Cabinet
Affairs |
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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
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Representing:
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STATE BOARD OF ADMINISTRATION
6 DIVISION OF BOND FINANCE
DEPARTMENT OF HIGHWAY SAFETY
7 AND MOTOR VEHICLES
FLORIDA LAND AND WATER
8 ADJUDICATORY COMMISSION
MARINE FISHERIES COMMISSION
9 TRUSTEES OF THE INTERNAL
IMPROVEMENT TRUST FUND
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11 The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Chiles
12 presiding, in the Cabinet Meeting Room, LL-03,
The Capitol, Tallahassee, Florida, on Tuesday,
13 July 9, 1996, commencing at approximately 9:53 a.m.
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16 Reported by:
17 LAURIE L. GILBERT
Registered Professional Reporter
18 Certified Court Reporter
Notary Public in and for
19 the State of Florida at Large
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23 ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
24 TALLAHASSEE, FLORIDA 32301
904/878-2221
25 1-800/934-9090
July 9, 1996
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1 APPEARANCES:
2 Representing the Florida Cabinet:
3 LAWTON CHILES
Governor
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BOB CRAWFORD
5 Commissioner of Agriculture
6 BOB MILLIGAN
Comptroller
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SANDRA B. MORTHAM
8 Secretary of State
9 BOB BUTTERWORTH
Attorney General
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BILL NELSON
11 Treasurer
12 FRANK T. BROGAN
Commissioner of Education
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ACCURATE STENOTYPE REPORTERS, INC.
July 9, 1996
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1 I N D E X
2 ITEM ACTION PAGE
3 ELECTIONS COMMISSION VOTE
4 Approved 6
5 STATE BOARD OF ADMINISTRATION:
(Presented by Barbara Jarriel,
6 Acting Executive Director)
7 1 Approved 7
2 Approved 7
8 3 Approved 8
4 Approved 8
9 5 Approved 9
6 Approved 9
10 7 Approved 9
8 Approved 15
11 9 Approved 16
Good Cause Item 17
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DIVISION OF BOND FINANCE:
13 (Presented by J. Ben Watkins, III,
Director)
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1 Approved 23
15 2 Deferred 24
3 Approved 25, 27
16 4 Approved 27
5 Approved 28
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DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES:
18 (Presented by Fred O. Dickinson, III,
Executive Director)
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1 Approved 29
20 2 Approved 29
3 Approved 30
21 4 Approved 43
5 Deferred 46
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ACCURATE STENOTYPE REPORTERS, INC.
July 9, 1996
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1 I N D E X
(Continued)
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ITEM ACTION PAGE
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FLORIDA LAND AND WATER ADJUDICATORY COMMISSION
4 (Presented by Robert B. Bradley, Ph.D.,
Secretary)
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1 Approved 47
6 2 Deferred 47
7 MARINE FISHERIES COMMISSION:
(Presented by Russell S. Nelson, Ph.D.,
8 Executive Director)
9 A Approved 48
B Approved 48
10 C Approved 53
11 BOARD OF TRUSTEES,
INTERNAL IMPROVEMENT
12 TRUST FUND:
(Presented by Virginia B. Wetherell,
13 Secretary)
14 1 Approved 54
2 Approved 54
15 3 Approved 54
4 Approved 55
16 5 Approved 55
Substitute 6 Approved 55
17 7 Approved 56
8 Approved 56
18 Substitute 9 Approved 58
10 Approved 58
19 11 Approved 59
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CERTIFICATE OF REPORTER 60
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ACCURATE STENOTYPE REPORTERS, INC.
ELECTIONS COMMISSION VOTE
July 9, 1996
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1 P R O C E E D I N G S
2 (The agenda items commenced at 10:21 a.m.)
3 GOVERNOR CHILES: We need a -- a vote on
4 appointing members to the Elections Commission.
5 Do we have --
6 ATTORNEY GENERAL BUTTERWORTH: I'll make
7 that motion, Governor.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: It's been moved and
10 seconded.
11 So many as favor -- let's have a roll call
12 vote on that. I think we should have it.
13 Would you call the roll on that?
14 COURT REPORTER: Commissioner Brogan.
15 COMMISSIONER BROGAN: I vote yes.
16 COURT REPORTER: Commissioner Crawford.
17 COMMISSIONER CRAWFORD: Yes.
18 COURT REPORTER: Treasurer Nelson.
19 TREASURER NELSON: Yes.
20 COURT REPORTER: Comptroller Milligan.
21 COMPTROLLER MILLIGAN: Yes.
22 COURT REPORTER: General Butterworth.
23 ATTORNEY GENERAL BUTTERWORTH: Yes.
24 COURT REPORTER: Secretary Mortham.
25 SECRETARY MORTHAM: Yes.
ACCURATE STENOTYPE REPORTERS, INC.
ELECTIONS COMMISSION VOTE
July 9, 1996
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1 COURT REPORTER: Governor Chiles.
2 GOVERNOR CHILES: Yes.
3 By your vote, you have affirmed the
4 appointment of the members to the
5 Elections Commission.
6 Our next Cabinet meeting will be on
7 July 23rd of 1996.
8 (The Elections Commission Vote was
9 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 GOVERNOR CHILES: And now we'll start on
2 our agenda with State Board of Education --
3 State Board of Administration.
4 COMMISSIONER BROGAN: I gave you the day
5 off, Governor.
6 GOVERNOR CHILES: Yes, sir.
7 COMPTROLLER MILLIGAN: Again?
8 MS. JARRIEL: Good morning from the State
9 Board of Administration.
10 The first item we have on our agenda this
11 morning is the approval of the June 13
12 meeting -- meeting, please.
13 TREASURER NELSON: I move it.
14 COMPTROLLER MILLIGAN: And second.
15 GOVERNOR CHILES: Moved and seconded.
16 Without objection, it's approved.
17 MS. JARRIEL: Second item is a
18 recommendation to approve fiscal sufficiency not
19 to exceed two hundred and twelve million State
20 Board of Education PECO Bonds, 1995 series.
21 TREASURER NELSON: And I move it.
22 COMPTROLLER MILLIGAN: Second.
23 GOVERNOR CHILES: Moved and seconded.
24 Without objection, it's approved.
25 MS. JARRIEL: The third item also is a
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 recommendation to approve fiscal sufficiency not
2 to exceed nine million seven hundred thousand
3 Florida Housing Finance Agency Revenue Bonds,
4 St. Cloud Village Apartments.
5 TREASURER NELSON: Move it.
6 COMPTROLLER MILLIGAN: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, it's approved.
9 MS. JARRIEL: Next item is a recommendation
10 to approve fiscal sufficiency not to exceed
11 two hundred and seventy-five million Department
12 of Transportation Right-of-Way Acquisition and
13 Bridge Construction Bonds.
14 COMPTROLLER MILLIGAN: Motion.
15 TREASURER NELSON: Second.
16 GOVERNOR CHILES: Moved and seconded.
17 Without objection, that's approved.
18 MS. JARRIEL: Next item is a recommendation
19 to approve fiscal sufficiency not to exceed
20 nineteen million one hundred thousand
21 State Board of Education Capital Outlay
22 Refunding Bonds.
23 COMPTROLLER MILLIGAN: I move it.
24 TREASURER NELSON: Second.
25 GOVERNOR CHILES: Moved and seconded.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 Without objection, it's approved.
