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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



                            STATE BOARD OF ADMINISTRATION
                              DIVISION OF BOND FINANCE
                            FINANCIAL SERVICES COMMISSION
                                 BOARD OF TRUSTEES

                         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, May 13, 2003
               commencing at approximately 9:30 a.m.

                                    Reported by:

                                  SANDRA L. NARGIZ

                          Registered Professional Reporter
                              Registered Merit Reporter
                             Certified Realtime Reporter

                         ACCURATE STENOTYPE REPORTERS, INC.
                                   100 SALEM COURT
                       TALLAHASSEE, FL  32301   (850)878-2221



                         Representing the Florida Cabinet:

                         JEB BUSH

                         CHARLES H. BRONSON
                         Commissioner of Agriculture

                         CHARLIE CRIST
                         Attorney General

                         TOM GALLAGHER
                         Chief Financial Officer

                                       * * *


                                      I N D E X

               (Presented by Coleman Stipanvich)

               ITEM                ACTION              PAGE
               1                   Approved             7
               2                   Approved            10/17

               (Presented by Ben J. Watkins, III)

               ITEM                ACTION              PAGE

               1                   Approved            18
               2                   Approved            18
               3                   Approved            18
               4                   Approved            19

               (Presented by Kevin McCarty)

               ITEM                ACTION              PAGE
               1                   Approved            21
               2                   Approved            21
               3                   Approved            22
               4                   Approved            22
               5                   Approved            22
               6                   Approved            22

               (Presented by Sherman Wilhelm)

               ITEM                ACTION              PAGE
               1                   Approved            28
               2                   Approved            28
               3                   Approved            28/30
               4                   Approved            30
               5                   Approved            31


               BOARD OF TRUSTEES
               (Presented by David Struhs)

               ITEM                ACTION              PAGE
               1                   Approved            35
               2                   Approved            36
               3                   Withdrawn           36
               4                   Approved            37
               5                   Approved            37
               6                   Approved            38
               7                   Approved            39/41
               8                   Deferred            42
               9                   Approved            42
               10                  Approved            52
               11                  Approved            52
               12                  Approved            60
               13                  Approved            61
               14                  Approved            67
               15                  Approved            68
               16                  Approved           102
               17                  Approved           102
               18                  Approved staff     141
               19                  Approved           197

               CERTIFICATE OF REPORTER                198


           1                    P R O C E E D I N G S

           2             (The agenda items commenced at 9:30 a.m.)

           3             GOVERNOR BUSH:  Next Cabinet is Wednesday,

           4        May 22nd, I guess that's because we will have --

           5        28th, excuse me -- because we are reaching -- on

           6        our budget the day before.  The budget will be

           7        passed on that day before, it's probably why we

           8        are not doing it on Tuesday, right?  I am sticking

           9        with that, at least.

          10             CFO GALLAGHER:  Governor, if I may.  We have

          11        a vacancy on the Parole Commission, and I would

          12        like to move that we appoint Monica David as chair

          13        and Fred Dumphrey as vice-chair.

          14             COMMISSIONER BRONSON:  Second.

          15             GOVERNOR BUSH:  Are we going to have two

          16        motions?

          17             CFO GALLAGHER:  No, that's one.

          18             GOVERNOR BUSH:  There is a motion and a

          19        second.  Without objection, the motion passes.

          20             CFO GALLAGHER:  Just for information, the new

          21        chairman, Monica David, has recruited three past

          22        chairmen to fill in for the vacancies until we

          23        have a replacement so the work of the commission

          24        will continue.

          25             I also would like to move at this time

           1        that we approve the Parole and Qualifications

           2        Committee to help us find a new member, and

           3        that would be chaired by Mr. Ed Spooner, the

           4        chief deputy at the Gadsden County Sheriff's

           5        Office.  On that would be Don Hunter, Collier

           6        County, Jerry Blair, State Attorney, Third

           7        Judicial Circuit, Rosario Arigo, City of Coral

           8        Springs and Meryl Allawas, 18th Judicial

           9        Circuit Court Judge in Brevard County.

          10             COMMISSIONER BRONSON:  Second.

          11             GOVERNOR BUSH:  There is a motion and a

          12        second for the Parole Qualifications Committee.

          13        Without objection, the item passes.

          14             Thank you very much, Commissioner.

          15             State Board of Administration.

          16             How did we get Coleman to get on the front

          17        of the line?  He must have done some serious

          18        lobbying.

          19             MR. STAPANOVICH:  No, sir, I am happy to be

          20        here.

          21             GOVERNOR BUSH:  Is there a motion on item 1?

          22             CFO GALLAGHER:  Motion on 1.

          23             GOVERNOR BUSH:  Is there a second?

          24             GENERAL CRIST:  Second.

          25             GOVERNOR BUSH:  The minutes have been moved

           1        and seconded.  Without objection, the item passes.

           2             MR. STAPANOVICH:  Good morning, Governor,

           3        Treasurer, General.

           4             Item 2 has to do with Tom Wallace,

           5        Executive Director of Florida Prepaid College

           6        Program, requests approval of the Comprehensive

           7        Investment Plan that was approved April 2, 2003

           8        by the Florida Prepaid College Board consisting

           9        of proposed changes for two separate programs.

          10             The first program is the Florida Prepaid

          11        College Program, and I believe the last time

          12        that was amended was in 1993.  And the new

          13        program in Florida, the College Savings

          14        Program, which was approved in June of '02.

          15             Essentially there are three changes,

          16        Governor and Members.  The first one is to

          17        allow the use of Exchange Trade Of Funds, ETFs,

          18        by the board's investment managers; secondly to

          19        include the definition of tobacco security as

          20        defined by the Standard & Poors Global Industry

          21        classification; and finally, to include the

          22        board's previously-approved policy on conflicts

          23        of interest.

          24             Now I will answer any questions you may

          25        have, or Mr. Wallace, Executive Director.

           1             CFO GALLAGHER:  Governor, I would like to

           2        move that we remove tobacco as a prohibited

           3        investment vehicle from both the Florida Prepaid

           4        College Program and the Florida College Savings

           5        Program.

           6             GENERAL CRIST:  Second.

           7             GOVERNOR BUSH:  Is there any discussion?

           8        This is different than what your proposed policy

           9        is, correct?

          10             MR. STAPANOVICH:  This is -- in the policies

          11        as it stands for the program, it exists

          12        ex-tobacco.  And they have asked to place in a

          13        definition defining to the investment manager what

          14        ex-tobacco is.  I will say it is different than

          15        what the Florida State Board of Administration

          16        does.

          17             GOVERNOR BUSH:  I think we should have our

          18        policies mirror the State Board.

          19             CFO GALLAGHER:  I agree.  At the meeting they

          20        had a motion and a second and a lot of discussion

          21        with no vote.  So --

          22             GOVERNOR BUSH:  They forgot to vote?

          23             CFO GALLAGHER:  -- it stayed the way it was.

          24        So I guess mainly they just didn't want to let all

          25        that contention happen, so I guess --

           1             GOVERNOR BUSH:  They wanted us to take the

           2        heat.

           3             CFO GALLAGHER:  And here we are.

           4             GOVERNOR BUSH:  I think the theory here is

           5        that the principle is a sound one, which is that

           6        by in large, we want to -- our responsibility is

           7        to get the maximum return in the safest investment

           8        portfolio and not be involved in social or

           9        political statements or positions.

          10             MR. STAPANOVICH:  That's the view of the

          11        board and the staff as well, Governor, that any

          12        time you limit the opportunity to set for

          13        investments, it's not the prudent thing to do.

          14        And we have shared that opinion with Mr. Wallace,

          15        but his board, from what I understand, didn't want

          16        to make the recommendation, but ultimately by law

          17        you are the final authority.

          18             GOVERNOR BUSH:  Okay.

          19             CFO GALLAGHER:  Let me just clarify what we

          20        are doing by this motion is to strike number 1

          21        from page 5 on both of the plans?

          22             MR. STAPANOVICH:  Yes, sir, Treasurer, and

          23        also there is some attachments.  Part four,

          24        anywhere -- again, I am going to continue to bring

          25        you a motion, but if you look at part 4, large cap

           1        core investment guidelines, it also talks about

           2        ex-tobacco.  So anywhere that is I would assume

           3        you want that out of the policy.

           4             CFO GALLAGHER:  Correct.

           5             GOVERNOR BUSH:  Any other discussion?  There

           6        is a motion and second.  Without objection, the

           7        item passes, or the amendment, Commissioner

           8        Gallagher's amendment passes.

           9             Can I ask a question about the Prepaid

          10        Fund, the College Board?  This is a hugely

          11        important investment for thousands and

          12        thousands of Florida families.

          13             As I understand, last time I looked at

          14        this, the portfolio is basically -- is

          15        dominated by treasuries, isn't it?

          16             CFO GALLAGHER:  Very conservative.

          17             GOVERNOR BUSH:  And given the interest rate

          18        climate, I assume that the actuarial surplus of

          19        the prepaid is changing as there is a roll over of

          20        the securities.

          21             What's the most recent status of their

          22        surplus?

          23             MR. WALLACE:  Governor, I am Tom Wallace.

          24        The actuarial reserve right now, as of June 30,

          25        2002, was $379 million.  Our actuaries and our

           1        accountants will come in on June 30 of this year

           2        and do another shot at it and come back and do a

           3        report.  But we know, as you just indicated, with

           4        the lower interest rate environment, for every

           5        1 percent that interest rates go down, we lose

           6        about a hundred million dollars of actuarial

           7        reserve.

           8             CFO GALLAGHER:  What was your yield last year

           9        on your portfolio?

          10             MR. WALLACE:  Since inception, the yield has

          11        actually been over 10 percent, about 10.6 percent.

          12        We started in 1988 and we bought when the yields

          13        were significantly higher.  For a given one year,

          14        last year, we actually earned 7.8 percent.

          15             GOVERNOR BUSH:  Excellent.  What's your

          16        projection for next year and the year after?  I am

          17        curious to know, last time I checked, I believe

          18        that someone told me tuition rates could grow by

          19        8 percent per anum and everything would be fine in

          20        terms of the state's commitment.

          21             But I assume that as your returns drop

          22        going forward, the tuition increases projected

          23        out over a decade of time or 15 years, or

          24        whatever, have to drop as well in terms of the

          25        increases.

           1             MR. WALLACE:  Yeah, the way the portfolio is

           2        set up, it's called the immunized strategy, so

           3        when we buy a contract in a given year, when we

           4        sell a contract through 2002, our liabilities are

           5        matched up with our assets; so as tuition rates

           6        increase or decrease and as investment return

           7        changes, those things work in tandem.  So we have

           8        some protection on the investment yield side.

           9             GOVERNOR BUSH:  How can they work in tandem

          10        if the legislature decides to increase tuition by

          11        25 percent?  That's not working in tandem.

          12             MR. WALLACE:  No, that goes up.  What happens

          13        is if investment yields go up or down, our

          14        liabilities and assets will go up and down.  That

          15        is assuming a set tuition rate.  That's what I was

          16        getting to, this potential increase in tuition in

          17        the future.  We assume 6.8 percent tuition

          18        increases in those assumptions.  If tuition does

          19        go up --

          20             GOVERNOR BUSH:  For how long?

          21             MR. WALLACE:  Over the next 22 years because

          22        a person could buy a contract for a newborn who

          23        will actually use that four years out after age

          24        18, so age 22 from now.

          25             GOVERNOR BUSH:  You will base it on your

           1        current interest rate going forward, what you're

           2        purchasing your current assets on.  But that means

           3        that the state's obligation possibly would grow?

           4             MR. WALLACE:  Yes, sir, that's correct, based

           5        on the spot yield curve.  Right now, as I say,

           6        95 percent of our investments are in fixed income.

           7        What we can earn on new investments that we buy in

           8        the future for contracts we would sell after this

           9        point in time averages about 4.6 percent.  Because

          10        the duration of our portfolio is somewhere around

          11        an eight to nine year range when people use, so

          12        based on a weighted average of our return for

          13        fixed income, it's 4.8 percent.

          14             So any tuition increase above that

          15        certainly would eat into that actuarial

          16        reserve, or we could increase prices in the

          17        contracts.  Those are the two levers that the

          18        board has, yes, sir.

          19             CFO GALLAGHER:  We've got really a mixed

          20        blessing here.  We have the most successful

          21        prepaid tuition program in the country, which

          22        means that actually we have more contracts than

          23        all the other states combined, which is really

          24        exciting.  That's the good news.

          25             The bad news is that pretty much puts an

           1        obligation on the state to cover and not have

           2        huge tuition increases because otherwise we are

           3        going to have to make all the those seven

           4        hundred and some thousand people pay more money

           5        than what they thought they were originally

           6        paying.  Some of the months payments could go

           7        up sizably.

           8             GOVERNOR BUSH:  It wouldn't be for the people

           9        already buying contracts, going forward?

          10             CFO GALLAGHER:  Yes, it would.

          11             GOVERNOR BUSH:  Is that true?

          12             CFO GALLAGHER:  The existing ones will have

          13        to be increased.

          14             MR. WALLACE:  Well, the way the current law

          15        is written, the way the current statute is is that

          16        the state guarantees to cover the cost of tuition

          17        for anyone that purchases a contract that is

          18        within five years of going to college or is in

          19        college.

          20             GENERAL CRIST:  Five years of going to

          21        college?

          22             CFO GALLAGHER:  If you have four-year-olds

          23        like I do, we are going to have to pay more money.

          24             MR. WALLACE:  Or else the state has

          25        guaranteed we'll give you back what you paid in

           1        plus full interest.

           2             GOVERNOR BUSH:  Are you prepaid?

           3             CFO GALLAGHER:  Absolutely.

           4             GOVERNOR BUSH:  Get Charlie moving quicker,

           5        man.

           6             CFO GALLAGHER:  We've got more than five

           7        years before he's in college.

           8             GOVERNOR BUSH:  Nine years old.

           9             CFO GALLAGHER:  I hope.  I am enjoying every

          10        bit of his youth, I don't want him in college yet.

          11             GENERAL CRIST:  I am just curious, how much

          12        money do we have in this program now?

          13             MR. WALLACE:  $3.5 billion.

          14             GENERAL CRIST:  Say again.

          15             MR. WALLACE:  $3.5 billion.

          16             GENERAL CRIST:  Million?

          17             GOVERNOR BUSH:  Billion.

          18             MR. WALLACE:  Billion.  And we have sold over

          19        890,000 contracts.  This last year we sold 156,000

          20        contracts.

          21             GENERAL CRIST:  It's a tremendous program,

          22        and anything we can do to help, we need to do.

          23        Thank you.

          24             MR. WALLACE:  Appreciate that.

          25             GOVERNOR BUSH:  Thank you for the update.

           1             CFO GALLAGHER:  Let me ask a question, Tom.

           2        I think some states -- we have a guarantee for the

           3        five years prior to, but don't some states

           4        guarantee it right on from day one?

           5             MR. WALLACE:  Yes, they do.

           6             CFO GALLAGHER:  So we are much more I guess

           7        open to having increases than other states do for

           8        the majority of our people that have joined up?

           9             MR. WALLACE:  What the tuition increase would

          10        do would potentially make the program financially

          11        feasible.  The only time -- the statute is clear,

          12        it's guaranteed, but if the program is determined

          13        financially infeasible, the legislature may deem

          14        it that way and they are only obligated to fund

          15        contracts that are within five years of going to

          16        college.

          17             CFO GALLAGHER:  At that point, what,

          18        everybody else gets their money back?

          19             MR. WALLACE:  They get their money back plus

          20        simple interest.

