JASKO COURT REPORTING SERVICES,
INC.
(352) 343-4200 OR
800-779-4200
.
2
1 APPEARANCES:
2
3 Representing the Florida
Cabinet:
4 JEB
BUSH
Governor
5
CHARLES H.
BRONSON
6 Commissioner of
Agriculture
7 CHARLIE
CRIST
Attorney
General
8
TOM
GALLAGHER
9 Chief Financial Officer
10
11
* * * *
12
13
14
15
16
17
18
19
20
21
22
23
24
25
JASKO COURT REPORTING SERVICES,
INC.
(352) 343-4200 OR
800-779-4200
.
3
1
I N D E X
2 STATE BOARD OF
ADMINISTRATION
(Presented by Coleman
Stipanovich)
3
ITEM
ACTION
PAGE
4
1
Approved
12
2
Approved
14
5
DIVISION OF BOND
FINANCE
6 (Presented by Ben J. Watkins, III)
7
ITEM
ACTION
PAGE
1
Approved
17
8
2
Approved
19
3
Approved
21
9
4
Approved
22
5
Approved
35
10
DEPARTMENT OF VETERANS'
AFFAIRS
11 (Presented by Rocky McPherson)
12
ITEM
ACTION
PAGE
1
Approved
41
13
2
Approved
42
3
Approved
42
14
DEPARTMENT OF HIGHWAY SAFETY AND MOTOR
VEHICLES
15 (Presented by David Westberry)
16
ITEM
ACTION
PAGE
1
Approved
54
17
DEPARTMENT OF LAW ENFORCEMENT
18 (Presented by Guy Tunnell)
19
ITEM
ACTION
PAGE
1
Approved
57
20
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST
FUND
21 (Presented by Eva Armstrong)
22
ITEM
ACTION
PAGE
1
Approved
80
23
2
Approved
82
3
Approved
93
24
4
Deferred
98
25 CERTIFICATE OF
REPORTER
98
JASKO COURT REPORTING SERVICES,
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.
4
1
P R O C E E D I N G S
2
GOVERNOR BUSH: State Board of Administration.
3
CFO GALLAGHER: Motion on the Minutes.
4
GOVERNOR BUSH: Let's let Coleman describe
5 what the State Board of
Administration is because
6 -- how many people know what
the State Board of
7 Administration is in
advance? I'm curious. No,
8 you don't count. Phil,
the reporter from the
9 Miami Herald knows.
Anybody else?
10
Well, Coleman, you're going to have educate
11 this group because it's
something that's --
12
CFO GALLAGHER: Very important place.
13
GOVERNOR BUSH: It's enormously important.
14
MR. STIPANOVICH: Thank you, Governor; thank
15 you,
members.
16
First of all I'd like to say that the State
17 Board of Administration is
one of only two public
18 funds in the country that
has a surplus of assets
19 that exceed liabilities and
that's really what
20 we're all about is the 12.6
billion surplus that we
21 have to make sure we fund
the future liabilities of
22 our participants and
beneficiaries of the
23 retirement plans. So
under the leadership of the
24 Trustees, I'm happy to
report that.
25
GOVERNOR BUSH: Why don't you describe what it
JASKO COURT REPORTING SERVICES,
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.
5
1 is first --
2
MR. STIPANOVICH: Okay.
3
GOVERNOR BUSH: -- so that they can be
4 impressed that there's a
surplus.
5
MR. STIPANOVICH: Very good, Governor. Thank
6 you.
7
The State Board of Administration was
8 originally created under the
Florida Constitution
9 in 1885 and it was created
to manage a debt
10 service of bond revenues
from gas tax proceeds.
11 Since then of course the
State Board of
12 Administration has evolved
to be one of the largest
13 money management
organizations in the United
14 States. We currently
manage a hundred thirty-seven
15 billion dollars in 25
different managed accounts
16 including the Florida
Retirement System which
17 amounts to a hundred and
three billion dollars.
18 The State Pension Fund
manages seven different
19 asset classes. We
manage domestic equities,
20 international equities,
global equities, fixed
21 income, real estate,
alternative investments and
22 cash and equivalents.
23
There are over 75 investment managers for the
24 State Board of
Administration and we manage over
25 100 investment portfolios
across all these asset
JASKO COURT REPORTING SERVICES,
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.