2 MS. JARRIEL: The next item, a
3 recommendation to approve fiscal sufficiency not
4 to exceed nine million eight hundred thousand
5 Florida Housing Finance Agency Revenue Bonds,
6 Villas of Capri project.
7 COMPTROLLER MILLIGAN: Move it.
8 TREASURER NELSON: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, that is approved.
11 MS. JARRIEL: The next item is the SBA
12 operating budget for 1996-97. This budget was
13 previously -- previously submitted at the
14 June 13th meeting, and was deferred until
15 today's date.
16 I believe we have appropriately responded
17 to questions on this item. We hereby have
18 resubmitted that budget, and are requesting
19 approval.
20 COMPTROLLER MILLIGAN: I move it.
21 TREASURER NELSON: And I second.
22 GOVERNOR CHILES: Moved and seconded.
23 Without objection, that's approved.
24 MS. JARRIEL: The next item is the search
25 and selection process for the new Executive
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 Director for the State Board of Administration.
2 The Trustees' offices have jointly developed a
3 search and selection process, as well as the
4 eligibility criteria for the new
5 Executive Director.
6 We're requesting approval and adoption so
7 that that search and selection process can
8 proceed.
9 TREASURER NELSON: And I move it.
10 COMPTROLLER MILLIGAN: And I second it,
11 Governor.
12 But I'd like to make a comment, if I may.
13 GOVERNOR CHILES: Yes, sir.
14 COMPTROLLER MILLIGAN: I first would like
15 to congratulate the staff on a -- on -- all the
16 staffs that worked on this, in doing a fine job
17 in pulling together a process that I think makes
18 good sense.
19 I have one area of concern, and it kind of
20 reflects what we just heard in terms of the
21 distance learning innovation and the little
22 discussion they had on perception.
23 And I think there are a couple elements of
24 that approach that we are taking that deserve
25 some consideration on our part before we approve
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 it totally.
2 And that deals with the paragraphs 5 and 8
3 in the search and selection process that talk
4 about a majority of -- vote on the part of the
5 selection committee in recommending ten people
6 be -- or so be interviewed, and then ultimately
7 three to five candidates, by majority vote, sent
8 to us to interview.
9 And I think perception-wise, and in terms
10 of really providing the strongest possible
11 selection process, that we ought to ask that
12 that selection committee move to have a
13 unanimous recommendation as to the ten people
14 that would be interviewed, and then a unanimous
15 recommendation to us with the three to five
16 candidates that they would be bringing forward
17 to us.
18 And so I move that -- make a motion that
19 paragraph 5 and 8 be changed to reflect a
20 unanimous vote on the part of the selection
21 committee vise a majority vote.
22 GOVERNOR CHILES: All right. It's been
23 moved.
24 Is there a second?
25 TREASURER NELSON: Well, I'll just explain
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 why I'm not seconding it.
2 I think that the constitution envisions us
3 sitting as three people. In the collegiality of
4 the three personalities here, I am sure that
5 there is going to be the probability of
6 unanimity. But constitutionally, I don't think
7 that's required. And I would not want to bind
8 us into something that the constitution did not
9 envision.
10 COMPTROLLER MILLIGAN: And I agree with
11 you. But I'm not talking about our vote. I'm
12 talking about the selection committee. And they
13 are not bound by those rules. And I believe
14 very strongly that the right kind of perception,
15 the right kind of strength in the process can be
16 best served if that selection committee
17 unanimously agrees.
18 Now, I realize that that will mean,
19 there'll be some tough discussions, tough arm
20 wrestling.
21 But I think in terms of what will come out
22 at the end of that process, it will be
23 strengthened by a unanimous effort on the part
24 of the selection committee.
25 How we deal with it ourselves as part of
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 the Board -- as the members of the Board, we
2 have to abide by the rules, obviously.
3 So it's the selection committee I'm talking
4 about, not our decision making process.
5 TREASURER NELSON: Well, I -- I would just
6 respond since the whole process, I guess,
7 determines whether or not I second it.
8 As you know, Mr. Comptroller, there's
9 nobody on this Cabinet that I admire any more
10 than you. And despite my personal affection and
11 great professional respect for you, in this
12 particular case, we just have a disagreement on
13 the issue.
14 I think on the symmetry of the argument I
15 just made with regard to the vote among the
16 three of us, that same symmetrical logic, in my
17 mind, would apply to the staff that represent
18 each of the three of us as we -- as they would
19 then convene to make their recommendations to
20 us.
21 GOVERNOR CHILES: I think I would tend to
22 agree and associate myself with the remarks of
23 Commissioner Nelson. I -- my feeling is, if you
24 look back sort of over the history, the last
25 director, who we all give great accolades, who
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 went on to nirvana in the financial districts or
2 whatnot, was not a unanimous selection.
3 And my understanding is his predecessor was
4 not, and I don't know about the one before that.
5 So it seems that there have been times in
6 which you had people that were not unanimously
7 selected. And -- and again, I don't think it
8 would happen with this Cabinet, and this
9 Governor, but I can see a time when, in effect,
10 there is a veto here. And then, so what you're
11 saying is, literally one person almost gets to
12 name who's going to be there, because they just
13 object to everything until they get their
14 person.
15 So, as I say, I know that's not going to
16 happen under this circumstance. But, you know,
17 I feel like the -- the protections are there.
18 And I would certainly hope that, as is most
19 of the cases on this, consensus is arrived at,
20 and I would certainly hope it would be in this
21 process.
22 COMPTROLLER MILLIGAN: Well, I -- I
23 appreciate again your comments and your
24 position, Governor; and, yours,
25 Treasurer Nelson.
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 But I think in terms of the selection
2 committee -- I'm not, again, talking about the
3 Board. I'm talking about the selection
4 committee. -- I believe that it is an
5 appropriate process to go for a unanimous
6 agreement on the ten top candidates. And I
7 don't see that to be a -- a major challenge
8 to --
9 (Secretary Mortham exited the room.)
10 COMPTROLLER MILLIGAN: -- the three people
11 that will be representing us on the -- on that
12 selection committee.
13 But it's clear that that is not the feeling
14 of the members of the Board, so I withdraw my
15 motion.
16 GOVERNOR CHILES: All right. So many as
17 favor the -- the motion as proposed and seconded
18 would signify by saying aye.
19 TREASURER NELSON: Aye.
20 GOVERNOR CHILES: Aye.
21 COMPTROLLER MILLIGAN: Aye.
22 GOVERNOR CHILES: Opposed, no.
23 Then it is passed.
24 MS. JARRIEL: The next item that we have is
25 the request to approve and adopt the 1996 rules
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 for the Florida Hurricane Catastrophe Fund.
2 These have been previously approved by the CAT
3 Fund Advisory Council, and the premium formulas
4 themselves were approved by the Trustees at our
5 last meeting.
