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          1
 
          2                  T H E   C A B I N E T
 
          3             S T A T E   O F   F L O R I D A
 
          4
                                 Representing:
          5
                          STATE BOARD OF ADMINISTRATION
          6                  DIVISION OF BOND FINANCE
                              DEPARTMENT OF REVENUE
          7                  STATE BOARD OF EDUCATION
                            ADMINISTRATION COMMISSION
          8                  FLORIDA LAND AND WATER
                             ADJUDICATORY COMMISSION
          9                  TRUSTEES OF THE INTERNAL
                              IMPROVEMENT TRUST FUND
         10
 
         11            The above agencies came to be heard before
              THE FLORIDA CABINET, Secretary Sandra B. Mortham
         12   presiding, in the Cabinet Meeting Room, LL-03,
              The Capitol, Tallahassee, Florida, on Tuesday,
         13   March 25, 1997, commencing at approximately 9:33 a.m.
 
         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
 
         23            ACCURATE STENOTYPE REPORTERS, INC.
                                100 SALEM COURT
         24                TALLAHASSEE, FLORIDA 32301
                                  904/878-2221
         25
 
 
 
 
 
 
                                                              2
 
          1   APPEARANCES:
 
          2            Representing the Florida Cabinet:
 
          3            BOB CRAWFORD
                       Commissioner of Agriculture
          4
                       BOB MILLIGAN
          5            Comptroller
 
          6            SANDRA B. MORTHAM
                       Secretary of State
          7
                       BOB BUTTERWORTH
          8            Attorney General
 
          9            BILL NELSON
                       Treasurer
         10
                       FRANK T. BROGAN
         11            Commissioner of Education
 
         12                           *
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  March 25, 1997
                                                              3
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   STATE BOARD OF ADMINISTRATION:
              (Presented by Barbara L. Jarriel, CFA,
          4       Chief Investment Officer)
 
          5    1                  Approved                  6
               2                  Approved                  7
          6    3                  Approved                  7
               4                  Approved                  7
          7    5                  Approved                  8
               6                  Approved                  8
          8    7                  Approved                  9
               8                  Approved                 11
          9    9                  Approved                 12
              10                  Approved                 13
         10
              DIVISION OF BOND FINANCE:
         11   (Presented by J. Ben Watkins, III,
                  Director)
         12
               1                  Approved                 15
         13    2                  Approved                 15
               3                  Approved                 16
         14    4(a), (b),
                (c), and (d)      Approved                 16
         15
              DEPARTMENT OF REVENUE:
         16   (Presented by L.H. Fuchs,
                  Executive Director)
         17
               1                  Approved                 18
         18    2                  Approved                 18
               3                  Approved                 18
         19    4                  Approved                 21
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  March 25, 1997
                                                              4
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   STATE BOARD OF EDUCATION:
              (Presented by Robert L. Bedford, Ph.D.,
          4       Deputy Commissioner)
 
          5    1                  Approved                 91
               2                  Approved                183
          6    3                  Approved                252
               4                  Approved                125
          7    5                  Approved                126, 131
               6                  Approved                127
          8    7                  Approved                127
               8                  Approved                128
          9    9                  Withdrawn               132
 
         10   ADMINISTRATION COMMISSION:
              (Presented by Gale Sittig,
         11       Deputy Director)
 
         12    1                  Postponed
               2                  Postponed
         13    3                  Postponed
               4                  Postponed
         14    5                  Postponed
                                    Discussion             28
         15    6                  Approved                 22
               7                  Approved                 28
         16
              FLORIDA LAND AND WATER
         17     ADJUDICATORY COMMISSION:
              (Presented by Gale Sittig,
         18       Deputy Secretary)
 
         19    1                  Approved                 31
               2                  Approved                 69
         20    3                  Approved                 76
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  March 25, 1997
                                                              5
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   BOARD OF TRUSTEES,
              INTERNAL IMPROVEMENT
          4   TRUST FUND:
              (Presented by Kirby B. Green, III,
          5       Assistant Secretary)
 
          6    1                  Approved                 40
               2                  Approved                 40
          7   Substitute 3        Approved                 40
              Substitute 4        Approved                 40
          8    5                  Approved                 41
               6                  Approved                 38
          9
 
         10            CERTIFICATE OF REPORTER            254
 
         11                           *
 
         12
 
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         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              6
 
          1                  P R O C E E D I N G S
 
          2            (The agenda items commenced at 10:06 a.m.)
 
          3            SECRETARY MORTHAM:  Okay.  I'm going to
 
          4       turn the meeting over to General Milligan for
 
          5       the State Board of Administration.
 
          6            COMPTROLLER MILLIGAN:  We are without
 
          7       Mr. Herndon this morning, I see.
 
          8            Barbara.
 
          9            MS. JARRIEL:  We are.
 
         10            COMPTROLLER MILLIGAN:  But good to see
 
         11       you.
 
         12            And Item 1, the minutes?
 
         13            MS. JARRIEL:  Item 1 is approval of the
 
         14       minutes of the meeting held on February 25th,
 
         15       1997.
 
         16            TREASURER NELSON:  I move it.
 
         17            COMPTROLLER MILLIGAN:  And second it.
 
         18            Without dissent, approved.
 
         19            MS. JARRIEL:  Second item is a
 
         20       recommendation to approve fiscal sufficiency in
 
         21       an amount not to exceed 15 million dollars,
 
         22       Florida Housing Finance Agency Housing Revenue
 
         23       Bonds, Mar Lago Village Project.
 
         24            TREASURER NELSON:  Move it.
 
         25            COMPTROLLER MILLIGAN:  And second.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              7
 
          1            Without dissent, approved.
 
          2            MS. JARRIEL:  Item 3, also a recommendation
 
          3       to approve fiscal sufficiency not to exceed
 
          4       fifteen million six hundred and forty thousand
 
          5       dollars, Florida Housing Finance Agency Housing
 
          6       Revenue Bonds, Riverfront Apartments Project.
 
          7            TREASURER NELSON:  Move it.
 
          8            COMPTROLLER MILLIGAN:  Second.
 
          9            And without dissent, approved.
 
         10            MS. JARRIEL:  Item number 4 is a
 
         11       recommendation to approve fiscal sufficiency of
 
         12       one or more series in an aggregate amount not to
 
         13       exceed two hundred and two million dollars,
 
         14       Florida Housing Finance Agency Homeowner
 
         15       Mortgage Revenue Bonds, Series 1 through 4; and
 
         16       if so determined, additional series to be
 
         17       subsequently designated.
 
         18            TREASURER NELSON:  I move that we accept
 
         19       the item.
 
         20            COMPTROLLER MILLIGAN:  Seconded.
 
         21            And without dissent, approved.
 
         22            MS. JARRIEL:  Item number 5, a
 
         23       recommendation to approve fiscal sufficiency in
 
         24       an amount not to exceed nine million nine
 
         25       hundred thousand dollars, the Florida Housing
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              8
 
          1       Finance Agency Housing Revenue Bonds, and not to
 
          2       exceed one million dollars, Florida Housing
 
          3       Finance Agency, Taxable Housing Revenue Bonds,
 
          4       projects Cedars of Baymeadows and Eagles Point
 
          5       North.
 
          6            TREASURER NELSON:  Move it.
 
          7            COMPTROLLER MILLIGAN:  Second.
 
          8            Without dissent, approved.
 
          9            MS. JARRIEL:  Item number 6, recommendation
 
         10       to approve fiscal sufficiency not to exceed
 
         11       three hundred million dollars, State of Florida,
 
         12       Department of Environmental Protection,
 
         13       Preservation 2000 Revenue Bonds.
 
         14            TREASURER NELSON:  Move it.
 
         15            COMPTROLLER MILLIGAN:  Question.
 
         16            Is that three hundred million, or --
 
         17            MS. JARRIEL:  That is correct.
 
         18            COMPTROLLER MILLIGAN:  Three hundred
 
         19       million?
 
         20            Seconded.
 
         21            Without dissent, approved.
 
         22            MS. JARRIEL:  The seventh item is an
 
         23       interest rate exception.  The Riverwood
 
         24       Community Development District has submitted a
 
         25       request to issue bonds at an interest rate not
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              9
 
          1       to exceed eight-and-a-half percent, for an
 
          2       aggregate amount not to exceed twelve million
 
          3       nine hundred and eighty thousand.  These are
 
          4       special assessment revenue refunding bonds,
 
          5       Series A and B.
 
          6            TREASURER NELSON:  Move it.
 
          7            COMPTROLLER MILLIGAN:  And seconded.
 
          8            Without exception, approved.
 
          9            MS. JARRIEL:  Item number 8 relates to a
 
         10       request to change the benchmark, and
 
         11       subsequently the investment plan for the Florida
 
         12       Retirement System.
 
         13            General Milligan has asked me to make a few
 
         14       preparatory remarks with regard to this issue in
 
         15       the interest of disclosure.
 
         16            High yield bonds currently represent about
 
         17       20 percent of the total corporate debt market.
 
         18       The most attractive feature of these securities
 
         19       is their diversification impact on an entire
 
         20       portfolio.
 
         21            Since the correlations are very low, they
 
         22       can be added to the fixed income portfolio, and
 
         23       add diversification not only in that portfolio,
 
         24       but in the aggregate.
 
         25            We would expect to be able to add them to
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              10
 
          1       enhance return, while at the same time, actually
 
          2       reducing the volatility of the portfolio.
 
          3       That's the advantage of low correlating assets.
 
          4            Our proposal is to invest 5 percent of the
 
          5       fixed income portfolio, which is approximately
 
          6       1.3 percent of the total fund.  This is
 
          7       essentially a market weight in the securities.
 
          8            We will not be including emerging market
 
          9       debt, which has dramatically different risk
 
         10       return characteristics, nor would we include any
 
         11       distress securities which would be those
 
         12       securities rated lower than double B or
 
         13       single B.
 
         14            Our research to make this recommendation to
 
         15       you included an analysis by our general
 
         16       consultant, Ennis, Knupp & Associates out of
 
         17       Chicago; independent research done by our
 
         18       internal chief economist staff, which is
 
         19       delegated by the Executive Director to staff our
 
         20       asset allocation process; and last week, we
 
         21       presented these recommendations, which were for
 
         22       a market weight, to our Investment Advisory
 
         23       Council, who unanimously recommended that we
 
         24       move forward.
 
         25            So having provided that information, we
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              11
 
          1       would like to request approval to change the
 
          2       total fund investment plan, which revises the
 
          3       benchmark for fixed income to reflect the
 
          4       addition of high yield bonds to the portfolio.
 
          5            TREASURER NELSON:  And I would move it,
 
          6       Mr. Chairman.
 
          7            COMPTROLLER MILLIGAN:  Thank you.
 
          8            I second it.
 
          9            And I appreciate very much the
 
         10       clarification as to the risk, and what
 
         11       restrictions you are placing on those --
 
         12            MS. JARRIEL:  Thank you very much.
 
         13            COMPTROLLER MILLIGAN:  -- particular
 
         14       investments.
 
         15            Without dissent, approved.
 
         16            MS. JARRIEL:  Number 9 is a request to
 
         17       accept the investment performance and fund
 
         18       balance analyses for the month of February 1997.
 
         19            TREASURER NELSON:  And I move it.
 
         20            And I look at this that's rounded
 
         21       eighty billion five hundred million.
 
         22            MS. JARRIEL:  That is correct.
 
         23            TREASURER NELSON:  Are we still the eighth
 
         24       largest pension fund in America, or have we
 
         25       moved up?
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              12
 
          1            MS. JARRIEL:  We're probably moving up.
 
          2       I think we're number six now.
 
          3            TREASURER NELSON:  Number six.  My goodness
 
          4       gracious.
 
          5            COMPTROLLER MILLIGAN:  I second the
 
          6       acceptance.
 
          7            And I also would like to compliment you on
 
          8       a job well-done.
 
          9            Thank you.
 
         10            MS. JARRIEL:  Thank you very much.
 
         11            Having concluded the regular business of
 
         12       the SBA, we would like to ask the Trustees in
 
         13       their capacities as Directors to hold a Board of
 
         14       Directors meeting of the Inland Protection
 
         15       Financing Corporation.
 
         16            At this time, I'd like to call up
 
         17       Virginia Wetherell as Secretary of DEP.
 
         18            And if there is a representative of the
 
         19       Black Business Investment Board here, if they
 
         20       could likewise come forward.
 
         21            Is Virginia Wetherell here today?
 
         22            COMPTROLLER MILLIGAN:  In the absence of
 
         23       the Governor, I will call the meeting to order,
 
         24       and we do have a quorum.
 
         25            MS. JARRIEL:  Thank you very much.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              13
 
          1            At this time, we would like to take the
 
          2       opportunity to disclose to the Board members
 
          3       that we submitted RFP -- that RFPs were
 
          4       submitted by eleven firms to serve as bond
 
          5       disclosure counsel for the Inland Protection
 
          6       Financing Corporation.
 
          7            An RFP review team was asked to look at
 
          8       these, and to rank them based on various
 
          9       characteristics.  We would like to let you know
 
         10       that our selection based on that analysis is the
 
         11       firm of Greenberg, Traurig, Hoffman.
 
         12            At this time, General, we'd like to request
 
         13       that you direct the Secretary to set this action
 
         14       into the minutes of the meeting.
 
         15            COMPTROLLER MILLIGAN:  If you would,
 
         16       please, Secretary, make those a matter of
 
         17       record.
 
         18            MS. JARRIEL:  There being no further
 
         19       business, we ask for a motion and second to
 
         20       adjourn the meeting.
 
         21            TREASURER NELSON:  And I move it.
 
         22            COMPTROLLER MILLIGAN:  And seconded.
 
         23            Without dissent, approved.
 
         24            MS. JARRIEL:  Thank you very much.
 
         25            COMPTROLLER MILLIGAN:  Thank you.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                          STATE BOARD OF ADMINISTRATION
                                  March 25, 1997
                                                              14
 
          1            (The State Board of Administration Agenda
 
          2       was concluded.)
 
          3                             *
 
          4
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
                             DIVISION OF BOND FINANCE
                                  March 25, 1997
                                                              15
 
          1            SECRETARY MORTHAM:  Okay.  Division of
 
          2       Bond Finance.
 
          3            MR. WATKINS:  Item number 1 is approval of
 
          4       the minutes of the March 11th meeting.
 
          5            COMMISSIONER CRAWFORD:  Motion.
 
          6            COMPTROLLER MILLIGAN:  Second.
 
          7            SECRETARY MORTHAM:  Moved and seconded.
 
          8            Without objection, approved.
 
          9            MR. WATKINS:  Item number 2 is a resolution
 
         10       authorizing the competitive sale of $300 million
 
         11       in bonds for the Preservation 2000 program.
 
         12            COMMISSIONER BROGAN:  Move approval.
 
         13            COMPTROLLER MILLIGAN:  Second.
 
         14            SECRETARY MORTHAM:  Moved and seconded.
 
         15            Without objection, approved.
 
         16            MR. WATKINS:  Item number 3 is a report on
 
         17       the sale of eighteen million four hundred twenty
 
         18       thousand University of Central Florida Housing
 
         19       Bonds.
 
         20            The bonds were sold at competitive sale and
 
         21       awarded to the low bidder at an interest rate of
 
         22       approximately five-and-a-half percent.
 
         23            COMMISSIONER BROGAN:  Move approval.
 
         24            COMPTROLLER MILLIGAN:  And seconded.
 
         25            SECRETARY MORTHAM:  Moved and seconded.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                             DIVISION OF BOND FINANCE
                                  March 25, 1997
                                                              16
 
          1            Without objection, approved.
 
          2            MR. WATKINS:  Item number 4 is a -- are
 
          3       resolutions requested by the Florida
 
          4       Housing Finance Agency authorizing the
 
          5       negotiated sale of three multifamily housing
 
          6       revenue bonds, and part negotiated/part
 
          7       competitive sale of bonds for the single family
 
          8       housing program.
 
          9            COMMISSIONER BROGAN:  Secretary Mortham,
 
         10       I'll move Items 4(a), (b), (c), and (d).
 
         11            COMPTROLLER MILLIGAN:  Second.
 
         12            SECRETARY MORTHAM:  Moved and seconded.
 
         13            Without objection, approved.
 
         14            COMPTROLLER MILLIGAN:  Madam Secretary, if
 
         15       we can make a comment.
 
         16            SECRETARY MORTHAM:  Certainly.
 
         17            COMPTROLLER MILLIGAN:  Again, appreciate
 
         18       the fact that the Florida Housing Finance Agency
 
         19       is, in fact, moving toward more looks at
 
         20       competitive negoti-- as opposed to negotiated.
 
         21       So that's excellent.
 
         22            SECRETARY MORTHAM:  Very good.
 
         23            MR. WATKINS:  Thank you.
 
         24            SECRETARY MORTHAM:  Thank you.
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                             DIVISION OF BOND FINANCE
                                  March 25, 1997
                                                              17
 
          1            (The Division of Bond Finance Agenda was
 
          2       concluded.)
 
          3                             *
 
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                        ACCURATE STENOTYPE REPORTERS, INC.
                              DEPARTMENT OF REVENUE
                                  March 25, 1997
                                                              18
 
          1            SECRETARY MORTHAM:  Revenue.
 
          2            MR. FUCHS:  Good morning.
 
          3            Item 1 is a request for approval of the
 
          4       minutes of the February 11th meeting.
 
          5            COMMISSIONER BROGAN:  Move the minutes.
 
          6            COMPTROLLER MILLIGAN:  Second.
 
          7            SECRETARY MORTHAM:  Moved and seconded.
 
          8            Without objection, approved.
 
          9            MR. FUCHS:  Item 2 is request for approval
 
         10       of and authority to enter into a contract with
 
         11       AT&T, and a contract with Baca, Stein, White and
 
         12       Associates for electronic data interchange.
 
         13            COMMISSIONER CRAWFORD:  Motion.
 
         14            COMPTROLLER MILLIGAN:  Second.
 
         15            SECRETARY MORTHAM:  Moved and seconded.
 
         16            Without objection, approved.
 
         17            MR. FUCHS:  Item 3 is request permission to
 
         18       adopt a proposed final order in the case of
 
         19       Camden Corporation versus DOR in order to take
 
         20       final agency action.
 
         21            COMMISSIONER CRAWFORD:  Motion.
 
         22            COMPTROLLER MILLIGAN:  Seconded.
 
         23            SECRETARY MORTHAM:  Moved and seconded.
 
         24            Without objection, approved.
 
         25            MR. FUCHS:  And Item 4 is re-- a request
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                              DEPARTMENT OF REVENUE
                                  March 25, 1997
                                                              19
 
          1       that you accept our report on mail order sales
 
          2       that was asked for in a Cabinet meeting some
 
          3       weeks ago.  The report, I believe, speaks for
 
          4       itself.  But there have been some new
 
          5       developments.
 
          6            I went to a meeting in Washington on
 
          7       Thursday and Friday of last week, and this
 
          8       subject came up, as it inevitably does.
 
          9            In December -- there are three items
 
         10       actually.
 
         11            In December, the Federal Trade Commission
 
         12       turned down a request from a number of states to
 
         13       take up the issue of mail order sales as a
 
         14       failure to disclose to consumers their
 
         15       obligation to pay use tax.
 
         16            The FTC determined that there was no direct
 
         17       harm to the consumers, but any harm would be to
 
         18       the -- to the states and the taxpayers, and
 
         19       turned down the request.
 
         20            Just recently, the National Governors
 
         21       Association reaffirmed its commitment to the
 
         22       states' efforts to get mail order sales
 
         23       companies to -- to either negotiate, or the
 
         24       states pursue Congressional action to force them
 
         25       to collect state taxes.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                              DEPARTMENT OF REVENUE
                                  March 25, 1997
                                                              20
 
          1            But most significantly, there has been a
 
          2       submission to Congress of a bill sponsored by,
 
          3       I believe, it's Senator Wyden and
 
          4       Representative Cox, known as the Wyden-Cox Bill,
 
          5       that would preclude the states from collecting
 
          6       tax on electronic commerce that occurs over the
 
          7       Internet.
 
          8            That is a measure that would have
 
          9       substantial financial impact for the State of
 
         10       Florida in that while it ostensibly stops new
 
         11       taxes on the Internet, it would restrict the
 
         12       states to the collection of tax, just as they
 
         13       collect tax currently for mail order sales,
 
         14       which is a reverse way of saying no tax, because
 
         15       currently we can't collect tax on mail order
 
         16       sales.  That's the nature of the report that
 
         17       I've given to you.
 
         18            It is a moratorium without an end.  And as
 
         19       we all know, the ability to take away an
 
         20       exemption is problematic at best.
 
         21            And as I've written to you on a number of
 
         22       occasions in the past, I would not ask for
 
         23       action today, but ask you to consider, in
 
         24       accepting this report, the possibility of
 
         25       contacting our Congressional delegations, and
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                              DEPARTMENT OF REVENUE
                                  March 25, 1997
                                                              21
 
          1       expressing our opinion in regard to the impact
 
          2       this bill would have on the finances of the
 
          3       State of Florida.
 
          4            SECRETARY MORTHAM:  Has that been moved?
 
          5            COMMISSIONER BROGAN:  So move.
 
          6            COMMISSIONER CRAWFORD:  Second.
 
          7            SECRETARY MORTHAM:  Moved and seconded.
 
          8            Without objection, accept the report.
 
          9            MR. FUCHS:  Thank you very much.
 
         10            SECRETARY MORTHAM:  Thank you.
 
         11            (The Department of Revenue Agenda was
 
         12       concluded.)
 
         13                             *
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                            ADMINISTRATION COMMISSION
                                  March 25, 1997
                                                              22
 
          1            SECRETARY MORTHAM:  We're going to go to
 
          2       the Administration Commission.
 
          3            And Items 1 through 5 will not be heard,
 
          4       because it requires the Governor's vote.  So
 
          5       I believe we'll go straight to Items 6 and 7.
 
          6            MS. SITTIG:  Request -- Item 6, request
 
          7       acceptance of the Department of
 
          8       Community Affairs' recommendation, and extend
 
          9       the area of Critical State Concern designation
 
         10       for the Florida Keys area for another year.
 
         11            COMMISSIONER BROGAN:  Move approval.
 
         12            COMMISSIONER CRAWFORD:  Second.
 
         13            SECRETARY MORTHAM:  Moved and seconded.
 
         14            Without objection, approved.
 
         15            MS. SITTIG:  Item 7, request authorization
 
         16       to enter the amended draft final order.  We have
 
         17       some individuals who would like to speak on
 
         18       this, as well as a few citizens.
 
         19            What we have asked is that each side be
 
         20       limited to 10 minutes.  And then at the end,
 
         21       we'll have the citizens come up.  We've asked
 
         22       that they limit their comments to 1 to
 
         23       2 minutes.
 
         24            Beginning would be Richard Moore, and --
 
         25       representing St. George Plantation Homeowners
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
                            ADMINISTRATION COMMISSION
                                  March 25, 1997
                                                              23
 
          1       Association; and Tom Adams, homeowner.
 
          2            MR. MOORE:  Good morning Honorable members
 
          3       of the Cabinet.  My name is Richard Moore, for
 
          4       the record, and I represent the St. George
 
          5       Plantation Owners Association.
 
          6            The Owners Association strongly endorses
 
          7       the recommendation of the staff that the
 
          8       Administration Commission issue the draft final
 
          9       order which adopts the recommended order of the
 
         10       Administrative Law Judge finding that this small
 
         11       scale land use amendment for the resort village
 
         12       project to be invalid because it includes a use
 
         13       greater than 10 acres, and small scale
 
         14       amendments can only be used for developments
 
         15       less than 10 acres.
 
         16            I would urge that the Administration
 
         17       Commission also adopt paragraph 28 of the
 
         18       recommended order, which is stricken under the
 
         19       draft final order.  All paragraph 28 does is to
 
         20       recognize in 1995 that FLAWAC -- the 1995 FLAWAC
 
         21       order resolves the issue of vested rights for
 
         22       this development.
 
         23            There was no adjudication at the hearing,
 
         24       it was more of a -- in the line of a judicial
 
         25       recognition of the earlier 1995 order.  I would
 
 
 
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          1       urge that this paragraph be retained.
 
          2            I would like to, at this point, to reserve
 
          3       my remaining time, if I may, to respond to any
 
          4       criticisms of this draft final order that other
 
          5       individuals may make -- may make, if that's
 
          6       appropriate from the Cabinet members to do that.
 
          7            SECRETARY MORTHAM:  It's appropriate.
 
          8            Does anyone have questions?
 
          9            MR. MOORE:  And I will answer questions,
 
         10       too, now or then.
 
         11            SECRETARY MORTHAM:  Okay.
 
         12            MR. MOORE:  Thank you very much.
 
         13            SECRETARY MORTHAM:  Next speaker.
 
         14            MR. ADAMS:  My name is Tom Adams.
 
         15            I'm merely here to affirm and request that
 
         16       you enter the adopted order.  This is something
 
         17       that we brought before the County, and asked
 
         18       them to recognize at the time of the hearing
 
         19       that what was being done was inappropriate.
 
         20            We respectfully request that you enter that
 
         21       order.
 
         22            Thank you.
 
         23            SECRETARY MORTHAM:  Thank you.
 
         24            MS. SITTIG:  Okay.  Representing the -- the
 
         25       other side would be Raymond Williams, Chair of
 
 
 
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          1       the Franklin County Commission; Alan Pierce,
 
          2       planner for Franklin County; and
 
          3       Dr. Ben Johnson, Intervenor, owner, and
 
          4       developer.
 
          5            MR. PIERCE:  Good morning, I'm Alan Pierce,
 
          6       the County planner for Franklin County.  And
 
          7       Chairman of the Board, Raymond Williams, is with
 
          8       me this morning, but I'm going to be speaking on
 
          9       behalf of the Board.
 
         10            On March 4th, 1997, the Franklin County
 
         11       Board of County Commissioners held a public
 
         12       hearing to consider amending the
 
         13       Tenth Amendment, as the Governor and Cabinet
 
         14       requested that we do.
 
         15            The Board heard testimony from all sides,
 
         16       and from many members of the public, including
 
         17       Mr. Tom Adams and Mr. Richard Moore.
 
         18            They also heard from Mr. Shaw Stiller, a
 
         19       DCA attorney, who said that while the Department
 
         20       had appealed the Tenth Amendment, the Department
 
         21       was satisfied that their settlement with
 
         22       Mr. Johnson covered all the state and regional
 
         23       issues, and he encouraged the Board to amend the
 
         24       Tenth Amendment by adding specific language that
 
         25       was part of the DCA Johnson settlement
 
 
 
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          1       agreement.
 
          2            Mr. Stiller added two additional changes he
 
          3       suggested the Board adopt.  The Board then heard
 
          4       statements from Mr. Johnson regarding the
 
          5       development, and Mr. Johnson offered two more
 
          6       changes to the Tenth Amendment that had been
 
          7       discussed at some settlement negotiations that I
 
          8       had chaired.
 
          9            The County Attorney, Mr. Alfred Shuler, and
 
         10       myself, both recommended that the Board approve
 
         11       the suggested changes.
 
         12            As I told the Board and the audience in my
 
         13       closing remarks at the public hearing, the Board
 
         14       has an obligation to perform the duties that are
 
         15       expected of local government.  And those
 
         16       duties -- excuse me -- and those duties include
 
         17       the approval or denial of development orders and
 
         18       permits.
 
         19            By approving this development in phases,
 
         20       the Board is trying to strike a compromise that
 
         21       may be unappreciated by some of the parties
 
         22       involved in this very bitter controversy.
 
         23            The Board is trying to abide by the
 
         24       development order that was issued in 1977, that
 
         25       granted conceptual approval to commercial
 
 
 
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          1       development of property now owned by
 
          2       Mr. Johnson.  And at the same time, do it in a
 
          3       way that does not relinquish the Board's control
 
          4       over the project.
 
          5            The Board is not asking the Governor and
 
          6       Cabinet to decide what is good for
 
          7       Franklin County.  The Board is not asking that
 
          8       an administrative judge rule on what is good for
 
          9       Franklin County.  All the Board is asking is
 
         10       that the State provide the Board the best
 
         11       administrative and regulatory assistance that it
 
         12       can, and then support the local government when
 
         13       it makes a very difficult decision, which is
 
         14       based, at least in part, upon the State's own
 
         15       advice.
 
         16            I believe this is what has happened as
 
         17       the Board did approve a revised
 
         18       Tenth Amendment.  And I support what the Board
 
         19       has done.
 
         20            I now ask that the Governor and Cabinet
 
         21       support the Board by adopting your own staff's
 
         22       recommendations on the issues related to Resort
 
         23       Village Development.
 
         24            And I'm here to answer any questions.
 
         25            SECRETARY MORTHAM:  Any questions?
 
 
 
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          1            TREASURER NELSON:  The specific motion that
 
          2       is in front of us, Madam Secretary, is what?
 
          3            SECRETARY MORTHAM:  I don't think we have a
 
          4       motion yet on the table.
 
          5            COMMISSIONER CRAWFORD:  We have a
 
          6       recommendation.
 
          7            MS. SITTIG:  I'll read the recommendation.
 
          8            It's requested authorization to enter the
 
          9       amended draft final order.
 
         10            SECRETARY MORTHAM:  A motion would be in
 
         11       order, however.
 
         12            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         13            SECRETARY MORTHAM:  Motion.
 
         14            COMPTROLLER MILLIGAN:  Second.
 
         15            SECRETARY MORTHAM:  Motion and second.
 
         16            Any discussion?
 
         17            Any objection?
 
         18            Approved unanimously.
 
         19            ATTORNEY GENERAL BUTTERWORTH:
 
         20       Madam Secretary --
 
         21            SECRETARY MORTHAM:  Yes.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  -- if I can
 
         23       just refer back to Item number 5 on the
 
         24       Administration Commission agenda, which we're
 
         25       still on, that has to deal with creating a
 
 
 
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          1       number of positions in the Tenth Judicial
 
          2       Circuit for the State Attorney in order to
 
          3       handle child support enforcement with a contract
 
          4       with the Department of Revenue.
 
          5            I believe this is going into effect fairly
 
          6       quickly.  Of course, it needs the Governor's
 
          7       support to do this.
 
          8            If there's no objection up here,
 
          9       Madam Secretary, I believe I would probably be
 
         10       able to work -- I have a number of reserved
 
         11       positions the Legislature gave me.
 
         12            I may -- if this is a time sensitive thing,
 
         13       I may be able to transfer my positions over to
 
         14       the local State Attorney on a temporary basis so
 
         15       he can fill these.
 
         16            But if there's no objection on the
 
         17       Administration Commission, I will contact the
 
         18       Governor's Office, and see if they wish to go
 
         19       that way until we can take a vote on the issue.
 
         20            SECRETARY MORTHAM:  Is there any
 
         21       objection?
 
         22            COMMISSIONER BROGAN:  No formal action
 
         23       required?
 
         24            ATTORNEY GENERAL BUTTERWORTH:  No formal
 
         25       action required of mine, no.
 
 
 
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          1            SECRETARY MORTHAM:  Very good.
 
          2            (The Administration Commission Agenda was
 
          3       concluded.)
 
          4                             *
 
          5
 
          6
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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          1            MS. SITTIG:  Okay.  The Florida Land and
 
          2       Water Adjudicatory Commission.
 
          3            Item 1, request approval of the minutes of
 
          4       the March 11, 1997, Commission meeting.
 
          5            COMMISSIONER BROGAN:  Move approval.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          7            COMPTROLLER MILLIGAN:  Second.
 
          8            SECRETARY MORTHAM:  Moved and seconded.
 
          9            Without objection, approved.
 
         10            MS. SITTIG:  Item 2, request authorization
 
         11       to enter the draft order of dismissal.
 
         12            We again have some individuals.  Each side
 
         13       would like to speak.  We've asked that they
 
         14       limit it per side 10 minutes.
 
         15            And we also have a few citizens who would
 
         16       also like to speak 1 to 2 minutes.  We would ask
 
         17       that they limit their comments.
 
         18            SECRETARY MORTHAM:  I did something that I
 
         19       really shouldn't have done.
 
         20            Is Rep-- okay.  Representative Albright is
 
         21       here.  He's waiting diligently to go back to the
 
         22       Legislature, and I'd like to request that we
 
         23       take up one other item, since this one looks
 
         24       like it could be a little lengthy.
 
         25            If we could go over to Trustees.
 
 
 
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          1            (The Florida Land and Water Adjudicatory
 
          2       Commission Agenda was continued.)
 
          3                             *
 
          4
 
          5
 
          6
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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          1            MR. GREEN:  I believe, Madam Secretary,
 
          2       it's Item number 6 on the Trustees agenda.
 
          3            SECRETARY MORTHAM:  It is.  Thank you very
 
          4       much.
 
          5            MR. GREEN:  Yes.  It's consideration of
 
          6       adoption of Section 18-20.018 of the Florida
 
          7       Administrative Codes that deals with standards
 
          8       for docking facilities in the Lake Weir Aquatic
 
          9       Preserve.
 
         10            And we have two speakers:
 
         11       Representative Albright and Jane Sands.
 
         12            MS. SANDS:  Madam Chairman, and members of
 
         13       the Cabinet, my name is Jane Sands.
 
         14            My name is Jane Sands, and I live at
 
         15       Oklawaha, Florida, on Lake Weir.  I'm Chairman
 
         16       of the Governmental Affairs for Save Lake Weir
 
         17       organization.  We have over 450 members.  Our
 
         18       organization is totally behind this change.
 
         19            In 1987, Lake Weir was taken into the
 
         20       aquatic preserve.  No -- none of the residents
 
         21       of the lake and members were really aware of
 
         22       what all of the rules of being an aquatic
 
         23       preserve entailed.
 
         24            About a year later, people started trying
 
         25       to build a dock and a boathouse similar to the
 
 
 
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          1       ones that we had been used to.  These permits
 
          2       were all denied.
 
          3            We -- it was suggested that we get a
 
          4       special act to correct this problem, legislation
 
          5       was proposed, it went through the Senate with a
 
          6       32-nothing approval.  And it was stopped in the
 
          7       House under a procedural defect.
 
          8            Then we have tried for eight years to work
 
          9       through DEP to resolve this problem.
 
         10            Finally, through a legislative act now
 
         11       saying that DEP will write special rules for --
 
         12       fresh water aquatic rules, we have a solution at
 
         13       hand for our dilemma.
 
         14            We do hope that you will approve this
 
         15       particular amendment to the rules, because it
 
         16       will allow people to build a covered boat slip
 
         17       and a dock similar to the ones that have been
 
         18       built on the dock -- on the lake before.
 
         19            Ones that we think -- and we hope you will
 
         20       also approve an amendment to this act on
 
         21       Section 6(a) that says the main access dock
 
         22       shall be limited to a maximum width of 5 feet
 
         23       instead of 4 feet.
 
         24            We feel for the safety of children, for
 
         25       older people, that we should have a 5 foot
 
 
 
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          1       dock -- width dock.  In this act, they have
 
          2       allowed the main access dock for multislip docks
 
          3       to be 6 feet in width.
 
          4            So we think that the private single family
 
          5       dock should have at least a 5 foot width for
 
          6       safety and stability reasons.
 
          7            This has been an eight-year long thing that
 
          8       we have been going through with perseverance and
 
          9       patience in trying to get this done.  We've had
 
         10       many public hearings, and over two or
 
         11       three hundred people have turned out for these,
 
         12       and all are in favor of this.
 