6
1 classes. We own over
several thousand stocks and
2 hundreds of bonds as well as
hundreds of other
3 investments in real estate
and alternative
4 investments in our internal
and external
5 portfolios.
6
The State Board of Administration is
7 responsible for the Florida
Retirement System
8 Financial Guidance Program,
which was -- came about
9 in 2002, which is the
Defined Contribution Program.
10 This retirement -- this
program is responsible for
11 the education of 635,000
employees covered by the
12 Florida Retirement
System. Employees can access
13 multi-media educational
services free of charge.
14 They can access personal
benefit statements, which
15 helps them in their
financial planning, free of
16 charge. They have
access to one-on-one counseling
17 through -- by phone, on the
computer or in
18 workshops. And it's
an award, nationally
19 award-winning website under
the Defined
20 Contribution Program.
21
Other mandates that the State Board of
22 Administration -- if you
recall I said a hundred
23 three billion dollars of
the hundred thirty-seven
24 billion dollars is the
pension fund and then we
25 have another half a
billion, I'm happy to report,
JASKO COURT REPORTING SERVICES,
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7
1 we finally crossed the half
a billion threshold
2 for the Defined Contribution
Program. But of the
3 balance of 34 billion we
have other mandates. We
4 manage the local government
surplus trust funds,
5 which Leesburg may be a
member of, but for county
6 and local governments.
We manage the Lawton
7 Chiles Endowment Fund.
We manage the Division of
8 Bond Finance Debt Service
Fund and we manage the
9 Florida Hurricane
Catastrophe Fund.
10
The State Board of Administration also
11 provides investment related
to government --
12 assistance to governmental
entities such as the
13 State University System
Optional Retirement
14 Program, the State Senior
Management Service
15 Optional Annuity Program,
and the State Deferred
16 Compensation Plan.
17
The State Board of Administration also
18 administratively supports
the Florida Division of
19 Bond Finance and the
Florida Pre -- College Prepaid
20 College Program.
21
Additionally we also have three special
22 corporations that we
preside over, the Florida
23 Water Pollution Control
Financing Corporation, the
24 Veteran Fraud Restitution
Corporation and Inland
25 Protection
Corporation.
JASKO COURT REPORTING SERVICES,
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8
1
The SBA is committed to providing superior
2 investment performance
services through prudent
3 financial management while
adhering to high ethical
4 and professional
standards. That's our mission.
5 And as fiduciaries, and the
Trustees being the
6 primary fiduciaries and the
Executive Director, we
7 always act in the sole
interest of the participants
8 and beneficiaries of the
Florida Retirement System.
9 That is the State Board of
Administration,
10 Governor.
11
GOVERNOR BUSH: So we have about 760, is that
12 right, 760,000 people that
are participants in the
13 Florida Retirement
System?
14
MR. STIPANOVICH: It's over 800,000, Governor,
15 when you count the 200,000
retirees and the 635,000
16 active members.
17
GOVERNOR BUSH: Just so, I mean, all public
18 school teachers, all School
Board employees, most
19 of the County Commission
employees, all State
20 employees.
21
CFO GALLAGHER: Some city.
22
GOVERNOR BUSH: Some city. What's the -- in
23 terms of the size it's the
--
24
MR. STIPANOVICH: It's the fourth largest
25 pension fund in the country
and the eighth largest
JASKO COURT REPORTING SERVICES,
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.
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1 in the world.
2
GOVERNOR BUSH: And it is of the -- of all the
3 public pension funds, North
Carolina and Florida's
4 pension funds are the only
that have an actuarial
5 surplus, which is something
that --
6
CFO GALLAGER: Good management.
7
GOVERNOR BUSH: -- is attributed to the
8 conservative management but
not overly
9 conservative, good solid
conservative management of
10 the pension fund. And
I'm proud of the fact that
11 we don't get involved in
politics with this. We
12 shield -- our job really as
Trustees is to shield
13 Coleman from all sorts of
political pressures of
14 great ideas to invest in
that may have political
15 ramifications. This
is focused on the
16 beneficiaries, which are
the retirees and soon to
17 be retirees and people that
have this as an
18 important part of their
savings. And, you know,
19 we're not perfect but I
think we do a relatively
20 good job.
