FINANCIAL SERVICES COMMISSION/OFFICE OF INSURANCE
REGULATION
DEPARTMENT OF REVENUE
BOARD OF TRUSTEES/DEPT. OF AGRICULTURE & CONSUMER SVCS
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 the 23rd day of November, 2004, commencing at
approximately
9:25 a.m.
Reported by:
KRISTEN L.
BENTLEY
Certified Court Reporter
ACCURATE STENOTYPE REPORTERS,
INC.
2894 REMINGTON GREEN
LANE
TALLAHASSEE, FL 32308 (850)878-2221
.
2
APPEARANCES:
Representing the Florida Cabinet:
JEB
BUSH
Governor
CHARLES H.
BRONSON
Commissioner of Agriculture
CHARLIE
CRIST
Attorney General
TOM
GALLAGHER
Chief Financial Officer
* * *
ACCURATE STENOTYPE REPORTERS, INC.
.
3
I N D E X
FINANCIAL SERVICES COMMISSION/OFFICE OF INSURANCE
REGULATION
(Presented by Kevin McCarty)
ITEM
ACTION
PAGE
1
Discussion
Only
2
Approved
10
DEPARTMENT OF
REVENUE
(Presented by James Zingale)
ITEM
ACTION
PAGE
1
Approved
11
2
Approved
12
BOARD OF TRUSTEES/DEPT OF AGRICULTURE & CONSUMER
SERVICES
(Presented by Sherman Wilhelm)
ITEM
ACTION
PAGE
1
Approved
13
2
Approved
21
3
Approved
27
STATE BOARD OF
ADMINISTRATION
(Presented by Coleman Stipanovich)
ITEM
ACTION
PAGE
1
Approved
28
2.1
Information
only
2.2
Deferred
2.3
Deferred
3
Approved
68
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
4
1
PROCEEDINGS
2
THE GOVERNOR: The next cabinet meeting will be
3 Tuesday, December
7th. Financial Services Commission,
4 Office of Insurance
Regulation. Kevin, how you doing?
5
MR. McCARTY: Good morning, Governor, members of the
6 commission. I'd
like to take a moment to highlight some
7 of the information on
our Hurricane Season Report 2004
8 dated November
18th. First of all for total number of
9 claims, we have 1 .5
million claims, 20.65 billion in
10 gross losses.
That represents both commercial and
11 residential. Of
those losses, 443,000 of those represent
12 losses from Hurricane
Charley. About 7 .6 billion.
13 77 percent of those
claims have been closed.
14
Closed claims mean the claim has been settled and
15 payment has been
received and no further payments are
16 expected in the
future. Hurricane Frances represents
17 495,000 claims or 4.7
billion in gross losses. 62 percent
18 of those claims have
been closed.
19
THE GOVERNOR: I'm sorry, what was the Charley
20 number,
percentagewise?
21
MR. McCARTY: Charley number was 443,000 --
22
THE GOVERNOR: Percentagewise, I mean.
23
MR. McCARTY: 77 percent. That's average of all
24 companies
reporting.
25
THE GOVERNOR: Okay.
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
5
1
MR. McCARTY: Hurricane Ivan, 191 claims reported
2 representing 4.3
billion in gross losses, 56 percent of
3 which claims are
currently closed. And Hurricane Jeanne,
4 364,000 claims
reported representing 4.1 billion in gross
5 losses with 56 percent
of the claims currently closed.
6
THE GOVERNOR: Kevin, what percentage do you think of
7 the claims have been
filed that you anticipate? Because
8 at one point we were
talking maybe 2.2 million claims.
9
CFO GALLAGHER: About three quarters have been filed.
10 There's another
quarter to go. But we've got about a
11 million and five.
12
THE GOVERNOR: So we're still on track to the over
13 2 million number?
14
CFO GALLAGHER: Should be 2 million.
15
MR. McCARTY: That's correct.
16
CFO GALLAGHER: 2,100,000.
17
THE GOVERNOR: And what do you anticipate the
18 estimated gross loss
to be based on --
19
MR. McCARTY: Gross loss we estimate to be 20.6.
20
THE GOVERNOR: That is the total.
21
MR. McCARTY: That is the total.
22
THE GOVERNOR: I'm sorry. Okay.
23
MR. McCARTY: And that coincides with information we
24 received from third
parties as well. It's a very similar
25 number.
