THE CABINET
STATE OF FLORIDA
_____________________________________________________
Representing:
STATE BOARD OF EDUCATION
DEPARTMENT OF AGRICULTURE AND CONSUMER AFFAIRS
BOARD OF TRUSTEES
STATE BOARD OF ADMINISTRATION
The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush presiding,
in the Cabinet Meeting Room, LL-03, The Capitol,
Tallahassee, Florida, on Tuesday, March 26, 2002
commencing at approximately 9:10 a.m.
Reported by:
SANDRA
L. NARGIZ
Registered
Professional Reporter
Registered Merit Reporter
Certified Realtime Reporter
ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FL 32301 (850)878-2221
2
APPEARANCES:
Representing
the Florida Cabinet:
JEB
BUSH
Governor
ROBERT
F. MILLIGAN
Comptroller
CHARLES H. BRONSON
Commissioner of Agriculture
BOB
BUTTERWORTH
Attorney General
CHARLIE
CRIST
Commissioner of Education
TOM
GALLAGHER
Treasurer
* * *
3
I N D E X
DEPARTMENT
OF EDUCATION
(Presented by Wayne V. Pierson)
ITEM ACTION PAGE
1 Approved
14
2 Deferred 14
3 Approved 12
4 Approved 13
5 Approved 13
DEPARTMENT
OF AGRICULTURE AND CONSUMER SERVICES
(Presented by Mark Berrigan)
ITEM
ACTION PAGE
1 Approved
14
2 Approved 15
BOARD
OF TRUSTEES
(Presented by David B. Struhs)
ITEM
ACTION PAGE
1 Approved 17
2 Deferred 17
3 Approved 17
4 Approved 10
5 Approved 26
STATE
BOARD OF ADMINISTRATION
(Presented by Coleman Stipanovich)
ITEM
ACTION PAGE
1 Approved
28
2 Approved 28
3 Report 28
4 Report 44
5 Report 40
6 Approved 52
CERTIFICATE OF REPORTER 53
4
1 P R O C E E D I N G S
2 (The
agenda items commenced at 9:20 a.m.)
3 GOVERNOR
BUSH: Department of Education.
4 TREASURER
GALLAGHER: Move it.
5 COMPTROLLER
MILLIGAN: Seconded.
6 GOVERNOR
BUSH: Moved and seconded.
7 Without
objection, it's approved.
8 Item
2.
9 MR.
PIERSON: Item 2 is a charter school
10 appeal
which is requesting deferral through
11 request
of the school board and the applicant.
12 TREASURER
GALLAGHER: Motion to defer to
13 April
23rd.
14 COMMISSIONER
BRONSON: Seconded.
15 GOVERNOR
BUSH: There is a motion to defer to
16 April
23rd, 2000 and a second. Without objection,
17 the
item is deferred.
18 MR.
PIERSON: Item 3 is a statewide emergency
19 shelter
plan for 2002. Secretary Seibert of the
20 Department
of Community Affairs is here to speak
21 on
it.
22 SECRETARY
SEIBERT: Good morning, Governor,
23 Members
of the Cabinet. This will be a short
24 report.
It is loaded with good news, but with a
25 warning.
5
1 The good news is that every couple of
2 years
I need to report to you about how we are
3 doing
on reducing the deficit of appropriate
4 hurricane
shelter spaces.
5 The
good news is that we have made
6 significant
strides in reducing that deficit.
7 We
have reduced it by approximately 30 percent
8 since
the last time I made this presentation.
9 We
have done that in large part because
10 this
Governor and this legislature have made it
11 a
priority. We have put in dollars for the
12 first
time each year starting in 1999, state
13 dollars,
to create more spaces, and have been
14 more
effective at utilizing federal dollars as
15 well.
16 You
do it two ways. One, you retrofit
17 existing
schools.
18 And
secondly, when you build new
19 facilities,
if it's appropriate, you make sure
20 that
they are weather resistant.
21 There
are some communities where they have
22 actually
been able to declare victory, where
23 there
are surpluses of shelter spaces. And
24 some
of those counties are particularly
25 important
because they are in the middle of the
6
1 state, and it's where people go to when they
2 leave
the coastal areas. Osceola, Lake,
3 Seminole
Counties are actually in surpluses.
4 About
a third of the spaces that we have
5 created
have been through new public schools
6 being
designed and constructed to meet the
7 higher
criteria.
8 Let
me give you the warning, Members of
9 the
Cabinet. The warning is that, as you know,
10 we
have high growth in coastal areas, so you
11 are
getting more people being placed in the
12 line
of danger.
13 Secondly,
that the retrofitting will
14 become
harder as time goes on. You retrofit
15 the
easiest places first; so that option will
16 become
less available.
17 And
lastly, we need to be more vigilante
18 on
the construction of new facilities.
19 The
construction of new educational
20 facilities
is in large part a local function.
21 And
an Auditor General's report recently has
22 shown
that even when they should have been
23 built
to the higher standards, a significant
24 number
were not.
25 That
requires more coordination than what
7
1 we have seen in the past and perhaps even some
2 of
the legislation that's recently passed
3 that's
going to highlight that coordination
4 between
local governments and school boards
5 will
help us add back to the list of things we
6 discuss.
7 So
in general, good news, but we need to
8 continue
to be aggressive.
9 TREASURER
GALLAGHER: Steve, I would like to
10 point
out that in 1993, in fact, that was right
11 after
Hurricane Andrew, the legislature passed a
12 statute
that mandated that the state not have a
13 shelter
deficit by 1998.
14 SECRETARY
SEIBERT: Right.
15 TREASURER
GALLAGHER: And the shelter deficit
16 increased
every single year from '93 to 2001.
17 This
is the first year that we have had a
18 decrease.
19 And
since 1997, when the criteria actually
20 became
effective, only 71 schools have been
21 built
with the design criteria, another 29 are
22 planned,
and only 34 counties have completed or
23 are
beginning to implement the design criteria
24 in
their construction.
25 So
we only have 34 counties that basically
8
1 have even started the process to build the
2 schools
in a design that meets the shelter
3 requirement.
4 So
I don't know what needs to be done, but
5 I
think it's a major concern.
6 When
you look at the counties that have
7 adequate
shelter space to accommodate a
8 category
four or five, you've got Brevard,
9 Flagler,
Gilchrist, Lake, Osceola, Seminole and
10 Union.
11 Now
you can imagine the problem most of
12 those
are going to have with a hurricane.
13 Other
than Franklin, you don't have -- and
14 Gulf
-- you don't really have anybody sitting
15 on
-- and Charlotte -- sitting really right on
16 the
water where you have a big problem.
