Cabinet
Affairs |
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
VOTE ON PAY RAISE FOR EXECUTIVE DIRECTORS
6 STATE BOARD OF ADMINISTRATION
DIVISION OF BOND FINANCE
7 STATE BOARD OF EDUCATION
ADMINISTRATION COMMISSION
8 MARINE FISHERIES COMMISSION
TRUSTEES OF THE INTERNAL
9 IMPROVEMENT TRUST FUND
10
The above agencies came to be heard before
11 THE FLORIDA CABINET, Honorable Governor Chiles
presiding, in the Cabinet Meeting Room, LL-03,
12 The Capitol, Tallahassee, Florida, on Tuesday,
April 15, 1997, commencing at approximately 9:44 a.m.
13
14
15
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
20
21
22 ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
23 TALLAHASSEE, FLORIDA 32301
904/878-2221
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 BILL NELSON
Treasurer
10
FRANK T. BROGAN
11 Commissioner of Education
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ACCURATE STENOTYPE REPORTERS, INC.
April 15, 1997
3
1 I N D E X
2 ITEM ACTION PAGE
3 VOTE ON PAY RAISES
FOR EXECUTIVE DIRECTORS
4
Approved 5
5
STATE BOARD OF ADMINISTRATION:
6 (Presented by Tom Herndon,
Executive Director)
7
1 Approved 6
8 2 Approved 6
3 Approved 7
9 4 Approved 7
5 Approved 7
10 6(A) Approved 14
6(B) Approved 14
11 6(C) Report 14
12 DIVISION OF BOND FINANCE:
(Presented by J. Ben Watkins, III,
13 Director)
14 1 Approved 25
2 Approved 25
15 3 Approved 26
4 Approved 26
16
STATE BOARD OF EDUCATION:
17 (Presented by Robert L. Bedford, Ph.D.,
Deputy Commissioner)
18
1 Approved 28
19 2 Approved 30
3 Approved 32
20 4 Approved 60
5 Approved 60
21 6 Approved 60
7 Approved 60
22 8 Approved 61
23
24
25
ACCURATE STENOTYPE REPORTERS, INC.
April 15, 1997
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1 I N D E X
(Continued)
2
ITEM ACTION PAGE
3
ADMINISTRATION COMMISSION:
4 (Presented by Robert B. Bradley, Ph.D.,
Secretary)
5
1 Approved 62
6 2 Approved 62
3 Approved 63
7 4 Approved 63
5A, 5B Approved 63
8 6 Approved 64
9 MARINE FISHERIES COMMISSION:
(Presented by Charles L. Shelfer,
10 General Counsel)
11 A Approved 65
12 BOARD OF TRUSTEES,
INTERNAL IMPROVEMENT
13 TRUST FUND:
(Presented by Virginia B. Wetherell,
14 Secretary)
15 1 Approved 66
2 Approved 66
16 3 Approved 67
4 Approved 67
17 5 Approved 67
6 Approved 67
18 7 Approved 68
Substitute 8 Approved 68
19 Substitute 9 Deferred 68
10 Deferred 70
20 Substitute 11 Deferred 74
21 CERTIFICATE OF REPORTER 78
22 *
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25
ACCURATE STENOTYPE REPORTERS, INC.
VOTE ON PAY RAISES FOR EXECUTIVE DIRECTORS
April 15, 1997
5
1 P R O C E E D I N G S
2 (The agenda items commenced at 10:17 a.m.)
3 GOVERNOR CHILES: We -- I need a motion on
4 a 3 percent pay raise for Executive Directors of
5 Department of Revenue, Highway --
6 Department of Highway -- Florida Department of
7 Law Enforcement, Highway Safety and Motor
8 Vehicles, and Veterans' Affairs.
9 COMPTROLLER MILLIGAN: I -- I'll make that
10 motion, Governor, and move a 3 percent pay
11 raise. And I think it'd be appropriate to make
12 it retroactive to --
13 GOVERNOR CHILES: January 1?
14 COMPTROLLER MILLIGAN: -- the 1st of the
15 year.
16 COMMISSIONER CRAWFORD: I second that
17 motion.
18 GOVERNOR CHILES: Been moved and seconded.
19 Is there discussion?
20 Without objection, it's adopted.
21 Our next Cabinet meeting will be
22 April 29th.
23 (The Vote on Pay Raises for the Executive
24 Directors was concluded.)
25 *
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
April 15, 1997
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1 GOVERNOR CHILES: State Board of
2 Administration.
3 MR. HERNDON: Good morning, Governor,
4 members of the State Board.
5 The first item is approval of the minutes
6 of the meeting held on March 25th, 1997.
7 (Commissioner Crawford exited the room.)
8 TREASURER NELSON: I move it.
9 COMPTROLLER MILLIGAN: And second.
10 GOVERNOR CHILES: Moved and seconded.
11 Without objection, it's approved.
12 MR. HERNDON: Item number 2 is approval of
13 the fiscal sufficiency of not exceeding
14 nine million seven hundred and eighty thousand
15 dollars, State of Florida, Board of Regents,
16 University of Central Florida bonds.
17 TREASURER NELSON: Move it.
18 COMPTROLLER MILLIGAN: Second.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, it's approved.
21 MR. HERNDON: Item number 3 is approval of
22 fiscal sufficiency for seven million seven
23 hundred and eighty thousand dollar, Board of
24 Regents Florida A&M -- Mechanical University
25 student services bonds.
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1 TREASURER NELSON: Move it.
2 COMPTROLLER MILLIGAN: And second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, that's approved.
5 MR. HERNDON: Item number 4, approval of
6 fiscal sufficiency for three million six hundred
7 and five thousand dollars, Florida A&M
8 University parking facility bonds.
9 TREASURER NELSON: Move it.
10 COMPTROLLER MILLIGAN: And second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, that's approved.
13 MR. HERNDON: Item number 5 is the
14 submittal of Florida State Board of
15 Administration calendar year 1996 performance
16 summary, FRS Investment Services report.
17 TREASURER NELSON: Move it.
18 COMPTROLLER MILLIGAN: And second. And
19 another good year.
20 MR. HERNDON: It was a good --
21 GOVERNOR CHILES: Moved and --
22 MR. HERNDON: -- year, Governor. And --
23 GOVERNOR CHILES: -- seconded.
24 That's approved.
25 MR. HERNDON: -- acknowledge the fine work
ACCURATE STENOTYPE REPORTERS, INC.
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1 that my predecessor, Ash Williams, and
2 Barbara Jarriel, did to get us through 1996 in
3 such fine fashion.
4 Item number 6 --
5 GOVERNOR CHILES: Market's kind of gone to
6 hell now though.
7 MR. HERNDON: Well, the market has suffered
8 through a correction here these last
9 several months. But maybe today will be a
10 better day, Governor.
11 COMMISSIONER BROGAN: We don't hold that
12 against you.
13 MR. HERNDON: I understand. Thank you.
14 Item number 6, the Florida Hurricane
15 Catastrophe Fund.
16 (Commissioner Crawford entered the room.)
17 MR. HERNDON: Mr. Nicholson is here.
18 Item (A) is approving the premium formula for
19 the rates for reimbursement premiums.
20 TREASURER NELSON: Governor, before I move
21 it -- and I don't have any objection to these --
22 I've -- I've got a couple of questions I want to
23 ask, if I may.
24 GOVERNOR CHILES: All right.
25 TREASURER NELSON: This -- this is the
ACCURATE STENOTYPE REPORTERS, INC.
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April 15, 1997
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1 Hurricane Catastrophe Fund.
2 GOVERNOR CHILES: Yeah.
3 TREASURER NELSON: Did you want to share
4 something with us before --
5 DR. NICHOLSON: No, sir.
6 TREASURER NELSON: -- I ask the question,
7 or did you just want to respond?
8 DR. NICHOLSON: I'm just here to respond.
9 TREASURER NELSON: Tell me in the -- we've
10 gone through in looking at all of your
11 calculations here. And I'm curious, does the
12 Catastrophe Fund, does it give any building code
13 effectiveness grading schedule credits?
14 You know what I'm talking about.
15 DR. NICHOLSON: Yes.
16 TREASURER NELSON: The effectiveness of a
17 local jurisdiction with regard to the
18 enforcement of their building code is written
19 into the statutes that insurance companies have
20 to lower the premium if the -- if the homeowner
21 lives in a jurisdiction where they're enforcing
22 the building code.
23 The idea of the law that we got passed
24 was -- was to give the incentive to the
25 homeowner to chew on their city council to get
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1 them to enforce the building code.
2 DR. NICHOLSON: Right.
3 TREASURER NELSON: Does the
4 Catastrophe Fund do that?
5 DR. NICHOLSON: Currently this year we're
6 not considering credits for the building codes.
7 That will be something we'll consider in the
8 future.
9 That program is relatively new, and it
10 would be premature at this point to give
11 credits. I think that -- my understanding is
12 that it would only apply to new construction
13 this year.
14 And as the program is further developed,
15 and we get more data, it would be appropriate at
16 that point to consider it. Whether that'd --
17 TREASURER NELSON: Well, it --
18 DR. NICHOLSON: -- be something we'd look
19 at.