6 Request approval to adopt the rules.
7 TREASURER NELSON: I move it.
8 COMPTROLLER MILLIGAN: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, that's approved.
11 TREASURER NELSON: Governor, on that point,
12 let me just ask: Isn't it true that we've got
13 about almost a billion dollars in the CAT Fund
14 right now?
15 MS. JARRIEL: It's actually a little over a
16 billion dollars, it's a billion four.
17 TREASURER NELSON: Very good. And it would
18 bond today -- if we had to call on it, with a
19 billion four in the Fund, and it would bond out
20 an additional five billion.
21 So we have --
22 (Secretary Mortham entered the room.)
23 TREASURER NELSON: -- a catastrophe reserve
24 fund that is getting into some real money now to
25 protect against another monster hurricane, Lord
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 forbid.
2 GOVERNOR CHILES: Don't say that too loud.
3 Bertha's still out there, you know.
4 MS. JARRIEL: Thank you.
5 And the last item that we have is a good
6 cause item that was submitted. In January of
7 this past year, we approved an interest rate
8 waiver for bonds to finance the Santa Rosa Bay
9 Bridge project under Section 215.84,
10 Florida Statutes.
11 At the time that approval was granted,
12 Paine Webber indicated to the Board that those
13 bonds would not be marketed to retail investors,
14 or to individuals, but rather would have minimum
15 denominations of $100,000 for the sophisticated
16 investor.
17 Since that time, there has been a change in
18 the Florida Statutes, as well as a change in
19 marketing conditions. Since the original plan
20 was only to offer these bonds to sophisticated
21 investors, and that was a matter of public
22 disclosure, we felt it was important that the
23 change in that marketing plan also be
24 disclosed.
25 So Paine Webber welcomes the opportunity to
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 present to the Board that change in their
2 marketing plan.
3 (Commissioner Crawford exited the room.)
4 MS. JARRIEL: We would like to point out
5 that this item will not require any formal
6 action by the Board, and the acceptance of
7 Paine Webber's presentation in no way should be
8 construed as an approval of the State Board of
9 Administration of either the bond issue or the
10 finance project.
11 And at this time, I'll turn the podium over
12 to Mr. Richard Wells of Paine Webber.
13 GOVERNOR CHILES: Mr. Wells.
14 MR. WELLS: Good morning, Governor, members
15 of the Board. My name is Richard Wells. I'm
16 with Paine Webber in Orlando.
17 And with me today is Norm Pellegrini,
18 Managing Director and head of our operations in
19 Florida.
20 As I just mentioned, the Santa Rosa Bay
21 Bridge Authority came before you in January and
22 received an interest rate exception. At that
23 time, Paine Webber had made the -- the decision
24 that we would -- we would market the bonds
25 strictly to institutional investors, and in
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 denominations of $100,000.
2 And when we refer to "institutional
3 investors," we're talking about the major bond
4 funds in -- insurance companies, bank trust
5 companies -- the larger institutional buyers of
6 municipal debt.
7 Since January, the Authority has not been
8 able to market the bonds for a number of
9 reasons, and during that time period, has taken
10 advantage of trying to improve the credit. They
11 have done so, and they have received a triple B
12 minus rating from Standard & Poor's.
13 This is an investment grade rating, and is
14 the only -- it's the second rating for a
15 start-up toll facility that Standard & Poor's
16 has issued. So it's a pretty significant feat
17 that they have -- that they have reached there.
18 Fitch has also rated the bonds triple B.
19 So because of that, we believe that these
20 bonds are now suitable for certain retail
21 investors, as well as institutional investors,
22 and we wanted to come before you to propose that
23 we can market you --
24 (Commissioner Crawford entered the room.)
25 MR. WELLS: -- what is called a credited
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 investors as defined by the Florida Code. And
2 if you'd like further information about that,
3 I'd be happy to provide it to you.
4 But at this point, the Authority's interest
5 rate exception expires on July 23rd. They do
6 not need to request an additional interest rate
7 exception because of the rule changes. And we
8 just wanted to present this information to you.
9 If you had any questions, we'd be happy to
10 answer it. But there is a slight amendment to
11 our marketing plan.
12 GOVERNOR CHILES: So, in effect, what
13 you're telling us is with the -- the
14 Standard & Poor's designation of the triple B
15 minus rating, or whatever it is, this is sort of
16 the seal, in effect, Good Housekeeping, they are
17 something with accreditation, that allows less
18 than just pure institutional investors to be
19 able to purchase these.
20 MR. WELLS: We believe so. It is an
21 investment grade quality. But it is one of the
22 lower investment grade qualities that you have.
23 So, therefore, that -- that's why we wanted to
24 make the stipulation that only accredited
25 investors. And accredited investors --
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STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 GOVERNOR CHILES: Explain what credited --
2 MR. WELLS: Accredited investors by the
3 Florida Code is people with a net -- net worth
4 of at least a million dollars; or during the
5 previous two years, $200,000 in income; or a
6 joint account of $300,000.
7 So I think the idea with that is that
8 people in those income categories will have some
9 sophistication about what they're buying. And,
10 of course, we'll be making every disclosure, and
11 making sure everybody knows everything about the
12 risks inherent with a project like this.
13 COMPTROLLER MILLIGAN: Governor --
14 GOVERNOR CHILES: Yes.
15 COMPTROLLER MILLIGAN: -- I, for one,
16 appreciate Paine Webber coming back and telling
17 us their change in strategy. They didn't have
18 to.
19 GOVERNOR CHILES: Uh-hum.
20 COMPTROLLER MILLIGAN: And I think it's
21 good for their process. And I thank them.
22 GOVERNOR CHILES: I think so, too.
23 Thank you very much.
24 MR. WELLS: Thank you.
25
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
July 9, 1996
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1 (The State Board of Administration Agenda
2 was concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 9, 1996
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1 GOVERNOR CHILES: Division of
2 Bond Finance.
3 MR. WATKINS: Item number 1 is approval of
4 the minutes of the June 25th meeting.
5 COMMISSIONER BROGAN: So move.
6 COMPTROLLER MILLIGAN: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, minutes are approved.
9 MR. WATKINS: Item number 2 is a resolution
10 authorizing the expenditure of unspent proceeds
11 from several prior issues for additional
12 renovations of the Knott Building.
13 This item was deferred at the June 25th
14 meeting. And it's my understanding that there
15 are still questions outstanding regarding this
16 item.
17 GOVERNOR CHILES: Are you --
18 COMMISSIONER BROGAN: Governor, there are.
19 And as of close of business yesterday, some
20 questions remained. And I know my office is
21 working with their office to try to resolve
22 those issues. And apparently that seems to be
23 coming together.
24 But we still don't have sign-off on some of
25 the questions that we're waiting answers for at
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DIVISION OF BOND FINANCE
July 9, 1996
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1 this point.
2 So we would like to ask for a deferral,
3 please.
4 GOVERNOR CHILES: There's a motion to
5 defer.
