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                              The above agencies came to be heard before
                   THE FLORIDA CABINET, The Honorable Governor Bush
                   presiding, in the Cabinet Meeting Room, LL-03, The
                   Capitol, Tallahassee, Florida, on Tuesday, November
                   25, 2003, commencing at approximately 9:00 a.m.

                                        Reported by:
                                      MARY ALLEN NEEL
                              Registered Professional Reporter
                             ACCURATE STENOTYPE REPORTERS, INC.
                                2894-A REMINGTON GREEN LANE
                                 TALLAHASSEE FLORIDA  32308

                              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

                   DIVISION OF BOND FINANCE
                   (Presented by Ben J. Watkins III)
                   ITEM                  ACTION                      PAGE
                   1                     Approved                       5
                   2                     Approved                       5

                   (Presented by Martin Young)
                   ITEM                  ACTION                      PAGE
                   1                     Approved                       6
                   2                     Approved                      11

                   (Presented by Steve Parton)
                   ITEM                  ACTION                      PAGE
                   1                     Approved                      13
                   2                     Approved                      15

                   DEPARTMENT OF REVENUE
                   (Presented by James Zingale)
                   ITEM                  ACTION                      PAGE
                   1                     Approved                      16
                   2                     Approved                      23
                   3                     Approved                      23
                   4                     Approved                      26

                   IMPROVEMENT TRUST FUND
                   (Presented by David Struhs)
                   ITEM                  ACTION                      PAGE
                   1                     Approved                      27
                   2                     Approved                      29
                   3                     Approved                      30
                   4                     Approved as amended           57
                   5                     Approved                      68

                   CERTIFICATE OF REPORTER                             69


             1                     P R O C E E D I N G S
             2                GOVERNOR BUSH:  Division of Bond Finance.
             3                MR. WATKINS:  Item number 1 is the minutes
             4           from the November 12th meeting.
             5                CFO GALLAGHER:  Motion on the minutes.
             6                GENERAL CRIST:  Second.
             7                GOVERNOR BUSH:  Moved and seconded. 
             8           Without objection, the item passes.
             9                MR. WATKINS:  And the final item, number 2,
            10           is the report of award on the competitive sale
            11           of $200,925,000 in Turnpike revenue bonds for
            12           widenings, interchanges, adding SunPass lanes,
            13           and the Turnpike's contribution to the Western
            14           Beltway, Part C, which is part of the interstate
            15           system around the Orlando area.  The bonds were
            16           sold to the low bidder at a true interest cost
            17           of 4.65 percent.
            18                CFO GALLAGHER:  Motion on 2.
            19                COMMISSIONER BRONSON:  Second.
            20                GOVERNOR BUSH:  Moved and seconded. 
            21           Without objection, the motion passes.
            22                MR. WATKINS:  Thank you, sir.
            23                GOVERNOR BUSH:  Thank you.


             1                GOVERNOR BUSH:  Financial Management
             2           Information Board.
             3                CFO GALLAGHER:  Motion on the minutes.
             4                GENERAL CRIST:  Second.
             5                GOVERNOR BUSH:  Moved and seconded. 
             6           Without objection, Item 1 passes.
             7                MR. YOUNG:  Item 2 is the Enterprise
             8           Resource Planning Integration Task Force
             9           recommendations.  We have Don Northam, the staff
            10           director, here to go through the
            11           recommendations.
            12                GOVERNOR BUSH:  Okay.
            13                MR. NORTHAM:  Good morning.
            14                GOVERNOR BUSH:  Good morning.  The ERP.
            15                MR. NORTHAM:  The inelegantly named ERP
            16           Integration Task Force was established by the
            17           FMIS Coordinating Council --
            18                GOVERNOR BUSH:  I love it.
            19                MR. NORTHAM:  -- on August 14th in
            20           accordance with statute.  In its first 100 days,
            21           the Task Force met four times, during which it
            22           adopted a charter, approved a work schedule and
            23           other functional matters, crafted and adopted a
            24           vision statement, and submitted its first set of
            25           recommendations to the FMIB, which I'll be


             1           presenting shortly. 
             2                This slide shows the Task Force and FMIB
             3           membership.  The top row contains the six voting
             4           members, and the bottom row shows the four ex
             5           officio members of the Task Force.  The Task
             6           Force was created by adding the two people shown
             7           in the dotted line box to the FMIS Coordinating
             8           Council.  One of the items I'll be presenting
             9           today on behalf of the Task Force is a
            10           recommendation to modify the membership of both
            11           the FMIB and the Task Force.
            12                The primary mission of the Task Force is to
            13           support the FMIB in facilitating the successful
            14           and efficient integration of the central
            15           administrative and financial management
            16           information systems.  Among the duties the Task
            17           Force is required to perform by statute is the
            18           production of six reports or deliverables.  The
            19           first set of these is shown here.  These
            20           information reports will be prepared and
            21           routinely updated by the Task Force staff and
            22           published on the Web so that all interested
            23           stakeholders can review them.
            24                Deliverable 1 is a list of policies,
            25           processes, and procedures that have to be


             1           changed in order to permit or promote the
             2           integration of the seven ERP subsystems that are
             3           within the purview of the Task Force.
             4                Deliverable 2 is a consolidated list of
             5           technical and functional requirements, which
             6           will be gathered from the members of the project
             7           management teams for these seven systems. 
             8                And finally, Deliverable 3 contains
             9           integration plans and time lines produced using
            10           input from Task Force members.
            11                The three remaining deliverables contain
            12           recommendations and status reports.  When the
            13           Task Force determines that an enterprise
            14           integration issue will or is likely to warrant
            15           executive level action, it will present it to
            16           the FMIB using Deliverable 4.  And I'll be
            17           submitting one of these deliverables to you in a
            18           few moments. 
            19                Recommendations that are adopted by the
            20           FMIB become the subject of Deliverable 5, a
            21           report submitted once each quarter to report to
            22           the FMIB the status of all recommendations that
            23           it has adopted.  The report is then forwarded to
            24           the Executive Office of the Governor and the
            25           House and Senate Appropriation Committees. 


             1                And finally, once each year on January
             2           15th, the Task Force will submit an annual
             3           report and evaluation of integration activities,
             4           along with any recommended changes to the
             5           statute to be considered in the legislative
             6           session.
             7                The Task Force has a staff, of which I am a
             8           member.  Assisting me are Ms. Lori Nolen and
             9           Scott Ward.  We are all state employees assigned
            10           to the Department of Financial Services.
            11                In the left-hand side of this picture -- in
            12           the left- and right-hand sides of this picture,
            13           you can see the seven Enterprise Resource
            14           Planning subsystems that fall within the scope
            15           of the Task Force.  This work group has already
            16           been meeting for about a month, and it consists
            17           of business experts, and in some cases,
            18           technologists, representing the re-engineering
            19           and outsourcing projects that are currently
            20           underway.  The group also is supported by
            21           representatives from the State Technology Office
            22           in the area of enterprise architecture and
            23           technical options. 
            24                This work group forms the core of what
            25           we're calling an Integration Center of


             1           Competence.  These members meet with the Task
             2           Force staff and each other to raise and resolve
             3           issues concerning the integration of these
             4           systems.  Many issues are resolved on the spot
             5           by participants.  Other issues, particularly
             6           those requiring a change in policy or process,
             7           are escalated to the Task Force for resolution. 
             8           And, as I described, the Task Force may in turn
             9           escalate issues to the FMIB.
            10                Finally, the Integration Center of
            11           Competence is also supported by key stakeholders
            12           shown here that have knowledge and insight
            13           relevant to the success of Task Force endeavors.
            14                Subject to your questions, that concludes
            15           my brief on the Task Force.
            16                GOVERNOR BUSH:  Any questions?
            17                Can you give us a time line on these
            18           projects, how we're doing?
            19                MR. NORTHAM:  Well, we're studying that
            20           right now, Governor, and we should have --
            21                GOVERNOR BUSH:  You're studying the time
            22           line?
            23                MR. NORTHAM:  Yes, sir.
            24                GOVERNOR BUSH:  When will you have the time
            25           line? 