20 TREASURER NELSON: It is implemented in all
21 the jurisdictions in Florida, and it does apply
22 to new construction. Or it applies to old
23 construction that is reinspected. And it's
24 going to be a break for the consumer.
25 And so I would encourage you to look at
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1 implementing that as soon as possible.
2 DR. NICHOLSON: We certainly will.
3 TREASURER NELSON: All right. Now, let me
4 ask you: Does the Catastrophe Fund give any
5 credits for mobile homes that are constructed
6 according to the new Federal standards for
7 mobile homes?
8 DR. NICHOLSON: No. Our credits for
9 mobile homes happen to do with tie-downs.
10 That's another thing we will continue to look
11 at.
12 But the problem is one of data, having the
13 data to justify those credits and discounts.
14 And as that data is developed, and it becomes
15 credible, those are things that we will be
16 looking at in the future for -- for discounts
17 and credits.
18 This year, we give a mitigation discount,
19 and it basically applies to shutter type
20 discounts. And that is in here for, like,
21 10 percent -- a 10 percent credit.
22 TREASURER NELSON: That's correct.
23 And the fact that you are a Catastrophe
24 Fund that deals in hurricane risk, I commend you
25 for giving a 10 percent credit with regard to
ACCURATE STENOTYPE REPORTERS, INC.
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April 15, 1997
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1 shutters and other protective devices.
2 But by the same reasoning, the same logic,
3 you would want to give that same kind of credit
4 for a mobile home that is built according to the
5 new federal standards which are much more
6 stringent, and, therefore, the mobile home is
7 much more wind resistant to a hurricane.
8 So that's something I'd like you to look
9 at.
10 DR. NICHOLSON: Right. We'll do that.
11 That -- all these things regarding discounts and
12 credits, as the data becomes available, and as
13 we get more knowledge, we try to update the
14 rates according to that.
15 And that's why we moved to shutters or
16 mitigation discounts this year. That will be
17 something we'll look at very strongly next year,
18 and try to get as much information as we can to
19 be able to do that.
20 TREASURER NELSON: Well, I'd like you to
21 see if since those standards were implemented,
22 I think, a year, year-and-a-half ago, if you've
23 got any applicability to implementing those this
24 year.
25 The other one I wanted to ask you about was
ACCURATE STENOTYPE REPORTERS, INC.
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1 sprinklers. Sprinklers, of course, if they are
2 installed, you get credits, particularly with
3 regard to fire. You're not concerned about
4 fire, but sometimes wind blows, and creates
5 fires. And sprinklers would put out those
6 fires.
7 DR. NICHOLSON: Well, we can take a look at
8 that. I have discussed that with our Advisory
9 Council -- Advisory Council actuary.
10 And I think the opinion there was that
11 that -- again, we would need the data to be able
12 to justify that. That becomes a very nebulous
13 area in terms of giving the discounts for that
14 sort of thing with regard to sprinklers.
15 But, again, these are things that we will
16 continue to look at. We want to certainly
17 upgrade our rating to those factors as they
18 become appropriate.
19 TREASURER NELSON: You might want to talk
20 to our Fire Marshall's Office there with regard
21 to the sprinklers. They've got some pretty good
22 data there.
23 All right. Thank you, Governor.
24 GOVERNOR CHILES: Thank you, sir.
25 TREASURER NELSON: And I'd move the item.
ACCURATE STENOTYPE REPORTERS, INC.
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1 GOVERNOR CHILES: It's been moved.
2 COMPTROLLER MILLIGAN: This is 6(A) only
3 we're talking about?
4 TREASURER NELSON: 6(A).
5 MR. HERNDON: That's all I had referenced
6 initially was 6(A).
7 COMPTROLLER MILLIGAN: Yes. And I second
8 it.
9 GOVERNOR CHILES: Is there a second?
10 TREASURER NELSON: All right. Yeah. He
11 seconded, I moved --
12 GOVERNOR CHILES: It's moved and seconded.
13 Without objection, 6(A) is adopted.
14 MR. HERNDON: The second item in that
15 category was Item 6(B), which is approval of the
16 filing of four rules for notice.
17 TREASURER NELSON: And I move it.
18 COMPTROLLER MILLIGAN: And second it.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, that's approved.
21 MR. HERNDON: And the final item, 6(C), was
22 request by the Cat Fund to give a brief update
23 on the Florida Hurricane Catastrophe Fund's
24 bonding activities and so forth.
25 DR. NICHOLSON: There's a couple of items I
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION
April 15, 1997
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1 want to report on. Last time I was here --
2 GOVERNOR CHILES: Do we have a motion on
3 the last one? Or you're discussing the Fund.
4 TREASURER NELSON: Do we need one?
5 MR. HERNDON: Probably not. Strictly --
6 GOVERNOR CHILES: Okay. Go ahead.
7 DR. NICHOLSON: Okay. The last time I was
8 here, I was discussing with you the process that
9 we were going through in terms of bonding. One
10 of the things that we had done since then was we
11 took a trip to New York to talk to the rating
12 agencies, and we have some preliminary
13 indications from them that our bond rating would
14 be in the range, for example, with Moody's from
15 A1 to a AA3, for S&P has given us an A Plus
16 range; Fitch, A Plus range.
17 In each situation, all the rating agencies
18 came to the same conclusions regarding our
19 credit, that it was a strong credit, they found
20 no weakness in our program.
21 Next item is validation. The Florida
22 Supreme Court is now considering -- our case has
23 been appealed to the Supreme Court. They have
24 not requested oral argument -- or not asked for
25 oral argument at this time. We expect something
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1 will be forthcoming from them imminently.
2 Also, our bond legal counsel is preparing
3 documentation requests for a private letter
4 ruling from the Internal Revenue Service to see
5 if we can issue tax exempt debt. Even though
6 we're a tax exempt organization regarding
7 revenues, that does not imply that we could also
8 issue tax exempt debt.
9 The next thing we're looking at and
10 studying very carefully is the possibility of
11 pre-event bond issuance. We feel like it's
12 our -- it is our responsibility to maximize the
13 capacity of the fund, as well as to efficiently
14 control the operating costs.
15 So what we're doing is looking at the
16 feasibility of the issuance of up to -- of
17 five hundred million dollars of bonds.
18 The problem that we have is a good one in
19 some respects, in that last year we had six
20 point four billion dollars of capacity. This
21 year we're looking in the range of seven to
22 seven point five billion dollars of capacity,
23 roughly two billion of that being cash; the
24 other five, five point five billion being
25 bonding capacity.
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1 Insurance companies are relying heavily on
2 these estimates and these numbers. We feel like
3 that we need to be proactive in our involvement
4 there to do whatever we can to maximize our
5 capacity.
6 We don't know for sure what the conditions
7 of the financial markets are going to be at the
8 time of loss. And that may -- depending on the
9 size of the loss and the timing of the loss, it
10 could have very adverse psychological impacts
11 upon investors and how they view us as a credit
12 risk.
13 We feel like we are a strong credit risk,
14 and that we can withstand adverse circumstances
15 related to a hurricane.
16 What we plan to do -- we don't have a
17 recommendation for you today. What we plan to
18 do is go to our Advisory Council on May 8th and
19 discuss with them more details in terms of this
20 recommendation.
21 Our timetable would then be to -- following
22 the Supreme Court's validation, would be then to
23 do investor education programs, or road shows,
24 starting in May or June; and then the issuance
25 would follow that.
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1 A couple of benefits I just want to put in
2 your mind of why we would want to do this is
3 I think it's -- at the -- it may be the most --
4 the worst time to go to the market when we have
5 an event. And we certainly do not want to be a
6 first time issuer at that point.
7 That would entail a large risk premium from
8 the investment community, and make it difficult
9 on our part, and very expensive on our part if
10 we had to pay a high-risk premium, if somehow
11 they connected the event to our ability to repay
12 the debt.
13 We feel like that it would also help
14 establish a benchmark for our pricing if we
15 go ahead with this in this season. It would
16 also create a secondary market for trading in
17 the securities and help with our investor
18 education program. They would somewhat be on
19 the edge of their seats if they're -- if they
20 know that we're out with a real issue, instead
21 of a contingent or hypothetical type issue.
22 These, of course, are similar activities to
23 what the RPCJUA, and the Florida Windstorm
24 Underwriting Association are going through. And
25 for very similar reasons, we would just like to
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1 look at this and evaluate it, and come back to
2 you with a recommendation probably around the --
3 I guess the meeting -- mid May meeting, 14th
4 meeting.
5 TREASURER NELSON: Governor --
6 GOVERNOR CHILES: All right. Yes.
7 TREASURER NELSON: -- I just want to make
8 note that this is an extraordinarily successful
9 program.
10 The testimony you just heard is that in the
11 event of another Hurricane Andrew, which had
12 ten billion dollars in insured losses,
13 residential losses, what Jack has just told us
14 is that the industry would be reimbursed
15 75 percent of their residential losses by virtue
16 of what they have in the Cat Fund for this
17 hurricane season and the bonding capacity.