6 Is there a second?
7 COMPTROLLER MILLIGAN: Second.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: Second.
10 Without objection, the item is deferred.
11 SECRETARY MORTHAM: Governor --
12 GOVERNOR CHILES: Yes, ma'am.
13 SECRETARY MORTHAM: -- also on that
14 particular item, it just sort of lends itself.
15 I'd like to request the staff of DMS to
16 provide our offices with the plans for the
17 Capitol Complex -- the renovation plans for the
18 Capitol Complex.
19 GOVERNOR CHILES: Fine. We'll see that
20 they do that.
21 MR. WATKINS: Item number 3 is a resolution
22 recommending the selection of financial advisors
23 for the Division of Bond Finance.
24 The recommendation is being made based on
25 distribution of RFPs and evaluation of those by
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DIVISION OF BOND FINANCE
July 9, 1996
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1 a selection committee, which was established for
2 such purpose, all in accordance with the rules
3 of the Division of Bond Finance governing the
4 selection of service providers.
5 SECRETARY MORTHAM: Move approval.
6 COMMISSIONER BROGAN: Second.
7 COMPTROLLER MILLIGAN: Second.
8 GOVERNOR CHILES: Moved and seconded.
9 Without objection, that's approved.
10 TREASURER NELSON: May I ask a question on
11 that?
12 Tell me, what -- what was that change
13 from? You're going to five. Were -- were these
14 five there before?
15 MR. WATKINS: Actually, we're going to four
16 this time. We -- we provided information for
17 the top five ranking, but we're recommending the
18 top four. We had three under contract before.
19 Those contracts expired in June, which
20 necessitated the distribution of an RFP and the
21 selection of a group of firms from which to
22 choose, which had been approved by -- by
23 the Board.
24 TREASURER NELSON: Did we just approve
25 four?
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 9, 1996
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1 MR. WATKINS: Yes, sir.
2 TREASURER NELSON: Even though there are
3 five listed.
4 MR. WATKINS: That's correct. The top four
5 have been recommended for approval.
6 TREASURER NELSON: All right. Tell me, who
7 were the three that you had before?
8 MR. WATKINS: The three that we had before
9 were Public Financial Management,
10 William R. Hough & Company, and WR Lazard and
11 Company. Those were the three prior financial
12 advisors utilized by the Division.
13 The four being recommended now are
14 Rauscher Pierce, William R. Hough & Company,
15 Raymond James & Associates, and WR Lazard and
16 Company.
17 TREASURER NELSON: So you're dropping
18 Public Financial Management.
19 MR. WATKINS: That's correct.
20 GOVERNOR CHILES: Is there a motion?
21 Well, there -- I think there was a -- no.
22 No, I don't think there is --
23 COMPTROLLER MILLIGAN: I seconded.
24 GOVERNOR CHILES: Motion and seconded.
25 Without objection, it's approved.
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 9, 1996
27
1 MR. WATKINS: Item number 4 is adoption of
2 a resolution authorizing the negotiated sale of
3 9.8 million dollars of Multifamily Housing
4 Revenue Bonds for the Florida Housing Finance
5 Agency.
6 SECRETARY MORTHAM: Move approval.
7 COMMISSIONER BROGAN: Second.
8 GOVERNOR CHILES: Moved and seconded.
9 Without objection, that's approved.
10 MR. WATKINS: Item number 5 is a report of
11 award for bonds issued on behalf of the Florida
12 Housing Finance Agency. There are two
13 transactions. One was -- the sale was
14 negotiated on June 20th. The tax exempt rate
15 was approximately 6.45 percent, and the taxable
16 rate on the second piece was approximately
17 7.75.
18 Item B) was a refinancing of an existing
19 multifamily project. The sale was negotiated on
20 June 25th at an interest rate of approximately
21 6.35 percent.
22 SECRETARY MORTHAM: Move approval.
23 GOVERNOR CHILES: Moved --
24 COMMISSIONER BROGAN: Second.
25 GOVERNOR CHILES: -- and seconded for A)
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
July 9, 1996
28
1 and B).
2 And without objection, that's approved.
3 (The Division of Bond Finance Agenda was
4 concluded.)
5 *
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
29
1 GOVERNOR CHILES:
2 Department of Highway Safety and Motor Vehicles.
3 MR. DICKINSON: Good morning, Governor and
4 Cabinet.
5 First item is approval of minutes for
6 the --
7 COMMISSIONER BROGAN: Move approval.
8 MR. DICKINSON: -- April 9th and April 23rd
9 Cabinet meetings.
10 ATTORNEY GENERAL BUTTERWORTH: Second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, they're approved.
13 MR. DICKINSON: Item 2 is request
14 authority -- or approval for the quarterly
15 report for the period ending March 1996.
16 COMMISSIONER BROGAN: Move approval.
17 ATTORNEY GENERAL BUTTERWORTH: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, it's approved.
20 MR. DICKINSON: Item 3 is pursuant to
21 provisions of 287.059(4), approval by the
22 Attorney General for private counsel on a
23 contingent fee basis to handle our forfeiture
24 litigation. The --
25 COMMISSIONER BROGAN: Move approval.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
30
1 MR. DICKINSON: -- Attorney General handles
2 most of those, but we do have private counsel in
3 a couple of counties.
4 COMMISSIONER BROGAN: I'll move it,
5 Governor.
6 COMMISSIONER CRAWFORD: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, it's approved.
9 Let's go back just a minute to Item 2. And
10 why don't you just touch on some of the
11 highlights of it. Looks like a very good --
12 MR. DICKINSON: Yes, sir. We --
13 GOVERNOR CHILES: -- report you have there.
14 MR. DICKINSON: -- we had a very good
15 quarter.
16 Our traffic fatalities are down a little.
17 We don't get too excited about that till the
18 year-end, because they tend to catch up.
19 We have about a one-year cycle on our
20 traffic fatalities. And some of those folks
21 who, unfortunately, may be on life support, or
22 whatnot, will be credited to the fatality count
23 at the end of the year.
24 And -- by the same token, we had an
25 excellent weekend this past weekend with our
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
31
1 July 4th. It's our longest holiday weekend of
2 the year, and we're about 20 percent under last
3 year on fatalities right now. Now, those are
4 going to escalate.
5 Last year we had 26 reported in the
6 preliminary report, and it ended up in the
7 forties. So we're at 21 right now. And those
8 will escalate a little bit.
9 But we're still down from our preliminary
10 report last year. So that's a positive.
11 In the driver license world, we're trying
12 to service more people, we've opened our hours.
13 We've gone to five-day work weeks in a number of
14 counties; and in nine offices, we're also doing
15 Saturday opening.
16 GOVERNOR CHILES: Are people using the
17 telephone provisions that you have yet? Or do
18 they know about it?
19 MR. DICKINSON: Yes, sir. They're very
20 aware of them. We've changed one of our
21 policies. We've got about a million a year that
22 will come through the -- through the phone
23 renewal system.
24 GOVERNOR CHILES: Uh-hum.
25 MR. DICKINSON: But if you bring your phone
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
32
1 renewal into the office, we're putting you
2 through the process. So we're changing that.
