the pirates, then we fought hurricanes,
 
         20       then we had depressions, and then we were going
 
         21       to have to take on 244 million dollars.  It
 
         22       really broke our hearts.
 
         23            But -- 244 million I meant to say.
 
         24            And when we leave here, our hearts are
 
         25       going to be greatly softened and lightened.  And

 
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          1       I've never seen an Executive Order which is
 
          2       giving the Executive giving directions to how
 
          3       all of the agencies are going to cooperate with
 
          4       us.
 
          5            And we're thrilled.  We're just thrilled,
 
          6       because I really think business is meant, and
 
          7       that all of the agencies of the Cabinet and the
 
          8       world's going to cooperate with the pioneers
 
          9       living in Monroe County.
 
         10            So Honorable Governor, and your
 
         11       compatriots, thank you very, very much.  And the
 
         12       thanks comes from 86,000 residents of the
 
         13       fabulous Florida Keys.
 
         14            And so you will get to know that we have
 
         15       culture and beautiful homes, despite the fact
 
         16       we've had all those Indians and pirates, and
 
         17       we'd like to give each one of you a little
 
         18       vision through these little cards of the homes
 
         19       throughout Florida Keys.
 
         20            Again, thank you.
 
         21            GOVERNOR CHILES:  Thank you.  Delighted
 
         22       to --
 
         23            DR. BRADLEY:  Governor, the next folks that
 
         24       we'd like to introduce are Richard Grosso of the
 
         25       1000 Friends, and Earl Starnes also of

 
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          1       1000 Friends.
 
          2            MR. STARNES:  Governor, good morning, sir.
 
          3            GOVERNOR CHILES:  Mr. Starnes, how are
 
          4       you?
 
          5            MR. STARNES:  Members of the Cabinet.  I'm
 
          6       Earl Starnes, Professor Emeritus,
 
          7       University of Florida, Director of the Division
 
          8       of State Planning during the 1970s.
 
          9            Shortly after I left the Division of State
 
         10       Planning, the Legislature abolished it due to
 
         11       its overwhelming popularity, and transferred it
 
         12       over to DCA.
 
         13            I'm also a founding Board member of
 
         14       1000 Friends of Florida.  I'm here again to
 
         15       support the hearing officer's order which agrees
 
         16       with virtually every position taken by
 
         17       1000 Friends of Florida; and dozens, maybe
 
         18       hundreds, of reports, both by Federal, State,
 
         19       and private organizations throughout the years.
 
         20            I understand there are differences between
 
         21       the hearing officer's recommendations, and your
 
         22       staff recommendations.
 
         23            Our position with regard to the -- to
 
         24       permits is that the moratorium on permits for
 
         25       new development should be absolute.  At least

 
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          1       don't withdraw from the earlier position of
 
          2       88 permits per year.
 
          3            My rationale is simple.  This provides a
 
          4       greater incentive to move forward with the
 
          5       carrying capacity studies and infrastructure
 
          6       needs required to fulfill the recommended order,
 
          7       which is designed to protect this very, very
 
          8       unique ecosystem.
 
          9            In time, as these studies are completed, as
 
         10       these facilities become available, you will have
 
         11       the opportunity to relax the restrictions and
 
         12       finally, I hope, the State can -- may withdraw
 
         13       its long, and often very painful interposition
 
         14       in the business of local planning and
 
         15       development management in the Florida Keys.
 
         16            The Florida Keys has long been the focus of
 
         17       the State's interest.  In 1975, based upon the
 
         18       recommendations of the Division of State
 
         19       Planning, and the Department of Administration,
 
         20       the Governor and Cabinet declared the
 
         21       Florida Keys an area of Critical State Concern.
 
         22       You've already heard that was reviewed by the
 
         23       Legislature in 1979, and reconfirmed.
 
         24            The Governor and Cabinet were at that
 
         25       point -- had their hearings in the Florida Keys

 
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          1       itself, which was a very precedential kind of
 
          2       occasion.
 
          3            It was an early adventure for this body to
 
          4       deal directly with statewide land development
 
          5       issues.  By holding these meetings in the Keys,
 
          6       it was certainly a clear signal to the people of
 
          7       the Keys and the people of Florida just how
 
          8       important the business of the environment in
 
          9       this unique subtropical archipelago really was
 
         10       then; and to the people of the state; and,
 
         11       indeed, the nation.
 
         12            Why were the Keys declared an area of
 
         13       Critical State Concern?  In September of 1973,
 
         14       Governor Askew called for a specific coastal
 
         15       zone study of the Keys.  He said that he has
 
         16       chosen this area to be a pilot project for a
 
         17       complete coastal zone management plan which
 
         18       would be responsive to the Federal Coastal Zone
 
         19       Management Act of 1972.  And set the framework
 
         20       for a complete coastal zone management plan for
 
         21       Florida.
 
         22            The study -- that study, and public
 
         23       interest in the Keys provided reasons for the --
 
         24       the critical area designation in 1975.
 
         25            At that time, I summarized the reasons in

 
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          1       my presentation to the Administration
 
          2       Commission.  National and state resources
 
          3       rapidly deteriorating because of an imbalance of
 
          4       concerns for the interaction between the
 
          5       environmental, urban, and economic systems.
 
          6            I am sure it will please you to know that
 
          7       I'm not going to reiterate the 53-page report we
 
          8       prepared at that time.
 
          9            GOVERNOR CHILES:  Hmm.
 
         10            MR. STARNES:  It was -- it was time then
 
         11       for the State to move aggressively in the
 
         12       protection of this unique natural system.  But
 
         13       many years and many millions of dollars later,
 
         14       we're still in the same dilemma.
 
         15            I urge you to support the recommendations
 
         16       from the hearing officer, and thank you very
 
         17       much for your time.
 
         18            GOVERNOR CHILES:  Thank you, Mr. Starnes.
 
         19            DR. BRADLEY:  Mr. Grosso, he's also going
 
         20       to take up some of the positions that
 
         21       Casey Gluckman would have -- if she had been
 
         22       here -- she was injured in some sort of accident
 
         23       yesterday.
 
         24            MR. GROSSO:  Good morning, Governor Chiles,
 
         25       members of the Cabinet, I'm Richard Grosso with

 
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          1       1000 Friends of Florida.
 
          2            And I've also been asked to represent the
 
          3       interests of the Florida Wildlife Federation and
 
          4       the National Audubon Society, as well as the
 
          5       Wilderness Society this morning.
 
          6            We have been there every step of the way
 
          7       since 1991 when this growth management process
 
          8       started in the Keys, been to most of the
 
          9       hearings, we've negotiated with the State and
 
         10       the County, with other interest groups in the
 
         11       Keys.
 
         12            I dare say, we are largely -- the folks we
 
         13       worked with, responsible for the findings of
 
         14       fact that you adopted on December 12th of 1995.
 
         15            We wrote -- we've written a number of
 
         16       letters, we wrote one as recently as this week
 
         17       detailing word for word the things that we feel
 
         18       need to be in the proposed rule in order for it
 
         19       to comply with the findings, in order for it to
 
         20       reverse the decline in the Keys, and save the
 
         21       Florida Keys.
 
         22            The negotiations of the last couple of days
 
         23       did not include us.  We haven't been a party to
 
         24       them.
 
         25            I can tell you today that -- that what's

 
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          1       before you does not comply with the findings of
 
          2       fact the hearing officer made, does not comply
 
          3       with the findings of fact you adopted in
 
          4       December of 1995.  It takes the same approach
 
          5       that was rejected in those findings.
 
          6            It doesn't even include things that we all
 
          7       agreed to in the negotiations that you sent us
 
          8       to after your December meeting.  It recedes from
 
          9       decisions you made at your December meeting, it
 
         10       continues to ignore the economic realities of
 
         11       the real costs of development in the Keys and
 
         12       the real costs of environmental degradation.
 
         13            Doesn't do anything to fundamentally change
 
         14       how we manage growth in the Keys.  It takes
 
         15       20 years of an approach under critical concern,
 
         16       and it just perpetuates the exact same approach
 
         17       that put us here in the first place.
 
         18            It takes the opportunity -- maybe the last
 
         19       one that we'll ever have, for the Growth
 
         20       Management Act to come in and really change our
 
         21       approach in the Keys, and it wastes that
 
         22       opportunity.
 
         23            That is our assessment of the rule before
 
         24       you.  We've given very specific language as to
 
         25       how it should be fixed.  We urge you to adopt

 
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          1       that language, and those changes to the rule.
 
          2            Thank you.
 
          3            GOVERNOR CHILES:  Thank you, sir.
 
          4            DR. BRADLEY:  Mr. Gregg Goldfarb of --
 
          5       representing the Florida Keys Citizens Coalition
 
          6       and the Upper Keys.
 
          7            MR. GOLDFARB:  Good morning, Governor, and
 
          8       Cabinet members.  My name is Gregg Goldfarb, and
 
          9       I'm representing the Florida Keys Citizens
 
         10       Coalition, and the Upper Keys Citizens
 
         11       Association.
 
         12            We're here today to present three modest
 
         13       proposals to save the Florida Keys and the
 
         14       natural resources.  I will -- I will elaborate
 
         15       on these proposals at the end of my speech.
 
         16            The last time I was here, I displayed a
 
         17       recent study that was done by the University of
 
         18       Florida -- South Florida, which showed that from
 
         19       the time you're flushing the toilet in the Keys,
 
         20       takes about 11 hours before the pollutants from
 
         21       the wastewater are contaminating the coral reefs
 
         22       and the nearshore waters.  These are the same
 
         23       systems that are going to be used with future
 
         24       growth.
 
         25            The scientists that performed this study,

 
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          1       Joan -- John -- John Paul, states that this
 
          2       contamination presents a health risk to human
 
          3       population.  You might consider what this means
 
          4       in legal terms.
 
          5            The County's presented three arguments
 
          6       against zero growth, which is my client's
 
          7       position, or 88 units.  These three arguments
 
          8       have been that it will burden the tax roll, it
 
          9       will hurt the construction industry, and that it
 
         10       will cost 800 million dollars to the land owners
 
         11       who are denied permits.  These arguments are
 
         12       without merit.
 
         13            The United States Supreme Court throughout
 
         14       this century has always held that a landowner is
 
         15       not entitled to compensation if their land use
 
         16       is prohibited because it presents a human health
 
         17       risk.
 