          21             GOVERNOR BUSH:  This program is powerful

          22        because of the state's guaranty compared to other

          23        states which have not -- and most of the 529

          24        plans, apparently the states, a lot of them are

          25        pulling back now because of the concerns about

           1        rising tuition rates.

           2             CFO GALLAGHER:  Most of the 529 plans are

           3        designed by private entities as opposed to having

           4        our board, which we are in a lot better shape that

           5        way, too, a lot more cheaper.

           6             GOVERNOR BUSH:  We need a motion on the item.

           7             CFO GALLAGHER:  I think we did.

           8             GOVERNOR BUSH:  I don't think --

           9             MR. STAPANOVICH:  You have a motion and a

          10        second on the amendment only; on the amendment

          11        only.  You would need to approve each program.

          12             CFO GALLAGHER:  Move it as amended.

          13             GENERAL CRIST:  Second.

          14             GOVERNOR BUSH:  Item 2 has been moved and

          15        seconded, item 2 as amended is approved.  Thank

          16        you, Coleman.  Thank you all.










           1             GOVERNOR BUSH:  Division of Bond Finance.

           2             CFO GALLAGHER:  Motion on the minutes.

           3             GENERAL CRIST:  Second.

           4             GOVERNOR BUSH:  Moved and seconded.  Without

           5        objection, item 1 passes.

           6             Item 2.

           7             MR. WATKINS:  Item 2 is a resolution

           8        authorizing the issuance of up to $16,800,000 of

           9        Parking Facility Revenue Bonds for FSU.

          10             CFO GALLAGHER:  Motion.

          11             COMMISSIONER BRONSON:  Second.

          12             GOVERNOR BUSH:  Moved and seconded.  Without

          13        objection, the item passes.

          14             MR. WATKINS:  Item number 3 is a report of

          15        award on the competitive sale of $5,585,000 in

          16        Revenue Refunding Bonds for the parking system for

          17        FSU.

          18             CFO GALLAGHER:  Motion on 3.

          19             COMMISSIONER BRONSON:  Second.

          20             GOVERNOR BUSH:  Moved and seconded.  Without

          21        objection, the item passes.

          22             MR. WATKINS:  Item number 4 is a report of

          23        award on competitive sale of $109,770,000 in

          24        Revenue Refunding Bond for the Florida Facilities

          25        Pool.

           1             The bonds were awarded to the low bidder

           2        at a true interest cost of approximately

           3        3.48 percent, generating gross savings, debt

           4        service savings for the state of approximately

           5        17 million or 13 and a half million on a

           6        present value basis.

           7             CFO GALLAGHER:  Motion on 4.

           8             COMMISSIONER BRONSON:  Second.

           9             CFO GALLAGHER:  Congratulations.

          10             GOVERNOR BUSH:  Moved and seconded.  Without

          11        objection, the item passes.

          12             MR. WATKINS:  Just to keep you up to date on

          13        sort of a running score cards on refunding in this

          14        calendar year, that's the ninth transaction,

          15        aggregating $1.3 billion, saving the state on a

          16        gross debt service basis $150 million.

          17             CFO GALLAGHER:  Awesome.

          18             MR. WATKINS:  Or a hundred and eleven million

          19        on --

          20             GOVERNOR BUSH:  Are you calculating these

          21        savings into the cap?

          22             MR. WATKINS:  Absolutely.

          23             GOVERNOR BUSH:  Good.  Just checking.

          24             CFO GALLAGHER:  Drops a little bit each time?

          25             MR. WATKINS:  Every little bit helps.

           1             GOVERNOR BUSH:  Sure does.

           2             CFO GALLAGHER:  There is a lot of pressure

           3        moving it up.

           4             GOVERNOR BUSH:  We need some downward

           5        pressure, with increased revenue and lower

           6        interest rates counteracting the desire to put

           7        that on everything that didn't walk in.  Are we

           8        finished?

           9             MR. WATKINS:  Yes.

          10             GOVERNOR BUSH:  Thank you.
















           1             GOVERNOR BUSH:  Financial Services

           2        Commission.

           3             CFO GALLAGHER:  Motion on item 1, minutes of

           4        February 25th.

           5             COMMISSIONER BRONSON:  Second.

           6             GOVERNOR BUSH:  Moved and seconded.  Without

           7        objection, the item passes.

           8             CFO GALLAGHER:  Motion on item 2, which is

           9        the minutes for March 25th.

          10             COMMISSIONER BRONSON:  Second.

          11             GOVERNOR BUSH:  Moved and seconded.  Without

          12        objection, item passes.  Kevin, good morning.

          13             MR. McCARTY:  Good morning, Governor, Members

          14        of the Financial Services Commission.

          15             I direct your attention to item number 3

          16        on the agenda, was the adoption for changes to

          17        Chapter 4-149, concerning the Small Employer

          18        Health Care Access.

          19             These amendments provide the following

          20        changes.  They provide for rating standards to

          21        be used in the small group market; relocate

          22        existing definitions to a definition section of

          23        the rule; update the use of a form to be used

          24        in required filings with the department; and

          25        allow for the exclusion of claims under workers

           1        compensation and permits a rating factor to be

           2        used for those policy forms that provide

           3        workers' comp coverage.

           4             CFO GALLAGHER:  Motion on 3.

           5             COMMISSIONER BRONSON:  Second.

           6             GOVERNOR BUSH:  Moved and seconded.  Without

           7        objection, the item passes.

           8             MR. McCARTY:  Items 4 and 5, and 6 have to do

           9        with the office's adoption of the use of

          10        electronic filing for rates and forms to be used.

          11             Item 4 is specific to life and health.

          12        Adoption of this would provide for all rates

          13        and forms to be filed by use of an electronic

          14        database effective July 1.

          15             CFO GALLAGHER:  Motion on 4.

          16             GOVERNOR BUSH:  And 5 and 6?

          17             CFO GALLAGHER:  And 5 and 6.

          18             COMMISSIONER BRONSON:  Second.

          19             GOVERNOR BUSH:  Moved and seconded.  Without

          20        objection, the item passes, items 4, 5 and 6.

          21             Kevin, can you just give us a brief update

          22        on insurance issues in the legislature?  Five

          23        hours or less.

          24             MR. McCARTY:  There are several substantive

          25        issues I think that are important to the State of

           1        Florida that have not been addressed and will need

           2        to be.

           3             Certainly the workers' comp legislation,

           4        which the House and Senate had various versions

           5        that it failed to pass in the waning hours of

           6        the session.  We certainly are encouraged and

           7        hope there will be a special session addressing

           8        those issues.

           9             Likewise, with med mal, the Governor

          10        appointed a Commission for med mal and workers'

          11        comp, which I think gave a menu of some very

          12        good suggestions on changes in both those

          13        systems, which I think both systems, med mal

          14        and workers' comp, need a fundamental, you

          15        know, overhaul of the system in order for us to

          16        have the viable economy in Florida and to

          17        ensure availability of quality health care.

          18             I also believe that there is some pending

          19        legislation with regard to the PIP crisis in

          20        Florida and the legislature addressed that a

          21        couple of years ago; we still have some other

          22        additional, I think, things that could be done.

          23             GOVERNOR BUSH:  Are you happy with the bill

          24        that passed, I guess the Senate, on PIP?

          25             MR. McCARTY:  Yeah, I think that represents,

           1        I think, some good measures in there.  I think

           2        there are other things that can be done to make it

           3        stronger.  But I think it certainly would be

           4        something that would be significant and adjust the

           5        PIP problem in Florida.

           6             CFO GALLAGHER:  Again, if we don't get that

           7        passed, we really need to look at whether we ought

           8        to keep the no-fault system, because the amount of

           9        fraud that's happening today is costing each

          10        family about $242 a year just in fraud, which is a

          11        huge amount of money.

          12             GOVERNOR BUSH:  What percentage of the

          13        insurance market is PIP?

          14             CFO GALLAGHER:  Boy, I don't know.

          15             MR. McCARTY:  What percentage?

          16             CFO GALLAGHER:  Of the automobile?

          17             GOVERNOR BUSH:  Of the automobile, yeah.  Is

          18        it a quarter?

          19             MR. McCARTY:  That's probably correct.  Most

          20        policyholders in Florida buy more than the

          21        mandatory PIP coverage.  It probably represents

          22        about 20 or 25 percent of the coverage.

          23             CFO GALLAGHER:  But there is a large sector

          24        of people that only buy the minimum, which would

          25        be PIP and PD, property damage and personal injury

           1        projection.  Of that, PIP ends up being a pretty

           2        large percentage of that, because that's where all

           3        the fraud is.  So there is a lot of claims there

           4        that are fraudulent.  So the cost of -- the

           5        indication on rate increases on that for the past

           6        few years has been very high.

           7             MR. McCARTY:  Clearly fraud is a significant

           8        part of driving costs of all kinds of insurance in

           9        Florida, but I think it would be remiss of me not

          10        to mention that we need to get a grip on the

          11        runaway legal costs in our system which are

          12        evidenced in PIP and workers' comp as well as

          13        med-mal.

          14             GOVERNOR BUSH:  You want me to start giving

          15        you guttural sounds?  Go for it.  It's out of

          16        control.  We will act on these things, because a

          17        lot of Floridians are going to lose their jobs if

          18        we don't.  It is the biggest burden for

          19        maintaining our lead in the country in terms of

          20        job creation.

          21             CFO GALLAGHER:  Kevin, you did have a win in

          22        the regular session; so you might want to mention

          23        that.

          24             GOVERNOR BUSH:  Your win.

          25             CFO GALLAGHER:  The whole department's win.

           1             MR. McCARTY:  We compromised with --

           2        Treasurer Gallagher initially had put forward for

           3        a regulation on the out-of-state group market.

           4        Our office put together I think an alternative

           5        which provides for an unfair trade practice for

           6        out-of-state groups to engage in predatory rating

           7        practices.

           8             But more importantly, I think in that bill

           9        is provisions that eliminate some of the

          10        subjective criteria that used to be there,

          11        which would allow the Insurance Commissioner,

          12        now the director, to disapprove filings based

          13        upon a determination of viability.

          14             And I also put the loss ratio provision in

          15        there, which putting that kind of stability I

          16        think in the uncertainty in legislation

          17        provides for a business climate and an

          18        environment that I think will encourage

          19        companies to do business in Florida by

          20        eliminating the subjectivity of the rate review

          21        process.

          22             GOVERNOR BUSH:  Did the legislature pass the

          23        reorganization, the glitch?

          24             MR. McCARTY:  Yes, they did.

          25             GOVERNOR BUSH:  They call it, I guess, CFO

           1        Glitch Bill.

           2             MR. McCARTY:  Yes, we did.

           3             CFO GALLAGHER:  2700 pages.

           4             GOVERNOR BUSH:  You are kidding?

           5             CFO GALLAGHER:  No.  They passed it pretty

           6        clean, too.  Usually they had loaded up a bunch of

           7        stuff on it, but it was a passed clean.

           8             MR. McCARTY:  Thank you, Governor and Members

           9        of the Commission.

          10             GOVERNOR BUSH:  Thank you.
















           1             GOVERNOR BUSH:  Department of Agriculture and

           2        Consumer Services.

           3             CFO GALLAGHER:  Motion on the minutes.

           4             GOVERNOR BUSH:  Moved and seconded.  Without

           5        objection, the item passes.

           6             MR. WILHELM:  Is seeking approval to issue a

           7        one acre 10-year lease for live rock in Monroe

           8        County with the standard conditions.

           9             CFO GALLAGHER:  Motion on 2.

          10             GENERAL CRIST:  Second.

          11             GOVERNOR BUSH:  Moved and seconded.  Without

          12        objection, the item passes.

          13             MR. WILHELM:  Item 3 is also another one acre

          14        10-year lease for live rock in Monroe County with

          15        standard conditions.

          16             CFO GALLAGHER:  Motion on 3.

          17             COMMISSIONER BRONSON:  Second.

          18             GOVERNOR BUSH:  Moved and seconded.  Without

          19        objection, the item passes.

          20             How long does it take to turn rock into

          21        live rock?

          22             MR. XX:  Usually it's between a year or two

          23        years, depending on where it's located.  The rock

          24        that's coming off of Palm Beach County and

          25        Hillsborough County will take almost two years.

           1        The Keys rock will take a year.

           2             GOVERNOR BUSH:  Because of just the --

           3             MR. XX:  Warm water and more diversity and

           4        what's floating in the water column.

           5             GOVERNOR BUSH:  It's a really kind

           6        fascinating part of our world.

           7             We ought to brag about this a little bit.

           8        I don't think you can do this in other places.

           9        Is there other parts of the country that do

          10        this to the same extent we do?

          11             MR. XX:  No, sir.  We are blessed with warm

          12        water and a coral reef that maintains organisms in

          13        it, and they harvest the rock out of Miami-Dade

          14        and out of the quarries and the farmers will get

          15        and the retail shops will get up to $10 a pound

          16        for this stuff.

          17             GOVERNOR BUSH:  It's really cool.

          18             COMMISSIONER BRONSON:  I think the key here

          19        is by working with DEP and others, when the

          20        legislation for aquaculture came over to the

          21        agriculture department and the amount of potential

          22        business that aquaculture is going to produce, I

          23        predicted over 15 or 20 years ago that in my

          24        lifetime aquaculture may outproduce land-based

          25        agriculture with the potential we have, for all

           1        the water resources we have around the State of

           2        Florida; that we may be producing food and other

           3        items at such a rate that it may actually

           4        outproduce land-based agriculture in my lifetime.

           5             GOVERNOR BUSH:  Hope you live a long life,

           6        Charlie.  What item are we on?

           7             MR. XX:  Item number 4.

           8             CFO GALLAGHER:  I don't think we announced 3,

           9        motion and second.

          10             GOVERNOR BUSH:  Motion on 3.  I thought we

          11        did, but we can do it again if you would like.  We

          12        did item 2, right?

          13             There is a motion on 3, is there a second?

          14             GENERAL CRIST:  Second.

          15             GOVERNOR BUSH:  Moved and seconded.  Without

          16        objection, the item passes.

          17             MR. XX:  Item number 4 is another live rock

          18        lease for one acre, 10 years, it's going to be in

          19        Palm Beach County.

          20             CFO GALLAGHER:  Motion on 4.

          21             COMMISSIONER BRONSON:  Second.

          22             GOVERNOR BUSH:  Moved and seconded.  Without

          23        objection, the item passes.

          24             MR. XX:  Item number 5 is the request by the

          25        Department to transfer 11 leases over in Dixie

           1        County from an existing high-density lease and

           2        move it south to another high-density lease where

           3        it is more favorable for raising clams.

           4             CFO GALLAGHER:  Motion on 5.

           5             COMMISSIONER BRONSON:  Second.

           6             GOVERNOR BUSH:  Moved and seconded.  Without

           7        objection, the item passes.

           8             MR. XX:  Thank you very much.

           9             GOVERNOR BUSH:  Thank you.

















           1             GOVERNOR BUSH:  Board of Trustees.

           2             MR. STRUHS:  Good morning, Governor.  If I

           3        might, I would like to take just a minute and

           4        address an item that is not on the agenda but

           5        certainly I think is important to you as a board.

           6             Some recent personnel changes in our

           7        Division of Recreation and Parks have prompted

           8        some rumors that we have plans to privatize or

           9        commercialize the State Park System and I

          10        wanted to publicly assure you that that is

          11        simply not true.

          12             I had the opportunity to speak with some

          13        of you privately about this, so you are already

          14        aware of it, but I thought it was important to

          15        use this public venue to make that clear.