             1                MR. NORTHAM:  We're going to have that
             2           ready for you when we come back on the 16th of
             3           December.
             4                GOVERNOR BUSH:  Okay.
             5                CFO GALLAGHER:  We expect the ERP system --
             6           what the real deal is, in what part of 2005 it
             7           will be finished, I think. 
             8                MR. NORTHAM:  Yes, sir.
             9                CFO GALLAGHER:  At least that part of it. 
            10           And our goal is to have it finished before the
            11           end of 2005, and I think we're pretty well on
            12           target.  It's just a matter of what month.
            13                MR. NORTHAM:  Yes, sir.
            14                CFO GALLAGHER:  Because it took us a little
            15           longer than we thought to get the contracts
            16           finally signed.
            17                GOVERNOR BUSH:  Any other questions,
            19                CFO GALLAGHER:  I'm move it. 
            20                GOVERNOR BUSH:  Is there a second?
            21                GENERAL CRIST:  Second.
            22                GOVERNOR BUSH:  Moved and seconded. 
            23           Without objection, the item passes.
            24                Thank you.
            25                Commissioner Bronson, shouldn't


             1           Commissioner Bronson be on this thing?
             2                CFO GALLAGHER:  He is.  That's one of the
             3           recommendations.  It adds him to it.
             4                GOVERNOR BUSH:  Okay.  Thank you. 
             5                MR. NORTHAM:  Sure.
             6                CFO GALLAGHER:  He doesn't know it, but we
             7           added him to it.
             8                GOVERNOR BUSH:  He's not even listening.
             9                COMMISSIONER BRONSON:  Yes, I think I heard
            10           it.  Thank you.


             1                GOVERNOR BUSH:  Financial Services
             2           Commission.
             3                CFO GALLAGHER:  Motion on the minutes.
             4                GOVERNOR BUSH:  Office of Insurance
             5           Regulation.
             6                COMMISSIONER BRONSON:  Second.
             7                GOVERNOR BUSH:  Moved and seconded. 
             8           Without objection, Item 1 is approved. 
             9                Item 2.
            10                MR. PARTON:  Good morning.  Kevin is home
            11           ill this morning and sends his regret.  My name
            12           is Steve Parton.  I'm the General Counsel for
            13           the office.
            14                Item 2 is approval of the recommended
            15           vendor and seeking authority to contract with
            16           that vendor for a peer review of the licensed
            17           rating organization for the State of Florida.
            18                CFO GALLAGHER:  Governor, I'll move this,
            19           and I would like us to to name Andrew Sabolic as
            20           the contract manager.  It's very important that
            21           all contracts in state government have a
            22           contract manager, and this is no different than
            23           any of the others, and Andrew Sabolic I believe
            24           would be the best person to handle that.  Do you
            25           all have a -- do you agree with that?


             1                MR. PARTON:  Yes, sir.  I know of no legal
             2           reason why you can't do that.
             3                CFO GALLAGHER:  Good.
             4                GOVERNOR BUSH:  All right.
             5                GENERAL CRIST:  Is this the low bidder?
             6                CFO GALLAGHER:  Not necessarily.
             7                MR. PARTON:  No, it is not.  It is the high
             8           scorer in this.  The low bidder, if I remember
             9           correctly, was Pinacle Actuarial Services.  This
            10           is not the low bidder, no, sir.  The low bidding
            11           was 20 points out of the possible 110 on which
            12           we rated these responses.
            13                GENERAL CRIST:  Can you explain why you
            14           recommend this one?
            15                MR. PARTON:  Yes, sir.  It's based on,
            16           again, a combination of those factors which we
            17           took into account.  We assigned 30 points for
            18           each one of the areas we looked at.  We looked
            19           at the vendor's qualifications, the professional
            20           personnel, and the work plan and soundness of
            21           the approach.  Those carried 30 points for each
            22           one of those categories.  The price only carried
            23           20.  And hence, the evaluation was based upon
            24           the technical skills, if you will, and the plan
            25           and approach that was being presented to us with


             1           regards to this peer review.
             2                GENERAL CRIST:  Thank you.
             3                CFO GALLAGHER:  You're comfortable that
             4           this is the best bid, considering cost and
             5           technical points?
             6                MR. PARTON:  Yes, sir, we are.
             7                CFO GALLAGHER:  I'll move the item.
             8                GENERAL CRIST:  Second.
             9                GOVERNOR BUSH:  Moved and seconded. 
            10           Without objection, the item passes.
            11                MR. PARTON:  Thank you.
            12                GOVERNOR BUSH:  Thank you very much.


             1                Department of Revenue.  Dr. Z.
             2                CFO GALLAGHER:  Motion on the minutes.
             3                COMMISSIONER BRONSON:  Second.
             4                GOVERNOR BUSH:  Moved and seconded. 
             5           Without objection, Item 1 passes.
             6                DR. ZINGALE:  With your permission, a quick
             7           little briefing on amnesty.
             8                CFO GALLAGHER:  We always like to hear how
             9           much money we're bringing in.
            10                DR. ZINGALE:  We had a very intense four
            11           months with amnesty.  During that period of
            12           time, we had two press conferences, four press
            13           releases, five campaigns that direct mailed 1.4
            14           million information bulletins directly to
            15           taxpayers, 100,000 hits from our database
            16           matches, and 300,000 billings mailed during that
            17           period of time. 
            18                We created a Website.  Much of what was
            19           done in the amnesty program was done
            20           electronically, with information being passed
            21           back and forth between the taxpayer gaining
            22           information and actually paying.  The last two
            23           days of the amnesty period saw $80 million make
            24           it in the door, and then even more on the
            25           following Monday because of the postmark.


             1                GOVERNOR BUSH:  So we budgeted 60, or 80? 
             2           We had budgeted 80, but you --
             3                DR. ZINGALE:  No, a quick two numbers.  One
             4           is the net number, and the other is the gross
             5           number.  The gross number came in at right now
             6           182 million, and we're still counting.  And
             7           there will be more amnesty money in the gross
             8           number that will come in between now and the end
             9           of the fiscal year.  As you register somebody,
            10           we're still going to get, you know, eight more
            11           months' worth of money coming in.
            12                GOVERNOR BUSH:  Talk to me about net. 
            13                DR. ZINGALE:  The net number was 75.5. 
            14           When the Estimating Conference met, we convinced
            15           them that was a good number.  It will probably
            16           be larger than that, but we won't know until the
            17           end of the fiscal year for sure what that's
            18           going to be like.
            19                GOVERNOR BUSH:  How much larger?
            20                DR. ZINGALE:  I'm not going to say.
            21                GOVERNOR BUSH:  Oh, come on.
            22                CFO GALLAGHER:  The Governor is spending it
            23           100,000 at a time, so each million is like 10
            24           big points for him.
            25                GOVERNOR BUSH:  I've got a budget to do.


             1                DR. ZINGALE:  The Estimating Conference
             2           looked at all the data and said 75.5 is what you
             3           get to spend.
             4                If we could move beyond that -- it's going
             5           to be really hard to say, but 75.5 I think
             6           exceeded people's expectation. 
             7                GOVERNOR BUSH:  I hope there's a good
             8           article on your efforts here, because right
             9           before the amnesty deadline ended, there was
            10           some discussion about how the amount was going
            11           to be significantly lower yet, if you recall,
            12           and you've been completely vindicated.  I'm sure
            13           there will be an able journalist interested in
            14           solid policy that will write about this.  There
            15           are a handful out there.
            16                DR. ZINGALE:  It does show you that the
            17           private sector --
            18                CFO GALLAGHER:  I see one of them right
            19           now.
            20                GOVERNOR BUSH:  Gary.
            21                CFO GALLAGHER:  He hasn't even picked up
            22           his pen.
            23                GOVERNOR BUSH:  No, but he's here.  He's
            24           the only one here.
            25                DR. ZINGALE:  It does show you --


             1                GOVERNOR BUSH:  He's writing.
             2                GENERAL CRIST:  Let the record reflect.
             3                DR. ZINGALE:  It does show you that the
             4           private sector has a high value of the time
             5           value of money.  They waited until the very last
             6           minute to get it in, which is good business
             7           practice.
             8                If we could move on to the agenda, the
             9           second --          
            10                GOVERNOR BUSH:  It makes you wonder how
            11           much taxes aren't collected, though.
            12                DR. ZINGALE:  Pardon?
            13                GOVERNOR BUSH:  On the flip side, it makes
            14           you wonder who isn't paying taxes.
            15                DR. ZINGALE:  Well, Phase 2, which we
            16           didn't talk about, but wouldn't mind seeing that
            17           reported also, Phase 2 started the following
            18           Monday, which is the follow-up on all of those
            19           outbound contacts didn't come in with a payment. 
            20           And it will take us about 14 months to work
            21           through all those outstanding billings that are
            22           out there.
            23                Moving to Item Number 2 --
            24                GOVERNOR BUSH:  General?
            25                GENERAL CRIST:  May I ask a question? 