18 Seven-and-a-half billion dollars.
19 And in spite of the State of Florida doing
20 all of that, making the market more attractive,
21 this morning, the industry killed the Fair Share
22 Bill in the Senate Insurance Committee on a vote
23 of 6 in favor, and 7 against, which would have
24 been Ron Silver's bill to have the industry come
25 forth with a supply of home owners insurance, of
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1 which there is a lack of supply in south
2 Florida, according to their fair share as
3 measured by what those insurance companies have
4 as a share of the property and casualty market.
5 Oh, they're loving it, writing all of that
6 lucrative automobile insurance; and they're
7 loving it, writing all that lucrative
8 workers' comp insurance.
9 But they don't want to step up and do their
10 fair share of homeowners insurance, particularly
11 in south Florida where we need it, despite the
12 fact that we have this extraordinarily
13 successful protection of a catastrophic reserve
14 fund to cushion any blow of a future
15 Hurricane Andrew. So much so that Jack just
16 told us, the industry would be reimbursed
17 75 percent of their losses in this hurricane
18 year.
19 GOVERNOR CHILES: Would there be a public
20 record of that vote in case the insurance policy
21 seekers wanted to know?
22 TREASURER NELSON: Yes, sir. That is on
23 the record, who are the seven that voted against
24 it.
25 Interestingly, all of the south Florida
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1 legislators voted for it, because they know what
2 their constituents are telling them.
3 GOVERNOR CHILES: Well, you know, this
4 couldn't just be south Florida. If we had
5 another blow, as I recall, the companies didn't
6 want to write anywhere in Florida, they were
7 pulling out all over. It wasn't just south
8 Florida.
9 TREASURER NELSON: Can you imagine what a
10 hurricane would do of a magnitude of Andrew if
11 it --
12 GOVERNOR CHILES: I recall --
13 TREASURER NELSON: -- came on to
14 Tampa Bay?
15 GOVERNOR CHILES: -- that we had Opal and
16 Erin that didn't hit south Florida.
17 TREASURER NELSON: That's correct.
18 GOVERNOR CHILES: Here in the panhandle.
19 TREASURER NELSON: That's exactly correct.
20 GOVERNOR CHILES: -- across the -- central
21 Florida.
22 TREASURER NELSON: That's exactly right,
23 Governor. It saddens me.
24 They've just -- despite the fact that the
25 State of Florida has provided these kind of
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1 things to make Florida more attractive to sell
2 homeowners insurance, they still drag their
3 feet.
4 All of the 13 things they asked the
5 Legislature to do, the Legislature has done, and
6 they're still refusing to do their fair share.
7 And they killed the legislation today.
8 COMPTROLLER MILLIGAN: Governor, could I --
9 GOVERNOR CHILES: Yes, sir.
10 COMPTROLLER MILLIGAN: -- get back to the
11 point at hand here on the --
12 GOVERNOR CHILES: Yes, sir.
13 COMPTROLLER MILLIGAN: -- pre-event basis.
14 I didn't hear any downside to your
15 discussion on the pre-event.
16 Are there any downside aspects of it?
17 DR. NICHOLSON: We're studying that --
18 COMPTROLLER MILLIGAN: And I realize you're
19 just beginning to look at it.
20 DR. NICHOLSON: We're studying that. I'll
21 give you some preliminary numbers. I mean, it
22 is going to have a cost to this. And the cost
23 would be about four to five million dollars that
24 would be paid out of the bond proceeds for
25 issuance costs. That's up-front issuance
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1 costs.
2 And then there would be a cost of servicing
3 the debt. We would have the money -- investing
4 the money, but at the same time we have to
5 service the debt. That would be -- that's a
6 situation of what's called negative arbitrage,
7 the --
8 COMPTROLLER MILLIGAN: Right.
9 DR. NICHOLSON: -- carrying cost. That
10 would be approximately around the three million
11 dollar range. So what we're talking about, an
12 ongoing basis would be three million dollar cost
13 to the Fund.
14 And I think it's more of a -- it's kind of
15 an insurance policy, if you will. We would
16 incur those costs at the potential future
17 benefits of reducing a lot of the risk premium
18 if we had to issue post-event in the future for
19 a five billion dollar issue.
20 COMPTROLLER MILLIGAN: Any risk in our
21 standing with the IRS?
22 DR. NICHOLSON: No, sir. We will -- we
23 will -- we're working closely with our bond
24 legal counsel in doing this. And the -- the --
25 Brown & Wood, our legal counsel that got
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1 our original tax exempt status, we're working
2 very closely with them, because they're the same
3 one seeking the opinion on the tax -- the
4 ability issue, tax exempt debt.
5 So there has been no issue to come up
6 with -- in that regard.
7 COMPTROLLER MILLIGAN: Well, I applaud what
8 you're trying to do is strengthen really the
9 program. But I think we have to watch it very
10 carefully and make sure that we do carefully
11 look at what downsides there are to this,
12 because there are downsides beyond those that
13 you mentioned.
14 And I look forward to hearing what you all
15 have to say on it.
16 Thanks, Governor.
17 GOVERNOR CHILES: Thank you, sir.
18 COMPTROLLER MILLIGAN: Thank you.
19 MR. HERNDON: That completes the agenda,
20 Governor.
21 GOVERNOR CHILES: All right. Thank you,
22 sir.
23 (The State Board of Administration Agenda
24 was concluded.)
25 *
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE
April 15, 1997
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1 GOVERNOR CHILES: State Board of Education.
2 COMPTROLLER MILLIGAN: Bond Finance,
3 Governor, you want to --
4 GOVERNOR CHILES: All right. Let's --
5 yes. Bond Finance.
6 MR. WATKINS: Item number 1 is
7 authorization of the minutes of the March 25th
8 meeting.
9 COMMISSIONER BROGAN: Move the minutes.
10 SECRETARY MORTHAM: Second.
11 GOVERNOR CHILES: The minutes are moved.
12 SECRETARY MORTHAM: Second.
13 GOVERNOR CHILES: Without objection,
14 they're adopted.
15 MR. WATKINS: Item number 2 authorizes a
16 competitive sale of up to seven million
17 seven hundred eighty thousand Board of Regents
18 revenue bonds for the Student Services Center at
19 Florida A&M University.
20 COMMISSIONER BROGAN: Move approval.
21 SECRETARY MORTHAM: Second.
22 GOVERNOR CHILES: Moved and seconded.
23 Without objection, it's approved.
24 MR. WATKINS: Item number 3 authorizes a
25 competitive sale of up to three million
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1 six hundred five thousand Board of Regents
2 revenue bonds for a parking facility at
3 Florida A&M University.
4 COMMISSIONER BROGAN: Move approval.
5 GOVERNOR CHILES: Moved and --
6 SECRETARY MORTHAM: Second.
7 GOVERNOR CHILES: -- seconded.
8 Without objection, it's approved.
9 MR. WATKINS: Item number 4 authorizes the
10 competitive sale of up to nine million
11 seven hundred eighty thousand dollars of
12 Board of Regents revenue bonds for a parking
13 facility at the University of Central Florida.
14 SECRETARY MORTHAM: Move approval.
15 COMMISSIONER BROGAN: Move approval.
16 Second.
17 GOVERNOR CHILES: Moved and seconded.
18 Without objection, it's approved.
19 MR. WATKINS: One other item for your
20 information that's not on the agenda is that the
21 State of Florida's general obligation bond
22 rating has been upgraded by Standard & Poor's
23 Corporation for the first time in 30 years from
24 a double A to a double A Plus, which is just one
25 notch shy of the highest possible rating, which
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1 is AAA.
2 GOVERNOR CHILES: I think that's excellent
3 news. I'm disappointed they haven't given us a
4 AAA. But we've got to keep working on them.
5 COMPTROLLER MILLIGAN: Another 30 years.
6 GOVERNOR CHILES: No. No. We're not going
7 to do that.
8 (The Division of Bond Finance Agenda was
9 concluded.)
10 *
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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1 GOVERNOR CHILES: All right. Board of
2 Education.
3 DR. BEDFORD: Governor Chiles, members of
4 the State Board of Education, good morning.
5 Item 1, minutes of the meeting held
6 February 25th, 1997.
7 COMMISSIONER BROGAN: Move approval.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, they're approved.
11 DR. BEDFORD: Item 2, Manatee County
12 School Board request to award additional charter
13 schools.
14 COMMISSIONER BROGAN: Governor, this is --
15 if you'll indulge me, this is a new issue for
16 the State Board of Education that comes via the
17 legislation on charter schools.
18 As you probably are already aware,
19 districts are capped on the number of charter
20 schools that they may either convert or begin
21 from grass roots. There's a category for each.
22 Manatee County and their School Board are
23 coming forward and asking, as is a provision
24 within the law, to have additional charter
25 school granting application possibilities, which
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1 are only made possible through this process.
2 Bob, how many are they actually
3 requesting?