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
6
1
THE GOVERNOR: You used to provide us the -- and I
2 used to use it but I
was told the data may not be
3 completely reliable,
the un -- the loss that was not --
4 you know, the
deductible basically for homeowners. It was
5 a billion and two,
people were out of pocket an estimated
6 a billion, 200
million, then the report stopped including
7 that in it. I'm
just curious to know do we have a sense
8 of how much people
were out of pocket?
9
MR. McCARTY: In terms of what the consumers paid in
10 deductible?
11
THE GOVERNOR: Yeah.
12
MR. McCARTY: I can get that information. I don't
13 have that in this
report. We did also, in addition to our
14 weekly reports
regarding aging, regarding number of losses
15 per storm per line of
business per county, we're also
16 conducting a special
study regarding deductibles as you
17 had requested.
We had done an earlier study of the top 20
18 companies with some
preliminary data but we've now
19 conducted a study of
100 companies representing 87 to
20 97 percent of the
industry so we'll have that data
21 available as
well.
22
THE GOVERNOR: How are we doing on the adjusters?
23
MR. McCARTY: The adjuster closing period for the
24 first two storms is
November 22nd. The affidavits are due
25 on November 29th.
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
7
1
THE GOVERNOR: Does that mean they're all -- how are
2 we doing in terms of
adjusters getting out? Are they
3 going to comply with
the rule we passed?
4
MR. McCARTY: Well, from the conversations I've had
5 and some of my staff
have had with most of the insurance
6 companies, it appears
as though most companies are on
7 target to meet and be
able to file that affidavit.
8
CFO GALLAGHER: Well, I can tell you we have a
9 thousand people signed
up right now already for mediation
10 in our four mediation
centers that are operating in four
11 main hurricane
areas. And so far, that seems to be going
12 quite smoothly.
Quite a few settlements have happened
13 prior to mediation
which is great. That's what we expect
14 to happen.
There's a 21-day period that takes place from
15 final offer of the
insurance company. A request for
16 mediation, that's
when the 21 days starts. It gives the
17 insurance company a
chance to settle with them during the
18 21 days or go to
mediation.
19
THE GOVERNOR: General?
20
GENERAL CRIST: Thank you, Governor. Kevin, I think
21 you said that you
thought most of the companies would be
22 able to supply enough
adjusters. Which ones you
23 anticipate will
not?
24
MR. McCARTY: Well, at this time since the affidavits
25 have not been filed,
I'm not able to disclose that
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
8
1 information but I'll
have -- we'll have that information
2 very shortly,
General.
3
GENERAL CRIST: Okay. Thanks.
4
MR. McCARTY: At the last commission meeting, the
5 treasurer and governor
has to look into some possibility
6 of legislation for a
special session regarding properties
7 that have been damaged
by one of the storms in 2004 where
8 the claimant would
have been paid for but unable to
9 effectuate
construction completion. Those properties
10 would be, in most
cases, uninsurable in the voluntary
11 market, even
uninsurable by citizens. And as a result of
12 that, we have
proposed the following rule to address that
13 particular
situation.
14
THE GOVERNOR: Are we on Item 2 now?
15
MR. McCARTY: Yes, sir.
16
THE GOVERNOR: Okay. So --
17
MR. McCARTY: Well, the other part of Item 1 is
18 legislation,
suggested legislation, which really is
19 codification of the
proposed rule which is Item No. 2.
20
CFO GALLAGHER: One of the problems with emergency
21 rules is they only
last so long. These emergency rules
22 only go along with
your declaration of emergency. So
23 we're getting sort of
backed up on how long this is good
24 for.
25
THE GOVERNOR: I have no idea. We'll find out.
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
9
1
MR. McCARTY: Emergency rules are usually --
2
CFO GALLAGHER: And we may need an extension on yours
3 actually.
4
MR. McCARTY: To?
5
CFO GALLAGHER: To the end of the year.
6
THE GOVERNOR: Until we get through this 60-day
7 period?
8
CFO GALLAGHER: Well, to get to the end of the year
9 and then we have to
get this in law for these 60 days
10 after a home is
returned to its prestorm position. If you
11 don't, it's an
uninsurable risk and even citizens won't
12 take it.
13
THE GOVERNOR: So all we have to do is commit that
14 the emergency rule
will be valid or that there is
15 codification of
it.
16
CFO GALLAGHER: Right.
17
THE GOVERNOR: One of the two.