             1                GOVERNOR BUSH:  Absolutely.
             2                GENERAL CRIST:  What did you say the gross
             3           amount was?
             4                DR. ZINGALE:  The gross rate today is 182
             5           million, and we're still counting.
             6                GENERAL CRIST:  Okay.  And the net? 
             7                DR. ZINGALE:  And the net is 75.5.
             8                GENERAL CRIST:  And it doesn't cost that
             9           much to collect it, does it?  I mean, that's not
            10           the disparity between the two numbers?
            11                DR. ZINGALE:  We were given 600,000 to put
            12           this out.  Two pieces of it, one was to make
            13           major enhancements to our Website, which will be
            14           permanent.  You've got an interest rate
            15           calculator on there.  There's a lot of features
            16           we were able to build into our Website with that
            17           money.  Most of it, though, was postage, you
            18           know.
            19                GOVERNOR BUSH:  What's the difference
            20           between gross and net?  That's what his question
            21           is.
            22                DR. ZINGALE:  Okay.  Gross is, here is
            23           someone that was under audit, and the law
            24           provided for newly discovered tax liability and
            25           anyone that had an existing tax liability to


             1           come in.  So some audits came in and got a
             2           break.  They paid their full tax, they paid most
             3           of their interest, and they got a break on their
             4           penalty.  They would have come in during this
             5           period of time a little later.  They came in
             6           earlier.  We can't double count that.  That's
             7           the difference between the gross and the net.
             8                GOVERNOR BUSH:  It's the penalties and the
             9           interest and the --
            10                DR. ZINGALE:  If you owed a liability and
            11           you were under audit, as an example, then we
            12           likely would have gotten some of that money in
            13           later in the year.  Because they came into
            14           amnesty, they came in early.  It gave them a
            15           break.  It gave us the money earlier.  We can't
            16           double count that.
            17                GENERAL CRIST:  Do you double count the
            18           net?  Is that what you're saying? 
            19                DR. ZINGALE:  Yes, in the net there will be
            20           some double counting, money that we would have
            21           gotten in anyway without the amnesty, but it
            22           came in early.  It's an unusual feature of the
            23           law.
            24                GENERAL CRIST:  It's very clear.  Thank
            25           you.


             1                GOVERNOR BUSH:  It helped us in our budget.
             2                CFO GALLAGHER:  So that's why they don't
             3           want to you spend it, because it's double
             4           counted.
             5                DR. ZINGALE:  The 182 is double, yes.
             6                GOVERNOR BUSH:  I'm not going to get it, I
             7           know. 
             8                DR. ZINGALE:  Item number 2 --
             9                GOVERNOR BUSH:  It's really more than 75
            10           million, or he would -- you know, he's just not
            11           telling us.
            12                DR. ZINGALE:  Okay.  No, we're hopeful.
            13                Item number 2 starts our rules.  A quick
            14           reminder of rules.  Every rule that we bring in
            15           front of you goes through a workshop period
            16           where we throw concepts out.  We come back to
            17           the Cabinet for a 10-day review notice.  If we
            18           don't hear an objection, we go forward with the
            19           formal review process.  The formal review has a
            20           number of public hearings, and that ends with us
            21           bringing a rule up in front of you.
            22                Item number 2 incorporates '03 legislation
            23           dealing with homes for the aged and
            24           communications services tax, the extent of that
            25           exemption.  This incorporates those rules. 


             1           Request approval of Item 2.
             2                CFO GALLAGHER:  Motion on 2.
             3                GOVERNOR BUSH:  Is there a second?
             4                GENERAL CRIST:  Second.
             5                GOVERNOR BUSH:  Moved and seconded. 
             6           Without objection, the item passes.
             7                DR. ZINGALE:  Item 3 are rules that have
             8           some clarification in the ad valorem tax area
             9           and also incorporates a number of legislative
            10           changes.  They primarily deal with information
            11           exchange between the property appraiser and the
            12           Department of Revenue on forms and attempt to
            13           take some of the exemptions and clarify them by
            14           splitting them out so the taxpayer knows what
            15           they're eligible for.
            16                CFO GALLAGHER:  Motion on 3.
            17                COMMISSIONER BRONSON:  Second.
            18                GOVERNOR BUSH:  Moved and seconded. 
            19           Without objection, the item passes.
            20                DR. ZINGALE:  Item number 4 is our
            21           legislative concepts.  I'm going to highlight
            22           quickly about seven of them. 
            23                The first deals with child support
            24           enforcement.  Last year's legislative concepts
            25           that we brought in front of you this year didn't


             1           pass the Legislature.  It got hung up, got close
             2           at the end, so a number of them have been here
             3           before, the going to a voluntary witness for
             4           paternity in hospital instead of a notary, a big
             5           benefit to the program; allowing us to outsource
             6           service of process instead of always having to
             7           use the sheriff; the full pass-through concept,
             8           the concept that child support ought to be for
             9           the kids and not for government to offset
            10           welfare.  The insurance claim data exchange,
            11           allowing us to match delinquent child support
            12           cases against insurance claims, is another
            13           concept. 
            14                Two new ones in the child support area. 
            15           One, we have pretty much gone through the
            16           existing suspensions of occupations and
            17           licenses, and this concept goes and gets the
            18           rest of them.  A lot of the insurance agents are
            19           in here.  A lot of the banking agents are in
            20           here. 
            21                The last one in child support, when a child
            22           emancipates and turns 18, current law says
            23           benefits would cease.  This allows the benefits
            24           to continue to be extended until the arrearages
            25           are paid off, past debts.


             1                In the administrative service areas, I
             2           think we're one of only one or two agencies that
             3           have Department of Revenue employees throughout
             4           the country.  In terms of eligibility for
             5           disability, we had a disabled employee last year
             6           and found out that the law required him to come
             7           back into Florida and get certified by two
             8           Florida physicians.  This would allow the
             9           Department of Revenue to use out-of-state
            10           physicians.
            11                In the general tax area, we have the
            12           piggyback that comes back every year.  And we
            13           have some clarifications of sales tax evasion
            14           fraud definitions. 
            15                In the property tax area, we have --
            16           because of the Save Our Home exemptions and the
            17           sticker shock that occurs when a new homeowner
            18           buys an existing homesteaded property and finds
            19           out that the property tax values increase
            20           substantially when you've bought a Save Our Home
            21           property, this concept provides that the seller
            22           shall disclose the increase in tax that's going
            23           to occur when it shifts from sheltered property
            24           to not sheltered property.
            25                Request -- are there any questions on the


             1           legislative concepts?
             2                GOVERNOR BUSH:  Any discussion?
             3                CFO GALLAGHER:  Motion on 4.
             4                COMMISSIONER BRONSON:  Second.
             5                GOVERNOR BUSH:  Moved and seconded. 
             6           Without objection, your concepts pass.
             7                DR. ZINGALE:  Thank you very much.
             8                CFO GALLAGHER:  If you were to be in the
             9           Legislature, you would be a winner.
            10                GOVERNOR BUSH:  Normally he does pretty
            11           good in the Legislature.
            12                Happy Thanksgiving, Jim.


             1                GOVERNOR BUSH:  Board of Trustees.
             2                CFO GALLAGHER:  Motion on the minutes.
             3                GENERAL CRIST:  Second. 
             4                COMMISSIONER BRONSON:  Second.
             5                GOVERNOR BUSH:  Item 1, there's a motion
             6           and a second.  Without objection, it passes.
             7                Item 2.
             8                MR. STRUHS:  Good morning.  We're
             9           recommending approval of this item, subject to
            10           special lease conditions and payment of $14,251. 
            11           What I would like to do, if I could, is use the
            12           video here and give you an overview of what this
            13           looks like.
            14                This is the proposed expansion of an
            15           existing commercial marina.  This item allows
            16           for the utilization of that sovereign submerged
            17           land. 
            18                GOVERNOR BUSH:  Can you -- are you sick?
            19                MR. STRUHS:  No, I'm fine.  Is that better?
            20                GOVERNOR BUSH:  Yes.  You sound like you
            21           have a cold.
            22                MR. STRUHS:  Well, I'm a little bit
            23           stuffed up.
            24                GOVERNOR BUSH:  Speak up.
            25                MR. STRUHS:  But I feel good.


             1                GOVERNOR BUSH:  Okay.  Great.
             2                CFO GALLAGHER:  Dr. Jeb was going to write
             3           you a prescription here if you needed it.
             4                MR. STRUHS:  This would be -- this item
             5           would allow the applicant to use the sovereign
             6           submerged land to expand this existing
             7           commercial marina. 
             8                There are no problems with the U.S. Fish
             9           and Wildlife Service.  The end of the extended
            10           dock does not extend into the navigation
            11           channel, and it is short of the hump in the
            12           bridge where boat traffic goes.
            13                The reason I wanted to draw your attention
            14           to the diagram is --
            15                GOVERNOR BUSH:  This is the Classic Marina
            16           we discussed --
            17                CFO GALLAGHER:  We did the other two
            18           before.
            19                MR. STRUHS:  You'll remember that earlier
            20           this year, you approved an expanded sovereign
            21           submerged land lease for I believe these two
            22           piers here.  At that time, they agreed
            23           voluntarily as part of their lease expansion
            24           that they would not come back to the Board of
            25           Trustees for any additional expansions, and I


             1           just want to make clear that that is part of
             2           their lease.  This is a different applicant on
             3           the other side of the bridge.
             4                CFO GALLAGHER:  I'll move Item 2.
             5                GOVERNOR BUSH:  Is there a second?
             6                GENERAL CRIST:  Second.
             7                COMMISSIONER BRONSON:  Second.
             8                GOVERNOR BUSH:  There's a motion and a
             9           second.  Any discussion?  Without objection, the
            10           item passes.
            11                MR. STRUHS:  Item 3, recommend approval,
            12           subject to special lease conditions and payment
            13           of $19,450.  This is an existing commercial
            14           marina in Carrabelle on the Carrabelle River. 
            15           It is a marina that just this summer was
            16           designated a clean marina under the DEP Clean
            17           Marina Program.  We recommend approval of the
            18           item.  It is an innovative approach, in that the
            19           privately held upland that would allow for the
            20           expansion is actually on an island, so it would
            21           have to be bridged.  But we've reviewed the
            22           plan, and there's nothing in the rules that
            23           would prevent it.
            24                GENERAL CRIST:  Motion on the item.
            25                COMMISSIONER BRONSON:  Second.