17 So
there are some counties that have no
18 shelter
space whatsoever. And I think that's a
19 big
concern.
20 So
I just think that we need to put the
21 pressure
on. I think one of the problems is
22 you
have the Department of Community Affairs
23 over
here responsible for this area and a very
24 important
area, and you have the Department of
25 Education
over here sort of -- they work
9
1 together when the report gets given, but
2 otherwise,
it seems to me nobody is talking.
3 GOVERNOR
BUSH: I was going to say the Growth
4 Management
Bill that passed I think gives us a
5 golden
opportunity to put some teeth into this
6 process
of school construction being tied to
7 shelter
space, which is the state policy. But if
8 it's
not being done, then it's useless.
9 TREASURER
GALLAGHER: In the school board
10 side,
I will just tell you, that it does cost
11 between
2 to 4 percent more to build the school to
12 meet
the criteria. And the districts look at it
13 as
an unfunded mandate, and it probably is; and in
14 that
case, maybe there should be some kind of an
15 incentive.
16 GOVERNOR
BUSH: It's not an unfunded mandate
17 when
the state provides more money for school
18 construction
than any state in the country, is my
19 position.
20 TREASURER
GALLAGHER: I am with you. I am
21 just
telling you how they look at it. Somehow or
22 another,
maybe the criteria should be that they
23 must
build the schools that are compliant or get a
24 waiver
not to because they already have enough
25 shelters.
10
1 In other words, we are doing it the wrong
2 way.
Instead of telling them: Please do this,
3 we
ought to be saying: You do build them all
4 this
way.
5 Way
back in the '50s and '60s, all the
6 schools
were built as shelters. And all of a
7 sudden
it became cheaper not to, and they just
8 got
away from it.
9 I
think we need to go back to: You must
10 build
this as a shelter unless you have the
11 ability
to show that you have the required
12 shelters
in your county.
13 SECRETARY
SEIBERT: As the Governor said, may
14 I,
Governor?
15 We
have a great opportunity right now to
16 up
it a level. We have got coordination that
17 is
starting to happen, and let me say our
18 relationship
as an agency with the Department
19 of
Education has been wonderful.
20 We
have worked together on a number of
21 issues
in the last couple of years. So the
22 communication
I think is substantially
23 improved,
and this is obviously a focus of our
24 agency;
public safety is our most --
25 TREASURER
GALLAGHER: Steve, the issue isn't
11
1 with you and the Department of Education
2 unfortunately,
because schools get built by
3 districts.
And they are their own constitutional
4 body,
and they make their own decisions on how to
5 do
it, unless there is a tie in with the money.
6 And
that would be a -- then we turn into a
7 funding
manager, saying: Here's the funds,
8 build
it to this criteria until you get what
9 you
need.
10 And
that's really not something you have
11 to
do, but I think it is something that needs
12 to
be done through the department and the
13 legislature.
14 SECRETARY
SEIBERT: You also may see, though,
15 that
starting in 1999, the state got serious about
16 the
funding. And that's the most exciting thing.
17 And
that, I have heard the Governor speak on this.
18 TREASURER
GALLAGHER: We have seen it move
19 the
other way. So good things are happening, so I
20 don't
want to take away from the thing, it's just
21 it's
so frustrating to take so long.
22 GOVERNOR
BUSH: Another exciting bit of news,
23 Commission
Bronson will appreciate this, is that
24 we
had a groundbreaking for widening 192 in
25 Brevard
County, so we can get all of those people
12
1 out of Brevard over to Osceola where there is a
2 surplus.
3 There
is a lot to do as it relates to
4 evacuation
routes, making sure people's homes
5 are
secure, because you can't -- we have
6 learned
with our last major experience, when we
7 had
the largest evacuation in the history of
8 mankind
occur, it's difficult; I will be polite
9 about
it.
10 So
more people can prepare their own homes
11 and
then have shelter space in their own
12 communities
and then have good evacuation
13 routes
to the hinderlands where there may be
14 surpluses,
is the right strategy. And we are
15 getting
there. We had a huge problem we never
16 addressed,
and now we are working on it.
17 TREASURER
GALLAGHER: Move item 3.
18 GOVERNOR
BUSH: Is there a second?
19 GENERAL
MILLIGAN: Second.
20 GOVERNOR
BUSH: Moved and seconded. Without
21 objection,
it's approved. Thank you.
22 SECRETARY
SEIBERT: Thank you Governor and
23 Members.
24 MR.
PIERSON: Item 4 is a new rule
25 6A-1.09432,
Assessment of Limited English
13
1 Proficient Students. Bernardo Garcia is here if
2 you
have questions.
3 GOVERNOR
BUSH: Who is here?
4 MR.
PIERSON: Bernardo Garcia.
5 TREASURER
GALLAGHER: Move item 4.
6 GENERAL
MILLIGAN: Second.
7 GOVERNOR
BUSH: Moved and seconded. Without
8 objection,
it's approved.
9 MR.
PIERSON: Item 5 is an amended rule,
10 6A-1.099,
Cooperative Projects and Activities.
11 This
rule was amended after it was published, so
12 it
needs to be approved as amended.
13 TREASURER
GALLAGHER: Move item 5 as amended.
14 GENERAL
MILLIGAN: Second.
15 GOVERNOR
BUSH: There is a motion and a
16 second.
The item is approved as amended.
17
18
19
20
21
22
23
24
25
14
1 GOVERNOR BUSH: Department of Agriculture.
2 TREASURER
GALLAGHER: Governor, before they
3 start,
I noticed at the last meeting when I came
4 in
with my Fire Marshal badge on, Jeff Jones was
5 really
jealous about that badge I had.
6 And
so I don't want him to feel
7 uncomfortable;
if he would step over here a
8 minute.
9 Not
only am I giving you a badge, not only
10 are
you going to have a badge, but you get a
11 hat,
too.
12 MR.
JONES: Do I get a gun now, too?
13 TREASURER
GALLAGHER: We are not going that
14 far.
15 MR.
JONES: Thank you.
16 GOVERNOR
BUSH: Clearly you made his day.
17 ATTORNEY
GENERAL BUTTERWORTH: Governor,
18 Florida
is a full employment, as you can tell.
19 TREASURER
GALLAGHER: Where is the
20 photographer
when we need him?
21 GOVERNOR
BUSH: Item 1.
22 TREASURER
GALLAGHER: Motion on the minutes.
23 GOVERNOR
BUSH: Is there a second?
24 COMMISSIONER
BRONSON: Seconded.
25 GOVERNOR
BUSH: Moved and seconded. Without
15
1 objection, it's approved.