18
MR. McCARTY: That's correct.
19
CFO GALLAGHER: Well, actually, you have to have
20 codification because
emergency rules are only good for 90
21 days. And this
one is only going to be good until the law
22 changes in 90 days
which is not long enough. Because
23 obviously a lot of
people haven't even started any
24 repairs.
25
THE GOVERNOR: Okay. Any discussion on the adoption
ACCURATE STENOTYPE REPORTERS,
INC.
.
FINANCIAL SVCS COMMISSION/OFC OF INS REG
11-23-04
10
1 of emergency Rule
69OER04-06 --
2
CFO GALLAGHER: I move for adoption.
3
(Laughter.)
4
THE GOVERNOR: Why you guys have these kinds of
5 numbers?
6
MR. McCARTY: That's what they give me, Governor.
7
CFO GALLAGHER: Every number means something.
8
THE GOVERNOR: Does it mean something?
9
CFO GALLAGHER: ER is emergency rule.
10
MR. McCARTY: 690 is our code.
11
THE GOVERNOR: All right. Forget it.
12
(Laughter.)
13
COMMISSIONER BRONSON: Second.
14
THE GOVERNOR: Sounds like something I don't want to
15 know. There is
a motion and a second on Item 2. Any
16 discussion? (No
response.) Without objection, the item
17 passes.
18
Thank you, Kevin.
19
MR. McCARTY: Thank you, Governor and members of the
20 commission.
21
22
23
24
25
ACCURATE STENOTYPE REPORTERS,
INC.
.
DEPARTMENT OF REVENUE -
11/23/04
11
1
THE GOVERNOR: Department of Revenue.
2
CFO GALLAGHER: Motion on the minutes.
3
COMMISSIONER BRONSON: Second.
4
THE GOVERNOR: There is a motion and a second.
5 Without objection,
Item 1 passes.
6
DR. ZINGALE: There's only one other item on the
7 agenda. This
second item is an ad valorem tax rule
8 stemming from 2004
legislation. Three little parts. The
9 first part just did
some minor time change in the exchange
10 of evidence between
the clerk and the property appraiser
11 and the value
adjustment board.
12
The second item, you can remember a little while back
13 we had citizens out
there buying small little bits and
14 pieces of property
that were kind of between things and
15 then erecting
facilities that would cause the compensation
16 to be
exchanged. This just provides a definition of
17 contiguous so that
these property appraiser -- these
18 homeowners can be
warned.
19
And the last item is simply requiring that the
20 Department continue
to provide forms for small counties
21 under 100,000 and
request approval of the rule.
22
THE GOVERNOR: So this solves the pink --
23
DR. ZINGALE: It was solved a year ago but they
24 wanted a definition
of contiguous so that everybody could
25 be warned.
ACCURATE STENOTYPE REPORTERS,
INC.
.
DEPARTMENT OF REVENUE -
11/23/04
12
1
THE GOVERNOR: Is there a motion on Item 2.
2
GENERAL CRIST: Motion.
3
CFO GALLAGHER: Second.
4
THE GOVERNOR: Moved and seconded. Without
5 objection, the item
passes. Happy Thanksgiving.
6
DR. ZINGALE: Happy Thanksgiving. Have a great time
7 with your family,
please.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
ACCURATE STENOTYPE REPORTERS,
INC.
.
BOARD OF TRUSTEES -
11/23-04
13
1
THE GOVERNOR: Board of Trustees. Department of
2 Agriculture and
Consumer Services.
3
CFO GALLAGHER: Motion on the minutes.
4
GENERAL CRIST: Second.
5
THE GOVERNOR: There's a motion and a second.
6 Without objection,
Item 1 passes.
7
MS. CASTILLE: And, Governor, I'm going to turn this
8 part of the meeting
over. There are only two items with
9 Aquaculture. I'm
going to turn over to Sherman Wilhelm.
10
THE GOVERNOR: Good morning, Sherman.
11
MR. WILHELM: Good morning, sir.
12
THE GOVERNOR: You're going to have to be fortis and
13 give me a preview
since you're a rookie presenter. You
14 need to explain to me
the lease down in the Keys to make
15 reefs. It
sounds very fascinating.
16
MR. WILHELM: Yes, sir.
17
THE GOVERNOR: But you can do it in your
18 presentation.
I'm forewarning you that a detailed
19 explanation should be
forthcoming.
20
GENERAL CRIST: Item of interest.