         13            We respectfully hope that you will
 
         14       entertain a motion to pass this, as it is with
 
         15       the 6 foot -- the 5 foot wide dock.
 
         16            Thank you very much.
 
         17            SECRETARY MORTHAM:  Thank you very much.
 
         18       And thank you for all of your hard work.
 
         19            Representative Albright?
 
         20            REPRESENTATIVE ALBRIGHT:  Thank you,
 
         21       Madam Chair.  And thank you for taking me up.  I
 
         22       have important things to vote on upstairs.
 
         23            SECRETARY MORTHAM:  I know.
 
         24            REPRESENTATIVE ALBRIGHT:  Yes.  I know
 
         25       you know that.
 
 
 
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          1            I just wanted to make sure you all know for
 
          2       the record that Lake Weir and Lake Jackson are
 
          3       the only aquatic preserve lakes in the state
 
          4       that have a set of regulations on them that are
 
          5       more stringent than all the rest of the
 
          6       thousands of lakes.
 
          7            And this just moves back towards that
 
          8       standard, but none of the -- the -- anything in
 
          9       this moves beyond that standard that's already
 
         10       set for all the rest of the thousands of lakes
 
         11       there.
 
         12            So I think that is very important.
 
         13            The -- there's about 350 docks totally.
 
         14       Ninety percent of the docks were built prior to
 
         15       '88 when the aquatic preserve designation was
 
         16       going on.  So that means only 10 percent have
 
         17       been built under the newer standards.
 
         18            So going back to something similar to
 
         19       pre-'88 would just really not even show up on
 
         20       the radar screen, plus the fact that we think
 
         21       that -- our best guesstimate, there are only
 
         22       going to be 20 or 30 docks more built on the
 
         23       lake.  The lake is effectively built out from a
 
         24       dock situation.
 
         25            There are very few enclosed boathouses and
 
 
 
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          1       screen porches on the lake, but there are a few
 
          2       people that would like to build screen porches,
 
          3       and enclose boathouses on there.
 
          4            As I've told you, there'll only be a few
 
          5       more docks.  The rule is silent to that.  But it
 
          6       is our intent that Save Lake Weir, and my intent
 
          7       that this would be permittable from the
 
          8       situation because, number one, it's had -- shown
 
          9       to have no environmental degradation, the fact
 
         10       it should be just several at best.
 
         11            SECRETARY MORTHAM:  Thank you very much.
 
         12            REPRESENTATIVE ALBRIGHT:  Thank you.
 
         13            COMPTROLLER MILLIGAN:  Madam Secretary --
 
         14            SECRETARY MORTHAM:  Yes.
 
         15            COMPTROLLER MILLIGAN:  -- in the interest
 
         16       of moving this along, I would like to move the
 
         17       item with one amendment.
 
         18            I would amend paragraph 6(a) of the rule to
 
         19       authorize private residential single family main
 
         20       access docks to be constructed to a maximum
 
         21       width of 5 feet.
 
         22            COMMISSIONER BROGAN:  Second the motion.
 
         23            SECRETARY MORTHAM:  Okay.  It's been moved
 
         24       and seconded.
 
         25            Any discussion?
 
 
 
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          1            I just have one quick question.
 
          2            Under the proposed rule, it is silent on
 
          3       the placement of screened areas on terminal
 
          4       platforms and the placement of partial
 
          5       enclosures on the boat shelters.
 
          6            Does this mean they are prohibited?  And
 
          7       obviously I don't wish to authorize totally
 
          8       enclosed dwellings.  But I do think that
 
          9       screened gazebos absent of any negative impact
 
         10       should, in fact, be approved subject to the
 
         11       environmental impact.
 
         12            REPRESENTATIVE ALBRIGHT:  Yes, ma'am.
 
         13       Madam Secretary, we in no way want to have
 
         14       permanent living quarters out there on the
 
         15       lake.  But it is our intention to have enclosed
 
         16       boathouses and screened gazebos permitted.
 
         17            SECRETARY MORTHAM:  Okay.  And is that the
 
         18       way staff sees it, too?  Because we want to make
 
         19       sure this is on the record.
 
         20            MR. CRAFT:  Yes, ma'am.
 
         21            SECRETARY MORTHAM:  Okay.  Thank you.
 
         22            With no further discussion, and no
 
         23       objection, passes unanimously.
 
         24            REPRESENTATIVE ALBRIGHT:  Thank you.
 
         25            And, Madam Chair, I would be remiss to
 
 
 
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          1       not -- to thank you all, and also DEP.  They
 
          2       have been absolute marvels through this.
 
          3            And we're going to send Jeremy Craft to the
 
          4       Israeli peace process talks now that he's
 
          5       finished this job.  It was of the same
 
          6       magnitude.
 
          7            SECRETARY MORTHAM:  Thank you,
 
          8       Representative Albright.  And I'm anxious for
 
          9       you to get back to your --
 
         10            REPRESENTATIVE ALBRIGHT:  Yes, I have --
 
         11            SECRETARY MORTHAM:  -- your button.
 
         12            REPRESENTATIVE ALBRIGHT:  -- things to
 
         13       do --
 
         14            COMMISSIONER BROGAN:  Back to work.
 
         15            SECRETARY MORTHAM:  If we could go ahead
 
         16       and finish the Board of Trustees agenda, and
 
         17       going back to Item 1.
 
         18            MR. GREEN:  Great.
 
         19            Item 1 is a request to consider an option
 
         20       agreement to acquire 177 acres in the
 
         21       Belle Meade --
 
         22            COMMISSIONER BROGAN:  Move --
 
         23            MR. GREEN:  -- CARL Project.
 
         24            COMMISSIONER BROGAN:  -- approval.
 
         25            COMPTROLLER MILLIGAN:  Second.
 
 
 
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          1            SECRETARY MORTHAM:  Moved and seconded.
 
          2            Without objection, approved.
 
          3            MR. GREEN:  Item 2 is a purchase agreement
 
          4       to acquire 82 acres in Belle Meade, and a survey
 
          5       waiver.
 
          6            COMMISSIONER BROGAN:  Move approval.
 
          7            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          8            SECRETARY MORTHAM:  Moved and seconded.
 
          9            Without objection, approved.
 
         10            MR. GREEN:  Substitute Item 3 is acceptance
 
         11       of assignment of a purchase agreement to acquire
 
         12       11 acres in the Lake Wales Ridge Project.
 
         13            COMMISSIONER BROGAN:  Move approval.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         15            SECRETARY MORTHAM:  Moved and seconded.
 
         16            Without objection, approved.
 
         17            MR. GREEN:  Substitute Item 4 is
 
         18       consideration of an acceptance of an assignment
 
         19       of an option agreement to acquire 40 acres in
 
         20       the Lake Wales Ridge Project.
 
         21            COMMISSIONER BROGAN:  Move approval.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         23            SECRETARY MORTHAM:  Moved and seconded.
 
         24            Without objection, approved.
 
         25            MR. GREEN:  Item 5 is consideration of an
 
 
 
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          1       option agreement to acquire 63 acres in the
 
          2       Dade County Archipelago Project.
 
          3            COMMISSIONER BROGAN:  Move the item.
 
          4            COMPTROLLER MILLIGAN:  And seconded.
 
          5            SECRETARY MORTHAM:  Moved and seconded.
 
          6            Without objection, approved.
 
          7            MR. GREEN:  Thank you.
 
          8            SECRETARY MORTHAM:  Thank you.
 
          9            (The Board of Trustees of the Internal
 
         10       Improvement Trust Fund Agenda was concluded.)
 
         11                             *
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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          1            SECRETARY MORTHAM:  Okay.  We're back to
 
          2       FLAWAC.
 
          3            MS. SITTIG:  If we could go back to Item 2
 
          4       again.  We had a transposition.  The
 
          5       recommendation for Item 2 is request denial of
 
          6       the motions to intervene and take no action on
 
          7       the motion to dismiss.
 
          8            And we do have speakers on both sides of
 
          9       this.  We've asked each side to do the
 
         10       10 minutes, and then we have two citizen
 
         11       speakers who would like to do 1 to 2 minutes
 
         12       each.
 
         13            To begin, we've got Richard Moore
 
         14       representing the St. George Plantation
 
         15       Homeowners Association, a petition to intervene;
 
         16       and Tom Adams, homeowner, also petition to
 
         17       intervene.
 
         18            SECRETARY MORTHAM:  Okay.  And if you would
 
         19       keep track of the time, because our items after
 
         20       this are rather lengthy.
 
         21            MR. MOORE:  Honorable members of the
 
         22       Cabinet, good morning once again.  And for the
 
         23       record, I am Richard Moore, representative for
 
         24       the St. George Plantation Owners Association.
 
         25            The recommendation of FLAWAC today is to
 
 
 
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          1       take no action on the motion to dismiss, and
 
          2       I -- I take it by virtue of that, no action on
 
          3       the DCA Johnson settlement, but to dismiss the
 
          4       motions or petitions to intervene filed by the
 
          5       Owners Association and Tom Adams.  The
 
          6       Owners Association believes this decision is
 
          7       wrong for a number of reasons.
 
          8            First, the Administration Commission has
 
          9       found that the small scale land use amendment
 
         10       for this development not to be in compliance
 
         11       with the Franklin County Comprehensive -- not to
 
         12       be in compliance with State statutes.
 
         13            Therefore, it is invalid, and it is now
 
         14       inconsistent with the underlying land use of
 
         15       that development, which is residential.
 
         16            That being so, the Tenth Amendment and
 
         17       the -- the amended Tenth Amendment, which was
 
         18       done on March 4th, are inconsistent with the
 
         19       underlying land use, and inconsistent with that
 
         20       Comprehensive Plan, and should be found invalid
 
         21       also, or at least remanded back down to the
 
         22       County to have to be readopted as part of doing
 
         23       a full scale land use amendment.
 
         24            And I'll get to that real -- a little more
 
         25       in detail in just a second.
 
 
 
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          1            But it brings us to the really second issue
 
          2       that we've raised all along.  The DCA appeal --
 
          3       the settlement of the DCA appeal does not
 
          4       address the issues that were raised in the DCA
 
          5       appeal to begin with.
 
          6            One of DCA's main -- Department of
 
          7       Community Affairs' main contention was that this
 
          8       was a 14.6 acre development, not a 9.6 acre
 
          9       development.
 
         10            In the settlement agreement, that is now
 
         11       recognized.  Everybody now recognizes that this
 
         12       is a 14.6 acre development.
 
         13            Even -- even if you consider that the land
 
         14       use amendment was valid, it was only for 9.6.
 
         15       So there's still an inconsistency with that
 
         16       underlying land use, and should find the
 
         17       Tenth Amendment per se invalid, and at least be
 
         18       remanded down to the County to be readopted with
 
         19       the full scale amendment.
 
         20            Finally, the Owners Association timely
 
         21       raised additional issues in its petition to
 
         22       intervene.  We timely filed that petition.  We
 
         23       filed that petition five days after DCA filed
 
         24       its Notice of Appeal.  And under the statute, we
 
         25       raised additional issues which we were allowed
 
 
 
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          1       to do under the statute.  And we did that timely
 
          2       also, also within that five-day period.
 
          3            Although the Owners Association has
 
          4       diligently tried to resolve these issues with
 
          5       the developer, and we will continue to try to
 
          6       resolve those issues, we have submitted three
 
          7       proposals to the developer to try to resolve
 
          8       these issues through a limitation on the
 
          9       commercial development density.  We will
 
         10       continue to do that.
 
         11            But they have not been resolved, and they
 
         12       ought to be afforded their due litigation before
 
         13       the Department of Administrative Hearings.
 
         14            I will make one last point.  If you
 
         15       consider that the Owners Association's challenge
 
         16       to the small scale land use amendment --
 
         17            (Commissioner Crawford exited the room.)
 
         18            MR. MOORE:  -- which was just heard by the
 
         19       Administration Commission, in that proceeding,
 
         20       Dr. Johnson, the developer, intervened.  We did
 
         21       not object to his intervention, because we
 
         22       realize that he is affected by our action.
 
         23            Yet when the Owners Association attempts to
 
         24       intervene in a proceeding that affects it just
 
         25       as much as that proceeding affected Dr. Johnson,
 
 
 
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          1       we're oppos-- our intervention is opposed, and
 
          2       we are cut short of full intervention by this
 
          3       DCA appeal -- or DCA settlement with the
 
          4       developer.
 
          5            I would say in -- in fairness, our
 
          6       petitions to intervene ought to be granted.
 
          7            I think there's only two actions that
 
          8       FLAWAC should take today.  One is either to
 
          9       grant the petitions to intervene, and send the
 
         10       DCA appeal down to DOAH; or to find the
 
         11       Tenth Amendment and revised Tenth Amendment
 
         12       invalid based upon the inconsistency with the
 
         13       underlying land use, as found by the
 
         14       Administration Commission.
 
         15            This will do two things:  This will ensure
 
         16       the integrity -- this last will ensure the
 
         17       integrity of the growth management process by
 
         18       making the development order be consistent with
 
         19       the Comprehensive Plan by making it go down to
 
         20       the County and be reenacted or readopted by the
 
         21       County.
 
         22            And also it will make the Comprehensive
 
         23       Plan --
 
         24            (Commissioner Crawford entered the room.)
 
         25            MR. MOORE:  -- be changed prior to the
 
 
 
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          1       adoption of the development order, which is the
 
          2       other -- other kind of cardinal rule in growth
 
          3       management and land use, that you change your
 
          4       land use before you adopt a development order.
 
          5            Once again, this will not delay the project
 
          6       any more than it is already.  Franklin County
 
          7       has already moved to rescind the small scale
 
          8       amendment and go through the full scale
 
          9       amendment process.
 
         10            So all this can be done during the time
 
         11       that that full scale amendment process has to go
 
         12       through its course of two public hearings and
 
         13       review by DCA.
 
         14            I would just urge that our motions -- that
 
         15       our motions to intervene be granted and not
 
         16       denied at this point in time.
 
         17            And I'll answer any questions that y'all
 
         18       may have.
 
         19            SECRETARY MORTHAM:  Any questions?
 
         20            Okay.
 
         21            MR. MOORE:  Thank you very much.
 
         22            SECRETARY MORTHAM:  Thank you.
 
         23            MR. ADAMS:  Tom Adams.
 
         24            I am one of the intervenors.  I come to you
 
         25       today as the voice of the public.  To be denied
 
 
 
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          1       intervention basically silences the public with
 
          2       respect to this issue.
 
          3            I have brought you and the Aides compelling
 
          4       evidence that this area is subject to severe
 
          5       flooding, and the proposed storm water system is
 
          6       not going to work.
 
          7            I urge you not to simply dismiss the public
 
          8       interest and allow our petitions to intervene to
 
          9       go forward.
 
         10            There are other constraining factors, too.
 
         11       They have to do with the Comprehensive Plan.
 
         12       And it's important that all of the documents
 
         13       that were passed on October 3rd be invalidated
 
         14       by the former action that you just took, which
 
         15       was to affirm the hearing officer's order that
 
         16       the -- this is a large scale amendment, not a
 
         17       small scale amendment.
 
         18            The only entry I have as a public
 
         19       participant is through the intervention
 
         20       process.  I would urge you not to dismiss that
 
         21       appeal.
 
         22            Thank you.
 
         23            SECRETARY MORTHAM:  Thank you.
 
         24            MS. SITTIG:  Okay.  The folks to speak on
 
         25       the other side would be Stephanie Kruer, the
 
 
 
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          1       General Counsel for DCA; Raymond Williams, Chair
 
          2       of the Franklin County Commission; Alan Pierce,
 
          3       Planner for Franklin County; and
 
          4       Dr. Ben Johnson, owner and developer.  They
 
          5       would have 10 minutes in total.
 
          6            SECRETARY MORTHAM:  Thank you.
 
          7            MS. KRUER:  Good morning, members of the
 
          8       Commission.  I'm Stephanie Kruer, General
 
          9       Counsel for the Department of Community Affairs.
 
         10            In the case before you, Franklin County has
 
         11       approved an amended development order that the
 
         12       Department feels adequately addresses the state
 
         13       and regional issues that were raised in our
 
         14       original appeal of the development order.
 
         15            And at this time, the County is also going
 
         16       forward to repeal the ordinance that adopted the
 
         17       small scale amendment, and instead, adopt a
 
         18       large scale, or full scale amendment to
 
         19       incorporate the entire project parcel.
 
         20            So at this time, the Department feels that
 
         21       the state and regional issues have been
 
         22       addressed by the amended development order
 
         23       that's been approved by the local government.
 
         24            And we'll be watching very closely with
 
         25       Franklin County, and working closely with both
 
 
 
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          1       Franklin County and the Department of
 
          2       Environmental Protection, to ensure that the
 
          3       provisions in the amended development order
 
          4       related to the protection of the natural
 
          5       resources on the site are, in fact, followed,
 
          6       and are, in fact, enforced.
 
          7            So at this time, we support the position to
 
          8       not approve the petitions of the intervenors.  I
 
          9       will note for you that the intervenors have
 
         10       another right of access to have these issues put
 
         11       in a judicial forum for consideration and
 
         12       ruling.
 
         13            There are other avenues available to, and
 
         14       being used by the intervenors at this time to
 
         15       take advantage of that process so that any
 
         16       additional local issues can be appropriately
 
         17       addressed by the courts.
 
         18            Be glad to answer any questions.
 
         19            SECRETARY MORTHAM:  Questions?
 
         20            Okay.
 
         21            MS. KRUER:  Thank you.
 
         22            SECRETARY MORTHAM:  Thank you.
 
         23            MR. PIERCE:  Again, I'm Alan Pierce,
 
         24       Franklin County Planner, and the Chairman of the
 
         25       Board is here with me.
 
 
 
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          1            I don't have any additional things to say.
 
          2       I didn't realize we were going to separate these
 
          3       in two different motions, so I've already spoken
 
          4       for the County what we believe is appropriate.
 
          5            And if you have any questions, I'll be glad
 
          6       to answer them.
 
          7            SECRETARY MORTHAM:  Thank you very much.
 
          8            MR. JOHNSON:  Thank you.  I'm Ben Johnson,
 
          9       the owner of the property.
 
         10            I would urge you to adopt the staff
 
         11       recommendation.  Each and every one of the
 
         12       concerns raised by the proposed intervenors have
 
         13       been fully resolved to DCA's satisfaction
 
         14       through the stipulation and settlement agreement
 
         15       which we signed, and through the County's
 
         16       revisions to the Tenth Amendment to the 1977
 
         17       development order, which were just recently
 
         18       adopted in a public hearing in Franklin County.
 
         19            DCA made it very clear during that public
 
         20       hearing, and in its pleadings submitted to you,
 
         21       that all of the state and regional issues
 
         22       regarding Phase I of my project have been fully
 
         23       and adequately resolved, and all potential
 
         24       impacts have been adequately mitigated.
 
         25            Likewise, the Franklin County Board of
 
 
 
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          1       County Commissioners has made it clear through
 
          2       their actions that the substantive objections to
 
          3       my project have been adequately addressed and
 
          4       resolved to the local government's satisfaction.
 
          5            And I recognize that the Plantation Owners
 
          6       Association and Mr. Adams are asking you to not
 
          7       adopt the staff recommendation, and to instead
 
          8       send me to DOAH, or perhaps remand me back to
 
          9       Franklin County, for a time consuming and costly
 
         10       process in either case; processes which
 
         11       I believe are completely unnecessary and
 
         12       inappropriate under these circumstances.
 
         13            Both the Plantation Owners and Mr. Adams
 
         14       have been very active throughout the nearly
 
         15       two-year process, which culminated in the
 
         16       revised Tenth Amendment, and they have actively
 
         17       participated in all of the various public
 
         18       workshops, public meetings, and public hearings
 
         19       held during this period.
 
         20            And they have repeatedly voiced their
 
         21       concerns and arguments to both the local
 
         22       officials and to the regional and state
 
         23       officials throughout this two-year period.
 
         24            While my opponents may argue that no harm
 
         25       is done by sending my project through yet
 
 
 
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          1       another review process, it will result in
 
          2       lengthy delays and unnecessary additional
 
          3       expense for a project that I believe has already
 
          4       been studied to death.
 
          5            If you were to request -- to grant their
 
          6       request, you'll potentially be sending me back
 
          7       to DOAH for what would actually be the fifth or
 
          8       sixth time in a very few years.
 
          9            The Florida Legislature did not give my
 
         10       opponents the right to appeal the
 
         11       Tenth Amendment, nor did the Legislature create
 
         12       a mandatory opportunity for my opponents to
 
         13       intervene into an appeal of this type.
 
         14            Instead, the Legislature recognized that in
 
         15       some cases, the interest of justice can best be
 
         16       served by giving the limited right of appeal to
 
         17       DCA with the expectation that DCA will use sound
 
         18       judgment in determining when enough is enough;
 
         19       and when the state and regional issues have been
 
         20       adequately resolved; and when, therefore, a
 
         21       project should be allowed to move forward.
 
         22            I would ask you to approve the staff
 
         23       recommendation.
 
         24            I'll be happy to answer any questions you
 
         25       may have.
 
 
 
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          1            SECRETARY MORTHAM:  Any questions?
 
          2            Thank you.
 
          3            MS. SITTIG:  Okay.  We have two citizens
 
          4       who would like to speak.  We've asked that they
 
          5       limit their comments to no more than 2 minutes
 
          6       per speaker.
 
          7            The first one is Charlie Manos; the second
 
          8       one, Philip Froelick.  They are both Homeowner
 
          9       Association Board members.
 
         10            DR. MANOS:  Good morning Honorable members
 
         11       of the Commission.
 
         12            My name is Dr. Charlie Manos, and I am a
 
         13       Director on the Board of the Plantation Owners
 
         14       Association.
 
         15            I'm also an environmental chemist with over
 
         16       20 years of experience in the measurement of
 
         17       pollutant transport in the environment.  And as
 
         18       an environmental scientist, I have significant
 
         19       concerns about the environmental impact of this
 
         20       proposed development.
 
         21            But I want to assure the Commission that
 
         22       these concerns which are assured by the
 
         23       community are not a knee jerk, not in my
 
         24       backyard reaction against development of any
 
         25       kind.
 
 
 
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          1            I have here with me three different
 
          2       proposed settlement agreements, each drafted by
 
          3       the Plantation Owners Association, and each
 
          4       submitted to Ben Johnson, intended to limit
 
          5       environmental impact by providing an appropriate
 
          6       level of development.
 
          7            The fourth POA proposal, presented earlier
 
          8       this month, requests that both parties make use
 
          9       of a professional mediator to facilitate
 
         10       resolution of these issues.
 
         11            We want to assure that appropriate
 
         12       development takes place, and I ask that this
 
         13       Commission not deny the POA's petition to
 
         14       intervene.
 
         15            Thank you.
 
         16            SECRETARY MORTHAM:  Thank you.
 
         17            DR. FROELICK:  Good morning.  My name is
 
         18       Dr. Phil Froelick.  I'm Professor and Chair of
 
         19       the School of Earth and Atmospheric Sciences at
 
         20       Georgia Institute of Technology in Atlanta.  I'm
 
         21       also a homeowner in the St. George Plantation on
 
         22       St. George Island for over six years.
 
         23            Last year I was elected to the Board of
 
         24       Directors of the St. George Plantation, with
 
         25       over 95 percent of the votes as an environmental
 
 
 
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          1       scientist to try to provide some expert advice,
 
          2       and to try to help evaluate the environmental
 
          3       impact of the Resort Village.
 
          4            I only became aware of the problems after I
 
          5       learned that Florida DEP had permitted the
 
          6       advanced wastewater treatment plant with
 
          7       subsurface percolation last year.
 
          8            My background is 27 years as an
 
          9       oceanographer and a chemist, on the faculties of
 
         10       Florida State University, Columbia University in
 
         11       New York, and now at Georgia Tech.
 
         12            I've published in scientific journals, many
 
         13       of them about Florida bays and estuaries and
 
         14       rivers on the Gulf Coast.
 
         15            Yesterday we convened a workshop in
 
         16       Apalachicola.  I brought together six scientists
 
         17       from the University of South Florida, from
 
         18       Florida State University, and from Georgia Tech;
 
         19       two people from the Northwest Florida
 
         20       Water Management District, to try to evaluate
 
         21       the fresh water balance on St. George Island.
 
         22            The surficial aquifer on that island is
 
         23       the -- is the water into which the storm water
 
         24       run-off and the wastewater treatment will be
 
         25       percolated.
 
 
 
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          1            Unfortunately there's not a great deal
 
          2       known about it, but what we did manage to put
 
          3       together by the end of the day is that many of
 
          4       the plans and predictions that are made in the
 
          5       permitting process do have significant flaws,
 
          6       they have technical errors, all of which are
 
          7       related to the ultimate density of development
 
          8       that'll be allowed on a fairly fragile barrier
 
          9       island next to Apalachicola Bay and Nic's Hole,
 
         10       which is the nursery for Apalachicola Bay.
 
         11            I'd be willing to discuss that with any of
 
         12       you or your Aides.  I'll be -- take your
 
         13       questions if you wish.
 
         14            But my recommendation is to permit the
 
         15       intervention of POA so we can bring this
 
         16       evidence to light.
 
         17            Thank you.
 
         18            SECRETARY MORTHAM:  Thank you.
 
         19            MS. SITTIG:  Okay.  I would be glad to read
 
         20       the recomm-- staff recommendation again.
 
         21            SECRETARY MORTHAM:  Okay.
 
         22            MS. SITTIG:  That would be request denial
 
         23       of the motions to intervene, and take no action
 
         24       on the motion to dismiss.
 
         25            SECRETARY MORTHAM:  Is there a motion?
 
 
 
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          1            COMMISSIONER BROGAN:  Secretary, I move
 
          2       staff recommendation.
 
          3            I am sensitive to the issue of the
 
          4       intervenors, and I believe that there are at
 
          5       least two other venues for them to voice their
 
          6       concerns for the record as far as consideration
 
          7       is -- is concerned, that being the Court
 
          8       process, as well as the Comprehensive Plan
 
          9       amendment process.
 
         10            So I would move the staff recommendation.
 
         11            COMMISSIONER CRAWFORD:  I second the
 
         12       motion.
 
         13            SECRETARY MORTHAM:  It's been moved and
 
         14       seconded.
 
         15            Is there any discussion?
 
         16            TREASURER NELSON:  I just want to make sure
 
         17       that I understand.  This is basically
 
         18       authorizing the staff to enter a draft order of
 
         19       dismissal?
 
         20            SECRETARY MORTHAM:  Staff?
 
         21            MS. SITTIG:  This is Teresa Tinker with my
 
         22       office.
 
         23            MS. TINKER:  No, sir.  The amended staff
 
         24       recomm-- that was the original staff
 
         25       recommendation.
 
 
 
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          1            The amended staff recommendation before you
 
          2       today is to deny the two motions to intervene --
 
          3       the petitions to intervene, filed by the
 
          4       homeowners association, and Mr. Tom Adams, and
 
          5       not take any action today on DCA's motion to
 
          6       dismiss the case.
 
          7            So the case will remain in a pending state
 
          8       before the Florida Land and Water Adjudicatory
 
          9       Commission.
 
         10            TREASURER NELSON:  Well, what is the reason
 
         11       for staff wanting to hold this thing in
 
         12       abeyance?
 
         13            MS. TINKER:  The County is moving forward
 
         14       at this point to rescind the small scale
 
         15       Comprehensive Plan Amendment that you found --
 
         16       that the Administration Commission just found
 
         17       was not in compliance.  They've already taken
 
         18       action to rescind that and to replace it and to
 
         19       fix the land use to be consistent with what
 
         20       they're trying to do in the development order.
 
         21            We believe that the appropriate action
 
         22       today, and recommend to you, that we just keep
 
         23       the FLAWAC case pending, and give the County an
 
         24       opportunity to fix the Comprehensive Plan, and
 
         25       then we can look at the -- the other issue,
 
 
 
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          1       you know, how -- depending on how the progress
 
          2       goes with the Comprehensive Plan.
 
          3            SECRETARY MORTHAM:  So you're basically
 
          4       saying this will come back before this body.
 
          5            MS. TINKER:  It doesn't necessarily have to
 
          6       come back before the body.  If the
 
          7       Comprehensive Plan proceeding is going forward,
 
          8       and we believe that the County will adopt that
 
          9       at some point, then the Department of
 
         10       Community Affairs could actually file a
 
         11       voluntary dismissal of their appeal, because
 
         12       they believe their issues have been resolved.
 
         13            If they do that, then the Secretary of
 
         14       FLAWAC could simply dismiss the case, and you
 
         15       would never have to take any further action.
 
         16            SECRETARY MORTHAM:  Okay.
 
         17            COMPTROLLER MILLIGAN:  What is --
 
         18            SECRETARY MORTHAM:  Commissioner --
 
         19            TREASURER NELSON:  Why --
 
         20            Madam -- Madam Secretary, may I continue?
 
         21            SECRETARY MORTHAM:  Yes, you may.
 
         22            TREASURER NELSON:  Your staff
 
         23       recommendation was changed at 9:00 o'clock this
 
         24       morning.
 
         25            Can you tell me why the lateness of the
 
 
 
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          1       hour?
 
          2            MS. TINKER:  Well, what -- what we felt
 
          3       uncomfortable about -- and we've actually not
 
          4       felt comfortable about this all along.  So it
 
          5       wasn't a last minute change.  I know it appears
 
          6       that way to you.
 
          7            But from a staff perspective, we -- we did
 
          8       not feel comfortable this morning saying to you,
 
          9       go ahead and dismiss this, which means you are
 
         10       virtually approving the development that is
 
         11       inconsistent with the underlying
 
         12       Comprehensive Plan.
 
         13            We did not feel that would be the
 
         14       appropriate position for the Land and Water
 
         15       Commission to take today.
 
         16            So --
 
         17            TREASURER NELSON:  Why wouldn't that
 
         18       recommendation at least have surfaced yesterday,
 
         19       as opposed to this morning?
 
         20            MS. TINKER:  We actually did talk about it
 
         21       yesterday, sir, and I apologize that it got out
 
         22       so late.
 
         23            This has actually been bounced back and
 
         24       forth for several days now.  And we were trying
 
         25       to formulate the strongest position that you
 
 
 
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          1       could take.
 
          2            And I do apologize for the lateness of the
 
          3       staff recommendation.
 
          4            TREASURER NELSON:  Isn't this case rather
 
          5       unusual in that it keeps coming back and forth
 
          6       to the Cabinet, and back to the County, and back
 
          7       to the Cabinet?
 
          8            COMMISSIONER CRAWFORD:  That's a good
 
          9       point.
 
         10            TREASURER NELSON:  Can you give us some
 
         11       historical perspective?
 
         12            MS. TINKER:  Well, originally the
 
         13       development order was denied by Franklin County,
 
         14       and Mr. Johnson appealed that.  And that was the
 
         15       first time you saw it, on a recommended order of
 
         16       denial.
 
         17            And at that point, I believe the decision
 
         18       at this level was to give some deference to the
 
         19       local government and say fix this.  You know,
 
         20       clearly Mr. Johnson has some rights to go
 
         21       forward for some level of commercial development
 
         22       based on the 1977 DRI development order.
 
         23            But what you have had in front of you back
 
         24       then wasn't real clear, and it left a lot of
 
         25       questions as to the level of development that
 
 
 
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          1       could occur.  So you sent it back to the County.
 
          2            At that point, the County tried to fix it.
 
          3       And it also recognized that it needed a
 
          4       Comprehensive Plan amendment to go along with
 
          5       the DRI change.
 
          6            The County, according to the DOAH
 
          7       Hearing Officer, the Administrative Law Judge,
 
          8       interpreted it -- its Comprehensive Plan
 
          9       incorrectly in saying that it was a small scale
 
         10       amendment, and basically processed a small scale
 
         11       planned amendment, which did not include all the
 
         12       land that was necessary for the development.
 
         13            So the County took action to fix its
 
         14       Comprehensive Plan, to make the
 
         15       Comprehensive Plan say what they wanted to do in
 
         16       the development.  And they were challenged.
 
         17            The Administrative Law Judge confirmed
 
         18       that, yes, the County had taken the wrong steps
 
         19       in processing the small scale amendment, and has
 
         20       made a recommendation to the
 
         21       Administration Commission, which you have just
 
         22       accepted, to find that small scale plan
 
         23       amendment not in compliance.
 
         24            So now you're left with a plan amendment
 
         25       that's not in compliance, and a development
 
 
 
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          1       order that is not consistent with the land use
 
          2       in the Comprehensive Plan.
 
          3            So when we realized that we had that
 
          4       situation, we -- we felt like, well, okay, just
 
          5       go ahead and dismiss the development order
 
          6       because the state and regional issues have been
 
          7       resolved through the DCA, developer, local
 
          8       government negotiations, and settlement
 
          9       agreement.
 
         10            That seemed okay.  But the more we looked
 
         11       at it, the more we felt like it was not the
 
         12       correct action for the Governor and Cabinet to
 
         13       be taking.
 
         14            So instead of simply dismissing it today,
 
         15       we -- we just want to suggest that you go ahead
 
         16       and dismiss the -- or not accept the motions to
 
         17       intervene, but hold on to the development order
 
         18       a little while longer, and let's see what
 
         19       happens with the Comprehensive Plan.
 
         20            ATTORNEY GENERAL BUTTERWORTH:
 
         21       Madam Secretary --
 
         22            SECRETARY MORTHAM:  Just one second.
 
         23            Did you still have your question?
 
         24            COMPTROLLER MILLIGAN:  Yes,
 
         25       Madam Secretary.
 
 
 
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          1            I want to get a good clarification of the
 
          2       urgency then of denying the petitions to
 
          3       intervene.
 
          4            Why must we address that today, and not
 
          5       address the other motion?
 
          6            MS. TINKER:  You do not have to dismiss
 
          7       those motions to intervene today, or to deny
 
          8       them.  They can stay pending as well.
 
          9            The reason we're recommending that they be
 
         10       denied is because we believe that the settlement
 
         11       agreement and the supplement to the
 
         12       Tenth Amendment have addressed all the state and
 
         13       regional issues that need to be looked at
 
         14       through the DRI 380 process.
 
         15            And that the issues that the intervenors
 
         16       have raised have been resolved to the extent
 
         17       that they were state or regional in nature, and
 
         18       the local issues that were raised in those
 
         19       petitions can be addressed through other forums.
 
         20            COMMISSIONER BROGAN:  Secretary Mortham --
 
         21            SECRETARY MORTHAM:  Okay.  We've got
 
         22       General Butterworth, and then
 
         23       Commissioner Brogan.
 
         24            ATTORNEY GENERAL BUTTERWORTH:  As I
 
         25       understand it, the intervenors are not objecting
 
 
 
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          1       to your latest recommendation?
 
          2            MS. TINKER:  No, I believe the intervenors
 
          3       have objected to the part of the staff
 
          4       recommendation that would deny their petitions
 
          5       to intervene.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  Can --
 
          7       Mr. Johnson's not objecting, is he?
 
          8            MS. TINKER:  Mr. Johnson is not objecting,
 
          9       but he's not the intervenor.
 
         10            ATTORNEY GENERAL BUTTERWORTH:  Okay.  Now,
 
         11       what about -- I think -- what you're attempting
 
         12       to do, I guess, with your new recommendation is
 
         13       to have Item number 2 and Item number 3
 
         14       basically being the same, the same law, where
 
         15       you would have been inconsistent with your
 
         16       original recommendation if you had not changed
 
         17       it.
 