2 MR.
BERRIGAN: Item 2, consideration of
3 authorization
to issue a 10-year sovereignty
4 submerged
land aquaculture lease of 100 feet by
5 100
feet in the overlying water column. The
6 applicant
is Mr. Monty Dale. The lease is located
7 in
the Florida Keys, Monroe County.
8 TREASURER
GALLAGHER: For the huge sum of
9 $41.90
a year. God Bless America, we spent $4,000
10 just
processing this. I move it.
11 MR.
BERRIGAN: I understand.
12 GOVERNOR
BUSH: Pretty expensive on a per
13 acre
basis.
14 TREASURER
GALLAGHER: At a hundred feet, I am
15 sure
it is. I move item 2.
16 GOVERNOR
BUSH: There is a motion. Is there
17 a
second?
18 GENERAL
MILLIGAN: Seconded.
19 GOVERNOR
BUSH: Moved and seconded. Without
20 objection,
it's approved.
21 This
hopefully is going to turn out to be
22 a
good business for a lot of people who have
23 been
displaced in other areas and create a new
24 vibrant
industry for our state.
25 So
if we can lease it for free, I would be
16
1 happy to do it if these guys and gals make a
2 living
and live independently and be
3 successful.
4 MR.
BERRIGAN: Thank you.
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
17
1 GOVERNOR BUSH: Thank you. Board of
2 Trustees.
3 TREASURER
GALLAGHER: Motion on the minutes
4 for
February 12.
5 GENERAL
MILLIGAN: Seconded.
6 GOVERNOR
BUSH: Moved and seconded. Without
7 objection,
it's approved.
8 Item
2.
9 TREASURER
GALLAGHER: Deferring to April 9
10 2002.
Moved.
11 COMPTROLLER
MILLIGAN: Seconded.
12 GOVERNOR
BUSH: There is a motion to defer
13 and
seconded. Without objection, it's approved.
14 MR.
STRUHS: Item 3, we are recommending
15 approval,
it's an option agreement to acquire
16 almost
12 acres in the Bald Point Florida Forever
17 Project.
18 TREASURER
GALLAGHER: Motion.
19 GENERAL
MILLIGAN: Seconded.
20 GOVERNOR
BUSH: Moved and seconded. Without
21 objection,
it's approved.
22 MR.
STRUHS: Item 4, recommending approval of
23 an
acquisition of the Wekiva-Ocala Greenway
24 Florida
Forever project.
25 This
is a very important Florida back bear
18
1 habitat, and we are making some really great
2 progress
in building that connector between the
3 Ocala
National Forest in the north and Rock
4 Springs
in the south.
5 This
is 95 percent of the priced value.
6 GENERAL
MILLIGAN: Move.
7 GOVERNOR
BUSH: Move on number 4.
8 TREASURER
GALLAGHER: Seconded.
9 GOVERNOR
BUSH: Moved and seconded. Without
10 objection,
it's approved.
11 MR.
STRUHS: Item 5, recommending approval of
12 a
conservation easement. Like the black bear item
13 just
approved, this is dealing with panther
14 habitat.
15 You
made some great progress these last
16 several
months in building the panther habitat
17 in
southwest Florida. That continues down that
18 tract,
using the conservation easement.
19 ATTORNEY
GENERAL BUTTERWORTH: Motion on 5.
20 TREASURER
GALLAGHER: Seconded.
21 GOVERNOR
BUSH: Moved and seconded. Without
22 objection
--
23 GENERAL
MILLIGAN: I have a question,
24 Governor.
25 When
property or land is put under a
19
1 conservation easement, can that land be sold as
2 mitigation
land?
3 MR.
STRUHS: Well, if we put the conservation
4 easement
on it as a state, then obviously those
5 rights
belong to the state. What you may be
6 referring
to is when a private interest purchases
7 a
conservation easement.
8 GENERAL
MILLIGAN: Yes, of course.
9 MR.
STRUHS: In that case, it's usually done
10 as
part of the permit condition. It has a permit
11 condition
--
12 GENERAL
MILLIGAN: If this land is under a
13 conservation
easement and the owner chooses to
14 sell
a portion of it as mitigation to some private
15 contractor,
can that be done?
16 MR.
STRUHS: Yes.
17 GENERAL
MILLIGAN: It can be?
18 MR.
STRUHS: Yes, but not the conservation
19 easement
that would be held by the state. In this
20 specific
instance --
21 GENERAL
MILLIGAN: They could sell the land,
22 right?
They could sell the land to somebody and
23 the
conservation easement continues?
24 MR.
STRUHS: Yes.
25 GENERAL
MILLIGAN: Can they sell the land to
20
1 someone for mitigation reasons?
2 MR.
STRUHS: Yes.
3 COMMISSIONER
BRONSON: Governor, if I can --
4 the
thing that I want to -- and I think I see
5 where
the General is going here. If you have a
6 conservation
easement that the state has paid for,
7 you
cannot take that same piece of land and do --
8 I
hope not -- and sell as an independent right to
9 mitigate.
10 It
has to be another piece of land on the
11 same
piece of property. In other words, if I
12 have
got 3,000 acres and I put 2,000 in a
13 conservation
easement, that gives me a thousand
14 left
that I could put into mitigation but not
15 the
2,000 acres the state has a conservation
16 easement
on.
17 MR.
STRUHS: That's correct.
18 GENERAL
MILLIGAN: While you can sell it, you
19 cannot
sell it for mitigation purposes?
20 MR.
STRUHS: Right. I think maybe where I
21 was
confused is who "they" was. If "they" is the
22 state,
if it's a state conservation easement, it
23 wouldn't
be sold for mitigation.
24 If
it's a private land holding, another
25 private
interest could purchase it or purchase
21
1 a conservation easement on it for purposes of
2 mitigation;
but not something that is sold by
3 the
state.
4 GENERAL
MILLIGAN: Maybe we can sit down and
5 talk
about that sometime. That mitigation
6 business
continues to be an interesting evolution
7 here.
8 In
this case, we are getting a
9 conservation
easement maybe for all of it,
10 maybe
not, because of 340 acres, that may, in
11 fact,
be used for mitigation purposes. It's --
12 it's
kind of a -- mitigation can be a two-edge
13 sword
here if you are not careful.
14 TREASURER
GALLAGHER: I have a question.
15 What
we are saying here is that we are paying for
16 a
conservation easement?
17 MR.
STRUHS: Correct.
18 TREASURER
GALLAGHER: The owner still owns
19 the
land, but down the land, if he chooses to, he
20 can
use the land he owns that we have a
21 conservation
easement on as mitigation for some
22 other
property we would be working with?
23 MR.
STRUHS: No.