21
MR. WILHELM: Well, actually this is not the first
22 one of these we've
done. The Item No. 2 which will segue
23 into that issue is a
request by the Department for
24 authorization to
issue a 10-year, 1-acre lease in Monroe
25 County for the
purpose of producing marine live rock to
ACCURATE STENOTYPE REPORTERS,
INC.
.
BOARD OF TRUSTEES -
11/23-04
14
1 Mr. Pattendorf.
2
CFO GALLAGHER: Can I ask a question?
3
MR. WILHELM: Sure.
4
CFO GALLAGHER: Is this a typo or is this really
5 $41.90 annually he's
paying for this?
6
MR. WILHELM: No, sir, that is $41.90 annually. He
7 has a bottom lease and
a water column lease.
8
CFO GALLAGHER: And they pay us $41.90 for it?
9
MR. WILHELM: A year, yes, sir.
10
CFO GALLAGHER: You got to be kidding me.
11
MR. WILHELM: No, sir.
12
CFO GALLAGHER: It costs more than that to process
13 it.
14
THE GOVERNOR: You really drive a hard bargain.
15
MR. WILHELM: Yes, sir, it does. I am more than
16 willing, believe me
--
17
CFO GALLAGHER: That's all it's worth?
18
MR. WILHELM: Well, no, sir, I'm not going to say
19 that's all it's
worth.
20
CFO GALLAGHER: Well, I mean, I have a hard time
21 voting for something
that we don't even get our cost out
22 of producing the
paperwork for. I mean, just coming here
23 for you costs more
than $41.90.
24
THE GOVERNOR: (Laughter.) How do you know?
25
MR. WILHELM: Well, I don't know. The commissioner
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
15
1 is a pretty tight man
with the budget.
2
CFO GALLAGHER: I'm talking about yours.
3
MR. WILHELM: No, sir, the cabinet actually -- the
4 cabinet, more than
five years, ten years ago actually set
5 these rates.
It's $15.95 an acre or part of an acre. And
6 because it's 41, he's
got a bottom and a column. And
7 because of that, it's
$31 just for the lease and then
8 there is a $10
surcharge. You-all may certainly raise
9 them. My budget
would appreciate it. I know the
10 commissioner would
appreciate it if you'd raise my --
11 because it is a cost
factor. There's no question about
12 it, sir.
13
CFO GALLAGHER: Doesn't make any sense.
14
THE GOVERNOR: Well, I think -- I would imagine --
15 when was this
done?
16
CFO GALLAGHER: Ten years ago.
17
THE GOVERNOR: Hopefully ten years ago, not five
18 years ago.
19
MR. WILHELM: No, sir. No, it was over ten years ago
20 when the 15.95 an
acre was set.
21
CFO GALLAGHER: It hadn't been changed since then?
22
THE GOVERNOR: I would think that it was done in
23 order to stimulate a
potentially enormous industry for our
24 state and that we
were willing to, just as we did with --
25 I think we did it
with, maybe in a misguided way, with the
ACCURATE STENOTYPE REPORTERS,
INC.
.
BOARD OF TRUSTEES -
11/23-04
16
1 cable -- laying the
cable over sovereign submerged lands
2 when we were focused
on connectivity between Florida and
3 the rest of the
world. I'm assuming that ten years ago
4 people said this is an
important industry. We don't want
5 to hit them up with
what we typically charge maybe. Is
6 that right,
Commissioner?
7
COMMISSIONER BRONSON: Well, and the discussion, as I
8 remember too was
--
9
THE GOVERNOR: Were you here two years ago?
10
COMMISSIONER BRONSON: No, but --
11
CFO GALLAGHER: I'm probably the only one around here
12 that was.
13
THE GOVERNOR: You don't remember?
14
(Off-the-record discussion.)
15
COMMISSIONER BRONSON: You got to remember the State
16 was getting nothing
for this piece of property. It was
17 just sitting
there.
18
THE GOVERNOR: Now we're losing money.
19
COMMISSIONER BRONSON: Now we're losing money. The
20 point was to get it
in some type of production that would
21 be positive for the
environment that it's in and creating
22 live rock was a very
good environment. That just shows
23 that you're able to
create live rock from dead rock that
24 you place there and
sell that in the aquamarine industries
25 of fish and fish
tanks, that type of thing. It's just new
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
17
1 technology that's been
developed. And, of course, nobody
2 has increased it to
the cost of living or any of those
3 things to increase it
over the time and we probably have
4 still a number of
things on the book exactly the same way.