             1                GOVERNOR BUSH:  Is there anybody that -- no
             2           opposition on this from the community? 
             3           Everybody is --
             4                MR. STRUHS:  Everybody is very pleased with
             5           this. 
             6                GOVERNOR BUSH:  Wow.  Okay.  There's a
             7           motion and a second.  Any discussion?  Without
             8           objection, the item passes.
             9                MR. STRUHS:  Thank you. 
            10                Item 4, if I could draw your attention to
            11           the agenda item, I'm going to make an amendment,
            12           if I might.  The way this was written up, it had
            13           indicated that we will offset the purchase price
            14           of the subject property with the proceeds from
            15           the sale of Timber Island.  What I would like to
            16           do, for the record, is to replace "will" with
            17           "may."  What that does for us, and for you,
            18           obviously, it just keeps all of our options
            19           open.  That would still be our intent, but I
            20           think it's best if we can keep that option open
            21           for all the affected parties.
            22                This is a very important acquisition, and
            23           we're delighted that today the Chairman of the
            24           Franklin County Commission, Cheryl Sanders, is
            25           here to speak to the item,


             1                COMMISSIONER BRONSON:  A question,
             2           Governor.
             3                GOVERNOR BUSH:  Yes, Commissioner.
             4                COMMISSIONER BRONSON:  Does this foresee
             5           any potential problem with the Timber Island
             6           situation, or are you just -- this leaves
             7           another option to make a swap agreement with
             8           St. Joe, or what's the --
             9                MR. STRUHS:  In the unlikely event that the
            10           Timber Island sale would not be completed, if it
            11           doesn't go to closing, this project is something
            12           that we would recommend to the Board for your
            13           approval in any event.  It really is an item
            14           that merits a stand-alone status, and we would
            15           like to make that clear.
            16                Is Chairman Sanders here? 
            17                MS. SANDERS:  I don't want to speak on
            18           Timber Island.  I --
            19                GOVERNOR BUSH:  No, we're not speaking on
            20           Timber Island.
            21                MR. STRUHS:  No, this is Crooked River.
            22                GOVERNOR BUSH:  That was last week.
            23                MS. SANDERS:  I came to town (inaudible),
            24           and I want to speak.
            25                GOVERNOR BUSH:  Great to have you back.


             1                MS. SANDERS:  Hello, Governor and members
             2           of the Cabinet.  How are we doing today?
             3                GOVERNOR BUSH:  Where have you been? 
             4           You've been gone for --
             5                MS. SANDERS:  You been missing me,
             6           Governor? 
             7                GOVERNOR BUSH:  I've missed you.
             8                MS. SANDERS:  I'm telling you.  Well, I
             9           come to your house this morning and brought you
            10           something.
            11                GOVERNOR BUSH:  Uh-oh. 
            12                MS. SANDERS:  No, I was just going to say,
            13           two years ago you all approved the plan leases
            14           in the Alligator Harbor.  You remember that?
            15                GOVERNOR BUSH:  I do.
            16                MS. SANDERS:  I brought you some fruits of
            17           the bounty there from the waters of Franklin
            18           County.
            19                I came today to talk on the Crooked River
            20           tract that you all are going to be hopefully
            21           purchasing today, and the Franklin County Board
            22           of County Commissioners in their session on
            23           October 23rd wrote a resolution in support of
            24           this and to put emphasis on the traditional uses
            25           of the land.  I'm hoping this will go through. 


             1           It's kind of like one of these things that
             2           St. Joe Company is making true on their promise
             3           to the people of Franklin County as far as
             4           saving the corridors and the traditional hunting
             5           lands and the water accesses and stuff.  So I
             6           would very much support and need your support
             7           to approve this. 
             8                And also, at the same time, the people are
             9           excited about it going back into public use.  It
            10           has been in leases for the past six years, and
            11           the people around Franklin County are excited
            12           that it's going back to public use as far as
            13           public hunting lands for all people.
            14                So anyway, I would just say that I'm in
            15           favor of this.  The Franklin County Board of
            16           County Commissioners is in favor of this.  And
            17           when you get a chance, come on down to Franklin
            18           County and visit us.  We are now -- as of this
            19           sale, we will be 80 percent owned by the State
            20           of Florida.
            21                GOVERNOR BUSH:  Are you happy about that?
            22                MS. SANDERS:  Am I happy about it?  I love
            23           it my -- let me finish.  I love it on areas like
            24           today that you're considering, because you've
            25           got 15 to 20 miles of Crooked River that has no


             1           development on it whatsoever.  It does not need
             2           any development, so I'm happy about that.
             3                Happy about the tax base?
             4                GOVERNOR BUSH:  Exactly.  That's my
             5           question.
             6                MS. SANDERS:  You know, that's -- what can
             7           we say?  We had a 39 percent taxable value this
             8           year, taxable land value.  The coast is building
             9           and growing fast.
            10                CFO GALLAGHER:  Yes, they're building it up
            11           all right.
            12                MS. SANDERS:  But we still -- you know,
            13           we're still a small county.  We still have
            14           needs.  And so to the biggest private -- public
            15           owners of the Franklin County land, I would say
            16           help us out.
            17                But this is a good thing.  I'm in favor of
            18           Crooked River being sold.  And like I said, at
            19           that time, I hope it becomes public land.
            20                CFO GALLAGHER:  I'll make a motion on 4.
            21                COMMISSIONER BRONSON:  I need -- Governor,
            22           I would like to make a motion, an amendment to
            23           the motion on 4, and that would be that I move
            24           that we approve the item, provided that the
            25           State acknowledge and maintain the benefits of


             1           the private lease between the hunt club members
             2           and St. Joe for the remainder of this 2004
             3           regular hunting season. 
             4                The State must be clear that it will not
             5           accept or continue the lease itself, merely that
             6           we will provide these leaseholders with an
             7           opportunity to complete this year's hunting
             8           season, and these individuals would have to
             9           abide by their obligations under the current
            10           lease and applicable state law.
            11                To accomplish this, the Fish and Wildlife
            12           Conservation Commission and the Division of
            13           Forestry would have full access to the property
            14           immediately after closing. 
            15                In addition, the hunt club currently holds
            16           a $1 million liability insurance policy with
            17           St. Joe Company.  This policy could be
            18           transferred to the State to resolve any issues
            19           of liability. 
            20                Finally, the State would require that these
            21           individuals clear their private property off of
            22           this leased property within 10 days of the end
            23           of the 2003-2004 regular season. 
            24                Now, I say that only because -- and I heard
            25           what the Commissioner said.  So the Commissioner


             1           will know, this land will not be up for public
             2           access lease for hunting until next year, not
             3           this year, but next year.  It could not be
             4           completed in time for the public to get on this
             5           property to hunt this year.  These leaseholders'
             6           lease will run out at the end of this hunting
             7           season, and that property will probably be open
             8           for public hunting next year.  It gives them a
             9           chance -- since they have not even had an
            10           opportunity to hunt this year on this property
            11           that they have leased, it will give them the
            12           rest of this hunting season --
            13                GOVERNOR BUSH:  When does that end? 
            14           March?
            15                COMMISSIONER BRONSON:  I think March 1st.
            16                MS. SANDERS:  February. 
            17                CFO GALLAGHER:  It will take that long to
            18           get it closed.
            19                GOVERNOR BUSH:  That's what I was going to
            20           say.
            21                COMMISSIONER BRONSON:  Yes.  So it's really
            22           not going to affect much.  It gives them a
            23           chance to finish their season, they're out, and
            24           when the new management starts, it will be open
            25           for the public as soon as all of the closing


             1           happens.  And I believe Forestry will be the
             2           manager, based on the fact that this will become
             3           part of Tates Hell State Reserve, and then we
             4           will try to put together some type of program
             5           for the public in the next year.
             6                CFO GALLAGHER:  I'll second it.
             7                MS. SANDERS:  Governor --
             8                GOVERNOR BUSH:  Hang on a second.  Hang on. 
             9           Hang on.  There's a motion.
            10                CFO GALLAGHER:  And I second the
            11           amendment.
            12                GOVERNOR BUSH:  There's an amended motion
            13           and a second.
            14                Secretary Struhs, how long does it take to
            15           get a property like this closed? 
            16                MR. STRUHS:  Our goal is to have it closed
            17           by December 10.
            18                GOVERNOR BUSH:  Wow.  Pretty efficient.
            19                GENERAL CRIST:  Giddy-up.
            20                GOVERNOR BUSH:  Okay.  Chairman.
            21                MR. STRUHS:  I'm sorry, Governor, but there
            22           is one other speaker who wanted to speak to the
            23           item before you cast a final vote.
            24                GOVERNOR BUSH:  Yes, sure.
            25                MR. STRUHS:  Don Ashley is here as well.