24 GENERAL
MILLIGAN: They are saying, no. They
25 are
finally say no.
22
1 TREASURER GALLAGHER: I thought we were
2 saying
yes.
3 GENERAL
MILLIGAN: Yes, initially, but now
4 they
are saying no.
5 TREASURER
GALLAGHER: How do we know that he
6 can't?
7 MR.
STRUHS: How do we know, what?
8 TREASURER
GALLAGHER: How do we know that he
9 can't
use this land that we have a conservation
10 easement
on as a mitigation trade?
11 MR.
STRUHS: Because the state, the Board of
12 Trustees,
would own the conservation easement.
13 Only
the Board of Trustees could determine if that
14 conservation
easement could be utilized for some
15 other
purpose.
16 TREASURER
GALLAGHER: You see, the idea is
17 that
he's got a conservation easement, he still
18 owns
the land, and we want to trade him for
19 something
-- he wants to trade us for something
20 and
uses that as the trade, is what I think
21 General
Milligan is talking about. I sort of
22 would
like the answer myself.
23 How
do we know that won't be traded, or is
24 it
something we might want to trade? If we do,
25 wouldn't
we want to deduct the amount we paid
23
1 already for the conservation easement?
2 He
is trying to do something back there.
3 MR.
STRUHS: If the state owns the
4 conservation
easement, it's a right that belongs
5 to
the state. So how that right might be utilized
6 in
the future would obviously rest with the owner
7 of
the easement, which would be the state, not
8 with
the owner of the underlying title.
9 TREASURER
GALLAGHER: But when we mitigate,
10 we
usually get title of land for title of land or
11 title
of land for availability use, some other
12 land
that may be under water. Right?
13 MR.
STRUHS: When we mitigate?
14 TREASURER
GALLAGHER: Yeah, when we mitigate
15 for
-- somebody wants to develop an area, and we
16 say
no, it's got swamp, we are not going to let
17 you
do it unless you give us a trade for it,
18 right?
19 MR.
STRUHS: Right, but we are not doing the
20 mitigation.
The private interest is doing the
21 mitigation.
22 TREASURER
GALLAGHER: Exactly. So he takes
23 the
land we have a conservation easement on and
24 says:
I will give you that land in trade for
25 being
able to develop this. What stops that?
24
1 MR. STRUHS: I think, if I understand the
2 question
correctly, if the state owns a
3 conservation
easement on a parcel, and then in the
4 future
some other private interest wants to do
5 some
type of development on that same parcel --
6 TREASURER
GALLAGHER: Not development.
7 MR.
STRUHS: A different parcel?
8 TREASURER
GALLAGHER: Right. And they are
9 willing,
in order to let us to develop the other
10 parcel,
the guy that owns this land that has a
11 conservation
easement on it donates the land to
12 us.
13 MR.
STRUHS: He has the underlying title?
14 TREASURER
GALLAGHER: Right.
15 MR.
STRUHS: I think at that point, the state
16 would
want to exercise its judgment as to whether
17 or
not accepting the underlying simple fee title
18 to
land to which they already have a conservation
19 easement
would have any benefit to the state or
20 whether
it should count towards mitigation. That
21 would
be a future land use decision for a future
22 government,
future administration.
23 TREASURER
GALLAGHER: One of the problems
24 that
we have is we could easily be making that
25 trade
and not even realize it has a conservation
25
1 easement on it.
2 MR.
STRUHS: I think that's highly unlikely
3 because
all the conservation easements are
4 recorded
as part of the title.
5 TREASURER
GALLAGHER: Okay.
6 GENERAL
MILLIGAN: I don't know. It's a
7 little
squirrly, I think. I would just like to
8 find
out more about it. We don't need to beat a
9 dead
horse here.
10 We
already moved this and seconded it, and
11 I
don't have any problem with that.
12 But
I sure would like to have a better --
13 I
would like to be more comfortable with the
14 idea
that when we put -- when we purchase an
15 easement,
that the land that is involved, which
16 is
still owned by the property owner, cannot be
17 used
to provide some sort of mitigation service
18 to
another private party by selling him that
19 land
as mitigation land.
20 MR.
STRUHS: I understand.
21 GENERAL
MILLIGAN: I would just like to be
22 comfortable
with that. And if necessary, maybe we
23 need
to put that in the contract that we --
24 MR.
STRUHS: In the easement itself.
25 TREASURER
GALLAGHER: In the easement, we can
26
1 put that this may not -- the property may not be
2 used
for mitigation with a state or local
3 government.
That will work. And then I think I
4 would
be comfortable.
5 GENERAL
MILLIGAN: I would be comfortable,
6 too.
7 Again,
let's not hold this up. I am not
8 trying
to do anything with this. I don't think
9 we
need to --
10 TREASURER
GALLAGHER: Does the easement
11 seller
have a problem with adding that to it?
12 MR.
STRUHS: The easement seller is here, and
13 we
can put that question to the seller.
14 GOVERNOR
BUSH: Where is the easement seller?
15 MR.
STRUHS: Represented by Dean Sonders --
16 Mr.
Broderick.
17 TREASURER
GALLAGHER: He has no problem with
18 that.
There you have it.
19 Thank
you very much.
20 I
will move the item with the additional
21 easement
language.
22 GENERAL
MILLIGAN: Seconded.
23 GOVERNOR
BUSH: Moved and seconded. Without
24 objection,
the item as modified, soon to be
25 modified,
passes.
27
1 MR. STRUHS: On the subject of conservation
2 easements
generally, I will use this opportunity
3 as
a quick advertisement.
4 In
-- is it June or July -- June 17th, 18
5 and
19 we are having a fairly major national
6 symposium
on all these particulars in terms of
7 how
to do good conservation easements,
8 sponsoring
it right here in Florida.
9 (Commissioner
Crist arrives.)
10 MR.
STRUHS: We will hope to see, if not
11 yourselves,
at least your cabinet aides being able
12 to
attend that conference. Thank you.
13 GOVERNOR
BUSH: Thank you, David.
14
15
16
17
18
19
20
21
22
23
24
25
28
1 GOVERNOR BUSH: State Board of
2 Administration.
Commissioner Crist, welcome.
3 Cabinet
is over. Perfect timing.
4 TREASURER
GALLAGHER: I move the minutes for
5 February
27 and March 12.
6 GOVERNOR
BUSH: There is a motion on the
7 minutes.
General?
8 COMPTROLLER
MILLIGAN: Seconded.
9 GOVERNOR
BUSH: Thank you. Moved and
10 seconded.
Without objection, it's approved.
11 Item
2.