         18            MS. TINKER:  Yes, sir, that's correct.
 
         19            SECRETARY MORTHAM:  Commissioner Brogan?
 
         20            COMMISSIONER BROGAN:  Yes, ma'am.
 
         21            I just wanted to follow up along the same
 
         22       line of thinking.
 
         23            My understanding was that the reason for
 
         24       denying the intervenor status was, if I
 
         25       understood you correctly, now and prior to the
 
 
 
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          1       meeting --
 
          2            MS. TINKER:  Uh-hum.
 
          3            COMMISSIONER BROGAN:  -- was based on the
 
          4       fact that intervening at this particular level
 
          5       is no longer necessary based on the fact that --
 
          6       that all of those issues have been rectified at
 
          7       this level.
 
          8            However, intervenor status, based on the
 
          9       desire of the potential intervenors, would still
 
         10       be alive and well at at least possibly two other
 
         11       levels, as I mentioned earlier, where that
 
         12       intervening status would be more appropriately
 
         13       satisfied.
 
         14            Is -- did I --
 
         15            MS. TINKER:  Some of --
 
         16            COMMISSIONER BROGAN:  -- understand
 
         17       correctly?
 
         18            MS. TINKER:  -- some of their issues that
 
         19       they raised in their appeal have also been
 
         20       raised in other forums, Circuit Court,
 
         21       for example.
 
         22            COMMISSIONER BROGAN:  So between the --
 
         23            MS. TINKER:  And those --
 
         24            COMMISSIONER BROGAN:  -- court system --
 
         25            MS. TINKER:  -- would remain --
 
 
 
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          1            COMMISSIONER BROGAN:  -- the comprehensive
 
          2       plan amendment process, I understood that the
 
          3       intervenor status would be most appropriately
 
          4       housed in those two venues.
 
          5            MS. TINKER:  The Comprehensive Plan
 
          6       amendment process that the County's going
 
          7       through right now is an avenue for the inter--
 
          8       for the people who were trying to move to
 
          9       intervene, or anyone else in the County, to
 
         10       participate and have input into the
 
         11       Comprehensive Plan amendment.
 
         12            If they are not pleased with what the
 
         13       County does in terms of the Comprehensive Plan
 
         14       amendment, they do have an opportunity under 163
 
         15       to challenge the County on its adoption of that
 
         16       plan amendment.
 
         17            The plan amendment also, because it's not a
 
         18       small scale amendment, will have to go through
 
         19       the full State review as well, which means the
 
         20       Department of Community Affairs and the other
 
         21       agencies that participate in that state level
 
         22       review, will have an opportunity to review and
 
         23       provide comments, objections, and
 
         24       recommendations to Franklin County on the
 
         25       Comprehensive Plan amendment.
 
 
 
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          1            SECRETARY MORTHAM:  Thank you very much.
 
          2            There's a motion and a second for staff's
 
          3       recommendation.
 
          4            Is there any further discussion?
 
          5            All those in favor, say aye.
 
          6            THE CABINET:  Aye.
 
          7            SECRETARY MORTHAM:  Those opposed, no.
 
          8            Passes unanimously.
 
          9            Next item.
 
         10            MS. SITTIG:  Okay.  Item number 3, request
 
         11       authorization to enter the draft final order.
 
         12            Again, we do have some speakers.  We are
 
         13       asking that they limit their comments to no more
 
         14       than 10 minutes per side.
 
         15            The first -- the first side would be
 
         16       David Theriaque, representing the Edgewater
 
         17       Beach Homeowners Association.
 
         18            MR. THERIAQUE:  Good morning.
 
         19            SECRETARY MORTHAM:  Good morning.
 
         20            MR. THERIAQUE:  My name is
 
         21       David Theriaque.  I represent Edgewater.  I'll
 
         22       be brief.
 
         23            We support the staff final order.  The
 
         24       parties have spent considerable time meeting
 
         25       with your Aides.  We believe that the staff
 
 
 
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          1       proposed final order that y'all --
 
          2            (Attorney General Butterworth exited the
 
          3       room.)
 
          4            MR. THERIAQUE:  -- have accurately reflects
 
          5       our concerns with the Administrative Law Judge's
 
          6       decision.  We urge you to adopt the final order
 
          7       proposed by staff.
 
          8            Essentially what the staff final order
 

          9       would do would be to prevent the construction of
 
         10       a 20-story condominium building on the beach in
 
         11       Walton County.
 
         12            And as y'all may recall, this issue was
 
         13       before you in October of 1995 when you allowed
 
         14       the DRI to be revived, and the development that
 
         15       was proposed along the beach were 19 town homes,
 
         16       with two hundred and sixty some odd units up on
 
         17       the back of the property.
 
         18            What you have before you is an amendment to
 
         19       the DRI to change that development pattern to
 
         20       allow a 20-story building -- a building
 
         21       essentially almost as tall as the Capitol -- to
 
         22       be built immediately adjacent to the Coastal
 
         23       Construction Control Line.
 
         24            We believe that the staff's final order

 
         25       that's before you ensures the integrity of
 
 
 
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          1       comprehensive planning.  The Administrative Law
 
          2       Judge's decision creates an exception to
 
          3       comp planning that only large scale, high dollar
 
          4       developers would be allowed to utilize, whereby
 
          5       the rest of us in the state would have to comply
 
          6       with comprehensive plans; that this loophole
 
          7       should not be created for the large scale
 
          8       developers.
 
          9            In fact, that's probably the instance where
 
         10       comprehensive planning is probably most
 
         11       important.
 
         12            And -- we would urge that we keep the
 
         13       playing field level, that all citizens in the
 
         14       state of Florida have to comply with the
 
         15       Comprehensive Plan.
 
         16            Lastly, if you adopt the proposed order
 
         17       that's been prepared by staff, you are not
 
         18       preventing development on the property.  The
 
         19       developer is free to complete the project that
 
         20       y'all approved in October of 1995.  And if the
 
         21       developer would like to do something different
 
         22       with its property, they can go back to the
 
         23       County for a plan amendment.
 
         24            So there are options for the developer to
 
         25       proceed.
 
 
 
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          1            So we would request that y'all adopt the
 
          2       proposed final order that's been prepared by
 
          3       staff.
 
          4            I'd be happy to answer any questions.
 
          5            SECRETARY MORTHAM:  Any questions?
 
          6            Thank you very much.
 
          7            MR. THERIAQUE:  Thank you.
 
          8            MS. SITTIG:  Okay.  Representing the other
 
          9       side is Marti Chumbler representing Grand Dunes
 
         10       and KPM.
 
         11            MS. CHUMBLER:  Good morning.  I'm
 
         12       Marti Chumbler with the Carlton, Fields law
 
         13       firm, and I'm here representing KPM and
 
         14       Grand Dunes.
 
         15            My clients feel, and we feel strongly, that
 
         16       the draft staff -- staff order that's presented
 
         17       represents a very significant change in the
 
         18       policy relating to DRIs in this state.
 
         19            We also feel that it would be inherently
 
         20       unfair in this case to apply this brand new
 
         21       policy to my clients in a way that's different
 
         22       from the way it's ever been applied to other
 
         23       DRIs, and in a way that is dramatically
 
         24       different from the instructions that my clients
 
         25       have been given by both the local government and
 
 
 
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          1       by the very highest officials at the Department
 
          2       of Community Affairs.
 
          3            Now, there's some declaratory statements
 
          4       that are cited in the draft order that seem to
 
          5       indicate that back in 1987, '88, '89, there may
 
          6       have been some statements made in those rather
 
          7       large declaratory statements that could be read
 
          8       to mean something different.
 
          9            But there's a specific finding of fact, a
 
         10       finding of fact which is not rejected in the
 
         11       draft order, which says that the consistent
 
         12       policy of the Department has been that when a
 
         13       change is made which is not a substantial
 
         14       change, that there's not a loss of statutory
 
         15       vesting.
 
         16            I believe that if you ask the Department of
 
         17       Community Affairs today, they would stand by the
 
         18       statement found in finding of fact.
 
         19            In fact, what the draft order would do
 
         20       would be to significantly divest my client of
 
         21       statutory rights, of vesting rights.
 
         22            All of the actions -- all of the actions
 
         23       that my client has taken, all of the changes
 
         24       that they have proposed, have been undertaken
 
         25       with the instructions and with the advice of the
 
 
 
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          1       local government and of the Department of
 
          2       Community Affairs.
 
          3            We would have not proposed to make any of
 
          4       these changes if we thought we would have lost
 
          5       vested rights to the units that were given to us
 
          6       under the developm-- the DRI.
 
          7            As I said, this order represents a severe
 
          8       slashing of the development rights that have
 
          9       been given to my client previously.
 
         10            Change the policy, if you think it's
 
         11       appropriate, for future developments.  But we
 
         12       believe that it is unfair and unjust to apply
 
         13       this new policy to an owner who has relied upon
 
         14       the statements and the promises of government.
 
         15            Thank you.
 
         16            SECRETARY MORTHAM:  Thank you.
 
         17            MS. SITTIG:  We did have one other person
 
         18       who was going to be available for questions.
 
         19       But he has asked for about 30 seconds.  His name
 
         20       is George Ralph Miller representing
 
         21       Walton County.
 
         22            MR. MILLER:  Good morning, Madam Chairman,
 
         23       members of the Cabinet.
 
         24            I represent Walton County as their
 
         25       attorney, and we are here for the support of the
 
 
 
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          1       hearing officer's recommendation.  We ask that
 
          2       you reject the staff report.
 
          3            We feel like we've followed the rules as we
 
          4       know them, we feel like we did what DCA asked us
 
          5       to do, and we feel like this project was vested,
 
          6       and that they're entitled to go forward as -- as
 
          7       they've tried to do.
 
          8            So we ask that you support the
 
          9       hearing officer's recommendation.
 
         10            Thank you.  Be happy to answer any
 
         11       question.
 
         12            SECRETARY MORTHAM:  Any questions?
 
         13            Okay.
 
         14            MR. MILLER:  Thank you.
 
         15            MS. SITTIG:  Okay.  We do have
 
         16       Stephanie Kruer with DCA if you all have any
 
         17       questions of her.
 
         18            I could read the recommendation again.
 
         19            SECRETARY MORTHAM:  Okay.
 
         20            MS. SITTIG:  Which is:  Request
 
         21       authorization to enter the draft final order.
 
         22            SECRETARY MORTHAM:  Is there a motion?
 
         23            COMMISSIONER BROGAN:  Move staff
 
         24       recommendation, Madam Secretary.
 
         25            SECRETARY MORTHAM:  Is there a second?
 
 
 
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          1            COMPTROLLER MILLIGAN:  I'll second.
 
          2            SECRETARY MORTHAM:  Okay.  It's been moved
 
          3       and seconded to accept the staff
 
          4       recommendation.
 
          5            Is there any discussion?
 
          6            Okay.  All those in favor, say aye.
 
          7            THE CABINET:  Aye.
 
          8            SECRETARY MORTHAM:  Those opposed, no?
 
          9            Passes unanimously.
 
         10            MS. SITTIG:  Thank you.
 
         11            SECRETARY MORTHAM:  Next item?
 
         12            MS. SITTIG:  That's all.
 
         13            (The Florida Land and Water Adjudicatory
 
         14       Commission Agenda was concluded.)
 
         15                             *
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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          1            SECRETARY MORTHAM:  Okay.  I believe we're
 
          2       moving on to the lengthy part of the agenda.
 
          3            COMMISSIONER BROGAN:  Potentially lengthy --
 
          4            SECRETARY MORTHAM:  Potentially lengthy
 
          5       part of the agenda with the State Board of
 
          6       Education.
 
          7            COMMISSIONER BROGAN:  Yes, ma'am.
 
          8       Thank you.
 
          9            And in the absence of the Governor, I'll
 
         10       chair this portion of the meeting,
 
         11       Madam Secretary.
 
         12            We're going to ask your indulgence, and see
 
         13       if you will concur to move Items 2 and 3, which
 
         14       are the appeals, to the end of the State Board
 
         15       agenda, hopefully give us a better opportunity
 
         16       to focus on those issues.
 
         17            So with that, I will turn to what is still
 
         18       Item 1 on the State Board agenda.
 
         19            DR. BEDFORD:  Commissioner Brogan, members
 
         20       of the State Board of Education, good morning.
 
         21            Item 1, Critical Teacher Shortage Report
 
         22       and Recommendations.  I will read into the
 
         23       record the critical shortage areas of
 
         24       exceptional education programs serving students
 
         25       with disabilities, including emotionally
 
 
 
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          1       handicapped, mentally handicapped, physically
 
          2       handicapped, speech and language impaired,
 
          3       hearing impaired, visually impaired, specific
 
          4       learning disabled --
 
          5            (Attorney General Butterworth entered the
 
          6       room.)
 
          7            DR. BEDFORD:  -- and varying
 
          8       exceptionalities, English for Speakers of Other
 
          9       Languages, technology education, and for the
 
         10       tuition reimbursement program endorsement areas,
 
         11       and profoundly handicapped orientation mobility,
 
         12       pre-kindergarten handicapped, and gifted.
 
         13            We do have one speaker that has requested
 
         14       permission to address the group.
 
         15            I believe Pat Tornillo is in the audience
 
         16       to address the group.
 
         17            Pat.
 
         18            MR. TORNILLO:  Thank you, Commissioner.
 
         19            Thank you for the opportunity to share with
 
         20       you some statistics on the -- what I consider to
 
         21       be the fate of the teaching profession in
 
         22       Florida.  And they're from the reports that
 
         23       Bob Bedford was talking about that you have all
 
         24       been given recently issued by the Department of
 
         25       Education.
 
 
 
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          1            If you analyze those reports, it's pretty
 
          2       clear that from the mid '60s through the '70s,
 
          3       and much of the '80s, the teaching profession
 
          4       was an unpopular choice for students in our
 
          5       various colleges and universities.
 
          6            In 65-66, education degrees totaled nearly
 
          7       one quarter of all the degrees awarded by our
 
          8       states, colleges, and universities.  By '94 and
 
          9       '95, education degrees awarded was only half
 
         10       that, 13 percent.
 
         11            And while interest in the profession has
 
         12       increased somewhat in more recent years, the
 
         13       data clearly shows that we are still not
 
         14       graduating enough teachers in our colleges and
 
         15       universities to keep up with the tremendous
 
         16       growth and need.
 
         17            Over the last five years, the number of
 
         18       vacancies occurring in teaching positions
 
         19       increased from 5,951 in 1991 --
 
         20            (Secretary Mortham exited the room.)
 
         21            MR. TORNILLO:  -- to 8,292 in 1995.
 
         22            And at the same time, students graduating
 
         23       from Florida's colleges and universities in the
 
         24       field of education averaged only about 5,500.
 
         25       Those were those who graduated, they were not
 
 
 
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          1       necessarily those who accepted a teaching
 
          2       position.
 
          3            So we have not kept ground.  Florida simply
 
          4       has not produced the number of teachers needed
 
          5       to adequately staff our schools.  And our
 
          6       biggest teacher shortages occur in the fields of
 
          7       elementary education, with math and science
 
          8       running close behind.
 
          9            And in 1995 in the field of science,
 
         10       for example, the number of graduates in physics
 
         11       was lower than any year since 1989.
 
         12            Now, the disproportionate number of
 
         13       teachers available unfortunately has led us to
 
         14       place an even more disproportionate number of
 
         15       teachers in out-of-field positions.
 
         16       Out-of-field is a teacher who is not certified
 
         17       in the appropriate field.
 
         18            In 1995, more than 12 percent of the
 
         19       vacancies that I cited were filled by teachers
 
         20       who do not have the appropriate teaching
 
         21       certificate to teach the subject they've been
 
         22       hired to perform.
 
         23            (Secretary Mortham entered the room.)
 
         24            MR. TORNILLO:  That figure is even more
 

         25       lopsided when we get into other critical
 
 
 
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          1       shortage areas, such as teaching for the
 
          2       emotionally handicapped, students with learning
 
          3       disabilities, students who are hearing impaired,
 
          4       or those students who are mentally handicapped;
 
          5       and now a new category that has come up on the
 
          6       scene, technology.
 
          7            More than 15 percent of teachers who fill
 
          8       vacancies for teaching the emotionally impaired
 
          9       do not have the proper certificate.
 
         10            I could go on with teachers assigned to
 
         11       teach students with disabilities, et cetera.
 
         12       But the bottom line is from the DOE report
 
         13       entitled Critical Teacher Shortage Areas, as
 
         14       evidenced by the percentage of out-of-field
 
         15       teachers hired, Educational -- ESE programs that
 
         16       includes all of the above are perpetually
 
         17       behind.  The number of graduates never seems to
 
         18       catch up with the demand.
 
         19            We're also failing to keep ground with
 
         20       attracting minorities into the profession.  In
 
         21       1985, African American children made up
 
         22       23 percent of the public school enrollment, and
 
         23       only 16 percent of the teachers.
 
         24            Ten years later, in the fall of '95, a
 
         25       quarter of the students in Florida's public
 
 
 
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          1       school classrooms were African American, and
 
          2       only 14 percent of the teachers were of the same
 
          3       minority.
 
          4            Ladies and gentlemen, the percentage of
 
          5       black teachers is increasing at the same time
 
          6       that the percentage -- of black students is
 
          7       increasing at the same time that the percentage
 
          8       of black teachers is an all-time low.
 
          9            We have an impending teacher shortage in
 
         10       Florida that could reach crisis proportions, and
 
         11       we need to do everything we can to prevent it.
 
         12            At the same time that we're talking about
 
         13       incompetence -- and this is the hot topic in
 
         14       this session of the Legislature -- you need to
 
         15       be aware that every time a teacher who is not
 
         16       certified to teach walks into a classroom in
 
         17       Florida, that is an incompetent teacher teaching
 
         18       children.
 
         19            If you have been certified in social
 
         20       studies, history, and you are assigned three
 
         21       history classes, and then assigned two physics
 
         22       classes, you should be competent in the three
 
         23       history classes, but you are totally incompetent
 
         24       to walk into a physics class and teach those
 
         25       students physics.  That's a bigger problem in
 
 
 
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          1       Florida than anything else is in terms of
 
          2       qualified teachers in the classroom.
 
          3            I think that what we need to do is look at
 
          4       programs that will entice students to enter the
 
          5       teaching profession beyond those that you and
 
          6       this State Board of Education and
 
          7       Commissioner Brogan have recommended and are in
 
          8       place.
 
          9            I think we need to expand the programs such
 
         10       as the Critical Teacher Shortage Scholarship
 
         11       Loan and the Chappie James Most Promising
 
         12       Teacher Scholarship Loan Program.
 
         13            I think that we need to do something with
 
         14       maybe the lottery dollars.  Perhaps we should
 
         15       look at financial incentive programs that can be
 
         16       funded with lottery dollars also.
 
         17            And what about teachers already in the
 
         18       system?  Too many of our good teachers leave
 
         19       after a few years because it simply does not pay
 
         20       enough.
 
         21            I think we need to look at financial
 
         22       incentives for those teachers who obtain
 
         23       national certification.  That's a win-win for
 
         24       both the teacher and our children.
 
         25            Governor Hunt of North Carolina three weeks
 
 
 
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          1       ago recommended to the North Carolina
 
          2       Legislature, one, that they help every teacher
 
          3       in North Carolina who wanted to go through
 
          4       national certification; and, two, if they passed
 
          5       that rigorous program, a 12 percent salary bonus
 
          6       for every teacher in North Carolina who did
 
          7       that.  That was a courageous move on his part.
 
          8       It was not exactly met with a lot of enthusiasm
 
          9       on the part of all the stakeholders in
 
         10       education, including the teacher unions.
 
         11            I can only tell you that we need to help
 
         12       our children; we need to help make sure that at
 
         13       some time in the near future, we have a
 
         14       qualified, certified, competent teacher in every
 
         15       classroom in the State of Florida teaching our
 
         16       children, because that is a real -- the real
 
         17       tragedy that's going on now.
 
         18            And our teachers need to be rewarded for
 
         19       making a greater effort, and national board
 
         20       certification might just be the way that we do
 
         21       that.
 
         22            Thank you.
 
         23            COMMISSIONER BROGAN:  Thank you, sir.
 
         24            Any questions?
 
         25            TREASURER NELSON:  Yes.
 
 
 
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          1            COMMISSIONER BROGAN:  Commissioner Nelson.
 
          2            TREASURER NELSON:  Pat, I notice that the
 
          3       figures show that 24 percent of the teachers in
 
          4       the critical areas are teaching out of field;
 
          5       and in all teachers teaching out of field, the
 
          6       percentage is 12 percent.
 
          7            Now, I noticed also in the figures that the
 
          8       SLD teachers, however, in the projected number
 
          9       of graduates, you've got a lot more graduates
 
         10       among SLDs than the projected number of
 
         11       vacancies.
 
         12            So you've got an abundance there, and a
 
         13       shortage every place else.  What is it about the
 
         14       SLDs?
 
         15            MR. TORNILLO:  I'm not sure that I can
 
         16       answer that question as to why in that one
 
         17       category we -- that's the only one that we have
 
         18       more than we -- and we have a shortage in all
 
         19       the others.  It may be that the programs are
 
         20       more rigorous in those areas.
 
         21            Bob.
 
         22            DR. BEDFORD:  Martha can answer this.
 
         23            MR. TORNILLO:  Martha.
 
         24            COMMISSIONER BROGAN:  This is Martha Miller
 
         25       from the Department, lady and gentlemen.
 
 
 
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          1            DR. MILLER:  Many of those graduates of SLD
 
          2       programs are now hired in a growing field called
 
          3       varying exceptionalities.  Particularly the
 
          4       secondary area, many times those children are
 
          5       grouped.
 
          6            And so if you'll look under VE, varying
 
          7       exceptionalities, you'll see that we have many
 
          8       more projections than we do have graduates.  Few
 
          9       people graduate in VE, so many of the SLD
 
         10       teachers are going into those fields.
 
         11            COMMISSIONER BROGAN:  Any other questions?
 
         12            Thank you, sir.
 
         13            MR. TORNILLO:  Thank you.
 
         14            COMMISSIONER BROGAN:  There also have
 
         15       occurred, during the time that Mr. Tornillo was
 
         16       referring to, a couple of anomalies that I think
 
         17       are contributing to the problem as well.
 
         18            What's happened since 1960 in education.
 
         19       Well, one of the problems that we have faced,
 
         20       or -- not problem necessarily -- but one of the
 
         21       issues that we're dealing with is the incredible
 
         22       array of certificates that are now available,
 
         23       and the rather finite restrictions that go along
 
         24       with each.  The illusion to the fact that we
 
         25       have teachers who are science teachers teaching
 
 
 
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          1       math out of field is accurate.
 
          2            But we also have a significant number of
 
          3       teachers who are teaching in their subject area
 
          4       that are -- simply have stepped across the
 
          5       boundary that the certificate will allow.
 
          6            For example, in middle school, you might
 
          7       teach eighth grade math, but might not in that
 
          8       same middle school be able to, via the
 
          9       certification requirements, teach sixth graders
 
         10       mathematics.  And that person might be
 
         11       considered technically to be out of field, but,
 
         12       in fact, may have a better background in
 
         13       mathematics than anyone else on campus.
 
         14            My point, I suppose, is that I think some
 
         15       of the problems that we've created since the
 
         16       '60s are actually manmade in terms of -- of our
 
         17       own certification requirements.
 
         18            Also point out the issue of pay.
 
         19       Mr. Tornillo mentioned that, and I agree.  If
 
         20       there is anything to be learned from the private
 
         21       sector, and I think there is, one of the things
 
         22       that the private sector recognized a long time
 
         23       ago is if you can't get people to do a job, then
 
         24       pay them more, and they will come.
 
         25            And I'm convinced that when you look at
 
 
 
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          1       these exceptionalities in some of these areas
 
          2       that are -- in my 20 years, I believe considered
 
          3       to be more challenging based on the challenges
 
          4       simply put that the children face, it's tough
 
          5       work.  Teaching is tough work, no matter how you
 
          6       do it, or no matter what your field happens to
 
          7       be.
 
          8            But I really believe one of the things that
 
          9       we need to begin to do, not just in Florida, but
 
         10       nationally, is get creative about the way we pay
 
         11       our professional educators, and recognize that
 
         12       if you have an overabundance of elementary
 
         13       school teachers, which is typically the case --
 
         14       I'm an elementary teacher by certification --
 
         15       that, indeed, you have ample opportunities to
 
         16       fill those vacancies with certified, qualified
 
         17       individuals.
 
         18            If you have an area that is tightly
 
         19       parametered in terms of certification, or
 
         20       tightly parametered as far as the skill level,
 
         21       and you can't draw people to that particular
 
         22       profession, while loan forgiveness programs and
 
         23       some of the other enticements that we're making
 
         24       available is attract-- or are attractive to
 
         25       some, I believe that long-term commitment and
 
 
 
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          1       long-term reward is even more attractive.
 
          2            My point being that if you want to draw a
 
          3       teacher to a critical teaching shortage area,
 
          4       especially one that is considered to be very
 
          5       tough and very challenging, based on the
 
          6       challenges that the students face, then via the
 
          7       private sector, it would only seem logical that
 
          8       you would want to make it more lucrative for
 
          9       that individual to draw the kind of people that
 
         10       we need to do those jobs.
 
         11            That is not something that we do well in
 
         12       public education.  We like to reward people far
 
         13       differently than does the public sector.  And by
 
         14       virtue of that fact, I think we're eliminating
 
         15       some great opportunities to reward people for
 
         16       the job that they do.  Not performance based,
 
         17       I'm talking about the specific area of
 
         18       certification.
 
         19            I think we're making a dent, but I think
 
         20       the point was made, and it's accurate, that in
 
         21       some of these areas, we're not keeping pace with
 
         22       the growth.
 
         23            Exceptional education is a perfect
 
         24       example.  The number of students being
 
         25       identified now as emotionally handicapped or
 
 
 
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          1       attention deficit disordered, they're rising at
 
          2       incredible rates.
 
          3            And yet we've already suggested that
 
          4       teachers in those areas face a critical teaching
 
          5       shortage.
 
          6            So I think we've got to start to become
 
          7       more creative, over and above some of the things
 
          8       that we're already doing.
 
          9            I think in terms of minority recruitment,
 
         10       Bob, did I not hear a figure that we were up
 
         11       about 12 percent?
 
         12            Martha?
 
         13            DR. BEDFORD:  I don't remember.  We are up,
 
         14       but --
 
         15            COMMISSIONER BROGAN:  So we're making some
 
         16       inroads.  And I think we'll continue to do so.
 
         17       But I think we've got to become even bolder
 
         18       about some of the approaches we take.
 
         19            And as I mentioned, also recognize that
 
         20       some of our problems are manmade in terms of
 
         21       certification.  We're trying to address some of
 
         22       that through legislation during -- during this
 
         23       session.
 
         24            Any other questions from the members?
 
         25            SECRETARY MORTHAM:  Move approval.
 
 
 
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          1            COMMISSIONER BROGAN:  Got a motion and a
 
          2       second.
 
          3            Discussion?
 
          4            Without objection, item passes.
 
          5            We'll move now again to save Items 2 and 3,
 
          6       and move to Item 4.
 
          7            DR. BEDFORD:  Item 4 is the assignment of
 
          8       the lease and approval of other agreements, if
 
          9       required, between the State Board of Education;
 
         10       South Florida Public Telecommunications, Inc.,
 
         11       WXEL.
 
         12            Mike Olenick is going to make the
 
         13       initial --
 
         14            COMMISSIONER BROGAN:  Commonly referred to
 
         15       as the Louisiana purchase.
 
         16            MR. OLENICK:  I'm here to accept the Nobel
 
         17       Peace Prize.
 
         18            COMMISSIONER BROGAN:  You're not out of
 
         19       this yet.
 
         20            MR. OLENICK:  My name is Mike Olenick
 
         21       representing the State Board.
 
         22            At the risk of boring members of the
 
         23       State Board, I just wanted to briefly again just
 
         24       tell you where -- how we got here.
 
         25            '89, the State Board of Education and
 
 
 
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          1       South Florida Public Telecommunication, Inc.,
 
          2       WXEL, entered into a lease agreement for the
 
          3       building which was owned by -- the land was
 
          4       owned by WXEL.
 
          5            Over the years, of course, there have been
 
          6       numerous grants given to WXEL.  The lease grants
 
          7       WXEL freedom to assign without approval of this
 
          8       Board, quote, so long as the transferee is
 
          9       another educational or noncommercial
 
         10       broadcasting entity.
 
         11            On February 7th, a merger agreement was
 
         12       executed between WXEL and
 
         13       Barry-Telecommunication, Inc., commonly referred
 
         14       to as Barry-Tel.
 
         15            XEL's position is that XEL and Barry-Tel.
 
         16       have the legal right to execute that merger
 
         17       agreement.
 
         18            On February 17th, the Attorney General's
 
         19       Office and my office sent a letter to XEL asking
 
         20       for information, and also expressing some
 
         21       concern in whether Barry-Tel. was a, quote,
 
         22       educational and noncommercial broadcasting
 
         23       entity.
 
         24            From my perspective, I am not aware of any
 
         25       defaults by XEL in the original lease
 
 
 
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          1       agreement.  The issue of conten-- there is an
 
          2       issue of contention of whether or not XEL --
 
          3       whether the XEL-Barry assignment needs to come
 
          4       before this State Board.
 
          5            And we being the State -- the attorney for
 
          6       the State Board of Ed, as well as the Attorney
 
          7       General's Office, has taken the position that
 
          8       they need to be here.
 
          9            And I should state that XEL has, at this
 
         10       point, willingly brought itself before you for
 
         11       this assignment.
 
         12            The narrow legal issue, I think, is is
 
         13       Barry-Tel. qualified per the lease as an
 
         14       educational, noncommercial broadcasting entity.
 
         15       The Articles of Incorporation of Barry-Tel.
 
         16       say -- state that it is an educational or
 
         17       noncommercial broadcasting entity.
 
         18            The FCC application would only go to a
 
         19       public broadcasting license, and FCC would
 
         20       ultimately determine whether Barry-Tel. was
 
         21       eligible.
 
         22            The Secretary of State at the last meeting
 
         23       made a motion that something be brought
 
         24       forward.  And in light of that, WXEL prepared a
 
         25       three-party agreement, which your Aides have,
 
 
 
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          1       and which you all should have.
 
          2            And the highlights of that are as follows:
 
          3       Barry-Tel. would remain community based -- and
 
          4       I'm paraphrasing obviously -- second, that it
 
          5       permits the transfer of the leased assets, which
 
          6       is the issue that I'm -- that I've been
 
          7       addressing; it does have provision that you as
 
          8       Board members in good faith would not challenge
 
          9       the FCC license and merger.
 
         10            There is no further assignment without
 
         11       the Board of Education approval, and that's
 
         12       imperative because that puts us in a position
 
         13       without any contention in the future that we --
 
         14       or you, would not even have an argument if
 
         15       there's a further assignment.
 
         16            They would actively pursue a consortium,
 
         17       they being Barry-Tel. consortium.  As you
 
         18       remember, Chancellor Reed discussed this --
 
         19       actively pursue the consortium with the Board of
 
         20       Regents.  They would set up a community advisory
 
         21       board, and they would have a public workshop in
 
         22       the Palm Beach area regarding this merger.
 
         23            Subsequent to this, there has been
 
         24       discussion -- there have been some discussion
 
         25       between the Board of Regents; and Sister Jeanne,
 
 
 
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          1       President of Barry University.  And those
 
          2       discussions were going on all morning.
 
          3            I will be here to answer any questions.
 
          4       It's my understanding that Chancellor Reed would
 
          5       like to address you; and Sister Jeanne, the
 
          6       President of Barry, would like to address you.
 
          7            And at this point, I'll -- unless there's
 
          8       questions, I'll defer to the --
 
          9            COMMISSIONER BROGAN:  First of all, any
 
         10       questions at this point of -- members of the
 
         11       Cabinet, State Board?
 
         12            All right.  Want to hear from
 
         13       Chancellor Reed?
 
         14            DR. REED:  Madam Chair, members of the
 
         15       State Board, I am pleased to come here this
 
         16       morning to tell you that Sister Jeanne and I
 
         17       have worked out a conceptual agreement to put
 
         18       together a public-private education partnership
 
         19       to be a model that I think this country will be
 
         20       proud of.
 
         21            I can tell you this:  I have negotiated
 
         22       with a lot of people in my life, but
 
         23       Sister Jeanne goes to the top.  I would put her
 
         24       in the top five draft choices in America to
 
         25       negotiate with.
 
 
 
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          1            But I want to thank Sister Jeanne for being
 
          2       such a good negotiator, and I have met my
 
          3       match.  But we put together, I think, a
 
          4       conceptual agreement.  We worked on it up until
 
          5       about 30 minutes ago.  And I want to thank her
 
          6       for that.
 
          7            Number two, I want to thank Mary Souder
 
          8       from WXEL and their attorneys who came up here
 
          9       last night, and were here this morning.
 
         10            I will tell you that it hasn't been easy.
 
         11       We've had a difficult time.  Sister Jeanne and I
 
         12       have been on the telephone since you directed us
 
         13       to negotiate.  She came yesterday, and we met
 
         14       for 3 hours in my office yesterday afternoon.
 
         15            The proposal that we have, which is the
 
         16       lease agreement that you have before you -- and
 
         17       I believe your Aides, and I hope you all have a
 
         18       copy of this.
 
         19            But my agreement with Sister Jeanne will
 
         20       ask you to strike paragraph 1, and insert a new
 
         21       paragraph 1 which will read:  Prior to the
 
         22       transfer of the FCC license, membership in
 
         23       Barry-Tel. will consist of Barry University, and
 
         24       the Board of Regents in proportions to be
 
         25       negotiated by said parties; and -- this is
 
 
 
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          1       important -- Barry-Tel. shall maintain
 
          2       WXEL TV-FM as a community-based, independent
 
          3       public broadcasting voice serving the
 
          4       Palm Beach County and Treasure Coast areas with
 
          5       a special commitment to high quality educational
 
          6       programming.
 
          7            And it was specifically the educational
 
          8       mission of the public television station that
 
          9       the university system and Barry University are
 
         10       the most interested in serving the needs of the
 
         11       people in Palm Beach and the Treasure Coast
 
         12       area.
 
         13            With that, I'd like to ask Sister Jeanne to
 
         14       either put some white smoke on this, or bless me
 
         15       for what I have been through the last few weeks.
 
         16            SISTER O'LAUGHLIN:  -- Charlie --
 
         17            SECRETARY MORTHAM:  Commissioner Brogan --
 
         18            SISTER O'LAUGHLIN:  -- that he could have
 
         19       general absolution.
 
         20            COMMISSIONER BROGAN:  Let me -- let me turn
 
         21       to Secretary Mortham for a question.
 
         22            SECRETARY MORTHAM:  Just --
 
         23            COMMISSIONER BROGAN:  Or a comment.
 
         24            SECRETARY MORTHAM:  Quick -- quick question
 
         25       of the Chancellor.
 
 
 
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          1            Does the Board of Regents intend to
 
          2       actually put money into this program?
 
          3            DR. REED:  The answer is yes.  If we don't
 
          4       have any money to put into it, we won't have a
 
          5       partnership.
 