21
And it was very encouraging, Coleman. I
22 commend you and your team
for the news that came
23 out a couple weeks ago
about the surplus compared
24 to other places.
25
CFO GALLAGHER: Governor --
JASKO COURT REPORTING SERVICES,
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1
MR. STIPANOVICH: Thank you, Governor.
2
CFO GALLAGHER: -- if I may also mention for
3 those in the audience, you
are -- this is the
4 Trustees meeting that you're
watching happen in
5 public. Some of the
larger pension funds we have a
6 lot of fun talking about how
long their meetings
7 last. They are days
into the meeting, sometimes
8 three and four days.
The California pension funds
9 take that long with the
Treasurer of the State and
10 the Controller of the State
and there are many
11 Trustees all meet in rooms
for days about
12 investments, and investment
advisors, and it takes
13 forever to get anything
settled.
14
You are watching -- we don't get involved in
15 those decisions.
They're non-political decisions
16 made by the staff in the
State Board of
17 Administration. We
oversee and set policy, set
18 guidelines for investments
and let them make the
19 individual decisions, so
there's no political part
20 of it made
whatsoever. No -- and of course, if one
21 of us tried, then Coleman
would tell the other
22 ones. And so none of
us would do that.
23
So, that is probably why we're successful as
24 we are, is there is no
politics involved in it and
25 that's one of the things
that I've been very proud
JASKO COURT REPORTING SERVICES,
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(352) 343-4200 OR
800-779-4200
.
11
1 of as long as I've been
involved in the State Board
2 of Administration.
3
And we thank you for the job you're doing,
4 Coleman.
5
MR. STIPANOVICH: Thank you, Treasurer.
6
GOVERNOR BUSH: Is there -- do we have a
7 motion and a second on Item
1?
8
CFO GALLAGHER: Motion of the Minutes, yeah.
9
GENERAL CRIST: Second.
10
GOVERNOR BUSH: There's a motion and second.
11 Without objection Item 1
passes.
12
Item 2?
13
MR. STIPANOVICH: Item 2, Governor and
14 Members, is really just an
update on the Defined
15 Contribution Program.
It's been probably close to
16 a year since we've done an
update, and the program
17 was implemented on July 1
of 2002.
18
GOVERNOR BUSH: Just start with -- you know,
19 all this Tallahassee
language, we all understand
20 it; but what is Defined
Contribution, Coleman?
21
MR. STIPANOVICH: The Defined Contribution
22 Program, the Legislature
created what they call the
23 Public Employee Optional
Retirement Program, which
24 is really a Defined
Contribution Program. You
25 probably can identify it
with a 401K. It's really
JASKO COURT REPORTING SERVICES,
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.
12
1 a 401A, and the only reason
there's an A instead of
2 a K is because it's a public
plan. So, it's
3 equivalent to a 401K.
And I think most of the
4 people in the room probably
know what a -- your
5 private sector,
self-directed retirement program it
6 would be equivalent to a
401K. The next closest
7 thing would be like an
individual retirement
8 account of which you
literally have all
9 responsibility over.
10
GOVERNOR BUSH: So, we've moved from a
11 defined -- we have now an
option. Most public
12 pensions were defined
benefit, which means that
13 you put money in, or your
employer does, in our
14 case it's the
employer, and you get a fixed amount
15 when you retire based on
how long you served. And
16 that's still available, but
now we're providing
17 this other option which
allows for portability and
18 it allows for you to make
self -- make your own
19 investment decisions.
20
MR. STIPANOVICH: And the program really, the
21 Trustees were very much in
favor of this. Of
22 course the Legislature
passed the law which enabled
23 us to have this
program. But the idea amongst --
24 a couple points that the
Governor made about
25 portability of the plan,
but it's a self-directed
JASKO COURT REPORTING SERVICES,
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.
13
1 program where, you know,
with the right kind of
2 investment education you can
make those kind of
3 decisions, but you're vested
in a year where you
4 can take your assets with
you. Prior to that there
5 was a ten year vestature,
and if you left prior to
6 ten years you didn't get to
take anything with you.
7 Now in the defined benefit
plan it's six years, so
8 you're able to take your
assets with you in the
9 Defined Contribution Program
and make your own
10 investment decisions with a
lot of help from the
11 State in terms of
investment education. So it's
12 really an extra
program. It's an optional program.
