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T H E C A B I N E T
S T A T E O F F L O R I D A
Representing:
STATE BOARD OF ADMINISTRATION DIVISION OF BOND FINANCE STATE BOARD OF EDUCATION ADMINISTRATION COMMISSION BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
The above agencies came to be heard before THE FLORIDA CABINET, Honorable Governor Bush presiding, in the Cabinet Meeting Room, LL-03, The Capitol, Tallahassee, Florida, on Tuesday, April 13, 1999, commencing at approximately 9:10 a.m.
Reported by:
LAURIE L. GILBERT Registered Professional Reporter Certified Court Reporter Certified Realtime Reporter Registered Merit Reporter Notary Public in and for the State of Florida at Large
2 APPEARANCES:
Representing the Florida Cabinet:
JEB BUSH Governor
BOB CRAWFORD Commissioner of Agriculture
BOB MILLIGAN Comptroller
KATHERINE HARRIS Secretary of State
BOB BUTTERWORTH Attorney General
BILL NELSON Treasurer
TOM GALLAGHER Commissioner of Education
* 3 April 13, 1999
I N D E X
ITEM ACTION PAGE
STATE BOARD OF ADMINISTRATION: (Presented by Tom Herndon, Executive Director)
1 Approved 8 2 Approved 8 3(A) and (B) Deferred 9 4 Approved 21 5 Approved 21
DIVISION OF BOND FINANCE: (Presented by J. Ben Watkins, III, Director)
1 Approved 23 2 Approved 23 3 Approved 24 4 Approved 24 5 Approved 25, 28
STATE BOARD OF EDUCATION: (Presented by Wayne V. Pierson, Deputy Commissioner)
1 Approved 29 2 Approved 29 3 For Information Only 29 4 Approved 39 5 Approved 39
ADMINISTRATION COMMISSION: (Presented by Donna Arduin, Secretary)
1 Approved 5 2 Approved 5 3 Approved 6 4 Approved 6
4 April 13, 1999
I N D E X (Continued)
ITEM ACTION PAGE
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND: (Presented David B. Struhs, Secretary)
1 Approved 40 2 Approved 40 3 Approved 40 4 Approved 41 5 Approved 41 6 Approved 42 7 Approved 45 Substitute 8 Approved 45 9 Approved 47 10 Approved 48 Substitute 11 Deferred 48 Substitute 12 Approved 49 13 Approved 51 14 Withdrawn 58
CERTIFICATE OF REPORTER 59
*
ADMINISTRATION COMMISSION 5 April 13, 1999 P R O C E E D I N G S (The agenda items commenced at 9:40 a.m.) GOVERNOR BUSH: If we could start with the Administration Commission. (Discussion off the record.) MS. ARDUIN: Thank you, Governor, Cabinet. The first item on our agenda, I recommend approval of the minutes for the meeting held March 23rd, 1999. GOVERNOR BUSH: Is there a motion? COMMISSIONER CRAWFORD: Motion. GOVERNOR BUSH: Second? COMPTROLLER MILLIGAN: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MS. ARDUIN: Second item, I recommend approval of transfer of general revenue appropriations for the Department of Corrections. GOVERNOR BUSH: Is there a motion? COMMISSIONER CRAWFORD: Motion. COMMISSIONER GALLAGHER: Motion. GOVERNOR BUSH: Second? COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Without objection, it's ADMINISTRATION COMMISSION 6 April 13, 1999 approved. On this, we're hopeful that we will be able to get the Legislature to deal with this issue -- MS. ARDUIN: For the upcoming year. GOVERNOR BUSH: Yeah. This relates to the AIDS healthcare costs. And we're trying to formalize this, so that we won't come back to the Cabinet regularly with transfers of this kind of money. COMPTROLLER MILLIGAN: Good. MS. ARDUIN: The third item, I recommend approval of transfer of general revenue appropriations for the Department of State. COMMISSIONER CRAWFORD: Motion. COMPTROLLER MILLIGAN: Second. COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MS. ARDUIN: The final item, I recommend approval of transfer of general revenue appropriations for the Department of Education. COMMISSIONER CRAWFORD: Motion. COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Moved and seconded. ADMINISTRATION COMMISSION 7 April 13, 1999 Without objection, it's approved. Thank you. MS. ARDUIN: Thank you. (The Administration Commission Agenda was concluded.) * STATE BOARD OF ADMINISTRATION 8 April 13, 1999 GOVERNOR BUSH: Let's see. State Board of Administration. MR. HERNDON: Item Number 1 is approval of the minutes of the meeting held on March 23rd, 1999. TREASURER NELSON: I move it. COMPTROLLER MILLIGAN: And second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. HERNDON: Item Number 2 is approval of a fiscal sufficiency in an amount not exceeding 300 million dollars, State of Florida Department of Environmental Protection Preservation 2000 Revenue Bonds, Series 1999A. TREASURER NELSON: Move it. COMPTROLLER MILLIGAN: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. HERNDON: Governor, on Items 3(A) and (B), we would recommend that those be deferred until the meeting of May 11th. Both of those are potentially subject to some legislation that's going through the Legislature right now. Rather than preempt that legislative issue, we would recommend STATE BOARD OF ADMINISTRATION 9 April 13, 1999 those be deferred. TREASURER NELSON: And I'll move the deferral. COMPTROLLER MILLIGAN: And I'll second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. HERNDON: Item Number 4 is back before you again, having to do with the recommendations of the Unfunded Actuarial Liability Working Group. As you'll recall, at prior meetings there was quite a bit of discussion about the role that the Trustees should play relative to establishing contribution rates and the process by which contribution rates for the FRS were determined. Pursuant to your direction, we did obtain legal opinions from our fiduciary counsel. All of those have been provided to you. And I believe this recommendation, as is now phrased, appropriately captures the essence of that legal opinion, which essentially said that as it relates to the contribution rate itself, it's not necessary that the fiduciaries in the exercise of their responsibility approve the STATE BOARD OF ADMINISTRATION 10 April 13, 1999 rate. But it is appropriate that the fiduciaries in the course of their due process requirements review and concur, or not concur, in the process by which the contribution rates were adopted. And to some extent, that's also contingent on whether or not the Legislature creates this session a Contribution Rate Estimating Conference. That recommendation is also going before the Legislature as we speak. And so that would be the process that you would address in future years. So there -- there would actually be two items, if you will: One would be to approve this amended recommendation, which