          6            SECRETARY MORTHAM:  Okay.  So then the
 
          7       proportional negotiated membership would
 
          8       probably be somewhat based on the money issue, I
 
          9       would presume.
 
         10            DR. REED:  That, and there's about three or
 
         11       four other matters.  But, specifically, yes.
 
         12            SECRETARY MORTHAM:  Thank you.
 
         13            COMMISSIONER BROGAN:  Any other questions
 
         14       or comments for Chancellor Reed?
 
         15            If not, we'll turn to Sister Jeanne.
 
         16            SISTER O'LAUGHLIN:  I want also to thank
 
         17       the great Charles Reed, the Chancellor.  I feel
 
         18       like I've been in an ongoing love-in.
 
         19            COMMISSIONER CRAWFORD:  Ugh-oh.
 
         20            COMMISSIONER BROGAN:  He is a cuddly
 
         21       rascal, isn't he, Sister?
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Tell us
 
         23       about it, Frank.
 
         24            DR. BEDFORD:  Oh, boy.
 
         25            SISTER O'LAUGHLIN:  It has been a very
 
 
 
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          1       important, I believe, journey for both of us.
 
          2       And when I last had the privilege of appearing
 
          3       before you, I was so conscious of your concern
 
          4       for the community good.  And that was the
 
          5       commitment we made.
 
          6            And it was through these conversations and
 
          7       dialogue that it became clear that such a
 
          8       proposed partnership would benefit all.
 
          9            I have to say that as I've watched with
 
         10       great reverence what you have been doing, and
 
         11       the intricacies and the care that you have been
 
         12       giving to this community, when I realize the
 
         13       violence and the crimes and the children that
 
         14       are so neglected, and for you to take time in
 
         15       your busy schedules to address this matter and
 
         16       in the good of a community, it really helps me
 
         17       to understand how proud I am to be part of this
 
         18       process.
 
         19            When I understand that justice is denied or
 
         20       justice is served, it comes from you.  But it
 
         21       also comes to us when you trust us.  And
 
         22       I believe that through the dialogue, we are
 
         23       serving justice for the people of that
 
         24       community.
 
         25            So we thank you very much for your trust in
 
 
 
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          1       us, and we sincerely hope to make you very proud
 
          2       of what will come out of our joint efforts.
 
          3            COMMISSIONER BROGAN:  Well, I know I speak
 
          4       on behalf of my colleagues when I say that we
 
          5       thank Sister, both you, and Chancellor Reed;
 
          6       Mike Olenick; and all the other parties who
 
          7       worked so hard.
 
          8            And when he said "prior to the meeting,"
 
          9       I think I was still waiting and watching the
 
         10       back door to see if you were going to come
 
         11       through the back door with a resolution to this
 
         12       matter.
 
         13            And I know a lot of hard work went into it,
 
         14       and I believe the public interests will be
 
         15       served, based on the -- the agreement that has
 
         16       been struck.
 
         17            And I would open it to any questions or
 
         18       comments.
 
         19            I believe we have two other speakers.
 
         20            DR. BEDFORD:  Marvin Rosen, the attorney
 
         21       for WXEL, has requested to speak.
 
         22            COMMISSIONER BROGAN:  Mr. Rosen.
 
         23            MR. ROSEN:  I waive the right to speak.
 
         24       Thank you.
 
         25            DR. BEDFORD:  And Carlos Manrique from
 
 
 
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          1       Dade County Public Schools.
 
          2            COMMISSIONER BROGAN:  Mr. Manrique?
 
          3            MR. MANRIQUE:  Thank you very much,
 
          4       Commissioners, Honorable members of the Board.
 
          5            Commissioners, we found out of this issue
 
          6       late in the ball game, and I'd like to apologize
 
          7       for coming in such a late time.
 
          8            But we have been trying to work with all
 
          9       the parties, and with Dade County Public
 
         10       Schools.  As you know, we have two fine entities
 
         11       in WLRN TV and radio.  That is a big part of our
 
         12       agenda, to educate our kids in Dade County
 
         13       public schools.
 
         14            And we are very concerned, as I understand
 
         15       entering late into this agreement, that the
 
         16       Cabinet has concerns with WPBT and Channel 2
 
         17       entering into this consortium, if we can call
 
         18       it.
 
         19            So we've passed an amendment that I think
 
         20       you have before you, and I would like for each
 
         21       of you to consider that amendment.  And that
 
         22       basically says that WPBT will not be part of
 
         23       this consortium.

 
         24            And that is something that Dade County
 
         25       Public Schools can live with.  Sister Jeanne and
 
 
 
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          1       I, they're in agreement with this amendment;
 
          2       WXEL is in agreement with this amendment.
 
          3            And I've talked to about 100 percent of
 
          4       your Cabinet people, and I haven't found any
 
          5       objections yet.  I understand that maybe the
 
          6       Chancellor might have an objection to that,
 
          7       although they are telling me, and Mr. Moyle told
 
          8       me today, we're not going to negotiate with
 
          9       WPBT.
 
         10            So if you're not going to negotiate with
 
         11       them, you shouldn't have problems in putting
 
         12       that into language now.  And if you want to
 
         13       change that in the rules later on, they should
 
         14       be able to come before you and say why they want
 
         15       to negotiate with WPBT.
 
         16            I don't know if they have a copy of the
 
         17       amendment up there or not.  It's one that's
 
         18       labeled 3(a).  And basically I stand before you
 
         19       looking for a sponsor and a second on that.
 
         20            COMMISSIONER BROGAN:  Sister, let me ask
 
         21       you or Chancellor Reed if either/or both of you
 
         22       would care to comment on the amendment?
 
         23            DR. REED:  We both maybe can comment on
 
         24       it.  We -- or I -- Sister Jeanne can speak for
 
         25       herself -- don't think that this amendment is
 
 
 
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          1       necessary.
 
          2            Frankly, we think it'll just complicate our
 
          3       lives in trying to work out what we have already
 
          4       worked out.
 
          5            Two, if the Dade County Public Schools will
 
          6       accept this -- Sister Jeanne and I talked about
 
          7       this both last night and this morning -- we will
 
          8       not do anything with this public television
 
          9       station to hurt, harm, or damage the Dade County
 
         10       Public School public television station, in any
 
         11       way.  We have no intent to do that, we have no
 
         12       intent on competing, and we don't want to do
 
         13       that.
 
         14            And lastly, our attorneys, and maybe Mike
 
         15       or others might want to -- it was my general
 
         16       counsel, and the other legal advice that I've
 
         17       received, said that this is redundant, and that
 
         18       it is not necessary to do this, because it's
 
         19       already in the agreement that you have before
 
         20       you in the transfer of the lease.
 
         21            Sister Jeanne may -- wanted to make a
 
         22       comment.
 
         23            SISTER O'LAUGHLIN:  I've always been
 
         24       supportive of the Dade County Public Schools,
 
         25       and I understand their concern.  But it was my
 
 
 
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          1       understanding from the lawyers also that it is
 
          2       redundant, that it -- that we have made the
 
          3       commitment not to transfer or change without the
 
          4       approval of this Board.
 
          5            I have no discomfort in saying that we will
 
          6       not do that, that we would give the management
 
          7       to someone else without the approval of this
 
          8       Board.
 
          9            COMMISSIONER BROGAN:  Okay.  Let me just
 
         10       ask counsel if that is in keeping with --
 
         11            MR. OLENICK:  Yes, sir.  I'm comfortable
 
         12       with that.  And let me just explain why.
 
         13            The original agreement, which is the basis
 
         14       of this thing, the '89 agreement, says that
 
         15       during the term of the agreement -- and
 
         16       remember, the agreement's being assigned --
 
         17       during the term of this agreement, XEL shall
 
         18       have sole and exclusive control over the use of
 
         19       the capital items.  And that's, candidly, our
 
         20       only concern, the capital items.
 
         21            So we have a sole and exclusive control by
 
         22       XEL.  If you take that, and then you add the --
 
         23       the amendment which says that XEL with
 
         24       respect -- hereby agrees for itself and
 
         25       successors and assigns that it will not further
 
 
 
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          1       assign its rights under the original agreement,
 
          2       or for the transfer of the capital items.
 
          3            So my feeling is that I think it's covered
 
          4       because the original agreement specifically
 
          5       states that the sole and exclusive control shall
 
          6       be XEL's.
 
          7            And I think that the amendment makes it
 
          8       clear that any change in -- in that ownership
 
          9       has to come back to you as a State Board.  So I
 
         10       think -- I think they're covered.
 
         11            Thank you.
 
         12            COMMISSIONER BROGAN:  Further questions?
 
         13            Commissioner?
 
         14            TREASURER NELSON:  Does he support the
 
         15       amendment?
 
         16            COMMISSIONER BROGAN:  No.  I believe I just
 
         17       heard you say that the amendment is not
 
         18       necessary, correct?
 
         19            MR. OLENICK:  I'm --
 
         20            COMMISSIONER BROGAN:  That you're satisfied
 
         21       with the original --
 
         22            COMPTROLLER MILLIGAN:  That --
 
         23            COMMISSIONER BROGAN:  -- amendment?
 
         24            MR. OLENICK:  I'm sorry.
 
         25            I think the amendment that's before you
 
 
 
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          1       with the five -- the five items is sufficient to
 
          2       take care of their concerns in my view.
 
          3            COMMISSIONER BROGAN:  The original
 
          4       amendment.
 
          5            MR. OLENICK:  The original agreement.  That
 
          6       the agreement proposed by the School Board of
 
          7       Dade County, I think, is redundant.
 
          8            COMMISSIONER BROGAN:  Questions?
 
          9            Secretary?
 
         10            SECRETARY MORTHAM:  Okay.  I have a -- I do
 
         11       have a question of Mr. Olenick.
 
         12            If, in fact, it's redundant, is there any
 
         13       reason not to put it in?
 
         14            MR. OLENICK:  From my perspective, I -- I
 
         15       personally have no problem with it,
 
         16       Secretary Mortham.  But I'm not -- you have two
 
         17       other people, you have XEL, and you have Barry,
 
         18       and you have the State -- the Board of Regents.
 
         19            From my perspective as your attorney, I
 
         20       have no problem.
 
         21            SECRETARY MORTHAM:  Well, I guess my
 
         22       concern is is that I certainly trust all of your
 
         23       opinions, and Sister Jeanne, Chancellor Reed,
 
         24       and you have said that under the current
 
         25       language, Dade County is protected.
 
 
 
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          1            So I guess my question is:  Is there any
 
          2       problem with adopting the amendment as proposed,
 
          3       because nobody intends to violate it anyway?
 
          4            SISTER O'LAUGHLIN:  Carlos did not have a
 
          5       copy of that --
 
          6            SECRETARY MORTHAM:  Original?
 
          7            SISTER O'LAUGHLIN:  -- original.
 
          8            SECRETARY MORTHAM:  So you're telling me
 
          9       that Carlos now likes the original, is --
 
         10            SISTER O'LAUGHLIN:  No.
 
         11            COMMISSIONER BROGAN:  Good try, Sister.
 
         12            MR. MANRIQUE:  I still have not seen it,
 
         13       Secretary.  I mean, you've told me now they had
 
         14       changed it again.
 
         15            MR. OLENICK:  No.  The -- no.
 
         16            Let me just -- Carlos had a copy of the
 
         17       original agreement, the Marvin Rosen agreement,
 
         18       which you all had last week.  He had that at
 
         19       least this morning, and he was given a copy of
 
         20       the proposal that the Chancellor gave.
 
         21            So those are the two items that he has
 
         22       reviewed, and my understanding -- he can speak
 
         23       for himself --
 
         24            COMMISSIONER BROGAN:  I would suggest
 
         25       this --
 
 
 
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          1            MR. OLENICK:  -- still not --
 
          2            COMMISSIONER BROGAN:  -- because it's going
 
          3       to be necessary, Mr. Olenick, at some point for
 
          4       someone to restate the amendment because of the
 
          5       ongoing negotiations.
 
          6            Would you read the amendment into the
 
          7       record.  That'll give Mr. Manrique an
 
          8       opportunity to hear it as it's being proposed.
 
          9            MR. MANRIQUE:  Thank you.
 
         10            MR. OLENICK:  Which amendment,
 
         11       Commissioner?
 
         12            COMMISSIONER BROGAN:  The original.  Not --
 
         13       not the one that has just been proposed, but the
 
         14       original negotiated --
 
         15            MR. OLENICK:  The one the Chancellor read?
 
         16            COMMISSIONER BROGAN:  Yes, sir.
 
         17            MR. OLENICK:  Okay.
 
         18            COMMISSIONER BROGAN:  Starting to sound
 
         19       like the House of Representatives.
 
         20            MR. OLENICK:  Prior to the transfer of the
 
         21       FCC license, membership in Barry-Tel. will
 
         22       consist of Barry and the Board of Regents in
 
         23       proportions to be negotiated by said parties;
 
         24       and Barry-Tel. shall maintain XEL TV-FM as a
 
         25       community-based independent, public broadcasting
 
 
 
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          1       voice serving the Palm Beach County and
 
          2       Treasure Coast areas with a special commitment
 
          3       to high quality education programming.
 
          4            That was the amendment suggested by the
 
          5       Chancellor.
 
          6            What I was discussing -- I apologize for
 
          7       confusing everybody -- was that the amendment
 
          8       that was received or sent on March 17th, which
 
          9       has five or six -- seven actually, different
 
         10       paragraphs, has a provision, I'll read that for
 
         11       the record.
 
         12            That states that WXEL hereby agrees for
 
         13       itself and its successors and assigns,
 
         14       including, but not limited to Barry-Tel., with
 
         15       respect to the capital items, and the original
 
         16       agreement, that it will not further assign its
 
         17       rights under the original agreement, or further
 
         18       transfer the capital items thereunder, without
 
         19       the prior, written consent of the Board in each
 
         20       instance.
 
         21            The foregoing agreement shall constitute an
 
         22       amendment to the original agreement, such that a
 
         23       default under this paragraph shall continue a
 
         24       default under the original agreement.
 
         25            So that's before you, and that was what I
 
 
 
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          1       had discussed initially, and I apologize for
 
          2       confusing everybody.
 
          3            COMMISSIONER BROGAN:  All right.  Let me
 
          4       now turn to Mr. Manrique, and see if he is
 
          5       satisfied with the language.
 
          6            MR. MANRIQUE:  Commissioner, we certainly
 
          7       thank you for what you're trying to do.  Our
 
          8       position is sort of that of Secretary Mortham.
 
          9            If you are not going to enter into an
 
         10       agreement with them, why not put it in the
 
         11       language.  That's our only -- our only concern,
 
         12       sir.
 
         13            And like I said, with the Sister, as well
 
         14       as with WXEL, they have no problems with this
 
         15       amendment.  The attorney said --
 
         16            COMMISSIONER BROGAN:  Well, let --
 
         17            MR. MANRIQUE:  -- that there's no problem.
 
         18            COMMISSIONER BROGAN:  Let me double-check
 
         19       that.  I --
 
         20            MR. MANRIQUE:  Okay.  It could be double.
 
         21       But, I mean, you know, the thing is --
 
         22            COMMISSIONER BROGAN:  I realize we're
 
         23       painting an airplane in flight here.  But I
 
         24       still want to turn to Sister and Chancellor Reed
 
         25       if, in fact, they are comfortable with the new
 
 
 
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          1       amendment that's been proposed.
 
          2            SISTER O'LAUGHLIN:  I do have comfort with
 
          3       it.  However, there is a problem a little bit
 
          4       with the experience in the past in terms of the
 
          5       concept with Channel 2.  And I think what
 
          6       Dade County is worried about is Channel 2
 
          7       managing it.
 
          8            It is my understanding in the conversations
 
          9       that we have had, that that would not take
 
         10       place.  It was also the concern that if we put
 
         11       an amendment in here, in three, five years,
 
         12       would that still hold.  I understand then we
 
         13       would have to come back to the Board for that.
 
         14            So as far as I'm concerned right now, I
 
         15       have comfort with it.  But I would really
 
         16       leave -- it's very important to me in the light
 
         17       of our dialogue and trust, that Commissioner --
 
         18       or Chancellor Reed has that comfort, too.
 
         19            And other than that, I don't know at this
 
         20       point whether --
 
         21            COMMISSIONER BROGAN:  Chancellor Reed, did
 
         22       you want to address it?
 
         23            At the fear -- at the risk of being
 
         24       redundant, is it an acceptable amendment to
 
         25       you?
 
 
 
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          1            DR. REED:  I don't think so, because
 
          2       I think it's just -- it's going to complicate
 
          3       our lives.  And if we need to come back before
 
          4       you, I'm willing to do that.
 
          5            But Sister Jeanne and I -- as I said, we
 
          6       spent 4 hours yesterday afternoon and all
 
          7       morning.
 
          8            Now, this language, I thought was the
 
          9       comfort language that the Dade County Schools
 
         10       would need, which says that Barry-Tel. shall
 
         11       maintain WXEL as a community-based, independent
 
         12       public broadcasting voice serving.
 
         13            I thought that's what that was doing.  But
 
         14       what -- what I'm hearing is is you want to put
 
         15       one more burden on us working out the conceptual
 
         16       agreement that we have.  And I don't think
 
         17       that's necessary, and we don't have any intent
 
         18       on hurting the Dade County School public
 
         19       television programming or station.
 
         20            I hope I -- we don't have to come back
 
         21       before you is what I'm saying.
 
         22            COMMISSIONER BROGAN:
 
         23       Commissioner Crawford.
 
         24            COMMISSIONER CRAWFORD:  I understand the
 
         25       Dade County's concern.  But I think the
 
 
 
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          1       assurance that the Chancellor's giving us is
 
          2       that there's a lot of ways for this Board to
 
          3       make sure that that happens.  I have no thought
 
          4       that it wouldn't happen.
 
          5            So I think we can probably -- I would
 
          6       recommend we just go ahead and move on what I
 
          7       see here as the amendment -- the
 
          8       first amendment, one that Chancellor Reed and
 
          9       Sister Jeanne is recommending.
 
         10            And if there's a motion necessary to get us
 
         11       in that posture, I'd make the appropriate
 
         12       motion.
 
         13            COMMISSIONER BROGAN:  It would be
 
         14       appropriate.
 
         15            All right.  We have a motion.
 
         16            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         17            COMMISSIONER BROGAN:  And a second.
 
         18            Further discussion by members of the
 
         19       State Board?
 
         20            DR. BEDFORD:  Commissioner --
 
         21            COMMISSIONER BROGAN:  Secretary?
 
         22            DR. BEDFORD:  -- Mr. Manrique would like to
 
         23       address the Board again.  I don't know --
 
         24            COMMISSIONER BROGAN:  Let's hear from the
 
         25       Secretary.
 
 
 
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          1            SECRETARY MORTHAM:  Well, I guess I'd like
 
          2       to -- I guess the proper thing would be to amend
 
          3       the amendment then -- or the motion to include
 
          4       the 3(a), because I have a tendency to go in the
 
          5       other direction.
 
          6            I believe that if, in fact, everyone is
 
          7       assuring us that this is not going to happen
 
          8       anyway, I think that for the State Board of
 
          9       Education to make Dade County comfortable with
 
         10       this agreement is the way that we ought to go.
 
         11            I don't -- I don't think that there's any
 
         12       way, shape, or form that Sister Jeanne or
 
         13       Chancellor Reed believes that this is going to
 
         14       happen anyway.  So I don't see why there's a
 
         15       problem with accepting this amendment.
 
         16            So I move the amendment to the motion.
 
         17            TREASURER NELSON:  Are you moving the
 
         18       amendment that is distributed here?
 
         19            SECRETARY MORTHAM:  3(a) --
 
         20            COMMISSIONER BROGAN:  3(a).
 
         21            SECRETARY MORTHAM:  -- yes.
 
         22            COMPTROLLER MILLIGAN:  And I'll second it.
 
         23            COMMISSIONER BROGAN:  All right.  We've got
 
         24       a motion and a second to include the original
 
         25       amendment, and amendment 3(a).
 
 
 
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          1            So I guess we're first going to vote on the
 
          2       substitute amendment, correct?
 
          3            DR. BEDFORD:  And with --
 
          4            COMMISSIONER BROGAN:  All right.  Any
 
          5       further discussion?
 
          6            Mr. --
 
          7            DR. BEDFORD:  With that in mind, another
 
          8       person from the audience has asked to address in
 
          9       light of the amendment.
 
         10            COMMISSIONER BROGAN:  Quickly, please.
 
         11            MR. BAGGETT:  Yes, sir.
 
         12            DR. BEDFORD:  Give your name and --
 
         13            MR. BAGGETT:  Cabinet members, my name is
 
         14       Fred Baggett.  I am an attorney with Greenberg,
 
         15       Traurig, and I represent Channel 2.
 
         16            And this is the first -- in all of the
 
         17       discussion of the XEL lease, this is the first
 
         18       time anyone has brought forward the issue to --
 
         19       to in writing exclude Channel 2 from anything.
 
         20       We haven't done anything.
 
         21            Channel 2 is a premier -- one of the
 
         22       premier public education stations in this
 
         23       state.  It is a good -- a great community
 
         24       citizen providing community-based television
 
         25       through south Florida.
 
 
 
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          1            To have an amendment like this based on an
 
          2       open assertion that unless you have it, you're
 
          3       endangering public education in Dade County is
 
          4       truly an affront.  It truly is.
 
          5            We have worked through this process,
 
          6       discussed this matter with Chancellor Reed, with
 
          7       Regent Moyle to ensure that WXEL remained a
 
          8       public education entity.
 
          9            To come in here now and at the very last
 
         10       minute on this matter be singled out in an
 
         11       amendment truly is bothersome and an affront for
 
         12       something we haven't done.
 
         13            We would ask that you not make this slight
 
         14       on Channel 2, that you accept the recommendation
 
         15       of Chancellor Reed, and go forward with the
 
         16       action that's before you that's been worked out
 
         17       by the Sister and Chancellor Reed.
 
         18            Thank you.
 
         19            COMMISSIONER BROGAN:  Thank you,
 
         20       Mr. Baggett.
 
         21            SECRETARY MORTHAM:  Commissioner --
 
         22            Mr. Baggett, I guess my question would be
 
         23       to you is if, in fact, you've had conversations
 
         24       with Chancellor Reed specific to this issue --
 
         25       I mean, we have -- to my knowledge, have not
 
 
 
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          1       been contacted by your office --
 
          2            MR. BAGGETT:  Yes, ma'am.
 
          3            SECRETARY MORTHAM:  -- or W-- or
 
          4       Channel 2.
 
          5            And my concern would be is:  Do you,
 
          6       in fact, intend at any point in time to try to
 
          7       be involved in that consortium?
 
          8            MR. BAGGETT:  We have no rights to the
 
          9       license, and we don't intend under that
 
         10       consortium to take the license.  If this
 
         11       action's taken -- I can't speak for what
 
         12       Channel 2 may find itself necessary -- may find
 
         13       it necessary to do with regards to the pending
 
         14       license application at this time.  I can't speak
 
         15       to that.  I'm not involved in that.
 
         16            My only knowledge is that in what you have
 
         17       before you, we have had a great interest in
 
         18       seeing that the university system be involved.
 
         19       We have spoken with your office on that issue,
 
         20       that the university systems be involved.
 
         21            But not that we try to take over the
 
         22       license from WXEL.
 
         23            SECRETARY MORTHAM:  So then you're saying
 
         24       that if you have no intention to be involved in
 
         25       this consortium that we are basically approving
 
 
 
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          1       here today, why do you find it offensive?
 
          2            Because, I mean, obviously it's not
 
          3       intended to be offensive to Channel 2
 
          4       whatsoever.  But what it does say is that we
 
          5       want this to be the consortium that is, in fact,
 
          6       put in this agreement.
 
          7            MR. BAGGETT:  Yes, ma'am.
 
          8            We understand and accept the consortium
 
          9       concept.  That's -- that's not at issue.  Would
 
         10       we be involved in the consortium?  If the
 
         11       consortium wanted us, or agreed with us, for us
 
         12       to help participate with -- with programming or
 
         13       something of that nature?  We would like to do
 
         14       that.  But that's their choice.  That's not our
 
         15       choice.  We're not seeking the license.
 
         16            COMMISSIONER BROGAN:  And the way I read
 
         17       the amendment, WXEL is not precluded from
 
         18       participating in some way, shape, or form from
 
         19       the consortium as I read --
 
         20            MR. BAGGETT:  WPBT --
 
         21            COMMISSIONER BROGAN:  -- the amendment.
 
         22            MR. BAGGETT:  -- is.
 
         23            COMMISSIONER BROGAN:  Excuse me.
 
         24            MR. BAGGETT:  Why would it not be?
 
         25       I'm sorry, sir.  But it would appear that it
 
 
 
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          1       would be by the amendment to the amendment.
 
          2            ATTORNEY GENERAL BUTTERWORTH:
 
          3       Commissioner, could someone read that amendment
 
          4       again, because I --
 
          5            SECRETARY MORTHAM:  It says license, it
 
          6       doesn't say that you couldn't participate in
 
          7       programming.  It just says licenses.
 
          8            Barry-Tel. agrees that it will not further
 
          9       assign, transfer, or allow the FCC licenses here
 
         10       involved to be utilized or managed by third
 
         11       parties, other than the consortium made up of
 
         12       the entities identified below in paragraph 4,
 
         13       without the approval of WXEL, or its successors
 
         14       or assigns.
 
         15            It doesn't talk about programming at all.
 
         16       It talks about the licenses.
 
         17            MR. BAGGETT:  It does talk about managed.
 
         18            SECRETARY MORTHAM:  Well, yes.  It does
 
         19       talk about managing.
 
         20            MR. BAGGETT:  This would preclude the
 
         21       consortium from contracting with anybody else to
 
         22       manage the facility on their behalf.
 
         23            SISTER O'LAUGHLIN:  Without coming back to
 
         24       the Board.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  Without
 
 
 
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          1       coming back here.
 
          2            MR. BAGGETT:  Yeah.
 
          3            COMMISSIONER BROGAN:  Right.
 
          4            Any change in management would have to come
 
          5       before this body, correct?
 
          6            DR. BEDFORD:  That's right.
 
          7            SECRETARY MORTHAM:  Correct.
 
          8            DR. BEDFORD:  That's right.  That is
 
          9       correct.
 
         10            COMMISSIONER BROGAN:  All right.
 
         11            Chancellor?
 
         12            DR. REED:  I just saw this just, you know,
 
         13       this morning.  It doesn't say that
 
         14       Dade County -- doesn't say that you have to come
 
         15       back to this -- to this Board.  Now, if you want
 
         16       to put that in here, that -- give me a little
 
         17       bit more comfort.
 
         18            But one of the things -- I talked to lots
 
         19       of people about the consortium.  I talked to the
 
         20       Florida International University, I talked to
 
         21       Broward County -- the community college in
 
         22       Broward County, Palm Beach Community College,
 
         23       Indian River College.  I talked to Channel 2.
 
         24            Because when I left here, I thought it was
 
         25       open to talk to everybody about the consortium
 
 
 
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          1       and who would or wouldn't be involved in that.
 
          2            Then what happened was then we came back
 
          3       and then Sister Jeanne and I then said, okay,
 
          4       we'll put together a public, private educational
 
          5       partnership, and then we will go back after we
 
          6       do that to work with the consortium.
 
          7            SISTER O'LAUGHLIN:  Both public and
 
          8       private.
 
          9            DR. REED:  Both public and private.  There
 
         10       was even a mention of --
 
         11            SISTER O'LAUGHLIN:  Lynn at Nova --
 
         12            DR. REED:  -- Nova Southeast as a part of
 
         13       that.
 
         14            COMMISSIONER BROGAN:  Right.
 
         15            DR. REED:  So, yes, I talked to all those
 
         16       people.
 
         17            I'm just not sure what this does.  Does
 
         18       this say that if we have a partnership between
 
         19       Barry and the Board of Regents, that we can't
 
         20       ever have somebody help us manage the station if
 
         21       Barry and one of our universities don't want to
 
         22       manage it?
 
         23            That's what I'm afraid that you're getting
 
         24       ready to do.  Unless maybe the protection would
 
         25       come back in here.  Because it says without
 
 
 
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          1       approval of WXEL.
 
          2            But --
 
          3            ATTORNEY GENERAL BUTTERWORTH:  It
 
          4       doesn't --
 
          5            Commissioner --
 
          6            DR. REED:  I need some --
 
          7            ATTORNEY GENERAL BUTTERWORTH:  I have real
 
          8       problems with this particular amendment.
 
          9       I think -- it doesn't say what Dade County wants
 
         10       it to say.  And I believe it is overloading the
 
         11       wagon.
 
         12            I think we're covered with what the
 
         13       Chancellor and Sister Jeanne have stated.
 
         14       I think it's their intent for a -- the
 
         15       university system to be managing this station,
 
         16       as I understand it.  That is what everybody has
 
         17       stated.
 
         18            I know I've had the opportunity to speak to
 
         19       all the participants.  And I've been very much,
 
         20       I think, hoping that they would come to that
 
         21       conclusion.  And I'm convinced they have.
 
         22            If they wish to have it managed by somebody
 
         23       else, they better hope it's another
 
         24       Attorney General sitting here.
 
         25            COMMISSIONER CRAWFORD:  I agree with that.
 
 
 
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          1       I'd suggest we vote if --
 
          2            COMMISSIONER BROGAN:  Let me just ask one
 
          3       more time, anybody has anything different to say
 
          4       on the issue than's already been said.
 
          5            MR. MANRIQUE:  I don't have a problem with
 
          6       withdrawing that amendment if we can come up
 
          7       with a conceptual amendment, Commissioner, that
 
          8       says what we're talking about here doing.
 
          9            And basically is -- and we have the highest
 
         10       respect for WPBT.  What we're saying here is:
 
         11       If they are going to enter into an agreement
 
         12       with them, come before this Board.  That's all
 
         13       we're saying.
 
         14            And if you can have a conceptual amendment,
 
         15       and I think that that's what we heard from the
 
         16       Chancellor and from the Sister, we would live
 
         17       with that, and we can withdraw this amendment if
 
         18       we can come up with a conceptual --
 
         19            COMMISSIONER BROGAN:  Sister, you will have
 
         20       the final word on this issue.
 
         21            SISTER O'LAUGHLIN:  Blessings, my son.
 
         22            The important thing here is the original
 
         23       amendment says that it will depend on the
 
         24       negotiations between these parties.  And that
 
         25       will be one of -- we will guarantee that that
 
 
 
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          1       will be one of the areas that we will
 
          2       negotiate.
 
          3            And we will -- I make the commitment to the
 
          4       Dade County community -- the public schools that
 
          5       in that negotiation for that article, we will
 
          6       talk with them.
 
          7            COMMISSIONER BROGAN:  All right.
 
          8            SECRETARY MORTHAM:  Question.
 
          9            COMMISSIONER BROGAN:  Secretary.
 
         10            SECRETARY MORTHAM:  To Mr. Bedford,
 
         11       I believe.
 
         12            The -- with the original agreement, and the
 
         13       amendment that was brought to our attention a
 
         14       couple of hours ago from the Board of Regents
 
         15       and Sister Jeanne, is it your opinion for the
 
         16       record that if, in fact, the licenses or the
 
         17       management of this was other than within the
 
         18       consortium --
 
         19            I can see Mr. Olenick, you're going to be
 
         20       up here.
 
         21            -- that it would have to come back before
 
         22       the Cabinet.
 
         23            DR. BEDFORD:  And the only reason I want
 
         24       Mike is the word "management."  I'm very
 
         25       comfortable with ownership.
 
 
 
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          1            MR. OLENICK:  The original agreement has
 
          2       sole and exclusive control, and if that sole and
 
          3       exclusive control changes, it comes back to
 
          4       you.  That's the original agreement.
 
          5            DR. BEDFORD:  Okay.  Okay.
 
          6            Thank you, Mike.
 
          7            SECRETARY MORTHAM:  So was that yes to my
 
          8       question?  For the record.
 
          9            MR. OLENICK:  I'll learn eventually.
 
         10            Yes, ma'am.
 
         11            SECRETARY MORTHAM:  Okay.  Then if that is
 
         12       now on the record, and I believe Dade County can
 
         13       feel comfortable that it will come back before
 
         14       the Cabinet, I'd like to withdraw my amendment.
 
         15            COMMISSIONER BROGAN:  Maker of the second,
 
         16       withdrawal?
 
         17            All right.  Then we're back to the original
 
         18       amendment which was moved and seconded for
 
         19       the -- for the agreement.
 
         20            Any last discussions by the members of the
 
         21       State Board of Education?
 
         22            Hearing none, we have a motion and a
 
         23       second.
 
         24            I gave you ample opportunity.
 
         25            Without objection, agreement passes.
 
 
 
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          1            And, again, we --
 
          2            DR. BEDFORD:  I suppose -- I suppose that
 
          3       means I lose the Academy Award for directing --
 
          4            COMMISSIONER BROGAN:  I think you did.
 
          5       And --
 
          6            DR. BEDFORD:  I think that's --
 
          7            COMMISSIONER BROGAN:  And, again, we want
 
          8       to thank both Sister Jeanne, Chancellor Reed,
 
          9       and all the others who worked to put that
 
         10       agreement together.  I know how difficult it
 
         11       was, and you're to be commended.
 
         12            I think the public interest will be served
 
         13       very well.
 
         14            All right.  Moving on.
 
         15            DR. BEDFORD:  Item 5, approval of the State
 
         16       of Florida Statewide Emergency Sheltering Plan,
 
         17       which I believe you have a blue book that looks
 
         18       like this.
 
         19            ATTORNEY GENERAL BUTTERWORTH:  Move the
 
         20       Plan.
 
         21            COMMISSIONER BROGAN:  I have a motion.
 
         22            COMMISSIONER CRAWFORD:  Second.
 
         23            COMMISSIONER BROGAN:  Motion and a second.
 
         24            Discussion?
 
         25            Without objection, Item 5 passes.
 
 
 
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          1            DR. BEDFORD:  Item 6 is an amendment to
 
          2       Rule 6A-2.0111 --
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          4            DR. BEDFORD:  -- Educational --
 
          5            SECRETARY MORTHAM:  Second.
 
          6            DR. BEDFORD:  -- Facilities.
 
          7            COMMISSIONER BROGAN:  I have a motion and a
 
          8       second.
 
          9            Discussion?
 
         10            Without objection, Item 6 passes.
 
         11            DR. BEDFORD:  Item 7 and 8, we have
 
         12       President Bob Dawson from the Florida School of
 
         13       Deaf and Blind.
 
         14            COMMISSIONER BROGAN:  President Dawson.
 
         15            MR. DAWSON:  6D-12.002 amends the Campus
 
         16       Security/Police Manual.
 
         17            Recommend --
 
         18            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         19            MR. DAWSON:  -- approval.
 
         20            SECRETARY MORTHAM:  Second.
 
         21            COMMISSIONER BROGAN:  Motion and a second.
 
         22            Discussion?
 
         23            Without objection --
 
         24            MR. DAWSON:  6D--
 
         25            COMMISSIONER BROGAN:  -- item passes.
 
 
 
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          1            MR. DAWSON:  6D-5.003 is amended to include
 
          2       additional personnel and --
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          4            MR. DAWSON:  -- modify specific --
 
          5            COMMISSIONER CRAWFORD:  Second.
 
          6            MR. DAWSON:  -- titles and job
 
          7       descriptions.
 