13 You're not required to go
into it. You have the
14 choice. You have the
choice of being in the
15 Defined Benefit Program,
which is a guaranteed
16 future retirement or the
self-directed program,
17 which is the Defined
Contribution Program.
18
GOVERNOR BUSH: Thank you.
19
MR. STIPANOVICH: Item 2.
20
CFO GALLAGHER: Motion.
21
GENERAL CRIST: Second.
22
GOVERNOR BUSH: Moved and seconded. Without
23 objection Item 2 passes.
24
Thank you, Coleman.
25
MR. STIPANOVICH: Okay. Thank you.
JASKO COURT REPORTING SERVICES,
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1
GOVERNOR BUSH: Division of Bond Finance.
2 Ben, how are you doing?
3
MR. WATKINS: Pretty good, Governor, thank
4 you.
5
First, an overview of the Division of Bond
6 Finance. My name is
Ben Watkins and I'm the
7 Director of the Division of
Bond Finance. The
8 Governor and Cabinet sit as
my governing board much
9 like they do for the State
Board of Administration.
10 They're wearing a different
hat now and that is the
11 governing board members of
the Division of Bond
12 Finance who is responsible
for borrowing money for
13 the State; and we do that
by issuing tax exempt
14 bonds. So, and it's
known in Tallahassee-speak as
15 an executive branch agency,
which simply means I
16 report to the Governor and
Cabinet. The
17 Legislature determines what
we borrow for and how
18 much we borrow; and then as
an executive branch
19 agency we're responsible
for implementing that
20 legislative directive by
issuing tax exempt bonds.
21
The State has total debt outstanding of 20.4
22 billion dollars as of the
end of 2003. And that
23 consists of various
financing programs for
24 different purposes.
So, for example, we issue
25 bonds on behalf of the
State Board of Education for
JASKO COURT REPORTING SERVICES,
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1 school construction.
And that makes up more than
2 half of the total amount of
debt we have
3 outstanding; so 11 billion
dollars of money has
4 been borrowed for school
construction.
5
Another example is, we borrow money for right
6 of way acquisition and
bridge construction for the
7 Department of
Transportation; and we borrow money
8 for toll roads, like
Florida's turnpike and that
9 makes up another five
billion dollars of the 20
10 billion dollars in debt
outstanding. And we also
11 administer a financing
program for the Department
12 of Environmental Protection
called Preservation
13 2000 or its successor
Florida Forever, and that's
14 used to acquire
environmentally sensitive lands and
15 that's another three
billion of the 20 billion
16 dollars that we have in
debt outstanding.
17
And just to give you a sense of the order of
18 magnitude in terms of what
we do on a day-to-day
19 basis, last year we sold 28
separate bond issues
20 totalling 4.1 billion
dollars. And last year was
21 a little unusual in the
sense that about half of
22 that, about two billion of
the four billion dollars
23 was refinancing debt at
lower interest rates and
24 saving the State money on
our future interest costs
25 on the debt that we have
outstanding.
JASKO COURT REPORTING SERVICES,
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800-779-4200
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1
So, that is our role in State Government.
2
GOVERNOR BUSH: Thank you, Ben.
3
MR. WATKINS: Item number 1 is approval of the
4 Minutes of the March 9th
meeting.
5
GENERAL CRIST: Second.
6
GOVERNOR BUSH: Moved and seconded. Without
7 objection Item 1 passes.
8
MR. WATKINS: Item number 2 is a resolution
9 selecting financial advisors
from -- for the
10 Division of Bond
Finance. From time to time we
11 have the need for
independent review of certain
12 aspects of our financings
and we hire financial
13 advisors. And the
recommendation -- we use the
14 same process that we
normally utilize in engaging
15 professionals, and that is,
we formed a selection
16 committee, and consisting
of six people, three
17 people from my office,
Kevin Stanfield from the
18 Treasurer's Office and Jim
Boxold and Cathy
19 Giordano from Commissioner
Bronson's office. And
20 I'd like to thank them for
their time, effort and
21 energy that they put in in
reading the responses
22 and grading the responses
to the RFP that we
23 received back from the
financial advisors.