was originally recommendation number 11; and then to approve the original recommendation, which is to establish the rate stabilization fund, which we had deferred as part of this overall packet. But I don't believe there was any discussion on that particular item. COMPTROLLER MILLIGAN: If I -- if I understand you, Tom, you're looking for approval of the recommendations from the STATE BOARD OF ADMINISTRATION 11 April 13, 1999 Working Group, and as modified by your statements just now. MR. HERNDON: Exactly, General. COMPTROLLER MILLIGAN: And -- MR. HERNDON: That's correct. COMPTROLLER MILLIGAN: -- and I certainly approve the Working Group recommendations, and the staff recommendation, which does provide concurrence in the process. MR. HERNDON: Correct. GOVERNOR BUSH: Yeah. Is there a motion? COMPTROLLER MILLIGAN: I move it. TREASURER NELSON: And I'll second. And, Governor, let me say that I appreciate the Board's indulgence over this issue of what is our fiduciary duty with regard to something that's as important as this. And apparently you have the sufficient legal counsel that indicates that our fiduciary duty is met by this review that we're approving today. Now, there was a corollary. This is the stabilization fund, and this is a review and comment on the actuarial assumptions in the -- STATE BOARD OF ADMINISTRATION 12 April 13, 1999 determining the contribution rate. MR. HERNDON: Right. TREASURER NELSON: What is our fiduciary duty with regard to the other item that is now going through the Legislature, which is the question of defined benefit or defined contribution? Could you address that for us? MR. HERNDON: Well, to my knowledge, Commissioner, the -- neither our counsel or the Board has ever taken any position on whether or not the Trustees, as a matter of fiduciary responsibility, should review and comment, concur, or approve -- taking it kind of in sequence there -- proposed legislation. We have, throughout the course of the legislative session, and prior to the legislative session, tried to keep your offices informed about what appear to be some of the key elements and key provisions in the legislation. It would be my expectation, quite frankly, that your responsibility follows, to some extent, that of the fiduciary counsel's advice in the legal opinions that we obtained. It's a STATE BOARD OF ADMINISTRATION 13 April 13, 1999 little bit different situation. But I think you have a responsibility as a fiduciary to stay abreast of the legislation, review it as need be, and if you see a situation that poses a significant or material concern to the stability of the pension fund, to the assets of the pension fund, to the contributions flowing into the pension fund that would create a problem in the future, then it would be, I think, incumbent on you to express that point of view to -- to the Legislature. But in the absence of that kind of material concern, so to speak, I don't think that the -- (Commissioner Crawford exited the room.) MR. HERNDON: -- fiduciary counsel would -- would contemplate that you're required to opine on -- on the legislation. TREASURER NELSON: Would we be required to opine on the legislation if, as some have suggested has been the case in other states where defined contribution was initiated, that there was some financial debacle in those states, would we as the three Trustees have a fiduciary duty to raise that in this forum of STATE BOARD OF ADMINISTRATION 14 April 13, 1999 the SBA meeting, while, in fact, the Legislature is in session contemplating this? MR. HERNDON: Well, again, I think each of you wear different hats. But putting on the hat of the SBA Trustee, your responsibility is as a fiduciary to the Florida Retirement System, and to the beneficiaries. If that financial debacle, as you describe it, were one that was likely to impact the Florida Retirement System, then I think clearly it is a responsibility of the Trustees to -- to raise a question. Alternatively, for example, if the Governor in his capacity as Chief Budget Officer were to see a proposal that impacted the State budget in a more broad sense, I don't think that's necessarily a Trustee responsibility, but it would clearly be his responsibility as the Chief Budget Officer, and as the Chief Executive of the State. And that's a -- (Commissioner Crawford entered the room.) MR. HERNDON: -- I think the distinction that the fiduciary counsel has tried to draw with us. Your responsibility is very STATE BOARD OF ADMINISTRATION 15 April 13, 1999 substantial, but it only relates to the FRS. In a different capacity, the Governor has responsibility -- or the broader nature. TREASURER NELSON: Well -- COMPTROLLER MILLIGAN: If I -- go ahead. TREASURER NELSON: -- then -- COMPTROLLER MILLIGAN: Well, I -- I was -- TREASURER NELSON: Go ahead. COMPTROLLER MILLIGAN: -- going to raise an issue on our responsibility in terms of the contribution rate, which we have discussed informally -- MR. HERNDON: Right. COMPTROLLER MILLIGAN: -- which is clearly an issue that the Trustees ought to be concerned about. And I believe you have expressed, at least informally, our concerns about being aware that the contribution rate will -- MR. HERNDON: Yes. COMPTROLLER MILLIGAN: -- probably will have to go up in the future if we change the retirement system in this state. And I don't know whether we need to make a formal statement on that, but I do believe we STATE BOARD OF ADMINISTRATION 16 April 13, 1999 at least ought to acknowledge that the contribution rate will go up. GOVERNOR BUSH: Are you saying if we move to a -- a new -- away from defined -- COMPTROLLER MILLIGAN: Yes, sir. GOVERNOR BUSH: I'm not aware of that being the -- being the case. So -- MR. HERNDON: Well, Governor, if I might. I mean, just to your point, I think that -- that kind of very neatly crystallizes the issue in some respects. Let's say, hypothetically, that the Legislature were to pass a bill that does require a substantial increase in the contribution rate, or in some manner invades the corpus of the fund to extract money as a substitute, as a subsidy for higher contribution rates, then I think clearly it is a responsibility of the Trustees to make a statement, argue the case. On the other hand, if legislation were passing that were cost neutral, that did not have an impact on the FRS, did not have a -- a likely impact on higher contribution rates, then your