12 MR.
STIPANOVICH: Good morning, members. Tom
13 Herndon
asked me to pinch hit for him today.
14 As
you may recall, at one of the previous
15 meetings
he mentioned that he would be meeting
16 with
the chairman of the SEC, Harvey Pitt, and
17 the
Council for Institutional Investors. That
18 got
postponed until this week, so he is in
19 Washington,
D.C., working on some corporate
20 Governor's
issues post Enron.
21 To
digress a moment, Governor, the minutes
22 for
April 1, there were a couple of items on
23 there
that Commissioner Gallagher, for example,
24 had
brought up, increasing the capacity limit
25 in
the area of Florida Hurricane Capacity Fund
29
1 Coverage.
2 And
Mr. Herndon did write a letter to both
3 the
Senate president and the House and got a
4 luke
warm reception.
5 However,
in their bill, they did -- in the
6 Citizens'
Property Insurance Corporation bill,
7 they
did add some language that would give the
8 consultant
the ability to factor in at some
9 point
in time the ability to raise more cash
10 that
would have to be subject to the approval
11 of
the board.
12 And
the final thing for follow up was
13 General
Butterworth had made a comment about
14 the
possibility of increasing FRS service
15 actuarial
percentages for employees who do not
16 receive
a raise in a given year.
17 And
Mr. Herndon got in touch with Erin
18 Sjostrom,
the director of DOR, and she has her
19 people
looking into it.
20 But
we heard recently from your office
21 that
with what came out -- and of course, the
22 budget
is not approved yet -- but with what
23 came
out of the House and Senate in terms of
24 possible
codes, that may not be as much an
25 issue
anymore.
30
1 So, that's the follow up on the 27th
2 agenda.
3 Item
2, as you know, we met with Alliance
4 on
February -- on March 7th, and then on the
5 12th
we had our good cause item where we met
6 about
Alliance to get an update. And we left
7 that
meeting with the trustees' decision not to
8 take
legal action until the Attorney General's
9 office
had concluded.
10 But
we wanted to continue to pursue the
11 law
firms in terms of who would represent us
12 should
we decide to sue.
13 Governor,
the Governor had in particular
14 two
requests. And in response to those
15 requests,
pursuant to your direction, we had
16 requested
and imposed a time line on Alliance
17 to
respond to us as a result of that meeting to
18 give
us some information.
19 They
have failed to do that with a
20 deadline
we gave them of March 20th. And we
21 are
not real optimistic that we'll be getting
22 anymore
information from them, Governor.
23 The
final item was to move forward with a
24 recommendation
on the selection of a law firm
25 to
assist us in securing recoupment of our
31
1 losses from Alliance.
2 On
March 13th, Mr. Herndon forwarded to
3 you
our recommendation along with an
4 explanation
of the process that was utilized to
5 formulate
that recommendation.
6 GOVERNOR
BUSH: Coleman, can you explain the
7 process?
8 MR.
STIPANOVICH: Yes. To briefly summarize
9 it,
the general counsel had discussion with
10 numerous
firms about their qualifications and
11 experience
and strategy, the legal strategy and
12 theories
they would use in pursuing litigation
13 against
Alliance.
14 As
a result of those conversations, the
15 decision
was to invite four teams of law firms
16 to
give presentations and that consisted of
17 eight
different law firms.
18 The
law firms that came and gave
19 presentations,
Governor, were the Tom Grady and
20 Grady
and Associates; and Johnson, Blakely,
21 Pope
law firm; the Tew Cardnas law firm, Gray
22 Harris
law firm and Beggs Lane law firm. So
23 those
were the ones that came and conducted
24 interviews.
25 GOVERNOR
BUSH: What was the fourth one?
32
1 MR. STIPANOVICH: The fourth one was Beggs
2 and
Lane, I believe it's Colton, Mingstein,
3 Hasfield
and Toll and Levin, et al.
4 GOVERNOR
BUSH: Levin law firm.
5 MR.
STIPANOVICH: The key personnel
6 participated
in these interviews, the executive
7 director,
myself, the chief of domestic equities
8 and
a number of other people, including the
9 general
counsel.
10 Also,
there were representatives from
11 General
Butterworth's office that participated
12 in
all the interviews.
13 All
the firms were exceptionally
14 qualified;
in particular the first three firms
15 that
I just mentioned were very qualified.
16 There
was some discussion in terms of strengths
17 and
weaknesses of each law firm, in terms of
18 the
legal theories that they laid out, and so
19 on,
and so forth.
20 So
it was a tough decision, but we did
21 come
up with a recommendation that's in your
22 packet
for the Gray and Harris -- Grady and
23 Associates,
Johnson, Blakely, Pope law firm,
24 but
again --
25 GOVERNOR
BUSH: The Gray and -- say that
33
1 again.
2 MR.
STIPANOVICH: It's the Grady and
3 Associates,
Johnson, Blakely, Pope law firm.
4 GOVERNOR
BUSH: I thought he said Gray
5 Harris.
6 MR.
STIPANOVICH: And again, this is -- there
7 are
also the Tew Cardinas law firm and Gray Harris
8 law
firm gave very good presentations, and were a
9 very
close second and third, but if we had to come
10 forth
with a recommendation, that's where we are
11 now,
Governor. But again, all three law firms
12 really
did a good job and outstanding and there is
13 pros
and cons for each.
14 For
example, the Gray Harris law firm has
15 a
local presence in the Panhandle, and that's
16 being
factored in. So that's where we are on
17 the
recommendation.
18 GOVERNOR
BUSH: General?
19 GENERAL
MILLIGAN: I just might comment that
20 we
do, in the securities business, do a lot of
21 work
with the Grady law firm particularly and have
22 found
them to be really top drawer in terms of
23 securities
business. And that's, of course, what
24 this
is all about.
25 We
do a little bit with the Burns people
34
1 in Tampa, but not as much. And they certainly
2 have
a very strong reputation in the securities
3 field.
4 GOVERNOR
BUSH: One of the -- first of all, I
5 am
pleased that we are going to hire a firm
6 because
that -- while that doesn't mean we are
7 necessarily
going to be engaged in litigation,
8 given
the report that Alliance has not been
9 forthcoming
with information as promised, it kind
10 of
sets the stage for it, I would assume.
11 That
decision I guess will be made once
12 the
law firm is hired, the strategy I guess is
13 to
get a recommendation on how to proceed.
14 There
is always talk about the north --
15 this
district, this court needing to have some
16 kind
of local experience. I am not -- I don't
17 know
if that's true or not. How did you factor
18 that
in?