24
Based on those, review of the RFP and the
25 grading of the questions,
we rank the firms
JASKO COURT REPORTING SERVICES,
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17
1 according to their
scores. There were nine firms
2 responding. And what I
have done is recommended
3 the top 50 percent of those
firms as qualified
4 firms who will then be put
under contract and
5 engaged on an as-needed
basis on an hourly basis to
6 the extent that we need
independent financial
7 advisors.
8
GOVERNOR BUSH: How do you have -- if you have
9 nine firms --
10
CFO GALLAGHER: Nine firms.
11
GOVERNOR BUSH: -- 50 percent is four and a
12 half firms. Did you
cut one firm in half or
13 something?
14
MR. WATKINS: Well, actually --
15
CFO GALLAGHER: He really meant four.
16
MR. WATKINS: We round it down, Governor, or
17 round it up as the case may
be; but that is the
18 basis for the
recommendation.
19
The four firms that are being recommended are
20 First Southwest Company,
Public Financial
21 Management, Public
Resources Advisory Group, and
22 P. G. Corbin and
Company.
23
Coincidentally, over the last four years we
24 had four firms under
contract that we utilized.
25 And just to give you a
sense of order of magnitude,
JASKO COURT REPORTING SERVICES,
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1 the aggregate amount over
the four year period
2 that we spent on financial
advisory services was
3 only $70,000. So, it's
not a service that we, that
4 we have a great deal of need
for because of the
5 technical expertise we have
in-house.
6
CFO GALLAGHER: But we do have a financial
7 advisor on every one of our
issues?
8
MR. WATKINS: When we do negotiated
9 transactions, our normal
method for selling bonds
10 is to sell them
competitively, which basically
11 means we put them out to
the bid and we accept the
12 lowest interest rate
available in the marketplace
13 on those
transactions. And when we sell bonds
14 competitively we don't need
a financial advisor,
15 but in the exception to the
general rule where a
16 negotiated transaction is
necessary, we do require
17 and use a financial advisor
as an independent check
18 and balance and review of
the pricing of the
19 transaction.
20
GOVERNOR BUSH: Thank you.
21
CFO GALLAGHER: Motion on 2.
22
COMMISSIONER BRONSON: Second.
23
GOVERNOR BUSH: Moved and seconded. Without
24 objection Item 2
passes.
25
Item 3?
JASKO COURT REPORTING SERVICES,
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1
MR. WATKINS: Item number 3 is a resolution
2 authorizing the issuance of
up to 300 million
3 dollars in State
infrastructure bank bonds for the
4 Department of
Transportation. This is a new
5 financing program for the
State. It is -- has been
6 statutorily authorized last
year. We're in the
7 process now of doing the
work necessary in order to
8 structure the transaction,
get bond ratings, and to
9 bring the transaction to
market. The 300 million
10 dollars is simply an
estimate of the possible need
11 for borrowing over the next
four or five years.
12 This simply initiates the
process for
13 authorization. This
will come back to you again as
14 another agenda item prior
to the time we sell
15 bonds. The first bond
issue is expected to be
16 about 40 million
dollars. It funds loans to
17 local governments and
expressway authorities for
18 project -- to finance
projects. It is -- it's not
19 secured by a traditional
State revenue string; so
20 in the majority of cases
it's like a State
21 revolving loan fund that we
set up for DEP to make
22 loans to local governments
for water and wastewater
23 projects. It's the
same sort of concept applied in
24 the transportation
context.
25
CFO GALLAGHER: With no full faith and credit
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20
1 behind it, only the revenue
from the projects or
2 local government.
3
MR. WATKINS: That's correct.
4
GENERAL CRIST: Motion.
5
CFO GALLAGHER: Motion.
6
COMMISSIONER BRONSON: Second.
7
GOVERNOR BUSH: Moved and seconded. Without
8 objection the item
passes.
9
MR. WATKINS: Item number 4 is a report of
10 award on the competitive
sale of the 148 million
11 dollar Department of
Environmental Protection,
12 Florida Forever refunding
bonds. The bonds were
13 awarded to the low bidder
at a true interest cost
14 of 2.86 percent. And
the transaction generated a
15 debt service savings of
approximately 14.2 million
16 dollars or one and a half
million dollars on an
17 annual basis. So,
interest rates have stayed lower
18 for longer and we found
another candidate to do and
19 executed another refunding,
much to my surprise.
20
CFO GALLAGHER: With a total savings of about
21 12 million.