          8            COMMISSIONER BROGAN:  I have a motion and a
 
          9       second.
 
         10            Discussion?
 
         11            Without objection, Item 8 passes.
 
         12            MR. DAWSON:  Thank you.
 
         13            TREASURER NELSON:  Mr. Chairman --
 
         14            COMMISSIONER BROGAN:  Yes, sir.
 
         15       Commissioner.
 
         16            TREASURER NELSON:  -- I need to go back to
 
         17       Item 5.
 
         18            ATTORNEY GENERAL BUTTERWORTH:  That's why
 
         19       we passed it quickly.  While you were on the way
 
         20       out, we --
 
         21            COMMISSIONER BROGAN:  Yes, sir,
 
         22       Commissioner.
 
         23            TREASURER NELSON:  One of the
 
         24       recommendations included in this plan calls for
 
         25       using the Catastrophic Hurricane Fund to help
 
 
 
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          1       defray the increase in construction costs
 
          2       associated with converting public education
 
          3       facilities into emergency shelters.
 
          4            (Commissioner Crawford exited the room.)
 
          5            TREASURER NELSON:  I want to go on record
 
          6       in opposition to the use of the Cat Fund for
 
          7       this purpose.
 
          8            When we got the IRS to sign off making the
 
          9       Cat Fund not taxable, the IRS said it had to
 
         10       look, act, walk, and quack like a government,
 
         11       and so 10 million was to be set-aside to be used
 
         12       for residential mitigation purposes.
 
         13            And since homeowners pay -- this is
 
         14       homeowner policyholders -- pay the premiums into
 
         15       this Cat Fund 100 percent, it's imperative that
 
         16       the mitigation programs provide a direct benefit
 
         17       to the homeowners, and not to commercial
 
         18       buildings or public buildings.
 
         19            Now, while we agree that we need to use a
 
         20       limited number of --
 
         21            (Commissioner Crawford entered the room.)
 
         22            TREASURER NELSON:  -- policyholders
 
         23       homeowners' money in the Cat Fund dollars for
 
         24       university research and public awareness, we
 
         25       feel that funding for converting schools to
 
 
 
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          1       emergency shelter facilities should come from
 
          2       other sources.
 
          3            It's my understanding that FEMA is
 
          4       proposing a fifty million dollar grant devoted
 
          5       specifically for retrofitting hurricane
 
          6       resistant construction.
 
          7            So since I had walked to the side and this
 
          8       item passed within the blink of an eye, I would
 
          9       ask someone on the Board to move to reconsider
 
         10       so that I can offer a motion to amend the plan.
 
         11            COMMISSIONER CRAWFORD:  I'd so move.
 
         12            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         13            COMMISSIONER BROGAN:  We've got a motion
 
         14       and a second to reconsider?
 
         15            Discussion?
 
         16            All right.  Without objection, we'll
 
         17       reconsider the item.
 
         18            TREASURER NELSON:  Then, Mr. Chairman, I
 
         19       move to amend the plan by deleting the
 
         20       recommendation which identifies the use of the
 
         21       Catastrophic Funds as a dedicated funding source
 
         22       for constructing facilities with enhanced
 
         23       hurricane protection areas.
 
         24            COMMISSIONER BROGAN:  We have a motion.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
 
 
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          1            COMMISSIONER CRAWFORD:  Second.
 
          2            COMMISSIONER BROGAN:  And a second.
 
          3            COMPTROLLER MILLIGAN:  Just a comment.
 
          4            COMMISSIONER BROGAN:  General.
 
          5            COMPTROLLER MILLIGAN:  I do understand that
 
          6       this is -- they are to prepare and submit a plan
 
          7       where there is no plan in place.
 
          8            And what we are telling them up-front is
 
          9       that they are not to consider the Cat Fund in
 
         10       the development of that plan.
 
         11            TREASURER NELSON:  On the basis of what --
 
         12       of the policy that I --
 
         13            COMPTROLLER MILLIGAN:  And --
 
         14            TREASURER NELSON:  -- enunciated, which was
 
         15       it's homeowners' money, it shouldn't be going to
 
         16       public buildings.
 
         17            COMPTROLLER MILLIGAN:  That's correct.  But
 
         18       we have no plan in place, and we are just
 
         19       defining an element of restriction in terms of
 
         20       their developing the plan.
 
         21            COMMISSIONER BROGAN:  Yes, sir.
 
         22            Further discussion.
 
         23            Hearing none, we have a motion and a second
 
         24       on the floor.
 
         25            Without objection, item passes.
 
 
 
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          1            TREASURER NELSON:  Now may I walk to the
 
          2       side?
 
          3            DR. BEDFORD:  And we would ask to withdraw
 
          4       Item 9.
 
          5            SECRETARY MORTHAM:  Move withdrawal.
 
          6            COMMISSIONER BROGAN:  Motion --
 
          7            COMMISSIONER CRAWFORD:  Second.
 
          8            COMMISSIONER BROGAN:  -- and a second.
 
          9            Without objection, we'll withdraw Item 9.
 
         10            COMMISSIONER BROGAN:  With that --
 
         11            DR. BEDFORD:  -- to Item 2, sir.
 
         12            (Treasurer Nelson exited the room.)
 
         13            COMMISSIONER BROGAN:  Yes, ma'am.  With --
 
         14            DR. BEDFORD:  With that, Item 2 is appeal
 
         15       of the Florida Charter Schools, Don McCammon,
 
         16       denied by Seminole County School Board.
 
         17            COMMISSIONER BROGAN:  I'm going to, members
 
         18       of the State Board, read into the record --
 
         19       similarly we do this before clemency hearings.
 
         20       And because this is a new process for all of us
 
         21       as defined by State Board rule, I'd like to read
 
         22       into the --
 
         23            (Attorney General Butterworth exited the
 
         24       room.)
 
         25            COMMISSIONER BROGAN:  -- record some of the
 
 
 
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          1       parameters regarding the statute, the
 
          2       State Board rule, and some of the guidelines
 
          3       that we will use today so that we can get off on
 
          4       an even keel relative to the appeals.
 
          5            State Board of Education will now consider
 
          6       appeals of denials of charter school
 
          7       applications pursuant to 96-186, Laws of
 
          8       Florida.  And we'll take a moment to explain the
 
          9       process.
 
         10            As prescribed by law, Florida School Boards
 
         11       are given authority to grant approval to
 
         12       applicants who wish to operate charter schools
 
         13       within a district.  A further provision of the
 
         14       law allows an applicant who has been denied a
 
         15       charter the right to appeal the School Board's
 
         16       decision to the State Board of Education.
 
         17            Based on the written record and oral
 
         18       argument presented at this meeting, the
 
         19       State Board must vote to recommend acceptance or
 
         20       rejection of the appeal to the School Board.
 
         21            The vote requires a simple majority of the
 
         22       members, and by law is not subject to the
 
         23       provisions of the Administrative Procedures Act.
 
         24            The rule governing the appeal process was
 
         25       unanimously adopted by this Cabinet sitting as
 
 
 
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          1       the State Board of Education on December 10th,
 
          2       1996.  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 School District Board, and their
 
          6       representatives:
 
          7            One, 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; two,
 
         10       the written argument submitted by the applicant
 
         11       to the State Board is limited to discussion of
 
         12       those errors; three, the record of this
 
         13       proceeding is limited to the written arguments,
 
         14       the charter school application itself, and
 
         15       transcripts of meetings before the School
 
         16       District Board; four, at this hearing,
 
         17       representatives of each party may give oral
 
         18       argument.  Oral argument is limited to a summary
 
         19       of the written arguments previously submitted to
 
         20       the State Board; five, each side is alotted
 
         21       30 minutes, which we will adhere to rigidly, to
 
         22       present its summary; six, after the summaries
 
         23       are presented, a vote will be taken and a
 
         24       written recommendation of the vote will be
 
         25       returned to the District School Board.
 
 
 
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          1            So we will now move into the first of the
 
          2       two charter appeals.  Again, knowing that we are
 
          3       new in this process, we'll try to walk through
 
          4       this together.
 
          5            But I will again ask the participants to
 
          6       please recognize that there is 30 minutes which
 
          7       has been granted a side, and that will include
 
          8       rebuttal.  So if, in fact, it is your
 
          9       determination that you would like to reserve
 
         10       some of your 30-minute allotment for rebuttal,
 
         11       we will so calculate.
 
         12            And with that, the first appeal is the
 
         13       Florida Charter Schools, Don McCammon, which was
 
         14       denied by the Seminole County School Board.
 
         15            And we'll hear from the applicant.
 
         16            Please identify yourself for the record.
 
         17            MR. McCAMMON:  Thank you.
 
         18            My name's Don McCammon.  I'm President of
 
         19       Florida Charter Schools, a resident of
 
         20       Seminole County, Florida.
 
         21            Madam Secretary, members of the Cabinet,
 
         22       I -- I am going to be our second speaker.  I'd
 
         23       like to introduce our first speaker, who's a
 
         24       member of our Board of Directors, has given us a
 
         25       great deal of advice and counsel since the
 
 
 
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          1       beginning.
 
          2            He's the president of James Madison
 
          3       Institute here in Tallahassee, and the former
 
          4       president of Florida State University,
 
          5       Dr. J. Stanley Marshall.
 
          6            DR. MARSHALL:  Good afternoon, Mr. Chair,
 
          7       members of the Cabinet.
 
          8            The Florida Legislature in 1996 enacted
 
          9       legislation making possible the establishment of
 
         10       charter schools in Florida.  Florida thus joined
 
         11       more than 20 other states in recognizing the
 
         12       strength of the charter school movement across
 
         13       the country.
 
         14            The Florida Legislature, I believe, took
 
         15       this action for three reasons:  First, to
 
         16       accommodate the wishes of parents and teachers
 
         17       and Florida citizens generally, who are
 
         18       confident of their ability to establish and
 
         19       operate a public school with a mission and
 
         20       program that they would decide upon.
 
         21            Second, to provide for the establishment of
 
         22       schools with different missions, different rules
 
         23       and regulations, different schedules, different
 
         24       approaches to instruction, a different role for
 
         25       parents.
 
 
 
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          1            In other words, a different concept of
 
          2       schooling, but one that recognizes the school's
 
          3       obligations to provide instruction in the core
 
          4       academic subjects.
 
          5            And, third, I believe, the Legislature in
 
          6       passing the Charter Schools Act recognized the
 
          7       will of the people of Florida who believe they
 
          8       have a right, indeed, an obligation, to provide
 
          9       for their children --
 
         10            (Treasurer Nelson entered the room.)
 
         11            DR. MARSHALL:  -- schooling opportunities
 
         12       which in their opinion best serve the needs and
 
         13       interests of their children.
 
         14            The approval of six applications for
 
         15       charter schools in the weeks following the
 
         16       passage of the Act in May of last year, in time
 
         17       for those schools to be opened in July or
 
         18       August, speaks both to the zeal and the
 
         19       dedication of charter school proponents, and to
 
         20       the good faith of the District School Boards
 
         21       that approved those applications.
 
         22            Many of the advocates of charter schools
 
         23       were gratified by the way -- at the way the
 
         24       dynamics of charter schools developed in 1996.
 
         25            The picture in 1997, however, is somewhat
 
 
 
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          1       less encouraging.  And I should like to call
 
          2       your attention respectfully to some of the
 
          3       impediments that now seem to stand in the way of
 
          4       progress in the evolution of charter schools in
 
          5       Florida.
 
          6            My comments are made in my capacity as a
 
          7       member of the Board of Directors of Florida
 
          8       Charter Schools, Inc.  In this capacity, I've
 
          9       reviewed the plan, and I believe that it is
 
         10       sound.
 
         11            I do not, however, confuse my role with
 
         12       that of the School Board, which is described in
 
         13       the legislation as a sponsor of the charter
 
         14       school, which -- in the language and the law,
 
         15       which shall receive and review all applications
 
         16       and by majority vote, approve or deny the
 
         17       application, as the Commissioner just said.
 
         18            In other words, I recognize the authority
 
         19       of the School Board, and with that authority,
 
         20       its obligation to examine the application and
 
         21       its provisions for student eligibility; rights
 
         22       and qualifications of employees; length of the
 
         23       school year; physical facilities; funding for
 
         24       start-up; and perhaps most important of all,
 
         25       accountability of performance.
 
 
 
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          1            In the examination of the application on
 
          2       these and other criteria, the School Board and
 
          3       its staff will surely question and prove -- and
 
          4       probe all of these in-depth.  And they must, as
 
          5       they fulfill the requirement of the law, to
 
          6       approve or deny the application, weigh the
 
          7       answers to these questions and render a
 
          8       judgment.
 
          9            Mr. McCammon, the President of Florida
 
         10       Charter Schools, Inc., will discuss in some
 
         11       detail what he regards as errors on the part of
 
         12       the Seminole County School Board in denying his
 
         13       application.
 
         14            Mr. McCammon has been the principal officer
 
         15       in Florida Charter Schools in the preparation of
 
         16       the charter school plan, and in discussions and
 
         17       conferences with the Superintendent and School
 
         18       District staff members.
 
         19            He's prepared to describe those exchanges,
 
         20       and to explain why he believes Florida Charter
 
         21       Schools, as applicant, was denied due process,
 
         22       and why the State Board of Education should
 
         23       approve the amended charter school application
 
         24       as he submitted -- submitted it to the
 
         25       Seminole County School Board on February 11,
 
 
 
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          1       1997.
 
          2            As a member of the Board of Florida Charter
 
          3       Schools, and as one who has conferred with
 
          4       several interested parties throughout this state
 
          5       in the charter school movement in Florida, and
 
          6       who, indeed, encouraged the passage of the bill
 
          7       last year, I should like to tell you now why I
 
          8       believe the spirit of the law, at least the
 
          9       spirit of the law, is being trampled.
 
         10            The schedule established by the Seminole
 
         11       School Board for processing charter school
 
         12       applications seems to have needlessly delayed
 
         13       the process.
 
         14            The Board passed an emergency resolution on
 
         15       September 19, 1996, stipulating that no further
 
         16       applications for charter schools would be
 
         17       accepted until December.  Denial of the
 
         18       applications in February, with the time required
 
         19       for an appeal to this body, and then the time
 
         20       allowed for referral back to the local
 
         21       School Board, all of this will make it very
 
         22       difficult for proponents to complete their plans
 
         23       to open school -- charter schools in August of
 
         24       1997.
 
         25            The time restrictions imposed by the
 
 
 
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          1       Seminole County School Board do not appear in
 
          2       the law itself.  They are imposed by the
 
          3       School Board.
 
          4            But there's further evidence of obstruction
 
          5       by school boards that I should like to call to
 
          6       your attention.  Existing schools may can be --
 
          7       may be converted to charter schools on the basis
 
          8       of a polling of teachers and parents.
 
          9            The Seminole School Board has refused twice
 
         10       to provide a list of parents in the district.
 
         11       Such directory information is not protected by
 
         12       law.  The Board simply stated it is their policy
 
         13       not to give out such information.
 
         14            Public statements by school officials
 
         15       representing hostility to charter schools,
 
         16       indeed, to the law, would seem to be in
 
         17       violation of the spirit of the law.  The
 
         18       Seminole County School Superintendent appeared
 
         19       on local television; that is, Orlando's
 
         20       Channel 6, with the following statement:
 
         21       Charter schools haven't been successful anywhere
 
         22       in the country.
 
         23            That statement, I believe, is at odds with
 
         24       the facts.
 
         25            I discovered as I examined the transcript
 
 
 
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          1       of the School Board's review of the charter
 
          2       school application in another county that a
 
          3       School Board member made the following
 
          4       statement:  The legislation -- this is a
 
          5       quotation -- the legislation for charter schools
 
          6       said clearly that the purpose of charter schools
 
          7       was to serve at-risk students.
 
          8            But the law addresses that question,
 
          9       in fact, in the following language.  The purpose
 
         10       of charter schools shall be to:  Increase
 
         11       learning opportunities for all students, with
 
         12       special emphasis on expanded learning
 
         13       opportunities for students who are identified as
 
         14       academically low achieving.
 
         15            That's the end of the quotation from the
 
         16       law.
 
         17            I believe that School Board member failed
 
         18       to make a distinction between an express
 
         19       preference in the law, and a requirement.
 
         20            The same School Board member raised a
 
         21       number of questions which seemed to imply that a
 
         22       purpose of the charter school should be to
 
         23       address demographic and other problems of the
 
         24       local school district.
 
         25            Consider the following quotation taken from
 
 
 
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          1       that transcript.  The School Board member said:
 
          2       How many of the at-risk students in this
 
          3       particular county will be served by these
 
          4       schools?  And are they students in the greatest
 
          5       need in this county?  And what, basically, are
 
          6       we trying to accomplish through the use of
 
          7       charter schools in this area?
 
          8            These statements, and others in the
 
          9       transcript of the hearing, seem to reveal the
 
         10       notion that some School Board members do not
 
         11       understand that charter schools are independent
 
         12       public schools.
 
         13            From the law, this quotation:  Part of the
 
         14       State's program of public education, whose
 
         15       purpose is not to help or hinder the goals of
 
         16       the local school district.
 
         17            The law stipulates that the purpose of the
 
         18       charter schools, and I quote from the law:
 
         19       Should be to improve student learning; encourage
 
         20       the use of different and innovative learning
 
         21       methods; increase choice of learning
 
         22       opportunities; create new professional
 
         23       opportunities for teachers, including the
 
         24       opportunity to own learning programs at the
 
         25       school site.  To own the learning program at the
 
 
 
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          1       school site.
 
          2            I take that to mean that School Board
 
          3       members are not required, nor, indeed, permitted
 
          4       to direct or supervise the programs in the
 
          5       charter schools.  The accountability comes at
 

          6       the end of the school year when charter school
 
          7       students are tested, and the test results
 
          8       reported to make -- again, I quote from the
 
          9       law -- to make an annual progress report to its
 
         10       sponsor, the State Board of Education, the
 
         11       Commissioner of Education, the President of the
 
         12       Senate, and the Speaker of the House of
 
         13       Representatives.
 
         14            I believe it is unwarranted, and perhaps --
 
         15       and a legal intrusion on the part of the
 
         16       School Board members into the charter school
 
         17       plan, when they require that the charter school
 
         18       serves some purpose related to the overall
 
         19       program or mission of the school district.
 
         20            My opinions on these charter school
 
         21       questions are offered as observations --
 
         22       observations of one citizen with a long-standing
 
         23       interest in public education, and a particular
 
         24       interest now in charter schools.
 
         25            Some of these observations could be
 
 
 
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          1       documented, but I'm not prepared to do that
 
          2       today, and I don't want to.  Others are based on
 
          3       reports from respected colleagues and
 
          4       professional associates who believe that the
 
          5       charter school movement is in danger of being
 
          6       seriously damaged by the actions of people who
 
          7       have a vested interest in seeing it fail.
 
          8            They do not seem to understand that it's
 
          9       the law in Florida.  There appear to be a number
 
         10       of ways in which the law can be circumvented, or
 
         11       at least ways in which lengthy delays can be
 
         12       worked into the system, the end result of which
 
         13       will surely be to discourage those whose
 
         14       place -- who place their faith in a promising
 
         15       educational innovation enacted by the Florida
 
         16       Legislature and signed by the Governor.
 
         17            Thank you.
 
         18            COMMISSIONER BROGAN:  Thank you,
 
         19       Dr. Marshall.
 
         20            Questions?
 
         21            Mr. McCammon?
 
         22            MR. McCAMMON:  Let me say briefly a little
 
         23       bit about the features of our charter school.
 
         24            We're a night high school for students at
 
         25       risk of dropping out.  They have small classes,
 
 
 
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          1       an average class size of 15 students, a
 
          2       guaranteed maximum of no more than 20 students.
 
          3            Students attend four nights a week, they
 
          4       can earn extra credits during the day with work
 
          5       credits, and have 9 credits per year.
 
          6            They have personal education plans,
 
          7       advisory groups, they can get extra help in
 
          8       individual tutoring.  We have mental health
 
          9       counselors at the school, will make excessive
 
         10       use of -- or extensive use of computers.
 
         11            Our school will be a drug-free workplace.
 
         12       We've found that high school students -- I've
 
         13       worked with them extensively -- do not
 
         14       appreciate double standards, and we believe that
 
         15       that should be something that's important and
 
         16       throughout the state for all our schools.
 
         17            We have a school council made up of three
 
         18       parents, two teachers, one administrator, and
 
         19       one outside business leader.  They have to
 
         20       approve the curriculum and the principal.
 
         21            We have majors and scholarships.  Students
 
         22       can take extra courses in a specialty area like
 
         23       math or English and the arts, and they can earn
 
         24       a major.
 
         25            And if they graduate with a major and a
 
 
 
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          1       2.5 GPA, they can get $1,000 scholarship.  We've
 
          2       set aside $150,000 in the third year just for
 
          3       these scholarships.
 
          4            We have faculty incentives.  I -- some of
 
          5       the comments that were made earlier about
 
          6       attracting and keeping faculty.  One of the
 
          7       biggest problems I think we have is the size of
 
          8       our classes, and the load that our teachers
 
          9       have.
 
         10            The Carnegie Foundation for the Advancement
 
         11       of Teachers recommends a load of no more than 80
 
         12       to 90 students.  In our county, we have
 
         13       approximately 150 to a 160 students per teacher.
 
         14            We will have a maximum of 40 students per
 
         15       teacher in our school.  If the school meets its
 
         16       performance goal, every teacher the first year
 
         17       will receive, every teacher, a $500 bonus, the
 
         18       administrators will see a $250 bonus.  The
 
         19       second and third year they'll get $1,000 bonus;
 
         20       and the administrators, a $500 bonus.
 
         21            This is similar to what's being done in
 
         22       Charlotte, North Carolina, very effectively
 
         23       now.  Where, by the way, they have reduced
 
         24       dramatically their administrative costs and
 
         25       gotten their class sizes down to 17 students per
 
 
 
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          1       class.
 
          2            I, too, respect the authority of a local
 
          3       school board.  I think they have the great
 
          4       responsibility of overseeing the education of
 
          5       our children.  They build the schools; they
 
          6       choose the principals and faculty; they make
 
          7       certain our children receive a high quality
 
          8       education, the education that we would all like
 
          9       to see in Florida.
 
         10            They are elected officials.  They have the
 
         11       faith and confidence of the local electorate.
 
         12       They have the duty and the obligation to use
 
         13       great care and diligence in chartering new
 
         14       schools and in monitoring these new schools.
 
         15            Because they are elected officials, they
 
         16       should be able to do whatever they think is
 
         17       right, regardless of what the guidelines or the
 
         18       law says, and regardless of their policies.
 
         19            Or should they?  Should they have to follow
 
         20       the guidelines of the charter law?  Should they
 
         21       have to follow their own adopted policies.  Or
 
         22       should they be allowed to arbitrarily
 
         23       discriminate and deny a charter without good
 
         24       cause.
 
         25            I think that's the question, the principal
 
 
 
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          1       question of this appeal.
 
          2            Members of our Board and myself have been
 
          3       outspoken advocates of public school reform.
 
          4       This does not endear us sometimes to local
 
          5       administrators.  I'm one of those people that
 
          6       believes we have plenty of money to operate our
 
          7       schools effectively.  What we lack is the local
 
          8       political courage and leadership to change the
 
          9       system.
 
         10            The School Board, I think, has admitted in
 
         11       their response that they denied us due process
 
         12       by withholding the addendum so that we could not
 
         13       respond to the recommendations of the
 
         14       superintendent.
 
         15            And they've also admitted that we were not
 
         16       given timely notice of the public hearing for
 
         17       consideration of the school.
 
         18            In the response to our appeal, the
 
         19       School Board attorney has stated that I'm the
 
         20       primary person involved in our efforts to start
 
         21       a charter school.  That's true.  I am the
 
         22       President of Florida Charter School; and I work
 
         23       full-time, I should point out, without
 
         24       compensation.
 
         25            I left my job for six months, and I've been
 
 
 
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          1       at the School Board almost every day, during
 
          2       that period of time, as I think the School Board
 
          3       attendant will attest to.
 
          4            I have invested over $30,000 of my own
 
          5       money to get a charter school started.
 
          6            The School Board attorney stated in his
 
          7       response they believe I am charter schools.  It
 
          8       should be noted that we have seven members on
 
          9       our Board of Directors, an outstanding group of
 
         10       directors:  A local attorney, an expert on
 
         11       multicultural education, Dr. English; Ted Doss;
 
         12       Jessica Poisson, an administrator; Al Anderson,
 
         13       a certified public accountant; Dr. John Allen,
 
         14       who has a doctorate in educational psychology.
 
         15       He's the owner of the Allen Group, an
 
         16       outstanding business person.
 
         17            Myself, I'm a licensed and Board certified
 
         18       mental health counselor.  I specialize in
 
         19       working with adolescents.  I'm also qualified in
 
         20       court as an expert witness on adolescents.
 
         21            I have five children myself, two are
 
         22       currently in the District.  And of our seven
 
         23       Board members, six of them have children
 
         24       currently in the District.  And then, of course,
 
         25       Dr. J. Stanley Marshall, who you heard before.
 
 
 
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          1            Five of our Board members have appeared
 
          2       before the Seminole County School Board to make
 
          3       presentations.
 
          4            The School Board stated in their response
 
          5       to our appeal that they have a lack of
 
          6       confidence in me, and that they don't think our
 
          7       Board is credible or capable.  I take umbrage at
 
          8       that comment and those remarks.
 
          9            In accordance with their charter school
 
         10       policy, we provided complete resumes on each
 
         11       director, including three personal and business
 
         12       references.
 
         13            In addition, they were given fingerprint
 
         14       cards on the day that we submitted our
 
         15       application on each of our officers, including
 
         16       myself.
 
         17            They also received, prior to submitting the
 
         18       application, a detailed six-page personal and
 
         19       business background on me, and were authorized
 
         20       to do background checks.
 
         21            The School Board did not call our
 
         22       references prior to denying the application,
 
         23       they did not mail questionnaires to the
 
         24       references, they did not do background checks,
 
         25       they did not run the criminal background checks
 
 
 
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          1       on the fingerprint cards, any of this prior to
 
          2       our denial.
 
          3            They did not verify employment.  And it
 
          4       appears they made a decision based upon the
 
          5       minds of the staff, and did not do any due
 
          6       diligence to determine whether or not we were
 
          7       credible or capable.
 
          8            What did they base their decision on and
 
          9       their response in the writings?  The
 
         10       School Board attorney said their position is
 
         11       buttressed by a negative newspaper article about
 
         12       me.
 
         13            I don't have to tell you, the highest
 
         14       elected officials in our state, that your
 
         15       newspaper standing depends on what day you read
 
         16       the newspaper and which newspaper you read.
 
         17            And if they would like, I'd be happy to
 
         18       provide them numerous articles and newspaper
 
         19       clippings and TV appearances from my previous
 
         20       business experience that attest to my
 
         21       capability.
 
         22            If they checked my background, they would
 
         23       have found that I served my country and the
 
         24       State of Florida in the U.S. Army and the
 
         25       Florida Army National Guard.
 
 
 
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          1            They would have found that after I
 
          2       graduated from college in 1969, I volunteered
 
          3       for the Army during the height of the Vietnam
 
          4       war, and that I graduated first in my class in
 
          5       advanced individual training.
 
          6            They would have found that I've been living
 
          7       continuously in the state of Florida over the
 
          8       last 26 years; that in the state of Florida, I
 
          9       have been licensed as a life insurance agent, a
 
         10       real estate and mortgage broker; and for the
 
         11       past five years, I've been licensed as a mental
 
         12       health counselor.
 
         13            They would have also found that I've never
 
         14       had a complaint filed against me, or had any
 
         15       lawsuits filed against me for mismanagement, or
 
         16       for any other reason.
 
         17            In his response, a School Board attorney
 
         18       stated they didn't like the fact that we were
 
         19       organized like a business.  He's correct, we are
 
         20       organized like a business.  We think that's one
 
         21       of our strengths.
 
         22            The local School Board is organized a
 
         23       little differently.  They have a paid
 
         24       School Board.  Their budget this year is
 
         25       $900,000 for the five School Board members for
 
 
 
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          1       School Board expenses.
 
          2            They then have a superintendent; they then
 
          3       have 18 department heads; they then have
 
          4       principals, assistant principals, deans, and
 
          5       administrators.
 
          6            We've tried to simplify that process.  We
 
          7       have a president, a principal, and then we go
 
          8       directly to a dean and administration.
 
          9            In fact, we advocate this model for the
 
         10       local school boards.  We think they're a little
 
         11       top heavy.  We've set a self-imposed limit on
 
         12       the amount of money that can be spent on central
 
         13       administrative costs.
 
         14            I pointed out to the School Board, if they
 
         15       were similarly organized, they would save about
 
         16       80 percent of their central administrative
 
         17       costs, or about $10 million a year.
 
         18            That would be enough money to reduce our
 
         19       class size in every class in the district by
 
         20       about five to six students.
 
         21            I pointed out that this was done in
 
         22       Cincinnati, where they reduced their central
 
         23       administrative costs by 70 percent, and they
 
         24       also found that their school based
 
         25       administrators were paid 38 percent more than
 
 
 
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          1       comparable business positions, and they
 
          2       dramatically cut those salaries to put more
 
          3       money back in the classroom.
 
          4            In his response, the School Board attorney
 
          5       has stated the School Board must be very careful
 
          6       about letting just anybody have a charter school
 
          7       because what if they fail, the money would be
 
          8       gone and the children would have to return to
 
          9       the school system.
 
         10            I suggest that our school system is failing
 
         11       our children right now.  And they have nowhere
 
         12       to go.
 
         13            At least 40 percent of the students that
 
         14       start the ninth grade in the District, by their
 
         15       own numbers, do not finish high school.
 
         16            Florida's goal for the year 2000 is that
 
         17       90 percent of the students finish high school.
 
         18       It's kind of like the old farmer giving
 
         19       directions to the tourist who responds -- the
 
         20       farmer says, you can't get there from here.
 
         21            That's where we are.  Unless we make some
 
         22       dramatic changes in our school deliverance
 
         23       system, we will never get there.
 
         24            Sandy Robinson, Mrs. Robinson, one of our
 
         25       Board members, which we are very fortunate to
 
 
 
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          1       have, she's the Chairman of the School Board,
 
          2       and an outstanding Board member, she's takes her
 
          3       job very seriously and works very hard at it, is
 
          4       here today.  I -- she might have the opportunity
 
          5       to speak.
 
          6            The School Board recommended to us that we
 
          7       start small, that we find a niche, that we fill
 
          8       a need.  We had filed a previous application,
 
          9       which we withdrew, which was for an entire
 
         10       school.  She suggested that we consider the
 
         11       night high school portion of our application,
 
         12       which we did.
 
         13            The School Board attorney stated in their
 
         14       response that they're worried about our
 
         15       mismanagement.  And Sandy Robinson stated that
 
         16       she feels like she may not be able to trust me.
 
         17            I understand that, I accept that, and I
 
         18       don't take that personally.  I believe that a
 
         19       healthy amount of skepticism and distrust was
 
         20       intended.  And that's precisely why the school
 
         21       boards were set up to receive a 5 percent fee to
 
         22       monitor the success of a school.
 
         23            I suggest that the School Board attorney
 
         24       read the law.  He'll notice that in
 
         25       Section 110(d), the School Board is allowed to
 
 
 
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          1       terminate a charter immediately for misuse of
 
          2       funds; or if the sponsor determines a good cause
 
          3       has been shown; or if the health, safety, or
 
          4       welfare of the students is threatened.
 
          5            We've offered to give the School Board
 
          6       monthly financial statements, even though it's
 
          7       not required.  We're giving them an independent
 
          8       audit -- independent audit performed by the
 
          9       national accounting firm of Coopers & Lybrand.
 
         10       We've also stated that all checks would have two
 
         11       signatures, and we've offered to give them a
 
         12       half million dollar fidelity bond.
 
         13            The School Board has admitted in the
 
         14       response that our proposal has merit, that it
 
         15       meets all the requirements of the law, and would
 
         16       be in the best interest of pupils and the
 
         17       community.
 
         18            In his response, the School Board's
 
         19       attorney states that it's not so much whether
 
         20       the application complies with the law or has
 
         21       merit, or will help students.  What's more
 
         22       important, he states, is the sense of the body
 
         23       to which the application is submitted.
 
         24            I submit that that's an arbitrary criteria
 
         25       not set forth either in their policies, or in
 
 
 
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          1       the legislation.
 
          2            Why didn't the School Board do the
 
          3       background checks?  Why are they arbitrarily
 
          4       relying on a sense of the body without
 
          5       information?
 
          6            They've asked about why we don't have funds
 
          7       set forth.  We've specifically requested
 
          8       approval under the law which states that we can
 
          9       become approved prior to being -- to having
 
         10       funds set forth.
 
         11            In fact, we are registered with the
 
         12       Department of Agriculture and Consumer Services
 
         13       to receive funds, and we've sent back two
 
         14       contributions.  We have funded -- the
 
         15       School Board -- or the -- our Board members, all
 
         16       of the expenses ourselves to this point until we
 
         17       receive approval.
 
         18            Our imposing -- our school focuses on two
 
         19       major issues:  One is the dropout problem.  A
 
         20       second major issue is the tremendous cost to
 
         21       build schools.  These are two of the major
 
         22       problems facing the state of Florida.
 
         23            Right now, there's a reverse incentive in
 
         24       school to keep kids in the District.  If more
 
         25       kids stay in school, they have to build more
 
 
 
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          1       schools, and they don't have the money to build
 
          2       more schools.
 
          3            We're using the same school at night, we're
 
          4       making a better use of existing resources, we're
 
          5       actually reducing crowding during the day, and
 
          6       we're saving the school approximately --
 
          7       School District about 7 million dollars in new
 
          8       construction.
 
          9            If our model works, and we can make double
 
         10       use of a facility, and it's used throughout the
 
         11       state, we could save literally hundreds of
 
         12       millions of dollars.
 
         13            Finally, I'll close.  I don't think this is
 
         14       a question of politics or local control.  This
 
         15       is a question of having the courage to do what
 
         16       is right for the children of Florida.
 
         17            We ask that you uphold our appeal.  And
 
         18       keep in mind, too, that you are not overturning
 
         19       the School Board.  All you do in upholding our
 
         20       appeal is remand the application back to the
 
         21       School Board, suggesting that they approve the
 
         22       application, and giving them the opportunity to
 
         23       show good cause for turning it down.
 
         24            If they turn it down again with good cause,
 
         25       then we have the right for judicial appeal.
 
 
 
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          1            Thank you very much.
 
          2            COMMISSIONER BROGAN:  Thank you,
 
          3       Mr. McCammon.
 
          4            Any questions from the members of
 
          5       the Board?
 
          6            If not, we'll move to representatives of
 
          7       the Seminole County school system.
 
          8            MS. McCORD:  Commissioner, Mr. McCammon has
 
          9       asked to reserve -- he has 3 or 4 minutes left,
 
         10       he wants to make a few closing --
 
         11            COMMISSIONER BROGAN:  So noted.
 
         12            MR. JULIAN:  If I may, Mr. Chairman,
 
         13       members of the State Board of Education, my name
 
         14       is Ned Julian.  I represent the School Board of
 
         15       Seminole County, Florida.
 
         16            For the record, I would like to pose an
 
         17       objection to the comments by Mr. Marshall.
 
         18       I believe that they are outside the scope of the
 
         19       appeal, and do not address the reason that we're
 
         20       here.
 