             1                GOVERNOR BUSH:  Okay.
             2                MR. STRUHS:  Commissioner.
             3                MS. SANDERS:  But the Commissioner has got
             4           the floor right now. 
             5                GOVERNOR BUSH:  No, you don't have the
             6           floor.
             7                MS. SANDERS:  The Governor has already
             8           recognized me.  This is a heated subject with
             9           me, because, Commissioner Bronson, I understand
            10           where you're coming from, but let me tell you, I
            11           was one of the lessees of a lease from St. Joe
            12           Paper -- from St. Joe Paper Company at that
            13           time, year before last, had the lease since
            14           1990, me and my husband and my bother-in-law. 
            15           They called me on a Thursday to move my stuff
            16           off by Saturday.  I had to be off of there. 
            17           They refunded me my money, and they told me,
            18           "We're glad you leased out the land, but this is
            19           public land."
            20                Now, where I live on Womack Creek, as you
            21           all call it, there was a big fight about that
            22           four or five years, six years ago.  The same
            23           thing happened there.  The lease came -- I mean
            24           the State came in and bought it.  Within that
            25           period of time, between the time that the land


             1           was bought and a management plan could come into
             2           effect, it followed the laws of the State of
             3           Florida, all general regulations, FWC.  We have
             4           quite a few officers down there that can patrol
             5           the woods.
             6                So to do this, you know, to me, this is
             7           something that is between St. Joe Company and
             8           the leaseholders.  The State really doesn't need
             9           to have anything to do with it, I mean, because
            10           the contract with St. Joe, if you'll get a copy
            11           of their contract, says at any time, St. Joe can
            12           call it null and void.
            13                So this is what I'm saying.  You know, be
            14           kind to the people down there.  You know, you're
            15           not talking but just a few months, but it means
            16           a lot.  You're talking about maybe a month, a
            17           little over a month of hunting, but it means a
            18           lot to these people down here.  They haven't
            19           been able to hunt this land for five or six
            20           years.  And so that's the reason why I'm saying
            21           --
            22                COMMISSIONER BRONSON:  Commissioner --
            23           Governor, if I can.
            24                GOVERNOR BUSH:  Yes, sure.
            25                COMMISSIONER BRONSON:  To answer your


             1           question, I'll say basically what I said awhile
             2           ago.  There will be no -- even if the lessees
             3           were off as of 10 days after the sale of this,
             4           this land will not be available for hunting this
             5           year at all to the public.  They cannot create a
             6           business and a management agreement in time for
             7           it to be hunted by the public at all this year. 
             8           It's going to be at least next hunting season
             9           before that can take place. 
            10                So the public is not going to really lose
            11           out here on this agreement, because it can't be
            12           open to the public until all of these agreements
            13           and management plans have been in effect or put
            14           in so DEP can approve them and so forth.  So
            15           it's really not going to be open to the public
            16           this year at all. 
            17                And as you remember, when your situation
            18           came up and we were the managers of some of the
            19           property you're talking about, we worked out an
            20           agreement with those who had already been there
            21           through our management agreement, and I believe
            22           that your family and others have the same lease,
            23           the same area that they've always hunted.  Even
            24           after we took over the management of the
            25           property, we worked out that agreement.


             1                MS. SANDERS:  There's no leases on Tates
             2           Hell, Commissioner Bronson.
             3                COMMISSIONER BRONSON:  No, no.  Listen to
             4           what I'm saying now.  We know that there's
             5           people who are hunting there who are hunting in
             6           the same places they have traditionally hunted
             7           all their life.  We made sure that we worked
             8           that agreement out.  I think it's a three-year
             9           situation, and then it will be opened up for
            10           first come, first served.  We did that.  We did
            11           that especially for those families who
            12           traditionally have been there so that there
            13           wouldn't be a major problem in there.  So I'm
            14           trying to be fair with everybody here.
            15                MS. SANDERS:  I know.
            16                COMMISSIONER BRONSON:  I want this land
            17           sale to go through, which we're not stopping
            18           that.  It gives them an opportunity to finish
            19           this year, and then as of April or -- March or
            20           April, whatever that is, then they clear out,
            21           and it will become once again -- the management
            22           plan will open it up to the public at some
            23           point, but it certainly won't be this hunting
            24           season.
            25                MS. SANDERS:  But, Commissioner Bronson, I


             1           differ to agree with you, because I have no
             2           lease.  I have no hunting lease.  I have no
             3           hunting lease whatsoever.  But I'm not going to
             4           stand here and argue, but what I'm trying to
             5           tell you is, on Womack Creek, it was opened up
             6           for a six-month period or a three-month period
             7           of time where general hunting rules of the State
             8           of Florida were, you know, adhered to.  That's
             9           the way it was on Womack Creek.  It was
            10           13,560-something acres that was opened up like
            11           that.
            12                GOVERNOR BUSH:  You've got a new sheriff
            13           in town who has got a different management style
            14           perhaps.  I mean --
            15                MS. SANDERS:  I know.  I know.  But I would
            16           hope that the Cabinet would not get into
            17           interference with the policy that St. Joe has
            18           about their hunting leases.  To me, that's
            19           something that the hunting lessees and St. Joe
            20           need to work out, not you, the Cabinet.
            21                GOVERNOR BUSH:  Thank you, Madam
            22           Chairwoman. 
            23                Do we have another speaker?
            24                MR. STRUHS:  We do have George Wilson here
            25           from the St. Joe Company, and he can speak


             1           specifically to the hunting leases.
             2                GOVERNOR BUSH:  Okay.  And you also had
             3           another speaker; right?
             4                MR. STRUHS:  Yes, sir.  We also have Don
             5           Ashley here from the Franklin County Wildlife
             6           Federation.
             7                GOVERNOR BUSH:  Okay.
             8                MR. STRUHS:  But I will introduce George
             9           first.
            10                GOVERNOR BUSH:  Sure.
            11                MR. WILSON:  Good morning, Governor and
            12           Cabinet.  Thank you for the opportunity to
            13           speak.  I'm George Wilson with the St. Joe
            14           Company.
            15                I just wanted to put into the record that
            16           even though we have no dog in the hunt of what
            17           you do after you buy it --
            18                GOVERNOR BUSH:  So to speak.
            19                MR. WILSON:  Yes, sir.  I've always wanted
            20           to use that.
            21                GOVERNOR BUSH:  You were waiting.  You were
            22           waiting to use that, huh? 
            23                MR. WILSON:  Yes, sir. 
            24                What we have done under our obligation
            25           under the contract to sell to the State is


             1           terminate all leases.  We have terminated this
             2           lease.  They have adjacent properties that they
             3           hunt on also under the lease, but we have sent
             4           them their termination notice.  They were aware
             5           that this property was under sale to the State. 
             6           The State began a survey three years ago on this
             7           property, so it should not be a surprise to
             8           anybody hunting here. 
             9                And I just want to tell you that I'm not
            10           sure how we extend something unless we un -- we
            11           re-enter into a contract.  But we have sent them
            12           their notice.  We have sent them a check for the
            13           unused portion of the year.
            14                CFO GALLAGHER:  We can't extend it then.
            15                GOVERNOR BUSH:  That creates a little bit
            16           of a problem, doesn't it?
            17                COMMISSIONER BRONSON:  Well, maybe.  I
            18           don't know, of the people that I talked to, that
            19           anyone has received a check.  And I believe the
            20           contract says that at the time of the sale of
            21           the property, that within 10 days they must
            22           clear their personal belongings out of the area.
            23           I believe that's in the contract. 
            24                But until the official sale of this
            25           property, it's not a done contract in any way,