          16             We at DEP greatly appreciate the constant

          17        support that we get from each one of you as we

          18        look to expand the parks and improve the park

          19        system.

          20             Just for the record, over the last four

          21        years, the operating budget for the State Park

          22        System has increased by almost 25 percent;

          23        about $150 million invested in capital

          24        improvement.  And, in fact, this year Governor

          25        Bush has recommended what is the largest

           1        operating budget ever proposed for the State

           2        Park System.

           3             The point for sharing this is to assure

           4        you that we are not now going to turn over this

           5        public trust investment to some kind of

           6        commercial operation.  If anything, our

           7        objective is to really bring other conservation

           8        properties that we manage for you up to the

           9        same level of service, accessibility and public

          10        support that the parks currently enjoy.

          11             That obviously means keeping them in

          12        public ownership, under public management, for

          13        public benefit and appreciate the chance to

          14        just make sure that is clear to each one of you

          15        as board members.

          16             With that, unless there are any questions,

          17        move on to agenda item number 1.

          18             GOVERNOR BUSH:  Can I ask a question?  Kind

          19        of a side bar to this.  Anything going on with

          20        Cypress Gardens?

          21             MR. STRUHS:  I am going to let Mr. Ballard

          22        speak to that.

          23             GOVERNOR BUSH:  I have been getting some

          24        interesting e-mails about prospective uses and

          25        ventures.

           1             MR. BALLARD:  We are in the middle of working

           2        with Wild Adventures, they have shown some

           3        interest.  We have had two meetings with them

           4        already and Cypress Gardens together and there

           5        seems to be some interest there.

           6             There is talk about a conservation

           7        easement for a part of Cypress Gardens that the

           8        state is looking at bringing before the

           9        Governor and Cabinet to keep in perpetuity, but

          10        we are only talking about a small segment of

          11        Cypress Gardens.

          12             GOVERNOR BUSH:  What about buying it?  What

          13        about the purchase?  Are efforts under way?  What

          14        would be the cycle?  When would a decision be made

          15        if we were in a position to buy it?

          16             MR. BALLARD:  It would have to go before ARC.

          17        If ARC approves a purchase by the state -- excuse

          18        me, if ARC approves the resource, then it would

          19        come before the Governor and Cabinet for your

          20        approval in August.  So we would see nothing

          21        before August.

          22             GOVERNOR BUSH:  David Segel's --

          23             MR. BALLARD:  We have not talked to David

          24        Segal.  We have got something fairly strong with

          25        Wild Adventures, and we want to pursue that first.

           1        We feel that's the best option right now.

           2             GOVERNOR BUSH:  Okay.  Thank you for the

           3        update.  I am sorry.

           4             Item 1.

           5             MR. STRUHS:  We recommend approval of the

           6        item.

           7             It's an opportunity to sell to Miami-Dade

           8        County 11 parcels, totaling about 85 acres,

           9        it's state-owned property.  They will use this

          10        to further enhance their water production

          11        facilities and provide them well protection.

          12             CFO GALLAGHER:  Moved.

          13             COMMISSIONER BRONSON:  Second.

          14             GOVERNOR BUSH:  Moved and seconded.  Without

          15        objection, the item passes.

          16             MR. STRUHS:  We also recommend approval of

          17        item number 2.

          18             This would allow us to transfer to the

          19        South Florida Water Management District a

          20        87-acre strip of land that runs along side the

          21        Miami Canal.  This land was not purchased with

          22        any kind of conservation bond dollars, so there

          23        is no problem there.

          24             We do need three votes to convey the

          25        property from the Board of Trustees to the

           1        Water Management District.  This is land that

           2        they will need for part of the Everglades

           3        Construction Project.

           4             GOVERNOR BUSH:  This is to expand a storm

           5        treatment area?

           6             MR. STRUHS:  No, it's actually to better

           7        manage and maintain the canal.  This is a thin

           8        strip of land that actually runs right along the

           9        levee.  In order to maintain and clean and repair

          10        the canal, they would have access to it.

          11             GOVERNOR BUSH:  All right.  Is there a

          12        motion?

          13             COMMISSIONER BRONSON:  Motion on 2.

          14             CFO GALLAGHER:  Second.

          15             GOVERNOR BUSH:  Moved and seconded.  Without

          16        objection, the item passes.  We need to make sure.

          17        All in favor say aye.

          18             THE CABINET:  Aye.

          19             GOVERNOR BUSH:  The item passes unanimously.

          20             MR. STRUHS:  Item number 3.

          21             CFO GALLAGHER:  Motion to withdraw 3.

          22             GOVERNOR BUSH:  There is a motion to

          23        withdraw.  Is there a second?

          24             COMMISSIONER BRONSON:  Second.

          25             GOVERNOR BUSH:  Without objection, the item

           1        is withdrawn.

           2             MR. STRUHS:  Recommending approval of item

           3        number 4.  This would accept assignment of an

           4        option agreement to acquire 197 acres in the

           5        Yellow River Ravines, Florida Forever Project, to

           6        designate the Department of Agriculture and

           7        Consumer Services, Division of Forestry, as the

           8        managing agency, and to confirm the policy

           9        statement for their properties management.

          10             COMMISSIONER BRONSON:  Motion on item 4.

          11             CFO GALLAGHER:  Second.

          12             GOVERNOR BUSH:  Moved and seconded.  Without

          13        objection, the item passes.

          14             MR. STRUHS:  Recommending approval on item

          15        number 5, assignment of an option agreement to

          16        acquire just under 60 acres in the Lake Wales

          17        Ridge Ecosystem.

          18             CFO GALLAGHER:  Motion on 5.

          19             COMMISSIONER BRONSON:  Second.

          20             GOVERNOR BUSH:  Hang on a second, David.

          21             (Short pause.)

          22             GOVERNOR BUSH:  There is a motion and a

          23        second.  Any discussion?  Without objection, the

          24        item passes.

          25             MR. STRUHS:  Item 6 is, in my opinion, a

           1        remarkably good item and one that deserves some

           2        attention.

           3             This is the opportunity to acquire an

           4        important conservation resource, 1,166 acres

           5        within the Escribano Point, Florida Forever

           6        Project, but it's more important than just that

           7        because, in fact, this is further evidence of

           8        our state's commitment to work collaboratively

           9        with the Department of Defense to deal with

          10        intrusion efforts, or to postpone encroachment,

          11        I am sorry -- to deal with the encroachment

          12        issues around our military bases.

          13             As you know, with the Governor's

          14        leadership, we have been engaged at the highest

          15        levels with the Pentagon, with the base

          16        commanders in Florida, to make sure that we can

          17        try to marry up our conservation agenda with an

          18        economic development agenda, with a national

          19        security agenda, and this is very good evidence

          20        of that.  We urge you to recommend approval of

          21        this.

          22             COMMISSIONER BRONSON:  Move item 6.

          23             CFO GALLAGHER:  Second.

          24             GOVERNOR BUSH:  Moved and seconded.  Without

          25        objection, the item passes.  This is a great

           1        purchase.

           2             MR. STRUHS:  Thank you.

           3             Item number 7 is an option agreement to

           4        acquire 1500 acres within the Etoniah/Cross

           5        Florida Greenway Project.

           6             This parcel is particularly important to

           7        us because it actually fills in a gap.  We have

           8        got public lands on this greenway and there is

           9        currently a gap in public ownership.  This

          10        fills it in.  And when you are in the business

          11        of building linear facilities, this is very

          12        important to us.  We recommend approval.

          13             GENERAL CRIST:  Motion.

          14             COMMISSIONER BRONSON:  Second.

          15             GOVERNOR BUSH:  Moved and seconded.  Without

          16        objection, the item passes.

          17             David, explain to me when the Cross

          18        Florida Greenway is complete, where do we go,

          19        from where to where when it's complete?

          20             MR. STRUHS:  Where do we go after what?

          21             GOVERNOR BUSH:  From the beginning to the

          22        end.

          23             MR. STRUHS:  The terminus?

          24             GOVERNOR BUSH:  Call it what you would like;

          25        from the start to finish; the Alpha to the Omega.

           1             MR. STRUHS:  From the St. Johns River all the

           2        way to the Gulf of Mexico.

           3             GOVERNOR BUSH:  Where does it hit the Gulf of

           4        Mexico?

           5             MR. STRUHS:  In Inglis.  The Inglis Locks.

           6        Jena Brooks, who is the director of Greenway

           7        Trails, is here.  We don't show her off very often

           8        and she could give you a 30-second overview of

           9        this.

          10             GOVERNOR BUSH:  Sure.

          11             MS. BROOKS:  Thank you, Secretary.

          12             GOVERNOR BUSH:  Show you off?  There is

          13        probably a little better, more professional way of

          14        saying --

          15             MS. BROOKS:  Yes, I think so.  But as the

          16        Secretary was saying, it is from St. Johns River

          17        in Putnum County through Marion County, Levy

          18        County, part of Citrus County, all way to the Gulf

          19        of Mexico and Inglis.

          20             We have over a hundred miles of trails so

          21        far built within those lands that we own, but a

          22        lot of them are circuitous, so they are not

          23        necessarily all connecting from east to west at

          24        this time.  We do have a few gaps in ownership

          25        and we are hoping to acquire some of those

           1        lands over the next couple of years.

           2             GOVERNOR BUSH:  Once you get to Palatka, is

           3        it Palatka where it connects?

           4             MS. BROOKS:  Palatka and St. Johns River,

           5        yes.

           6             GOVERNOR BUSH:  And when you do you think

           7        this will be complete?

           8             MS. BROOKS:  I am sure it will be many years

           9        because, like I say, we do have some gaps in

          10        ownership along the way there.  And this year

          11        funding is minimal for development.  So it will

          12        take some time.  We made a lot of progress in the

          13        last several years though.

          14             GOVERNOR BUSH:  Thank you.

          15             MS. BROOKS:  Thank you.

          16             MR. STRUHS:  I am very proud of all our

          17        management team.

          18             GOVERNOR BUSH:  You should be, David.  Is

          19        there a motion?

          20             CFO GALLAGHER:  Motion on 7.

          21             GENERAL CRIST:  Second.

          22             GOVERNOR BUSH:  Moved and seconded.  Without

          23        objection, the item passes.

          24             CFO GALLAGHER:  Motion to defer number 8.

          25             GOVERNOR BUSH:  There is a motion to defer

           1        item 8.  Is there a second?

           2             COMMISSIONER BRONSON:  Second.

           3             GOVERNOR BUSH:  Moved and seconded.  Without

           4        objection, the item passes.

           5             MR. STRUHS:  Item 9 is an interesting item.

           6             GOVERNOR BUSH:  Yes, it is.

           7             MR. STRUHS:  It's a purchase agreement with

           8        the Nature Conservancy in the Bombing Range Ridge,

           9        Florida Forever Project.

          10             There are 3,645 acres, there are 2,351

          11        already under option by the Nature Conservancy

          12        now.  This is an interesting arrangement where

          13        we would look to enter into an agreement with

          14        the Nature Conservancy to buy into what's

          15        available now as well as further purchases of

          16        the, as yet, unavailable parcels.

          17             Mr. Fountain is here, Keith Fountain, from

          18        the Nature Conservancy, to speak to the issue,

          19        and I would be happy to answer any questions

          20        you might have.  We would recommend approval of

          21        the item.

          22             CFO GALLAGHER:  Motion on 9.

          23             COMMISSIONER BRONSON:  Second.

          24             GOVERNOR BUSH:  Moved and seconded.  Without

          25        objection, the item passes.

           1             MR. STRUHS:  Thank you.

           2             GOVERNOR BUSH:  Thank you, Mr. Fountain, for

           3        your persuasive advocacy.

           4             MR. STRUHS:  I would recommend --

           5             GOVERNOR BUSH:  I am not going to ask how

           6        long it will take to purchase the remaining lots

           7        because --

           8             CFO GALLAGHER:  Neither of us will be here

           9        when that happens.

          10             GOVERNOR BUSH:  Only Charlie Bronson will be

          11        here.

          12             CFO GALLAGHER:  Some of his family.

          13             GOVERNOR BUSH:  Let's put it this way.  This

          14        will be completed after aquaculture becomes the --

          15             CFO GALLAGHER:  Largest --

          16             GOVERNOR BUSH:  By the way, it's another

          17        issue of importance as it relates to our military

          18        base support.  This has strong support from the

          19        folks that operate the Bombing Range.

          20             MR. STRUHS:  In fact, Governor one of the

          21        things we might do when we have a shorter agenda

          22        sometime in the future is give you an overview

          23        strategically on how we are marrying up

          24        conservation initiatives with security and

          25        economic development projects; we could do a

           1        statewide overview.

           2             GOVERNOR BUSH:  That will be great, shorter

           3        agenda.

           4             MR. STRUHS:  Items 10 and 11, I might

           5        recommend for efficiency we might consider items

           6        10 and 11 together.  This is a case where Mr. and

           7        Ms. Cummings illegally filled a 158-square-foot

           8        area of sovereign submerged land and an additional

           9        65 square foot area by the North River Plantation

          10        Homeowners Association.

          11             This would resolve that problem for both

          12        the individuals as well as the association.  It

          13        includes three elements.  It includes

          14        purchasing the land from the state at three

          15        times the appraised value, which is something

          16        that is in the rules.  It requires the payment

          17        of a fine which, in fact, has already been

          18        paid, a 2,500-dollar fine by both the

          19        association and Mr. and Ms. Cummings; and as

          20        well, to finally meet the final element of the

          21        rules to provide a public benefit, and in this

          22        they are purchasing for the state some

          23        additional new survey equipment that's needed

          24        by our Division of State Lands.

          25             So if you take the package together, we

           1        think this is a good resolution, and we

           2        recommend passing items 10 and 11.

           3             COMMISSIONER BRONSON:  Governor, I have a

           4        question on this.  Now are we saying, and I think

           5        I heard this yesterday, we are going to have to do

           6        another survey when they just surveyed last year?

           7        They have to pay for another survey on top of

           8        everything else that they have been required to

           9        do?

          10             MR. STRUHS:  There are some who would suggest

          11        that should be the case.  That's not what I am

          12        recommending here.  I would not recommend that.

          13             COMMISSIONER BRONSON:  I think the survey

          14        from one year ought to hold up.  We have done

          15        transactions with a one-year survey in the past,

          16        and I can't -- they are paying a substantial fine

          17        and everything else, if you will, for the

          18        utilization of that property ahead of approval, so

          19        I think we ought to do it without another survey.

          20             MR. STRUHS:  I agree with you, Commissioner.

          21        Just for the record, we are actually talking about

          22        appraisals, not surveys.

          23             CFO GALLAGHER:  I move 11, subject to any

          24        modified fees determined by an acceptable updated

          25        appraisal, and two, receipt of the transit located

           1        marker.

           2             GENERAL CRIST:  Second.

           3             GOVERNOR BUSH:  There is a motion and second?

           4        Commissioner Gallagher, your motion is the same as

           5        the agenda item or have you modified it?

           6             CFO GALLAGHER:  10 and 11 has that

           7        modification that's being recommended by the

           8        Trustees.

           9             GOVERNOR BUSH:  Approval with a waiver of the

          10        updated appraisal, meaning you are waiving the

          11        cost of the appraisal?

          12             CFO GALLAGHER:  No, they have to get the

          13        appraisal but not the -- the appraisal remains as

          14        was --

          15             MR. STRUHS:  Right, using utilizing the

          16        existing appraisal.

          17             GOVERNOR BUSH:  It's the waiver to not have

          18        to do the appraisal.

          19             CFO GALLAGHER:  Right.

          20             GOVERNOR BUSH:  Commissioner -- General,

          21        question?