22
MR. WATKINS: On a present value basis, about
23 12 million dollars, yes,
sir.
24
CFO GALLAGHER: Motion.
25
GENERAL CRIST: Second.
JASKO COURT REPORTING SERVICES,
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21
1
COMMISSIONER BRONSON: Second.
2
GOVERNOR BUSH: Moved and seconded. Without
3 objection Item 4 passes.
4
MR. WATKINS: Item number 5 is the update of
5 the debt affordability
report. By way of
6 background and for the
benefit of the audience, one
7 of the things, one of the
initiatives of the
8 Governor and Cabinet in an
effort to better manage
9 the State's finances have
developed a debt
10 affordability study, which
then has subsequently
11 been formalized by
Statute. And what the Statute
12 requires us to do is, on an
annual basis to
13 aggregate all of the debt
that we have outstanding
14 and provide a lot of
information to the Legislature
15 on what our annual debt
service requirements are,
16 how much debt we have
outstanding, and it also
17 established a benchmark
debt ratio. And that debt
18 ratio is simply the debt
service that we have to
19 pay on an annual basis
divided by the amount of
20 revenues that we have
available to make those
21 payments with.
22
So, much like in your personal life it would
23 be the amount of your
mortgage payment divided by
24 the total amount of your
income on an annual basis
25 expressed as a
percentage. And that benchmark debt
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22
1 ratio we established a
target for the State of six
2 percent, or the Legislature,
did established a
3 target of six percent and a
cap of seven percent.
4 And so what we do is to
annually look at this
5 information but then update
this information when
6 the revenue, new revenue
estimates are available.
7 There's a process at the
State level that drives
8 the budgetary process and
those are revenue
9 estimates.
10
So, revenue estimates are provided to give an
11 indication of how much
money we have available to
12 spend for next year's
budget; and then that's used
13 as the basis for
formulating the State's budget.
14
So, we had estimates immediately prior to the
15 legislative session
commencing in March; and the
16 purpose of this update is
to take those new revenue
17 estimates and change the
projections or update the
18 projection for those new
assumptions. And that is,
19 in effect, what the update
provides for.
20
Some highlights of the 2003 report were that
21 our benchmark debt ratio
for the first time
22 exceeded our six percent
target at the end of 2003
23 at 6.12 percent. And
we had total debt outstanding
24 of 20.4 billion dollars and
our annual debt
25 service requirements are
one and a half billion
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1 dollars. So,
what that means is, at each and
2 every year for the
foreseeable future, before we
3 appropriate money for any
other services, we have
4 to set aside a billion and a
half dollars to pay
5 debt service on the bonds
that have already been
6 issued and the money that's
already been spent.
7
Then the debt affordability study then takes
8 all of the financing
programs that we have and
9 makes a projection of what
our excepted issuance is
10 for all of those financing
programs for the next
11 ten years. And for
all of our existing financing
12 programs, the amount that
we expect to issue over
13 the next ten years is ten
and a half billion
14 dollars, and that's with no
new borrowing for
15 constitutional initiatives
for things like high
16 speed rail and class size
reduction.
17
Taking all of that into account, in December
18 we expected that benchmark
debt ratio to continue
19 to grow for the next three
years reaching
20 approximately 6.67 percent,
dangerously close to
21 the seven percent cap that
we -- has been set as a
22 policy limit. The
revenue estimates in March
23 indicate stronger revenue
collections reflecting
24 an improving economy, and
that information is on
25 page 2. So, we expect
approximately 600 million
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1 dollars a year in additional
revenues because of
2 the improving economy
primarily.
3
And when you take the increased revenues
4 combined with our expected
issuance, what we see is
5 that debt ratio coming down
closer to our target,
6 putting us in better
financial shape than we
7 expected to be in December
because we expect to
8 have -- not because of
anything we've done on the
9 borrowing side, but simply
because we expect to
10 have more revenues
available to use to make our
11 debt service payments
with.
12
GOVERNOR BUSH: Ben, are you -- you did not
13 factor in the 500 million
plus or minus 50 million
14 that is -- that the
Legislature, I think, has,
15 they've accepted our
proposal to not indebt the
16 State for Florida Forever
for a portion of PECO or
17 for the capital outlay for
school construction if
18 they would use cash.
That's not included -- looks
19 like you're including debt
for that for this year
20 rather than cash.