         18            This is the third time that we have come
 
         19       forward on this issue to the Cabinet.  The first
 
         20       two times, we were discussing zero, 88, or
 
         21       255 units.  The last time we met, we discovered
 
         22       that there are 800 vested units that will be
 
         23       built.  These 800 vested units will suffice the
 
         24       tax roll issues, and also keep the construction
 
         25       industry busy.

 
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          1            Our modest proposals are this:  First and
 
          2       foremost, these 800 vested units must be
 
          3       accounted for in whatever rate of growth that
 
          4       you issue.
 
          5            Our second one is -- concerns the funding
 
          6       policy number 4.  In that policy, you discuss
 
          7       that the County is required to implement this
 
          8       plan to the extent that funds are not
 
          9       available.  If no funds are available, that
 
         10       means that the rate of growth will continue, and
 
         11       the County will not correct the environmental
 
         12       problems.
 
         13            We request, as our second modest proposal,
 
         14       that if there is no funding, that there is a
 
         15       cessation of building until this funding is
 
         16       found.
 
         17            The last -- the third modest proposal that
 
         18       we set forth comes from three eighty oh five
 
         19       five two, which authorizes the Governor to set
 
         20       up a Governor's Resource Committee.  We believe
 
         21       this committee is necessary to monitor all the
 
         22       activities in the five-year workplan.
 
         23            In your final order, it states that the
 
         24       County has to set a 24-hour hurricane evacuation
 
         25       clearance time.  The final order also finds as a

 
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          1       fact that as of 1990, that evacuation time
 
          2       exceeded this 24-hour clearance.  This is
 
          3       support for a moratorium, in addition to the
 
          4       environmental problems that we've established.
 
          5            I appreciate the fact that all the
 
          6       Commissioners have come down here today and have
 
          7       applauded all the efforts.  Unfortunately, the
 
          8       question is not whether these commissioners will
 
          9       be in power five years from now, the question is
 
         10       whether the natural resources in Monroe County
 
         11       will be here.
 
         12            The natural resources of Monroe County help
 
         13       the -- Monroe County's economy, the tourist and
 
         14       fishing economy.  Will these economies be in
 
         15       existence five years from today?  I believe that
 
         16       the answer will be dependent upon the rate of
 
         17       growth that you set forward in your plan.
 
         18            Thank you.
 
         19            GOVERNOR CHILES:  Thank you, sir.
 
         20            DR. BRADLEY:  The last speaker I have
 
         21       information on is Stephanie Gehres of DCA.
 
         22            MS. GEHRES:  Good morning, Governor,
 
         23       members of the Cabinet, I'm Stephanie Gehres,
 
         24       General Counsel for the Department of Community
 
         25       Affairs.

 
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          1            We're pleased that the Board of County
 
          2       Commissioners could make it here today, and also
 
          3       that the other party representatives have a
 
          4       chance to address you.
 
          5            In this process, as a result of the
 
          6       Governor and the Cabinet's order back in
 
          7       December, we've been working very closely, all
 
          8       parties, to try to coordinate this process and
 
          9       come up with a proposed rule that will address
 
         10       not only the findings of the -- the recommended
 
         11       and final orders, but also do that in a
 
         12       practical and implementable manner.
 
         13            What we're asking the Commission to do
 
         14       today is approve a rule to send forward for
 
         15       rulemaking.  The draft you have before you will
 
         16       proceed from here to a series of public hearings
 
         17       in the Florida Keys to take public input on the
 
         18       rule, and also there will be a period to allow
 
         19       affected citizens to challenge the rule based on
 
         20       satisfying standing requirements under
 
         21       Chapter 120.  It's imperative that this
 
         22       rulemaking process go forward.
 
         23            As we've stated on many occasions before
 
         24       the Cabinet, the clock is ticking for the
 
         25       Florida Keys, and we urge the Cabinet to take

 
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          1       action today to approve a proposed rule to go to
 
          2       the public hearing process.
 
          3            Specifically, this proposed rule that you
 
          4       have before you today, this is the
 
          5       recommendation of the Administration Commission
 
          6       staff.  This document embodies hours and hours
 
          7       of hard work by the recommend-- by the
 
          8       Administration Commission staff.  And
 
          9       Teresa Tinker and her staff are to be commended
 
         10       on the excellent effort that went into
 
         11       production of this document.
 
         12            Now, the Department of Community Affairs
 
         13       has throughout this proceeding urged the Cabinet
 
         14       to reduce the rate of growth in Monroe County
 
         15       for a period of time, to allow the County a
 
         16       chance to catch up on the wastewater quality
 
         17       problems, to address the habitat protection
 
         18       needs, and also to study the environmental
 
         19       carrying capacity for the Florida Keys.
 
         20            The Department maintains its position that
 
         21       a reduced rate of growth, starting at 88 permits
 
         22       per year, and working forward based on
 
         23       achievement of the objectives in the workplan,
 
         24       is consistent with the findings of the final
 
         25       order, and will address the problems that have

 
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          1       been identified in the final order.
 
          2            However, let me state on behalf of the
 
          3       Department that this draft that you have before
 
          4       you that has the permit cap set at 255 and
 
          5       requires completion of the objectives of the
 
          6       five-year workplan each year in order to
 
          7       maintain that 255, will not be objected to by
 
          8       the Department or challenged by the Department
 
          9       so long as it is directly connected to cesspit
 
         10       removal on a one-to-one basis at least, and it
 
         11       is directed -- directly connected to achieving
 
         12       the objectives in the five-year work program.
 
         13            The objectives in the five-year work
 
         14       program are all feasible, they are directly
 
         15       taken out of the existing comprehensive plan
 
         16       that was approved by DCA and the Cabinet in
 
         17       January of 1996.
 
         18            This workplan exemplifies the provisions of
 
         19       the existing plan, as well as previous
 
         20       commitments by the County.  And what the
 
         21       workplan does is put -- put achievement of these
 
         22       objectives and these commitments on a schedule.
 
         23            The Department of Community Affairs,
 
         24       Department of Environmental Protection, and the
 
         25       Governor's Office of Planning and Budgeting have

 
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          1       been aggressively pursuing funding initiatives
 
          2       to implement the workplan, as has the
 
          3       Monroe County legislative delegation,
 
          4       Representative Horan, and Senator Jones.
 
          5            The Executive Order that the Governor has
 
          6       executed today also provides for directives to
 
          7       these State agencies, as well as others, to make
 
          8       sure that the State of Florida does its part in
 
          9       securing funding for Monroe County to implement
 
         10       these objectives.
 
         11            I just want to point out one other thing
 
         12       that was said by a previous speaker, and then
 
         13       I'll be glad to entertain any questions.
 
         14            There is a proposed bill in the Legislature
 
         15       right now.  It does not attempt to -- to put
 
         16       extra authority in the Department or anything
 
         17       extra --
 
         18            (Governor Chiles exited the room.)
 
         19            MS. GEHRES:  -- that the Department can
 
         20       impose upon Monroe County.  It merely attempts
 
         21       to streamline this very complicated
 
         22       administrative process where you have
 
         23       Chapter 163, Compliance Review; Chapter 380,
 
         24       Principals for Guiding Development Review and
 
         25       Rulemaking, to streamline this process so the

 
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          1       next time we come before you on a plan amendment
 
          2       for Monroe County, we won't have to have this
 
          3       complicated, administrative procedure.
 
          4            And the proposed bill merely attempts to
 
          5       shift the Department's existing authority under
 
          6       the area of Critical State Concern statute to
 
          7       the Growth Management Act statute, just to make
 
          8       the process a lot simpler for the local
 
          9       government, as well as the State agencies.
 
         10            And we're working very closely with the
 
         11       Monroe County attorneys, as well as the
 
         12       Monroe County legislative delegation to
 
         13       streamline that bill before presentation to the
 
         14       Legislature.
 
         15            Be glad to answer any questions now, or I
 
         16       will be here forever.
 
         17            SECRETARY MORTHAM:  Commissioner Nelson.
 
         18            TREASURER NELSON:  One of the things that
 
         19       became apparent to me as you all so graciously
 
         20       received me and one of General Milligan's aides
 
         21       that we went on the trip together, was that
 
         22       certainly there is some benefit to cleaning up
 
         23       the pollution by the institution of a sewer
 
         24       system in the two areas where there is a -- a
 
         25       density of development, specifically Marathon,

 
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          1       and also Key Largo.
 
          2            MS. GEHRES:  Yes, sir.
 
          3            TREASURER NELSON:  Would you tell me so
 
          4       that I understand clearly, please, under this
 
          5       existing plan --
 
          6            MS. GEHRES:  Uh-hum.
 
          7            TREASURER NELSON:  -- when would those two
 
          8       sewer systems be developed?
 
          9            MS. GEHRES:  Well, let's talk about the
 
         10       Marathon facility first.
 
         11            Under this existing workplan, the -- the
 
         12       commitment by the County to begin the study to
 
         13       determine, you know, where the Marathon facility
 
         14       should go and how it should operate --
 
         15            (Governor Chiles entered the room.)
 
         16            MS. GEHRES:  -- begins in year 1.  And
 
         17       under the plan, the -- I think it's year -- let
 
         18       me make sure I get this correct --
 
         19            In year 4, the phase I of the Marathon
 
         20       facility will be completed; and in year 5, the
 
         21       Marathon facility will be completed and
 
         22       operational.
 
         23            TREASURER NELSON:  All right.  How about
 
         24       Key Largo?
 
         25            MS. GEHRES:  Key Largo is not specifically

 
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          1       referenced in this workplan.  And the reason for
 
          2       the distinction is that the Monroe County Board
 
          3       of County Commissioners has already approved the
 
          4       application for funding to get the Marathon
 
          5       facilities going.
 
          6            They have not yet approved the application
 
          7       for funding to get the Key Largo plant
 
          8       underway.  And I understand that that is just
 
          9       simply tabled at the local level, it has not
 
         10       been dismissed.
 
         11            The idea is that the wastewater master plan
 
         12       will determine whether that that plan is
 
         13       necessary; and if so, the schedule upon which it
 
         14       would be pursued.
 
         15            TREASURER NELSON:  And when will that
 
         16       master plan be forthcoming?
 
         17            MS. GEHRES:  That master plan -- I think it
 
         18       will be done in year 2 of the master plan will
 
         19       be completed.  And then in year 3, the funding
 
         20       will be secured to implement the master plan.
 