          22             GENERAL CRIST:  I do.  I want to make sure I

          23        understand what happened here, Mr. Secretary.

          24        Could you explain the facts?

          25             MR. STRUHS:  Yes.  And I would also invite

           1        Mr. Tim Rach of our staff -- we'll show Tim off --

           2        to answer any of the detailed questions, but

           3        General, essentially this was an instance in which

           4        some homeowners filled in a parcel of land that

           5        was formerly submerged sovereign land.  It was

           6        contiguous to their single family home.  They did

           7        that without a permit, and they did on that land

           8        that clearly was not theirs.

           9             There was also a smaller parcel adjacent

          10        that was actually owned by the homeowners

          11        association.  This is a dock facility.

          12             In order to resolve that problem, the

          13        rules are pretty clear, the rules are that

          14        there is a fine and in both cases they paid the

          15        fine of $250,000.  And now to actually make the

          16        state whole they would buy the land from the

          17        state; that price is set again by rule which is

          18        three times the appraised value, and they have

          19        agreed to do that.

          20             And then the third element is there has to

          21        be some public benefit, and the public benefit

          22        in this case would be their contribution of

          23        some new surveying equipment to the state for

          24        our use.

          25             GOVERNOR BUSH:  What kind of equipment are

           1        they going to give the state?

           2             MR. STRUHS:  That is why we invited Mr. Rock

           3        up here.

           4             MR. RACH:  Good morning.  The surveying

           5        equipment that we are talking about in terms of

           6        meeting the public interest requirement is a wide

           7        range of material that the Aquatic Preserve staff

           8        will use in surveying or assessing maybe coral

           9        reef areas, where they would set permanent markers

          10        that they can use year after year to analyze the

          11        areas, can be assessing wetland boundaries.  So

          12        it's surveying equipment that they can -- it can

          13        be stakes, it can be tape, measuring equipment,

          14        that will be used by the aquatic preserve staff on

          15        the national areas.

          16             CFO GALLAGHER:  To locate a marker?

          17             MR. RACH:  Yes.

          18             GOVERNOR BUSH:  General --

          19             GENERAL CRIST:  It's kind of interesting to

          20        me.  These individuals illegally expanded their

          21        property, so to speak, and now we are going to

          22        sort of consummate the deal.  I am not sure I

          23        understand.

          24             CFO GALLAGHER:  They said they got misled.

          25             GENERAL CRIST:  That's why I am asking what

           1        the facts are.

           2             CFO GALLAGHER:  The homeowners association

           3        told them they could do it, so they did it and

           4        then they couldn't do it, so the people --

           5             GOVERNOR BUSH:  Let me just go through how

           6        this works, just to put it from the perspective

           7        the Cummings, who I don't know; they may be the

           8        most wonderful people in the world, they may be

           9        the opposite.

          10             But here's how this works.  For 158 square

          11        feet -- now we are not talking about a lot.

          12        First of all, back to the appraisal questions,

          13        I am not sure with 158 square feet, what you

          14        can do anything with, has the same value as the

          15        rest of the property that already has a home on

          16        it on the waterfront.  But put that aside for a

          17        second.  That's a debate for a shorter agenda

          18        as well.

          19             They paid $2,500 for an appraisal.  That's

          20        extraordinary, in my opinion, the cost; $855

          21        for an application to DEP -- welcome to

          22        government -- a 3,000-dollar penalty, which is

          23        the rules that we, I guess, deal with.  They

          24        did a $385 survey, this is their prorated

          25        expense; I assume the homeowners association

           1        got wacked for the rest of it.  They have an

           2        updated appraisal of $1,800, which I suggest we

           3        should waive, my own personal opinion; and then

           4        we take the appraised value, which is

           5        debateable whether 158 square feet attached to

           6        a lot has that value, and multiply it times

           7        three, so that's $9,480.

           8             And then the public interest requirement

           9        is the transit locater for $932.  And they

          10        built -- all they are trying to do I guess --

          11        the motive here, I am not passing judgment;

          12        maybe they had bad motives, maybe they were

          13        told they could do this.  A lot of people

          14        actually don't know all the rules of

          15        government.

          16             I know that comes as a surprise to people

          17        up here.  So they are paying 17 -- under your

          18        proposed suggestion, $17,152 to pay for

          19        something they already filled, whether they did

          20        it knowingly or not -- look, I am not passing

          21        judgment on their motives.

          22             We are mean-spirited -- for 158 square

          23        feet.  Then the homeowners association I guess

          24        has another little -- they get a taste of

          25        government, too.

           1             CFO GALLAGHER:  Because they got caught.  I

           2        hate to think how many of these things happen out

           3        there that didn't get caught.  If we knew that, of

           4        course, they would be caught.

           5             COMMISSIONER BRONSON:  I am just glad we are

           6        not having to pay that price for state land at 158

           7        square feet, what they are paying on this.  They

           8        made a mistake.  They admitted they made a

           9        mistake.  They are willing to do these -- to

          10        clarify it, to go ahead and pay the fines and do

          11        all the things we are requiring them to do.

          12             I just -- the only thing I had a hang up

          13        on was making them go back and resurvey the

          14        thing after it's only a year old.  I doubt if

          15        that 158 feet has changed much in the last

          16        year.

          17             CFO GALLAGHER:  It will give them the extra

          18        feet.

          19             GOVERNOR BUSH:  The motion is to approve the

          20        agreement.

          21             CFO GALLAGHER:  Without a new appraisal and

          22        without a new survey.

          23             GOVERNOR BUSH:  And we want receipt of the

          24        transit locater.  There is a motion and second.

          25        Any other discussion?

           1             Without objection, the item passes.  Tell

           2        the Cummings, if you see them, that we feel

           3        their pain.

           4             And on item 11, was your motion for 10 and

           5        11?

           6             CFO GALLAGHER:  Yes.

           7             MR. STRUHS:  Thank you.

           8             Item number 12, the mayor of the city

           9        Pahokee, Mr. Sasser, wanted to be here, but

          10        unfortunately could not make it.  He did send a

          11        letter.  If I could ask the letter be shared,

          12        if it hasn't already been shared.  You should

          13        have with you a letter from Mr. Sasser.

          14             This item again is sort of an interesting

          15        one.  There is a marina facility at the City of

          16        Pahokee that preexisted any kind of state

          17        leasing arrangement for these kinds of

          18        sovereign submerged lands.  It's a permit that

          19        goes back to the 1950s.

          20             The proposal here, because they are

          21        looking to convert this from a public facility

          22        to one that they would have a joint venture

          23        with a private entity, they are now looking to

          24        essentially modernize that arrangement and to

          25        seek a standard 25-year sovereignty submerged

           1        land lease for the 401,361 square feet for that

           2        marina.

           3             There are some other requests that are

           4        attached to that.  They would like to see that

           5        the lease fees be based strictly on the

           6        6 percent annual rental from the wet slips, and

           7        they would also seek a request of waiver of the

           8        annual fee that we charge for extended term

           9        leases, 25-year term lease.

          10             Our recommendation on this item following

          11        the strict interpretation of the rule as they

          12        currently exist is we would seek your approval

          13        of the conversion of that old outdated

          14        permitting system to a new modern lease system;

          15        the 25-year extended lease, we would recommend,

          16        again based on the rules, the denial of the

          17        proposed modified fee structure, and to also

          18        deny the waiver of the annual extended term

          19        lease fee.

          20             Of course, you as the Board of Trustees

          21        can waive your own rules.  But we are

          22        recommending to you what, in fact, is in the

          23        rules as they currently exist.

          24             COMMISSIONER BRONSON:  Governor, I have a

          25        question on this.

           1             GOVERNOR BUSH:  Yes, Commissioner.

           2             COMMISSIONER BRONSON:  The area in question

           3        here, which is the Pahokee area, I believe and I

           4        don't remember whether this is a front porch

           5        Florida community or not.

           6             GOVERNOR BUSH:  It's an area of critical --

           7             COMMISSIONER BRONSON:  But it is a very -- an

           8        area where they are really struggling right now,

           9        so one part of Palm Beach County that is

          10        struggling right now to do business of any type

          11        that can help their community.

          12             And I think we need to, within reason we

          13        need to work with them on this so that they can

          14        bring in either sports fishing and other

          15        businesses to the area that will help their

          16        community out.

          17             But I would like to make a motion to give

          18        a 10-year lease, with the lease fees strictly

          19        on the 6 percent of the annual rental value

          20        from the wet slips area and for five years,

          21        lease fees will be brought back to the Board of

          22        Trustees for reevaluation; if they are doing

          23        better, if they are -- so it gives the board,

          24        whoever is here in five years, it gives the

          25        board a chance to review that, there's most

           1        likely to be sunsetting on laws of the state.

           2             CFO GALLAGHER:  Can I ask a question?  Our

           3        normal deal is the 6 percent of the gross dockage,

           4        is that what we normally do?

           5             MR. STRUHS:  It's complicated and I might ask

           6        for help from Mr. Rock on this.  But if it is a --

           7        it is one of these formulas where you pay

           8        whichever is greater of the two.  It's either

           9        based on 12 cents per square foot or a percentage,

          10        whichever is greater.  And in this case, they

          11        would seek the benefit of the flat rate.

          12             CFO GALLAGHER:  Okay.  I understand.  I

          13        thought it might have been both.  And, therefore,

          14        I was going to lean toward maybe raising the

          15        percentage a little bit.  But if it's one or the

          16        other, which is higher, we are going to basically

          17        take it for granted over some period of time the

          18        6 percent will be higher.

          19             GOVERNOR BUSH:  Exactly.

          20             CFO GALLAGHER:  Otherwise, I am a little

          21        concerned about precedent setting by doing this.

          22        I think we need to say we are doing this because

          23        of the area of critical economic concern is why we

          24        are making this exception.

          25             GOVERNOR BUSH:  Absolutely.

           1             CFO GALLAGHER:  With that, I will second the

           2        motion.

           3             GOVERNOR BUSH:  There is a motion to --

           4        repeat the motion again, to approve the lease.

           5             COMMISSIONER BRONSON:  10-year lease, with

           6        the lease fee based on the 6 percent.

           7             GOVERNOR BUSH:  And a review after five.

           8             COMMISSIONER BRONSON:  And a review after

           9        five years by the board.

          10             CFO GALLAGHER:  We are waiving the ground

          11        lease fee, minimum fee, because it is an area of

          12        critical economic concern.

          13             MR. STRUHS:  That's perfectly --

          14             GOVERNOR BUSH:  Motion and second.  Any

          15        discussion?  Would the lessee like to come and

          16        speak?  You don't have to.  You are not required

          17        to, if you don't want to.

          18             MR. SPRAGUE:  I just have one question.

          19        Would it also -- the discount for being open for

          20        the public on a first come, first serve, would

          21        that still apply?  That's my only question.

          22             Normally what we do today on any public

          23        marinas that are open, on public first

          24        come/first served, there is a discount

          25        regardless, whether it's square footage or

           1        whether it's based on the 6 percent.

           2             CFO GALLAGHER:  What do you mean by discount?

           3             MR. XX:  We discount submerged land fees to

           4        marinas that are open to the public on a first

           5        come/first serve basis.

           6             CFO GALLAGHER:  There are no submerged land

           7        fees, so how are you going to discount that?

           8             MR. SPRAGUE:  Well, we do it on the

           9        6 percent, we do it either way, 6 percent of gross

          10        or square footage.  In 1821, that's how the rule

          11        is presently applied.  For clarification to us --

          12             CFO GALLAGHER:  What does the discount amount

          13        to?

          14             MR. SPRAGUE:  It's one-third, sir.

          15             CFO GALLAGHER:  So now we are down to

          16        4 percent.

          17             MR. SPRAGUE:  That's correct.

          18             GOVERNOR BUSH:  If they have a threshold, if

          19        they stay above the threshold of public use.

          20             MR. SPRAGUE:  90 percent.

          21             CFO GALLAGHER:  That means 90 percent of

          22        first come/first served?

          23             MR. SPRAGUE:  Yes.  The only reason why it

          24        was 90 is because we thought some marina owner may

          25        want his own boat in a slip, and that was the

           1        rationale.  I sat on the TAC committee with --

           2             CFO GALLAGHER:  I think he would be the first

           3        come, if he owns the marina.

           4             GOVERNOR BUSH:  First come reserved, is what

           5        he is trying to avoid.

           6             CFO GALLAGHER:  He would be the first guy

           7        there for the boat slip.

           8             GOVERNOR BUSH:  This is embedded in our

           9        existing rules, so the answer to the question is

          10        the motion is included.

          11             MR. SPRAGUE:  Thank you very much.  We have

          12        got a great uphill battle in the Glades.  We are

          13        trying to bring tourism into an agricultural area,

          14        and we appreciate the state's assistance to the

          15        city and both our group in trying to cause

          16        economic development within the city.  Thank you.

          17             CFO GALLAGHER:  One of the reasons that I

          18        certainly go along with Commissioner Bronson on

          19        this is unfortunately there are times over the

          20        past years and in the future where you can't do

          21        much boating because the lake is way down, and

          22        they wouldn't be in too good of business there.

          23        So this helps with that, too.

          24             MR. STRUHS:  Governor, I would ask that

          25        before you cast your vote on this, that I might

           1        offer another suggestion for your consideration.

           2             If the desire of the board is to keep the

           3        fees as low as possible, so this has a good

           4        start, one thing that you might consider is a

           5        five-year lease rather than a 10-year lease.

           6        The way the rules are written, is if it's

           7        anything more than a five-year lease, there is

           8        a 10 percent surcharge.  It's called the

           9        extended -- there is a 25 percent surcharge.

          10             CFO GALLAGHER:  Who makes the rules?

          11             GOVERNOR BUSH:  Must have been another

          12        Cabinet.

          13             MR. STRUHS:  It was your predecessors, I am

          14        sure.

          15             But the point is seeing the direction you

          16        want to go in, which is to moderate the fees,

          17        you could make this a five-year lease rather

          18        than a 10-year lease; and given Commissioner

          19        Bronson's suggestion that they come back in

          20        five years anyway to review the fee structure,

          21        by doing that, you could probably further

          22        reduce their burden.

          23             GOVERNOR BUSH:  How about if it's a

          24        five-years lease with an option to renew for five

          25        years?

           1             CFO GALLAGHER:  But with Cabinet approval.  I

           2        make a substitute motion, five years.

           3             GOVERNOR BUSH:  At least they know that they

           4        have a longer term commitment, 10 years being

           5        better than five.  I assume there is going to be

           6        investments in this, and the whole point of this

           7        would be to --

           8             MR. STRUHS:  We can do that, sir, and that

           9        would again give them the benefit of a 10-year

          10        planning horizon.

          11             COMMISSIONER BRONSON:  I will second the

          12        substitute amendment.

          13             GOVERNOR BUSH:  There is a substitute

          14        amendment to approve this for a five-year lease

          15        with an option to renew, subject to Cabinet

          16        approval, for an additional five years.  And there

          17        is a second.  Any other discussion?  The item

          18        passes without objection, as amended, or as

          19        substituted.

          20             MR. STRUHS:  Thank you very much.

          21             GOVERNOR BUSH:  Good luck.  We are showing

          22        the letter from the Mayor of Pahokee, his

          23        stationery is really interesting.  On the bottom

          24        it says, "Palm Beach County's Other Coast."  I

          25        love that.

           1             CFO GALLAGHER:  Coast to Coast, Palm Beach

           2        County.

           3             GOVERNOR BUSH:  The West Coast of Palm Beach

           4        County.  Item 13.

           5             MR. STRUHS:  We are recommending approval

           6        this, subject to the special lease conditions and

           7        the payment of $7,945.35.