4 DR. BEDFORD: They're requesting one
5 additional. They have had four requests to
6 date. They have evaluated all four requests,
7 found them all to be exemplary, and they don't
8 want to be put in a position where they're
9 denying one they think would be very good.
10 COMMISSIONER BROGAN: So these are all
11 start-ups in that category, and they are only
12 permitted three by law.
13 DR. BEDFORD: That is correct. These are
14 not conversions of existing schools. A couple
15 of them are existing programs, but not existing
16 schools. So they're all start-ups.
17 GOVERNOR CHILES: I think that's a
18 reasonable request for one. I think, you know,
19 we should be careful if somebody's asking for as
20 many as they were supposed to have before
21 they're starting.
22 But sounds like a very reasonable request
23 to me.
24 COMMISSIONER BROGAN: I'll move the item,
25 Governor.
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1 SECRETARY MORTHAM: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 DR. BEDFORD: Item 3 is the Annual Feedback
5 Survey, Revised Format. The Executive Director
6 of the Accountability Commission, Mike Biance,
7 would like to make a few statements, please.
8 DR. BIANCE: Governor, members of the
9 State Board, you have before you three totally
10 new survey instruments which meet the statutory
11 requirements, and are submitted for your
12 approval.
13 During the first five-year period under
14 Florida's Education Reform and Accountability
15 law, it was one that was basically of
16 development and intensive training. We are now
17 in a period of measuring results, and dealing
18 with major implementation issues.
19 Just as our emphases have changed, so, too,
20 the tool we use to collect feedback must change.
21 The survey of districts and randomly
22 selected principals and school advisory council
23 chairs is the only ongoing research on Education
24 Reform and Accountability in Florida. And it
25 enjoys an average return of 70 to 80 percent.
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1 The surveys were developed with the
2 tremendous assistance of the Office of Program
3 Policy Analysis and Government Accountability.
4 OPPAGA will also be using the collected data in
5 their reporting.
6 We also hope that the Colleges of Education
7 will utilize this information in directing their
8 graduate students and focusing their research.
9 As you can see from the questions, the
10 survey should generate very rich information,
11 which will be instrumental in annually refining
12 Florida's system of school improvement and
13 accountability.
14 The surveys will be distributed at the end
15 of the month, with the responses analyzed over
16 the summer. And the results will be given to
17 you by October 1st in the Commission's annual
18 report.
19 COMMISSIONER BROGAN: Move the item,
20 Governor.
21 SECRETARY MORTHAM: Second.
22 GOVERNOR CHILES: Thank you, Mike.
23 It's been moved.
24 SECRETARY MORTHAM: Second.
25 GOVERNOR CHILES: Seconded.
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1 Without objection, it's approved.
2 DR. BEDFORD: The State Board of Education
3 will now consider an appeal of a denial of a
4 charter school application pursuant to
5 Chapter 228.056, Laws of Florida. Let me take a
6 moment to explain the process.
7 As prescribed by law, Florida's Charter --
8 excuse me. As prescribed by law, Florida's
9 School Boards are given authority to grant
10 approval to applicants who wish to operate
11 charter schools within a district.
12 A further provision of the law allows an
13 applicant who has been denied a charter, the
14 right to appeal the School Board's decision to
15 the State Board of Education.
16 Based on the written record and oral
17 argument presented at this meeting, the
18 State Board must vote to recommend acceptance or
19 rejection of the appeal to the School Board.
20 The vote requires a simple majority of the
21 members, and by law, is not subject to the
22 provisions of the Administrative Procedures Act.
23 The rule governing the appeal process was
24 unanimously adopted by the Cabinet, sitting as
25 the State Board of Education, on December 10th,
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1 1996.
2 It very clearly states how this hearing
3 must proceed, and it specifies the following
4 limitations which must be respected by the
5 applicant, the district school board, and their
6 representatives.
7 The Notice of Appeal must be based on
8 errors the applicant charges the school board
9 made in its decision to deny the charter.
10 The written argument submitted by the
11 applicant to the State Board is limited to the
12 discussion of those errors.
13 The record of this proceeding is limited to
14 the written arguments, the charter school
15 application itself, and transcripts of meetings
16 before the district school board.
17 At this hearing, representatives of each
18 party may give oral argument. Oral argument is
19 limited to the summary of the written arguments
20 previously submitted to the State Board.
21 Each side is alotted 10 minutes to present
22 its summary. After the summaries are presented,
23 a vote will be taken, and a written
24 recommendation of a vote will be returned to the
25 district school board.
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1 Governor Chiles, we will now move to
2 today's appeal.
3 TREASURER NELSON: Governor, a point of
4 clarification.
5 At the last meeting in which we had an
6 appeal of a charter school, the question arose
7 as to whether or not this was a quasi-judicial
8 proceeding. And, therefore, if it was, would we
9 as the members of the State Board of Education
10 be banned from having ex parte communications.
11 There was a great deal of ambiguity and
12 confusion. I think most of us took the
13 conservative position until we could have it
14 ruled on.
15 And so I wrote Frank, and Frank then
16 detailed to his General Counsel, of which all of
17 you have a memorandum that, in essence, says,
18 yes, this is a quasi-judicial proceeding, and we
19 should not have ex parte communications.
20 Thank you for clarifying that up.
21 COMMISSIONER BROGAN: Yes, sir.
22 DR. BEDFORD: Thank you.
23 Item 4, appeal of the Florida Charter
24 Schools, Don McCammon, which was denied by the
25 Orange County School Board.
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1 The applicant, Don McCammon, Florida
2 Charter Schools, Inc., will now make a
3 presentation.
4 MR. McCAMMON: Governor Chiles,
5 Commissioner Brogan, members of the State Board
6 of Education, my name is Don McCammon. I'm
7 President of Florida Charter Schools, Inc., a
8 Florida not-for-profit corporation organized to
9 improve public education in Florida by creating
10 and operating public charter schools.
11 Before I begin though, as a resident of
12 central Florida, I want to acknowledge a great
13 diplomat and statesman on his championship
14 yesterday -- of central Florida,
15 Eldrick Tiger Woods.
16 Wanted to get that in the record.
17 Florida Charter Schools governing Board of
18 Directors is made up of myself. I'm a licensed
19 and Board certified clinical mental health
20 counselor. I specialize in working with at-risk
21 adolescents; Dr. Charles English, a psychologist
22 and expert in multicultural education;
23 Jessica Poisson, a parent of four children, and
24 chief administrator of a national company;
25 Dr. John Allen, who has a doctorate in
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1 educational psychology, and is the owner and CEO
2 of the Allen Group, a well-known provider of
3 employee assistance services; Ted Doss, an
4 attorney who was instrumental in reforming
5 Florida's home school laws; Al Anderson, a
6 certified public accountant, and former
7 vice-president of finance of a publicly held
8 company; and, finally, Dr. Stan Marshall, the
9 CEO of the James Madison Institute here in
10 Tallahassee and a former president of
11 Florida State University.
12 As stated in our appeal, Florida Charter
13 Schools, Inc., submitted a formal application to
14 operate a charter high school in Orange County,
15 Florida. We submitted this on December 10th,
16 1997.
17 Prior to that date -- December 10th, 1997.
18 Prior to that date, we had provided the
19 staff and School Board members with a
20 pre-proposal, and let them know in advance our
21 plans to submit an application.
22 With the application, we submitted a
23 complete copy of a proposed contract or
24 charter. This document. And at a School Board
25 work session, members of the School Board
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1 indicated some concerns about our Board of
2 Directors serving as consultants, so we amended
3 our application so that no members of our Board
4 would be paid as Directors, nor would they be
5 paid as consultants. The amendments to the
6 application are listed in our appeal as
7 Exhibit C.
8 Included in the amendments were changes to
9 address other concerns voiced by the staff.
10 The charter school legislation provides
11 that school boards have 60 days to accept or
12 deny an application. The attorney for the
13 School Board, Mr. Kruppenbacher, who may speak
14 today -- and who, by the way, we've had an
15 excellent working relationship with, and I'm
16 grateful for his professionalism -- indicated
17 that they needed additional time to consider the
18 application.
19 So in a spirit of cooperation, we extended
20 the date to the first School Board meeting in
21 February, beyond the 60 days.
22 Once again, the School Board attorney
23 requested more time; so once again in a spirit
24 of cooperation, we extended the date to the
25 second School Board meeting in February.
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1 One of the School Board staff members,
2 Dr. Whittier, also requested that we change the
3 format of our charter. So, in a spirit of
4 cooperation, we completely changed and rewrote
5 the charter to meet their requirements.
6 On February 25th, 1997, the School Board
7 approved two applications. That's a date they
8 held their public hearing, one for an elementary
9 school, one for a middle school, and they denied
10 our application to operate a night high school
11 by a vote of 7 to 0.
12 As noted in the minutes to the meeting
13 shown in Exhibit F in our appeal, the
14 School Board did not state the reasons for their
15 denial. The staff of the School Board made some
16 self-serving comments at the School Board
17 meeting to discredit me personally and to
18 discredit our application.
19 For example, Mr. Williams stated that I
20 would receive a $45,000 salary from both the
21 Seminole County school, and from an
22 Orange County school as President of the
23 corporation. He knew full well that was not the
24 case.