         21            TREASURER NELSON:  But it won't be until
 
         22       year 2 that they determine --
 
         23            (Commissioner Crawford exited the room.)
 
         24            TREASURER NELSON:  -- whether or not there
 
         25       would be a sewer plant in Key Largo.

 
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          1            MS. GEHRES:  That is correct.
 
          2            TREASURER NELSON:  All right.  Now, one
 
          3       other thing that I have received a number of
 
          4       conflicting numbers is over the question of how
 
          5       many permits are vested.
 
          6            MS. GEHRES:  Uh-hum.
 
          7            TREASURER NELSON:  Commissioner Brogan and
 
          8       I were just sharing information wondering what
 
          9       is the actual number of vested permits in this
 
         10       geographical area.
 
         11            MS. GEHRES:  For the entirety of
 
         12       Monroe County.
 
         13            TREASURER NELSON:  No.  You've got to
 
         14       exclude Key West.
 
         15            MS. GEHRES:  For the --
 
         16            TREASURER NELSON:  Without --
 
         17            MS. GEHRES:  -- unincorporated --
 
         18            TREASURER NELSON:  -- the plan.
 
         19            MS. GEHRES:  I would certainly defer to the
 
         20       County's numbers on that.  But --
 
         21            COMMISSIONER BROGAN:  Let me --
 
         22            MS. GEHRES:  -- we have --
 
         23            COMMISSIONER BROGAN:  Can I interject --
 
         24            MS. GEHRES:  -- that information.
 
         25            COMMISSIONER BROGAN:  -- here for a

 
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          1       minute.
 
          2            When I visited Monroe County last week --
 
          3       and by the way, the Commissioner was correct,
 
          4       friendliest group of people you'll ever find.
 
          5       Regardless of which side of this issue they
 
          6       happen to fall, treated us very well.
 
          7            The one thing that I -- that I continued,
 
          8       and I know you all have heard me ask before, was
 
          9       referencing the number of vested permits that
 
         10       were available currently in all of
 
         11       Monroe County.
 
         12            And as Commissioner --
 
         13            (Commissioner Crawford entered the room.)
 
         14            COMMISSIONER BROGAN:  -- Nelson mentioned,
 
         15       of course, you have to start to carve
 
         16       Monroe County up based on those vested permits.
 
         17       Considering as I've been told, that Key West
 
         18       itself still has about 1200 vested permits
 
         19       available.
 
         20            The -- the number that I've been given for
 
         21       the remainder of the Keys -- and that excludes
 
         22       the three municipalities, Key West, Key Colony,
 
         23       and Layton, is somewhere in the area of 818.
 
         24            When I spoke to people on -- and I hate to
 
         25       use the terminology, both sides of the issue --

 
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          1       but people coming at this from different
 
          2       directions, the one thing that they all had in
 
          3       common is they really weren't aware of, nor did
 
          4       they consider the number of vested permits to
 
          5       really be an issue.
 
          6            MS. GEHRES:  Uh-hum.
 
          7            COMMISSIONER BROGAN:  When I spoke with
 
          8       some of our friends down in Marathon from the
 
          9       construction trades and the realty business and
 
         10       others, that there didn't seem to be a general
 
         11       knowledge of -- and I can understand that -- how
 
         12       many vested permits were out there, or that it
 
         13       was -- or that if they were out there, that
 
         14       there seemed to be a significant number of them.
 
         15            But I've continued to dig into that issue,
 
         16       and I have a number in front of me that is
 
         17       818 vested permits, exclusive of the 1200 that
 
         18       are currently available on Key West.  There were
 
         19       a small number in Key Colony and Layton,
 
         20       literally handfuls.  So exclusive of that as
 
         21       well.
 
         22            But the remaining number that I have is
 
         23       818.
 
         24            MS. GEHRES:  That's very close to the
 
         25       number I have, Commissioner, also.  That is a

 
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          1       number that combines both vested and exempt
 
          2       permits --
 
          3            (Attorney General Butterworth exited the
 
          4       room.)
 
          5            MS. GEHRES:  -- and if I can explain the
 
          6       difference in that.
 
          7            The Rate of Growth Ordinance in the County
 
          8       exempts certain permits that are not going to
 
          9       adversely affect the hurricane evacuation
 
         10       clearance times.  And sent -- most -- primarily
 
         11       those are up in the Upper Keys where they're so
 
         12       close to the mainland, that their evacuation is
 
         13       not going to adversely affect the evacuation for
 
         14       the remainder of the Keys, from Key West on up.
 
         15            That number equals approximately
 
         16       306 units.  And then the vested units in the
 
         17       County is another 516.  So the numbers are very
 
         18       close.  I come up with --
 
         19            COMMISSIONER BROGAN:  But --
 
         20            MS. GEHRES:  -- with 822.
 
         21            COMMISSIONER BROGAN:  -- the purpose of
 
         22       continued development, we're talking about 818
 
         23       somewhere along the chain.
 
         24            MS. GEHRES:  Yes, sir.
 
         25            COMMISSIONER BROGAN:  Okay.  I also have

 
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          1       noted that over the past several years, the
 
          2       number of residential units beginning back in
 
          3       1982 were actually 250; the next year, 248; the
 
          4       next year, 243; the largest number being this
 
          5       last year of 313 residential units that have
 
          6       been issued.
 
          7            I guess my question is this:  And I think
 
          8       Commissioner Nelson was headed in the same
 
          9       direction, and I don't want to steal his
 
         10       thunder.
 
         11            But what the plan talks about is a total
 
         12       number of 255 permits allowable per year over
 
         13       that five-year period of time.  And, of course,
 
         14       that works in harmony with the five-year plan
 
         15       that I think everyone seems to fundamentally
 
         16       agree upon with the issue of funding which
 
         17       continues to bob up to the surface, and well it
 
         18       should, as we talked with all of our friends
 
         19       down in Monroe County.
 
         20            But I'm still concerned that if we are
 
         21       currently issuing residential permits down
 
         22       there, of -- which appear to be hovering around
 
         23       255, give or take, and that is inclusive of
 
         24       vested permits, I've got this concern that we're
 
         25       going to say in our plan, 255 permits,

 
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          1       residential, plus 818 that are sitting out there
 
          2       that are already vested.
 
          3            And if -- if my numbers are correct that
 
          4       I've scratched out, that, in essence, if you use
 
          5       the five-year plan, could create the potential
 
          6       for about 418 permits total vested and new
 
          7       issuances, over that same -- each year over that
 
          8       same five-year period, going up to about
 
          9       2,090 over the next five years.
 
         10            And I'm wondering, since there doesn't seem
 
         11       to be -- or at least I didn't feel a great
 
         12       urgency surrounding how many vested permits were
 
         13       out there, and whether it would have a big
 
         14       impact or not on the 255, just for comfort sake,
 
         15       would it not be better to include in that 255
 
         16       that we're talking about issuing the vested
 
         17       permits that are already out there so that we're
 
         18       all dealing with the same number per year over
 
         19       that five years, which is approximately 255
 
         20       vested, and new issuances, versus saying there
 
         21       will be 818 allowable over that five years, plus
 
         22       an additional 255 every year for the next --
 
         23            MS. GEHRES:  Uh-hum.
 
         24            COMMISSIONER BROGAN:  -- five years.
 
         25            MS. GEHRES:  Uh-hum.

 
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          1            And your numbers are correct.  If, in fact,
 
          2       the vested properties do come in for their
 
          3       development permits over the next five-year
 
          4       period, then that will be a greater number of
 
          5       permits issued than 255 per year.
 
          6            COMMISSIONER BROGAN:  I have -- one of the
 
          7       previous speakers mentioned that the problem was
 
          8       due to Florida Bay, and the algae bloom.
 
          9            What I found -- and like so many people up
 
         10       here, I've been going to the Florida Keys for
 
         11       20 years, regular visitor.  And, yes, I believe
 
         12       that, in part, that is correct.
 
         13            But I also recognize, along with the algae
 
         14       bloom and along with the problems of
 
         15       Florida Bay, even if you excluded that problem,
 
         16       which is certainly I think exacerbating largely
 
         17       the problems of the Florida Keys, you still
 
         18       cannot separate the fact that the issue of --
 
         19       and the pressure being put on the Florida Keys
 
         20       through things like cesspits and illegal septic
 
         21       tanks and moored boats.
 
         22            And I saw in my fly around and my visit
 
         23       on -- on -- through boat, an incredible number
 
         24       of moored boats, and everyone seems to agree
 
         25       that the vast majority of them are illegally

 
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          1       dumping run-off, that really there are two
 
          2       problems affecting the Florida Keys:  Those
 
          3       created elsewhere, and those that are created
 
          4       right there in the chain.
 
          5            So my only concern in terms of the number
 
          6       of permits, and it really doesn't seem as though
 
          7       it's going to have a great impact, unless
 
          8       somebody can correct me otherwise, that based on
 
          9       the number that seemed to be applicable over the
 
         10       last several years, a total of 255, inclusive of
 
         11       the vested permits, would still -- would still
 
         12       give us our five-year workplan.
 
         13            But it was -- would also give the people in
 
         14       the construction business and realtors and
 
         15       residents of the Keys enough permits to continue
 
         16       to move forward in their business.
 
         17            MS. GEHRES:  Your preliminary comments,
 
         18       Commissioner, are correct.  And the
 
         19       hearing officer in adducing the competent
 
         20       substantial evidence presented at the hearing,
 
         21       while we did not focus on the impact of
 
         22       Florida Bay on the water quality of the
 
         23       nearshore water on the Florida Keys, the focus
 
         24       of the hearing was the -- the cumulative and
 
         25       secondary impacts of development on the water

 
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          1       quality in the Florida Keys.
 
          2            To include the vested units in the annual
 
          3       permit allocation number of 255 appears to be
 
          4       consistent with the history of the ROGO in
 
          5       Monroe County.  As you indicated, the number of
 
          6       permits issued have been right around 250, 255
 
          7       consistently since 1992 when the ROGO was
 
          8       implemented, with this last year being a bit
 
          9       higher because the competition increased in
 
         10       Monroe County for the permits.
 
         11            Hearing officer determined in this final
 
         12       order holds that in order for the permit
 
         13       allocation system to be effective, it needs to
 
         14       have competition for permits.
 
         15            But to include the vested units in the
 
         16       255 cap is not inconsistent with the permitting
 
         17       history in the Florida Keys.
 