           8             This is a good opportunity for us because

           9        it closes in a gap between two existing

          10        commercial marinas.  We have staff available to

          11        answer any questions you might have.

          12             CFO GALLAGHER:  Motion on 13, staff's

          13        recommendations.

          14             COMMISSIONER BRONSON:  Second.

          15             GOVERNOR BUSH:  Moved and seconded.  Without

          16        objection, the item passes.

          17             MR. STRUHS:  Item 14, recommending approval

          18        of this item, subject to special lease conditions

          19        and the payment of $3,632.02.

          20             I would point out that we do have Mr. Pat

          21        Rose here from the City of Manatee who would

          22        like to speak to it, Mr. Rick Cantrell from the

          23        DEP district office is also available to answer

          24        questions, and has I think has a couple of

          25        visuals to share with you.

           1             The Florida Fish and Wildlife Commission

           2        has come on record as supporting this proposed

           3        project, in a large measure because Lee County,

           4        in fact, has demonstrated significant progress

           5        in terms of advancing their manatee protection

           6        plan.

           7             We believe that there is an important

           8        public benefit attached to this, specifically

           9        improved seagrass protection through improved

          10        enforcement, access, public education and

          11        signage, and in doing it in the right places in

          12        the right way.

          13             So we would recommend approval of the

          14        item.  Mr. Pat Rose would like to speak to it

          15        and Mr. Rick Cantrell has got some items.

          16        Maybe Rick should go first.

          17             GENERAL CRIST:  Mr. Secretary, who did you

          18        say came out strongly approving it?

          19             MR. STRUHS:  Florida Fish and Wildlife

          20        Commission.

          21             GENERAL CRIST:  Thank you.

          22             MR. CANTRELL:  Good morning, Governor,

          23        Members of the Cabinet.

          24             We bring many projects to you all that

          25        have public interest associated with them.

           1        This one I think is very, very good because

           2        this area is, this expansion of this marina is

           3        in an aquatic preserve, but it's in an area of

           4        aquatic preserve that was originally dredged in

           5        1926.  And if I could have the older aerial.

           6             This is a 1953 aerial photography of the

           7        same site.  The area we are talking about is

           8        this dredged area and this dredged channel

           9        known as Wilson's Cut.  As you can see,

          10        tremendous seagrass beds here in Pine Island

          11        Sound.

          12             You go today, the same area, there is a

          13        large marina to the north of the proposed site.

          14        And through time, people have taken the

          15        opportunity to not use the dredged channel but

          16        take a cut off to the south across the shallow

          17        water, and they scarred the seagrass area in

          18        this area.

          19             The public interest that is being proposed

          20        by this applicant is to put this sign this size

          21        in a kiosk at this facility to educate boaters

          22        about the value of seagrass beds and how to

          23        avoid impacting them.

          24             He is also putting a similar kiosk at his

          25        other facility in Cabbage Key, a smaller sign

           1        but also again encouraging boaters to be

           2        careful about seagrass beds.

           3             He is also providing the opportunity for

           4        local law enforcement to have a marine officer

           5        present at the site to help with the manatee

           6        speed zones.

           7             So all in all, I think this is a

           8        tremendous opportunity to protect seagrass

           9        beds.  He's also putting this sign, this size

          10        sign, on a piling where people would enter into

          11        the seagrass beds to again suggest to them

          12        there is an alternative means of getting to

          13        deep water.

          14             So all in all, I think this is an

          15        extremely important public interest this

          16        gentleman is providing to the state.

          17             GOVERNOR BUSH:  Okay.

          18             MR. STRUHS:  Mr. Rose.

          19             MR. ROSE:  Good morning, Mr. Governor and

          20        Members of the Cabinet.  I come dearly today to

          21        thank you once again for making this issue

          22        something that we can come and speak to you about.

          23             I actually don't come today to object to

          24        this project.  I really come to thank you for

          25        making sure that these kinds of projects in

           1        counties like Lee County which, because of its

           2        lack of progress since 1989, with what it has

           3        done, has brought us to a point where there

           4        has, by judgment been made by the commission,

           5        that they made substantial progress.

           6             I submit to you that mostly it's

           7        substantial progress because they had done so

           8        little.  Unlike a number of the other counties

           9        since 1989 and then 2000, when you made this

          10        issue a prominent issue for the people of

          11        Florida, three other counties have finished

          12        their protection plans, including Brevard

          13        County.  They took that measure seriously and

          14        they responded.

          15             We hope that Lee County is going to do the

          16        same and bring that issue forward.  I wanted to

          17        remind you that recently, last winter, the Fish

          18        and Wildlife Conservation Commission did an

          19        assessment of the manatee population, looking

          20        at the future risks.  And they are looking at

          21        as much as 50 percent of the population being

          22        lost in the next 45 years.

          23             Even more recently the United States Fish

          24        and Wildlife Service through the Potassa

          25        Research Laboratory, has done an assessment of

           1        the population statewide and they are

           2        indicating that the population will not likely

           3        be able to be recovered within the next 100

           4        years.

           5             Within that report, they have also

           6        indicated that there is a clear indication that

           7        southwest Florida, of which Lee County and this

           8        project is housed, there is a decline in the

           9        manatee population.

          10             Having said all of that, I think that -- I

          11        hope that the message has been sent that we

          12        need to get people back together, begin working

          13        together.

          14             And in that vein, we have looked at this

          15        particular project.  And as I said, we didn't

          16        come here to object to the project because I

          17        think when you look at its individual merits,

          18        its location, the number of slips and those

          19        kinds of things, they are the kind -- it's the

          20        kind of facility that as these manatee

          21        projection plans are finished and have already

          22        been accomplished in other counties, that we

          23        would be looking at a reasonable project for

          24        boating expansion, and particularly when you

          25        are looking at a situation where you have an

           1        existing facility that's choosing to expand in

           2        a reasonable fashion.

           3             But I would hope and urge you in closing

           4        to continue to let Lee County know that their

           5        failure to plan has created really a mess in

           6        southwest Florida, particularly in Lee County,

           7        and one of which we have prepared and are

           8        trying to work hard to solve so that we can see

           9        a balance between manatee protection, which has

          10        been as I said documented in a declining

          11        situation, as well as total -- as well as the

          12        boat mortality.

          13             And I urge you to just continue that

          14        dialogue and pressure so that the inappropriate

          15        projects are not approved and that the

          16        protection plan is finished and we can get on

          17        with both protecting manatees and having

          18        responsible, sustainable growth.  Thank you.

          19             GOVERNOR BUSH:  Thank you, sir.  Any other

          20        discussion?

          21             CFO GALLAGHER:  I will move item 14, subject

          22        to special lease conditions, and the payment of

          23        $4,822.98.

          24             COMMISSIONER BRONSON:  Second.

          25             GOVERNOR BUSH:  There is a motion and a

           1        second.  Without objection, the item passes.

           2             MR. STRUHS:  Thank you.

           3             Item number 15, we recommend approval

           4        subject to lease conditions and the payment of

           5        $788.80.

           6             This is an opportunity to have a fishing

           7        tournament in the Destin area.  It is a 30-day

           8        tournament.  The permit would allow them to run

           9        the 30-day permit -- 30-day tournament for

          10        three individual years.

          11             It is the preemption of approximately

          12        60,000 square feet, more or less, for temporary

          13        dockage of boats for the tournament during

          14        those 30 days.

          15             This would involve the installation of 108

          16        pilings and the creation of 42 new temporary

          17        slips.  Our staff has recommended approval of

          18        the item.

          19             CFO GALLAGHER:  Motion on 15.

          20             COMMISSIONER BRONSON:  Second.

          21             GOVERNOR BUSH:  There is a motion and a

          22        second.  Without objection, the item passes.

          23             MR. STRUHS:  Governor, on items 16 and 17,

          24        they are separate items, but you might consider

          25        them in tandem in that they are somewhat related.

           1             In both cases, item 16 and 17, the holder

           2        of a 10-year sovereignty submerge land lease

           3        agreement is here to seek removal of special

           4        lease conditions, those conditions essentially

           5        limiting their ability to come back and ask for

           6        amendments or changes to those underlying

           7        leases.

           8             We have a number of speakers.  We have

           9        Mr. Gregory Radlinski, who is the attorney for

          10        the City of Jacksonville, they are here to

          11        speak in support of our recommended denial.

          12             We also have Ms. Beatrice Gamble on

          13        item 16 and I believe Mr. Wiley Andreu on item

          14        number 17.

          15             I invite Mr. Radlinski to speak first

          16        since he will speak to both items 16 and 17

          17        collectively.

          18             GOVERNOR BUSH:  Welcome.

          19             MR. RADLINSKI:  Good morning, my name is Greg

          20        Radlinski, I am with the City of Jacksonville,

          21        Office of General Counsel.

          22             I am here to advise you that the city

          23        supports the department's recommendation of

          24        denial of the agenda items 16 and 17 and

          25        objects to the relief requested by the Gambles

           1        and the Andreus.

           2             I also have with me Mr. Bob Baughman, who

           3        is the deputy director of the city's Department

           4        of Parks, Recreation and Entertainment.  The

           5        city owns the property immediately to the west,

           6        I believe it is, of the Andreu docks.  It's a

           7        public park called Mandarin Park where we are

           8        going to be building a state-funded boat ramp.

           9             We object on two bases.  First of all, the

          10        Andreus' lease conditions which they seek to

          11        avoid at this point stem from the 1982

          12        settlement of an administrative hearing, and

          13        that settlement was signed by Ms. Frances

          14        Ferber, Ms. Ferber is the person who sold us

          15        the property that became our park.  We,

          16        therefore, are the successors in interest to

          17        her interest in the settlement agreement.

          18             We do not believe that you could approve

          19        the change of the settlement and the lease by

          20        removing the conditions without Ms. Ferber's

          21        concurrence and, therefore, without ours.  The

          22        city does not give that concurrence.

          23             Additionally, as I said, we are building a

          24        public boat ramp with state funds on our park,

          25        and we are concerned about the increased

           1        boating activity at the docks owned by the

           2        Gambles and by the Andreus.  They are asking

           3        you to remove those conditions so that

           4        ultimately, at some point in time, they may

           5        come back to you and ask for more sovereign

           6        submerged lands and increase their activities.

           7             And once we open our boat ramp, we are

           8        concerned about the activities that will happen

           9        in Julington Creek with expanded boat ramps,

          10        expanded docks and with our new boat ramp.

          11             Now additionally, I want to point out, if

          12        I may, that at the aides' meeting Mr. Andreus

          13        mentioned that he voluntarily agreed to the

          14        special conditions, and his comment was that

          15        that was over 20 years ago and times have

          16        changed.

          17             Over 20 years ago, with the city's

          18        predecessor's approval, he and the Gambles got

          19        benefits they might not have otherwise obtained

          20        at the expense of restrictions they now seek to

          21        avoid.

          22             If you grant these requests, they keep

          23        their 20-year old benefits and are relieved of

          24        the burdens of their deal without the

          25        consequence and at the expense of the adjacent

           1        landowner, Ms. Ferber's successor in interest,

           2        the City of Jacksonville.

           3             If I may I believe Mr. Baughman would like

           4        to address the issue of the boat ramp.

           5             MR. BAUGHMAN:  Thank you.  Governor and

           6        Members of the Cabinet, I am Bob Baughman, deputy

           7        director with the Department of Parks, Recreation

           8        and Entertainment with the City of Jacksonville.

           9             Back in 1989, the City of Jacksonville

          10        purchased this 36-acre park from Frances F.

          11        Ferber for the purpose of putting in a public

          12        boat ramp.  Because funds at the time were

          13        limited, we actually built the park in three

          14        phases.

          15             First and second phase of the projects

          16        have been completed.  We have various picnic

          17        pavilions, a fishing pier, there was an

          18        agreement to actually reduce the size based

          19        upon objections of the neighbors, and those two

          20        phases are completed.

          21             In 2001, we applied for a grant from the

          22        Florida Inland Navigation District in the

          23        amount of $18,000.  The city matched that grant

          24        with 32,000 of its own funds for completing of

          25        phase one or design of the boat ramp.

           1             For the 2003-2004 budget cycle for the

           2        Florida Inland Navigation District we have

           3        recommended, approved by resolution by the

           4        Jacksonville City Council, to request

           5        appropriation of $82,000 from the Florida

           6        Inland Navigation Districts in which we'll

           7        match 82,000 of city money for the purpose of

           8        constructing a boat ramp.  We are currently at

           9        90 percent design of that project.

          10             The purpose has been from the purchase of

          11        the park to construct the boat ramp, and we

          12        feel that additional boat traffic in that area

          13        will impede upon the safety of the boaters and

          14        will also impede upon the operation of our

          15        public access boat ramp.

          16             Thank you for your consideration.

          17             GOVERNOR BUSH:  Can you remind me what

          18        appropriation -- was this a line item in the

          19        budget?

          20             MR. BAUGHMAN:  This is through Florida Inland

          21        Navigation Districts.

          22             GOVERNOR BUSH:  I am talking about the state.

          23        Wasn't there reference to the state having --

          24             MR. BAUGHMAN:  Just through the Florida

          25        Inland Navigation District.  The actual park

           1        property was bought with some funds from the

           2        federal government.

           3             GOVERNOR BUSH:  The boat ramp, how about

           4        that?

           5             MR. BAUGHMAN:  Florida Inland Navigation

           6        District.

           7             GOVERNOR BUSH:  Thank you.

           8             MR. STRUHS:  It would be helpful, I put

           9        the --

          10             GOVERNOR BUSH:  Can I ask one more question?

          11        Maybe I misunderstood, but is it the contention of

          12        the city that, irrespective of what we do here

          13        today, you have -- you have to approve, you have

          14        to concur?

          15             MR. RADLINSKI:  That's our opinion, sir, that

          16        we are party to the settlement agreement that

          17        resulted in the changed conditions or the special

          18        conditions in the leases.  And no one has ever

          19        come to the City of Jacksonville and asked:  Do

          20        you have any objection to our removing this lease?

          21             GOVERNOR BUSH:  That's an interesting point.

          22        Does DEP concur with that?  I assume you take it

          23        they haven't --

          24             MR. STRUHS:  I am going to our attorney to

          25        respond to that question, sir.

           1             MR. VIELHAUER:  Good morning, Bud Vielhauer,

           2        deputy counsel for Public Lands.

           3             It's a little bit complicated, the

           4        settlement agreement.  What we got is a

           5        settlement agreement with the Board of

           6        Trustees, the City of Jacksonville, Wiley

           7        Andreu and Beatrice Gamble.

           8             There is a subsequent agreement between

           9        Melvin Andreu, Wiley Andreu, and Beatrice

          10        Gamble in 1986.  That is the settlement, or

          11        agreement where the condition is that they will

          12        not come back to the board and ask for any

          13        further extensions.

          14             The City of Jacksonville was not a party

          15        to that particular agreement.  However, there

          16        are in the 1984 settlement agreements, there

          17        are conditions that say how the other parties,

          18        the Gambles and the Andreus, will park their

          19        boats and where they will put those.

          20             It's my opinion that they can't really

          21        enforce this, us taking up this special lease

          22        condition, but if the Gambles and Andreus come

          23        back later on and ask for an actual change to

          24        the lease and ask for approval to start

          25        changing the lease and where they are going to

           1        put the boats, then the City of Jacksonville

           2        has stand to come in and challenge and prevent

           3        them from doing that.

           4             CFO GALLAGHER:  So what are we doing here?

           5        What we are doing is the first step, which it

           6        looks like:  Okay, let us out of 30A and 30C, and

           7        so we can do that.