         21            The School Board of Seminole County,
 
         22       Florida, does not consider this to be a
 
         23       political decision.  When the School Board
 
         24       approves a charter school, it, in effect,
 
         25       appropriates public tax dollars.  And,
 
 
 
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          1       therefore, the Legislature, in placing the
 
          2       decision to approve or disapprove a charter
 
          3       school application, has placed a significant
 
          4       burden on a School Board.
 
          5            In this case, the approval of the charter
 
          6       would amount to the first year of an
 
          7       appropriation of something more than 1 million
 
          8       dollars.
 
          9            When this matter was considered, the
 
         10       School Board not only dealt with the form of the
 
         11       application and the words placed on the paper,
 
         12       but the person or persons that came before it.
 
         13            As you know, in every decision, there's an
 
         14       aspect of the words on a piece of paper, and
 
         15       there -- there's an aspect of the credibility of
 
         16       the people that place the words on that paper.
 
         17            (Commissioner Crawford exited the room.)
 
         18            MR. JULIAN:  And I would suggest to you
 
         19       that historically, decisions of credibility have
 
         20       always been assigned to the finder of fact.
 
         21            In this case, the finder of fact is the
 
         22       School Board of Seminole County, Florida.  And I
 
         23       would respectfully request that you respect and,
 
         24       in fact, defer to the decision of the
 
         25       School Board of Seminole County, Florida, in
 
 
 
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          1       this matter.
 
          2            As has been told to you, Mr. McCammon has
 
          3       been in the School Board office almost daily
 
          4       since July of 1996.  And this is not the first
 
          5       of Mr. McCammon's application.
 
          6            (Attorney General Butterworth entered
 
          7       room.)
 
          8            MR. JULIAN:  Mr. McCammon previously had an
 
          9       application for a full high school, which was
 
         10       withdrawn.  Therefore, not only did the
 
         11       School Board have an opportunity to get to know
 
         12       Mr. McCammon during the time that he appeared
 
         13       before it at informal meetings, the School Board
 
         14       and the staff had ample opportunity to interact
 
         15       with Mr. McCammon during the whole process.
 
         16            And it's that opportunity to get to know
 
         17       Mr. McCammon that gave rise to the
 
         18       School Board's concern about the ability of
 
         19       management.  And the statute that we deal with,
 
         20       Florida Statute 228.056 I believe it is,
 
         21       subparagraph (9)(a)(9) addresses -- requires the
 
         22       School Board to address the issue of the
 
         23       management and financial expertise of the
 
         24       applicant.
 
         25            Now, since -- the Board has no quarrel --
 
 
 
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          1       the School Board has no quarrel with the
 
          2       concept.  And I believe that is amply stated in
 
          3       our response to the applicant's appeal.
 
          4            The School Board has no quarrel, and,
 
          5       in fact, has endorsed or adopted the concept of
 
          6       charter schools.  You have in the materials
 
          7       presented to you a copy of the School Board's
 
          8       policy, and the introduction to that policy is a
 
          9       resolution by the School Board of
 
         10       Seminole County, Florida, endorsing charter
 
         11       schools.
 
         12            So I would suggest to you that this is not
 
         13       an aspect of hostility, not an aspect of being
 
         14       arbitrary or capricious, but simply a decision
 
         15       made by a School Board based on the material
 
         16       presented before it that it has serious concerns
 
         17       about the management and fiscal operation of the
 
         18       school.
 
         19            Now, I agree that sometimes newspaper
 
         20       articles are -- maybe come out a little
 
         21       different than people expect when they're
 
         22       interviewed.
 
         23            But in the material, you will have -- you
 
         24       have a copy of the article that appeared in the
 
         25       Orlando Sentinel.  And the closing quote -- and
 
 
 
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          1       this is a direct quote from Mr. McCammon.  And
 
          2       this is the type of information that
 
          3       Mr. McCammon provided that gave the School Board
 
          4       concern.
 
          5            Mr. McCammon stated:  I am a builder, I'm a
 
          6       dreamer.  When it comes to day-to-day
 
          7       management, that's not my thing.
 
          8            Now, Mr. McCammon is, and the record will
 
          9       reflect, the day-to-day management of the
 
         10       school.  Mr. McCammon has indicated that he is
 
         11       the Chief Executive Officer; that once -- should
 
         12       the charter be approved, that he and a
 
         13       bookkeeper, who will be employed in the home
 
         14       office or the headquarters, will be the
 
         15       individuals that ride herd on the day-to-day
 
         16       expenditure of money.  The charter application
 
         17       provided that he was going to be the person who
 
         18       would employ the initial principal and staff at
 
         19       the school.
 
         20            This is what causes the School Board
 
         21       concern.  If -- you have before you the
 
         22       videotapes of both the work session and the
 
         23       Board meeting.  And there's a common thread or
 
         24       theme that runs through all of those, and that
 
         25       is the position stated by Mr. McCammon that he
 
 
 
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          1       is an entrepreneur, and that this is an
 
          2       entrepreneurial adventure from his standpoint,
 
          3       and that the tax dollars that he is asking the
 
          4       School Board of Seminole County to appropriate
 
          5       to him is basically risk venture capital.
 
          6            And the School Board simply submits that
 
          7       the education of children, be it in a public
 
          8       school, be it in a charter school, or some other
 
          9       venue, is a very serious matter, should not be
 
         10       taken lightly, and the expenditure of tax funds
 
         11       should not be taken lightly, that education is
 
         12       not entrepreneurial, and that tax funds are not
 
         13       venture capital.
 
         14            In addressing the specific errors that
 
         15       Mr. McCammon cited in his appeal -- or that
 
         16       Florida Charter School cited in its appeal -- I
 
         17       would suggest to you, one, that the charter
 
         18       school law does not require a public hearing for
 
         19       the approval of the application.
 
         20            Seminole County is a little different.
 
         21       We've decided to do a public hearing, both
 
         22       before the time of the application, and at the
 
         23       time of the charter.  So there is no legal basis
 
         24       to Mr. McCammon's complaint that he was denied
 
         25       due process.
 
 
 
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          1            You have the videotapes of both the work
 
          2       session and the meeting.  Both of those meetings
 
          3       will indicate to you that Mr. McCammon had ample
 
          4       opportunity to appear before the Board, present
 
          5       his position, and to respond to the
 
          6       recommendation of the superintendent.
 
          7            The process was exhaustive.  There was no
 
          8       denial of due process, there was no denial of an
 
          9       opportunity to respond.  Mr. McCammon wants to
 
         10       talk about the notice being short.
 
         11            I would suggest to you that that's fine,
 
         12       except Mr. McCammon was at the meeting.
 
         13       Mr. McCammon addressed the application, and
 
         14       addressed the Superintendent's response, and had
 
         15       ample opportunity all along the way to present
 
         16       his position, and to receive and enter into
 
         17       dialogue to the School Board.
 
         18            The decision of the School Board in the
 
         19       final analysis in rejecting the application was
 
         20       not arbitrary, and was not capricious.  It was
 
         21       simply based on a well-founded belief by the
 
         22       individuals who were assigned the responsibility
 
         23       for making the decision by the School Board,
 
         24       that management was not as capable as we would
 
         25       expect for a project which would like to have
 
 
 
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          1       one million thirty-five thousand dollars in
 
          2       public funds.
 
          3            Now, what I'd like to do is defer to
 
          4       Mrs. Robinson, who is the Chairman of the
 
          5       School Board.  Mrs. Robinson has some comments
 
          6       that she would like to make, then I may have
 
          7       some brief comments following hers.
 
          8            COMMISSIONER BROGAN:  Ms. Robinson?
 
          9            MS. ROBINSON:  When I originally wrote my
 
         10       speech, it said good morning.  It's now good
 
         11       afternoon.
 
         12            COMMISSIONER BROGAN:  Evening is --
 
         13            MS. ROBINSON:  Good evening, Cabinet
 
         14       members, and Madam Chairman.
 
         15            It's a pleasure to have the opportunity to
 
         16       talk to you this afternoon.
 
         17            I have been a member of the Seminole County
 
         18       School Board since 1990, and I have served three
 
         19       consecutive terms as Chairman.
 
         20            I am very proud to say that Seminole County
 
         21       looks upon itself as a leader.  I feel that we
 
         22       are proactive; innovative; cooperative; and
 
         23       willing, very willing to step out and take the
 
         24       lead whenever the opportunity presents itself,
 
         25       the right opportunity.
 
 
 
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          1            We were one of the first counties last
 
          2       summer to raise our graduation standards because
 
          3       we have such high expectations for our
 
          4       students.  We have already instructed our
 
          5       principals to report all disciplinary acts to
 
          6       school resource officers in anticipation of laws
 
          7       that are going to be passed this year.
 
          8            And we have also already added
 
          9       40 additional teachers to reduce class size this
 
         10       year within our existing budgets.  So we are a
 
         11       leader.  We are trying to set the curve, not be
 
         12       ahead of the curve.
 
         13            When the charter school law was passed last
 
         14       session, we immediately contacted Florida
 
         15       School Board Association for on-site training to
 
         16       help us understand the process and give us
 
         17       guidance in drafting our policy.
 
         18            We received other District's policies for
 
         19       review, and met extensively with our Business
 
         20       Advisory Board, which I serve as a liaison to
 
         21       during monthly meetings to review our
 
         22       anticipated policy.
 
         23            The policy that we ultimately adopted
 
         24       mirrors the criteria established by the law for
 
         25       charter schools.  And along with that policy, we
 
 
 
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          1       readily adopted a resolution endorsing the
 
          2       concept of charter schools for Seminole County
 
          3       schools.
 
          4            We have been working long and hard with
 
          5       Florida Charter, Inc.; i.e., Don McCammon.  He
 
          6       presented his first proposal to us in the fall
 
          7       of '96, asking to use a portion of our new
 
          8       high school.
 
          9            That application was withdrawn by
 
         10       Florida Charter, Inc., after much debate; and a
 
         11       second proposal was then submitted to do a night
 
         12       school using a portion of our brand new
 
         13       high school campus.
 
         14            His educational plan is innovative.  I will
 
         15       admit, I gave him the idea for his educational
 
         16       plan.  And it is designed to meet the needs of
 
         17       at-risk students, which we are very concerned
 
         18       about in our county, as other counties are.
 
         19            Our concern for Florida Charter, Inc.,
 
         20       Franklin High School Charter School, falls under
 
         21       the criteria of the Florida Statute
 
         22       2280.056(9)(a) (sic), which is the financial and
 
         23       administrative management of schools.
 
         24            We continually expressed our concern about
 
         25       Florida Charter, Inc., concerning the Board of
 
 
 
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          1       Directors, and each of those members receiving
 
          2       compensation; lack of start-up funds; and,
 
          3       finally, with Mr. McCammon as the CEO.  He has
 
          4       no strong record of business success, and very
 
          5       little credibility in the financial arena.
 
          6            Our Board does not take lightly the task
 
          7       before us of allocating taxpayer dollars, in
 
          8       this case, over a million dollars, to a
 
          9       management team that had such a poor track
 
         10       record.
 
         11            We believe in competition.  We welcome it,
 
         12       understanding that we will all be better for
 
         13       it.  We also understand our responsibilities as
 
         14       elected officials to our community, and most of
 
         15       all to our students.  These are our students,
 
         16       whether they're in the Franklin Charter School,
 
         17       or they're in Lake Brantley High School or
 
         18       Lake Mary High School.
 
         19            The bottom line for me was very simple, and
 
         20       I did a lot of agonizing thought process over
 
         21       this, and I consulted my unpaid advisor, who is
 
         22       my husband.
 
         23            And I said, I'm having a tough time with
 
         24       this because in my final decision making
 
         25       process, I separated out the educational
 
 
 
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          1       portion, and then the management portion.
 
          2            And my final thought was -- and his -- as
 
          3       his advice to me was:  If this was our money, if
 
          4       it was our personal money, would you do business
 
          5       with this company.  And my answer was
 
          6       unequivocally no.
 
          7            So why would I then, as an elected
 
          8       official, take someone else's money, the
 
          9       taxpayer's money, and do business with a company
 
         10       that I had no personal confidence in.
 
         11            I thank you for the opportunity to speak
 
         12       this afternoon.  And I sincerely hope that you
 
         13       will uphold the decision of the local governing
 
         14       body on this charter school.
 
         15            Thank you.
 
         16            COMMISSIONER BROGAN:  Thank you,
 
         17       Ms. Robinson.
 
         18            Mr. Julian, did you have any --
 
         19            MR. JULIAN:  Briefly.
 
         20            COMMISSIONER BROGAN:  -- closing remarks?
 
         21            Yes, sir.
 
         22            MR. JULIAN:  Very briefly.
 
         23            I wrote some words down as I was thinking
 
         24       about my appearance here today.
 
         25            One of the words I wrote was the burden.
 
 
 
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          1       The Legislature has placed the burden for the
 
          2       determination as to whether or not a charter
 
          3       should be granted on local public officials.
 
          4            And that is because the local public
 
          5       officials are the people who know with whom they
 
          6       deal.  The School Board of Seminole County has
 
          7       made a decision, and we would respect -- or it
 
          8       would respect that you defer to its decision.
 
          9            The concept.  The School Board of
 
         10       Seminole County, Florida, has no quibble, no
 
         11       disagreement, no hostility to the concept of
 
         12       charter schools.  Hence the resolution.
 
         13            The policy.  The policy that the
 
         14       School Board of Seminole County, Florida,
 
         15       adopted mirrors the law.  The School Board did
 
         16       not impose a burden upon any applicant that was
 
         17       not established by the law.
 
         18            And on two points I'd like to mention.
 
         19       There was a great debate, and it's probably
 
         20       still going on, and I know it's going on in the
 
         21       Legislature, because I know there's legislation
 
         22       that's been presented to deal with the issue of
 
         23       do you charge a charter school that uses a
 
         24       school facility rent.  And the legislation
 
         25       proposes no.
 
 
 
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          1            Seminole County has come to grips with
 
          2       that, and the School Board did wrestle with
 
          3       that, and the School Board decided no.  If you
 
          4       have a surplus facility that's not being used by
 
          5       the School Board, why would you charge a charter
 
          6       school money for a facility that's already been
 
          7       paid for by the taxpayers?  I mean, a charter
 
          8       school is part of the concept of
 
          9       public education.
 
         10            So the School Board of Seminole County, as
 
         11       Mrs. Robinson said, we're setting the curve, we
 
         12       don't charge, and have no intention.
 
         13            The next issue is a window.  There's a lot
 
         14       of discussion about windows.  And in the
 
         15       legislation that's before the Legislature now,
 
         16       they want to abolish or widen windows, because
 
         17       the thought is that if you have a window that
 
         18       you can only file your applications after the
 
         19       first full moon in January, then that will
 
         20       inhibit -- or discourage people from filing
 
         21       applications.
 
         22            School Board said, good point.  We have no
 
         23       window.  There is no window for filing in the

 
         24       Seminole County School policy.  We'll take them
 
         25       as they come, we'll evaluate the applications on
 
 
 
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          1       their own two feet, and we'll vote them up or
 
          2       we'll vote them down.
 
          3            The decision, as I've said before, is
 
          4       serious.  In this case, the program, we're not
 
          5       debating the program.  As I said in my response,
 
          6       the School Board found that the program has
 
          7       merit.  Our argument, our quarrel is not with
 
          8       the program.
 
          9            Our concern is with a reasonable
 
         10       probability of this management and financial
 
         11       success of the proposal.
 
         12            Now, public bodies sometimes are
 
         13       interesting because they don't see the forest
 
         14       for the trees.  Public bodies have many times
 
         15       been accused of being short-sighted or
 
         16       nearsighted, or blind to reality.
 
         17            The School Board of Seminole County has
 
         18       created an interesting body to give it advice,
 
         19       known as the Business Advisory Board.  And the
 
         20       members consist of John Howell, who is an
 
         21       attorney with Maguire, Voorhees and Wells;
 
         22       George Cosmac, who is the senior management with
 
         23       AT&T; John Tracy, who is senior management with
 
         24       Cincinnati Bell; Stuart Farb, who is an
 
         25       investment counselor; Ronnie Clayton,
 
 
 
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          1       Dr. Ronnie Clayton, who's a professor at the
 
          2       University of Central Florida Business School;
 
          3       Charles Rowe, who is the Director of Community
 
          4       Involvement for the City of Sanford, to help it
 
          5       make decisions.
 
          6            And when decisions like this come to the
 
          7       School Board, it defers or asks the Business
 
          8       Advisory Board for its input.
 
          9            And you will see as you view the tape the
 
         10       input that it would receive.  And the Business
 
         11       Advisory Board had concerns.  Therefore, in view
 
         12       of that, I think it further supports, or
 
         13       substantiates the position that this decision
 
         14       was not made by the School Board in a manner
 
         15       that was arbitrary, in a manner that was
 
         16       capricious, or in a manner that was hostile to
 
         17       charter schools, or even the concept of this
 
         18       charter school.
 
         19            Thank you.
 
         20            COMMISSIONER BROGAN:  Thank you,
 
         21       Mr. Julian.
 
         22            Mr. McCammon, you can use your remaining
 
         23       time at this point, or save it.  Your call.
 
         24            MR. McCAMMON:  I would like to go ahead and
 
         25       rebut, if I could.
 
 
 
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          1            They've questioned really clearly not our
 
          2       application or the merits of our application,
 
          3       but more my qualifications and the
 
          4       qualifications of our Board.  I think we need to
 
          5       address that briefly.
 
          6            Again, if they had looked at the business
 
          7       background, which they did not look at, they
 
          8       would have found that I've created two companies
 
          9       in central Florida over the last 22 years that
 
         10       have contributed millions of dollars to the
 
         11       local economy.
 
         12            One company's been in successful,
 
         13       continuous operation since 1975, the Orlando
 
         14       Racquet Club.  Former Representative Nelson
 
         15       might remember tournaments that we've had
 
         16       there.  The First Lady's Tournament, if you're a
 
         17       tennis player, was won -- the first tournament
 
         18       in the United States won by Martina Navratilova.
 
         19            A second company I started in 1981 with my
 
         20       wife, known as Mom's Best Cookies, we built from
 
         21       home into a multimillion dollar company.  That
 
         22       had a 60 percent growth rate, I was CEO of that
 
         23       company.  It was very successful.
 
         24            I left that company after about six years
 
         25       in 1988 when my wife and I divorced.
 
 
 
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          1            We also contributed, interestingly, in that
 
          2       company, a great deal to local charities,
 
          3       including the Kairos Ministry in Florida
 
          4       prisons.  And that ministry's been credited with
 
          5       greatly reducing violence in Florida prisons.
 
          6            Those two companies continue to exist.  As
 
          7       I say, they've contributed hundreds of jobs to
 
          8       central Florida over many years, and I'm very
 
          9       proud of my role in those companies.
 
         10            I'm concerned again that they're making
 
         11       arbitrary decisions about credibility or trust
 
         12       without having done due diligence.  I have
 
         13       privileges with the University Behavior Center,
 
         14       which is a private psychiatric hospital, which
 
         15       is required to go by JCAH standards.
 
         16            I have privileges with the Devereux Florida
 
         17       Treatment Network, I've worked extensively with
 
         18       children.  They had to do quite extensive
 
         19       background checks with my credentials and
 
         20       credibility before I get those privileges.  The
 
         21       School Board did not do those background checks.
 
         22            So once again, I respect the fact that they
 
         23       can do that.  However, they weren't done.
 
         24            We have some outstanding other people on
 
         25       our Board, Dr. John Allen, who's a very
 
 
 
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          1       successful business person.  So it bothers me to
 
          2       hear -- to say about management.
 
          3            Again, we offered to give them an audited
 
          4       financial statement, which is not required by
 
          5       the law, by the firm of Coopers & Lybrand.  Five
 
          6       hundred dollar -- five hundred thousand dollar
 
          7       fidelity bonds on every person that signs
 
          8       checks.  So we've gone over and above to try and
 
          9       reassure them that they're going to have the
 
         10       ability to check on our management, and will
 
         11       also give monthly financial statements.  Our
 
         12       books are open 24 hours a day.
 
         13            He stated that I'm an entrepreneur.  That's
 
         14       probably true.  I am an entrepreneur.  I
 
         15       consider this an educational entrepreneur
 
         16       opportunity in the state of Florida, not to make
 
         17       a profit.  In fact, I'm going to make less
 
         18       money.  I will be a full-time employee of the
 
         19       school.  My first year salary -- not of the
 
         20       school -- excuse me -- of the corporation.
 
         21            He mentioned that I said I'm a dreamer and
 
         22       a builder.  True.  That's part of -- I'm behind
 
         23       this effort.  I've also put a great deal of
 
         24       detail in it, and I've completed all the
 
         25       doctorate courses toward a curriculum and
 
 
 
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          1       instruction degree, and have a Master's in
 
          2       education.
 
          3            I've also worked as a teacher, and worked
 
          4       extensively in their schools doing volunteer
 
          5       counseling groups for their at-risk students.
 
          6            That pretty much wraps it up.  I should
 
          7       also say that if they are that concerned about
 
          8       who manages the school, I'm curious why they
 
          9       didn't do management checks on two other
 
         10       applications in their county, why they didn't
 
         11       receive resumes on one of those applications,
 
         12       why they didn't even have a listing of the
 
         13       officers of one of those applications, yet went
 
         14       ahead and approved them.
 
         15            Also, none of the directors in one of the
 
         16       applications had any experience in working with
 
         17       at-risk kids, which was the subject.  So if
 
         18       they're that concerned about the -- their
 
         19       children, and that concerned about management,
 
         20       again, we have a double standard and they have
 
         21       not given us an opportunity to really look at
 
         22       our capability.
 
         23            COMMISSIONER BROGAN:  Thank you,
 
         24       Mr. McCammon.
 
         25            At this point, we'll open it up for
 
 
 
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          1       questions from members of the State Board.
 
          2            I see leaning.
 
          3            Are there questions associated with that
 
          4       posture?
 
          5            General Milligan.
 
          6            COMPTROLLER MILLIGAN:  Well, I -- you know,
 
          7       it -- I don't have any questions really.  But
 
          8       obviously this is a -- is a serious item that
 
          9       we're considering.  And we are to look at the
 
         10       written and oral arguments.  And I have tried to
 
         11       do that to the best of my ability.
 
         12            And have reached the -- the conclusion that
 
         13       I believe we as a -- as a body should reject the
 
         14       appeal.

 
         15            And so I will make a motion to that effect,
 
         16       that we reject the appeal.
 
         17            SECRETARY MORTHAM:  Second.
 
         18            COMMISSIONER BROGAN:  I have a motion and a
 
         19       second.
 
         20            Further discussion?
 
         21            Secretary?
 
         22            SECRETARY MORTHAM:  I think I have a
 
         23       question of you.
 
         24            COMMISSIONER BROGAN:  Are you allowed to do
 
         25       that?
 
 
 
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          1            TREASURER NELSON:  Why not?
 
          2            SECRETARY MORTHAM:  The statute as passed
 
          3       by the Legislature and signed by the Governor,
 
          4       is there anything in that statute that precludes
 
          5       entrepreneurial ventures in the area of charter
 
          6       schools?
 
          7            COMMISSIONER BROGAN:  Secretary, I would
 
          8       have to answer that no.  As a matter of fact, I
 
          9       would suggest that, depending on how you define
 
         10       the word entrepreneurialism, we probably engage
 
         11       in that to a great degree in public education.
 
         12       It's not the corporate term entrepreneurialism
 
         13       that we know.
 
         14            But if you look at some of the creative
 
         15       entities such as charter schools or magnet
 
         16       schools, theme schools, and a variety of other
 
         17       programs, I suppose loosely defined, they could
 
         18       be considered entrepreneurial in nature.  And no
 
         19       doubt, again, using corporate terminology, do
 
         20       use some degree of venture capital to establish
 
         21       them and operate them.
 
         22            SECRETARY MORTHAM:  Okay.  And maybe to
 
         23       your attorney, who is starting towards the --
 
         24            MR. OLENICK:  Getting to be a habit.
 
         25            SECRETARY MORTHAM:  -- the mike.
 
 
 
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          1            Mike --
 
          2            MR. OLENICK:  May I just answer that, if
 
          3       it's appropriate?
 
          4            SECRETARY MORTHAM:  Yes.
 
          5            MR. OLENICK:  The statute says that a
 
          6       charter school shall organize a not for profit.
 
          7       I just wanted to make that distinction.  There's
 
          8       nothing in there prohibiting an entrepreneur.
 
          9       But the entity needs to be a nonprofit
 
         10       corporation.
 
         11            I'm sorry.
 
         12            SECRETARY MORTHAM:  That's very good.  That
 
         13       answers that question.
 
         14            And my other question would be:  Are there
 
         15       any other charter schools in Seminole County?
 
         16            COMMISSIONER BROGAN:  The answer to that --
 
         17       we'll leave to Mr. Julian.  But I believe the
 
         18       answer is that --
 
         19            MR. JULIAN:  The answer is yes.
 
         20            COMMISSIONER BROGAN:  -- been approved.
 
         21            MR. JULIAN:  Two.
 
         22            SECRETARY MORTHAM:  Thank you.
 
         23            COMMISSIONER BROGAN:  All right.  We have a
 
         24       motion and a second on the floor.
 
         25            Any further questions or discussions?
 
 
 
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          1            Hearing none, without objection, the motion
 
          2       passes.
 
          3            So we will write this all up and send it
 
          4       back to the Seminole County School System,
 
          5       remembering again, that ours is not final, only
 
          6       in that we are recommending one way or the other
 
          7       back to the school system, recommending that
 
          8       they reconsider, or recommending that, in this
 
          9       case, we support the denial.
 
         10            So that will be the case.
 
         11            Commissioner.
 
         12            TREASURER NELSON:  Since we're venturing
 
         13       into new territory here under a new statute that
 
         14       has set up this appellate procedure, my
 
         15       attention has been called to what was read to us
 
         16       sitting as the Board of Education about the
 
         17       appellate procedure, that the record of this
 
         18       proceeding -- proceeding is limited to written
 
         19       arguments, the charter application, and the
 
         20       transcript of the meetings before the District
 
         21       School Board.  And then that the oral argument
 
         22       is to be given, alotted 30 minutes each side.
 
         23            Now, as I understand, our Cabinet aides had
 
         24       a considerable discussion with attorneys for
 
         25       your Department, as well as the -- one of the
 
 
 
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          1       Assistant Attorney Generals over the question of
 
          2       whether we sit as an appellate board, and,
 
          3       therefore, in a quasi-judicial posture should
 
          4       not have ex parte communications coming to us.
 
          5            And the advice was to our Cabinet aides
 
          6       that we should not have those ex parte
 
          7       communications.
 
          8            Well, you know, this next issue that's
 
          9       coming before us is in the District that I used
 
         10       to represent in Congress, and, of course, all
 
         11       these people are very accustomed to having
 
         12       access to me.
 
         13            And yet what we've been advised is that
 
         14       sitting as an appellate process, that we cannot
 
         15       have these ex parte communications.
 
         16            So I would ask that -- that we get some
 
         17       ultimate conclusion on this matter, since we're
 
         18       going to be handling a lot of these charter
 
         19       school appeals in the future.
 
         20            I have governed myself accordingly to the
 
         21       advice given to our Cabinet aides, which was
 
         22       that we should not have ex parte communications.
 
         23            And so I would hope we'll have a
 
         24       clarification on that in the future.
 
         25            COMMISSIONER BROGAN:  We can do that,
 
 
 
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          1       Commissioner.  I know, I, too, have used that
 
          2       same rule of thumb as far as ex parte
 
          3       communication in light of the quasi-judicial
 
          4       process in which I really believe we're
 
          5       engaged.
 
          6            And I believe probably most, if not all, of
 
          7       the Cabinet members have done that.  We have
 
          8       approached this very similarly to how we
 
          9       approach other Cabinet issues that require us to
 
         10       sit in some formal fashion and vote and don't
 
         11       have ex parte communication.
 
         12            We will move into the next appeal process.
 
         13            Now, I'd like to remind both sides that
 
         14       while 30 minutes are allotted, there are no
 
         15       extra points given for use of said 30 minutes.
 
         16            That having been said, we acknowledge your
 
         17       right to use them based on the process that
 
         18       we've developed.
 
         19            (Comptroller Milligan exited the room.)
 
         20            COMMISSIONER BROGAN:  This particular
 
         21       denial is from the Brevard County School Board.
 
         22       Cocoa Academy for Aerospace Technology.
 
         23            And we will hear from the Aerospace
 
         24       Technology Academy representatives.
 
         25            Mr. Boyd?
 
 
 
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          1            MR. BOYD:  Thank you.
 
          2            Commissioner, Cabinet members.  My name is
 
          3       Bob Boyd, and I represent Cocoa Academy for
 
          4       Aerospace Technology.  It is a mouthful.  I'll
 
          5       just either call it the Academy, or they also
 
          6       call it CAAT in that district.
 
          7            Also I would like to -- I'm going to speak
 
          8       about 10 minutes.  Dr. Alexandra Penn, who is
 
          9       the Director of this Academy, is going to speak
 
         10       about 10 minutes.  And if so, we would like to
 
         11       reserve some rebuttal time if we need it.
 
         12            She also has some students from the Academy
 
         13       here today that she would just have stand up and
 
         14       introduce when she speaks.  She is going to
 
         15       speak about our brief on appeal and to the
 
         16       record and why we think that this Academy is a
 
         17       school within a school.
 
         18            In contrast to the first appeal, this is a
 
         19       conversion of a school within a school, and
 
         20       I believe -- I know this is the first appeal
 
         21       ever of a conversion.  But I believe this is the
 
         22       first conversion in Florida.
 

         23            And -- and also speaking to what the
 
         24       Commiss-- Commissioner Nelson said, I'm limited
 
         25       to talk about the specific areas of the
 
 
 
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          1       School Board, and I'm going to do so.
 
          2            And specifically, we think there's a number
 
          3       of errors committed by the Brevard County School
 
          4       Board in this case.
 
          5            Number one, we believe they committed
 
          6       error, and had no legal basis to deny this
 
          7       conversion to a charter school status because of
 
          8       this Academy's unique classification, if you
 
          9       will, as a school within a school.  It's status
 
         10       as a school within a school.
 
         11            The Superintendent issued a recommendation
 
         12       before the School Board meeting that the faculty
 
         13       vote against this conversion because -- or
 
         14       this -- that the School Board vote against this
 
         15       conversion, because the faculty voted against
 
         16       the proposed conversion by an 81 percent
 
         17       majority.
 
         18            As you'll remember, under the law, there
 
         19       needs to be a 50 percent vote by the teachers,
 
         20       and a 50 percent vote by the parents of the
 
         21       high school that's converting.
 
         22            And he basically said in his
 
         23       recommendation, and I'm paraphrasing, that since
 
         24       there was an 80 percent -- 81 percent majority
 
         25       of faculty that voted against it, that it could
 
 
 
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          1       not convert, and there was no legal basis for
 
          2       conversion.
 
          3            Also, he said in his recommendation that a
 
          4       school cannot convert if that school does not
 
          5       exist.  And his conclusion was that CAAT -- this
 
          6       Academy was not a school.
 
          7            In his -- in the transcript, you'll see,
 
          8       and in the Superintendent's comments at the
 
          9       School Board meeting, he basically said, the
 
         10       application is not the issue here.  The
 
         11       application is fine.
 
         12            What is at issue here is the legal issue of
 
         13       whether this Academy can convert to a charter
 
         14       school status, and that's under
 
         15       Section 228.056(3) where we talk about
 
         16       conversion.  So, therefore, there's a couple of
 
         17       legal issues.
 
         18            The first is, what is this Academy.  And
 
         19       again, Dr. Penn's going to speak to that.  But
 
         20       this --
 
         21            (Comptroller Milligan entered the room.)
 
         22            MR. BOYD:  -- Academy was funded under a
 
         23       section of the Statute, 233.068(2)(a) as a
 
         24       separate academy.  And what they're called is
 
         25       Academies for Career Development and Applied
 
 
 
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          1       Technology.
 
          2            I believe there's 30 of them in Florida
 
          3       right now.  They were funded separately under a
 
          4       separate budget request.  They have to meet
 
          5       specific rigorous criteria under the statute.
 
          6            For example, they have to provide free
 
          7       transportation to their students.  They have to
 
          8       offer programs that allow their students to get
 
          9       a high school diploma.  So this is a specific
 
         10       academy that they talk about in the statutes.
 
         11            When my client, this Academy, put the
 
         12       question to its teachers, and its parents
 
         13       whether it should convert to charter school
 
         14       status, the vote was 100 percent by the teachers
 
         15       at the Academy, and a 96 percent vote by the
 
         16       parents of the kids at the Academy that they
 
         17       wanted to convert.
 
         18            We would argue that that is the vote that
 
         19       counts, not the vote of the entire school.
 
         20       Cocoa High School --
 
         21            TREASURER NELSON:  What was the vote of the
 
         22       entire school?
 
         23            MR. BOYD:  The vote of the entire school
 
         24       was 81 percent of the faculty voted no.  But
 
         25       over 80 percent of the parents voted yes.
 
 
 
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          1            TREASURER NELSON:  Of the entire
 
          2       Cocoa High School.
 
          3            MR. BOYD:  The entire school, yes, sir.
 
          4            We would argue legally that what counts is
 
          5       the vote of the parents and the teachers of the
 
          6       Academy.
 
          7            And, again, Cocoa High School is not the
 
          8       body that's trying to convert.  It's just this
 
          9       Academy, which is a school within a school.  It
 
         10       has a separate campus, basically a separate
 
         11       building that's attached to this high school.
 
         12            The other members of the School Board in a
 
         13       3 to 2 vote -- and that was the vote at the
 
         14       School Board hearing against us -- expressed
 
         15       their concerns -- other School Board members --
 
         16       that they thought they didn't have the legal
 
         17       authority to allow this conversion.
 
         18            I would argue that because of how CAAT is
 
         19       funded, and the criteria that it has to meet,
 
         20       that it is a school within a school.  And it was
 
         21       formed as one of these open entry programs, and,
 
         22       therefore, should be able to convert to charter
 
         23       school status.
 
         24            In my exhibits to my brief, Exhibit A, I go
 
         25       through a number of documents that try to prove
 
 
 
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          1       this point.  First of all, the Department of
 
          2       Education specifically defines these academies
 
          3       as schools within a school.  In their --
 
          4       their -- their -- there's an RFP in there, and
 
          5       there's other documents where they specifically
 
          6       define Academies for Career Development and
 
          7       Applied Technology as schools within a school.
 
          8            Now, there's a point that comes up that the
 
          9       statute doesn't use the word academy.  It uses
 
         10       the word program, open entry program.  But if
 
         11       you'll see in Exhibit A, the words programs and
 
         12       academies are used interchangeably by the
 
         13       Department of Education.
 
         14            Moreover, in a news release from
 
         15       Commissioner Castor where the first 15 of these
 
         16       academies that were opened in Florida were
 
         17       announced, they used the word school within a
 
         18       school, and mentioned this Cocoa Academy for
 
         19       Aerospace Technology.
 
         20            Finally, to make the point, in the RFP,
 
         21       2.1 of the RFP, the Department of Education
 
         22       defined these academies and institutes as
 
         23       schools within a school.
 