21
MR. WATKINS: Right. That wasn't reflected in
22 our initial update,
Governor; and what I've done is
23 to rerun the numbers --
24
GOVERNOR BUSH: Oh.
25
MR. WATKINS: -- with your proposal?
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1
GOVERNOR BUSH: I haven't looked.
2
MR. WATKINS: So, if you may --
3
GOVERNOR BUSH: Looks better, I assume.
4
MR. WATKINS: Absolutely.
5
GOVERNOR BUSH: I hope it looks better.
6
CFO GALLAGHER: It does.
7
COMMISSIONER BRONSON: A little better till
8 next year.
9
Thank you.
10
MR. WATKINS: What the Governor is referring
11 to is the March revenue
estimates indicated over
12 the next two years the
State's going to receive 1.1
13 billion dollars in revenues
that we didn't expect
14 because of the improving
economy. And the
15 Governor's recommendation
has been to, rather than
16 to spend that money on --
basically what we do with
17 that money is to reduce the
amount that we expected
18 to borrow for the current
year by 500 million
19 dollars.
20
So, it takes the additional revenues or the
21 windfall that we got from
the revenue estimates and
22 simply uses cash instead of
borrowing the money for
23 the programs or for the
financing needs that we had
24 indicated would be
forthcoming. So, it's 300
25 million for Florida
Forever, so our annual issuance
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1 under the Florida Forever
Program is normally 300
2 million dollars a year; and
the Governor has
3 proposed using this
additional cash instead of
4 bonds to pay for that
program.
5
GOVERNOR BUSH: Yes.
6
MR. WATKINS: And also an additional 290
7 million dollars for school
construction that would
8 be -- so, using this cash
rather than bonding,
9 preserving our future
bonding capacity for the
10 future.
11
And what that serves to do is to reduce the
12 amount of debt that we
expect to issue over the
13 next ten years, and is a
further improvement in our
14 benchmark debt ratio.
And so you can see with the
15 horizontal line, the green
dotted line is -- and
16 I'm sorry for the --
apologize to the audience that
17 you don't have a picture, a
picture is worth a
18 thousand words -- the
dotted green line was
19 improvements because of the
improved revenue
20 estimates and the red line
is further improvement,
21 bringing that debt ratio
down even further because
22 we're using cash in lieu of
bonding as you've
23 recommended. And what
that serves to do is to save
24 us about a half a billion
dollars in avoided
25 interest costs in the
future.
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1
GOVERNOR BUSH: It's like, it's what I compare
2 it to -- and I really wanted
to mention this
3 because the Legislature
deserves a lot of -- they
4 get criticized a lot, so
does the Governor, I
5 guess, but the Legislature
gets criticized a lot.
6 In this area, if they accept
this, which it appears
7 they will, they deserve a
lot of praise. It would
8 be as though say your family
got a $2,000.00 or
9 $3,000.00 bonus, a one time
shot of money in some
10 fashion or, you know, it
can happen a lot of
11 different ways. Maybe
you called the
12 Treasurehunt.com and you
found 3,000 bucks. So,
13 instead of saying, "Well,
let's go buy --" what we
14 could do with this money is
we could make a down
15 payment on a fancy car, you
know. And then -- but
16 not having any clue on how
you're going to pay for
17 the monthly payments
thereafter. That -- when
18 families do that they get
in trouble. When
19 governments do it, they get
in a heap of trouble.
20 And, you know, look at what
happened to California,
21 because basically they were
taking one time monies
22 to spend on ongoing things
at a rate far faster
23 than the people's ability
to pay for it.
24
So, and the temptation of the Legislature,
25 because there's so many
people up there asking for
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1 well-intended, really good
projects. I mean,
2 everybody's got a great idea
on how to spend other
3 people's money, and they're
doing it with the best
4 of intentions; but the
cumulative effect is there's
5 just this enormous pressure
to spend and spend and
6 spend. And by doing
this, in all honesty we're
7 probably the only state that
I'm aware of that
8 would have the discipline,
if it happens -- and
9 three weeks from now I will
let you know. It'll
10 be, it'll be pretty darned
historic. And I just --
11 both the Speaker and the
President and their
12 leadership teams aren't
going to get the credit
13 from the, you know, the
people that kind of cover
14 what goes on in
Tallahassee, you know, but they
15 deserve it. And I
wanted you-all to know it
16 because it's pretty
extraordinary.