           8             But then when they come back for an

           9        extension, you guys are going to get in the

          10        middle of that say say:  Okay, fine, so we are

          11        not in that lease, but we are not going to go

          12        along with the extension or we are going to go

          13        depending --

          14             MR. VIELHAUER:  It would be my legal

          15        recommendation that when they come back and ask

          16        for an expansion, that we not grant any further

          17        expansions of the lease, because we are a party to

          18        that agreement and ultimately the City of

          19        Jacksonville is also and they would have standing

          20        to challenge that and be successful, I would

          21        think.

          22             CFO GALLAGHER:  Instead of getting the

          23        first -- I think we ought to, as a Cabinet, if

          24        that's true because -- everybody agree?  David,

          25        you agree that the City of Jacksonville has to be

           1        involved in additional slips?

           2             MR. STRUHS:  I rely on my legal counsel on

           3        that question.

           4             CFO GALLAGHER:  You agree?

           5             GOVERNOR BUSH:  Does the City of Jacksonville

           6        agree with that assessment?

           7             MR. RADLINSKI:  Governor, we believe we've

           8        got standing right now to complain about removing

           9        the conditions.

          10             GOVERNOR BUSH:  Assuming for a moment that --

          11        that's not the question.  The question is, you

          12        also agree that you have that they would have to

          13        have your approval to modify the lease or modify

          14        the marina?  Assuming you're wrong on the first

          15        part, but you are comfortable on the second part?

          16             MR. RADLINSKI:  We'll say yes, sir.

          17             GOVERNOR BUSH:  I am not saying that you are

          18        wrong on the first part.  I am not suggesting

          19        that; it's not for me to actually have a legal

          20        opinion.  Are we going to hear from --

          21             MR. STRUHS:  Yes.  We will take them in

          22        order.

          23             GOVERNOR BUSH:  How many people are here to

          24        speak?

          25             MR. STRUHS:  As far as I can tell, we have

           1        two.  We have Ms. Gamble on item 16 and Mr. Andreu

           2        on item 17.

           3             GOVERNOR BUSH:  Okay.  Ms. Gamble.  How are

           4        you doing?

           5             MS. GAMBLE:  Scared to death.

           6             GOVERNOR BUSH:  Oh, come on, I heard you done

           7        so well in the Cabinet aides' meeting, they warned

           8        me not to fall pray to your spell.

           9             MS. GAMBLE:  I appreciate that, but I don't

          10        know what's knocking worse, my knees or my heart.

          11             GOVERNOR BUSH:  Oh, come on, you will be

          12        fine.  Can I give you a little piece of advice?

          13             MS. GAMBLE:  Please do.

          14             GOVERNOR BUSH:  Out of this Cabinet, there

          15        are more people -- you know more about this

          16        subject than all of us combined, so that should

          17        give you some confidence to speak.

          18             MS. GAMBLE:  If I can find my voice.

          19             The purpose today is to ask you to delete

          20        special conditions, special lease conditions

          21        30C in my submerged land lease.

          22             In the packet you have just received this

          23        morning I will attempt to explain how this item

          24        was added to the first renewal of my land lease

          25        and not in the original land lease.

           1             The original land lease was voted

           2        unanimously to be passed.  I think I would like

           3        to use the overhead.

           4             One thing, notice you can't see it, but

           5        these boats are sailboats, so they are

           6        slow-moving vessels.  And when it comes to the

           7        ramp at the park, I doubt they will hit it

           8        because of the manatee.  When they tried to get

           9        it, they were voted down flat.  All the owners,

          10        land owners got together and got a lawsuit; I

          11        don't think they will ever get a ramp in.  And

          12        I doubt seriously --

          13             CFO GALLAGHER:  Could you speak to the

          14        microphone?  There are people on the Internet

          15        trying to hear what you are saying.  Let somebody

          16        else put the map up for you or your article or

          17        whatever.

          18             MS. GAMBLE:  Okay.  Notice that the date on

          19        this, if you can see it, is Wednesday, July 3,

          20        1985, the day after the Cabinet meeting approved

          21        my --

          22             GOVERNOR BUSH:  Who is the handsome looking

          23        guy?

          24             MR. STRUHS:  Very young Bob Graham.

          25             MS. GAMBLE:  You mean Governor Graham?

           1             GOVERNOR BUSH:  Didn't recognize him there.

           2             MS. GAMBLE:  There is a paragraph I would

           3        like to read you from this.

           4             CFO GALLAGHER:  Governor, that's the way your

           5        hair looked when you first got elected.

           6             MS. GAMBLE:  Better that, than the

           7        alternative, you know.

           8             A paragraph in this item says the Gambles

           9        provided the Cabinet with copies of letters

          10        from Jacksonville city council members,

          11        legislators, the Jacksonville Chamber of

          12        Commerce and business and civic groups

          13        supporting the extension of the marina citing

          14        the need for additional docking slips at

          15        Julington Creek.

          16             Graham said it was these letters that

          17        convinced him an exception should be made for

          18        the project because the Gambles showed there

          19        was a need for the facility.

          20             The next item is just the agenda item and

          21        this, the aides got this complete packet.  I am

          22        sorry, I didn't bring another complete packet

          23        for you to view.

          24             And the next item is the original lease.

          25        And then the next item is the renewed -- lease

           1        renewal in 1991.

           2             GOVERNOR BUSH:  The question at hand is, the

           3        big question is, you promised not to come back and

           4        modify the lease, isn't that right?

           5             MS. GAMBLE:  No, sir.

           6             GOVERNOR BUSH:  No?  Oh.

           7             MS. GAMBLE:  Oh, wait, when?

           8             GOVERNOR BUSH:  Back when Bob Graham didn't

           9        have gray hair.

          10             MS. GAMBLE:  Yes, sir.  That is the May 30

          11        agreement that you have?

          12             GOVERNOR BUSH:  Yes, ma'am.

          13             MS. GAMBLE:  You have the letter from DEP on

          14        April 10 where they cited that special condition

          15        28E, the lessee and future heirs and assigns

          16        further agree that any present or future rights to

          17        object to the adjacent structures are hereby

          18        waived and this expansion as approved represents

          19        the maximum allowable facility and/or expansion or

          20        other actions will be requested or approved.

          21             Now the three people that signed this

          22        agreement got together last Friday and we

          23        signed another agreement.  You notice the May

          24        30 agreement says, by virtue of this agreement,

          25        the parties involved hereby dismiss all pending

           1        administrative challenges and waive any present

           2        and future rights to object to the structures

           3        and facilities depicted on the attached

           4        drawing.  The parties also hereby agree that no

           5        expansions to the structures shown on the

           6        attached drawing shall be proposed or

           7        requested.

           8             Gamble and Andreu agree that no boats --

           9        and that goes on to the particulars in there.

          10        And it is signed by Melvin Andreu, Mandarin

          11        Holiday Marina, then I signed it as Julington

          12        Creek Pier and Wiley Andreus signed it as Bull

          13        Bay Pier.

          14             Now the next item you have got in your

          15        packet -- well, this is the drawing that

          16        accompanied that agreement.  And then the next

          17        item is the agreement signed last Friday or May

          18        9th, 2003, between myself, Wiley and Melvin.

          19             These are brothers.  You have to know that

          20        there is seven of us, or was seven of us, and

          21        we were all so emotionally involved and we knew

          22        what was there and what could be developed and

          23        we all wanted to do it so badly, but we just

          24        were too involved to accomplish it.  But that's

          25        why it took all these years to get it done.  I

           1        think it was from '78 to '92, '91, '92 before

           2        it was finally accomplished.

           3             CFO GALLAGHER:  Did you all talk to each

           4        other during this period of time?

           5             MS. GAMBLE:  In a fashion.  It was very

           6        difficult, very difficult for us.

           7             CFO GALLAGHER:  So you are the sister that

           8        brought everybody back together?

           9             MS. GAMBLE:  Well, I hope.  I am next to the

          10        oldest in the family.

          11             GOVERNOR BUSH:  We'll find out when the

          12        brother comes to speak.

          13             MS. GAMBLE:  It was very trying.  But on this

          14        agreement where we agreed to undo and to solve the

          15        problem that we did on the first agreement here --

          16        and you notice the city is not party to this

          17        agreement.  It's just between we kids.

          18             And then on May 9th, A, Gamble, Andreu and

          19        Andreu are owners of adjacent property along

          20        Julington Creek, commonly known as Julington

          21        Creek Pier 3, Bull Bay Pier and Mandarin

          22        Holiday.

          23             B, Gamble, Andreu and Andreu have entered

          24        into various agreements affecting Bull Bay,

          25        Pier 3 and Mandarin Holiday.

           1             And 3, and this is one of the clinchers,

           2        among the agreements affecting the piers are

           3        special lease conditions under paragraph 30 of

           4        the sovereign submerged land lease which

           5        restrict modifications to the piers.

           6             And D, the parties have realized the

           7        agreements have created a severe burden on

           8        their heirs and successors and desire to modify

           9        the terms of their agreements entered into in

          10        connection with the leases in accordance with

          11        the terms of the agreement.

          12             Now, therefore, in consideration of good

          13        and valuable consideration, the receipt of

          14        which is acknowledged, the parties agree as

          15        follows:

          16             1, the parties previously agreed by

          17        agreement dated May 30th, 1986 -- you have the

          18        copy -- that quote, no expansions to this

          19        structures shown in the attached drawings shall

          20        be proposed or requested, unquote.  The

          21        structures as referred to on said agreement are

          22        the piers as referenced herein.

          23             Paragraph 2, the parties agree that the

          24        prohibition against expansion to the structures

          25        as set forth and the May 30, 1986, agreement is

           1        hereby deleted.

           2             And 3, this agreement sets forth the full

           3        understanding of the parties with respect to

           4        this matter.

           5             We all three signed it, the same that

           6        signed the original agreement and our

           7        signatures are notarized.  You have two copies

           8        and then you have a reduced copy for your

           9        records.

          10             GOVERNOR BUSH:  Ma'am, maybe we can cut to

          11        kind of the important part here.  As I understand

          12        it, you've committed that you are not going to

          13        expand beyond where you are now; you are not

          14        building additional capacity.

          15             You want to be able to operate -- correct

          16        me if I am wrong -- you want to operate your

          17        marina or your slips in compliance with the law

          18        and right now you are out of compliance?

          19             MS. GAMBLE:  Yes, sir, but that will require

          20        an expansion to do that.  I will be glad to show

          21        you.

          22             GOVERNOR BUSH:  Okay.  I thought you just

          23        said you guys all agreed that you wouldn't expand?

          24             MS. GAMBLE:  No, it says we agreed to delete

          25        that phase so we can expand.

           1             GOVERNOR BUSH:  Oh.

           2             MS. GAMBLE:  Very definitely.

           3             GOVERNOR BUSH:  You got to agree with us on

           4        that, right?

           5             MS. GAMBLE:  Yes.

           6             GOVERNOR BUSH:  Okay.  Good.

           7             COMMISSIONER BRONSON:  I do have a question

           8        here, and I am trying to piece all this together

           9        too because it's getting a little bit confusing

          10        here.

          11             The original agreement not to expand was

          12        between the siblings, and each of the marinas

          13        would not request an expansion so that all

          14        three of the marinas remained basically the

          15        same.  That was the original agreement, is that

          16        correct?

          17             MS. GAMBLE:  Yes, sir.

          18             COMMISSIONER BRONSON:  There was never any

          19        mention that I have seen, unless someone has a

          20        copy that I have not seen yet, that the city or

          21        Duval County has made any mention they would not

          22        be allowable to any expansions -- or their

          23        approval, I haven't seen anything where the county

          24        or the city has said that there will be no

          25        expansion, other than what was agreed to by the

           1        siblings involved in this marina situation brought

           2        to the Cabinet.

           3             MS. GAMBLE:  That's correct.

           4             COMMISSIONER BRONSON:  Okay.  At least I got

           5        that part of it straight.

           6             So now what you are saying is that the

           7        brothers and the sister have gotten together

           8        now and decided that maybe they want to delete

           9        that original agreement that you made

          10        personally with one another?

          11             MS. GAMBLE:  Yes, sir.

          12             COMMISSIONER BRONSON:  Okay.  I am caught up

          13        now.

          14             CFO GALLAGHER:  I am with you on all that.

          15        At the end of the dock, you have placed vessels

          16        that weren't part of the lease, is that correct?

          17             MS. GAMBLE:  One on either side, two of them,

          18        yes.

          19             CFO GALLAGHER:  Any inside next to the land?

          20             MS. GAMBLE:  Yes, sir.

          21             CFO GALLAGHER:  Has everybody done that or

          22        just you?

          23             MS. GAMBLE:  I am the only one, and the

          24        reason is this.  You will notice this area right

          25        here is a pier that was built there by daddy years

           1        before he gave us the property.

           2             CFO GALLAGHER:  You need to be to the

           3        microphone, if you will.

           4             GOVERNOR BUSH:  Think of all those Internet

           5        people.

           6             MS. GAMBLE:  That short pier was built by my

           7        father years before he gave us the property.  And

           8        because of that pier jutting out in front of my

           9        riparian, I had to go 165 feet into the water and

          10        then make an L turn in order to get around that

          11        pier to go on towards the channel.  That's why the

          12        L shape in the pier.

          13             Now Mandarin Holiday has since taken that

          14        pier up, so that leaves this 165 feet wide open

          15        for my use.  It's directly in front of me.

          16        It's on the east side of my pier.  Wiley and

          17        Bull Bay is on the west side of my pier, and

          18        the park is on the west side of my pier.

          19             CFO GALLAGHER:  Okay.  I understand all that.

          20        So what you did when that pier came out, you put

          21        more vessels in there?

          22             MS. GAMBLE:  Well, one by one people started

          23        coming in.  We had some --

          24             CFO GALLAGHER:  They didn't come in without

          25        you collecting any money from them, did they?

           1             MS. GAMBLE:  I didn't start collecting money

           2        until just recently, and I paid the state

           3        6 percent supplemental on every dime that came in.

           4        And I will show you in this packet how I did that.

           5             CFO GALLAGHER:  Nobody is questioning that.

           6             MS. GAMBLE:  What are you going to do when

           7        they are standing there and all this space, and

           8        they are saying, I want to be on the water, and

           9        there is room.  What do you do?

          10             GOVERNOR BUSH:  Again, your intention here is

          11        not so much to build additional space, you already

          12        built space out beyond your lease?

          13             MS. GAMBLE:  Yes, sir.

          14             GOVERNOR BUSH:  Okay.  And you are leasing --

          15             MS. GAMBLE:  No, sir, I haven't built space.

          16        The boats are there.  I haven't put in piling.  I

          17        haven't put in slips.

          18             GOVERNOR BUSH:  Let me restate that.  You're

          19        leasing to owners of sailboats.

          20             MS. GAMBLE:  They are pontoon boats that draw

          21        about 12-inches of water.

          22             GOVERNOR BUSH:  You are leasing boats in

          23        property you don't lease?

          24             MS. GAMBLE:  Yes.

          25             GOVERNOR BUSH:  Okay.  We got that

           1        established that's not legal.  So you are seeking

           2        a modification of the lease not to build

           3        additional space, but to get good with the state?

           4             MS. GAMBLE:  Yes, sir.

           5             GOVERNOR BUSH:  Okay.  And you got a fine to

           6        pay, I assume?

           7             MS. GAMBLE:  Yes, sir.  I have been cited.  I

           8        have not paid a fine yet.

           9             GOVERNOR BUSH:  You paid your rent on space

          10        that you didn't lease?