3 And --
4 GOVERNOR CHILES: Are they going to be able
5 to access the Net --
6 MR. DICKINSON: Yes, sir.
7 GOVERNOR CHILES: -- the same way?
8 MR. DICKINSON: Yes, sir.
9 GOVERNOR CHILES: They are.
10 MR. DICKINSON: We've got a home page on
11 the Net.
12 GOVERNOR CHILES: Good.
13 MR. DICKINSON: And we've had a number of
14 inquiries. We're doing education as well as --
15 hopefully -- we've talked to Time Warner, and
16 we're hopefully going to be on their interactive
17 system in Orlando area for driver license
18 renewal and tag renewals.
19 GOVERNOR CHILES: Tell me a little bit
20 about your work force makeup, and your business
21 opportunities. Curious --
22 MR. DICKINSON: Well, we're -- as you can
23 see from our statistics here, we are within our
24 relative labor market for both our new hires and
25 our current hires. We're a little low in the
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
33
1 Hispanic area. But we're making strides there.
2 Minority business, I think we're well on
3 the way to our third year of complying with all
4 the statutory goals and those set by the
5 Governor and Cabinet.
6 GOVERNOR CHILES: (Nodding head.)
7 TREASURER NELSON: Governor --
8 GOVERNOR CHILES: Yes, sir.
9 TREASURER NELSON: -- may I ask a question?
10 I notice, Mr. Secretary, that you've had a
11 10 percent increase in the number of insurance
12 verification cases processed in this quarter, as
13 compared to a year ago.
14 My interpretation of that would mean that
15 that's -- that's a good sign. But please
16 give -- give me your interpretation.
17 MR. DICKINSON: Yes, sir. Because what
18 we're trying to do is get after the folks that
19 are not complying with the law. And it's very
20 difficult, because there's a fine line between
21 actually challenging those who are complying
22 with the law. They really sometimes get upset
23 when they get our notices, as you're aware of
24 the cancellations.
25 So what we're trying to do is working with
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
34
1 the tax collectors and do a little more audit
2 function of the affidavit that is filed at their
3 office.
4 When you go into the tax collector office,
5 and you don't show up on the system, you can
6 file an affidavit, or a binder or something, to
7 get you through the system.
8 And I think what that report reflects is
9 that we're doing more audits on those affidavits
10 to make sure that they are accurate and contain
11 the right information.
12 Our -- our flow of information between the
13 insurance companies is probably better than it's
14 been. As you're well aware, we've got five or
15 six hundred companies that write insurance here
16 in Florida. And probably half a dozen of those
17 write the -- you know, the majority. And we're
18 pretty well on-line with those.
19 But you have some that we are not on-line
20 with. If you're smarter than I think 1500
21 policies, you can do it manual -- file a manual
22 report with us, and those tend to take up the
23 most time.
24 But I would like to also emphasize that our
25 seize tag program, with the private towing
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
35
1 recovery people, is -- is really burgeoning
2 now. We've -- thanks to the Comptroller, we
3 changed our policy and we're providing a little
4 seed money up-front.
5 And the -- the towing and recovery guys are
6 seizing many more tags now than they did when
7 this program first started.
8 We're trying to get a little more publicity
9 on that fact. I think you're -- you will see
10 our insured rate is going up about a percent
11 every couple of months, which is pretty strong.
12 And -- and the insured rate right now is
13 about 75 percent, 76 percent in this state. And
14 that is probably low. All our commercial
15 vehicles are included in that, and I know that
16 they are more heavily insured than the passenger
17 vehicles. We've still got a little problem in a
18 couple of our major metropolitan areas, but
19 that's where we're really targeting this tag
20 seizure program.
21 And once the word gets out, I hear from the
22 agents that their doors are starting to be a
23 little more busy with folks coming in and buying
24 that insurance.
25 TREASURER NELSON: The tag seizures
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
36
1 initially were in a pilot study in Dade,
2 Broward, and Hillsborough.
3 MR. DICKINSON: Yes, sir.
4 TREASURER NELSON: Are we still sticking
5 with those three?
6 MR. DICKINSON: Yes, sir. In fact, I've
7 been in touch with your office just this week
8 about maybe expanding that next year.
9 The first year was not as successful,
10 I think, as we wanted. But I think we've --
11 we've found a little carrot out there to get
12 this thing moving. So I think now we'd like to
13 expand a little bit. And we're working with
14 your staff on that.
15 GOVERNOR CHILES: All right, sir.
16 MR. DICKINSON: All right, sir. Item
17 number 4 is request approval for the Dealer
18 Title Transaction System Pilot Project.
19 This is a consumer oriented program that
20 will allow a -- the public when they go in to
21 buy a car at a dealership, to go ahead and get
22 tagged and titled through the dealer. He has
23 a -- he'll have an on-line capability with the
24 local tax collector. And this should be a real
25 pro for the consumer.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
37
1 It'll also get us more insured vehicles.
2 Right now, if you buy a car at a dealership, you
3 can go away with a paper tag, which does not
4 require insurance. And the insurance
5 requirement would be met with this program. So
6 we'd at least get a little more insured on
7 the -- on the highway.
8 And it'll also cut down the paperwork. It
9 should be a win-win for the State, for the tax
10 collectors.
11 GOVERNOR CHILES: You made a very
12 interesting point there that if you did have the
13 paper tag, you wouldn't have to have your
14 insurance at that time.
15 Would -- will the dealers now -- will they
16 still be able to give the paper tags, and then
17 the people just have an opportunity to say,
18 well, they want to do this, or not?
19 MR. DICKINSON: Yes, sir. It is voluntary.
20 GOVERNOR CHILES: Well, what would it take
21 to get rid of the paper tags, or at least
22 require in the paper tags that they have to have
23 insurance?
24 MR. DICKINSON: We would be glad to change
25 that statute. I think that's a real plus --
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
38
1 GOVERNOR CHILES: It would take a statutory
2 change?
3 MR. DICKINSON: Yes, sir.
4 GOVERNOR CHILES: Well, to me, that's
5 something that you all ought to seek this next
6 time, and we ought to try to support that.
7 I mean --
8 MR. DICKINSON: Be glad to.
9 ATTORNEY GENERAL BUTTERWORTH: Governor,
10 I -- could it not be done by rule, Fred?
11 MR. DICKINSON: I think it's statutory.
12 I'll check on that, and get back to you.
13 ATTORNEY GENERAL BUTTERWORTH: Because the
14 dealers are -- a dealer -- a new car dealer
15 would be crazy to let anybody drive out of his
16 particular dealership with a paper tag, and no
17 insurance. Because I guarantee you --
18 MR. DICKINSON: That's his loss.
19 ATTORNEY GENERAL BUTTERWORTH: -- if
20 anything happens, the dealer's going to be
21 finding -- will be sued.
22 So really, maybe by working with the
23 Dealers Association -- New Car Dealers
24 Association, you'll be able to resolve that
25 without any problem at all.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
39
1 MR. DICKINSON: I believe, Governor, that
2 most of your policies include a rider that would
3 cover you. This one just makes them put the
4 policy -- when they get the real -- the metal
5 tag, they have to include the policy on their
6 application.