5
THE GOVERNOR: So under Treasurer Gallagher's point
6 which is a good one --
cost of living isn't a matter
7 here -- if it goes up
to 60 bucks it's still the hourly --
8
CFO GALLAGHER: No. This was done, I've been
9 informed, when we did
the net ban, this was to give some
10 people some other
alternatives to make a living.
11
COMMISSIONER BRONSON: That's what stemmed this.
12
CFO GALLAGHER: And so, you know, that's all well and
13 good. But the
live rock is sold and it's pretty expensive
14 when you buy it to
put it in an aquarium.
15
MR. WILHELM: Yes, sir, it's $10 a box, it's $10 a
16 pound.
17
CFO GALLAGHER: And these guys are going to bop down
18 100,000 pounds so
they got a million dollars worth sitting
19 there.
20
THE GOVERNOR: It's a cool business.
21
CFO GALLAGHER: All they do is put a pile of rocks
22 there, something
grows on it. How long does it take it to
23 grow, a year?
24
MR. WILHELM: Year, year and a half, yes, sir. They
25 put rocks down and
the stuff grows on it and they turn
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
18
1 around and sell it and
they're paying less than $85 a ton
2 for it.
3
THE GOVERNOR: I'm thinking two years from now, sit
4 out there in the Keys
and watch rocks grow. That sounds
5 like a pretty good
plan.
6
CFO GALLAGHER: $41.90 and make a deposit.
7
THE GOVERNOR: Can I sign up?
8
MR. WILHELM: Yes, sir.
9
THE GOVERNOR: Colleen, will you come with me and be
10 my partner?
11
CFO GALLAGHER: They're going to raise the price
12 every five years to
adjust it.
13
THE GOVERNOR: Is the lessee here?
14
MR. WILHELM: No, sir, he is not.
15
CFO GALLAGHER: He couldn't afford to come up here
16 when he's paying
$41.90 for it.
17
(Laughter.)
18
Gas is more than that.
19
THE GOVERNOR: Well, I defer to the commissioner of
20 agriculture on this
important subject.
21
COMMISSIONER BRONSON: Well, to be fair and practical
22 about this, I mean,
the way it started and the fact that
23 it was done to
generate a new type of business because of
24 the net ban and other
things to get people involved, that
25 was the impetus to
get it started. Certainly, as farming
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
19
1 on a piece of State
land that's been leased that's going
2 to make a
million-dollar business worth more than $41, I'm
3 sure that it is.
But there again, I think that between
4 DEP and this board
that we would probably need to take a
5 look at that and
decide on leases in the future what we're
6 going to do.
7
THE GOVERNOR: What do you want to do on this one?
8
COMMISSIONER BRONSON: Well, I don't want to hold the
9 guy up. I'd say
go ahead and give him the lease. But if
10 we want to talk about
leases in the future for over
11 periods of time or
whether we do a one-year or a five-year
12 lease or whatever we
do, then we certainly should discuss
13 that. I don't
think we should hold the man up now when
14 he's working under
the guidelines that's been given to
15 him. So I say,
my suggestion is to approve the lease. So
16 I move to approve the
lease.
17
CFO GALLAGHER: Well, I'll go along with that. But
18 I'd like -- so I'll
second that with some instructions
19 that we come up with
something that's a little more --
20 makes more sense with
this. And I really think we
21 should -- I mean,
we're renewing this thing for five years
22 at some cost of
living. So I think what ought to do is
23 say upon renewal it
will be under the new rates, that we
24 figure out what
they'll be. That they're going to be fair
25 as opposed to a cost
of living in there. You're just
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
20
1 going to have to wait
and see what kind of fair thing you
2 can come up with that
makes sense.
3
COMMISSIONER BRONSON: Now, I would also, Governor,
4 if I could, remind
this board that while this seems awful
5 cheap and it does.
6
CFO GALLAGHER: And it is.
7
COMMISSIONER BRONSON: Take, for example, all of the
8 clam harvesters out
there who lease land from us as well
9 who lost everything
they have out there in that water over
10 those storms.
And all it takes is bad stormy weather, not
11 necessarily
hurricane, to kill the --
12
THE GOVERNOR: Even the rocks?