          11             MS. GAMBLE:  Yes, sir.

          12             GOVERNOR BUSH:  That you earned income on, so

          13        you show good faith there?

          14             MS. GAMBLE:  Yes, sir.

          15             GOVERNOR BUSH:  You are not expanding; you

          16        don't want to expand, and you realize if you did

          17        expand, it would require the approval of the city?

          18             MS. GAMBLE:  Yes, sir.

          19             GOVERNOR BUSH:  Okay.  We are making

          20        progress.

          21             MS. GAMBLE:  I suppose it would.  They are

          22        not adjacent to me.  They are within the footage.

          23             CFO GALLAGHER:  Is the city still here?  I

          24        would like to ask the city a question.

          25             MR. RADLINSKI:   Yes.

           1             CFO GALLAGHER:  Do you have any -- do you

           2        believe the city has any disagreement or problem

           3        with us allowing her to lease the existing dock

           4        space that those pontoon boats are sitting on?

           5             MR. RADLINSKI:  As a practical matter, it

           6        probably wouldn't make any difference because the

           7        boats are fairly small, and we are only talking

           8        about a very small area at the end of the dock.

           9        We are also only talking about a very small area

          10        landward of the large portion of the dock.

          11             What concerns us most is relieving her of

          12        the special conditions which would permit her

          13        to build out whatever she wanted to.  And

          14        contrary to her statement, I believe -- and I

          15        think that the state will agree with me -- that

          16        the settlement that was reached in '84 that

          17        Ms. Ferber signed pretty much limits them to

          18        the footprint that they currently have.

          19        Although we didn't sign the document, we are

          20        successors to Ms. Ferber.

          21             CFO GALLAGHER:  Let me ask you this.  It is

          22        my desire not necessarily to -- maybe not change

          23        3A and 3C, but to allow a change in the lease that

          24        would let that property be leased.  She would pay

          25        the fine, she would pay for the property that she

           1        has been using and that would be it.  What would

           2        the city say to that?

           3             MR. RADLINSKI:  That's acceptable.

           4             CFO GALLAGHER:  That's acceptable.

           5        Therefore, Governor, I would like to allow --

           6        leave the lease the way it is, but allow in

           7        addition to it, which would be the land that is

           8        now being used, the owner would pay the fine,

           9        would pay any rent in arrears, and we move on.

          10             GOVERNOR BUSH:  There is a fine motion.

          11             COMMISSIONER BRONSON:  I can second that.

          12             GOVERNOR BUSH:  Is there a second?  Any other

          13        discussion?  We need anybody else to speak?

          14             You need to speak now.  You got a deal

          15        here I think you will probably -- was that your

          16        brother?

          17             MS. GAMBLE:  That's my husband.

          18             GOVERNOR BUSH:  He doesn't need to speak,

          19        does he?

          20             MS. GAMBLE:  He had a stroke.

          21             GOVERNOR BUSH:  I am sorry to hear that.  Any

          22        other speakers?

          23             MS. GAMBLE:  He always did this and I did not

          24        have to.

          25             GOVERNOR BUSH:  There is a motion and second.

           1        Any other discussion?  Without objection, the item

           2        passes.

           3             MR. STRUHS:  Governor, I was going to say

           4        before you vote, if we can have just a 15,

           5        30-second recess, 30 seconds.

           6             GOVERNOR BUSH:  Okay, the item hasn't passed

           7        yet.

           8             MR. STRUHS:  Actually, Governor, if you would

           9        like, we can temporarily pass it and come back to

          10        it.  We just want to make sure that everybody

          11        agrees that what you want to do is going to be

          12        accomplished.

          13             CFO GALLAGHER:  We wouldn't want to do

          14        anything that wasn't illegal.

          15             MR. STRUHS:  You can temporarily pass it and

          16        we can focus on item 17 and come back and we'll

          17        resolve that.

          18             GOVERNOR BUSH:  This, by the way, is for both

          19        leases.  Okay?

          20             MR. ANDREU:  I would like to speak.

          21             GOVERNOR BUSH:  How come you didn't chime in?

          22        All right.  There is a motion and a second.  And

          23        there is additional discussion.  Please, who are

          24        you?

          25             MR. W. ANDREU:  I am Wiley Andreu, owner of

           1        Bull Bay Pier.

           2             GOVERNOR BUSH:  Could you get the microphone

           3        a little bit closer to you?  I am sorry, say who

           4        you are again.

           5             MR. W. ANDREU:  Wiley Andreu, owner of Bull

           6        Bay Pier and I am to the west of the Gamble Pier

           7        and adjoining property to Magnum Park.

           8             GOVERNOR BUSH:  How are you related?

           9             MR. W. ANDREU:  Brother.

          10             GOVERNOR BUSH:  Okay.

          11             Which pier is yours again, could you

          12        point?  Okay.

          13             MR. W. ANDREU:  The west one.

          14             GOVERNOR BUSH:  Okay.  Recognize, sir, that

          15        you may take victory from -- you may create defeat

          16        from the jaws of victory here, but go ahead and

          17        talk.

          18             MR. W. ANDREU:  I think you pretty well

          19        covered most of the items I was going to address.

          20        The only thing that was important to me for the

          21        first paragraph, if I can read it, please, it

          22        says:  We have an unusual situation with three

          23        adjoining but separate facilities being owned and

          24        operated by family members.

          25             GOVERNOR BUSH:  Yes, it is quite unusual.

           1             MR. W. ANDREU:  More specifically brothers

           2        and sisters.  This was the cause of agreements

           3        that resulted in special lease conditions

           4        number 30A, B and C.  See attached pages for this.

           5             And the 30 condition C was generated, I

           6        think you pretty discussed it by now, but it

           7        was generated by the first paragraph, the last

           8        sentence of the three principal parties,

           9        Mandarin Holiday Marina, Wiley Andreu and

          10        Beatrice Gamble.

          11             These agreements were done so that we

          12        could proceed forward as one and in accord

          13        whenever we made application to the state for

          14        these leases or modifications for the lease.

          15        And these we have now -- of course, this was in

          16        1984, the original agreement, settlement

          17        agreement between B. Gamble, myself and the

          18        Department of Natural Resources, and Ms. Ferber

          19        was a part of that agreement by way of my

          20        request for her to be a part of that agreement.

          21             She was my, to her west, adjoining

          22        property owner, and I wanted to be certain that

          23        she was comfortable with the location of these

          24        piers as they projected in the waterway of

          25        Julington Creek, and give her an opportunity at

           1        that time to express her concern to agree or

           2        disagree with riparian structures of these

           3        piers.

           4             That's the reason why, if you look at

           5        paragraph 10 of that settlement agreement, it

           6        addresses Ms. Ferber's concern, and it states

           7        that she is -- she has the right, she has

           8        viewed the locations of these structures, and

           9        she agrees with these locations principally, if

          10        we agree that she has the same right to build a

          11        structure, similar configuration and all, and

          12        that was the part, that was the only part she

          13        has in this agreement.

          14             The first paragraph in that agreement says

          15        Ms. Ferber is not a party in this agreement.

          16        She was made a party so she would have a right

          17        to enforce any objections to the riparian

          18        structures on the water's edge of these piers.

          19        That's the only connection she had with it.

          20             GOVERNOR BUSH:  Mr. Andreu, can I ask you a

          21        question, sir?  I am sorry to interrupt, but are

          22        you supportive of the concept that Commissioner

          23        Gallagher proposed?

          24             MR. W. ANDREU:  Sir, I would, but now that we

          25        have gotten older and we have created a real

           1        burden here, the three of us created tremendous

           2        burden for our heirs and successors.  If they

           3        are -- if the law changes, everything changes.

           4        When this was done, this was a two-lane highway;

           5        it's now a six-lane highway.  So I want to undo

           6        the burden we placed on our heirs and successors.

           7             GOVERNOR BUSH:  Wouldn't Commissioner

           8        Gallagher's resolution satisfy that?  Because you

           9        would get good with your lease; your lease would

          10        not be out of compliance and your heirs would have

          11        something that would not have a conflict with the

          12        city or the state?  I am missing something, I

          13        guess?

          14             CFO GALLAGHER:  My guess is what you would

          15        like to do is have these taken out so that you or

          16        your heirs could move those docks right on out

          17        into the water.  Is that what you are trying to

          18        do?

          19             MR. W. ANDREU:  Sir, I don't think with the

          20        guidelines that's in effect now by DEP and with

          21        the ratio waterward with respect to the shoreline

          22        and with the guidelines that are now in place,

          23        that would never get before the Governor and

          24        Cabinet.

          25             GOVERNOR BUSH:  Back to my question.

           1        Wouldn't Commissioner Gallagher's resolution,

           2        which he is going to restate here in a second, I

           3        just want to make sure that we are accomplishing

           4        is what you want without giving you the right to

           5        expand out further into the water as he suggested.

           6        Does that help your heirs?

           7             MR. W. ANDREU:  Well, unless conditions

           8        changed the situation later on, the people or you

           9        folks may somewhere along the line, where the law

          10        is changed again and you are allowed to make some

          11        increase to what structures you have --

          12             GOVERNOR BUSH:  You would have to come back

          13        and get approval from the city and from the state

          14        then.  But what we are suggesting, I think,

          15        accomplishes your problem of creating a problem

          16        for your heirs.

          17             MS. GAMBLE:  Governor Bush, the area that

          18        Wiley would like to develop is on the east side of

          19        his pier from that jog to shore, because the

          20        settlement agreement years ago was they just took

          21        my pier and flipped it over and gave it to him.

          22             And now you will see the area from this

          23        jog to shore, is what he would like to use.

          24        This right here, on the east side of his pier.

          25        And boats would come down the channel and to

           1        the mouth.  That's on the east side of my pier,

           2        that first 165 feet, and the boats would come

           3        down that channel.  That's not addressed in

           4        that motion, that that be done.

           5             GOVERNOR BUSH:  In the resolution?

           6             MS. GAMBLE:  Yes, sir.

           7             GOVERNOR BUSH:  No, because we would ask you

           8        to come back I think and seek approval for that

           9        and seek approval from the City of Jacksonville.

          10        I believe that would be the intent of the

          11        resolution.

          12             CFO GALLAGHER:  Let me -- I am going to read

          13        the motion which the lawyers say is what we need

          14        to do here at this point.  And then we can discuss

          15        that so we are all talking about the same thing.

          16             And my motion is to amend the condition

          17        30C solely for the limited purpose of allowing

          18        the lessees to apply to modify their leases to

          19        allow moorings within the current footprint.

          20             GOVERNOR BUSH:  That means you have to also

          21        make good the conditions outside of their lease.

          22             CFO GALLAGHER:  I guess this footprint --

          23             GOVERNOR BUSH:  I liked the first resolution

          24        better.  Don't let the lawyers screw it up.

          25             CFO GALLAGHER:  That's going to allow the

           1        dock footprint which boats can use that.

           2             MR. W. ANDREU:  30A just addresses the area

           3        between the elbow and the landward lay between the

           4        Gamble pier and Andreu pier.

           5             GOVERNOR BUSH:  By the way, when you are

           6        pointing at that screen --

           7             MR. W. ANDREU:  30A addresses this area

           8        between these two piers, between the elbow and the

           9        uplands, this area here.

          10             CFO GALLAGHER:  Do you have boats moored

          11        there now or docked there now?

          12             MR. W. ANDREU:  There is none there.  There

          13        was; there is none there.  I was cited for that

          14        area, and I removed those boats.

          15             CFO GALLAGHER:  What our goal here is that

          16        without adding any dockage, you can use those

          17        areas that you were cited for, that's not putting

          18        any -- the footprint of the dock you have, you can

          19        put boats on that where they fit, but you can do

          20        any more than that.  That is what this amendment

          21        is to do, is to allow you to put boats on the

          22        footprint of the dock where they would fit.

          23             And that's what you would apply for a

          24        lease for to the department.  We are going to

          25        eliminate that section 30C to allow you to do

           1        that.  Nothing else.

           2             So both of you would be allowed to do it

           3        to each of your docks.  And the department will

           4        accept an application for you to expand that;

           5        you have to pay the fines, and you will pay the

           6        new lease amount when you add that to it.

           7             It does not throw out those agreements

           8        because we just -- at least I don't feel that

           9        we ought to throw out the agreement; leave that

          10        as it is, but allow you to use the part that is

          11        usable on that dock today, which you are not

          12        able to use under your lease.

          13             GOVERNOR BUSH:  We want to make what you are

          14        doing legal.

          15             CFO GALLAGHER:  Legalize what you are doing

          16        and pay the fines, et cetera.  Can you go along

          17        with that?

          18             MS. GAMBLE:  Yes, sir.  Thank you so much.

          19             CFO GALLAGHER:  That's what this group is all

          20        about.  I think everybody will be happy with that

          21        and we can move on.  And we got the instructions,

          22        right, David?  Although we haven't moved and

          23        seconded it.

          24             GOVERNOR BUSH:  There is a motion and a

          25        second.  Yes, David.

           1             CFO GALLAGHER:  We'll make it 30A and C to

           2        allow the use of the dock where it can be used;

           3        they may apply to you for that; they will pay past

           4        fines; they will pay in the new lease what they

           5        have to pay for rent; that's the motion.

           6             GOVERNOR BUSH:  There is a motion and a

           7        second.  Any other discussion?  All in favor say

           8        aye.

           9             THE CABINET:  Aye.

          10             GOVERNOR BUSH:  All opposed?

          11             CFO GALLAGHER:  That was for 16 and 17, is

          12        that correct, David?

          13             MR. STRUHS:  Yes.

          14             CFO GALLAGHER:  16 and 17, because that's got

          15        both leases.

          16             GOVERNOR BUSH:  Thank you all for coming.

          17        Ms. Gamble, you were very persuasive.  The Cabinet

          18        staff was absolutely, correct.  You take care of

          19        your husband.

          20             MS. GAMBLE:  Thank you.

          21             GOVERNOR BUSH:  How sweet.

          22             MR. STRUHS:  Item number 18 is consideration

          23        of an application for 22 acres for a dredged

          24        federal navigation channel.  The local sponsor for

          25        this project is Dixie County.  It would also

           1        authorize the severance of approximately

           2        112,000 cubic yards of material, authorize the

           3        construction of a 400-foot long bulk head, and

           4        also a public easement granted to Dixie County to

           5        spoil, approximately 17 and a half acres of

           6        sovereign submerged lands, and to place wave

           7        energy attenuating artificial reef structures.

           8             That's the request.  Our recommendation is

           9        to approve the navigation channel, authorize

          10        the severance, authorize the bulk head, and to

          11        deny the fourth element, which is the 17 and a

          12        half acre spoiling along Cat Island.

          13             If I might explain the rationale for our

          14        position.  This is a project that we support.

          15        We think it would bring some good economic

          16        development to this community.

          17             On the fourth element of this proposal,

          18        though, we believe that it is inappropriate to

          19        use the Big Bend Aquatic Preserve seagrass area

          20        as a disposal site.  As you know, this is an

          21        item that has been before you a number of

          22        times.  The struggle has been to find a

          23        suitable disposal site.

          24             We believe that we have now come up with

          25        an opportunity or an option that might be

           1        beneficial to all the parties.  If I can just

           2        give you a little bit of a history.

           3             One of the things we are working on

           4        independent of this project is to clean out

           5        some of the sand mounds that have been built up

           6        along the floodplain of the Apalachicola River.

           7        As we are looking to move that sand out of

           8        those berms along the Apalachicola River, we

           9        have done some research in terms of the cost of

          10        loading it on to barges and actually using it

          11        as a beneficial product in other parts of the

          12        state for beach renourishment.