         18            TREASURER NELSON:  And may I ask a question
 
         19       of clarification.
 
         20            And -- and in that regard, you are
 
         21       considering the vested number as the 500 number,
 
         22       not the 300, because the 300 are exempt
 
         23       because --
 
         24            MS. GEHRES:  Yes, sir.
 
         25            TREASURER NELSON:  -- they're in northern

 
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          1       Key Largo.
 
          2            MS. GEHRES:  Yes, sir.
 
          3            TREASURER NELSON:  Next to Card Sound
 
          4       Bridge.  So you --
 
          5            MS. GEHRES:  Right.
 
          6            TREASURER NELSON:  -- don't have an
 
          7       evacuation problem there.
 
          8            MS. GEHRES:  Yes, sir.
 
          9            TREASURER NELSON:  So we're talking about
 
         10       vesting --
 
         11            And, Frank, what you're talking about is
 
         12       adding the 500 as part of the 255 per year.
 
         13            COMMISSIONER BROGAN:  Yes, sir.
 
         14            MS. GEHRES:  I believe that the
 
         15       Monroe County attorney wants to be heard on this
 
         16       issue also.
 
         17            MR. APGAR:  Commissioner, Bob Apgar, if I
 
         18       could speak to this issue briefly.
 
         19            GOVERNOR CHILES:  Yes sir.
 
         20            MR. APGAR:  First of all, to ask you to
 
         21       remember that all new residential developments
 
         22       in the Keys, whether they be vested or exempt or
 
         23       permitted under ROGO, will be required to
 
         24       install an aerobic treatment unit.  The -- that
 
         25       will greatly reduce -- that is the best

 
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          1       treatment method we know of.  That will greatly
 
          2       reduce discharge.
 
          3            And as soon as HRS finishes its testing of
 
          4       on-site systems, they will begin requiring --
 
          5       and we think that will be within a year, perhaps
 
          6       sooner -- they will be -- again requiring an
 
          7       even better level of treatment.
 
          8            So it's not -- we're not talking about a
 
          9       continuation of the problems that may have
 
         10       occurred in the past.
 
         11            Okay.  As to the vested units, there's only
 
         12       one significant vested project in the Keys.
 
         13       That is Hawk's Cay, a development of regional
 
         14       impact which by statute we simply have no
 
         15       control over.  We can't touch them.
 
         16            They have one year left on their DRI
 
         17       development order.  They have around 400 units
 
         18       to go.  They've asked for an extension, an
 
         19       extension of one year has been recommended.  If
 
         20       they build out, it's going to be in a matter of
 
         21       one to two years.
 
         22            If we are forced to count their units
 
         23       against the units we issue under the Rate of
 
         24       Growth Ordinance, as you can see, that will wipe
 
         25       out the construction folks in the County for a

 
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          1       period of a couple of years.
 
          2            That is our concern with trying to bring
 
          3       the vested units under the cap.  We can't
 
          4       control them.  If they come in, they wipe out
 
          5       everybody else.
 
          6            So in fairness to the other folks who'd
 
          7       like to build a house, and who would be able to
 
          8       get enough points to get a ROGO permit, we ask
 
          9       that you allow us to continue to exclude those.
 
         10            TREASURER NELSON:  Are they 400 of the 500
 
         11       vested?  Just that one development?
 
         12            MR. APGAR:  Just that one development,
 
         13       that's correct, sir.
 
         14            TREASURER NELSON:  Is four hundred of the
 
         15       five --
 
         16            MR. APGAR:  Right.  It's a --
 
         17            TREASURER NELSON:  -- of the five hundred.
 
         18            MR. APGAR:  -- a development regional
 
         19       impact of Hawk's Cay.
 
         20            TREASURER NELSON:  And -- and where is
 
         21       Hawk's Cay?
 
         22            MR. APGAR:  It's just north of Marathon on
 
         23       Duck Key.
 
         24            COMMISSIONER BROGAN:  I'm trying to get --
 
         25       I'm trying to get a handle on this, too.  So

 
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          1       you're telling me that out of the 818 vested
 
          2       permits that exist in the Florida Keys today,
 
          3       and that is exclusive of Key West -- the three
 
          4       municipalities:  1200 on Key West, and the other
 
          5       two handful -- that out of the 818 remaining,
 
          6       444 of those are in that 818.  Which leaves --
 
          7            MR. APGAR:  Are from Hawk's Cay.  And
 
          8       please remember, you've got to disting-- the
 
          9       number you are using I think is a pretty good
 
         10       approximation of both the number of vested units
 
         11       and the number of exempt.
 
         12            If you're talking about vested alone,
 
         13       I think it's around 512.
 
         14            COMMISSIONER BROGAN:  That -- that's where
 
         15       I was headed.  The next clump that you would
 
         16       take out of there, or the exempt, which is
 
         17       another three hundred and something --
 
         18            MR. APGAR:  Right.  Which are in --
 
         19            COMMISSIONER BROGAN:  Which I understand --
 
         20            MR. APGAR:  -- Oaks Reef.
 
         21            COMMISSIONER BROGAN:  -- you correctly, the
 
         22       vast majority of vested permits -- and I mean
 
         23       all but a handful -- exist in either exempt
 
         24       status, or are on Hawk's Cay.
 
         25            MR. APGAR:  That's correct, sir.  Other

 
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          1       than that, there are about 70 units in other
 
          2       projects.
 
          3            COMMISSIONER BROGAN:  Strung throughout.
 
          4            MR. APGAR:  Yes, sir.  That's right.  In
 
          5       about two other projects.  But they are up and
 
          6       down the Keys in different locations.
 
          7            TREASURER NELSON:  May I ask:  On
 
          8       Hawk's Cay, are they connected to a sewer
 
          9       system, or is that going to be septic pits?
 
         10            MR. APGAR:  I'm going to have to ask for
 
         11       help on that one.  It's --
 
         12            What's Hawk's Cay --
 
         13            TREASURER NELSON:  The four hundred and
 
         14       four --
 
         15            MR. HERMAN:  They've got a central plant.
 
         16            MR. APGAR:  They have a central package
 
         17       plant, Commissioner.
 
         18            COMMISSIONER BROGAN:  So we're guaranteed
 
         19       that the 444 on Hawk's Cay would not put
 
         20       additional pressure through -- through
 
         21       cesspits?
 
         22            MR. APGAR:  That's correct, sir.  They
 
         23       would -- they will go on the --
 
         24            COMMISSIONER BROGAN:  What about --
 
         25            MR. APGAR:  -- package plant, which will

 
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          1       have to be -- go to best available technology.
 
          2       And that --
 
          3            COMMISSIONER BROGAN:  And what's the status
 
          4       of the three hundred and change that are in the
 
          5       exempt status?
 
          6            MR. APGAR:  The Ocean Reef units are on a
 
          7       package plant also.  They have their own central
 
          8       treatment system.  They --
 
          9            COMMISSIONER BROGAN:  Which is --
 
         10            MR. APGAR:  -- go to what they call
 
         11       advanced secondary, which is better than
 
         12       secondary --
 
         13            COMMISSIONER BROGAN:  Ocean Reef is --
 
         14            MR. APGAR:  Is also on a --
 
         15            COMMISSIONER BROGAN:  Would that be --
 
         16            MR. APGAR:  -- treatment system.
 
         17            COMMISSIONER BROGAN:  -- the three hundred
 
         18       and change that are in the north Keys are
 
         19       Ocean Reef, and they're part of the package
 
         20       plant.
 
         21            MR. APGAR:  That's correct, sir.
 
         22            COMMISSIONER BROGAN:  So all but about 70
 
         23       have a guaranteed status of package plant or
 
         24       treatment system -- no?
 
         25            MR. APGAR:  I believe that's correct.

 
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          1            MR. HERMAN:  It's better than that.
 
          2            MR. APGAR:  Better than --
 
          3            MR. HERMAN:  The 52 at Captain's Cove would
 
          4       be on the package plant.
 
          5            MR. APGAR:  Okay.
 
          6            MR. HERMAN:  The only ones that wouldn't be
 
          7       would be Shark Key, which is 20.
 
          8            MR. APGAR:  So --
 
          9            COMMISSIONER BROGAN:  All right.
 
         10            MR. APGAR:  So all but 20 of the vested are
 
         11       exempt units.  All the 20 of the vested units
 
         12       will be on a package plant.  Out of the
 
         13       Ocean Reef, I know that some of them are on a
 
         14       small key called Pumpkin Key, there are 14
 
         15       potential units.  I don't know whether -- how
 
         16       that treatment will be handled.
 
         17            But everything else in Ocean Reef I'm
 
         18       pretty sure is on their package plant.
 
         19            COMMISSIONER BROGAN:  All right.  Bottom
 
         20       line, out of the 818 vested permits then, you're
 
         21       telling me that all but a handful have a
 
         22       guaranteed status of appropriate sewage removal.
 
         23            MR. APGAR:  That's correct.
 
         24            TREASURER NELSON:  You know, I wish you'd
 
         25       have made this clear earlier.  It sure would

 
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          1       have helped.
 
          2            MR. APGAR:  I -- we did not appreciate the
 
          3       concern with the vested units, or we certainly
 
          4       would have brought it up.
 
          5            COMMISSIONER BROGAN:  Yeah.  I've been
 
          6       trying to get this vested thing nailed down here
 
          7       for weeks.
 
          8            GOVERNOR CHILES:  Do we have it now?
 
          9            TREASURER NELSON:  We're hoping.
 
         10            (Attorney General Butterworth entered the
 
         11       room.)
 
         12            TREASURER NELSON:  We're hoping.
 
         13            GOVERNOR CHILES:  I hope so.
 
         14            COMMISSIONER BROGAN:  It all depends on
 
         15       what my next question is.
 
         16            But, yes, sir, I think we do.
 
         17            SECRETARY MORTHAM:  Governor --
 
         18            GOVERNOR CHILES:  Yes, ma'am.
 
         19            SECRETARY MORTHAM:  -- I'd like to move the
 
         20       staff recommendation.  And because there seems
 
         21       to be a little bit of a question or a confusion,
 
         22       on page 6 next to the last lines -- last line
 
         23       rather, I'd like to add the number of permits
 
         24       issued for new residential development.  And
 
         25       just add the words:  Under the Rate of Growth

 
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          1       Ordinance shall not exceed a total cap of 255.
 
          2            COMMISSIONER CRAWFORD:  I second that
 
          3       motion.
 