13
COMMISSIONER BRONSON: Well, yes. You can destroy
14 that rock just as
easy with too much sand and too much
15 fresh water out there
in that area or wherever it happens
16 to be.
17
THE GOVERNOR: It's still going to be a rock.
18
COMMISSIONER BRONSON: Well, it will be a dead rock,
19 it won't be a live
rock. But the point is you have
20 clam -- the clam
industry has been devastated in these
21 storms as well.
So while it may seem cheap for a lease,
22 they've lost
everything they work for and it may not be so
23 cheap to them in the
end when they've lost everything. So
24 I think we need to
keep all that in perspective.
25
THE GOVERNOR: You need to close the deal because now
ACCURATE STENOTYPE REPORTERS,
INC.
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BOARD OF TRUSTEES -
11/23-04
21
1 you're talking about
free market economics and whether the
2 government should be
subsidizing people's gains and
3 losses. You have
a motion, right?
4
COMMISSIONER BRONSON: I have motion to go ahead and
5 approve.
6
CFO GALLAGHER: With an amended second.
7
THE GOVERNOR: There's a motion and a second as
8 amended. Any
objections? The motion passes unanimously
9 with emphasis.
Item 2.
10
Item 3, excuse me.
11
MR. WILHELM: The Board of County Commissioners for
12 Collier County has
written in to the commissioner and
13 requested that the
Department go out within the waters of
14 Collier County and
establish an aquaculture high density
15 lease. After
extensive research, investigation,
16 coordination with DEP
and FWC, the three agencies
17 ultimately agreed on
two smaller lease parcels instead of
18 one lease parcel
within Collier County. The County then
19 had several public
meetings as well as the Department and
20 the University of
Florida on providing education and
21 workshop to potential
applicants out in the Collier County
22 area.
23
After that was all done, we received another letter
24 from the County
Commission requesting us -- this was
25 before Hurricane
Charley but their feeling is still the
ACCURATE STENOTYPE REPORTERS,
INC.
.
BOARD OF TRUSTEES -
11/23-04
22
1 same since then --
that they requested us to move forward
2 on this application
requesting us to initiate the creation
3 and leasing of a,
essentially two small high density lease
4 areas. So the
item before you, the Department is
5 requesting
authorization to issue two, 2-acre leases to 15
6 individuals within
Collier County for ten years for the
7 sole purpose of
raising hard clams with two conditions,
8 that the leases be
given on a first-come, first-serve
9 basis, and that there
be a prohibition for any sale or
10 transfer of those
leases for the first three years which
11 is the same
conditions that Franklin County asked of you
12 two years ago and
that you put on the Franklin County
13 leases in Alligator
Harbor.
14
CFO GALLAGHER: And now we're down to $15.95.
15
MR. WILHELM: Yes, sir, that is the base rate.
16 That's the same rate
that the live rock people use. The
17 sovereignty submerged
lands ten years ago was established
18 at a 15.95 --
19
THE GOVERNOR: Going to lose less money on this one.
20
MR. WILHELM: The only reason this one is 15.95 is
21 because they plant
the clams in bags that lay on the
22 bottom and so they do
not extend above six inches off the
23 bottom and so that
just constitutes the bottom lease.
24
CFO GALLAGHER: So we don't get any water use? Just
25 the bottom.
ACCURATE STENOTYPE REPORTERS,
INC.
.
BOARD OF TRUSTEES -
11/23-04
23
1
MR. WILHELM: Just the bottom.
2
CFO GALLAGHER: But the other one gets high --
3
THE GOVERNOR: Can we charge them rent when they go
4 down and pick it
up?
5
MR. WILHELM: No, sir.
6
CFO GALLAGHER: If those guys just put the rocks flat
7 on the bottom --
8
MR. WILHELM: No, they stack them up in a pyramid.
9
CFO GALLAGHER: No, but if they just put them flat on
10 the bottom, we don't
have to pay so much.
11
MR. WILHELM: That's correct.
12
CFO GALLAGHER: Then they have to go all over the
13 place picking them
up.
14
MR. WILHELM: Well, yes, sir, they would. But the
15 stuff doesn't grow on
them as much if they're laying flat
16 on the bottom as if
they're built up into the water
17 column.
18
CFO GALLAGHER: I knew somebody would figure that
19 out. Are you
moving this one too?
20
COMMISSIONER BRONSON: I'm going to go ahead and move
21 it.
22 &nbs
Cabinet
Affairs