19 MR.
STIPANOVICH: Well, there was no doubt
20 that
one of the things that should work to our
21 advantage
-- and I am certainly not a lawyer, but
22 is
-- in our contract it's required that they try
23 this
in the Panhandle. I forget the circuit,
24 Governor,
pardon me, but it would be one of three
25 courts
here in the Panhandle.
35
1 So we think, of course -- and that's one
2 reason
we have that in our contract -- that
3 should
work to our advantage versus say trying
4 it
in New York City.
5 So
that, again, in terms of some
6 familiarity
with -- I will say this; that the
7 Grady
and Associates and Johnson, Blakely, Pope
8 law
firm has engaged someone locally that has a
9 good
presence and practice here locally that
10 has
those kind of relationships and knows a lot
11 of
those folks that work in the courts and that
12 kind
of thing. So that aids them a little bit
13 in
that one consideration.
14 But,
you know, where we are now is we are
15 going
to propose and start working with them on
16 a
compensation structure. We have been working
17 very
closely with the Attorney General's office
18 and
he has his views on that and Commissioner
19 Gallagher
has made his remarks at the last
20 cabinet
meeting about not paying these law
21 firms
for really doing nothing, should we be
22 able
to work something out on a fairly short
23 time
line and without a whole lot of effort.
24 So
we have a long way to go in terms of
25 working
out a compensation structure. And our
36
1 compensation structure is going to be very
2 aggressive.
It's not going to be what these
3 law
firms are used to seeing.
4 So
if we were to go with the number 1
5 choice,
if that didn't work out, we are
6 prepared
to move to number 2 and number 3 in
7 compensation
discussions and how we would
8 structure
this; because we are not interested
9 in
paying legal fees.
10 But
at same time, Governor, we don't want
11 to
be a penny wise and pound foolish. This is
12 not
a commodity. Basically, possibly -- there
13 were
some suggestions we bid it out and that's
14 an
alternative.
15 But
again, dealing with law firms and
16 looking
at their experience and qualifications,
17 there
is more to it than just the bottom line
18 in
terms of what we would ask them to.
19 GOVERNOR
BUSH: General Butterworth, you want
20 to
make any comments?
21 GENERAL
BUTTERWORTH: Thank you, Governor.
22 As
Mr. Stipanovich has stated, we are
23 working
hopefully with the agency insofar as
24 coming
to a contract that would be appropriate.
25 I
think the last thing anybody here wants to do
37
1 is pay somebody 25 percent of what the Attorney
2 General's
office might be able to come up with.
3 So
I think the law firms understand that.
4 So
we have to basically blend the contracts.
5 So,
as long as we can work with you on
6 coming
up with a contract, we feel we will come
7 up
with something that's very reasonable.
8 All
the law firms, you are absolutely
9 correct,
they are all very, very well qualified
10 and
have an excellent working relationship with
11 the
state.
12 GOVERNOR
BUSH: Commissioner?
13 TREASURER
GALLAGHER: Well, I fully agree.
14 When
I look at the first three -- and really, I
15 look
at it as four because I look at Grady as top
16 notch,
Guy Burns, who obviously is going to be the
17 lead
lawyer for Johnson Blakely, top notch; I look
18 at
Tom Tew, top notch; I look at your past deputy,
19 top
notch and having a good knowledge of this
20 district.
21 And
because -- you get a whole firm, but I
22 think
naming those four people, you got a team
23 that
I would like to have known that that's the
24 team
we had, because they all are strong.
25 And
those -- especially, my knowledge of
38
1 those individuals.
2 And
so, I would like to see us take the
3 advantage
of what each one of those individuals
4 brings
to the table. They are not all in the
5 same
law firm, unfortunately, but that's okay,
6 too;
you know they are all pretty strong egos.
7 GENERAL
MILLIGAN: Wouldn't that be a useful
8 thing
to allow to evolve and allow the SBA to move
9 forward
with their negotiations and see how that
10 evolves?
11 And
then I think Coleman has been very
12 clear
that this is a major negotiation here,
13 and
if we don't get what we need and the right
14 combination
of the right people, then we'll
15 move
someplace else, which maybe will expand
16 the
combination.
17 I
think what they are recommending right
18 now
I think is the place to start and let them
19 begin
the work, with the Attorney General's
20 people
participating. I think we can get the
21 right
mix of people and the right contract.
22 TREASURER
GALLAGHER: I said what I think,
23 and
this was for discussion. I know you are just
24 beginning
to work with them. The one thing all of
25 us
don't want to do is pay a percentage on what
39
1 the Attorney General's office gets as an offer.
2 GENERAL
MILLIGAN: We don't want to preclude
3 any
options for the SBA to pursue if they think
4 they
need to go down a different track. I think
5 at
this stage, I would approve -- I move approval
6 of
them negotiating towards a contract with Grady
7 and
Burns as recommended.
8 TREASURER
GALLAGHER: I would like to leave
9 it
even more open than that; that they can talk to
10 all
of them and see if there is --
11 GENERAL
MILLIGAN: I think he said they are
12 going
to talk to all of them. Didn't I understand
13 you
to say that?
14 MR.
STIPANOVICH: We certainly have talked to
15 all
of them, and we can continue to do that to
16 follow
up both on, General Milligan, your question
17 and
Commissioner Gallagher.
18 One
thing we did look at, is kind of
19 intangibles,
that is who are the principals
20 that
would be involved in trying this case. As
21 we
know, that would be very important, and what
22 is
their caseload. ?
23 Is
this something -- this is a big case,
24 but
is there something -- do they have other
25 things
on their plate? What would be the depth
40
1 of their resources?
2 So
these are things we have explored to
3 some
extent. But we could continue to look
4 into
those type of variables, but we have done
5 a
considerable amount of that already.
6 GOVERNOR
BUSH: I don't think you are guys
7 are
saying the same thing.
8 GENERAL
MILLIGAN: Not exactly, but we are
9 not
terribly far off. I certainly would not
10 preclude
the flexibility of the SBA to talk to
11 other
--
12 TREASURER
GALLAGHER: This was for
13 discussion.
If we don't have a motion, they sort
14 of
an idea of where we are all coming from and let
15 them
move on.
16 MR.
STIPANOVICH: We would be happy to,
17 Governor,
to continue discussions and see --
18 GENERAL
MILLIGAN: Let it roll right now.
19 MR.
STIPANOVICH: But this is where we are.
20 GENERAL
MILLIGAN: That would probably help
21 General
Butterworth in his negotiations.
22 GOVERNOR
BUSH: I just urge a little bit
23 of
-- there is a time sensitivity here in the
24 sense
that I thought for a while that Alliance is
25 not
going to be particularly cooperative, and they
41
1 haven't been. And that gives me concern.