             1           shape, or form.  So technically, it is not a
             2           finished contract as of yet.  And I'm not a
             3           lawyer, but it tells me that until the sale
             4           actually takes place by the Trustees, that
             5           contract is still in effect. 
             6                And if the Board were to decide to allow
             7           them to finish this season so that there's no
             8           hard feelings of hunters out there who feel like
             9           they didn't even get a chance to start the
            10           season because they were blocked out on the sale
            11           -- and as a matter of fact, I can tell you I've
            12           heard from a few of them, and they didn't even
            13           know about this exchange between Pine Island and
            14           this property as affecting their hunting lease
            15           until they read it in the paper last week.
            16                GOVERNOR BUSH:  Well, let's ask the -- the
            17           lease has already expired.  You've given them
            18           notice.  Is it effective on the closing date or
            19           the --
            20                MR. WILSON:  Yes, sir.  The first item in
            21           the four-page contract, which I've given copies
            22           to your staff, is that they've signed a contract
            23           recognizing that upon the sale of any part or
            24           all of the property that they're leasing, that
            25           we can give a 10-day notice.  We have served --


             1           we have given them the notice that the property
             2           is for sale, so that they would be obliged -- we
             3           are already cleaning the property up.  We've
             4           told them to please get their personal effects
             5           off the property.  All of the things that we
             6           normally do on a sale to the State, as we've
             7           done on 100,000 other acres, we are going
             8           through the regular process on a state sale.
             9                GOVERNOR BUSH:  But the lease isn't
            10           expired, has not expired?
            11                MR. WILSON:  It's not expired, but we have
            12           issued a -- we've sent them the letter of
            13           termination, which is what they recognized when
            14           they signed the contract with us.  So we have
            15           sent them a notice of termination.
            16                COMMISSIONER BRONSON:  But, now, Governor,
            17           if I could follow through, I want to be fair on
            18           this thing.  These individuals paid in July, I
            19           understand, for this year's hunting agreement.
            20                MR. WILSON:  Yes, sir.
            21                COMMISSIONER BRONSON:  They paid their
            22           lease fees this July.  Of course, the hunting
            23           season really don't start until this weekend
            24           anyway, so they haven't had a chance to really
            25           hunt at all this year.  It was a three-year


             1           lease agreement which St. Joe approves each
             2           single year, depending on what happens during
             3           the year as for the next year's agreement.  So
             4           they've paid for this year.
             5                This sale, based on my motion, does not
             6           stop the sale of this property to the State
             7           should we decide to accept this motion.  It does
             8           not delay, does not do anything to the sale of
             9           this property.  It will go through as of the
            10           agreement made here by the Board today if we
            11           decide to go through with this sale.  So it
            12           doesn't affect St. Joe at all. 
            13                As a matter of fact, their contractual
            14           agreement on the insurance to the State will be
            15           in effect, because St. Joe under this agreement
            16           will transfer that million-dollar policy to the
            17           State.  Okay?  So the State is not held in any
            18           way accountable.  They will have their
            19           insurance. 
            20                They will follow all rules as under the
            21           contract now with St. Joe, and at the end of the
            22           season, they have a 10-day notice, and they have
            23           to get everything off the property.  So I don't
            24           see that it affects St. Joe if we buy the
            25           property today, whether this agreement is in


             1           effect or not.
             2                Now, were you told that if this amendment
             3           passes that the sale of the property won't take
             4           place?  I mean, are you under that assumption?
             5                MR. WILSON:  Not anymore, no, sir.
             6                COMMISSIONER BRONSON:  Okay.  I just want
             7           to make sure that you are not confused about how
             8           this is going to work.  So if you were told that
             9           if this amendment goes through, your property
            10           cannot be bought by the State, because the four
            11           people sitting here are going to make that
            12           decision.
            13                MR. WILSON:  Yes, sir.  And I'm sure with
            14           all of our lawyers, we can figure out how to --
            15                COMMISSIONER BRONSON:  I just wanted to
            16           make sure you understood that.
            17                MR. WILSON:  I'm sure we can figure out how
            18           to assign a contract that we have terminated.
            19                GOVERNOR BUSH:  You haven't terminated it. 
            20           It's subject -- you know, it's --
            21                CFO GALLAGHER:  You've sent a notice. 
            22                GOVERNOR BUSH:  You've given them notice
            23           that it will be terminated.  It's not terminated
            24           until --
            25                MR. WILSON:  Yes, sir.


             1                GENERAL CRIST:  You said it's only
             2           terminated upon -- over here -- upon sale. 
             3                MR. WILSON:  Your contract with us to
             4           purchase the property requires us to terminate
             5           all leases.
             6                GENERAL CRIST:  Unless we do something --
             7                CFO GALLAGHER:  Well, that contract didn't
             8           change.
             9                MR. WILSON:  Unless you amend it.  Unless
            10           you amend it by your action today, which it
            11           looks like you're doing.
            12                COMMISSIONER BRONSON:  Absolutely.  That's
            13           exactly what I was trying to say.
            14                GOVERNOR BUSH:  We have one other speaker.
            15                MR. WILSON:  Thank you.
            16                (Material placed on overhead.)
            17                CFO GALLAGHER:  I think that's upside-down. 
            18           You had it the right place.  It was just
            19           upside-down.
            20                There you go.  That brown bear was swimming
            21           upside-down.
            22                GOVERNOR BUSH:  That's cool.
            23                MR. ASHLEY:  Governor and members of the
            24           Cabinet, I'm Don Ashley.  I'm actually speaking
            25           for the Florida Wildlife Federation, but I live


             1           in Franklin County on St. James Island. 
             2                And I want to encourage the purchase of
             3           Crooked River for the same reason that our
             4           County Commissioner, Cheryl Sanders, indicated. 
             5           Crooked River is a very important area. 
             6                I wanted to show you a picture of one of
             7           the seaside bears that I spoke to you about at
             8           the last meeting.  This bear -- this photograph
             9           was taken by a fisherman from East Point.  That
            10           bear is a half mile into East Bay, swimming
            11           across the Apalachicola Bay to the marshes to
            12           the north, and he or she, whichever, still had a
            13           half a mile to go.
            14                I think the point that I would like to try
            15           to make about St. James Island, it is one of the
            16           most unique places in Florida.  It's one of the
            17           few remaining areas where we have enough land
            18           and enough wilderness to support black bears,
            19           and at the same time, it's obviously prime
            20           development habitat.  So it's going to be this
            21           continuing Florida choice of what to develop,
            22           where to develop it, at what density, and can we
            23           protect both.
            24                From our side, we would like to encourage
            25           you to purchase this.  It gives us the bookend


             1           to the rest. 
             2                And I promise you this:  As a private
             3           sector and community initiative, we will try to
             4           help as a community connect Tates Hell and Bald
             5           Point State Park through conservation easements,
             6           through working with St. Joe for their buffer
             7           areas and greenways.  In other words, the State
             8           has done its part to get us most of the way
             9           there.  Now it's up to private sector and
            10           community initiative to try to go ahead and
            11           balance this development with conservation.
            12                GOVERNOR BUSH:  Where is St. James Island?
            13                MR. ASHLEY:  It's directly south of
            14           Sopchoppy.  You go down 319, you cross the
            15           bridge, and St. James Island is bordered on the
            16           east -- or actually that's the north, by
            17           Ochlockonee Bay, Carrabelle to the west.  And
            18           it's only 60,000 acres for the entire island,
            19           and St. Joe owns 50,000 of it. 
            20                So you can see the challenge we have in
            21           front of us is to try to balance all of these
            22           issues that Florida has had to balance
            23           statewide.  We're going to work hard at it. 
            24           We're deeply involved in this process. 
            25                And I would like to invite the Governor and


             1           Cabinet to come down sometime.  It's only an
             2           hour south of Tallahassee.  What other state
             3           capital can you go to wilderness black bear
             4           habitat within an hour?  It's just a very unique
             5           area, and we hope you'll come visit with us. 
             6                And as our Commissioner said, we need a
             7           little bit of help in Franklin County.  I went
             8           to an economic development meeting yesterday in
             9           Apalachicola.  They ranked seafood industry
            10           assistance as their number one goal in Franklin
            11           County.  And so it's really important that we
            12           work with these rural counties to look at
            13           economic development as well as conservation.
            14                So thank you for listening, and we hope to
            15           see you sometime in Franklin County.
            16                GOVERNOR BUSH:  Thank you.  I'm going to
            17           propose to the Legislature a rural county
            18           program that changes the funding priorities
            19           towards the smaller rural areas.  Franklin
            20           County looks like it's going to be growing so
            21           much it may not be qualified.  Eventually it
            22           won't be.  Now it clearly is. 
            23                But we do have to change, I think, our
            24           strategies for the areas.  Because of our
            25           property tax, the millage rate issues and 


             1           homestead exemption, a lot of these counties
             2           have a really difficult time being able -- and
             3           the infrastructure costs, which are higher per
             4           job for industry to come in.  So we're going to
             5           try to do our best.
             6                MR. ASHLEY:  Thank you, Governor.  Dave
             7           McLain with ABARK is not here today, but Dave
             8           has indicated he would really like to work
             9           together with me during this session to come and
            10           just try to explain some of these issues.  So
            11           thank you very much.
            12                GOVERNOR BUSH:  How would you like to be a
            13           fisherman in the bay and all of a sudden you see
            14           a bear coming right by you?
            15                MR. ASHLEY:  It's a unique place.
            16                CFO GALLAGHER:  You better learn how to row
            17           fast, I'll tell you that.
            18                GOVERNOR BUSH:  Well, he's fishing too.
            19                CFO GALLAGHER:  David, before we vote on
            20           this, I just want to make sure it's clear that
            21           we have a million-dollar policy that is made out
            22           to St. Joe gets assigned or another policy is
            23           put in place for the leasehold.  Okay?
            24                MR. STRUHS:  Yes.
            25                GOVERNOR BUSH:  Also, we'll make clear that