          4            GOVERNOR CHILES:  Everybody understand that
 
          5       motion as amended?
 
          6            Then moved and seconded.
 
          7            Is there objection?
 
          8            Without objection, the motion is passed.
 
          9            SECRETARY MORTHAM:  And, Governor, before
 
         10       we leave this item, one of the issues that
 
         11       I believe a lot of people on this dais has
 
         12       received input on is the docks issue.
 
         13            And I would like to request that we direct
 
         14       the Department of Community Affairs to
 
         15       coordinate and assist Monroe County to conduct
 
         16       with these other series of public workshops,
 
         17       address the current Comprehensive Plan and land
 
         18       development regulations affecting the
 
         19       development and placement of docks.
 
         20            This would allow the Department to provide
 
         21       technical assistance to the County in preparing
 
         22       a plan amendment, and implementing land
 
         23       development regulations, and would expedite
 
         24       review of those amendments and regulations.
 
         25            This is more of a service to Monroe County,

 
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          1       and possibly you'd like to speak to the issue.
 
          2       But I think that that would help all of us.
 
          3            GOVERNOR CHILES:  I think that's
 
          4       reasonable.  We'll ask them to do that.
 
          5            Thank you, ma'am.
 
          6            MS. GEHRES:  Thank you.
 
          7            GOVERNOR CHILES:  Board of Trustees.
 
          8            Are we through?
 
          9            DR. BRADLEY:  Did they -- did they -- did
 
         10       you take a vote on the motion --
 
         11            COMPTROLLER MILLIGAN:  Well, there was a
 
         12       motion, and I'll second it, and get on with it.
 
         13            SECRETARY MORTHAM:  I think he did it.
 
         14            DR. BRADLEY:  There was?
 
         15            COMPTROLLER MILLIGAN:  Yeah.
 
         16            DR. BRADLEY:  Okay.
 
         17            GOVERNOR CHILES:  You moved the staff
 
         18       recommendation, it was amended, and we voted on
 
         19       it.
 
         20            DR. BRADLEY:  Okay.  Thank you, Governor.
 
         21            Sorry.
 
         22            GOVERNOR CHILES:  Come back and see us
 
         23       again, we'll let you know when we vote.
 
         24            (The Administration Commission Agenda was
 
         25       concluded.)

 
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          1            GOVERNOR CHILES:  Secretary.
 
          2            We still have some other business to
 
          3       transact.  If you would just try to be quiet and
 
          4       you -- as you shuffle out.
 
          5            Thank you.
 
          6            MS. WETHERELL:  Item 1, minutes.
 
          7            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          8            SECRETARY MORTHAM:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, minutes are adopted.
 
         11            MS. WETHERELL:  Item 2, conveyance of Board
 
         12       of Trustees land to the University of Florida.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         14            SECRETARY MORTHAM:  Second.
 
         15            GOVERNOR CHILES:  Moved and seconded.
 
         16            Without objection, it's approved.
 
         17            MS. WETHERELL:  Item 3, rules repeal and
 
         18       rule amendment.
 
         19            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         20            SECRETARY MORTHAM:  Second.
 
         21            GOVERNOR CHILES:  Moved and seconded.
 
         22            Without objection, it's approved.
 
         23            MS. WETHERELL:  Item 4 is an option
 
         24       agreement for Archie Carr CARL project.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  Motion.

 
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          1            SECRETARY MORTHAM:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, it's approved.
 
          4            MS. WETHERELL:  Item 5 is a purchase
 
          5       agreement for Archie Carr CARL project.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          7            GOVERNOR CHILES:  That's moved and --
 
          8            COMPTROLLER MILLIGAN:  Second.
 
          9            GOVERNOR CHILES:  -- seconded.
 
         10            Without objection, it's approved.
 
         11            MS. WETHERELL:  Item 6, two purchase
 
         12       agreements for the Scrub Jay CARL project,
 
         13       designation of Brevard County as the managing
 
         14       agency, and confirmation of the management
 
         15       policy statement.
 
         16            SECRETARY MORTHAM:  Move approval.
 
         17            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         18            GOVERNOR CHILES:  Moved and seconded.
 
         19            Without objection, it's approved.
 
         20            MS. WETHERELL:  Item 7, an option agreement
 
         21       for Tate's Hell CARL project.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         23            SECRETARY MORTHAM:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.

 
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          1            MS. WETHERELL:  Item 8, five purchase
 
          2       agreements for the Maritime Hammock CARL
 
          3       project, designation of Brevard County as the
 
          4       managing agency, and confirmation of the
 
          5       management policy statement.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          7            SECRETARY MORTHAM:  Second.
 
          8            GOVERNOR CHILES:  Moved and seconded.
 
          9            Without objection, it's approved.
 
         10            MS. WETHERELL:  Item 9, an option agreement
 
         11       for the Save Our Everglades CARL project, and a
 
         12       request for a -- a waiver of survey.
 
         13            SECRETARY MORTHAM:  Move approval.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         15            GOVERNOR CHILES:  Moved and seconded.
 
         16            Without objection, it's approved.
 
         17            MS. WETHERELL:  Item 10, an option
 
         18       agreement for Cayo Costa CARL project, and a
 
         19       waiver of survey.
 
         20            SECRETARY MORTHAM:  Move approval.
 
         21            COMMISSIONER BROGAN:  Second.
 
         22            GOVERNOR CHILES:  Moved and seconded.
 
         23            Without objection, it's approved.
 
         24            MS. WETHERELL:  Item 11, a purchase
 
         25       agreement for FSU.

 
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          1            SECRETARY MORTHAM:  Move it.
 
          2            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          3            GOVERNOR CHILES:  Moved and seconded.
 
          4            Without objection, it's approved.
 
          5            MS. WETHERELL:  Item 12 is a delegation of
 
          6       authority and a waiver of survey under certain
 
          7       criteria.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          9            SECRETARY MORTHAM:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's approved.
 
         12            MS. WETHERELL:  Item 13, a purchase
 
         13       agreement of abandoned railroad right-of-way and
 
         14       release of funds.
 
         15            SECRETARY MORTHAM:  Move approval.
 
         16            COMMISSIONER BROGAN:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded.
 
         18            Without objection, it's approved.
 
         19            MS. WETHERELL:  Item 14 is the final
 
         20       order.  This is one that was -- this issue has
 
         21       been heard by you in April of '95.  You approved
 
         22       this lease agreement, it was contested.  The
 
         23       hearing officer has ruled in favor of your
 
         24       decision, and --
 
         25            (Secretary Mortham exited the room.)

 
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          1            MS. WETHERELL:  -- so it's back before you
 
          2       today for adoption of the final order of the
 
          3       hearing officer.  There are four people who wish
 
          4       to speak.
 
          5            There are three who wish to speak in
 
          6       opposition to it, and one in support of.
 
          7            Governor, would you recommend a time frame,
 
          8       or do you want to hold it to, like,
 
          9       10 minutes --
 
         10            GOVERNOR CHILES:  Let's --
 
         11            MS. WETHERELL:  -- per side --
 
         12            GOVERNOR CHILES:  -- let's hold them to
 
         13       5 minutes each.
 
         14            MS. WETHERELL:  Five minutes each per
 
         15       person.
 
         16            GOVERNOR CHILES:  Yes.
 
         17            MS. WETHERELL:  Okay.  I'll call on the
 
         18       first person, Colonel Bernard Campbell.
 
         19            MR. CAMPBELL:  Thank you, Ms. Wetherell.
 
         20            Governor Chiles, Madam Secretary, gentlemen
 
         21       of the Cabinet.  I'm Bernard Campbell, Park
 
         22       Chairman, Withlacoochee Area Residents, an
 
         23       organization of some 250 families.  And they
 
         24       asked me to represent their views to you.
 
         25            It is true, we had a hearing and the

 
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          1       hearing officer checked only on deeds.  And
 
          2       there were other issues which we were advised
 
          3       would be heard later if we wanted to, such
 
          4       things as pollution, such things as
 
          5       comprehensive plans, such things as public
 
          6       safety.  And I'd like to expr-- get to a couple
 
          7       of those today.
 
          8            That area, recreational area, has been
 
          9       designated as such for a long time, and the DCA
 
         10       has it down as designated as recreation and
 
         11       conservation.
 
         12            Federal warnings specify that the tail race
 
         13       of the plant envisioned would endanger swimmers,
 
         14       boaters, people having picnics on the shore, and
 
         15       residences downstream.
 
         16            (Secretary Mortham entered the room.)
 
         17            MR. CAMPBELL:  There are area users in that
 
         18       park a great deal of the warm weather, clement
 
         19       weather; and sometimes, of course, in bad
 
         20       weather, there's nobody, or just a few there.
 
         21            But there are other dangers to life and
 
         22       property involved.  The tail race will eject
 
         23       concentrated bursts of water right into a
 
         24       popular picnic area, or within a few feet of it,
 
         25       just above it, and people would be in danger of

 
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          1       being swept off and drowned.
 
          2            Silting and pollution of the Outstanding
 
          3       Florida Waterway is certain.  Any time you dig
 
          4       around water, you're going to get silting.
 
          5       Wildlife will be disturbed.  We have nesting
 
          6       birds there.  People do go there to bird watch.
 
          7       And the -- clearly not stay there with heavy
 
          8       equipment operating around.  The cormorants, the
 
          9       anhingas, the egrets, the cranes, and the
 
         10       blue herons will all just simply fly away.  They
 
         11       won't nest there, set their eggs.
 
         12            The discharge is very close to the most
 
         13       popular swimming area on the lower
 
         14       Withlacoochee River, and the danger of drowning
 
         15       swimmers is part of Federal warnings about
 
         16       hydroelectric plants.
 
         17            In addition, Southwest Florida Water
 
         18       Management District reports that the envisioned
 
         19       5 to 8 foot tail race will flood downstream
 
         20       housing, risking life and property at high
 
         21       tides.
 
         22            SWFWMD letter dated April 21st, 1994,
 
         23       signed by Mark Lapp, and I have furnished a copy
 
         24       of it to your aides.
 
         25            Flood prone structures will certainly lose

 
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          1       marketability and tax value.  Along the river in
 
          2       Inglis, as checked against the tax rolls, there
 
          3       are 39 million dollars in taxable property.
 
          4            There's an equal amount in Yankeetown; and
 
          5       across the river in Citrus County, there are
 
          6       many expensive residences, say, 100 million just
 
          7       as a round figure in properties along that river
 
          8       that could be flooded.
 