7 ATTORNEY GENERAL BUTTERWORTH: Well,
8 anybody who buys a car, as you know, you get
9 30 days to put it on your insurance.
10 MR. DICKINSON: Right.
11 ATTORNEY GENERAL BUTTERWORTH: But at least
12 when you get out, even the paper tag, I thought
13 you had to at least show a -- some type of proof
14 of insurance. So for 30 days, under Florida
15 law, you'll be covered under your existing
16 policy.
17 MR. DICKINSON: Correct.
18 GOVERNOR CHILES: Well, I think it would be
19 good for you to look into and report back to us,
20 or something, whether there is a way by rule or
21 by what we're adopting here today that we can be
22 more assured that there will be that insurance.
23 Because over a -- a few years, then we
24 would have everybody insured as the clunkers
25 wear out, you know. And --
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
40
1 MR. DICKINSON: We'd hope so. And I'll get
2 back to you on that.
3 GOVERNOR CHILES: Yeah. Thank you.
4 SECRETARY MORTHAM: Governor, I move that
5 this project be approved to move forward with
6 the pilot to set the standard for statewide
7 operation, with a requirement that in six months
8 a report will be made to the Governor and
9 Cabinet on the progress of the project, how much
10 revenue has been received by the Tax Collectors
11 Association, and how that money is being used;
12 as well as after the six-month report, that the
13 Governor and Cabinet would receive an annual
14 report.
15 COMMISSIONER BROGAN: Governor, I'll second
16 that.
17 And I'd also like to acknowledge the fact
18 that I know a lot of people have worked very
19 hard on this one. I know in the audience
20 today -- and I can't see out there, but I know
21 we've got some of the State's tax collectors are
22 here. I saw Ray Valdez when I came in the room,
23 and had a --
24 GOVERNOR CHILES: I think we have about 20,
25 and I think it might be a good idea to ask them
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
41
1 to stand up, if they would. We're delighted to
2 have them here.
3 I know that Dennis Hollingsworth of
4 St. Augustine, I think, is now the Chair; and
5 maybe Barbara Ford-Coates of Sarasota County
6 is -- is in line, or going to be chair, or
7 something. I -- we want to recognize her as
8 well.
9 And also just to note that on
10 October the 8th, the Cabinet is going to be
11 honoring Curtis Ezell, who is the longest
12 serving member -- elected official, I believe,
13 in the history of Florida, but certainly the tax
14 collectors.
15 And he is not going to run again this year,
16 so we're going to honor him.
17 ATTORNEY GENERAL BUTTERWORTH: Something
18 like 40 years, Governor?
19 GOVERNOR CHILES: Yeah, I think so.
20 I think so.
21 All right. We've got a --
22 SECRETARY MORTHAM: I've got -- I've got a
23 question.
24 GOVERNOR CHILES: Yes, ma'am.
25 SECRETARY MORTHAM: If, in fact, a dealer
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
42
1 sells new and used cars --
2 MR. DICKINSON: Uh-hum.
3 SECRETARY MORTHAM: -- would this program
4 also then cover the used car portion of the new
5 car dealership?
6 MR. DICKINSON: Yes, ma'am. Any car that
7 is sold through a franchised dealer under this
8 agreement could be titled at the car dealer.
9 SECRETARY MORTHAM: Okay. What about
10 there's a -- a dealership that has new cars on
11 one location, and has used cars on a separate
12 location, would then that dealership be able to
13 do this, or would they not be covered under the
14 used car location?
15 MR. DICKINSON: I think in -- and certainly
16 there are more experts in the audience than I.
17 But I think if they sold -- or applied for a
18 registration or a title through the new car
19 dealer license, that they could use either the
20 new or used car.
21 If they have a separate dealer license, and
22 the other one is an independent license, then
23 this agreement would preclude that. But as I
24 understand it, we're working with the used car
25 dealers right now to talk about inclusion.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
43
1 SECRETARY MORTHAM: Okay. Governor, I'd
2 just like to encourage -- strongly encourage,
3 the Department of Highway Safety and
4 Motor Vehicle to include the used car
5 dealerships. Because it only seems fair to me,
6 that if this is a great consumer service, that
7 it's available.
8 And certainly I think that it should add
9 great efficiencies, that people that buy used
10 cars should have equal access to the program.
11 GOVERNOR CHILES: All right.
12 MR. DICKINSON: Not a problem. We're
13 working towards that goal.
14 GOVERNOR CHILES: All right. We have a
15 motion and a second.
16 As many as favor, signify by saying aye.
17 COMPTROLLER MILLIGAN: Aye.
18 SECRETARY MORTHAM: Aye.
19 ATTORNEY GENERAL BUTTERWORTH: Aye.
20 GOVERNOR CHILES: Opposed, no.
21 Then that's approved.
22 MR. DICKINSON: Governor, if I might take a
23 moment. We were talking partnerships earlier.
24 And you recognized the tax collectors.
25 We've been working with the tax collectors
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
44
1 for many years, as well as other agencies. They
2 also collect fees for Revenue, DEP, Game and
3 Fish, ourselves. I probably left a few out.
4 But while there are so many of them here,
5 I'd just like to tell them, thanks for the
6 partnership of -- with Highway Safety.
7 I know Secretary Mortham was interested in
8 our driver license. And pursuant to some
9 reports that -- between our offices, we're
10 getting ready to strike out on a joint project
11 where they'll be offering driver license
12 services in their shops.
13 Hopefully at no expense to the State, and
14 their expense, we're going to provide some
15 equipment for them, and training, and try to
16 support them the best we can.
17 But -- it's kind of been a long process to
18 get there, but you're finally going to get a
19 one-stop shop for your tags and your
20 driver license --
21 GOVERNOR CHILES: Terrific.
22 MR. DICKINSON: -- in Florida. So we --
23 thanks to the tax collectors.
24 GOVERNOR CHILES: We certainly thank the
25 collectors for this effort in this --
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
45
1 MR. DICKINSON: That concludes --
2 GOVERNOR CHILES: -- cooperation that
3 they've given. And --
4 MR. DICKINSON: Thank you.
5 GOVERNOR CHILES: -- thank you.
6 ATTORNEY GENERAL BUTTERWORTH: Governor, if
7 I can say something.
8 GOVERNOR CHILES: Yes, sir.
9 ATTORNEY GENERAL BUTTERWORTH: I mean, I
10 haven't been in an agency for awhile. I really
11 do want to thank the tax collectors, and also
12 the Department for taking this giant step,
13 because all of you know what effect -- and
14 positive effect this'll have on the consumer in
15 a very, very short period of time.
16 And if all goes as well as we expect it
17 will, because of what you're doing and the
18 Department is doing, we will have that one-stop
19 shopping that Fred is talking about.
20 We can take your car in, I guess, for its
21 30,000 mile checkup and get the
22 driver's license, plus the decal, and a cup of
23 coffee all at one time.
24 COMMISSIONER BROGAN: Plus voters
25 registration card.
ACCURATE STENOTYPE REPORTERS, INC.
DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
July 9, 1996
46
1 ATTORNEY GENERAL BUTTERWORTH: And also
2 voters registration, too, right?