2 I
just think that if we can move with a
3 recommendation
on a law firm or -- I think you
4 all
did your due diligence, you could have come
5 out
with a different result of firms. They all
6 are
excellent firms. There is a real interest
7 in
this, which is a good sign, I think.
8 You
need to negotiate the price for the
9 service;
and whether we need to look at a
10 combination
or not, I would keep that open.
11 But
I would pursue this quickly. I don't think
12 there
needs to be -- the next meeting I hope we
13 have
actually an recommendation with something
14 more
than just saying: Can we now pursue it?
15 TREASURER
GALLAGHER: This was on here for
16 discussion,
so that's what we are doing. We are
17 talking
contingency only, right?
18 MR.
STIPANOVICH: Yes, we are. There has
19 been
discussion, I think the folks in the
20 General's
office we have been talking to has
21 articulated
very eloquently the idea of an hourly
22 fee,
some phase, at least in terms of leading up
23 to
making some determination, if there would be
24 some
early settlement. And in that way you might
25 save
a lot of money on an hourly fee.
42
1 I will tell you in the compensation
2 structure
that we have, it has various
3 thresholds
and it's really base on a time line
4 as
to when this thing might settle and the
5 dollars.
6 So
it's kind of an equation that has a
7 couple
parts to it that we are very aggressive
8 on
the front end in terms of what the law firms
9 would
get. And it's miniscule compared to what
10 they
are used to getting. That's going to be
11 our
proposal, and we will be making that.
12 GOVERNOR
BUSH: When do you start in earnest
13 trying
to negotiate the fee schedule?
14 MR.
STIPANOVICH: When we leave this room
15 today.
16 GOVERNOR
BUSH: That's good. That's the best
17 answer
I could think of.
18 MR.
STIPANOVICH: We have our marching
19 orders.
We want to get the finger on the trigger
20 so
whenever you all are ready to give us the order
21 to
fire, we'll be on the firing line.
22 GOVERNOR
BUSH: I am sure if I was
23 negotiating
with you, I am sure that would be --
24 TREASURER
GALLAGHER: I think you gave us
25 item
3 report or not?
43
1 MR. STIPANOVICH: Yes.
2 Very
brief, we had four bills this year
3 and
we actually turned out doing very well. We
4 ended
up with no amendments and our bills
5 passed.
We had three bills that passed in the
6 House
and one bill that passed in the Senate.
7 The
House Bill 807, defined contribution
8 plan,
sponsored by Representative Fasano
9 passed,
and there are a number of elements of
10 that
which are in your package, but the
11 highlights
is that it established a disability
12 benefits
program under the DC plan and updates
13 contribution
rates for the FLS/DC plan
14 disability
program.
15 Senate
Bill 2134, the clearing trust fund,
16 sponsored
by Senator Sanderson was, of course,
17 something
that we needed to have done. And it
18 creates
the FRS contributions clearing trust
19 fund
to be administered by DMS.
20 The
House Bill 1973, retirement
21 contribution
rates, was sponsored by the Fiscal
22 Responsibility
Council and Senator Lacasa, and
23 this,
in essence, revises the contribution
24 rates
and introduces a blended rate for DB and
25 DC
contributions.
44
1 Finally, as you know, the important bill,
2 Bill
935 in the House, the public records
3 exemption
bill, passed which creates a public
4 records
exemption to maintain the
5 confidentiality
of all participates and their
6 account
activities.
7 GOVERNOR
BUSH: Thank you. And item 4.
8 TREASURER
GALLAGHER: I think he just did 4.
9 GOVERNOR
BUSH: I thought that was 3.
10 MR.
STIPANOVICH: That would be item 4, the
11 implementation
status update, Governor, I believe.
12 We
have, since we met last, we have mailed
13 the
158,000 packets to the state employees.
14 That's
completed.
15 We
actually started on March 18th the
16 workshops
that would follow up and which they
17 actually
make their investment decisions as an
18 outcome
of the first three months, having to do
19 with
the outreach and making the choice
20 decision
which is what the packets address.
21 And
that has gone fairly well; some
22 glitches,
but we are working on that. So each
23 phase
thereafter should only get better.
24 We
have completed the asset transition
25 broker
contract, and it has been sent to the
45
1 vendor. And that's really the only outstanding
2 contract
we have in terms of the noninvestment
3 vendors.
4 We
still are working on finalization of
5 the
unbundled/bundled contracts. We don't see
6 any
problems on the unbundled side. We
7 actually
have already signed a couple
8 contracts,
we have several more that are in
9 that
we'll be signing.
10 And
on the bundled providers side, we just
11 have
some hang ups on the stable value funds,
12 very
specifically. And what we have found out,
13 to
our surprise, is that the concern
14 Commissioner
Gallagher's expressed about
15 illiquidity,
we were told that there was not
16 going
to be an issue and we found out there is
17 some
illiquidity issues in these products.
18 So
at the same time, I understand the
19 legislature
allows us to have those illiquidity
20 issues,
if there is some derived benefit that
21 can
offset that illiquidity.
22 So
we are being open minded, Governor, in
23 trying
to work with these folks and see if we
24 can't
work this out. But that's where we are.
25 And
at some point in time we may be coming back
46
1 to you with a recommendation.
2 TREASURER
GALLAGHER: We have a stable value
3 fund
that we are doing at the -- that's sort of a
4 generic
one, right?
5 MR.
STIPANOVICH: Yes.
6 TREASURER
GALLAGHER: Is it one or two?
7 MR.
STIPANOVICH: Actually, I think --
8 TREASURER
GALLAGHER: Combine it to be
9 whatever
you want.
10 MR.
STIPANOVICH: Yes, each of the providers
11 I
believe all have a stable value fund, so there
12 is
some redundancy there.
13 And
again, a stable value fund -- and I
14 don't
want to characterize it literally as
15 such,
but you know, it's much like a money
16 market
fund. So this is not rocket science.
17 If
liquidity is a primary objective, there
18 is
other ways that we can get around that. But
19 we
did approve a number of stable value funds
20 with
the providers and that seems to be the
21 hang
up right now.
22 TREASURER
GALLAGHER: We only have two that
23 have
the access problem, right?
24 MR.
STIPANOVICH: Commissioner, I am not
25 exact
surely. I haven't been involved in that
47
1 kind that of detail of those discussions, but I
2 think
there is actually several. I mean three.
3 TREASURER
GALLAGHER: Three out of five?
4 MR.
STIPANOVICH: Yes. I could be off one,
5 but
I think it's at least three, could be four.
6 They
are all very similar. Some of the
7 liquidities
literally are measured in days, if not
8 weeks,
and others may like months. I don't know
9 if
we are into the years, but that would certainly
10 be
problematic.