          9            But the soothing pipe dream, I'm afraid, of
 
         10       money coming in but never materializing has been
 
         11       sold to the state, to the county, and to the
 
         12       municipality.  And some few have awakened to the
 
         13       impossibilities, but others have been lulled
 
         14       into a somnolent acceptance.
 
         15            Are the Governor and the Trustees of the
 
         16       State of Florida prepared to risk the tax return
 
         17       from 100 million dollars of taxable property
 
         18       against the speculative return from an
 
         19       economically infeasible and destructive venture
 
         20       of an untried entrepreneur?  That's a lot of
 
         21       money.
 
         22            What is his track record?  What has he ever
 
         23       built before?  If so, where and when?  Can't we
 
         24       think this thing through, or we do -- or must we
 
         25       just move on impulse?

 
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          1            Compatibility should include economic
 
          2       feasibility.  In other words, you don't build a
 
          3       thing just because you can build it.  There
 
          4       should be some reason for it.
 
          5            The projector admits he can't compete
 
          6       competitively with other suppliers, and he would
 
          7       have to depend on Florida Power and the law to
 
          8       buy an unprofitable product.
 
          9            His product for a whole year, according to
 
         10       the Federal Energy and Regulatory Commission,
 
         11       would be about 1.17 megawatts.  Florida Power
 
         12       alone produced 8,000 megawatts in one day this
 
         13       past spring.  That shows you just by
 
         14       comparison.  If you'd like a contrast, have
 
         15       someone do it for you.
 
         16            Lack of viability means no taxes for state,
 
         17       county, or municipality.  There's a FERC letter,
 
         18       Federal Energy Regulatory Commission, letter to
 
         19       Robert Karow dated June 23rd, 1994, citing that
 
         20       meager public productivity of 1.17 megawatts,
 
         21       and I have furnished a copy of that to your
 
         22       aides also.
 
         23            The whole of Florida -- of the Hy-Power's
 
         24       project relies on small conduit operation.  And
 
         25       the Withlacoochee River does not meet the

 
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          1       definition of a small conduit.
 
          2            As defined by Federal law, a conduit like
 
          3       that must be dug for distribution to
 
          4       agriculture, municipal, or Federal consumption.
 
          5       That's the Federal Power Act, Part I.  I think
 
          6       probably you have access to it.
 
          7            Further, Section 4.30(b)(26)(v) requires
 
          8       that the water from the power generation be
 
          9       discharged into another conduit, directly to a
 
         10       point of agriculture, municipal, or industrial
 
         11       consumption, and there is no such downstream
 
         12       consumption.
 
         13            And there's another conduit downstream that
 
         14       must be drawing an amount of water equal or
 
         15       greater than that used for the production of
 
         16       electricity.  And that does not exist either.
 
         17            The Withlacoochee River was channeled for
 
         18       an approximate mile of its 100-mile length in
 
         19       order to preserve the riparian rights of the
 
         20       people living along it in Inglis, Yankeetown,
 
         21       and northwest Citrus County.
 
         22            The entire basis of Hy-Power's presumption
 
         23       is contrary to law and practice, therefore, and
 
         24       it becomes evident that the entire premise must
 
         25       be redefined, and the proposed lease definitely

 
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          1       reconsidered.
 
          2            In summary, if every challenged river
 
          3       became a small conduit because of one change in
 
          4       course, half the rivers in America would have to
 
          5       be defined as small conduits.  Even the
 
          6       Mississippi once changed its course.  Is it a
 
          7       small conduit?
 
          8            According to responsible management,
 
          9       this -- the project would be -- would worsen the
 
         10       potential for flooding and destroy tax revenue
 
         11       property to benefit one whose tax revenue is
 
         12       doubtful at best.  That should be of interest to
 
         13       the Comptroller and the Treasurer.
 
         14            And possibly the flooding should be of
 
         15       interest to the Insurance Commissioner.
 
         16            We have noted that one person has disputed,
 
         17       one person here in Tallahassee, the engineers of
 
         18       SWFWMD and Federal Energy Regulatory Commission,
 
         19       and those of the U.S. Corps of Engineers,
 
         20       because I guess he knows better, I don't know.
 
         21            But he has chosen to display that in
 
         22       substantial knowledge to the newspapers and say
 
         23       that we have scare tactics.  If the Federal
 
         24       Energy Regulatory Commission is trying to scare
 
         25       you, and the SWFWMD is trying to scare you, and

 
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          1       the U.S. Corps of Engineers is trying to scare
 
          2       you, then I'm getting scared, more of them than
 
          3       of the person up here who says it's all right
 
          4       and don't worry a bit.
 
          5            We maintain that this criticism rendered
 
          6       against those people is much like a piano
 
          7       student criticizing Paderewski.  It just doesn't
 
          8       make sense.
 
          9            Now, you have before you, or will have,
 
         10       acceptable -- accessible to you, the Federal
 
         11       Energy Regulations Commission's warning on the
 
         12       danger of a tail race, and the SWFWMD report
 
         13       that the proposed tail race of the Hy-Power
 
         14       facility will cause downstream flooding.
 
         15            Yesterday I was asked to explain how that
 
         16       could be, since we already had flooding in the
 
         17       No Name storm on the -- March 1993 No Name storm
 
         18       down around that area.
 
         19            Well, first the Withlacoochee River is
 
         20       flood controlled by restrictive culverts and
 
         21       floodgates.
 
         22            Second, we have several high tides each
 
         23       year.  If the floodgates are not closed or
 
         24       partially closed, the full flow of the river
 
         25       meets the incoming tide, and meets it like a

 
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          1       water dam, and both of them overflow, the tide
 
          2       and the river.  Then you have flooding in both
 
          3       Yankeetown and Inglis.
 
          4            If the gates are lowered -- and northwest
 
          5       Citrus.
 
          6            If the floodgates are lowered and part --
 
          7       or partially closed, then you can mitigate that
 
          8       inflow of tide to some extent, because it can
 
          9       use the Blue River to flow into.  But if it's
 
         10       left wide open, and the full flow of the river
 
         11       less the flow of the tide, then you have the
 
         12       flooding, you have your No Name storm of 1993.
 
         13            Anyone with a bucket can prove that when
 
         14       you add water to water, you get more water.
 
         15       Whether it's salt or fresh, or mixture, doesn't
 
         16       make any difference.
 
         17            The -- now DEP plans to remove those flood
 
         18       control culverts.  And Hy-Power proposes to go
 
         19       around the floodgates.  All you have to do is
 
         20       look at their plans, and it shows them.
 
         21            So why were the gates not closed in the
 
         22       1993 flood?  Because the tidal surge occurred
 
         23       during the dark of night, the operator was a
 
         24       member of the local fire department and was
 
         25       called out to rescue people by boat from their

 
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          1       homes.  Some of them were standing on tables,
 
          2       waiting in Yankeetown.
 
          3            Quite properly, the saving of lives took
 
          4       precedence over the preservation of property.
 
          5            All right.  So, member of the Boards --
 
          6       members of the Board of Trustees, engineers of a
 
          7       Federal agency and the State agency have advised
 
          8       you of the dangers inherent with this project.
 
          9       We were told that we might appeal for hearing on
 
         10       some of these additional concerns.  The
 
         11       hearing officer heard only about the deeds.  And
 
         12       these things are very important.
 
         13            The lives and properties of Florida
 
         14       citizens should not be treated as if they were
 
         15       broken toys or rag dolls thrown away when
 
         16       they're through with them.
 
         17            Finally, the State of Florida has too much
 
         18       to lose and too little to gain from this
 
         19       venture.  Approval by you would sew many bitter
 
         20       seeds.  And, ladies and gentlemen, bitter seeds
 
         21       grow grievously better fruit.
 
         22            Thank you.
 
         23            GOVERNOR CHILES:  Thank you.
 
         24            MS. CAMPBELL:  My name is Bett Campbell.  I
 
         25       am -- I've been here several times before.

 
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          1            But I -- you have in front of you a letter
 
          2       from the Yankeetown Woman's Club, of which I'm a
 
          3       member, and have been asked to represent them.
 
          4            We have 104 members.  In 1988, we voted
 
          5       unanimously to oppose this project.
 
          6            I believe we called on you as a Senator,
 
          7       Governor Chiles, when you were up there, to
 
          8       please help us.  We had help back then.  And
 
          9       we're asking for more help now.
 
         10            I'm also the District V conservation
 
         11       chairman.  That covers five counties with 18
 
         12       Woman's Clubs and 2500 members.  We are --
 
         13       I think --
 
         14            (Treasurer Nelson exited the room.)
 
         15            MS. CAMPBELL:  -- I believe Mrs. Mortham --
 
         16       I know she's familiar with it, and I believe she
 
         17       is a Woman's Clubber.
 
         18            Okay.  We strongly object to this project.
 
         19       But -- oh, besides the 104 and the letters and
 
         20       faxes you got this week, I still have these 475
 
         21       I brought last year who object to this project.
 
         22            It's so vital to our community to have this
 
         23       little park, this one little area on the river
 
         24       where people can go swim, picnic, fish, whatever
 
         25       they want to do.  And it is the only access that

 
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          1       those people have to the river.  And I think
 
          2       it's a shame to think about taking that away
 
          3       from people.
 
          4            And another -- but the big thing I want --
 
          5       or the other thing I wanted to talk mostly about
 
          6       today, the taxpayers only got a chance to see
 
          7       the lease in early March.  And I went through
 
          8       it, I was trained to write charters on boats,
 
          9       which is a very similar item, and to pick out
 
         10       flaws in it.
 
         11            According to the lease, we taxpayers are
 
         12       going to pay $500,000 to have rock culverts
 
         13       removed.  Mr. Karow will help out $75,000 with
 
         14       that.  The taxpayers will be left with $425,000
 
         15       of money spent to remove our best flood control
 
         16       that is in place at present, and that's
 
         17       according to Griner report.  I have that if some
 
         18       of you want to talk to me later.
 
         19            I can also guarantee, $110,000 will not
 
         20       keep that spillway channel repaired for
 
         21       ten years.  The taxpayers will be left to pick
 
         22       up the -- the overflow there.
 
         23            And another thing, and, Mr. Nelson, I --
 
         24       oh, he isn't here.
 