25 He also stated that we had misrepresented
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1 Mrs. Germann as a member of our Advisory Board.
2 Mrs. Germann is an outstanding teacher, and was
3 voted the 1996 Compact Teacher of the Year and
4 1997 Teacher of the Year for University High.
5 Mrs. Germann and I worked together at
6 University High for two years where I was a
7 member of their SAC committee, and where I did
8 counseling group for their at-risk students
9 every week at no charge for those two years.
10 As stated in our reply to the
11 School Board's response, Mrs. Germann has
12 admitted being on our Advisory Board, and I find
13 it hard to believe that Mr. Williams would use
14 one of his own employees in an attempt to
15 discredit me and our application.
16 As noted in Exhibit 8 of our -- H of our
17 reply, the School Board staff has also created
18 considerable mistrust with a current applicant
19 that is attempting to convert Windy Ridge
20 Elementary School to a charter school.
21 The entire community has given the
22 School Board staff a vote of no confidence. In
23 a recent poll conducted by the Sentinel, an
24 overwhelming majority of the local electorate
25 indicates a lack of trust in the School Board
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1 staff.
2 The last minute arguments that the staff
3 posted for denying our application are without
4 merit. If the School Board was truly concerned
5 about our budget or about our plan for ESE
6 students, why weren't these concerns voiced
7 before the public hearing so they could be
8 addressed and corrected.
9 As stated, we gave the School Board staff
10 plenty of time to respond with two extensions.
11 Following the denial, the Superintendent of the
12 School Board and the School Board attorney
13 suggested we make some changes and resubmit the
14 application. I agreed to do that.
15 I met with Mr. Williams and asked for
16 specific changes that they would like. In my
17 letter to Mr. Williams of February 28th, 1997,
18 shown in Exhibit E, we offered the staff almost
19 three weeks to come up with their recommended
20 changes so we could resubmit our application.
21 They did not respond, and we are forced to
22 appeal.
23 I submit that the School Board and their
24 staff did not act in good faith, that their
25 arguments to deny the school are frivolous and
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1 without merit and they arbitrarily and
2 capriciously denied our application.
3 It should be noted, they indicated some
4 concern about some of our Board members also
5 serving as employees of the school. Yet they
6 approved the Passport school the same day that
7 has the same provision.
8 They indicate concern about our budget.
9 Yet they approved the Passport school
10 application that did not even include a budget
11 in their application as part of the public
12 record.
13 Also, the organizers of the Passport school
14 previously failed in operating a private school,
15 and now have come to the public trough to start
16 a charter school. Despite their prior financial
17 failure at wanting a school, they were approved
18 by the School Board.
19 We would be a performance based school, we
20 have set performance goals to exceed State
21 averages on all required high school testing by
22 10 percent. This includes the new Florida
23 Comprehensive Assessment Test, Florida Writes,
24 and the HSCT.
25 If we don't perform, the School Board has
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1 the right to close us down. If we create debts,
2 the governing body of the school, our Board of
3 Directors, is responsible for those debts if
4 we're closed.
5 It is the School Board's job to monitor the
6 school, and they can close it down without
7 notice at any time if they believe we have
8 misused funds, or the school is doing anything
9 that may threaten the health or welfare of the
10 students.
11 Right now, thousands of students each year
12 drop out of Orange County schools.
13 Orange County is one of the districts in the
14 State where over 40 percent in Florida -- over
15 40 percent of their high school students that
16 have stayed in school currently have a D average
17 or less.
18 Our school gives these kids an alternative
19 to a traditional high school, gives them hope.
20 The greatest risk is that nothing is done and we
21 lose these kids, and they end up in menial jobs,
22 on welfare, and with dead-end lives.
23 Our high schools are failing. We are the
24 only charter high school that has been proposed
25 in the district.
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1 The staff has admitted that we have an
2 excellent program, there is a proven need; and
3 by their own survey of high school students,
4 which is part of our exhibit, there are
5 thousands of students that would prefer to
6 attend a night high school like ours.
7 Our school has a potential to save the
8 district millions of dollars in much needed
9 money to build new schools.
10 Currently seven of their twelve senior high
11 schools are overcrowded, and the school district
12 needs a projected seven hundred and
13 fifty million dollars to construct new schools.
14 Our school would be attended by high school
15 students throughout the district, and would
16 relieve crowding and reduce classroom size all
17 at the same time. It would save the district up
18 to fourteen million dollars in new construction
19 costs.
20 Our school serves a community, it saves
21 taxpayers' monies, and it gives kids a new way
22 to stay in school and be successful.
23 As stated by Finn, Bierlein, and Manno, the
24 authors quoted by the School Board attorneys in
25 their response, the motives for opposing charter
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1 schools are mixed, but often include
2 self-interested protection by government and the
3 public education monopoly.
4 This is politics at its worst. It hurts
5 our children and keeps our kids from having a
6 chance to succeed.
7 By maintaining a stranglehold on local
8 public schools, school boards stifle innovation
9 and competition in a last-ditch attempt to
10 maintain their power and control.
11 Local School Board budgets are the last
12 great political cookie jar in Florida. School
13 Boards are willing to give out a few small
14 crumbs by issuing charters to small token
15 charter schools.
16 This is much like Florida school boards did
17 in the '60s. I went to elementary, junior high,
18 and part of high school in public schools in
19 Dade County in the early '50s and early '60s,
20 and I remember when Florida schools were first
21 integrated.
22 In an attempt to circumvent the law, local
23 school boards admitted a token number of blacks
24 to their all-white schools. The courts saw
25 through this deception and ruled against local
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1 school boards.
2 I believe the courts will see through this
3 same deception where school boards approve
4 small, powerless charter schools in an attempt
5 to circumvent the law and keep parents from
6 having some real say in the education of their
7 children. This is a 1990s version of tokenism.
8 You are the State Board of Education. You
9 are ultimately responsible for the public
10 education system of Florida. I don't think most
11 voters realize that the parent Board of
12 Education of Florida is made up of the Governor
13 and the Cabinet.
14 By rejecting specious arguments and
15 frivolous reasons for denying charter schools,
16 you have the opportunity to give true local
17 control back to local people, back to the
18 parents and community groups that have great
19 hope for this charter law.
20 The regional accreditation body for Florida
21 schools is the Southern Association of Colleges
22 and Schools. They do not accredit school
23 boards. They accredit individual schools, and
24 they believe the site for educational
25 improvement lies with the individual local
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1 school, not the school board.
2 This is the same philosophy of the charter
3 school law. Local control means control at the
4 school level where parents and community groups
5 have the opportunity to create and run their own
6 public charter schools.
7 The authors that the School Board attorneys
8 quote state: Because much time and energy are
9 wasted when prospective charter starters are
10 obliged to go to their local board for approval,
11 even if an appeals process exists, groups should
12 have the option of taking their charter proposal
13 directly to the State or another entity.
14 For those who argue that State sponsorship
15 violates a principle of local control, we ask,
16 what could be more local than the grass roots
17 initiation of a charter school that is then
18 completely directed by parents, teachers, and
19 other community members who serve on its Board
20 with the State providing only contract
21 oversight.
22 This seems to us far closer to the spirit
23 of local control than a single School Board that
24 oversees a multitude of schools sprawled over
25 vast tracks of real estate, and manages them
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1 through a large bureaucracy, end quote.
2 If you accept the right of school boards to
3 turn down charter school applicants for
4 arbitrary and capricious reasons, then we
5 believe you will stifle significant innovation
6 in Florida.
7 We still believe we can work with
8 Orange County. We're very hopeful we can work
9 with Orange County. I was a volunteer in
10 Orange County schools for five years, and I've
11 tried very hard to work in their schools.
12 The Governor's leadership has focused on
13 the needs of our children this year, and
14 Commissioner Brogan has had the political
15 courage to point out the problems in our public
16 school system, and to begin to hold local boards
17 accountable.
18 Our hope now is that the entire State Board
19 of Education will stand up for the children of
20 Florida, and stand up for the right of parents
21 to create their own charter schools.
22 Our hope is that you will uphold our appeal
23 and send it back to the School Board, and give
24 them the opportunity to accept the application,
25 or at least show good cause why it is denied.
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1 Thank you.
2 COMMISSIONER BROGAN: Governor --
3 GOVERNOR CHILES: Yes, sir.
4 COMMISSIONER BROGAN: -- suffice it to say,
5 especially considering the headlines, I suppose
6 I am second to none in my admiration of the
7 charter school movement and the potential that
8 it has for helping to reinvent and reinvigorate
9 public education.
10 I think the State Board has demonstrated a
11 commitment to charter schools by its actions
12 over the last couple of years.
13 GOVERNOR CHILES: Second to none makes me
14 none.
15 COMMISSIONER BROGAN: Equal to, how's
16 that?
17 GOVERNOR CHILES: All right.
18 COMMISSIONER BROGAN: And I would -- and at
19 the -- at the last -- I suppose it was the last
20 meeting when we had two charter school appeals,
21 we, I believe, upheld one of those denials, and
22 recommended the overturn of one of those
23 denials.