11 TREASURER
GALLAGHER: Keep working, see how
12 you
do.
13 GOVERNOR
BUSH: Any other questions?
14 GENERAL
MILLIGAN: Just a quick question.
15 Financial
engines, are they on schedule to be up
16 and
fully functional?
17 MR.
STIPANOVICH: General, they are. As you
18 know,
you experienced a situation where there is a
19 glitch
dealing with folks a certain age and over.
20 I
won't mention ages.
21 GENERAL
MILLIGAN: That's all right. That is
22 quite
all right, doesn't bother me.
23 MR.
STIPANOVICH: But 65 and over, so we are
24 fixing
that glitch. But there are a couple
25 glitches,
but they are not something we think are
48
1 insurmountable.
2 GOVERNOR
BUSH: How did you find out that,
3 General?
4 GENERAL
MILLIGAN: I know somebody 65 and
5 they
tried it out and fell on its rear end.
6 MR.
STIPANOVICH: Finally, just to give
7 you
--
8 GENERAL
MILLIGAN: It's a good test for the
9 senior
citizens.
10 GOVERNOR
BUSH: We better get it fixed. I
11 don't
know anybody in this room over 65.
12 TREASURER
GALLAGHER: I don't know anybody
13 over
65, so I don't know who talk to.
14 GOVERNOR
BUSH: Don't say that in Florida.
15 MR.
STIPANOVICH: We already sent out notices
16 and
notified these people of the glitch, that it
17 will
be fixed. We posted something on the
18 website;
so they are informed we're on top of that
19 and
we'll be trying to correct the problem.
20 Finally,
let me make a comment -- and
21 please
keep in mind this is a very, very small
22 sample,
but we have had some folks that have
23 made
some elections. And actually I think the
24 total
is about 2300 roughly. And just to kind
25 of
give you a broad break down, it looks like
49
1 now we are running at about 10 percent that are
2 choosing
an investment plan.
3 When
we started out this process, we
4 didn't
know how many that was going to be,
5 whether
it was going to be 10 percent or
6 40
percent.
7 But
again, this is a very small sample.
8 It's
state employees. It may not be the same
9 kind
of profile of the next two groups.
10 And
we also think that, as has been
11 pointed
out to us, when you get that choice
12 paper
that basically says -- some of this is so
13 clear,
back and white, it's DB for you.
14 So
we think a lot of that is where it's
15 abundantly
clear, there is no second guessing,
16 it's
DB, and those folks have gone ahead and
17 are
moving into that system. And the other
18 ones
are going to have to think about the more
19 difficult
choices.
20 So
that may -- 10 percent may be the low
21 end;
I just kind of wanted to update you on
22 that.
23 TREASURER
GALLAGHER: If you would, as you
24 get
people that start moving in, I think it's very
25 important
that you collect demographics on them:
50
1 Age, time in the system, all those kinds of
2 things,
so we see who is attracted to it and who
3 is
not. And I think those kinds of things would
4 be
very worthwhile to collect, or you may be doing
5 that.
6 MR.
STIPANOVICH: We are doing that.
7 Actually,
the IC mentioned that at the meeting we
8 had
a few days ago. So we are going to try to get
9 as
much of that information as we can begin to
10 make
some early projections about better
11 identifying
what the demographics are and profile
12 of
the folks choosing the investment plan.
13 GOVERNOR
BUSH: Any other comments?
14 Coleman,
for the next SBA meeting, if you
15 all
could give us a report on the work that you
16 are
doing on early warning detection
17 activities,
if there is anything that we can do
18 looking
at best practices across the state,
19 across
the country to, given the volatility of
20 some
of these stocks now, that create serious
21 ups,
mostly downs, in some of these companies;
22 there
must be a way that we can at least have a
23 system
where we red flag volatility in the
24 market
so that we can address these issues with
25 our
investment managers without actually making
51
1 the investment decisions.
2 It
seems like this is something that's
3 going
to be with us for a while, as it relates
4 to
some of these accounting issues or just the
5 general
volatility of the marketplace
6 irrespective
of accounting.
7 I
know you all are looking at that and it
8 would
be great to get a report on that.
9 MR.
STIPANOVICH: Yes, we are. Governor and
10 members,
you can be assured that we have been
11 working
on that nonstop.
12 And
we had an IC meeting, actually it was
13 the
longest IC meeting I think we had and I
14 have
been around the IC for a lot of years, and
15 I
think it was the longest meeting that we had
16 in
the history of the IC. It ended close to
17 5
o'clock in the afternoon, and that was the
18 main
topic.
19 So
we are working with our consultants and
20 our
staff, and we are trying to be very
21 thoughtful
in looking at this on a strategic
22 basis
and a tactical basis. And we'll
23 certainly
have something for you.
24 GOVERNOR
BUSH: All right. Item 6.
25 MR.
STIPANOVICH: Yes, sir. Item 6, well, I
52
1 think we have the report by the executive
2 director,
Governor; that's simply the normal
3 report
you get and fund activity analysis.
4 Commissioner
Gallagher's appointment of
5 Michael
Savaldy to the Florida Hurricane
6 Catastrophe
Advisory Council that you had the
7 back
up material in your packet and his resume,
8 which
you would need to take action on that.
9 TREASURER
GALLAGHER: Motion on 6.
10 COMPTROLLER
MILLIGAN: Seconded.
11 GOVERNOR
BUSH: Moved and seconded. Without
12 objection,
it's approved.
13 If
the cabinet members could stay, we are
14 going
to take a picture again with Secretary
15 Harris
here for the South Com resolution.
16 (The
proceedings concluded at 10:15 a.m.)
17
18
19
20
21
22
23
24
25
53
1
2 CERTIFICATE
OF REPORTER
3
4
5
6 STATE
OF FLORIDA )
7 COUNTY
OF LEON )
8
9 I,
SANDRA L. NARGIZ, RMR, CRR, certify that I
10 was
authorized to and did stenographically report the
11 proceedings
herein, and that the transcript is a true
12 and
complete record of my stenographic notes.
13 I
further certify that I am not a relative,
14 employee,
attorney or counsel of any of the parties,
15 nor
am I a relative or employee of any of the parties'
16 attorney
or counsel connected with the action, nor am I
17 financially
interested in the action.
18 WITNESS
my hand and official seal this 2nd
19 day
of April, 2002.
20
21
22 ______________________________
23 SANDRA
L. NARGIZ, RMR, CRR
100 SALEM COURT
24 TALLAHASSEE, FL 32301
850-878-2221
25
Cabinet
Affairs