         25            Okay.  I don't know whether he got a chance

 
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          1       to see this or not.  But the lease is written
 
          2       that Mr. Karow, or Hy-Power, will have to have
 
          3       5 million dollars worth of insurance to be in
 
          4       place 90 days after he starts the project.
 
          5            What good is insurance -- what are they
 
          6       going to do with that 90 days?  If something
 
          7       happens, who's going to pay for that, the
 
          8       taxpayer?  There's nothing in that lease that
 
          9       takes care of who will pay for that part.
 
         10            Back -- I don't remember when we finished
 
         11       and got it approved.  I believe it was about
 
         12       1993 -- but all the towns had to work on a
 
         13       comprehensive plan.  We spent tax money; we
 
         14       spent state money; and many, many, many
 
         15       volunteer hours, getting our
 
         16       comprehensive plan.
 
         17            And that area was held back at that time
 
         18       for recreation and conservation.  We're going to
 
         19       give it away, there's no recreation.  So it is
 
         20       in violation of our comprehensive plan.
 
         21            A couple of years ago, some senators got a
 
         22       new statute through the Senate that
 
         23       hydroelectric --
 
         24            (Treasurer Nelson entered the room.)
 
         25            MS. CAMPBELL:  -- generation of

 
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          1       hydroelectric power is compatible with the
 
          2       Greenway.  And -- that's what we heard when we
 
          3       came up here, well, it is compatible with the
 
          4       Greenway.
 
          5            But the latter part of that statute says:
 
          6       Provided that such hydroelectric power complies
 
          7       with all requisite, state, and federal,
 
          8       environmental, and water management standards.
 
          9       This one does not.
 
         10            I have a letter written from SWFWMD, and
 
         11       signed by Mark Lapp, Assistant General Counsel
 
         12       for SWFWMD, written to the Secretary of the
 
         13       Federal Energy Commission, saying:  Memorandum
 
         14       to the file of Robert Karow of Hy-Power --
 
         15            Excuse me.
 
         16            -- regarding the meeting called by Senator
 
         17       Charles Wheat is not an accurate reflection of
 
         18       all that was discussed at that meeting.
 
         19            At that time, the Department of
 
         20       Environmental Protection placed certain
 
         21       requirements on Hy-Power that would have to be
 
         22       met prior to gaining the State support for this
 
         23       project.
 
         24            These requirements were:  The entire bypass
 
         25       channel and spillway must be included as part of

 
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          1       the project.  Hy-Power would be responsible to
 
          2       repair and maintain the entire length of the
 
          3       bypass spillway.
 
          4            He is saying something, like, 150 or
 
          5       200 feet.
 
          6            Hy-Power must relinquish in writing all
 
          7       control over water resource.
 
          8            I think he's done that.
 
          9            Hy-Power must post a performance bond equal
 
         10       in value to the estimated cost of the project.
 
         11            And Hy-Power needs to address these
 
         12       concerns.
 
         13            He hasn't.  So he has not met the State
 
         14       water management regulations.
 
         15            Bernie mentioned the 5 foot tail race, so I
 
         16       won't go into that to save time.  But we are all
 
         17       afraid of what will happen then.
 
         18            As a matter of fact, we live about
 
         19       1200 feet down river from the spillway.  We
 
         20       have -- and we didn't do it, it was dug in the
 
         21       1950s -- we have a boat basin, a little place
 
         22       off the river on our property, that we happened
 
         23       to find a vacant lot with that there, and we
 
         24       bought it.
 
         25            But we have two sea walls, one is down

 
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          1       lower so that when we bring the boat into the
 
          2       boat basin, we can step off the boat on that
 
          3       lower sea wall.
 
          4            Then we have another one higher.  And when
 
          5       water started coming over our upper sea wall
 
          6       about a year ago, after the Greenway people
 
          7       started closing the locks and things, we asked
 
          8       them to cut it off, because we learned that
 
          9       people in Yankeetown were about to get water in
 
         10       their houses.  Another inch, and water would
 
         11       have been in their houses.
 
         12            Another --
 
         13            Okay.
 
         14            Another thing that I want to bring up is
 
         15       that Federal Energy Commission has told
 
         16       Mr. Karow for long -- all through the thing that
 
         17       he can only make 1.17 megawatts of electricity.
 
         18       Florida Power is obligated to buy his
 
         19       electricity.  But they don't have to pay him any
 
         20       more for it than it costs them, Florida Power,
 
         21       to produce their own electricity.  And that cost
 
         22       is under 3 cents per kilowatt.
 
         23            So maybe you have a computer that you can
 
         24       figure that out faster than I can, how much he
 
         25       will lose, because he won't make any money, it

 
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          1       will be a losing proposition.
 
          2            Thank you very much.
 
          3            GOVERNOR CHILES:  Thank you, ma'am.
 
          4            MS. BERGER:  Hi.  I'm Sarah, Betty,
 
          5       Berger.
 
          6            Three of you folks signed -- signed the
 
          7       deed with the resolution with the seal of
 
          8       Florida that you would abide by the resolution
 
          9       to maintain that area 900 feet wide for
 
         10       recreation and park and conservation.
 
         11            And I feel that you have broken your
 
         12       promise to Washington perhaps because you forgot
 
         13       that you signed it.  I -- because I know that
 
         14       you're all honorable people.  And it wasn't --
 
         15       you maybe didn't just think about it.
 
         16            But this happened less than two years after
 
         17       you -- you made the resolution and signed the
 
         18       deeds and you gave letters to the United States
 
         19       Congress what you would do.
 
         20            And I've -- I've typed it out because --
 
         21       and given it to your aides what you promised.
 
         22       And you promised to do this, and it could not be
 
         23       changed.
 
         24            Well, this is -- this is the gem of the
 
         25       nature coast.  This is what we're talking

 
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          1       about.  We are given -- the people of Florida
 
          2       are given 875 feet from the top of this park to
 
          3       the middle of the barge canal.
 
          4            And, in fact, number 2,000, dash, 2.  This
 
          5       plant -- this extent -- this includes the
 
          6       spillway channel.  This plant will be on the
 
          7       south side within that 2000-2.  It will go into
 
          8       part of our -- of the 2000-2 when it uses --
 
          9       when it discharges into the channel.
 
         10            This is the only access that -- that Inglis
 
         11       and citizens that come to visit have to the
 
         12       river, and to the barge canal.
 
         13            They -- DEP plans to shut this off right
 
         14       here, because they're going to fence that in.
 
         15       We will have -- we will lose several hundred
 
         16       acres of all of this land back there that will
 
         17       be fenced from the public.  And I know that
 
         18       you're interested in the public trust that was
 
         19       assigned to you.
 
         20            I have letters from Bob Graham,
 
         21       Connie Mack, and Karen Thurman.  They are -- are
 
         22       dealing with FERC about not giving them a permit
 
         23       for this.  They are hopefully going to -- to
 
         24       contact you folks.
 
         25            But wouldn't that be embarrassing if you --

 
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          1       when you realize that you promised them this.
 
          2       And what you gave them in the contract, you're
 
          3       taking away in the fine print.  Don't do that.
 
          4       Don't forget what -- what you promised us.
 
          5            All of these letters are all from -- with
 
          6       Bob Graham, Connie Mack, and Karen Thurman.
 
          7            This is part of them.
 
          8            And National Marine Fisheries has written
 
          9       me, and they said habitat -- now, this is part
 
         10       of your trust -- habitat of living -- of -- on
 
         11       the affected uplands will be affected, and they
 
         12       said the -- the fishery of Lake Rousseau will be
 
         13       affected.
 
         14            I've sent this to Fresh Water Fish & Game.
 
         15       And -- but I've just done this recently.
 
         16            I have a study from Fresh Water Fish & Game
 
         17       that says this fishery is valued at 4 million
 
         18       dollars.  This is all going to be diverted
 
         19       through this bypass channel through a turbine
 
         20       and ground up.  The --
 
         21            These are all public documents from
 
         22       Washington.  These are Assessments of Fish
 
         23       Entrainment at Hydropower Projects.  And Impacts
 
         24       of Hydroelectric Plant Tail Races on Fish
 
         25       Passage.

 
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          1            And they are saying in here that when they
 
          2       have a concrete structure, and the fish try to
 
          3       swim upstream, the plant comes on the line, it
 
          4       bangs them into the concrete, they die of their
 
          5       injuries.
 
          6            So with coming downstream, they're getting
 
          7       ground up; going upstream, they haven't got a
 
          8       prayer.
 
          9            These are all -- all public documents that
 
         10       Hy-Power has had access to, but they did not use
 
         11       them in their application.  I've gotten them out
 
         12       of -- out of Washington.
 
         13            This is all on dam safety.  These are
 
         14       published by FERC.
 
         15            Here's an underwater tape that shows that
 
         16       these structures are ready to collapse.  The --
 
         17       this plant plans to go through the -- a ring
 
         18       wall that is very shaky.
 
         19            Griner, that canal authority hired -- hired
 
         20       Dive-Tech to take this.  No -- no official in --
 
         21       in authority wants to see this because they
 
         22       don't want to change the -- their ideas on
 
         23       the -- on their -- they want to -- they don't
 
         24       want to have to know what's really going on is
 
         25       all I can say.  But I haven't asked you folks to

 
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          1       listen to this.
 
          2            But I did ask Kirkpatrick, and he didn't.
 
          3       I asked the -- some of the commissioners, and
 
          4       they didn't.  But Inglis, Yankeetown, and
 
          5       Citrus County are all intervenors with FERC
 
          6       against this.  That's a lot of people.
 
          7            Now, politics last year in -- in Inglis let
 
          8       them put out a resolution.  Politics are
 
          9       changing next month.  That resolution may very
 
         10       well end up that they won't -- that the new
 
         11       Commission won't be recommending that you could
 
         12       lease out this land, because it's a state law,
 
         13       you can't if they say-so.
 
         14            And there was no taxes involved here.
 
         15       There's a State law says they don't -- renewable
 
         16       energy source doesn't pay ad valorem taxes.  All
 
         17       it needs is updating.
 
         18            They tried it last year, and it had so many
 
         19       bills, it didn't get out of Committee.  I bet it
 
         20       gets out this year.
 
         21            Thank you.
 
         22            GOVERNOR CHILES:  Thank you.
 
         23            MS. BERGER:  If I could just say that this
 
         24       is where they -- the deeds say that we should
 
         25       walk from, up here, we should walk across here.