intervention would not necessarily be STATE BOARD OF ADMINISTRATION 17 April 13, 1999 required. Right now we have a bill in front of the Senate, Government Oversight Committee -- well, it's passed out of the Senate Government Oversight Committee, it's up in Senate Fiscal Responsibility Council tomorrow afternoon. It does have a fiscal impact. The committee is very well aware of that. We've met with them a couple of times and expressed that concern. In the House side, there's been no hearings, no discussion, no anything at this point. So it's a somewhat unclear horizon out there at the moment. And that's why we haven't brought anything back to you. GOVERNOR BUSH: Well, we -- we have one more Cabinet meeting before the end of the legislative session. MR. HERNDON: Yes, sir. GOVERNOR BUSH: That's correct? Would it not be appropriate to have -- if -- if it's -- if something is moving, to have a -- a full briefing on that, and in the interim to be able to just keep us apprised of -- of this? I've made it clear -- and I'm not sure STATE BOARD OF ADMINISTRATION 18 April 13, 1999 which hat I'm wearing when I say this, because I've got two of them apparently -- that any pension -- any change in the pension system because of its impact, not only on our budget, but on all the retirees, and people who are serving, should be revenue neutral, period. And -- and I've made it quite clear. So, again, I'm not sure in which capacity I'm saying this. But this is something that, given the reduction and the contribution rate this year, for all sorts of very good reasons, just -- I think we need to be very cautious about how we move forward. So perhaps, Tom, you could keep us apprised from your perspective -- MR. HERNDON: Yes. GOVERNOR BUSH: -- on how these bills -- what impact they might have. There is a way to make it revenue neutral where you don't ensure a higher contribution rate in the -- in the out years. And that would be if there was to be a change, the way that I would hope it would be done. Yes. TREASURER NELSON: Governor, given the fact STATE BOARD OF ADMINISTRATION 19 April 13, 1999 that two Cabinet meetings ago, we had a good bit of discussion over this issue of defined benefit and defined contribution, and there was a sharp division -- GOVERNOR BUSH: Right. TREASURER NELSON: -- with the testimony that was presented to us, and given the fact that Tom says that the legislation on defined contribution, departing from the present defined benefit plan, is moving in the Senate and not moving in the House, I -- I welcome, Governor, your suggestion to raise this at the next meeting. But that next meeting will be the last Tuesday of the last week of the session. And so in an abundance of caution, I want to raise my concern trying to meet this member's fiduciary responsibility of a cautious approach for the Legislature in -- in suddenly radically switching to a different system. I don't know that that has any kind of legal standing. But I feel like that given the sharp division of opinion that was expressed to us, that I need to raise that note of caution. GOVERNOR BUSH: It's been duly noted. STATE BOARD OF ADMINISTRATION 20 April 13, 1999 MR. HERNDON: And certainly, Governor, we would anticipate, as in -- in fact, we've -- as I said, we've -- we've kept your offices informed as -- as kind of significant events occurred in the legislative process. Tomorrow afternoon is the most notable one that is scheduled to occur. And right after that, and we have a bill, we'll again communicate with your offices with -- GOVERNOR BUSH: Is that the Senate? MR. HERNDON: Senate Fiscal Policy Council. And -- and we'll have a fiscal impact, at least as best you can estimate it, and so forth, that we'll share with your offices. And then to -- to the extent that you wish to provide us with any direction, we can convey that message to the Legislature. But I've heard your messages pretty clearly. So we will continue to do that. COMPTROLLER MILLIGAN: No? Good. GOVERNOR BUSH: Well, there's a -- this is a -- is there a motion here that we need to adopt? COMPTROLLER MILLIGAN: Well, we have, in fact, I think, made the motion -- STATE BOARD OF ADMINISTRATION 21 April 13, 1999 GOVERNOR BUSH: This is -- COMPTROLLER MILLIGAN: -- and seconded it. GOVERNOR BUSH: All right. Then -- COMPTROLLER MILLIGAN: If we haven't -- GOVERNOR BUSH: -- we have a motion -- COMPTROLLER MILLIGAN: -- we can -- GOVERNOR BUSH: -- it passes. COMPTROLLER MILLIGAN: -- do it again to -- GOVERNOR BUSH: We just did it. COMPTROLLER MILLIGAN: But I believe we did. MR. HERNDON: Item Number 5, the final item, is the investment performance and fund balance analysis for the month of February 1999. GOVERNOR BUSH: Is there a motion? COMPTROLLER MILLIGAN: A motion. GOVERNOR BUSH: Second? TREASURER NELSON: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. HERNDON: That completes the agenda. Thank you. GOVERNOR BUSH: Thank you. STATE BOARD OF ADMINISTRATION 22 April 13, 1999 (The State Board of Administration Agenda was concluded.) * DIVISION OF BOND FINANCE 23 April 13, 1999 GOVERNOR BUSH: Division of Bond Finance. MR. WATKINS: Item Number 1 is approval of the minutes of the March 9th meeting. GOVERNOR BUSH: Motion? COMMISSIONER CRAWFORD: Motion. COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. WATKINS: Item Number 2 is a resolution authorizing the competitive sale of 300 million dollars in P-2000 Revenue Bonds -- COMMISSIONER GALLAGHER: Motion. MR. WATKINS: -- for Department of Environmental -- COMPTROLLER MILLIGAN: Second. MR. WATKINS: -- Protection. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. This is the ninth -- MR. WATKINS: This is the ninth installment, yes, sir. Item Number 3 is a resolution selecting bond counsel based upon the recommendation of a selection committee established to review RFPs. COMMISSIONER GALLAGHER: Motion. DIVISION OF BOND FINANCE 24 April 13, 1999 COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. WATKINS: Item Number 4 is a report of award on the consolidated equipment financing program for State agencies administered by the Comptroller's Office. The Banc One Leasing Corporation was the low bidder based on pricing proposals received. COMMISSIONER GALLAGHER: Motion. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. WATKINS: Item Number 5 is a report of award on the competitive sale of two hundred and seventy-nine million three hundred fifteen thousand dollars of right-of-way bonds for Department of Transportation. The issue consisted of two separate components, a hundred and fifty million dollars in new money, and a hundred and twenty-nine million three hundred and fifteen thousand of refunding bonds. The refunding bonds resulted in gross savings of approximately nine point nine million, and present value savings of DIVISION OF BOND FINANCE 25 April 13, 1999 approximately five point seven million. COMMISSIONER GALLAGHER: Motion. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection -- COMPTROLLER MILLIGAN: Excuse me. Is that -- GOVERNOR BUSH: -- it's approved. Yes. COMPTROLLER MILLIGAN: Ben, you were going to do a -- an analysis of the bond situation in the state of Florida, and provide it to us. I know you did a draft one. And how are you coming on finishing that up? MR. WATKINS: We are currently working on including the various legislative proposals, and the budgetary impact on that. And once we have a lay of the land in terms of which programs have passed, and which ones haven't, that'll be completed, and I'll bring that back to you. COMPTROLLER MILLIGAN: Okay. Thanks. MR. WATKINS: Yes. GOVERNOR BUSH: This will be full review of kind of an historical -- similar to the charts DIVISION OF BOND FINANCE 26 April 13, 1999 that you showed me in our meeting? MR. WATKINS: Yes, sir. GOVERNOR BUSH: I -- I really would encourage us bringing a little more awareness to the level of indebtedness that -- that we take on. I mean, we just took on -- COMPTROLLER MILLIGAN: That's right. GOVERNOR BUSH: That took about 10 minutes -- 10 seconds, and we just took on six hundred million dollars of debt. It's just -- I -- it's so big, it doesn't have relevance. I think we kind of lose sight of the -- the scope and size of the debt indebtedness and the growth of it. And I think it would be important to use this forum to maybe increase awareness for other policymakers as well. So I -- I would encourage it. COMPTROLLER MILLIGAN: Yes. COMMISSIONER GALLAGHER: And al-- although it is -- COMPTROLLER MILLIGAN: Concur -- COMMISSIONER GALLAGHER: -- large numbers, it's -- COMPTROLLER MILLIGAN: -- with you DIVISION OF BOND FINANCE 27 April 13, 1999 100 percent. COMMISSIONER GALLAGHER: -- it's -- it's got to be kept relative as to how fast the state's growing; the needs for roads; the needs for environmental protection of land, while we can still buy it -- GOVERNOR BUSH: I understand. COMMISSIONER GALLAGHER: -- needs for education -- GOVERNOR BUSH: They were -- they said the exact same thing in New York City 20 years ago, you know. So we just -- there's a balance here. And I've just noticed in my job that there's a lot of people that have solutions to problems that are pressing problems for the State. And rather than fund it through general revenue, there's an actual inclination to find a bondable source of money, and, you know, off we go. So I'm looking forward to the report. MR. WATKINS: We will develop a comprehensive report, and -- and get back with you on that subject. I hear your message loud and clear. DIVISION OF BOND FINANCE 28 April 13, 1999 GOVERNOR BUSH: There was a motion and a second. Well, there wasn't a second. Is -- COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: -- there a second? Without objection, it's approved. MR. WATKINS: Thank you. GOVERNOR BUSH: Thank you. (The Division of Bond Finance Agenda was concluded.) * STATE BOARD OF EDUCATION 29 April 13, 1999 GOVERNOR BUSH: State Board of Education. COMMISSIONER GALLAGHER: Motion on the minutes. GOVERNOR BUSH: Second. Moved and seconded. Without objection, it's approved. Item Number 2. MR. PIERSON: Item 2 is 1999-2000 Limited Access Competitive Grant Program. COMPTROLLER MILLIGAN: Move it. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. PIERSON: Item 3 is Stop Day, Stop the Violence in Schools. Commissioner Gallagher has an introduction. COMMISSIONER GALLAGHER: Yes, I do. Governor and -- and members of the State Board, this morning I have the pleasure to introduce to you Representative Frederica Wilson. In an effort to combat violence in schools, Representative Wilson and the Miami-Dade County Public School Board initiated a Stop Day, Enough is Enough, in 1994. This observance STATE BOARD OF EDUCATION 30 April 13, 1999 allowed students and teachers to educate each other by expressing solutions to the violence that is present today. All schools across the state of Florida have been asked to pause for a moment today, beginning at 10:30. This observance will enable teachers and students to take time out to focus on finding solutions to the problems of crime and violence. Safe schools are essential to ensuring the well-being and safety of our children, and the quality of their education. We, as the State Board of Education, in partnership with district school boards, commit ourselves to promoting and fostering standards of nonviolence, problem solving behaviors. And so I'd like to introduce Representative Frederica Wilson, who was on the School Board in Dade County when she started this. GOVERNOR BUSH: Representative Wilson. Good morning. REPRESENTATIVE WILSON: Good morning. Good morning. I have a tendency to be a little long winded, so I made some notes to spare you this STATE BOARD OF EDUCATION 31 April 13, 1999 morning. But -- GOVERNOR BUSH: Thank you. REPRESENTATIVE WILSON: -- this is a great day in the state of Florida. Five years ago, I founded Stop Day in Miami-Dade County when I was a member of the Dade County School Board. And Stop Day was envisioned as a day to empower children to take a stand against violence, and to remember those children we have lost through violence, and those that have been affected by violence. And many of us today wear white -- and I appreciate that you wore your white today -- in honor of the hundreds of children lost in our state because of an unsafe environment. Today at 10:30 a.m., children all across Florida will ban together in a united front and declare stop the violence, enough is enough. Our children will wear white, they will have peace marches, release doves, feeder patterns will join together and have peace rallies and memorial services. We cannot ignore violence as it affects children. We must talk about it, discuss it STATE BOARD OF EDUCATION 32 April 13, 1999 with children, and constantly devise solutions. Children in our schools