24 In looking at this particular application,
25 and I think the -- the well written response
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1 from the School Board, my position has not
2 changed from the last meeting, and I certainly
3 want to hear from the representative of the
4 County.
5 But I -- I just wanted to respond to terms
6 arbitrary and capricious. And I think that as
7 the State Board of Education so frequently does,
8 is we hear not just on educational issues, but
9 on land acquisition issues and others, we look
10 for the guts of -- of the responsive groups and
11 organizations.
12 So I just wanted to make that statement
13 before we even hear from the next -- next
14 presenter.
15 And I do stand corrected, Governor. I am
16 not second to none. I'm equal to my admiration.
17 DR. BEDFORD: For the School Board, we have
18 Frank Kruppenbacher, attorney for the Board.
19 MR. KRUPPENBACHER: Good morning, Governor
20 and members of the Cabinet. I'm here today as
21 General Counsel on behalf of the Orange County
22 School Board. With me is Dr. Bob Williams, the
23 Deputy Superintendent for Instruction. And in
24 the audience is Ms. Susan Arkin, the chairman of
25 the School Board.
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1 On February 25th, 1997, the School Board
2 considered three charter applications. Contrary
3 to the rhetoric of the Orange County
4 School Board being somehow hostile to charter
5 schools that you just heard, the -- we are very
6 proud of the fact that the first two
7 applications were approved by the School Board
8 that night.
9 This was the third application.
10 To the benefit of the Cabinet, I would
11 point out to you that the Cabinet heard
12 virtually an identical appeal involving this
13 applicant, this type charter school, in our
14 sister county, the Seminole County school
15 system. And the Cabinet denied that particular
16 application.
17 The appeal involved at least four of the
18 identical issues in the brief filed by the
19 applicant that are in front of you today, the
20 same were heard and dealt with by the Cabinet in
21 Seminole County.
22 We are a seven-member School Board. They
23 voted unanimously to approve the first two
24 charters, and unanimously to deny this charter.
25 They did so for several reasons.
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1 One, they were concerned regarding the
2 financial viability regarding this applicant.
3 The application did not address in any manner --
4 or even attempt to address in any manner,
5 funding for exceptional students, those with
6 exceptional education needs.
7 In fact, during the application process, it
8 was initially represented to our staff there was
9 no plan to serve those type students.
10 Second, there was a concern regarding
11 speculative funding for this. Ten percent of
12 the budget was based upon what were to be either
13 grants or charitable funding, that there was no
14 declaration, no delineation of where that source
15 was going to come from.
16 Along with that financial concern, which
17 I think there was support for the Board when it
18 looked at its community and said, will our
19 community step up to the plate and give
20 charitable contributions to this organization.
21 That's where the Board looks at the individual
22 applicants.
23 There was an editorial in our local paper,
24 the Orlando Sentinel, as well as an article and
25 an interview, that was critical of this
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1 applicant, given the president's financial
2 backing, his financial history.
3 And, granted, people have bankruptcies and
4 go on with their life. But there was never any
5 evidence of a successful ability to manage and
6 run a business or to be financially prudent in
7 doing so.
8 I think the Board correctly concluded in
9 light of that public dissemination of
10 information to the community the kind of people
11 who make charitable contributions within our
12 area would not support funding that applicant.
13 The Board was concerned about a conflict of
14 interest. This applicant proposed that Board of
15 Director members would be paid, and they would
16 set their own salaries. That didn't change in
17 subsequent modifications in the application.
18 There would still be Board of Director
19 members who would be employees who would set
20 their own salaries.
21 The School Board's elected by the public,
22 their salaries are set by law. We didn't deem
23 it appropriate that a Board of Directors for a
24 charter school would say, here's what we're
25 going to make.
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1 There was a question about the stability of
2 the Board of Directors. As early as two weeks
3 prior to this application being heard by
4 the Board, two very respected members withdraw
5 without -- resigned and withdrew from the Board
6 without reason.
7 Finally, there was a significant issue
8 regarding credibility. And I submit to you that
9 we look forward to our partnership, and I call
10 it a partnership, with the first two charter
11 schools that were approved in Orange County.
12 And I will digress to say, we look forward
13 hopefully to a partnership with Windy Ridge. We
14 meet Friday to work through some tough issues.
15 Commissioner Brogan, your office, and
16 Mr. Bailey have been very helpful with us
17 working through some of those issues.
18 But a partnership's very foundation is
19 trust. I think all of you familiar with
20 education know how highly valued our educators
21 are, and our teachers. You also know the degree
22 of respect that a teacher of the year commands
23 within an educational institution, whether they
24 be a teacher from a local school, from a
25 program, or a teacher of the year for the entire
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1 county.
2 In this case, the applicant represented to
3 the School Board that Ms. Germann, a Teacher of
4 the Year finalist, and one from her own program,
5 would assist in, and would help write grants for
6 this school, one of the very critical components
7 of how they would get funding.
8 There is an Exhibit E to the appeal filed
9 by this applicant to you, a letter from that
10 applicant which is best summed up as follows in
11 her own words:
12 In closing, I would just like to add that I
13 am livid to have been so fraudulently wronged by
14 you.
15 That applicant was referring to the
16 representations that she would serve to assist
17 or consult or do anything to help on grants.
18 She had not, and she says in the letter, ever
19 agreed to do that.
20 Even more incredible was a representation
21 at this very hearing to the Board that the
22 applicant was in the audience that night, and
23 would answer any questions that my Board may
24 have.
25 And a look at the letter in front of you
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1 that this applicant put in his appeal
2 specifically pointed out she was not in the
3 audience.
4 Now, if we look truly to have a
5 partnership, and we look to innovative changes,
6 and we look to being role models for our
7 children, the very essence of it starts with the
8 leadership of our schools.
9 And if the very person who comes before a
10 School Board and says, I want to partner with
11 you, I can lead an educational component of this
12 district and help improve children, if that very
13 person is dishonest, or even to be kind, is lax
14 in their representations, then I submit to you,
15 we have created at the very inception exactly
16 what we're striving not to do with our kids.
17 And my School Board wouldn't buy it. We
18 believe we're committed that much more to our
19 children. And I'd ask for support from this
20 Cabinet for that very principle.
21 If you come in front of a school district
22 and you say, please give me a charter, let me
23 work with these kids, then by God, you ought to
24 come in front of it, tell them the truth, and
25 lay it out.
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1 And so with all due respect, we would ask
2 that you support the Orange County
3 School Board's position in this matter.
4 Thank you.
5 COMPTROLLER MILLIGAN: Governor, I have a
6 quick question.
7 The inference was made that the
8 School Board offered the -- Mr. McCammon the
9 opportunity to resubmit.
10 Was that, in fact, an offer that was made?
11 MR. KRUPPENBACHER: Mr. Milligan, I will
12 tell you that I have told Mr. McCammon, and I
13 would tell any applicant who was denied at the
14 Orange County School Board, that they would have
15 a right to resubmit and attempt to deal with the
16 issues that were raised by the school district.
17 I believe that's the inherent spirit of the
18 charter school law.
19 COMPTROLLER MILLIGAN: And then he did,
20 in fact, send a letter to you -- to the
21 School Board asking for the reasons for the --
22 the denial?
23 MR. KRUPPENBACHER: He was there at the
24 meeting and told the reasons why.
25 COMPTROLLER MILLIGAN: But I --
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1 MR. KRUPPENBACHER: We went --
2 COMPTROLLER MILLIGAN: -- you didn't answer
3 my question.
4 MR. KRUPPENBACHER: Okay. He sent
5 Dr. Williams a letter.
6 COMPTROLLER MILLIGAN: And was that letter
7 responded to?
8 DR. WILLIAMS: He did send me a letter
9 asking for the different areas. But I had gone
10 over on -- on several occasions with
11 Mr. McCammon some of the concerns that we had
12 right up to the last minute. We made changes
13 constantly right up to the last minute.
14 But he did send me a letter, and did
15 request in writing the reasons. But we had gone
16 over those same reasons at the night -- on the
17 25th at the Board meeting.
18 COMPTROLLER MILLIGAN: But as a matter of
19 record at the Board meeting?
20 DR. WILLIAMS: Yes.
21 COMPTROLLER MILLIGAN: And so you did not
22 answer the letter, but felt that the record of
23 the Board meeting defined the reasons for the
24 denial.
25 DR. WILLIAMS: Correct.
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1 COMPTROLLER MILLIGAN: Okay. Thank you.
2 GOVERNOR CHILES: Is there any questions?
3 Do you have anything else to present to
4 us?
5 MR. KRUPPENBACHER: No. Thank you,
6 Governor. Thank you, members.
7 GOVERNOR CHILES: Thank you.
8 Is there a motion?
9 COMMISSIONER BROGAN: Governor, I would
10 move, based on my statements of a few moments
11 ago, and I think some of the discussions that we
12 had at the previous Board meeting, that, indeed,
13 the School Board in this particular case is
14 within its right.