3 GOVERNOR CHILES: Fred's done a hell of a
4 job in cleaning up that agency.
5 ATTORNEY GENERAL BUTTERWORTH: Yeah. Fred
6 has done a great job, Governor. You know, but
7 it took him almost ten years to clean the mess
8 up that I made.
9 MR. DICKINSON: Governor, I was trying to
10 get out of here a little early.
11 We've got item number 5 on the tag. But
12 I think there's a deferral request before us.
13 GOVERNOR CHILES: I think it's going to be
14 deferred. Probably forever. But --
15 We'll defer that one.
16 MR. DICKINSON: Thank you.
17 (The Department of Highway Safety and Motor
18 Vehicles Agenda was concluded.)
19 *
20
21
22
23
24
25
ACCURATE STENOTYPE REPORTERS, INC.
FLORIDA LAND AND WATER ADJUDICATORY COMMISSION
July 9, 1996
47
1 GOVERNOR CHILES: Florida Land and Water
2 Adjudicatory Commission.
3 DR. BRADLEY: Item number 1 is request
4 approval of the minutes of the March 12, 1996,
5 Commission meeting.
6 COMMISSIONER BROGAN: Move approval.
7 SECRETARY MORTHAM: Second.
8 ATTORNEY GENERAL BUTTERWORTH: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, it's approved.
11 DR. BRADLEY: Item number 2 is the proposed
12 final rule establishing the Fiddler's Creek
13 Community Development District.
14 I'd like to request deferral until the next
15 Cabinet meeting. We're still waiting some
16 information, Governor.
17 SECRETARY MORTHAM: Move deferral.
18 COMMISSIONER BROGAN: Second.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, the motion to defer is
21 granted.
22 (The Florida Land and Water Adjudicatory
23 Commission Agenda was concluded.)
24 *
25
ACCURATE STENOTYPE REPORTERS, INC.
MARINE FISHERIES COMMISSION
July 9, 1996
48
1 GOVERNOR CHILES: Marine Fisheries
2 Commission.
3 DR. NELSON: Good morning.
4 On Item A on the agenda, the May 14th
5 minutes.
6 SECRETARY MORTHAM: Move approval.
7 ATTORNEY GENERAL BUTTERWORTH: Second.
8 COMMISSIONER BROGAN: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, it's approved.
11 DR. NELSON: Item B on the agenda is a new
12 closed season -- an alternative closed season
13 being applied to northeast Florida for spotted
14 sea trout.
15 COMMISSIONER BROGAN: Move approval.
16 ATTORNEY GENERAL BUTTERWORTH: Second.
17 GOVERNOR CHILES: Moved and seconded.
18 Without objection, it's approved.
19 DR. NELSON: And then Item C would be our
20 inaugural jellyfish management plan.
21 ATTORNEY GENERAL BUTTERWORTH: Motion.
22 SECRETARY MORTHAM: Move approval.
23 COMMISSIONER CRAWFORD: Second.
24 COMMISSIONER BROGAN: Governor, with a --
25 with a -- just a --
ACCURATE STENOTYPE REPORTERS, INC.
MARINE FISHERIES COMMISSION
July 9, 1996
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1 GOVERNOR CHILES: Moved and seconded.
2 COMMISSIONER BROGAN: -- question, slash,
3 comment, I suppose.
4 As we've talked about the jellyfish
5 initiative -- which, by the way, I applaud,
6 I think we all do, find something new that's
7 marketable.
8 One of the thoughts that continues to stick
9 with me is the potential impact, whether there
10 will be or won't be is I guess to be determined
11 at a later date.
12 But any time -- I guess I'm of a mind that
13 any time you start to impact any additional part
14 of the system, especially if it becomes a highly
15 marketable and highly profitable item, that
16 there is always the potential that that harvest,
17 as legal as it may be -- and I'm obviously
18 preaching to the choir, who wouldn't know that
19 better -- might have a potential impact
20 somewhere else in the system.
21 What process or what system are you looking
22 at to monitor that longitudinal study, something
23 that will ultimately determine three years out,
24 five years out, what sort of an impact the
25 harvesting of jellyfish have on -- either the
ACCURATE STENOTYPE REPORTERS, INC.
MARINE FISHERIES COMMISSION
July 9, 1996
50
1 jellyfish population, or other parts of the
2 ecosystem that might be impacted?
3 DR. NELSON: Well, Commissioner, I think
4 your caution is well taken. We don't really
5 have any experience in this country, or very --
6 any documented experience anywhere in the world,
7 on jellyfish harvesting, per se.
8 When you look at the -- at the life history
9 characteristics of the animal, there are reasons
10 to believe that they should prove to be fairly
11 resilient, jellyfish to harvest.
12 They have -- they reproduce both sexually,
13 through gametes eggs; and then they have a polyp
14 stage, which is a sessile bottom dwelling polyp
15 stage, which lasts for a good bit of time in
16 their lives. And that polyp stage can, in fact,
17 reproduce asexually, simply by splitting.
18 So they have -- and the final product that
19 is being harvested are jellyfish at the very end
20 of their life cycle, who have already
21 reproduced.
22 So we think there's some reason -- I mean,
23 that's one of the reasons the Commission felt
24 comfortable not going initially with a quota, or
25 some other type of constraint.
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1 We are going to monitor the fishery, we'll
2 be looking annually, for the first couple of
3 years, at reviewing the status, looking at catch
4 per effort. And -- and trying to get -- at
5 least get that characterized in terms of the
6 impact on jellyfish.
7 We hope to continue to have occasionally
8 observer trips where we can look again. We've
9 had observers out there. We have a pretty good
10 idea how the fishery's functioning. But, again,
11 to see if there are any direct or indirect
12 problems regarding bycatch.
13 In terms of the ecosystem impacts, that's a
14 difficult question, frankly. These jellyfish
15 are largely being harvested shortly before they
16 die. That doesn't mean that they're lost to the
17 ecosystem. They do die, and they accumulate on
18 the shores, they break down. I'm sure there are
19 many organisms and other things out there that
20 take advantage of that.
21 And I -- I don't have a satisfactory answer
22 for you. It's one of those things that we
23 don't. I hope that maybe the advent of this
24 fishery will stimulate --
25 GOVERNOR CHILES: We don't really know if
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1 we kill too many mosquitos what it will affect
2 either, do we? I mean --
3 DR. NELSON: No, we don't, Governor.
4 GOVERNOR CHILES: That's what I thought.
5 COMMISSIONER BROGAN: No. I just know
6 when -- when you look at a marketable product
7 that at one time was considered to be trash, if
8 you will -- and I think specifically of the
9 shark population. Down on the east coast, we
10 faced that.
11 The shark population for years was
12 considered to be an annoyance and a trash fish,
13 and basically no one could find much good to say
14 about the shark population until it suddenly
15 became a marketable product, not only
16 nationally, but internationally.
17 And suddenly, my understanding is the shark
18 population has been reduced by some 25 percent
19 down on the east coast, and is starting to show
20 signs on the rest of the system.