         24            So, again, we would argue that what counts
 
         25       here is the vote of the faculty -- not the
 
 
 
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          1       faculty -- the teachers and the parents of the
 
          2       students going to the Academy.  And that's
 
          3       what -- that's what should count when we talk
 
          4       about conversion.
 
          5            So, therefore, given this unique status, we
 
          6       would -- we would argue that this school be
 
          7       allowed to convert.  This is not a special
 
          8       program or a -- we were compared at the
 
          9       School Board hearing to a first grade class.
 
         10            The superintendent made the comment that if
 
         11       you allow this Academy to convert, what's
 
         12       stopping a first grade class from converting, or
 
         13       a special vocational program from converting.
 
         14            The answer is simple.  We have to meet
 
         15       these nine rigorous criteria under the statute.
 
         16       And if you don't meet those criteria, you can't
 
         17       be called an academy.  And -- or a school within
 
         18       a school.
 
         19            The second legal point is simply that we
 
         20       get to the issue of legislative intent.  Did the
 
         21       Legislature intend to allow this to happen.
 
         22            I would argue that the Legislature, when
 
         23       they tend to draft broader laws, did not foresee
 
         24       this happening, of a school within a school
 
         25       converting.
 
 
 
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          1            And what I would argue then is I would
 
          2       point you to the Exhibit B of the transcript,
 
          3       which is a DOE, Department of Education,
 
          4       proposed rule, a Board -- State Board of
 
          5       Education rule that allows this to happen.
 
          6            It's well established under Florida law.
 
          7       It's called the Doctrine of Contemporaneous
 
          8       Construction, that the body that administers the
 
          9       law or the statute, in this case, the Department
 
         10       of Education, that body construes this statute,
 
         11       if it's ambiguous, and that construction is
 
         12       persuasive as to what the statute means.
 
         13            So I would argue that that proposed rule is
 
         14       persuasive in construing what the statute means
 
         15       if it's ambiguous.
 
         16            Now, you may say, well, this is only a
 
         17       proposed rule.  But I would argue that agencies
 
         18       make policy, incipient policy, they establish
 
         19       guidelines without even adopting rules.
 
         20            So I would argue that if the Department of
 
         21       Education feels in their proposed rule, which I
 
         22       received through a public records request, that
 
         23       this should -- this should be allowed to happen,
 
         24       that that is persuasive argument as to what the
 
         25       statute really means.
 
 
 
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          1            Finally -- the final legal point would be a
 
          2       point about equity and common sense and public
 
          3       policy.  We believe that it's good common sense
 
          4       to allow this school within a school to
 
          5       convert.  If it doesn't have the opportunity to
 
          6       convert, it will cease to exist.
 
          7            These academies were funded for a period of
 
          8       three to four years, and this program, as
 
          9       Dr. Penn will talk about, cannot easily be
 
         10       integrated into Cocoa High School.
 
         11            Therefore, the community and the County
 
         12       will lose this school.  And we believe that it's
 
         13       only good common sense and fair to allow this to
 
         14       happen, given the fact that it's got to meet
 
         15       these nine criteria that include -- and one of
 
         16       those -- one of these criteria -- I have not met
 
         17       one of these criterion, is it's got to assess
 
         18       the progress of students regularly to assure
 
         19       their academic skills favorably with similar
 
         20       students, and use standardized tests, unexcused
 
         21       absences, dropouts, and grade point averages.
 
         22            So you'll see that this is not a simple
 
         23       vocational or alternative program.  It's a
 
         24       school within a school.
 
         25            Now, I've used a lot of -- I've thrown
 
 
 
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          1       around the word school within a school
 
          2       throughout my talk here, but -- and a school
 
          3       within a school could mean many things.
 
          4            But one thing it really does mean is a
 
          5       school.  It is a school.  And to exclude it from
 
          6       conversion would be a travesty in this case.
 
          7            Finally, there is an amendment to the
 
          8       School Board's brief in response to my brief,
 
          9       and it's an opinion from the Department of
 
         10       Education, an attorney, about whether there is
 
         11       legal authority to do this.
 
         12            And I would argue that that is, first of
 
         13       all, not part of the record, because it wasn't
 
         14       offered at the School Board hearing, so you
 
         15       shouldn't consider it; but, secondly, that it
 
         16       was written prematurely before this issue was
 
         17       discussed with both sides; and, finally, I don't
 
         18       think this person really understood what this
 
         19       academy is; that is, a school within a school,
 
         20       meeting these criteria.
 
         21            Also it was a preliminary review.  And I --
 
         22       I would subject to you that if you look at this
 
         23       law, it would be a travesty to not allow this
 
         24       conversion.
 
         25            And, again, I would like -- ask that
 
 
 
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          1       Dr. Penn, who's the Director of this Academy,
 
          2       come up here and speak, and just point out the
 
          3       students that are here today --
 
          4            COMMISSIONER BROGAN:  Mr. Boyd, before --
 
          5            MR. BOYD:  -- from the Academy.
 
          6            COMMISSIONER BROGAN:  -- you -- before you
 
          7       leave the podium --
 
          8            MR. BOYD:  Yes, sir.
 
          9            COMMISSIONER BROGAN:  -- and I suppose I
 
         10       could ask this of anyone who will follow you on
 
         11       either side of this issue.
 
         12            The entire faculty and staff were polled.
 
         13            MR. BOYD:  Yes, sir.
 
         14            COMMISSIONER BROGAN:  And yet it was
 
         15       determined that this -- in the feeling of the
 
         16       people who are in the school is a school within
 
         17       a school.
 
         18            Where was the determination made, and where
 
         19       during the process, that everyone would be
 
         20       polled and surveyed --
 
         21            MR. BOYD:  Well -- I'm sorry.  Just to
 
         22       answer that, and I'm going to have Dr. Penn
 
         23       answer it also.
 
         24            But, first of all, the statute doesn't say
 
         25       faculty.  It says that you should poll the
 
 
 
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          1       teachers.  But I know at some point the teachers
 
          2       of the entire high school were polled, and they
 
          3       voted no by an 81 percent margin.
 
          4            COMMISSIONER BROGAN:  That's --
 
          5            MR. BOYD:  And then the parents were polled
 
          6       of the entire school, and they voted yes by more
 
          7       than an 80 --
 
          8            COMMISSIONER BROGAN:  Fair enough.  But I'm
 
          9       trying to determine --
 
         10            MR. BOYD:  When.
 
         11            COMMISSIONER BROGAN:  -- and by whom.
 
         12       I mean, how was that triggered, who directed the
 
         13       polling --
 
         14            MR. BOYD:  I will direct that to my
 
         15       client.
 
         16            COMMISSIONER BROGAN:  Very fine.
 
         17            MR. BOYD:  Thank you.
 
         18            COMMISSIONER BROGAN:  Ms. Penn?
 
         19            DR. PENN:  Would you like me to answer that
 
         20       question now, or would you like me to --
 
         21            COMMISSIONER BROGAN:  You may introduce
 
         22       your charges first.  That would be fine.
 
         23            DR. PENN:  Okay.  Thank you.
 
         24            My name is Dr. Alexandra Penn, and I'm the
 
         25       Coordinator of the Academy for Aerospace
 
 
 
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          1       Technology since its inception nearly four years
 
          2       ago.
 
          3            I wanted to address you this -- this
 
          4       morning -- but it's now this afternoon, to try
 
          5       and clarify the Academy's status as a school,
 
          6       not from a legal perspective, but from that of
 
          7       an educator.
 
          8            And it -- it was sort of a surprise to me
 
          9       when I arrived this morning, and I saw so many
 
         10       of -- of my students here.  And these are young
 
         11       men from the Academy for Aerospace Technology at
 
         12       various -- various grade levels.
 
         13            We also have a parent with us this
 
         14       afternoon, and a concerned community member.
 
         15       And if you guys wouldn't mind standing up, and
 
         16       just --
 
         17            Yeah.  There we go.
 
         18            Thank you.
 
         19            The Academy is a school within a school,
 
         20       and I've passed out some photographs showing
 
         21       that it is a stand-alone, 14,000 square foot
 
         22       building on Cocoa High School's campus.
 
         23            As you will note, it has a separate
 
         24       entrance from the road, it has a separate
 
         25       parking lot, and various other separate phone
 
 
 
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          1       system, P.A. system.
 
          2            I should also point out that it is on a
 
          3       campus that was designed for 2,000 students, and
 
          4       the student -- the -- there are only
 
          5       1100 students right now that that school serves.
 
          6            It -- the Cocoa County is a national leader
 
          7       in the development and application of a separate
 
          8       and independent curriculum which integrates
 
          9       secondary school, academic, and vocational
 
         10       education.
 
         11            And if you will notice also in your
 
         12       handout, I just -- I gave you a little brochure
 
         13       of a book that has just been published by the
 
         14       Association for Supervision and Curriculum
 
         15       Development that was written by me and a
 
         16       co-author, which is about this very special
 
         17       program in Florida.
 
         18            We are a state leader in the development
 
         19       and application of school to work programs in
 
         20       which students participate in work site learning
 
         21       experiences in a kind of corporate simulator.
 
         22            And if you will notice, there is also a
 
         23       letter from a superintendent from a -- a
 
         24       district in New Jersey.  We have done a lot of
 
         25       teacher training, and there are districts all
 
 
 
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          1       over this country that are now using a model
 
          2       that we use called virtual learning, which
 
          3       seamlessly integrates academic and vocational
 
          4       education.
 
          5            We are a break-the-mold school which
 
          6       utilizes flexible scheduling, collaborative
 
          7       teaching, and industry standard technologies to
 
          8       ready students for college in the 21st century
 
          9       workplace.
 
         10            There are no bells, there are no separate
 
         11       classes.  We work in a -- in a block kind of
 
         12       schedule in which academic and vocational
 
         13       classes are integrated through projects that the
 
         14       students are doing in -- in their labs.
 
         15            We are endorsed by the City of Cocoa, its
 
         16       educational task force, and we are endorsed by
 
         17       the parents of Cocoa High School by, as was
 
         18       said, an 80-20 vote.
 
         19            We are supported by Florida's major
 
         20       aerospace corporations, we are supported by --
 
         21       even by the Brevard County School Board, as seen
 
         22       by letters that were written previous to our
 
         23       application for conversion.
 
         24            A good choice -- we are also a good school
 
         25       of choice for parents whose students want an
 
 
 
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          1       alternative to the traditional high school.
 
          2            I understand how important it is for you to
 
          3       vote responsibly and in accordance with the
 
          4       law.  As you review the letter of the law,
 
          5       please also consider the spirit of the law as it
 
          6       relates the human factor and the Cocoa Academy's
 
          7       very special circumstance.
 
          8            While some schools may be able to wait
 
          9       until charter school law is clarified or
 
         10       amended, the Academy for Aerospace Technology
 
         11       will not exist another school year.  In fact,
 
         12       while we speak, students are being registered
 
         13       for Cocoa High School's -- in Cocoa High School
 
         14       classes outside of the Academy.
 
         15            If it is not awarded charter school status,
 
         16       Superintendent Sawyer and the Cocoa High
 
         17       administration have said that the Academy will
 
         18       be, quote, unquote, integrated into the
 
         19       traditional school.
 
         20            Simply said, the Academy will be shut
 
         21       down.  For trying to integrate this
 
         22       break-the-mold school into a traditional
 
         23       high school system would be like trying to bake
 
         24       a cake, an entire cake, in a little muffin pan.
 
         25       What you would get is a series of little
 
 
 
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          1       muffins, not a large cake.
 
          2            Over the last four years, CAAT has been
 
          3       awarded over 1 million dollars in grant money to
 
          4       create an Academy for Applied Technology, a
 
          5       school within a school, that prepares students
 
          6       to work and to continue their education.
 
          7            The Brevard County School Board and CAAT
 
          8       have taken this funding with the agreement that
 
          9       they would continue to follow the tenets of what
 
         10       educational research has shown to be effective
 
         11       in preparing high school students for the
 
         12       21st century.
 
         13            Shutting the Academy down will not only lay
 
         14       waste to taxpayer resources, but it will also
 
         15       lay waste to hundreds of young minds.
 
         16            There is much discussion about the need for
 
         17       school reform.  Academies for Applied Technology
 
         18       granted under Florida Statute 233.068 provide
 
         19       good beginnings for school improvement.  A yes
 
         20       vote for CAAT is a yes vote for the other
 
         21       29 academies around the state which have already
 
         22       been funded.
 
         23            Charter school status would give these rare
 
         24       and fragile pilots a chance to thrive by
 
         25       allowing them, should they choose, to get out
 
 
 
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          1       from under the bureaucratic pressures which have
 
          2       historically stifled innovative programs,
 
          3       programs that can make a difference in
 
          4       children's lives.
 
          5            Last year, Florida took a bold step with
 
          6       its endorsement of charter school law.  The
 
          7       Cocoa Academy for Aerospace Technology is the
 
          8       embodiment of that law in that it offers parents
 
          9       and their children a choice.  It has broken away
 
         10       from the traditional design of secondary
 
         11       schools, and it strives for quality, along with
 
         12       innovation.
 
         13            Without charter conversion, one of
 
         14       Florida's shining stars will be extinguished.
 
         15       Please recommend that our local School Board
 
         16       revisit our application.  With your
 
         17       recommendations, perhaps we will be able to more
 
         18       easily convince them that granting autonomy to
 
         19       120 students, six teachers, and one small
 
         20       building in a campus designed for 2,000, and
 
         21       presently serving only 1100 students, will not,
 
         22       cannot threaten local School Board control or
 
         23       resources.
 
         24            COMMISSIONER BROGAN:  Thank you, Dr. Penn.
 
         25            And I will now ask, again, the question --
 
 
 
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          1       and if the -- if the folks from Brevard County
 
          2       have a different spin on this, I'll be glad to
 
          3       hear that, too.
 
          4            But the vote was a vote of the entire
 
          5       faculty and staff, the entire parent body.  At
 
          6       what point was that determination made, and by
 
          7       whom?
 
          8            DR. PENN:  The -- at the determination of
 
          9       the superintendent, who requested that the
 
         10       entire school vote.
 
         11            COMMISSIONER BROGAN:  And was that -- at
 
         12       what point during the application process; do
 
         13       you recall?
 
         14            DR. PENN:  It was at the -- the application
 
         15       was already submitted.  And as I recall -- my
 
         16       letter -- there's a cover letter for my
 
         17       application, and it stated that we were going to
 
         18       be polling the entire school.
 
         19            COMMISSIONER BROGAN:  I guess my question
 
         20       is:  At any point, did you request a poll of
 
         21       just those involved in the Academy --
 
         22            DR. PENN:  That had already been done.
 
         23       Yes, we had already done that.  We had done that
 
         24       in our first application, which was denied.
 
         25            COMMISSIONER BROGAN:  So that was prior
 
 
 
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          1       to --
 
          2            DR. PENN:  Yes, it was done --
 
          3            COMMISSIONER BROGAN:  -- the Brevard poll.
 
          4            DR. PENN:  -- in the summer.  But it was of
 
          5       the same parents and the same teachers who were
 
          6       with the Academy --
 
          7            COMMISSIONER BROGAN:  And --
 
          8            DR. PENN:  -- school --
 
          9            COMMISSIONER BROGAN:  -- Dr. Penn, trying
 
         10       to recollect my visit, it's been a while now.
 
         11            DR. PENN:  Yes.
 
         12            COMMISSIONER BROGAN:  The students in the
 
         13       Academy are involved in some courses in the
 
         14       traditional school itself; are they not?
 
         15            In other words, while it is a stand-alone
 
         16       facility with much of the course work standing
 
         17       alone within the Academy, there is interaction
 
         18       between the students of the Academy and the
 
         19       traditional teachers, traditional campus.
 
         20            DR. PENN:  Yeah.  Presently they are taking
 
         21       classes outside of the Academy because we have
 
         22       them right now only for five periods, and
 
         23       they -- we're running on a seven-period day.
 
         24            So they either go to their on-the-job
 
         25       training, or work study program, or they attend
 
 
 
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          1       the sixth and seventh period in the
 
          2       traditional --
 
          3            COMMISSIONER BROGAN:  Under the --
 
          4            DR. PENN:  -- high school.
 
          5            COMMISSIONER BROGAN:  -- proposal, would
 
          6       they continue to avail themselves of the
 
          7       traditional classrooms and --
 
          8            DR. PENN:  No.  And the reason for that is
 
          9       because during our first proposal, the
 
         10       Cocoa High School administration felt that it
 
         11       would -- it would -- it would be a conflict of
 
         12       interest if there -- if we had a reciprocity
 
         13       between the two schools.
 
         14            And so in our second proposal, we proposed
 
         15       to have the students for -- for the entire
 
         16       school day.  And to offer all of the electives.
 
         17            COMMISSIONER BROGAN:  So they would be in a
 
         18       position to acquire all 24 credits with -- in a
 
         19       completely self-contained academy setting.
 
         20            DR. PENN:  Yes, sir.
 
         21            COMMISSIONER BROGAN:  Under the proposal.
 
         22            DR. PENN:  Yes, sir.
 
         23            COMMISSIONER BROGAN:  If that was the
 
         24       determination -- and, again, I'm going to give
 
         25       everybody a chance to answer this one.  But this
 
 
 
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          1       one has sort of confounded me from the
 
          2       beginning.
 
          3            If that was the determination, was that
 
          4       offered with a degree of success?  In other
 
          5       words, was the school and the district, were
 
          6       they willing to accept the Academy as a
 
          7       completely freestanding and nonreciprocal
 
          8       entity?
 
          9            DR. PENN:  Yes.  In fact, there have been
 
         10       several School Board members who have said, if
 
         11       we could just possibly move off of
 
         12       Cocoa High School's campus, they would be very,
 
         13       very happy to approve the school.
 
         14            COMMISSIONER BROGAN:  Well then, I go back
 
         15       to my original question, and, again, I'll give
 
         16       Brevard a chance to answer this, too.
 
         17            But if, in fact, the application is written
 
         18       on a completely self-contained, stand-alone
 
         19       program, with no interface -- I recognize what a
 
         20       campus is, so I put no interface in quotes,
 
         21       obviously.
 
         22            -- why in your opinion, again, were all of
 
         23       the faculty and all of the parents polled
 
         24       regarding this issue?
 
         25            DR. PENN:  I don't think I can answer
 
 
 
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          1       that.  Possibly the --
 
          2            COMMISSIONER BROGAN:  Fair enough.
 
          3            DR. PENN:  -- the Superintendent may be
 
          4       able to answer that.  I know it was a -- it was
 
          5       an -- it was something that was in their
 
          6       policies and procedures, they wrote into their
 
          7       policies and procedures.
 
          8            COMMISSIONER BROGAN:  Fair enough.
 
          9            Other questions of the members, and then
 
         10       we'll --
 
         11            ATTORNEY GENERAL BUTTERWORTH:
 
         12       Commissioner --
 
         13            COMMISSIONER BROGAN:  Yes, sir.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  -- just --
 
         15            COMMISSIONER BROGAN:  General.
 
         16            ATTORNEY GENERAL BUTTERWORTH:  -- just one
 
         17       quick one.
 
         18            You -- everyone keeps referring to this as
 
         19       a school within a school.  But it appears from
 
         20       what you have stated, and also from your
 
         21       handout, it says you're a separate, stand-alone
 
         22       14,000 square foot building that was not being
 
         23       fully utilized.
 
         24            So you are now utilizing this previously
 
         25       unutilized building, and you're the sole
 
 
 
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          1       occupant of that particular building?
 
          2            DR. PENN:  That's correct.  There was also
 
          3       $365,000 that we given -- that we won through an
 
          4       RFP of a technology and science integration
 
          5       facilities.  And the building, which is a Butler
 
          6       building, that was only about half used for
 
          7       instructional purposes, we added another
 
          8       3,000 square feet onto that --
 
          9       three-and-a-half thousand square feet onto that
 
         10       building.
 
         11            ATTORNEY GENERAL BUTTERWORTH:  So is the
 
         12       reason why you're a school within a school then
 
         13       I guess is because the piece of land you're on
 
         14       happens to be the same piece of land that
 
         15       Cocoa High School is on.
 
         16            DR. PENN:  That's correct.
 
         17            ATTORNEY GENERAL BUTTERWORTH:  If you were
 
         18       to put a 2 foot wood picket fence around your
 
         19       particular building, would it then still be a
 
         20       school within a school?
 
         21            I mean, I'm very --
 
         22            DR. PENN:  It would possibly be a school on
 
         23       a school.
 
         24            ATTORNEY GENERAL BUTTERWORTH:  A school --
 
         25            COMMISSIONER BROGAN:  Good for you.
 
 
 
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          1            ATTORNEY GENERAL BUTTERWORTH:  Because what
 
          2       seems to be here, we're talking -- I mean,
 
          3       really, when I first heard about this and didn't
 
          4       see the pictures, and being briefed by my staff,
 
          5       I was really envisioning that it was one campus,
 
          6       like a room like this, and that you were using
 
          7       some of the same type of facilities that -- that
 
          8       they were using, and you were co-using
 
          9       facilities.
 
         10            I'd be interested -- I'm interested in
 
         11       hearing from the School Board now as to how this
 
         12       really is a school within a school, and not a
 
         13       school -- as you say -- on top of a school,
 
         14       or -- it appears to me right now, only hearing
 
         15       half of the argument, that you just happen to be
 
         16       on land that if, in fact, the School Board, or
 
         17       someone else was to say was no longer
 
         18       Cocoa High School land, you would -- you'd have
 
         19       no problem.
 
         20            COMMISSIONER BROGAN:  Let me poke at that a
 
         21       little bit further.  It goes back to my question
 
         22       of a moment ago.
 
         23            Under the proposal, will there be any
 
         24       co-use of any facilities between you and
 
         25       Cocoa High?
 
 
 
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          1            DR. PENN:  No.  There's --
 
          2            COMMISSIONER BROGAN:  Physical education
 
          3       locker rooms, lunchrooms.
 
          4            DR. PENN:  No.  No.  We have -- we have
 
          5       asked in a contract -- a separate contract to be
 
          6       able to use the -- the food services.  But that
 
          7       is certainly not necessary.  It is -- it would
 
          8       be nice, but it is certainly not necessary.
 
          9            COMMISSIONER BROGAN:  And how will you meet
 
         10       the physical education requirement?  I mean,
 
         11       I'm -- not how will you.
 
         12            But you have all of that figured out as to
 
         13       how you would meet, for example, the
 
         14       physical education requirement without co-use of
 
         15       Cocoa facilities?
 
         16            DR. PENN:  Yes.  We would have a certified
 
         17       PE teacher, and we have a civic center which is
 
         18       just down the road, and we would strike up an
 
         19       agreement with them.
 
         20            COMMISSIONER BROGAN:  Okay.
 
         21            TREASURER NELSON:  I just want to say that
 
         22       about six months ago, I went home and visited
 
         23       this particular school.  And I thought that it
 
         24       was a rather innovative use of existing
 
         25       facilities on Cocoa High School's campus.  This
 
 
 
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          1       is a building.  It's over in the corner of the
 
          2       campus.
 
          3            But I thought it was rather interesting
 
          4       that they had their own curriculum and did most
 
          5       of that, for, like, five of the seven periods
 
          6       per day.  But then the other two periods of the
 
          7       day, that they integrated into the
 
          8       Cocoa High School campus on other types of
 
          9       activities.
 
         10            And, you know, whatever the legalities are
 
         11       here -- first of all, I want to commend the
 
         12       Brevard County School system, and you all in
 
         13       your Academy, for utilizing resources that were
 
         14       in need of being utilized.  And doing it in a
 
         15       way that you brought in the private sector, they
 
         16       brought in all kinds of help from aerospace
 
         17       companies there at the Cape.
 
         18            So it's interesting that it brings us to
 
         19       the debate today.  But let's don't lose sight of
 
         20       the fact, you need to be commended for what
 
         21       you've done to this point.
 
         22            DR. PENN:  Thank you.
 
         23            COMMISSIONER BROGAN:  I'm going to at this
 
         24       point, thank you all, and ask the members of the
 
         25       Brevard County School system if they would
 
 
 
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          1       please step forward.
 
          2            Introduce yourself for the record, please.
 
          3            MR. BISTLINE:  Yes, sir.
 
          4            Mr. Chairman, members of the Cabinet, my
 
          5       name's Harold Bistline.  I'm the attorney for
 
          6       the Brevard County School Board.
 
          7            With me today is Dr. David Sawyer, our
 
          8       Superintendent; and Ms. Fran Pickett, one of
 
          9       School Board members.  Our chairman couldn't be
 
         10       here today because we have a School Board
 
         11       meeting tonight.
 
         12            I'd like to first maybe clear something up,
 
         13       and that is, as far as the facility goes.  The
 
         14       pictures that Ms. Penn distributed to you are
 
         15       not part of the record.
 
         16            However, we have -- if you're going to
 
         17       consider those, I have a copy of a schematic of
 
         18       the Cocoa High School campus that I would -- I
 
         19       only have one copy, that I'd like to pass along
 
         20       to you so you can see where the building really
 
         21       is, and you will see that the building that the
 
         22       Academy program uses is part and parcel of
 
         23       the -- of the Cocoa High School campus.  And
 
         24       they would certainly have to share all of the
 
         25       facilities in order to continue to use that
 
 
 
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          1       project -- that building as a -- as a charter
 
          2       school.
 
          3            COMMISSIONER BROGAN:  Be happy to have it.
 
          4            MR. BISTLINE:  With your permission.
 
          5            The handwriting on there was mine, but the
 
          6       buildings are numbered, and there's a legend on
 
          7       the bottom.
 
          8            COMMISSIONER BROGAN:  No points off.
 
          9            MR. BISTLINE:  Mr. Chairman, members of the
 
         10       Cabinet, on February 25, the School Board
 
         11       considered six applications for charter schools
 
         12       in Brevard County.  The School Board approved
 
         13       three and denied three.  One of the three denied
 
         14       was the application of the Cocoa Aerospace
 
         15       Academy program.
 
         16            At this time, I would like to first point
 
         17       out to the Cabinet what is it that is being
 
         18       proposed by the applicant.  Simply put, the
 
         19       applicant is proposing the conversion into a
 
         20       charter school of a portion of the physical
 
         21       plant, student body, and curriculum of an
 
         22       existing public high school in Brevard County.
 
         23            As far as we're concerned, this is no less
 
         24       than a division or splitting up of a
 
         25       1200 student high school that has served, and
 
 
 
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          1       continues to serve its community well.
 
          2            I respectfully submit to the Cabinet that
 
          3       this is not authorized by the charter school
 
          4       law, and should not be entertained by the State
 
          5       Board of Education for the reasons that I will
 
          6       get into in a moment.
 
          7            I would now like to examine who -- who is
 
          8       the applicant in this particular case.
 
          9            The Cocoa Aerospace Academy is an open
 
         10       integral vocational program established by the
 
         11       Brevard County School District, funded by a
 
         12       grant applied for by the Brevard County School
 
         13       District, and instituted as part of the
 
         14       comprehensive curriculum at Cocoa High School to
 
         15       enhance the educational opportunities
 
         16       available --
 
         17            (Attorney General Butterworth exited the
 
         18       room.)
 
         19            MR. BISTLINE:  -- at Cocoa High School.
 
         20            The Cocoa Aerospace Academy program is
 
         21       housed in facilities that are part and parcel of
 
         22       the Cocoa High School campus, and, in fact, the
 
         23       Cocoa High School general curriculum utilizes
 
         24       that same building two periods a day, periods
 
         25       six and seven.
 
 
 
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          1            The facility that is assigned to the
 
          2       Academy program and the -- I'm sorry, the
 
          3       faculty that is assigned to the Academy program
 
          4       are teachers that are employed by the
 
          5       Brevard County School District, and are under
 
          6       the direct supervision and control of the
 
          7       principal of Cocoa High.
 
          8            Under any analysis, the Aerospace Academy
 
          9       program is an integral part of the curriculum
 
         10       offered at Cocoa High School.
 
         11            At this time, I would like to examine the
 
         12       statute that's at issue, and that's
 
         13       Section 228.056(3), Florida Statutes.
 
         14            I'm just going to read it to you.  It's
 
         15       very short.  Sub (3) says:  Proposal.  A
 
         16       proposal for a new charter school may be made by
 
         17       an individual, teachers, parents, a group of
 
         18       individuals, or a legal entity organized under
 
         19       the laws of this state.
 
         20            The principal, teachers, parents, and/or
 
         21       the School Advisory Council at an existing
 
         22       public school shall submit any proposal for
 
         23       converting the school to a charter school.
 
         24            And then it goes on to talk about the --
 
         25       that the application to convert an existing
 
 
 
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          1       school --
 
          2            (Attorney General Butterworth entered the
 
          3       room.)
 
          4            MR. BISTLINE:  -- must demonstrate the
 
          5       support of at least 50 percent of the teachers
 
          6       employed at the school, and 50 percent of the
 
          7       parents whose children are employed at the
 
          8       school.
 
          9            Now, the applicant claims that the Academy
 
         10       program is a school within a school, and,
 
         11       therefore, need not demonstrate the support of
 
         12       at least 50 percent of the teachers and parents
 
         13       at Cocoa High School.
 
         14            The applicant's argument is that as a
 
         15       school within a school, a program, that it need
 
         16       only demonstrate the support of 50 percent of
 
         17       the teachers assigned to the Academy program,
 
         18       and 50 percent of the parents of the students
 
         19       that are enrolled in the program.
 
         20            Now, let's look at this in a -- with a --
 
         21       with the facts of this case.
 
         22            There are 84 teachers employed at
 
         23       Cocoa High School.  There are six teachers
 
         24       assigned to the Academy program.  To accept the
 
         25       argument of the applicant, the applicant would
 
 
 
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          1       only have to demonstrate the support of three
 
          2       teachers out of 84 teachers employed at Cocoa
 
          3       High School in order to meet the threshold of
 
          4       the statute.
 
          5            I don't believe that that's what the
 
          6       statute says, what the Legislature intended, or
 
          7       that's a reasonable construction of the statute.
 
          8            You've already heard that the entire
 
          9       faculty of Cocoa High School was polled, as per
 
         10       the application process that is set forth by the
 
         11       statute and the School District, and that
 
         12       81 percent of the faculty was opposed to the
 
         13       conversion of the Cocoa Aerospace Academy
 
         14       program within Cocoa High School.
 
         15            Now, let's talk about what is a school in
 
         16       the state of Florida in accordance with the
 
         17       charter school law.
 
         18            In Florida, a public school must have a
 
         19       principal.  The Academy program has no
 
         20       principal.
 
         21            In Florida, a public school must have a
 
         22       School Advisory Council.  The Academy program at
 
         23       Cocoa High School has no School Advisory
 
         24       Council, because it is not a school.
 
         25            In Florida, a public school must have a
 
 
 
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          1       school identification number issued by the
 
          2       Department of Education.  The Academy program
 
          3       has no such number.
 
          4            And in Brevard County, a public school must
 
          5       be accredited by School Board policy and rule.
 
          6       The Academy program is not accredited as a
 
          7       public school, because it is a program and not a
 
          8       school.
 
          9            At this point, I'd like to return again to
 
         10       the statute.  The statute says that the
 
         11       principal, teachers, parents, and/or School
 
         12       Advisory Council at an existing public school
 
         13       shall submit any proposal of converting the
 
         14       school to a charter school.
 
         15            In this case, the principal of Cocoa
 
         16       High School doesn't support the application, and
 
         17       is not a sponsor of the application.
 
         18            As I stated earlier, 81 percent of the
 
         19       faculty at Cocoa High School opposes this
 
         20       application.
 
         21            The Cocoa High School School Advisory
 
         22       Council, of which there is one, does not support
 
         23       the application and is not a sponsor of this
 
         24       application.
 
         25            I want to now turn to the legal opinion
 
 
 
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          1       which is contained in my brief as our appendix,
 
          2       and that is the legal opinion of the General
 
          3       Counsel's Office of the Department of
 
          4       Education.  I tell you, it's attached to our
 
          5       brief, is in the appendix.
 
          6            It's authored by Mr. Dean Andrews, a Deputy
 
          7       General Counsel of the Department of Education.
 
          8       Mr. Andrews states in his opinion that he has
 
          9       researched this very issue whether or not a
 
         10       program -- in accordance with -- set up in the
 
         11       courts with the statute that's been cited by
 
         12       the -- the applicant is, in fact, a school --
 
         13            (Secretary Mortham exited the room.)
 
         14            MR. BISTLINE:  -- within the contemplation
 
         15       or the letter of the law of 228.056.
 
         16            Mr. Andrews, in his legal memorandum,
 
         17       states that the Aerospace Academy was a program
 
         18       offered as part of a comprehensive -- of the
 
         19       comprehensive high school, Cocoa High School,
 
         20       and that he could not conclude that this program
 
         21       equates to a school within the meaning of
 
         22       228.056(3), Florida Statutes.
 
         23            That has also been my opinion, and is an
 
         24       opinion that I believe is shared by other
 
         25       attorneys who are interested in this subject
 
 
 
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          1       matter.
 
          2            We've also heard about some proposed
 
          3       legislation, and a proposed Board rule.
 
          4            Well, it seems to me that if the charter
 
          5       school -- first of all, I don't believe that the
 
          6       charter school statute, 228.056(3), is
 
          7       ambiguous.  I think it's perfectly clear.
 
          8            I don't think there's any question about
 
          9       what a public school is in Florida, or that the
 
         10       existing public school that's referenced in this
 
         11       statute means just that, a public school, and
 
         12       not a program within a school that is set up by
 
         13       a District School Board.
 
         14            But it also seems to me that if there is a
 
         15       need for proposed legislation, then clearly the
 
         16       statute, as it is presently written, does not
 
         17       authorize a partial conversion of a program
 
         18       within an existing public school, to be a
 
         19       charter school under the statute.
 
         20            And I would say the same thing, if there
 
         21       needs to be any proposed rulemaking.  As far as
 
         22       I know, there is no legislation --
 
         23            (Secretary Mortham entered the room.)
 
         24            MR. BISTLINE:  -- proposed in this session
 
         25       of the legislature which would amend the statute
 
 
 
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          1       to accommodate the argument that is made by the
 
          2       applicant.
 
          3            So in summary -- and I want to -- I want to
 
          4       reserve some of my time, because Dr. Sawyer, our
 
          5       Superintendent, would like to make a few
 
          6       comments to the -- to the Cabinet.
 
          7            But in summary, we respectfully submit that
 
          8       the charter school application -- the charter
 
          9       school law does not authorize the partial
 
         10       conversion of an existing public school.
 
         11            We would further respectfully argue that
 
         12       the Cocoa Aerospace Academy program is not a
 
         13       school within the meaning of the charter school
 
         14       law.
 
         15            And finally, under any analysis, the
 
         16       applicant has failed to demonstrate support of
 
         17       the requisite number of faculty and parents at
 
         18       the affected school, which in this case, is
 
         19       clearly the entire Cocoa High School.  And,
 
         20       therefore, the application is legally sufficient
 
         21       under the charter school law.
 
         22            And I just want to give -- want to
 
         23       reiterate that if you take the applicant's
 
         24       position, his legal position, it does not seem
 
         25       reasonable that in order to convert a portion of
 
 
 
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          1       an existing public school that serves
 
          2       1200 students, that has 84 teachers, that all
 
          3       you would have to do is to secure the approval
 
          4       of three teachers in a program, and the parents
 
          5       of 160 students -- 50 percent of the parents of
 
          6       160 students out of a student body of 1200, in
 
          7       order to meet the threshold requirement of the
 
          8       statute.
 