must be allowed to speak out on violence, and keep administrators abreast of situations needing attention. They know who the bullies are, they know who the druggies are, they know who's recruiting new members for gangs. They know the hot spots and the cold spots and the trouble spots, and this is the day schools will hear them, listen to them, and work with them in finding solutions. Last Stop Day in the state of Florida was the same exact day of the Jonesboro, Arkansas, school massacre. Ironically enough, both events shared the first -- the front page of the Miami Herald. That news coverage tragically drove home our point. So today is a very significant day, to let our children know that violence is stupid, violence is crazy, violence maims, violence destroys families, violence kills, and violence has no place in a civilized society. And certainly it has no place in our schools. We send the message that schools are sacred places of study, like a church or a temple, and STATE BOARD OF EDUCATION 33 April 13, 1999 we must constantly, constantly continue to sensitize our children to the fact. And I'm going to close before we see our telecast with a prayer, if that's okay -- GOVERNOR BUSH: All right. REPRESENTATIVE WILSON: -- in this setting. GOVERNOR BUSH: Do it. REPRESENTATIVE WILSON: It says -- it's the 500 Role Models of Excellence Prayer, and was written by a member of our Dade County School Board presently, who was the Mayor of the City of Opa Locka. And it says: Heavenly Father, we know that holding up our youngsters now in the schoolhouse is better than locking them up later in the jailhouse. For we stand at the crossroads working to keep our young people out of the cross fire between the boys and the hood, and the boys who wear hoods, prayerfully guiding them away from becoming a menace to society, towards the goal of becoming good men in society. We pray that these young people will not be blinded by the desire for Nike Air, chains around their necks, beepers, cellular phones, STATE BOARD OF EDUCATION 34 April 13, 1999 and BMWs, desperate to make money any way they can. Teach them, Father, that Karl Kani is no substitute for knowledge and know-how, that De La Braids on the outside will never replace developed brains on the inside. And that the only BMW that will bring them closer to what they need is a bold mind working. Teach them not to rely on Tommy Hilfigers, but to rely on algebraic mathematical figures. Help them to know that it is better to go to heaven carrying a garbage bag, than to hell carrying a Gucci bag. We submit this prayer in the language of the young rappers of our time as we close with the words: Whoops, there it is. Amen. GOVERNOR BUSH: Amen. REPRESENTATIVE WILSON: And now our telecast. You will see our Commissioner of Education and our Lieutenant Governor speaking to millions of children all across the state of Florida. This is Stop Day. Thank you so much. GOVERNOR BUSH: Thank you. STATE BOARD OF EDUCATION 35 April 13, 1999 (Thereupon, a videotape was published as follows:) REPRESENTATIVE WILSON: -- from Miami, Florida. We gather here at the State Capitol in Tallahassee for a very important occasion, Stop Day. Today more than a million students all over Florida will stop at the same time, the same hour, and the same minute to pledge to help in the violence in their schools and school communities. Can you imagine over a million children doing the same thing at the same time? Well, it is happening right now. Because we must do all that we can to stop violence. Stop Day started five years ago in Miami-Dade County, and has become so effective that Governor Bush, Lieutenant Governor Brogan, Education Commissioner Tom Gallagher, along with the Florida Cabinet, and the Florida Legislature, want to encourage all children statewide to participate. Stop Day is a day when we empower students to take control from the bullies and the troublemakers. That's a small 7 percent of STATE BOARD OF EDUCATION 36 April 13, 1999 students that cause school related violence. Our esteemed Lieutenant Governor, Frank Brogan, and Education Commissioner, Tom Gallagher, will now speak to you regarding the importance of Stop Day. LIEUTENANT GOVERNOR BROGAN: Good morning, and welcome to Stop Day. This is our statewide effort to remind everyone that violence and crime will not be tolerated in Florida schools. We all want a safe learning environment, and we all know that students, who can make a difference, by working together to rid our schools of crime and violence. Today we'll think about the consequences of school crime, put into action solutions. Let's pause for a moment and reflect about those who have needlessly suffered as a result of school crime. Think about your family and friends who may have been victims of violence, and how their lives changed because of it. Please join us now in a moment of silence. COMMISSIONER GALLAGHER: School crime has happened in the past. We can't change that. STATE BOARD OF EDUCATION 37 April 13, 1999 But we can change what happens in the future. Stop Day is the beginning. I encourage teachers to talk to students about solutions to violence today, and every day. You'll spend the rest of today discussing what you can do to make your school safe. Some schools will have parades and rallies, some will invite speakers in and have moot court, while other may paint over graffiti, or clean up the school campus. We must all be involved in keeping our schools safe, and this is the way we'll declare victory, Stop Day in the state of Florida. LIEUTENANT GOVERNOR BROGAN: Another tool is to pledge unity in working to stop school crime. Join us in a pledge to make our schools safe. Please raise your right hand, and repeat after me: I pledge to be nonviolent and respect my fellow classmates. COMMISSIONER GALLAGHER: I will report school crime, or acts of violence to appropriate officials. LIEUTENANT GOVERNOR BROGAN: I will not let the actions of a few make my school dangerous STATE BOARD OF EDUCATION 38 April 13, 1999 or unsafe. COMMISSIONER GALLAGHER: I want a safe learning environment, and I will work with my fellow students to make it so. LIEUTENANT GOVERNOR BROGAN: As you carry out your Stop Day activities today, remember, stop the violence. Enough is enough. This is Lieutenant Governor Frank Brogan. COMMISSIONER GALLAGHER: I'm Tom Gallagher, Commissioner of Education, encouraging