          13             We learned a lot about the cost and

          14        suitability of barging that kind of material

          15        out of this part of the state.  We believe that

          16        rather than spoiling the 17 and a half acres in

          17        the Big Bend Aquatic Preserve, that this

          18        material, as part of the excavation, could be

          19        barged to either an offshore disposal site off

          20        Tampa, or actually be used for some beach

          21        renourishment either in that vicinity, Keaton

          22        Beach and other environs further south.

          23             So we would recommend, again, approving

          24        the first three elements, authorizing the

          25        channel, authorizing the severance, authorizing

           1        the bulk heading, but to not approve the fourth

           2        element.  And indeed that will then prompt the

           3        project sponsors, Dixie County and the Corps of

           4        Engineers, to pursue this other means of spoil

           5        disposal.

           6             Would be happy to speak to that if you

           7        have any additional questions.

           8             We do have a number of speakers who would

           9        like to speak to this, both some for and some

          10        against.  We have got five in opposition and

          11        five in support.  And we also have Eric Draper

          12        from the Audubon Society who I think is

          13        somewhere in the middle.  So why don't we ask

          14        Eric to go first and we'll hear from the

          15        opposition and from the support?

          16             In the interest of time, what I would

          17        suggest is that we set a marker of about a

          18        minute per person and we'll be done in about 11

          19        or 12 minutes.

          20             GOVERNOR BUSH:  All right.  Thank you. Eric.

          21             MR. DRAPER:  I am an opponent.

          22             MR. STRUHS:  I am sorry, so we have six

          23        opposed and five in support.

          24             COMMISSIONER BRONSON:  If I can ask this

          25        question, it might simplify and get this done a

           1        little quicker here.

           2             Is the opposition mostly because of the

           3        spoilage on Cat Island, or is it the opening of

           4        the navigational channel itself, so that we --

           5             MR. STRUHS:  It's more fundamental to the

           6        project itself.  It's not limited only to

           7        disposal.

           8             COMMISSIONER BRONSON:  Okay.  I thought it

           9        might speed things up if we knew exactly --

          10             GOVERNOR BUSH:  Nice try.

          11             MR. STRUHS:  What I would like to do is I am

          12        going to read out the names.  If the guests could

          13        queue up in this order and be prepared to move

          14        through this pretty quickly.  Mr. George Anderson,

          15        Stan Meeks, Jeff Wiggins, Annette Long, David

          16        Burnsed and then Eric Draper.

          17             GOVERNOR BUSH:  Good morning, welcome.

          18             MR. ANDERSON:  Good morning, Governor, good

          19        morning, Cabinet.  My name is George Anderson. I

          20        represent the Friends of the Great Suwannnee Reef.

          21        I am a resident of Suwannee, Florida.  I am a

          22        business owner, owner of Anglers Resort, a marina,

          23        RV park, cafe and lodging unit.

          24             Friends of The Great Suwannee Reef is a

          25        nonprofit organization dedicated to the

           1        education and the protection of the Suwannee

           2        Delta.

           3             The question from the very beginning is:

           4        Why dredge from McGriff Channel?

           5             In August of 1999, Congressman Allen Boyd

           6        said:  Now that we have obtained authorization

           7        for dredging, I am looking forward to working

           8        with the Army Corps of Engineers and the

           9        Suwannee Water Management District to ensure

          10        that this stretch of the Suwannee River becomes

          11        a safe and reliable waterway for commercial and

          12        recreational boats.

          13             In August 2001, officials with the Corps

          14        stated that the dredging was essential for the

          15        safety of boats moving into the Suwannee River

          16        during sudden storms.

          17             In February 2002, the Suwannee River Water

          18        Management District announced they were no

          19        longer sponsors for the dredging and the Dixie

          20        County Board of County Commissioners were the

          21        sponsors.

          22             In January 2003, the application before

          23        you now states that the reason for the dredging

          24        is resource protection.

          25             Why McGriff Pass should not be dredged:

           1        Number 1, larger boats come and go now, except

           2        on extreme low tides and then only till the

           3        tide changes.  Most commercial fishing boats in

           4        this area are shallow draft boats.

           5             Two, boat safety.  For offshore fishing

           6        boats as noted on this map, 20 miles offshore

           7        or further, it is closer to Horseshoe Beach

           8        where the dredged channel or Cedar Key channel

           9        than it is to Suwannee.  The reason is is the

          10        bend in the coastline there.

          11             You didn't have that on that map.

          12             The Corps said that the project must be

          13        justified economically and environmentally.

          14             No report has been made available to us

          15        after several phone calls, e-mail requests,

          16        visits to the Suwannee River Water Management

          17        District Office in Live Oak, DEP office in

          18        Jacksonville, and a request from the Corps.

          19        Let me talk about economics.

          20             GOVERNOR BUSH:  Mr. Anderson, you are nearing

          21        the end of your discussion?

          22             MR. ANDERSON:  Yes, sir.

          23             GOVERNOR BUSH:  Okay.  It's a little bit more

          24        than a minute so far, but keep going.

          25             MR. ANDERSON:  What was the question, sir?

           1             GOVERNOR BUSH:  I thought we --

           2             A SPEAKER:  You are over a minute.

           3             GOVERNOR BUSH:  You are taking away from the

           4        rest of the people who may want to speak.

           5             MS. ARMSTRONG:  No, I don't want to take away

           6        from the rest of them, but I think that we are

           7        opposed to the channel for a number of reasons,

           8        and I think that our -- I think our position is

           9        justified, sir.  I appreciate your time.

          10             GOVERNOR BUSH:  Thank you very much.  Hope

          11        your business is going well.

          12             MR. MEEKS:  I am Stan Meeks.  I am a trained

          13        manatee observer.  My work is accepted as credible

          14        by the Florida Park Service, U.S. Geological

          15        Survey Sarina project.

          16             I would like to speak against this

          17        dredging project and for the manatees.  One of

          18        first things I heard about this dredging

          19        project was the safety of the manatees; going

          20        to dig a deeper trench.  On the surface they

          21        say they have more room to escape, more room to

          22        roll out from under the boats that pass under

          23        them.

          24             You dig a deeper ditch, you are going to

          25        allow larger draft vessels to come in and out

           1        of the Suwannee River.  Right now commercial

           2        vessels can enter in 5 feet or less draft; it's

           3        not a problem.

           4             Of the four years I spent on the Suwannee

           5        River, I verified over 5,000 manatee sightings,

           6        I verified 141 that returned to Manatee Springs

           7        annually, I have seen some manatee births and I

           8        have seen some manatee deaths.

           9             The point I would like to make in the last

          10        of my little time is there is not much left of

          11        the old Florida coastline, about 148 miles of

          12        it.  It starts about Cedar Key and goes north.

          13        148 miles of coastline is about 0.04 percent of

          14        the original Florida coastline that's

          15        undeveloped.

          16             This area is also in the Aquatic Preserve.

          17        This is the largest estuary on both coasts of

          18        the United States of America.  It's already

          19        protected by the Suwannee River naturally.

          20             Other than that, if you all would have

          21        questions, I will be happy to answer them.  I

          22        abbreviated my presentation, I am a little off

          23        key.

          24             GOVERNOR BUSH:  You did really well.  You got

          25        a cool job, too, by the way.

           1             MR. MEEKS:  It's not a job; it's volunteer.

           2             GOVERNOR BUSH:  Volunteer?  What do you do

           3        for a living?

           4             MR. MEEKS:  I am a partially disabled Vet.

           5             GOVERNOR BUSH:  Very good.  You do good work.

           6             MR. MEEKS:  I got to pay my taxes some way.

           7             GOVERNOR BUSH:  Thank you for coming.

           8             MS. LONG:  Hi, my name is Annette Long and I

           9        live in Levy County, Florida, and I am going to

          10        make this as quick as I can.

          11             I am here to talk today about the sturgeon

          12        that are in the Suwannee River and that utilize

          13        the estuary.

          14             Back in March of this year the Suwannee,

          15        its estuary and the Suwannee Sound were

          16        designated as critical habitat for the

          17        sturgeon.  That is because even though they

          18        have been around for millions of years, they

          19        were overfished and their habitat was reduced

          20        significantly.

          21             The Suwannee River has one of the

          22        healthiest populations of sturgeon in the gulf,

          23        and I believe that if you go messing around

          24        with their feeding area and estuary, you are

          25        going to do some damage to the sturgeon

           1        population.

           2             They don't eat the entire time they are in

           3        the river, and they need what is in the estuary

           4        to survive.  And right now, they are feeding

           5        predominately in the wintertime around the

           6        proposed -- in the area around the proposed

           7        dredge area.

           8             To protect this poor fish that has been

           9        around for millions of years that we have

          10        damaged so badly, I hope you will really

          11        consider this dredge because not only will it

          12        be hurt now when they do the dredge, but this

          13        dredge is going to have to be done over and

          14        over again over the years because Mother Nature

          15        is going to try undo what we done.  And each

          16        time that new dredging is done, it's going to

          17        damage the fish again.

          18             And that's short and sweet.  I hope --

          19        thank you for listening.

          20             GOVERNOR BUSH:  Can I ask a question?

          21             MS. LONG:  Yes.

          22             GOVERNOR BUSH:  Are you more concerned about

          23        the filling around Cat Island being the proposed

          24        spoil?

          25             MS. LONG:  No, I am not.  That is a concern

           1        definitely.

           2             GOVERNOR BUSH:  Is that where the breeding,

           3        is that where the sturgeon --

           4             MS. LONG:  No.  They are all around the

           5        entire sound, excuse me, and when you -- they eat

           6        things that grow in the muck and sand on the

           7        bottom.  And when you dredge that up, you have

           8        totally changed the dynamics; not to mention when

           9        you dredge one hole deeper, it's going to change

          10        the salinity in all the other passes.

          11             So just because you are just dredging this

          12        one pass, you are affecting the sturgeon's feed

          13        in all the other parts of the estuary.  So

          14        that's my concern.

          15             GOVERNOR BUSH:  It's the dredging itself

          16        rather than the location of the fill?

          17             MS. LONG:  Uh-huh.  And of course, the silt

          18        from dredging is also going to not just stay where

          19        it's at; it's going to go out and it's going to

          20        cover up some of their food further out in the

          21        sound.

          22             GOVERNOR BUSH:  Thank you.  Thanks for coming

          23        up.

          24             MR. BERKOWITZ:  My name is David Burnsed, I

          25        am a homeowner in Suwannee.  I am a native, born

           1        and raised and lived all my life in the State of

           2        Florida.  I seen many changes.

           3             GOVERNOR BUSH:  Where do you live, sir?

           4             MR. BERKOWITZ:  In Suwannee, town of

           5        Suwannee, I have my home there.

           6             Over the years I've seen many changes, and

           7        I hate to say I've seen a lot of Florida's

           8        natural beauty that has been lost; lost forever

           9        my.  My grandchildren and future generations

          10        will not be able to see.

          11             I bought a place in Horseshoe Beach back

          12        in '73 which is just also north of Suwannee.

          13        And I like to hunt and fish.  After I retired

          14        as a state employee, University of Florida,

          15        about 31 and a half years I sold my house in

          16        Gainesville and Horsehoe and bought a place in

          17        Suwannee so I could be there all the time.

          18             I hope all of you have had a chance to

          19        ride on the Suwannee River to see its natural

          20        beauty.  I would hate to see any dredging of

          21        extra saltwater or anything coming in to

          22        destroy any of the natural beauty.  Because I

          23        feel proud to take any family and friends to

          24        see what Florida really looks like.

          25             So I ask that you do not approve the

           1        dredging of the McGriff Pass so we will not

           2        take a chance of losing the natural beauty of

           3        the Suwannee River delta.  Thank you very much.

           4             GOVERNOR BUSH:  Thank you, sir.

           5             MR. REGANS:  I am Jeff Regans, I live in

           6        Jacksonville, Florida.  I come before you today as

           7        both a sportsman and a recreational boater.

           8             I have had the privilege of experiencing

           9        all the resources and the beauty of this

          10        pristine ecosystem we all call the Lower

          11        Suwannee Basin.

          12             I am here to plead that you don't allow

          13        this dredging project to proceed, as myself and

          14        many other people who utilize this area feel it

          15        will destroy the fragile balance of habitat so

          16        unique to this preserve.

          17             I want to say that contrary to any other

          18        reports you may have heard, I have witnessed in

          19        numbers and throughout various times of the

          20        year several species of endangered and

          21        threatened animals such as the manatee, the

          22        gulf and shortnose sturgeon, sea turtles of

          23        several different varieties and the American

          24        Bald Eagle who use some of the islands in the

          25        area as nesting sites as well as way too many

           1        reptiles and other amphibians to mention.  The

           2        area is really just abundant in it.

           3             As a sportsman I am concerned that the

           4        dredge will increase the salinity further up

           5        river.  I haven't seen any reports on this, but

           6        it could destroy various plant lives, different

           7        types of oaks that thrive in the area that

           8        animals depend upon to feed off of, which would

           9        send them somewhere else.

          10             As a boater, I own two boats.  One is an

          11        offshore boat for excursions and a small one

          12        for fishing in the flats and playing on the

          13        river.  Offshore I've hit bottom in water a

          14        foot and a half deep four miles off the shore

          15        on some of the various local oyster reefs in

          16        the area, four miles from the mouth of the

          17        river; some of those reefs are over, wouldn't

          18        you say, over 50 acres in size?

          19             GOVERNOR BUSH:  He doesn't know.

          20             MR. REGANS:  By encouraging the smaller boats

          21        to come in by digging the channel, what you are

          22        doing, it could very well become a common

          23        occurrence, would be groundings with the larger

          24        boats and captains that aren't familiar with the

          25        area; this could create oil spills, destruction of

           1        the reefs and possible harm to human life.

           2             Seagrasses also would suffer.  Islands,

           3        the pumping on the islands that are nesting

           4        sites for sea turtles, we do have a concern

           5        about that.  They have been stressed pretty

           6        well by loss of habitat already.

           7             I guess just in closing, I humbly invite

           8        you to visit this area, enjoy some of the

           9        natural beauty and please vote no on this

          10        project and keep this area as it is intended, a

          11        protected aquatic preserve.

          12             GOVERNOR BUSH:  Thank you, sir, for coming.

          13             MR. REGANS:  Thank you.

          14             MR. DRAPER:  Governor, Members of the Cabinet

          15        my name is Eric Draper, Audubon of Florida.  I am

          16        here on behalf of the members of the chapter in

          17        the area of Suwannee River who have encouraged us

          18        over the years to oppose this navigation project.

          19             The National Audubon Society has been

          20        opposed to navigation projects in many parts of

          21        the country.  We consider these projects in

          22        many cases to be unnecessary, environmentally

          23        destructive and oftentimes just a waste of

          24        money.

          25             There are some places where you don't need

           1        a 6-foot deep, 75-foot wide navigation channel,

           2        that's unnecessary.  You haven't really needed

           3        that in the past, you don't need it right now

           4        and you don't need to offer up the state

           5        sovereign lands in order to make this channel

           6        possible.

           7             So we, of course, support what the agency

           8        is trying to do in terms of not letting us

           9        spoil Cat Island, but we think that this

          10        Congressionally authorized project is

          11        unnecessary.  And you have an opportunity to

          12        step in here and protect the environment.  Just

          13        say no to it by not giving them the sovereign

          14        lands to do the channel.  Thank you very much.

          15             GOVERNOR BUSH:  Thank you.  We have some

          16        proponents?

          17             MR. STRUHS:  Yes, we do, we have some

          18        proponents.  We have Mr. David Still of the

          19        Suwannee River Water Management District, a