          9            I don't -- we don't believe that that's the
 
         10       interpretation -- that is a correct
 
         11       interpretation of the statute, or that it's
 
         12       reasonable, or that the State Board ought to --
 
         13       ought to authorize that type of an
 
         14       interpretation.
 
         15            At this time, with your permission, I would
 
         16       like Dr. Sawyer -- unless there's any
 
         17       questions -- to make his comments to the Board.
 
         18            COMMISSIONER BROGAN:  Hear from
 
         19       Dr. Sawyer.
 
         20            TREASURER NELSON:  May I ask the attorney a
 
         21       question?
 
         22            COMMISSIONER BROGAN:  Yes, sir.
 
         23            TREASURER NELSON:  More of a legal
 
         24       question.  Since we're plowing new ground here,
 
         25       and there likely is to be some legislative
 
 
 
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          1       clarification --
 
          2            MR. BISTLINE:  Yes, sir.
 
          3            TREASURER NELSON:  -- I'm advised that is
 
          4       being worked in the Legislature on this
 
          5       technical point --
 
          6            MR. BISTLINE:  Yes, sir.
 
          7            TREASURER NELSON:  -- the basic legislative
 
          8       intent of the statute, it would seem to me, was
 
          9       to get the support, under the way I read the
 
         10       statute, a proposal for a new charter school,
 
         11       and it set out these events.
 
         12            And the idea was clearly that you get the
 
         13       parents and the teachers supporting it.  But
 
         14       it's not the entire Cocoa High School that is
 
         15       asking to be a charter school.
 
         16            So I wonder that under the legislative
 
         17       intent of the statute, when it obviously did not
 
         18       contemplate this narrow question that is facing
 
         19       us, but the broad brush of that legislative
 
         20       intent was clearly to -- meant to apply to the
 
         21       parents and the teachers of the school that was
 
         22       asking to convert to charter status.
 
         23            And under that interpretation, clearly the
 
         24       legislative intent is met.
 
         25            What's your comment to that?
 
 
 
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          1            MR. BISTLINE:  My comment to that,
 
          2       Mr. Nelson, is, first of all, what is a public
 
          3       school?  What is an existing public school in
 
          4       accordance with the statute?
 
          5            It's my position that an existing public
 
          6       school, in this case would be Cocoa
 
          7       High School.  A -- a vocational program that is
 
          8       established by a District School Board,
 
          9       particularly this program, is not an existing
 
         10       public school.
 
         11            You need to also take a look at the statute
 
         12       itself.  And it says that the principals,
 
         13       teachers, parents, and/or School Advisory
 
         14       Council at an existing public school.
 
         15            Now, in this case, the Cocoa Aerospace
 
         16       Academy program doesn't have a principal,
 
         17       doesn't have its own teachers, and doesn't have
 
         18       a School Advisory Council.  I don't see how it
 
         19       could be called an existing public school to
 
         20       begin with.
 
         21            And then frankly, if you're talking about a
 
         22       partial conversion of an existing, thriving
 
         23       public high school, it would seem to me
 
         24       reasonable to require that at least 50 percent
 
         25       of the teachers and the -- and the parents of
 
 
 
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          1       students enrolled in that high school, which is
 
          2       clearly going to be affected by any partial
 
          3       conversion of a portion of their student body,
 
          4       faculty, and campus, should be polled, and
 
          5       should be -- and you should have to demonstrate
 
          6       at least 50 percent support for that type of a
 
          7       proposal.
 
          8            COMMISSIONER BROGAN:  What is it,
 
          9       Counselor --
 
         10            MR. BISTLINE:  In this case --
 
         11            COMMISSIONER BROGAN:  -- what is it,
 
         12       Counselor, that you believe 80 percent of the
 
         13       parents of that entire high school misunderstood
 
         14       when they voted to support this?
 
         15            MR. BISTLINE:  Okay.
 
         16            COMMISSIONER BROGAN:  I recognize what
 
         17       you're saying.
 
         18            MR. BISTLINE:  Yes, sir.
 
         19            COMMISSIONER BROGAN:  And, you know,
 
         20       without doing a whole lot of math here, if you
 
         21       consider that there's the potential of
 
         22       2400 parents, be it 1200 students; 84 faculty
 
         23       members, it's kind of ironic that we've boiled
 
         24       this whole argument down to what in reality
 
         25       is -- is a handful of the faculty members who
 
 
 
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          1       would prefer not see this happen.
 
          2            A handful because out of the 80 percent --
 
          3       81 percent of the faculty members that voted no,
 
          4       that still leaves another group of people that
 
          5       obviously voted yes.
 
          6            So I guess what I'm trying to get to is:
 
          7       Even though on a technicality -- and I believe
 
          8       that's what this argument is boiling down to --
 
          9       is technicality about the definition of what is
 
         10       a school within a school, and what's not a
 
         11       school within a school.  We're, in essence,
 
         12       recognizing that 80 percent of those parents,
 
         13       vast majority of whom do not have a child in
 
         14       that program, believe that this sounds like a
 
         15       hell of a good idea.
 
         16            MR. BISTLINE:  Maybe I could answer that.
 
         17            COMMISSIONER BROGAN:  I believe what
 
         18       we're -- what we may be guilty of doing is
 
         19       disregarding what 80 percent of the entire
 
         20       parent community believe is the right thing to
 
         21       do in putting an apples and oranges comparison.
 
         22            Understand what the law says, but I'm --
 
         23       I'm troubled by that.
 
         24            MR. BISTLINE:  Well, Mr. Brogan, maybe --
 
         25            TREASURER NELSON:  Let me interrupt here
 
 
 
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          1       just a second.  We're the -- we're the appellate
 
          2       panel up here.
 
          3            I'm not sure that's what the law says,
 
          4       because the -- the first sentence of the law
 
          5       says:  A -- I think there's ambiguity throughout
 
          6       the statute that needs clarification.
 
          7            COMMISSIONER BROGAN:  No question.
 
          8            TREASURER NELSON:  And that's what I'm
 
          9       stating, and as I'm reviewing this as one member
 
         10       of the State Board of Education.  Because it
 
         11       says -- the first sentence is:  A proposal for a
 
         12       new charter school may be made by an individual,
 
         13       teachers, parents, a group of individuals, or a
 
         14       legal entity organized under the laws of this
 
         15       state.
 
         16            MR. BISTLINE:  Uh-hum.
 
         17            TREASURER NELSON:  That's who may apply.
 
         18            MR. BISTLINE:  Yes, sir.
 
         19            TREASURER NELSON:  And then it goes on to
 
         20       talk about an application submitted proposing to
 
         21       convert an existing public school to a charter
 
         22       school shall demonstrate.
 
         23            So we've got an ambiguity here because we
 
         24       don't have a total public Cocoa High School
 
         25       trying to convert.  We have a portion, a school
 
 
 
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          1       within a school, trying to convert.  And that's
 
          2       the ambiguity.
 
          3            MR. BISTLINE:  Mr. Brogan, may I --
 
          4            COMMISSIONER BROGAN:  Yes, sir.
 
          5            MR. BISTLINE:  -- answer the question?
 
          6            COMMISSIONER BROGAN:  Yes, sir.
 
          7            MR. BISTLINE:  As far as the parent survey
 
          8       is concerned, our records reflect there's
 
          9       1200 students at the school, approximately.
 
         10       That the 1200 parent surveys were sent out.  Of
 
         11       these, 192 parents cast their votes out of the
 
         12       entire 1200 surveyed sent out.  And of the 192
 
         13       votes that were cast out of 1200 solicited, only
 
         14       157 were yes votes.
 
         15            COMMISSIONER BROGAN:  I understand how --
 
         16            MR. BISTLINE:  So the 80 percent --
 
         17            COMMISSIONER BROGAN:  -- given us some
 
         18       unusual Presidents of the United States, based
 
         19       on exactly that formula.
 
         20            MR. BISTLINE:  Right.
 
         21            COMMISSIONER BROGAN:  But unfortunately,
 
         22       that's the formula that we're stuck with.  So --
 
         23            MR. BISTLINE:  But, in fact, it's -- you
 
         24       can't -- I don't think it's fair to say that
 
         25       80 percent of the parents of the students
 
 
 
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          1       enrolled at Cocoa High School support the
 
          2       Academy program.  In fact --
 
          3            COMMISSIONER BROGAN:  Let's hear from --
 
          4       from the Superintendent.  I don't want to use up
 
          5       all your time.
 
          6            DR. SAWYER:  Thank you very much.  My
 
          7       name's Dave Sawyer.  I'm Superintendent of
 
          8       schools in Brevard County.  It's a pleasure to
 
          9       have this opportunity to address the State Board
 
         10       concerning this particular issue.
 
         11            I'm glad that Mr. Bistline had the
 
         12       opportunity to clarify that issue about the
 
         13       80 percent of the parents.  Obviously 80 percent
 
         14       of the parents did not support the
 
         15       Cocoa Academy, 80 percent of the parents did not
 
         16       even vote.
 
         17            It is my pleasure to talk to you a little
 
         18       bit about the circumstances that led up to that,
 
         19       and I'd like to take first the opportunity to
 
         20       respond to Commissioner Brogan's first question,
 
         21       which was how was the vote solicited.
 
         22            The vote was solicited based upon
 
         23       Dr. Alexandra Penn's letter of submisssion for
 
         24       her application, which was received on -- in my
 
         25       office on December the 31st.
 
 
 
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          1            In that letter she clarified and specified
 
          2       that her application was not complete, that it
 
          3       was pending the vote of the faculty and the
 
          4       parents at Cocoa High School, and that that was
 
          5       going -- that had been scheduled, and was going
 
          6       to be collected.
 
          7            In my response three days later, I think it
 
          8       was on January the 3rd, we immediately reviewed
 
          9       those documents.  I certified the fact that her
 
         10       application was complete, that it was an
 
         11       application for a conversion, and that it did
 
         12       require the vote.
 
         13            The vote was taken, she failed to meet the
 
         14       requirement that she herself knew was there, and
 
         15       had agreed to participate in.  And upon failing
 
         16       to meet that requirement, has now indicated that
 
         17       perhaps a different population --
 
         18            COMMISSIONER BROGAN:  Superintendent, let
 
         19       me --
 
         20            DR. SAWYER:  -- should be solicited.
 
         21            COMMISSIONER BROGAN:  -- let me interrupt
 
         22       you, Dr. Sawyer, for just a minute --
 
         23            DR. SAWYER:  Sure.
 
         24            COMMISSIONER BROGAN:  -- because that's
 
         25       a -- that was a point I asked earlier, I'm still
 
 
 
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          1       confused about.  I want to nail it down.
 
          2            The orig-- if I understood you correctly,
 
          3       the original vote that was determined in the
 
          4       application process was a vote agreed to by the
 
          5       Academy which was in itself a vote of the entire
 
          6       faculty, and the entire parent body.
 
          7            DR. SAWYER:  That is correct.
 
          8            COMMISSIONER BROGAN:  I am correct --
 
          9            DR. SAWYER:  And certified in the record.
 
         10       If you'll read the letter that accompanied her
 
         11       application, you'll see that there.  And also
 
         12       the response that I provided to her application
 
         13       certifies that fact.
 
         14            When the vote was not achieved, and then
 
         15       the interviews after the review of the
 
         16       application, she again reiterated the fact that
 
         17       she --
 
         18            COMMISSIONER BROGAN:  Doctor, was there --
 
         19            DR. SAWYER:  -- had not achieved --
 
         20            COMMISSIONER BROGAN:  -- was there ever a
 
         21       separate vote of just the Academy parents and
 
         22       just the Academy faculty, or was that contained
 
         23       within the greater vote?
 
         24            DR. SAWYER:  That was only -- only based
 
         25       upon her calculations and her knowledge of who
 
 
 
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          1       those people were.  There was never any
 
          2       solicitation, no indication ever in the
 
          3       application process that only those individuals
 
          4       would be solicited, and a vote cast by them.  It
 
          5       was always a total vote.
 
          6            COMMISSIONER BROGAN:  Dr. --
 
          7            DR. SAWYER:  It was our understanding, from
 
          8       our own legal advisor, and from the legal advice
 
          9       we received from the Department of Education,
 
         10       that our position was true and accurate, and we
 
         11       defended that throughout the process.
 
         12            TREASURER NELSON:  Dr. Sawyer, what was the
 
         13       vote of the School Board?
 
         14            DR. SAWYER:  The vote of the School Board
 
         15       was 3 to 2 to deny the application.  One of the
 
         16       votes that -- one of the two votes indicated
 
         17       that she would support the recommendation to
 
         18       deny if the statistics that were shared during
 
         19       the evening's events were certified, or
 
         20       provided -- audited, if you will, for her
 
         21       information.
 
         22            It's my opinion that the Brevard County
 
         23       School Board right now is 4 to 1 on this
 
         24       application.
 
         25            I think it's important to point out that
 
 
 
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          1       Brevard County Public Schools is, in fact,
 
          2       supportive of charter schools.
 
          3            We've implemented a pol-- implemented a
 
          4       policy and a procedure that allows applicants to
 
          5       apply at any time in Brevard County for a
 
          6       charter school.  The only stipulation is that in
 
          7       order to begin with the beginning of a school
 
          8       year, they must apply by December 31st prior to
 
          9       the initiation of that school year so there's
 
         10       ample time for consideration; debate; and even
 
         11       an appeal, if necessary.
 
         12            And as Mr. Bistline indicated, we did
 
         13       recommend the approval of three charters in
 
         14       Brevard County.  They now have been reduced to
 
         15       two.  And, in fact, tonight, those two will be
 
         16       approved by our Board, at least from all
 
         17       indications, for operation in Brevard County,
 
         18       accounting for some approximate 2 million
 
         19       dollars that will go out.
 
         20            I do think it's important to state that the
 
         21       vote in -- contrary to what Dr. Penn has said,
 
         22       was not requested by this Superintendent.  It
 
         23       was clearly specified in our own records.
 
         24            The record also clearly describes the
 
         25       Academy as a program.  If you read the proposal
 
 
 
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          1       for the creation of the Academy, it defines
 
          2       itself as a vocational education program at
 
          3       Cocoa High School for Cocoa High School
 
          4       students.  And that's within their own proposal,
 
          5       as well as in their own materials.
 
          6            The Academy will not cease to exist.  The
 
          7       aerospace program will continue to be offered to
 
          8       students.  In fact, students are enrolling for
 
          9       it at this time.
 
         10            However, students will be reintegrated into
 
         11       the academic program at Cocoa High School as a
 
         12       part of the plan that we have in place for next
 
         13       school year, as will other students be
 
         14       integrated into the program that exists for the
 
         15       Cocoa Academy.
 
         16            I'd simply like to point out that
 
         17       14,000 square feet on the campus of
 
         18       Cocoa High School is currently available for 118
 
         19       of their 1200 students.
 
         20            This plan for next year will open that
 
         21       facility up to all Cocoa High School students
 
         22       who will not have to forfeit 100 percent of
 
         23       their school day in order to take advantage of
 
         24       that facility and the equipment that has been
 
         25       purchased for their benefit.
 
 
 
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          1            And as was pointed out earlier, we do have
 
          2       two periods every day that students from
 
          3       Cocoa High School enjoy that equipment now.
 
          4       That's a million dollars worth of equipment
 
          5       using the term -- the amount specified by
 
          6       Dr. Penn that's currently available for students
 
          7       from wherever they may be in the
 
          8       Cocoa High School environment.  Approving this
 
          9       at this time, of course, would remove that.
 
         10            Cocoa Academy students do, in fact, take
 
         11       courses in physical education, ROTC, band,
 
         12       music, foreign languages, et cetera, throughout
 
         13       the campus at Cocoa High School, because they
 
         14       are part of Cocoa High School, always have been,
 
         15       and they always will be if they remain on that
 
         16       campus.
 
         17            It's important to recognize that although
 
         18       the students participate in only five periods in
 
         19       the Academy, they actually earn as many as
 
         20       seven credits for those five periods, plus an
 
         21       additional two by going to the classes outside
 
         22       in the Cocoa High School environment.
 
         23            Academy students are earning
 
         24       four-and-a-half to five credits per semester on
 
         25       a seven-period day as a result.
 
 
 
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          1            My summation is simply this:  The Academy
 
          2       understood the rules, they even perpetuated the
 
          3       rules.  They failed to meet the requirements
 
          4       specified by the law to achieve the 50 percent
 
          5       endorsement by their own faculty.  They had two
 
          6       opportunities to do that.
 
          7            They submitted, as you were told, an
 
          8       application earlier where the indication from
 
          9       the faculty was that they were not supportive of
 
         10       that program.  And, in fact, the percent though
 
         11       increased over the time frame.
 
         12            Having not met that requirement, they were
 
         13       not eligible.  And that was consistent with
 
         14       every legal opinion that we received, including
 
         15       the legal opinion of the Department of
 
         16       Education's own Deputy Counsel.
 
         17            TREASURER NELSON:  May I ask --
 
         18            COMMISSIONER BROGAN:  Thank you,
 
         19       Dr. Sawyer.
 
         20            Commissioner.
 
         21            TREASURER NELSON:  If this charter school
 
         22       is not approved, what will happen to the
 
         23       Academy?
 
         24            DR. SAWYER:  The Academy -- the aerospace
 
         25       portion of the Academy will remain, those
 
 
 
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          1       courses will be available for students to
 
          2       enroll.  They will take their language arts,
 
          3       their science, and their mathematics, and
 
          4       social studies with other students in
 
          5       Cocoa High School.
 
          6            That will open up the entire facility for
 
          7       all students to take advantage of that equipment
 
          8       and facility, and it will also allow for maximum
 
          9       integration of students both ways, not just in
 
         10       one way.
 
         11            Mark Elliott, Assistant Principal at
 
         12       Cocoa High School is here, and he can respond
 
         13       specifically to that on how it would work.  I
 
         14       don't have personal knowledge for that if you
 
         15       would like --
 
         16            TREASURER NELSON:  So -- so you're saying
 
         17       that as a policy matter, that it would remain
 
         18       available to all students of Cocoa High School.
 
         19            DR. SAWYER:  Absolutely.  That's --
 
         20            TREASURER NELSON:  Now, I thought as part
 
         21       of the reason for setting up the Academy, and
 
         22       the picture that I'm getting from you all is
 
         23       that you have questions about the Academy.
 
         24            I thought the Academy was being received
 
         25       with just enormous kudos and attaboys.  I've
 
 
 
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          1       certainly heard it in the aerospace community
 
          2       that that's the case.
 
          3            But I thought that part of the reason for
 
          4       setting up the Academy, that it was not limited
 
          5       to the confines of Cocoa High School.  I thought
 
          6       it was supposed to be for all the students of
 
          7       Brevard County that wanted to apply to it.
 
          8            DR. SAWYER:  In fact, all of our special
 
          9       programs are available to all students who wish
 
         10       to apply for them.  There's nothing unusual
 
         11       about that.  Any special programs available,
 
         12       instituted.
 
         13            TREASURER NELSON:  Do you -- do you have
 
         14       some degree of concern because there has been an
 
         15       independence in running that Academy expressed
 
         16       from the direct control of the School Board?
 
         17            DR. SAWYER:  A concern for independence.
 
         18       No, sir, I wouldn't say that.
 
         19            My other concerns, other than this issue of
 
         20       the vote, are substantial and they are
 
         21       significant.  However, they're not a part of the
 
         22       record of this particular event.
 
         23            I have grave concerns about the quality of
 
         24       that program the way it's currently
 
         25       administered, operated, provided, and
 
 
 
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          1       supported.  And I intend to continue to take a
 
          2       look at that.
 
          3            However, based on the vote alone, eight out
 
          4       of ten faculty members who have been there for
 
          5       three years say that this program does not
 
          6       deserve support.
 
          7            TREASURER NELSON:  Well, I will just state
 
          8       that my opinion having visited there once, and
 
          9       having talked to students and parents and the
 
         10       faculty, and having been there as the guest of
 
         11       the -- I'd originally asked for the school
 
         12       principal, who was not there, and my host was
 
         13       the -- the assistant principal of the
 
         14       high school -- I got the impression that -- to
 
         15       the contrary, there wasn't an issue of quality,
 
         16       that the impression that I got was exactly the
 
         17       opposite, that the quality was enormously high,
 
         18       and the satisfaction among the students and the
 
         19       parents was exceptional.
 
         20            DR. SAWYER:  May I ask you, sir, when you
 
         21       were there.
 
         22            TREASURER NELSON:  October.
 
         23            DR. SAWYER:  Of this school year.
 
         24            TREASURER NELSON:  October.  Last October.
 
         25            DR. SAWYER:  Immediately past.
 
 
 
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          1            TREASURER NELSON:  This is 1997.
 
          2            DR. SAWYER:  Okay.
 
          3            TREASURER NELSON:  Last October.
 
          4            DR. SAWYER:  Okay.  Well, the results of
 
          5       the -- the first year of the Academy did,
 
          6       in fact, seem to have some very successful
 
          7       statistics.  The information that we're
 
          8       receiving now about the Academy indicates that
 
          9       that is no longer true.
 
         10            TREASURER NELSON:  Well, I certainly didn't
 
         11       get that impression.
 
         12            But the issue I guess, Mr. Chairman, before
 
         13       us is the question of the interpretation of the
 
         14       statute?  Is that the issue?
 
         15            COMMISSIONER BROGAN:  That appears to be
 
         16       the case.
 
         17            Secretary Mortham, and then
 
         18       General Milligan.
 
         19            SECRETARY MORTHAM:  Well, it seems to me
 
         20       that we're kind of dancing on the head of a pin,
 
         21       and I do think that it probably is a question of
 
         22       technicalities in the law.
 
         23            I would certainly see this as a school
 
         24       within a school.  And it would -- and it would
 
         25       appear to me that legislative intent was is that
 
 
 
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          1       there could, in fact, be a school within a
 
          2       school.
 
          3            Now, first of all, am I correct in that
 
          4       assumption?
 
          5            Commissioner Brogan.
 
          6            COMMISSIONER BROGAN:  We've been wrestling
 
          7       with that same issue.  The legal department
 
          8       rendered an opinion that, I guess, to summarize,
 
          9       uses my word, not theirs, technicality that,
 
         10       indeed, there is no official and legislative
 
         11       terminology referencing a school within a
 
         12       school.
 
         13            And that has plagued us in this thing from
 
         14       the very beginning, that it's -- it's
 
         15       interesting that while so many terms have been
 
         16       juxtaposed, you've got school within a school
 
         17       and program and academy, there does not seem to
 
         18       exist any legislative language that would
 
         19       guarantee the term school within a school
 
         20       exists.  Thus, gives us our dilemma.
 
         21            SECRETARY MORTHAM:  So then on that basis,
 
         22       I guess the question is:  Is could, in fact,
 
         23       this be chartered as a school within a school?
 
         24            Just on that question, not even going to
 
         25       the -- to the question of the number of votes
 
 
 
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          1       and who voted how -- which way, and -- and
 
          2       so forth.
 
          3            Because, frankly, I believe that this
 
          4       particular group that's trying to put this
 
          5       together has a very good idea.  And it --
 
          6       I believe that there would be very strong
 
          7       support from a certain sector, obviously, the
 
          8       parents and the students that -- that go to this
 
          9       particular school.  And I think that we ought to
 
         10       look to give them every opportunity to succeed.
 
         11            The question I would have is, yes,
 
         12       number one, should all the teachers and all the
 
         13       parents in that school participate.  And the
 
         14       fact that somebody didn't vote really isn't our
 
         15       problem.
 
         16            As the chief elections officer in this
 
         17       state, 50 percent of the people don't vote in
 
         18       any election.  And so, you know, that's just
 
         19       kind of a fact of life.
 
         20            I do have a real problem with the fact that
 
         21       80 percent of the teachers in that school would
 
         22       be opposed.  Because from my vantage point, I
 
         23       would question why that is.  Because it would
 
         24       seem to me that they should be, in fact, looking
 
         25       out for the greater good of those students in
 
 
 
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          1       that program as well.
 
          2            And I think that it's an educational
 
          3       process, and I think that, you know, if the
 
          4       people are advocating for the program and
 
          5       everybody's working together, they'll make it
 
          6       happen.
 
          7            But I would really question in this
 
          8       particular circumstance whether or not the
 
          9       statutes are, in fact, written to allow this
 
         10       charter to exist.
 
         11            COMMISSIONER BROGAN:  I would answer
 
         12       that -- and I'm not an attorney -- but I would
 
         13       answer that this way:  That -- you mentioned
 
         14       we're dancing on the head of a pin.  That's a
 
         15       pretty accurate portrayal.
 
         16            If a school system, I believe -- and I will
 
         17       point back to the six original charter schools
 
         18       that were established immediately after the
 
         19       legislation was passed, signed into law in July,
 
         20       and by the end of August, six up and running.
 
         21            And I do respect Brevard County.  They
 
         22       do -- or about to, I believe, approve two other
 
         23       charter schools.  So I don't think it's a case
 
         24       of a school system that doesn't want to see
 
         25       charter schools flourish, or at least begin.
 
 
 
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          1            I am still in a quandary, however, as to
 
          2       the technicality, recognizing that I believe if
 
          3       the school system made the decision that it
 
          4       appears as though -- not in counsel's opinion.
 
          5       I understand.  He made an emphatic case that
 
          6       there is not school within a school here.
 
          7            But it's one of those issues where, I think
 
          8       if the system decided that it would acknowledge
 
          9       the presence of a school within a school, we
 
         10       wouldn't be in the position we're in.
 
         11            They have strong feelings that it is not.
 
         12       We cannot find any strong, solid legislative
 
         13       language outside of spirit and outside of some
 
         14       acknowledgment of the terminology in a variety
 
         15       of other places to support the fact that there
 
         16       is, indeed, the technical school within a school
 
         17       legislation that has been discussed.
 
         18            General Milligan?
 
         19            COMPTROLLER MILLIGAN:  Just a clarification
 
         20       for me, please.  The Academy, as I understand
 
         21       it, can draw upon all students from
 
         22       Brevard County.  Not just from the
 
         23       Cocoa High School.
 
         24            Are they restricted only to Cocoa
 
         25       High School?  I heard an inference that the
 
 
 
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          1       Academy could draw from other than --
 
          2            COMMISSIONER BROGAN:  Superintendent --
 
          3            COMPTROLLER MILLIGAN:  -- Cocoa High
 
          4       School.
 
          5            COMMISSIONER BROGAN:  Someone.
 
          6            DR. PENN:  May I?
 
          7            COMMISSIONER BROGAN:  Dr. Penn.
 
          8            And Superintendent, why --
 
          9       Superintendent Sawyer?
 
         10            COMPTROLLER MILLIGAN:  I think the
 
         11       Superintendent was the one that made the
 
         12       comment.
 
         13            COMMISSIONER BROGAN:  Yeah.  And --
 
         14            COMPTROLLER MILLIGAN:  And --
 
         15            COMMISSIONER BROGAN:  -- since you're
 
         16       probably going to be called on to answer anyway,
 
         17       you might as well sort of hang near the podium
 
         18       here.
 
         19            DR. PENN:  The charter school will draw
 
         20       from the entire Brevard County school -- the --
 
         21       all of the student body from all of
 
         22       Brevard County.
 
         23            COMMISSIONER BROGAN:  Do they now?
 
         24            DR. PENN:  Yes, they do.  Yes, we do.
 
         25            COMPTROLLER MILLIGAN:  You do now.
 
 
 
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          1            DR. PENN:  We do now.  Yes.
 
          2            COMPTROLLER MILLIGAN:  So really it's
 
          3       better to say you are not a school within a
 
          4       school, but you are a school within
 
          5       Brevard County.
 
          6            DR. PENN:  That's correct.
 
          7            COMPTROLLER MILLIGAN:  Thank you.
 
          8            TREASURER NELSON:  May I -- staff has just
 
          9       shown me another part of the statutes here in
 
         10       which, since we're dealing in an area of
 
         11       ambiguity in the law, under job related
 
         12       vocational instruction, legislative intent, it
 
         13       says:
 
         14            A program may be called a school, but need
 
         15       not have a separate campus.  And then it goes on
 
         16       to say:  It must be open to any student in the
 
         17       school district.
 
         18            So I think there's --
 
         19            COMPTROLLER MILLIGAN:  Well, I'm ready to
 
         20       get off the head of the pin here.  It's,
 
         21       you know, getting into the afternoon.  And I --
 
         22       and I --
 
         23            COMMISSIONER BROGAN:  Storm that beachhead,
 
         24       General.
 
         25            COMPTROLLER MILLIGAN:  -- I would make a
 
 
 
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          1       motion that we accept the appeal, and return it
 
          2       to Brevard County with a recommendation that
 
          3       they give very serious consideration to the
 
          4       students that are involved in this program, and
 
          5       the importance of it to the Brevard County as a
 
          6       school within Brevard County.
 
          7            COMMISSIONER BROGAN:  We have a motion.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          9            COMMISSIONER BROGAN:  We have a second.
 
         10            Any further discussion?
 
         11            TREASURER NELSON:  Just --
 
         12            COMMISSIONER BROGAN:  Secretary?
 
         13            SECRETARY MORTHAM:  Yeah.
 
         14            TREASURER NELSON:  Sorry.
 
         15            SECRETARY MORTHAM:  I feel like I have to
 
         16       say something here.  I think that there is
 
         17       absolutely zero question in my mind that this
 
         18       program is a good one.
 
         19            And, frankly, the fact that they are
 
         20       approving two charter schools -- or supposedly,
 
         21       because I don't think you ever ought to count
 
         22       your votes before you take them -- but that
 
         23       these votes are coming up on other charters.
 
         24            I think that, you know, they obviously are
 
         25       open-minded to that position.  But from my
 
 
 
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          1       vantage point, I think that people are elected
 
          2       at the local level to deal with their local
 
          3       constituencies on these sort of issues.
 
          4            And for that reason, I think that, yes, we
 
          5       are the appeals process, and we need to send
 
          6       our -- our recommendations back.
 
          7            And my recommendation to them is that, yes,
 
          8       they should be open-minded.  But at the same
 
          9       time, they're the ones that have to deal
 
         10       firsthand with those constituencies.
 
         11            And if, in fact, those programs don't work,
 
         12       they're the ones that are ultimately going to be
 
         13       held accountable.
 
         14            So for that reason, I'm going to be voting
 
         15       against the proposal.
 
         16            COMMISSIONER BROGAN:  General?
 
         17            ATTORNEY GENERAL BUTTERWORTH:  If I
 
         18       understand, General Milligan, you're saying that
 
         19       you -- that you want to vote favorable for the
 
         20       charter school, with recommendation going
 
         21       back --
 
         22            COMPTROLLER MILLIGAN:  Well, we're not in a
 
         23       position to vote one way or the other.  We're
 
         24       accepting their appeal.
 
         25            And with that acceptance, we are returning
 
 
 
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          1       to them the fact that we support the position
 
          2       presented by the charter school, a proposed
 
          3       charter school, and asking them to look at it
 
          4       again.
 
          5            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
          6            COMPTROLLER MILLIGAN:  And it has my
 
          7       enthusiastic support.
 
          8            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
          9            COMMISSIONER BROGAN:  And I will --
 
         10            ATTORNEY GENERAL BUTTERWORTH:  I'd just
 
         11       like to make clear -- make sure how enthusiastic
 
         12       our support is here.
 
         13            COMMISSIONER BROGAN:  I will -- I will
 
         14       concur.  And I will cite the same caution.
 
         15            Although I'm going to vote in the
 
         16       affirmative, I want to cite the same caution as
 
         17       did Secretary Mortham, that ultimately the
 
         18       school district, just as we did, discussed in
 
         19       the first charter appeal, is ultimately
 
         20       responsible for issues of quality, versus lack
 
         21       of quality.
 
         22            And as we do, if we do, send this back with
 
         23       our favorable recommendation that it be
 
         24       considered again, I think the issue of quality,
 
         25       which was not a part of the denial in its
 
 
 
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          1       original sense, we really centered on the issue
 
          2       of school within a school and the technical
 
          3       aspects that surround school within a school,
 
          4       that that always should be a consideration, and
 
          5       I've heard it voiced more than once here today.
 
          6            General.
 
          7            COMPTROLLER MILLIGAN:  Well, I'm going to
 
          8       argue again that the Academy is servicing the
 
          9       county of Brevard.  It is not servicing only
 
         10       Cocoa High School.  And it is -- happens to be
 
         11       on the property of Cocoa High School, but it's
 
         12       serving the entire community.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  For the
 
         14       record, I'll just -- I'd like to reiterate the
 
         15       same thing, I cannot see this really being a
 
         16       true school within a school.
 
         17            And I think the -- this is eventually going
 
         18       to be resolved by a hearing officer if the
 
         19       School Board does not concur with us.  So it's
 
         20       good to get this on the record.
 
         21            COMMISSIONER BROGAN:  All right.  We have a
 
         22       motion and a second, I believe.
 
         23            Any further discussion?
 
         24            All those in favor, please signify by
 
         25       saying aye.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
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                                                              252
 
          1            THE CABINET:  Aye.
 
          2            COMMISSIONER BROGAN:  Opposed?
 
          3            SECRETARY MORTHAM:  No.
 
          4            COMMISSIONER BROGAN:  Motion passes.
 
          5            And again, before we break, and I give the
 
          6       Chair back to the Secretary, I want to thank all
 
          7       the people who came to Tallahassee, all those
 
          8       who've worked on these issues.
 
          9            And especially thank the Cabinet Aides and
 
         10       the members of the State Board of Education.  I
 
         11       know we're on new ground here, and I acknowledge
 
         12       that fact.
 
         13            We will see more of these, no doubt.
 
         14       I think they will become a regular part of our
 
         15       pattern, just as we deal with other
 
         16       quasi-judicial issues in the future.
 
         17            And we appreciate your thoroughness as
 
         18       you've examined these with your staff.
 
         19            DR. BEDFORD:  That concludes -- that
 
         20       concludes --
 
         21            COMMISSIONER BROGAN:  That concludes State
 
         22       Board of agenda.
 
         23            SECRETARY MORTHAM:  Thank you,
 
         24       Commissioner Brogan.  A job very well done on
 
         25       difficult --
 
 
 
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                                  March 25, 1997
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          1            TREASURER NELSON:  Madam Chairman, is this
 
          2       our longest Cabinet meeting?
 
          3            SECRETARY MORTHAM:  I think it is.
 
          4            Just -- last item.  Next Cabinet meeting
 
          5       will be April the 15th.
 
          6            And if there's no further business, we're
 
          7       adjourned.
 
          8            (The State Board of Education Agenda was
 
          9       concluded.)
 
         10                             *
 
         11            (The Cabinet meeting was concluded at
 
         12       2:17 p.m.)
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                                  March 25, 1997
                                                              254
 
          1                 CERTIFICATE OF REPORTER
 
          2
 
          3
 
          4   STATE OF FLORIDA:
 
          5   COUNTY OF LEON:
 
          6            I, LAURIE L. GILBERT, do hereby certify that
 
          7   the foregoing proceedings were taken before me at the
 
          8   time and place therein designated; that my shorthand
 
          9   notes were thereafter translated; and the foregoing
 
         10   pages numbered 1 through 253 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 7TH day of APRIL, 1997.
 
         17
 
         18
 
         19                           LAURIE L. GILBERT, RPR, CCR
                                      100 Salem Court
         20                           Tallahassee, Florida 32301
                                      (904) 878-2221
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.