15 It is my hope that Mr. McCammon will
16 continue to work with the school system, and see
17 if at a different and more appropriate time he
18 may be able to refile and resubmit an
19 application for future consideration.
20 And I agree with counsel, I think that
21 everyone has the right to go back again. Once
22 denied doesn't mean that you are blacklisted,
23 that you've got an opportunity to return again
24 to that, or any other school district and submit
25 another application for future consideration.
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1 But at this point, I would move that we
2 uphold the denial of the School Board in
3 Orange County.
4 COMPTROLLER MILLIGAN: If I may, Governor,
5 I do believe that the School Board should have
6 responded to that correspondence, regardless of
7 the assumption that the denial and the reason
8 for the denial was contained in the record of
9 the School Board meeting. I believe the
10 School Board failed to be at least courteous in
11 responding to that letter.
12 I would second the motion with the proviso
13 that the Board, in fact, formally respond to the
14 request for the reasons that he was denied, to
15 give this man an opportunity to resubmit in the
16 spirit of resubmitting. But also to clarify
17 exactly the reasons for the denial.
18 GOVERNOR CHILES: All right. It's been
19 moved and seconded, request that the
20 School Board submit the letter.
21 Is there further discussion?
22 Many as favor, signify by saying aye.
23 THE CABINET: Aye.
24 GOVERNOR CHILES: Opposed, no.
25 The ayes have it. School Board is upheld.
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1 DR. BEDFORD: Item 5, Rule 6A-1.0014, an
2 amendment to the Comprehensive Management
3 Information System.
4 SECRETARY MORTHAM: Move approval.
5 COMMISSIONER BROGAN: Second.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, it's approved.
8 DR. BEDFORD: Item 6,
9 State University System. Rule 6C-1.010,
10 amendment to the Chancellor.
11 COMMISSIONER BROGAN: Move approval.
12 SECRETARY MORTHAM: Second.
13 GOVERNOR CHILES: Moved and seconded.
14 Without objection, it's approved.
15 DR. BEDFORD: Item 7,
16 State University System, Rule 6C-1.014,
17 amendment, section called Inspectors General.
18 COMMISSIONER BROGAN: Move approval.
19 COMMISSIONER CRAWFORD: Second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, that's approved.
22 DR. BEDFORD: Item 8, Postsecondary
23 Education Planning Commission, Limited Access
24 Competitive Grant Program.
25 COMMISSIONER BROGAN: Move approval.
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1 SECRETARY MORTHAM: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, that's approved.
4 DR. BEDFORD: That concludes our agenda.
5 Thank you.
6 GOVERNOR CHILES: Thank you, sir.
7 (The State Board of Education Agenda was
8 concluded.)
9 *
10
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14
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17
18
19
20
21
22
23
24
25
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ADMINISTRATION COMMISSION
April 15, 1997
62
1 GOVERNOR CHILES:
2 Administration Commission.
3 DR. BRADLEY: Item number 1, recommend
4 approval of the minutes of the meetings held
5 March 11th, 2-- and -- 25th --
6 COMMISSIONER CRAWFORD: Motion.
7 DR. BRADLEY: -- and 27th, 1997.
8 COMMISSIONER BROGAN: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, the minutes are
11 approved.
12 DR. BRADLEY: Items 2 through 4 were
13 deferred from the March 25th meeting.
14 Item number 2 is recommend approval of the
15 transfer of general revenue appropriations in
16 Department of Children and Families.
17 COMMISSIONER CRAWFORD: Motion.
18 SECRETARY MORTHAM: Second.
19 GOVERNOR CHILES: Moved and seconded.
20 Without objection, Item 2 is approved.
21 DR. BRADLEY: Item number 3, recommend
22 approval of the transfer of general revenue
23 appropriations in the Department of Corrections.
24 COMMISSIONER BROGAN: Move approval.
25 COMMISSIONER CRAWFORD: Second.
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1 GOVERNOR CHILES: Item number 3 has been
2 moved and seconded.
3 Without objection, it's approved.
4 DR. BRADLEY: Item number 4 is recommend
5 approval of the transfer of general revenue
6 appropriations in the Department of Education.
7 COMMISSIONER BROGAN: Move approval.
8 COMMISSIONER CRAWFORD: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, Item 4 is approved.
11 DR. BRADLEY: Item number 5 is recommend
12 approval of the transfer of general revenue
13 appropriations under Items 5A and B in the
14 Department of Children and Families.
15 SECRETARY MORTHAM: Move approval.
16 COMMISSIONER BROGAN: Second.
17 GOVERNOR CHILES: Moved and seconded.
18 Without objection, that's approved.
19 DR. BRADLEY: Item number 6 is request
20 authorization to enter the draft order. This
21 has to do with the purpose of exempting
22 educational units from the requirements of
23 publishing notices in the Florida
24 Administrative Weekly.
25 SECRETARY MORTHAM: Move approval.
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1 COMMISSIONER CRAWFORD: Second.
2 COMMISSIONER BROGAN: Second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, that's approved.
5 DR. BRADLEY: That's all, Mr. Chairman.
6 (The Administration Commission Agenda was
7 concluded.)
8 *
9
10
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13
14
15
16
17
18
19
20
21
22
23
24
25
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MARINE FISHERIES COMMISSION
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1 GOVERNOR CHILES: Marine Fisheries
2 Commission.
3 MR. SHELFER: Good morning.
4 Item A involves an emergency rule,
5 46ER97-1, to reinstate an allowable gear
6 provision to make legal the gigging of flounder
7 in Volusia County.
8 COMMISSIONER BROGAN: Move the rule,
9 Governor.
10 SECRETARY MORTHAM: Second.
11 COMMISSIONER CRAWFORD: Second.
12 GOVERNOR CHILES: Moved and seconded.
13 Is there objection?
14 Without objection, the rule is adopted.
15 MR. SHELFER: Thank you, sir.
16 GOVERNOR CHILES: Thank you, sir.
17 (The Marine Fisheries Commission Agenda was
18 concluded.)
19 *
20
21
22
23
24
25
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1 GOVERNOR CHILES: Trustees.
2 MS. WETHERELL: Item 1, minutes.
3 COMMISSIONER BROGAN: Move it.
4 SECRETARY MORTHAM: Move approval.
5 GOVERNOR CHILES: Moved and seconded.
6 Without objection -- is there a second?
7 SECRETARY MORTHAM: Yes.
8 COMMISSIONER BROGAN: Yes, sir.
9 COMMISSIONER CRAWFORD: Second.
10 GOVERNOR CHILES: Seconded.
11 Without objection, the minutes are
12 approved.
13 MS. WETHERELL: Item 2 is a purchase
14 agreement for Belle Meade CARL project, and a
15 waiver of survey.
16 SECRETARY MORTHAM: Move approval.
17 COMMISSIONER BROGAN: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, Item 2 is approved.
20 MS. WETHERELL: Item 3 are three option
21 agreements for Belle Meade CARL project, and a
22 waiver of survey.
23 SECRETARY MORTHAM: Move approval.
24 COMMISSIONER BROGAN: Second.
25 GOVERNOR CHILES: Moved and seconded.
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1 Without objection, Item 3 is approved.
2 MS. WETHERELL: Item 4 is a purchase
3 agreement for the Department of Agriculture.
4 COMMISSIONER BROGAN: Move approval.
5 GOVERNOR CHILES: Moved.
6 SECRETARY MORTHAM: Second.
7 GOVERNOR CHILES: Seconded.
8 Without objection, Item 4 is approved.
9 MS. WETHERELL: Item 5 is assignment of an
10 option agreement for Lake Wales Ridge CARL
11 project.
12 SECRETARY MORTHAM: Move approval.
13 COMMISSIONER BROGAN: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, that's approved.
16 MS. WETHERELL: Item 6 are amendments to
17 Chapter 18-21.
18 SECRETARY MORTHAM: Move approval.
19 COMMISSIONER BROGAN: Second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, that's approved.
22 MS. WETHERELL: Items 7 are amendments to
23 St. Joe Bay Management Plan, and rule amendment.
24 SECRETARY MORTHAM: Move approval.
25 COMMISSIONER BROGAN: Second.
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1 GOVERNOR CHILES: Moved and seconded.
2 Without objection, Item 8 is approved.
3 MS. WETHERELL: Substitute Item 8 are
4 amendments to Chapter 18-20 for aquatic
5 preserves.
6 COMMISSIONER BROGAN: Move approval.
7 SECRETARY MORTHAM: Second.
8 GOVERNOR CHILES: Moved and seconded.
9 Without objection, that's approved.
10 MS. WETHERELL: I wanted to recognize
11 Representative Jones, if he is here. I
12 understood he might come.
13 He was the one responsible for the
14 legislation that resulted in this. But I don't
15 believe he's here.
16 Substitute Item 9, Cross State Towing
17 submerged land lease.
18 COMMISSIONER BROGAN: Governor, I'd like to
19 move to defer this item until June 12th.
20 COMMISSIONER CRAWFORD: Second.
21 GOVERNOR CHILES: Motion to defer and
22 seconded.