each of you to get involved in your school Stop Day activities today, and every day, because we're depending on you to make a difference. (Thereupon, the publication of videotape was concluded.) GOVERNOR BUSH: That's going to go into every school, Representative Wilson? REPRESENTATIVE WILSON: Every school in the state of Florida. GOVERNOR BUSH: Fantastic. Congratulations. MR. PIERSON: Item 4 is an amendment to Rule 6A-14.072, Financial Records and Reports. COMMISSIONER GALLAGHER: Motion. COMPTROLLER MILLIGAN: Move Item 4. STATE BOARD OF EDUCATION 39 April 13, 1999 GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. PIERSON: Item 5, Postsecondary Education Planning Commission, withdrawal of appointments: Ms. Karen L. Plunkett; Ms. Inez W. Bailey; Dr. Richard C. Alterman; and Dr. Thomas J. Haynes. COMMISSIONER GALLAGHER: Motion. COMPTROLLER MILLIGAN: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. PIERSON: Thank you. (The State Board of Education Agenda was concluded.) *
BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND40 April 13, 1999 GOVERNOR BUSH: Board of Trustees. Is there a motion on the minutes? COMMISSIONER GALLAGHER: Motion on minutes. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. Item Number 2. MR. STRUHS: Item Number 2 is a consideration of an option agreement to acquire 60.31 acres within the Florida Keys Ecosystem CARL Project. COMMISSIONER GALLAGHER: Motion. ATTORNEY GENERAL BUTTERWORTH: Second. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item 3 is a consideration of a purchase agreement to acquire 1.14 acres within the Coupon Bight/Key Deer CARL Project. COMMISSIONER GALLAGHER: Motion. SECRETARY HARRIS: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item Number 4 is consideration to do three things: Authorization to acquire BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND41 April 13, 1999 an undivided 50 percent interest in 7,740.94 acres within the Pal-Mar CARL Project. The second consideration is designation of the Florida Game and Fresh Water Fish Commission and the DEP as managing agencies. And the third item is confirmation of the management policy for that land. COMMISSIONER GALLAGHER: Motion. GOVERNOR BUSH: Is there a second? ATTORNEY GENERAL BUTTERWORTH: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item Number 5 is an option agreement to acquire 9.9 acres within the Paynes Prairie Division of Recreation and Parks Additions and Inholdings Project. COMMISSIONER GALLAGHER: Motion. ATTORNEY GENERAL BUTTERWORTH: Motion. COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item Number 6 is an option agreement to purchase the leasehold interest of Alfred Flesher and Dorothy Jean Flesher on the property located within the Topsail Hill State BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND42 April 13, 1999 Preserve. COMMISSIONER GALLAGHER: Motion. SECRETARY HARRIS: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Thank you. Item Number 7 is a request for consideration of a best estimate option agreement to acquire 133 acres for the benefit of the Florida Board of Regents and the University of Central Florida from the University of Central Florida Foundation. COMMISSIONER GALLAGHER: Motion. SECRETARY HARRIS: Second. COMPTROLLER MILLIGAN: I've got a -- a quick question -- GOVERNOR BUSH: Yeah. COMPTROLLER MILLIGAN: -- Governor. The policy on wetlands mitigation, net loss, no loss, zero sum gain? What is the policy? GOVERNOR BUSH: David? MR. STRUHS: The St. Johns River Water Management District, which is the district within this -- within which this BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND43 April 13, 1999 project will occur, develops their own policies and rules for the implementation of wetland laws in the state. Those rules are reviewed and approved by the Department to make sure they're consistent with State law. COMPTROLLER MILLIGAN: And what is the -- what is the policy in terms of loss of wetlands? MR. STRUHS: The -- the policy objective in -- in State law would be for no net loss of wetlands, and to make sure that for specific projects, that any impacts from the development are mitigated or compensated for. COMPTROLLER MILLIGAN: Do we know whether we will have a net loss in this particular evolution? MR. STRUHS: Well, we believe that the Water Management District, in this case, the St. Johns, has adopted rules that have met our standard of care. COMPTROLLER MILLIGAN: That -- MR. STRUHS: If you would like -- if you would -- COMPTROLLER MILLIGAN: Is the -- is the BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND44 April 13, 1999 answer yes or no. MR. ODOM: Mr. Secretary. Excuse me, Mr. Secretary. General, we have talked with the people of St. Johns, and in this particular case, there has been a 30 to 1 preservation ratio for the wetlands. So there has been no net loss. COMPTROLLER MILLIGAN: Okay. Thanks. MR. ODOM: Excuse me. Thank you. MR. STRUHS: If you -- if you have more particular questions about the project, there is a representative here from the University of Central Florida. COMPTROLLER MILLIGAN: No, that's not necessary. You know, we're still working on the land miti-- land bank mitigation business and the policy. And I recall we discussed being very careful with that in terms of net loss trying to avoid losses. And I was curious as to the way this was presented, whether or not we were going to see a net loss -- GOVERNOR BUSH: A legitimate question. COMPTROLLER MILLIGAN: -- in wetlands. So I'm -- I'm pleased to see that we're not. And BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND45 April 13, 1999 that's -- and that's fine. GOVERNOR BUSH: There is a motion. Is there a second? COMMISSIONER CRAWFORD: Second. MR. STRUHS: Thank you. GOVERNOR BUSH: Without objection, it's approved. MR. STRUHS: Item 8 is consideration of a request to do two things: First to delegate authority and to authorize the Director of our Division of State Lands to extend bona fide offers, negotiate and approve counteroffers, and execute a contract, a contract that would not exceed the appraised value for the purchase of approximately 1,245 acres of land owned by the Sahdev Corporation and located within the Estero Bay CARL project. And secondly, to waive the confidentiality of the appraisal requirement in order to empower that Director to bring us to closure. COMMISSIONER GALLAGHER: Motion. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Is there a second? COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Without objection -- BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND46 April 13, 1999 MR. STRUHS: Item -- GOVERNOR BUSH: -- it's approved. MR. STRUHS: Item Number 9 we would like to defer. COMMISSIONER GALLAGHER: Motion to defer. COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. No objection. MR. STRUHS: No, I'm sorry. COMPTROLLER MILLIGAN: We ought to applaud this one, because when it first came here, we were getting ripped off on the property. MR. STRUHS: Oh, I'm sorry. No. I -- I misread my notes. Can we reconsider that, please? GOVERNOR BUSH: Sure. Yeah, absolutely. COMMISSIONER GALLAGHER: Reconsider deferral. GOVERNOR BUSH: I didn't get down to the end -- MR. STRUHS: This -- this is actually a request to recon-- for the consideration of bids submitted for a surplus land sale; and secondly, to accept the bid submitted by Julien Benjamin, Jr., in the amount of BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND47 April 13, 1999 $251,643. My mistake was this had actually been deferred from the previous agenda. COMMISSIONER GALLAGHER: It was. GOVERNOR BUSH: Is there a motion? COMPTROLLER MILLIGAN: I move it. COMMISSIONER CRAWFORD: Second. COMMISSIONER GALLAGHER: Second. GOVERNOR BUSH: Any comments? COMPTROLLER MILLIGAN: No. GOVERNOR BUSH: Okay. COMPTROLLER MILLIGAN: I've forgotten what the original bid was that we had come before us, but it was, like, half of the appraised value, maybe even less than that. So this is a good job to -- GOVERNOR BUSH: Very good. COMPTROLLER MILLIGAN: -- see it come back above the appraised value. MR. STRUHS: Thank you very -- GOVERNOR BUSH: Without objection, it's approved. MR. STRUHS: Thank you very much. Item 10, the request is for consideration of a request to convey 2.41 acres of BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND48 April 13, 1999 State-owned land back to Jefferson County. COMMISSIONER GALLAGHER: Motion. ATTORNEY GENERAL BUTTERWORTH: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item Number 11 is consideration of a request to do three things: To release the restrictions contained in the -- in Dedication Number 23589; Item Number 2 to -- Oh, this is the one. GOVERNOR BUSH: This is where it's deferred. MR. STRUHS: This is the one that I wanted to defer. COMMISSIONER GALLAGHER: Okay. Motion to defer on 11. MR. STRUHS: I apologize. COMMISSIONER CRAWFORD: Second. COMPTROLLER MILLIGAN: Second. GOVERNOR BUSH: Without objection it is deferred. MR. STRUHS: We'd like to defer it to May 11, please. GOVERNOR BUSH: Fine. MR. STRUHS: See, this is the first time to BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND49 April 13, 1999 let me fly solo on this. COMMISSIONER GALLAGHER: Well, you're doing great. GOVERNOR BUSH: We're -- we're passing a resolution next week about error safety for first-time pilots. Go ahead. I'm in the same boat, David. MR. STRUHS: Thank you, sir. Substitute Item Number 12, request consideration of an application for modification of an existing 25-year sovereignty submerged land lease to increase the number of wet slips from five to nine, and to modify an existing special lease condition, and add three special lease conditions. COMMISSIONER CRAWFORD: Motion. SECRETARY HARRIS: Second. GOVERNOR BUSH: Moved and seconded. Without objection, it's approved. MR. STRUHS: Item Number 13, we request your consideration and approval of an enforcement and compliant strategy for docking facilities in the Boca Ciega Bay and Pinellas County Aquatic Preserves. BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND50 April 13, 1999 COMMISSIONER CRAWFORD: Motion. GOVERNOR BUSH: Is there a second? COMPTROLLER MILLIGAN: Governor, a question, please. You're extending it to 30 June, as I understand it -- MR. STRUHS: That's correct. COMPTROLLER MILLIGAN: -- which is almost upon us. Have you got sufficient time to really get the word out, and -- and publicize this, and -- and try to really make it work the way I think you're trying to make it work? MR. STRUHS: Yes, sir, I believe we do. I asked the very same question -- COMPTROLLER MILLIGAN: Okay. MR. STRUHS: -- of the program staff who are launching that public communications effort. And I'm satisfied that these additional 60 days will make a substantial difference. COMPTROLLER MILLIGAN: Okay, David. Thank you. GOVERNOR BUSH: Is there a second? COMMISSIONER CRAWFORD: Second. GOVERNOR BUSH: Moved and seconded. BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND51 April 13, 1999 Without objection, it's approved. MR. STRUHS: And Item Number 4 is -- GOVERNOR BUSH: Fourteen? COMMISSIONER GALLAGHER: Fourteen? MR. STRUHS: I'm sorry. Item Number 14 is to provide a PEER status report. As you all know by now, we've reached substantial agreement with the organization known as PEER, Public Employees for Environmental Responsibilities. You should have all received through your Aides a number of documents summarizing that agreement. You should have seen two letters, one an April 5th letter from me to Richard Winslow (sic); and an April 9th memo I sent to DEP employees. You should also have had a chance to review a copy of the DEP progress report detailing these items. I'm pleased to report this morning that PEER has filed a notice of voluntary dismissal, and we would consequently recommend withdrawal of this item. Mr. Steve Medina from PEER is available to speak to the Cabinet if you choose. BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND52 April 13, 1999 MR. MEDINA: My name's Steve Medina. I'm Florida counsel for Public Employees for Environmental Responsibility. And also with me is Pat Rose, the governmental relations representative for the Save the Manatee Club. I just wanted to make a couple of brief comments. In September of 1998, PEER filed with the Board of Trustees a detailed position raising serious problems involving the delegated sovereign submerged lands program. Many of these problems were confirmed in DEP's own internal performance reviews. The core principle involved is that the State submerged lands are the property of the people of the state of Florida, subject to the same degree of fiduciary responsibility as the State's financial resources. After some fits and starts, last fall the matter went into voluntary informal mediation mode. Late Governor Chiles