             1           we're not talking about -- correct me if I'm
             2           wrong.  Your amendment, Commissioner Bronson, it
             3           says the State must be clear that it will not
             4           accept or continue the lease itself.  So we're
             5           not --
             6                COMMISSIONER BRONSON:  After this season,
             7           after this official season, there is no more
             8           lease with these leaseholders. 
             9                GOVERNOR BUSH:  So the lease will --
            10                COMMISSIONER BRONSON:  It will be null and
            11           void.
            12                GOVERNOR BUSH:  You have to extend the
            13           lease?
            14                CFO GALLAGHER:  No.
            15                COMMISSIONER BRONSON:  No.
            16                CFO GALLAGHER:  This is the first year of
            17           it for a three-year lease, and what he's saying
            18           is, there's no more two years.
            19                COMMISSIONER BRONSON:  Right.  Once this
            20           season is over, that lease that was originally
            21           signed with St. Joe is over with, and they have
            22           10 days to get all their stuff off.
            23                GOVERNOR BUSH:  You're going to have to
            24           assign the lease.  You're going to have to do
            25           something.  What are you going to do?  What are


             1           you proposing that we do? 
             2                COMMISSIONER BRONSON:  That the State
             3           accepts this one year till April --
             4                GOVERNOR BUSH:  I know that.  I'm talking
             5           about legally, to make sure that we give the
             6           instructions correctly to the staff.  You're
             7           proposing that we be assigned the leasehold
             8           interest from St. Joe.
             9                COMMISSIONER BRONSON:  Till April.
            10                GOVERNOR BUSH:  And that that lease will be
            11           -- in advance, we'll give them notice that the
            12           lease will be terminated at the end of hunting
            13           season, whenever that is.
            14                COMMISSIONER BRONSON:  Correct.
            15                GOVERNOR BUSH:  Which is February or March,
            16           not next fall.
            17                COMMISSIONER BRONSON:  Right.  Correct.
            18                GOVERNOR BUSH:  You got it?
            19                CFO GALLAGHER:  They can either take it as
            20           an assignment, or they can sign a new one.  They
            21           can do whatever they need to do to have the same
            22           one-year lease agreement that they have right
            23           now.
            24                MR. STRUHS:  We have a very clear
            25           understanding of precisely what it is you're


             1           trying to accomplish. 
             2                GOVERNOR BUSH:  The last thing we need to
             3           do is mess up the sale.
             4                MR. STRUHS:  Right.  And I think it's going
             5           to require a little bit of work on our end, with
             6           your staff's assistance, to come up with exactly
             7           the language to craft this, but I'm confident we
             8           can do it.
             9                COMMISSIONER BRONSON:  Absolutely.
            10                GOVERNOR BUSH:  And if these guys have
            11           gotten their checks refunded --
            12                COMMISSIONER BRONSON:  I don't believe so.
            13                GOVERNOR BUSH:  We might as well get that
            14           check back too.
            15                CFO GALLAGHER:  Oh, yeah.  They've got to
            16           still pay.
            17                COMMISSIONER BRONSON:  If there have been
            18           any received checks, they need to give it back
            19           to St. Joe, because I don't know of a single one
            20           that has received it yet, so -- then those
            21           checks need to go back to St. Joe.
            22                CFO GALLAGHER:  And then come back to the
            23           State.
            24                COMMISSIONER BRONSON:  Right.
            25                GOVERNOR BUSH:  All right.  There's an


             1           amended motion and a second.  Any other
             2           discussion?
             3                Without objection, the item passes.
             4                MR. STRUHS:  Thank you very much. 
             5                CFO GALLAGHER:  Now, that was on --
             6                MR. STRUHS:  Our final item is --
             7                GOVERNOR BUSH:  No, we did both.  We
             8           amended the -- he amended the motion.
             9                CFO GALLAGHER:  But we never voted on the
            10           amendment.
            11                GOVERNOR BUSH:  No, he just amended the
            12           motion.
            13                CFO GALLAHAGER:  Okay.  And that was
            14           seconded.
            15                GOVERNOR BUSH:  Yes.  You seconded it.
            16                CFO GALLAGHER:  I did?
            17                GOVERNOR BUSH:  Okay.
            18                MR. STRUHS:  Our final item is --
            19                GOVERNOR BUSH:  Got the old juices flowing,
            20           Commissioner Bronson, on that hunting lease
            21           thing, man.
            22                COMMISSIONER BRONSON:  Just trying to be
            23           fair, Governor.
            24                CFO GALLAGHER:  You know, we can't handle
            25           all that fairness.


             1                COMMISSIONER BRONSON:  This serious.  It's
             2           hunting season.
             3                MR. STRUHS:  Our final item is a little bit
             4           unusual, and we're fortunate to have Janet
             5           Llewellyn here, who is going to offer you a very
             6           brief refresher on the Lake Belt Plan.  The law
             7           -- Janet, if you want to go ahead and set up
             8           your map. 
             9                The existing statute to implement the Lake
            10           Belt law has been in place for four years now. 
            11           This particular land exchange has been under
            12           consideration since about the first of this
            13           year.  All the various parties have been
            14           involved in it.  We believe this item is in fact
            15           consistent with the Lake Belt Plan and statute. 
            16           It does enjoy the support of the South Florida
            17           Water Management District.
            18                Yesterday your Cabinet Aides in working
            19           with the County and the company in this case,
            20           Florida Rock, did amend and come up with an
            21           alternative agreement, so we need to make sure
            22           that you are aware of what that agreement is. 
            23           But I think from what I understand this morning,
            24           all the parties are prepared to move forward
            25           with that agreement. 


             1                But to begin with, if I could invite Janet
             2           to take a couple of minutes and just review the
             3           big picture of what the Lake Belt Plan is all
             4           about.
             5                GOVERNOR BUSH:  Good morning.
             6                MS. LLEWELLYN:  Good morning.
             7                CFO GALLAGHER:  Let me get us in place. 
             8           I'll move 5 so that we can --
             9                MR. STRUHS:  Thank you, sir.
            10                GOVERNOR BUSH:  Is there a second?
            11                GENERAL CRIST:  Second.
            12                CFO GALLAGHER:  Go ahead. 
            13                MS. LLEWELLYN:  The area we're going to be
            14           talking about today is the Miami-Dade County
            15           Lake Belt Area.  We're in western Dade County,
            16           and it's generally this colored area on the map
            17           here.  We're located between the Everglades on
            18           the west -- this is Conservation Area 3B -- and
            19           urbanized Dade County on the east.  So this is a
            20           slice of land right in the middle. 
            21                It has been historically used for limerock
            22           mining since the 1950s.  The mining companies
            23           acquired a lot of reserves in this area in the
            24           '60s and the '70s.  The blue, dark blue on this
            25           map indicates existing limerock mine pits.  The


             1           light blue is the other miner ownership in that
             2           part of the Lake Belt.
             3                Other major features of the area to know
             4           about, the largest urban wellfield for
             5           Miami-Dade County, public supply wellfield, is
             6           located in the Lake Belt, and these are the
             7           wellheads right here running north to south. 
             8           Another major feature in the area is known as
             9           the Pennsuco wetlands, this green area here.
            10                In 1992, the Legislature established the
            11           Miami-Dade County Lake Belt Committee, and the
            12           purpose of the committee was to look at this
            13           area and try to develop a plan that best
            14           balanced these somewhat competing uses.  The
            15           plan was to accomplish several things, try to
            16           maximize limerock extraction from this area, to
            17           protect the wellfield, and to protect the
            18           environment.  The committee worked for numerous
            19           years, and finally in 2000, the Legislature
            20           accepted the plan.
            21                One of the fundamental principles of the
            22           plan was to try to get the Pennsuco wetlands
            23           into public ownership, restore it -- and it's a
            24           part of Everglades restoration -- to try to get
            25           the parcels in the middle of the area owned by