 
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          1            Instead of being able to cross here
 
          2       30 feet, because the hydroplant wants there, we
 
          3       should walk a mile-and-a-quarter, or 3 miles
 
          4       from 19 in order to get to this area.  And it's
 
          5       only 450 feet wide, the land.
 
          6            That doesn't give us the 500 feet that we
 
          7       have to be away from that tail race.  There's no
 
          8       way that we could survive with that plant
 
          9       there.  And maybe the pictures won't either.
 
         10            Thank you again.
 
         11            GOVERNOR CHILES:  Thank you, ma'am.
 
         12            MR. THOMPSON:  Good afternoon,
 
         13       Governor Chiles, members of the Trustees, my
 
         14       name is Dan Thompson with the law firm of
 
         15       Berger & Davis, represent Southern Hy-Power.
 
         16            Also with me is Bob Karow, who's the
 
         17       president of Southern Hy-Power.
 
         18            I'd just like to make very -- three very
 
         19       brief points.  First of all, State law has
 
         20       expressly authorized the -- excuse me -- has
 
         21       expressly authorized the use of hydroelectric
 
         22       power on Greenway property in this area.
 
         23            Secondly, you voted last April to -- to
 
         24       grant -- grant a sublease to -- to
 
         25       Southern Hy-Power to do that authorized

 
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          1       purpose.
 
          2            And, third, that that -- that decision was
 
          3       challenged, and the hearing officer found that
 
          4       your original decision was correct as a matter
 
          5       of fact and as a matter of law.
 
          6            Now, there are a number of allegations that
 
          7       have been raised that we are prepared to
 
          8       address.  But rather than to do that, I would
 
          9       rather be available to answer questions or have
 
         10       Mr. Karow answer questions.
 
         11            I believe there's also staff from the
 
         12       office of Greenways here as well.
 
         13            But rather than to detail -- I know the
 
         14       hour is late -- to detail all the specific
 
         15       issues that have been -- that have been raised,
 
         16       I'd prefer to answer questions, if there are
 
         17       any.
 
         18            GOVERNOR CHILES:  Are there questions?
 
         19            Yes, sir.
 
         20            TREASURER NELSON:  Could the Secretary
 
         21       address the question of the access to the -- to
 
         22       the picnic area?
 
         23            MR. THOMPSON:  I could --
 
         24            MR. PLANTE:  For the record, I'm
 
         25       Ken Plante, General Counsel for DEP.

 
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          1            The picnic area will continue to be
 
          2       accessible by everybody.  What Ms. Campbell and
 
          3       Ms. Berger are talking about are the south part,
 
          4       which is across the spillway.
 
          5            And currently it's accessible, you have to
 
          6       cross the spillway itself, the structure to get
 
          7       at it.  It's chained off so there's no vehicular
 
          8       traffic across it.  Pedestrian traffic does go
 
          9       across it.
 
         10            The -- the applicant has not requested that
 
         11       all of this be chained off.  That's been done at
 
         12       the request of the Greenways people because
 
         13       there's a safety factor involved that the kids
 
         14       go over there, and they're diving off into the
 
         15       rapids.  So by cutting it off, we think it's a
 
         16       safety hazard.
 
         17            The hearing officer specifically found that
 
         18       the accessibility to the southern portion was
 
         19       not an issue, was separate and apart from the
 
         20       lease itself.  And it did not preclude either a
 
         21       pedestrian bridge or some other access being
 
         22       constructed at a later date.
 
         23            But our concern as part of the Department
 
         24       was the kids that are diving off of that that
 
         25       may be injured in the -- the rapids that are

 
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          1       right below the spillway.
 
          2            GOVERNOR CHILES:  All right.  Any other
 
          3       questions?
 
          4            COMPTROLLER MILLIGAN:  Governor, if I may
 
          5       make a quick comment.  I, as you know, opposed
 
          6       this initially, and I still do oppose it as a
 
          7       project.
 
          8            But because of the narrow aspects of the
 
          9       hearing officer's review, I would move that we
 
         10       accept the hearing officer's findings.
 
         11            COMMISSIONER CRAWFORD:  Second.
 
         12            GOVERNOR CHILES:  Moved and seconded the
 
         13       hearing officer's report -- or the staff
 
         14       recommendation on the hearing officer's report.
 
         15            Is there discussion?
 
         16            So many as favor, signify by saying aye.
 
         17            ATTORNEY GENERAL BUTTERWORTH:  Aye.
 
         18            COMMISSIONER CRAWFORD:  Aye.
 
         19            TREASURER NELSON:  Aye.
 
         20            COMPTROLLER MILLIGAN:  Aye.
 
         21            GOVERNOR CHILES:  Opposed, no.
 
         22            Let's see.  Did you --
 
         23            COMPTROLLER MILLIGAN:  Oh, I voted on it.
 
         24            GOVERNOR CHILES:  So -- all right.  I just
 
         25       wanted to --

 
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          1            All right.  By your vote, you've approved
 
          2       the hearing -- the recommendation.
 
          3            MS. WETHERELL:  Thank you.
 
          4            ATTORNEY GENERAL BUTTERWORTH:  Governor, I
 
          5       just have one quick -- I think if I can just
 
          6       bring it up, and I wish to commend
 
          7       Secretary Mortham forming a resolution on
 
          8       cruise ships today.  I think it's -- it's very
 
          9       much needed.
 
         10            We have the opportunity to bounce off of
 
         11       this resolution.  And since we are Trustees for
 
         12       the State's land, sitting as the Board of
 
         13       Trustees, we can add a -- a clause to our lease
 
         14       when we do lease state sovereignty lands for --
 
         15       for docking, that we can -- we can put in there
 
         16       that someone who gets a lease from us could not
 
         17       lease any space to a cruise ship to nowhere.
 
         18            And if the -- and if the Board wants, we
 
         19       can work together with the Secretary and -- and
 
         20       staff in order to draft that and have it
 
         21       available for the next meeting.
 
         22            SECRETARY MORTHAM:  That's fine.
 
         23            GOVERNOR CHILES:  We can look at that.
 
         24            All right.
 
         25            MS. CAMPBELL:  May I ask one question?

 
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          1            GOVERNOR CHILES:  Yes, ma'am.
 
          2            MS. CAMPBELL:  We -- in our request for
 
          3       administrative hearing, we had several parts
 
          4       that we wanted him to be heard on.  On the
 
          5       environment, on the safety, on some other
 
          6       things.
 
          7            And when Mr. Sartin went down there, he
 
          8       said that day he was only going to hear on the
 
          9       deed.  But we could hear the -- the others could
 
         10       be heard at later dates.
 
         11            This thing that you just did says petitions
 
         12       instead of the petition.  Does that mean that
 
         13       that canceled out, we can't be heard on the
 
         14       other things that the administrative
 
         15       hearing officer had told us we could hear on?
 
         16            GOVERNOR CHILES:  I'd like to hear from
 
         17       staff on that, because I know nothing about that
 
         18       kind of a -- you know, the agreement.  So let's
 
         19       hear what staff has to say about it.
 
         20            MR. PLANTE:  As part of the lease
 
         21       conditions, the -- Hy-Power has to comply with
 
         22       all State and Federal regulations, which means
 
         23       they are going to have to apply for all the
 
         24       permits to do this.
 
         25            So all of the environmental concerns, all

 
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          1       of the Federal concerns will be addressed, the
 
          2       500 feet from the trail -- the spillway and all,
 
          3       that will be addressed in the actual Federal
 
          4       permit.
 
          5            The flooding conditions will be addressed
 
          6       in the permit that has to be obtained from the
 
          7       Water Management District.  Those environmental
 
          8       concerns, and I reread the recommended order
 
          9       this morning, and that is what I believe the
 
         10       hearing officer was referring to is a separate
 
         11       time and place for these, but it wasn't with the
 
         12       Board of Trustees' lease, because it was
 
         13       conditioned upon it.
 
         14            COMMISSIONER BROGAN:  Governor --
 
         15            GOVERNOR CHILES:  I think that appears to
 
         16       be the answer, that there will be an opportunity
 
         17       as a Federal permit, there will be an
 
         18       opportunity for the Water Management Board.
 
         19            So there are other permits that have to be
 
         20       approved.  And at each of those, public comment
 
         21       will be available.
 
         22            MS. CAMPBELL:  Will we be notified of those
 
         23       so that we can --
 
         24            MR. PLANTE:  You should be.
 
         25            MS. CAMPBELL:  I know we should be, but I

 
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          1       said will we?
 
          2            GOVERNOR CHILES:  We can notify you, or we
 
          3       can ask the Water Management District to notify
 
          4       you.
 
          5            MS. CAMPBELL:  That's what I mean.
 
          6            GOVERNOR CHILES:  But realize, the Federal
 
          7       government, they do their own thing, and we
 
          8       can't exactly tell them.  So --
 
          9            MS. CAMPBELL:  I know.  But they notify us
 
         10       of everything.  That's how we got the lease --
 
         11            GOVERNOR CHILES:  Right.
 
         12            MS. CAMPBELL:  -- was from the Federal
 
         13       government.
 
         14            GOVERNOR CHILES:  Yes, ma'am.
 
         15            MR. CAMPBELL:  May I ask one more
 
         16       question?
 
         17            GOVERNOR CHILES:  Yes, sir.
 
         18            MR. CAMPBELL:  I asked it before:  Are the
 
         19       Governor and the Board of Trustees prepared to
 
         20       risk the tax return from the 100 million dollars
 
         21       of taxable property --
 
         22            GOVERNOR CHILES:  We just took that vote.
 
         23            MR. CAMPBELL:  You just took that vote.
 
         24            GOVERNOR CHILES:  Yes, sir.
 
         25            MR. CAMPBELL:  Well, so you are prepared to

 
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          1       take that risk.
 
          2            GOVERNOR CHILES:  We just took that vote.
 
          3       Yes, sir.
 
          4            (The Board of Trustees of the Internal
 
          5       Improvement Trust Fund Agenda was concluded.)
 
          6                             *
 
          7            (The meeting was concluded at 12:34 p.m.)
 
          8
 
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                                  March 28, 1996
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          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 129 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 5TH day of APRIL, 1996.
 
         17
 
         18
 
         19                           LAURIE L. GILBERT, RPR, CCR
                                      100 Salem Court
         20                           Tallahassee, Florida 32301
                                      (904) 878-2221
         21
 
         22
 
         23
 
         24
 
         25

 
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