and the previous Cabinet were critical in making sure that the issues were seriously considered. Major meetings were conducted in December and January, attended by Cabinet Aides, DEP, BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND53 April 13, 1999 and Water Management District representatives, industry representatives, PEER, Save the Manatee Club, and other environmental organizations. These were difficult meetings, but the parties conducted themselves in an admirable fashion, and areas of substantial consensus began to emerge. Then in February, newly appointed Secretary David Struhs of DEP, with no request from PEER, voluntarily issued a -- an extremely helpful and important letter to his staff making clear his commitment to transparency under which decisions were not only to be made with -- with the -- with openness, but also that there would be explanation of the rationale for the decisions. This was the foundation for resolution of the remaining issues involving openness and accountability that were of concern to PEER and Save the Manatee Club. Thus Secretary Struhs deserves a great deal of the credit for resolving this matter. By voluntarily instituting a policy of openness, better decisions can be reached BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND54 April 13, 1999 involving sovereign submerged lands, because the decision makers can best be informed when involved professionals are not only -- not only allowed, but expected to express their professional opinions. Now comes the admittedly difficult stage of making sure the actions meet the words. But we are pleased to say that we are beginning to see some positive signs in this regard. Therefore, PEER has dismissed without prejudice its petition, and looks forward to continuing to work with the parties to promote the objectives of the State's public employees, and seeing the public trust effectuated. Thank you. Thank you all very much, as well as your staffs, in bringing this to closure. GOVERNOR BUSH: Thank you. Commissioner. TREASURER NELSON: Governor, I want to add my compliments and thanks to all the parties that have come together on this. And now we can continue to work together through the rulemaking process. And I especially want to thank the staff at BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND55 April 13, 1999 DEP, our new Secretary David, and also Kirby Green, Perry Odom, and Phil Coram. And Steve and Pat, we really appreciate how you have worked tirelessly, as well as many others in the many Water Management Districts. All of the Cabinet Aides that have worked on this so tirelessly, I'm very appreciative. This agenda item is a good example of what we can do when we all work together toward a common goal. So thank you all. GOVERNOR BUSH: Thank you. David, for -- MR. ROSE: Very briefly. GOVERNOR BUSH: Yes. MR. ROSE: Governor, distinguished Trustees, I just -- don't need to remind you, manatees are nearly wholly dependent on the sovereign resources, and -- and I won't go into any of that, except to say, we are very encouraged with the progress that's been made, and we look forward to working with Secretary Struhs and the staff. And we're very appreciative of where we are now. And we look forward with your continuing BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND56 April 13, 1999 involvement in this. And we feel that this will help us be able to balance those kinds of conflicts we're going to have to face in the future as Florida grows. So thank you very much. GOVERNOR BUSH: One of the things that we are going to do, in addition to this great agreement, which we're very appreciative of your cooperative spirit here, is write a letter to all the Water Management District Executive Directors to give them their marching orders to also implement the same type of transparent policy making at their level as well, which will help -- hopefully make this a seamless kind of arrangement. So -- General. ATTORNEY GENERAL BUTTERWORTH: Thank you, Governor. I wish also to join the Treasurer in commending yourself and your staff that -- in -- in doing this. And this very strong policy is going to help many of the employees. We -- as many of you may not be aware, it's clear by the number BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND57 April 13, 1999 of employees here, that a number of the employees of DEP were personally sued with SLAPP suits, and they were sued for SLAPP suits when they were just doing their job. Now with the strong policy at the top, what we believe to be less of a chance. And some of us who have been subject to SLAPP suits ourselves for doing our jobs here in the Cabinet, know that for our employees to be doing their job out there in the field, knowing that we'll be there with -- with their openness, and -- on all these issues, I think is going to help out a lot for them. GOVERNOR BUSH: Great. MR. STRUHS: In closing, I would just like to publicly echo thanks to the DEP staff and managers for helping me with this. And in particular, the Cabinet Aides, who were very effective in seeing that we stayed on course and were able to reach a resolution. GOVERNOR BUSH: Is there a motion? COMMISSIONER CRAWFORD: Motion. GOVERNOR BUSH: Second. COMMISSIONER GALLAGHER: Second. SECRETARY HARRIS: Second. BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND58 April 13, 1999 GOVERNOR BUSH: Without objection, it's approved. Thank you, David. MR. STRUHS: Thank you. GOVERNOR BUSH: Thank you all very much. Have a great day. (The Board of Trustees of the Internal Improvement Trust Fund Agenda was concluded.) * (The Cabinet meeting was concluded at 10:26 a.m.) 59 April 13, 1999 CERTIFICATE OF REPORTER STATE OF FLORIDA: COUNTY OF LEON: I, LAURIE L. GILBERT, do hereby certify that the foregoing proceedings were taken before me at the time and place therein designated; that my shorthand notes were thereafter translated; and the foregoing pages numbered 1 through 58 are a true and correct record of the aforesaid proceedings. I FURTHER CERTIFY that I am not a relative, employee, attorney or counsel of any of the parties, nor relative or employee of such attorney or counsel, or financially interested in the foregoing action. DATED THIS 17TH day of APRIL, 1999.
LAURIE L. GILBERT, RPR, CCR, CRR, RMR 100 Salem Court Tallahassee, Florida 32301 850/878-2221 |
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