21 And I just always think that it's a -- it's
22 a good idea, and you've said it, that we be
23 cognizant of that, and we monitor those kinds of
24 things early on to make certain that we don't
25 begin the monitoring process when somebody
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1 finally notes the fact that it may be having an
2 impact.
3 And just to consider something that was at
4 one time an annoyance or a trash fish, that does
5 take on a marketable impact, I think, and think
6 that it doesn't have an impact on any rest of
7 the system, or itself, I think is a mistake.
8 And I'm convinced if Americans can find a
9 way to market mosquitos, Governor, we'll no
10 doubt be in that business someday, too.
11 So I appreciate it. Thank you.
12 GOVERNOR CHILES: Lord willing.
13 DR. NELSON: Thank you.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, that's approved.
16 (The Marine Fisheries Commission Agenda was
17 concluded.)
18 *
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1 GOVERNOR CHILES: Board of Trustees.
2 MS. WETHERELL: Item 1, minutes.
3 ATTORNEY GENERAL BUTTERWORTH: Motion.
4 COMMISSIONER BROGAN: Move approval.
5 COMMISSIONER CRAWFORD: Second.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, minutes are approved.
8 MS. WETHERELL: Item 2, two option
9 agreements for the Longleaf Pine CARL project.
10 SECRETARY MORTHAM: Move approval.
11 COMMISSIONER CRAWFORD: Second.
12 GOVERNOR CHILES: Moved and seconded.
13 Without objection, it's approved.
14 MS. WETHERELL: Item 3, three option
15 agreements Wekiva-Ocala CARL project.
16 SECRETARY MORTHAM: Move approval.
17 COMMISSIONER CRAWFORD: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, they're approved.
20 MS. WETHERELL: Item 4, an option agreement
21 for the Florida Springs Coastal Greenway
22 project.
23 COMMISSIONER BROGAN: Move approval.
24 COMPTROLLER MILLIGAN: Second it.
25 GOVERNOR CHILES: Moved and seconded.
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1 Without objection, that's approved.
2 MS. WETHERELL: Item 5, a purchase
3 agreement for FSU.
4 SECRETARY MORTHAM: Move approval.
5 ATTORNEY GENERAL BUTTERWORTH: Second.
6 COMMISSIONER BROGAN: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, it's approved.
9 MS. WETHERELL: Substitute item 6, an
10 amendment to a previously approved purchase
11 agreement.
12 SECRETARY MORTHAM: Move approval.
13 COMMISSIONER BROGAN: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, it's approved.
16 MS. WETHERELL: Item 7, two option
17 agreements for Archie CARL -- Archie Carr CARL
18 project.
19 Trustees, we have this morning I think
20 reached an agreement with the County, so I would
21 recommend that we approve this item with three
22 further conditions.
23 One condition is that we would issue the
24 County a 50-year lease on the property; the
25 second is that we would provide the County with
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1 an option to renew this lease subject to the
2 Board of Trustees approval for an additional
3 50 years.
4 And the third is an amendment of the option
5 agreement language. And I think that has been
6 distributed to you. It's on page 2, an
7 amendment that I think the bottom line is that
8 the County feels that they have the assurance
9 that they need to manage that property, and the
10 Board of Trustees would retain their ownership
11 interest. So I think it was a good compromise.
12 SECRETARY MORTHAM: Move approval.
13 COMMISSIONER BROGAN: Second.
14 ATTORNEY GENERAL BUTTERWORTH: Second.
15 GOVERNOR CHILES: Moved and seconded
16 subject to the amendment, and it sounds like a
17 good compromise.
18 So without objection, that's approved.
19 MS. WETHERELL: Thank you.
20 Item 8 is a release of restriction and
21 reverter provisions.
22 COMMISSIONER CRAWFORD: Motion.
23 SECRETARY MORTHAM: Second.
24 GOVERNOR CHILES: Moved and seconded.
25 Without objection, it's approved.
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1 MS. WETHERELL: Substitute item 9 is an
2 aquaculture lease. And the County, who has been
3 in opposition to this lease -- I would like to
4 call on Christopher Benjamin from the County,
5 from St. Johns County at this time.
6 And this morning, I think we have reached
7 an agreement with the County and the applicant.
8 But he will explain that.
9 GOVERNOR CHILES: All right.
10 MR. BENJAMIN: Thank you,
11 Secretary Wetherell and Cabinet. I'm glad to
12 see y'all again. It's nice to be here. And
13 thanks for all your activities in support of
14 St. Johns County. We really appreciate it.
15 This item, aquaculture lease, 55-AQ-338,
16 has been the subject of some controversy in
17 St. Johns County for a period approaching close
18 to two years now.
19 And we have reached a compromise agreement
20 with the applicant, Larry Crosby, who is here
21 with me today. And that basic agreement is --
22 if you will approve this -- is that the initial
23 lease be limited to a term of six years, and
24 upon which time if Mr. Crosby wishes to initiate
25 a renewal or a transfer of a lease, that it will
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1 be brought back to the Cabinet, and that the
2 St. Johns County local jurisdiction will have an
3 appropriate amount of comment and
4 recommendation, but not an outright veto power,
5 just the comment and recommendation, which will
6 be weighed by the Department in their
7 deliberations.
8 That's basically the agreement we have come
9 to. And Mr. Crosby is in agreement with that.
10 GOVERNOR CHILES: Mr. Crosby, you in
11 agreement to that?
12 MR. CROSBY: Yes, sir, I am.
13 SECRETARY MORTHAM: Move approval.
14 COMMISSIONER BROGAN: Second.
15 GOVERNOR CHILES: It's been moved and
16 seconded.
17 Without objection, that's approved.
18 MR. CROSBY: Thank you.
19 GOVERNOR CHILES: Yes, sir.
20 MS. WETHERELL: Item 10 is a settlement
21 agreement and a quitclaim deed.
22 SECRETARY MORTHAM: Move approval.
23 COMMISSIONER BROGAN: Second.
24 GOVERNOR CHILES: Moved and seconded.
25 Without objection, it's approved.
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1 MS. WETHERELL: Item 11 is modification of
2 a sovereignty submerged land lease.
3 SECRETARY MORTHAM: Move approval.
4 COMMISSIONER BROGAN: Second.
5 GOVERNOR CHILES: Moved and seconded.
6 Without objection, that's approved.
7 MS. WETHERELL: Okay. Thank you.
8 SECRETARY MORTHAM: Governor --
9 GOVERNOR CHILES: Yes, ma'am.
10 SECRETARY MORTHAM: -- I'd like to
11 complement Secretary Wetherell on the great
12 compromises that she made this morning.
13 GOVERNOR CHILES: It was very nice.
14 SECRETARY MORTHAM: Very nice.
15 GOVERNOR CHILES: Probably saved an hour.
16 (The Board of Trustees of the Internal
17 Improvement Trust Fund Agenda was concluded.)
18 *
19 (The Cabinet meeting was concluded at
20 11:08 a.m.)
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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 60 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 18TH day of JULY, 1996.
17
18
19 LAURIE L. GILBERT, RPR, CCR
100 Salem Court
20 Tallahassee, Florida 32301
(904) 878-2221
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