             1           the State that weren't being used for anything
             2           into limerock mining ownership so rock could be
             3           extracted there, all of this in compliance with
             4           the Dade County wellfield protection ordinances.
             5           And let me speak just briefly to those. 
             6                The area generally here that you see in the
             7           lighter color represents what's known as the
             8           60-day travel time.  There are two different
             9           zones of protection around the wellfield.  One
            10           is the 30-day travel time, which is closer in,
            11           and no mining is allowed there by the County. 
            12           In the 60-day travel time, mining is allowed,
            13           but only down to 40 feet.  And currently, by
            14           ordinance, mining is potentially allowable
            15           outside that 60-day travel time.
            16                One other piece of background I'll give
            17           you, and that is the exchange that we're going
            18           to be talking about today.  So you can see where
            19           it fits in on the big map, it's located right
            20           here and up here, so just keep that in mind.
            21                MR. STRUHS:  Janet, I think if you could
            22           just walk them through this map as well.
            23                MS. LLEWELLYN:  Okay.
            24                MR. STRUHS:  This next map will -- that's
            25           the broad background of the lake plan.  What


             1           Janet will now do is focus in specifically to
             2           the parcels affected by this proposed agenda
             3           item.
             4                MS. LLEWELLYN:  You can go ahead and zoom
             5           in on that, if you can.
             6                As part of the Lake Belt Plan, it was
             7           identified that there are three mining companies
             8           that owned major amounts of acreage in the
             9           Pennsuco that we would like to bring into public
            10           ownership, and those are Rinker, Tarmac, and
            11           Florida Rock. 
            12                Early on in the Lake Belt Plan, the
            13           state-owned parcels in the middle were looked
            14           at, and it was noticed that they sort of nicely
            15           lined up with where each of those three
            16           companies' processing facilities were, and
            17           cement plants.  So the concept as part of the
            18           Lake Belt Plan was to do some kind of exchange
            19           or swap so the public could get the land in the
            20           Pennsuco and the miners would get the scattered
            21           state land parcels in the middle.
            22                The exchange we have before you today,
            23           Florida Rock owns the parcels in yellow.
            24                GENERAL CRIST:  Can you pull that up so we
            25           can see the whole item?  There you go.  Thank


             1           you.  Try it again.
             2                MS. LLEWELLYN:  This is the parcel that
             3           Florida Rock currently retains ownership in the
             4           Pennsuco.  These yellow parcels here are
             5           currently owned by Florida Rock.  Some of them
             6           are within the 30-day travel time to the
             7           wellfield, and a few of them, a few of this area
             8           right here is within the 60-day travel time. 
             9           The land exchange -- and I'll leave the
            10           valuation to the staff that will come up after
            11           me -- is to exchange these Florida Rock parcels
            12           for the state-owned land here in Section 15 and
            13           Section 9.
            14                This gives public ownership over the high
            15           quality wetlands in the Pennsuco.  It puts into
            16           public ownership the land within the 60-day
            17           protected travel time of the wellfield and moves
            18           the rock mining ownership further out away from
            19           the wellfield.
            20                MR. STRUHS:  Before I open it up to
            21           questions with Janet, the one thing I do want to
            22           emphasize is that the future permitting of
            23           additional rock mining in this area is in fact
            24           governed by Miami-Dade County, so they continue
            25           to have the authority to determine whether or


             1           not these areas in fact are mined in the future
             2           or not.
             3                GOVERNOR BUSH:  Tell me what the difference
             4           is between the development rights for mining
             5           between the yellow properties to the east and
             6           the greens in the agreement we're proposing --
             7           that you're proposing to be swapped.
             8                MR. STRUHS:  Within the -- if you can
             9           imagine, to the east of the 30-day line, there
            10           is no mining.  Mining is prohibited.  In the
            11           zone between the 60-day and 30-day line, the
            12           section between those two red lines, you can
            13           mine if you get a permit, but it's limited to 40
            14           feet in depth.
            15                GOVERNOR BUSH:  They don't have permits
            16           right now?
            17                MR. STRUHS:  I'm sorry, sir.
            18                GOVERNOR BUSH:  None of these properties
            19           are permitted for mining?
            20                MR. STRUHS:  Some them are.  No?
            21                MS. LLEWELLYN:  I don't believe so.  The
            22           yellow Florida Rock parcel isn't.
            23                MR. STRUHS:  No, none of them are.  None of
            24           them are.
            25                CFO GALLAGHER:  You can't do mining in that


             1           area.
             2                MR. STRUHS:  None of them are.  But it
             3           would be allowed under the county ordinance to
             4           40 feet.  Then to the west of the 60-day line,
             5           that's where mining would be allowed.  But
             6           again, it's all subject to permitting.
             7                GOVERNOR BUSH:  Okay.
             8                CFO GALLAGHER:  Let me -- on the motion
             9           that I made, that was including the agreement in
            10           principle between Miami-Dade County and Florida
            11           Rock regarding the Section 15 land exchange that
            12           was made November 24th.  I want to make sure
            13           that's included in my motion.
            14                GOVERNOR BUSH:  I hope we're going to hear
            15           about that.
            16                MR. STRUHS:  Yes.  What I would like to do,
            17           because we were not party to the negotiation of
            18           that agreement last night, I don't really want
            19           to speak to it myself, but what I would invite
            20           you to do is to hear directly from the company
            21           and from Miami-Dade County.
            22                CFO GALLAGHER:  I just wanted to make sure
            23           that the motion we pass includes the agreement
            24           we're about to hear about. 
            25                MR. STRUHS:  Right.  So with that, we have


             1           Mr. McCabe and Mr. Brant from Miami-Dade.  I
             2           believe he's here, isn't he?
             3                GOVERNOR BUSH:  Good morning.
             4                MR. BRANT:  Good morning, Governor and
             5           members of the Cabinet.  My name is Bill Brant. 
             6           I'm the director of Miami-Dade County's water
             7           and sewer department.  We are the owners and
             8           operators of the entire water and wastewater
             9           system for about 2 million people in Miami-Dade
            10           County, and that includes the Northwest
            11           Wellfield that Mr. Struhs, Secretary Struhs has
            12           just identified for you.  We, of course, are a
            13           partner in this effort that Janet has identified
            14           for you and the whole Lake Belt proceedings.
            15                I am pleased to tell you today that, as
            16           Secretary Struhs mentioned, late last night we
            17           were able to come to an agreement with Florida
            18           Rock, an agreement in principle as to how to go
            19           forward with this property.  We are satisfied
            20           with that agreement and very pleased to announce
            21           that to you. 
            22                And I would like to make special thanks to
            23           your staff, who stayed long hours with us
            24           yesterday and helped facilitate this agreement. 
            25           It was struck between the County and Florida


             1           Rock late yesterday evening.
             2                On future land dealings in this area around
             3           our Northwest Wellfield, I think it's very clear
             4           we are very concerned about what happens to the
             5           properties surrounding our wellfield.  We do
             6           want to partner with the State.  I discussed
             7           this with Secretary Struhs's staff, and they
             8           have absolutely committed to me to work with us
             9           on future activities surrounding our Lake Belt.
            10                So thank you very much, and happy
            11           Thanksgiving.
            12                GOVERNOR BUSH:  Thank you.
            13                MR. McCABE:  Governor and Cabinet members,
            14           I too would like to thank the staff for their
            15           hard work in helping us come together.  We're
            16           delighted to be able to help in the Everglades
            17           restoration program by making this land
            18           available through the exchange, and we certainly
            19           pledge our cooperation to Miami-Dade County to
            20           work to make sure and protect the wellfields.
            21                Thank you very much.
            22                GOVERNOR BUSH:  Thank you.  Are there any
            23           other people who would like to speak?
            24                MR. STRUHS:  No, there are not.
            25                If you have any questions as to valuation,


             1           we do have staff here to address that. 
             2           Otherwise, we recommend the item for approval.
             3                GOVERNOR BUSH:  Any other discussion? 
             4           There's a motion, which includes the inclusion
             5           of the agreement in principle between Miami-Dade
             6           County and Florida Rock as part and parcel to
             7           that resolution, and a second.  All in favor say
             8           aye.
             9                (Simultaneous affirmative responses.)
            10                GOVERNOR BUSH:  All opposed? 
            11                Very good.
            12                MR. STRUHS:  Thank you.
            13                GOVERNOR BUSH:  Thank you.
            14                (Proceedings concluded at 10:15 a.m.)


             2                    CERTIFICATE OF REPORTER
             4     STATE OF FLORIDA)
             5     COUNTY OF LEON  )
             7           I, MARY ALLEN NEEL, do hereby certify that the
             8     foregoing proceedings were taken before me at the time
             9     and place therein designated; that my shorthand notes
            10     were thereafter transcribed under my supervision; and
            11     that the foregoing pages numbered 1 through 68 are a
            12     true and correct transcription of my stenographic
            13     notes.
            14           I FURTHER CERTIFY that I am not a relative,
            15     employee, attorney or counsel of any of the parties,
            16     or relative or employee of such attorney or counsel,
            17     or financially interested in the action.
            18           DATED THIS 4th day of December, 2003.
            22                                ___________________________
                                              MARY ALLEN NEEL, RPR
            23                                2894-A Remington Green Lane
                                              Tallahassee, Florida  32308
            24                                (850) 878-2221