23 Without objection, it's deferred.
24 MS. WETHERELL: Item 10 is the
25 Charles River Lab lease revocation.
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1 And, Governor and Trustees, during the last
2 30, 45 minutes, some of the Aides have been
3 meeting with my attorney, David Schwartz, and
4 they still have a number of concerns which
5 I think are legitimate. However, all the
6 Cabinet Aides were not in this meeting.
7 And for that reason, I would suggest that
8 we defer this meeting -- this item until the
9 next meeting. They bring up some points that
10 they're concerned that the position that we're
11 in in terms of what we would be taking to the
12 judge might have a negative impact that we're
13 not currently thinking of.
14 And without getting into details, I think
15 they have some good points. And I think that
16 all the Aides ought to have an opportunity to
17 talk about it, and then discuss it with you.
18 We are -- this does not effect the status
19 of the lawsuit. The Department believes this is
20 the position we ought to be in. But I think we
21 probably need to defer it.
22 SECRETARY MORTHAM: Move deferral.
23 COMPTROLLER MILLIGAN: Second.
24 COMMISSIONER BROGAN: I'll second.
25 GOVERNOR CHILES: Moved and seconded on a
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1 motion to defer.
2 And without objection, it's deferred.
3 MS. WETHERELL: All right. And if could I
4 now turn over Item 11 to the Water Management
5 District, Henry Dean is here.
6 And, Governor and Trustees, just to refresh
7 your memory, a couple of years ago when the
8 Legislature consolidated the Departments of
9 Wetland Permitting with the
10 Water Management District's Surface Water
11 Permitting, at that point in time, they made it
12 very clear that the Water Management Districts
13 are separate staff to you as the Board of
14 Trustees for items that involve State lands,
15 sovereign submerged lands.
16 And so for that reason, this is the very
17 first item you've had to come to you that was a
18 Water Management District item.
19 In the future -- we've recognized it has
20 caused confusion because it's on our agenda, and
21 for the future, we will have a separate agenda
22 for all of the Water Management District items.
23 It will be their agenda. It will be a
24 Board of Trustees, but it'll be their agenda,
25 because clearly the statute does not give us any
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1 authority to in any way work on these items.
2 They are the Water Management District's items.
3 COMMISSIONER BROGAN: Governor, can I ask
4 a --
5 GOVERNOR CHILES: Yes.
6 COMMISSIONER BROGAN: -- just a quick
7 question.
8 Are they separate and distinct, Secretary,
9 in terms of their ability to bring items to the
10 Cabinet then in your mind?
11 MS. WETHERELL: Yes. What the Legislature
12 did was to say that certain kinds of activities
13 would be permitted by DEP, and certain kind of
14 activities would be permitted by the
15 Water Management District.
16 And when those activities that are
17 permitted by the Water Management Districts
18 involve sovereign submerged lands, for which you
19 have responsibility, then they are your staff.
20 And when it involves -- when activities that we
21 permit, then we are your staff.
22 And so they can -- they write the item, we
23 don't really have any authority to amend the
24 item. We can say we like it or don't like it,
25 but we don't have any authority.
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1 COMMISSIONER BROGAN: Will you be bringing
2 forward a recommendation, or -- as well, or
3 would they be standing alone then in --
4 MS. WETHERELL: Well, since this is the
5 first one, we've kind of struggled with what's
6 the appropriate process. And one thing we could
7 do -- it would be their agenda item, and they
8 would prepare it, and they would work with your
9 Aides on the item.
10 But we could have a statement at the end of
11 the item, similarly to what we have at the end
12 of all of our items in regards to whether the
13 item is consistent with the comp plan. We could
14 have a statement that said we find it consistent
15 with the Board of Trustees policy, or
16 something --
17 COMMISSIONER BROGAN: You may want to talk
18 to our folks. It's not too dissimilar to what
19 we do with community colleges and state
20 university.
21 They all more or less come under the same
22 umbrella, but they have separate and distinct
23 requirements and obligations, and we've kind of
24 worked an arrangement out as to how we bring
25 things forward to the --
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1 MS. WETHERELL: Uh-hum.
2 COMMISSIONER BROGAN: -- State Board of
3 Education.
4 MS. WETHERELL: Right.
5 Well, we'll work with your staff. And we
6 just -- we will separate the item, but we'll
7 work with your staff to get whatever connections
8 they want.
9 GOVERNOR CHILES: All right.
10 COMMISSIONER BROGAN: Thanks, Governor.
11 MR. DEAN: Good morning.
12 GOVERNOR CHILES: Good morning.
13 MR. DEAN: Since this is the first one, as
14 I understand it, hopefully it'll be pretty
15 simple.
16 We're recommending deferral of this item
17 until -- until May 28th --
18 COMMISSIONER CRAWFORD: You fall right in
19 line with this bunch today.
20 MR. DEAN: I -- I became quite capable of
21 recommending deferral when I served as the
22 Trustees' attorney a number of years ago.
23 So -- we do need to defer this -- or we'd
24 like to ask that you move to defer this until
25 May 28th, and that's our recommendation.
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1 COMMISSIONER BROGAN: Move deferral,
2 Governor.
3 SECRETARY MORTHAM: Second.
4 COMMISSIONER CRAWFORD: Second.
5 GOVERNOR CHILES: Moved and seconded.
6 Without objection, it's deferred.
7 MR. DEAN: Thank you. I -- I have to
8 say --
9 GOVERNOR CHILES: A very successful
10 appearance here.
11 MR. DEAN: Well, I have to tell you, if I
12 may --
13 GOVERNOR CHILES: Hope you're as fortunate
14 in the future.
15 MR. DEAN: Governor, I have to tell you --
16 for 3 seconds, I have to tell you that it is --
17 it was 18 years ago this week that I made my
18 first appearance at a Cabinet meeting as a staff
19 attorney for DNR.
20 And so I consider this sort of a -- much as
21 the same as the Hale-Bopp Comet, sort of an
22 elliptical career path, and I'm now back as
23 staff to the Trustees. And it was 18 years ago
24 this week. And it's wonderful to be back.
25 GOVERNOR CHILES: Thank you, sir.
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1 TREASURER NELSON: Governor, I have a
2 question.
3 GOVERNOR CHILES: Yes, sir.
4 TREASURER NELSON: Madam Secretary, let me
5 ask you: Governor, I noticed in the clips that,
6 lo and behold, they're at it again on offshore
7 oil drilling.
8 The Federal Government has been petitioned
9 to -- for a well 17 miles south of
10 Pensacola Beach.
11 And with regard to the State, Coastal
12 Petroleum has filed 12 more applications to
13 drill off such areas, some nonsensitive areas
14 such as Sarasota, Sanibel, off of
15 Tarpon Springs, off of St. George Island.
16 So what I'd like to find out, if you could
17 give us a -- Madam Secretary, a status report,
18 they filed for these 12.
19 MS. WETHERELL: Uh-hum.
20 TREASURER NELSON: You have certain legal
21 constraints. Tell us about those constraints,
22 and if you have to accept their applications.
23 And you might also talk about the
24 legislation -- there's legislation that ups the
25 bond requirement, which we've had discussions
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1 here in Cabinet meetings about.
2 MS. WETHERELL: Uh-hum.
3 TREASURER NELSON: Tell us about that.
4 MS. WETHERELL: Well, what I would like to
5 do is to give you a status report of those
6 applications at the next Cabinet meeting, if I
7 could. We'll go back and assess what those
8 applications look like.
9 If you recall, the ones that they submitted
10 the first time were in no way near complete
11 applications. And because of the session, I'll
12 have to be honest with you and tell you that I
13 haven't had time to focus on what the status of
14 those are.
15 But in terms of the legislation, the -- the
16 Attorney General is the one who has been behind,
17 and more or less sponsoring the legislation that
18 would ensure that you have an opportunity as
19 Trustees to require the kind of surety for any,
20 you know, drilling that takes place. And that
21 seems to be doing okay.
22 Yes. So -- and Suwaya Crane is certainly
23 following that.
24 TREASURER NELSON: If we could discuss this
25 at the next meeting --
ACCURATE STENOTYPE REPORTERS, INC.
BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
April 15, 1997
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1 MS. WETHERELL: I will bring you a --
2 TREASURER NELSON: -- I would appreciate
3 it.
4 MS. WETHERELL: -- status report at the --
5 GOVERNOR CHILES: We'll do that.
6 MS. WETHERELL: -- next meeting.
7 TREASURER NELSON: Thank you.
8 MS. WETHERELL: Thank you.
9 (The Board of Trustees of the Internal
10 Improvement Trust Fund Agenda was concluded.)
11 *
12 (The Cabinet meeting was concluded at
13 11:24 a.m.)
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ACCURATE STENOTYPE REPORTERS, INC.
April 15, 1997
78
1 CERTIFICATE OF REPORTER
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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 77 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 25TH day of APRIL, 1997.
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19 LAURIE L. GILBERT, RPR, CCR
100 Salem Court
20 Tallahassee, Florida 32301
(904) 878-2221
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ACCURATE STENOTYPE REPORTERS, INC.