17
CFO GALLAGHER: Governor, on your example, if
18 they got the $2,000.00, if
they put it on their
19 house as opposed to spend
it for the car and low --
20 just put the cash against
the amount they were
21 spending on the house
--
22
GOVERNOR BUSH: To lower their debt, exactly.
23
CFO GALLAGHER: -- to lower the debt is what
24 he's talking about doing as
opposed to, you know,
25 buying something else,
which is what the
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1 Legislature is intending to
do, so.
2
GOVERNOR BUSH: That's exactly right. They
3 would lower their mortgage
or lower their car loan
4 and not buy the car.
5
COMMISSIONER BRONSON: Motion on Item 5.
6
CFO GALLAGHER: Pay off credit cards, do
7 something good.
8
GENERAL CRIST: Second.
9
GOVERNOR BUSH: Are you finished, Ben?
10
MR. WATKINS: One other thing and really just
11 following on, you can tell
me to sit down and shut
12 up at any point,
Commissioner. I work for you, so
13 if you want to be done,
we're done.
14
COMMISSIONER BRONSON: Go ahead. I thought he
15 was through. Go
ahead.
16
MR. WATKINS: One of the things that I would
17 just like to highlight in
reflecting and really a
18 follow on to what the point
the Governor is making
19 is, it's really made my job
easy in dealing with
20 people in the credit
markets and dealing with
21 lenders because of the way
that the State has
22 managed themselves.
23
Through the leadership of this Board and the
24 Legislature, we've made the
very, very difficult
25 decisions early on, post
9/11 to cut spending, to
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1 live within our means.
And no other state did that
2 and they're living with the
consequences of those
3 decisions today.
4
California, for example, authorized 16 billion
5 dollars of debt two weeks
ago by voter referendum
6 and that was just to fill
the hole. That was just
7 to get them even to pay for
their deficit spending
8 in years past, plus another
12 billion for schools.
9 So, in one day in California
they approved 28
10 billion dollars in
debt.
11
Well, it's taken us over a hundred years to
12 accumulate 20 billion
dollars in debt. And so, you
13 see by order of magnitude
we are in far better
14 shape financially than any
other states; and I
15 could go on and on with
examples. Illinois with a
16 ten billion dollar pension
obligation bond to fix
17 their budget hole.
New Jersey tobacco
18 securitization six billion
dollars in order to
19 plug their hole. New
York doing -- using
20 financing technicians
simply to plug holes in
21 budgets.
22
The State of Florida by contrast has the
23 strongest reserves that
we've ever had in our
24 history at 2.6 billion
dollars, roughly 12.2
25 percent of our general fund
spending. Our budget
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1 stabilization fund was never
tapped. So, we are --
2 we have no peer across the
50 states in terms of
3 the strength of our
financial position currently.
4
And so that, in dealing with lenders that
5 makes my job, it's a very
easy story to tell and
6 music to their ears because
what they're looking
7 for is prudent financial
management and
8 conservative
practices. And the Legislature is
9 sort -- has done that and
has put us in a very
10 strong financial
position. And not only that, with
11 your proposal to use cash
in lieu of bonding, not
12 only do we
start out with strong reserves, and
13 having an improving revenue
picture, which helps
14 our debt position, but
we're also now talking about
15 using cash in lieu of
bonding. So, we are far
16 better than any other state
and the growth rate in
17 our debt is flattening
out.
18 I know you-all have been
concerned about the
19 steepness of that
historical development in that
20 benchmark debt ratio and
that is now flattening
21 out. So --
22
GOVERNOR BUSH: Why don't you end the sermon.
23
MR. WATKINS: We're done.
24
CFO GALLAGHER: If I may --
25
COMMISSIONER BRONSON: Governor -- oh, I'm
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1 sorry. The one thing
that I don't know whether all
2 the citizens here
understand, too, and thanks to
3 our forefathers who put this
in the constitution,
4 the Legislature has to
produce a balanced budget at
5 the end of their session;
and therefore, we don't
6 have Legislatures -- number
one, it's good we're
7 only there 60 days and not
like California and
8 they're there every day, but
we actually produce a
9 balanced budget which helps
in this savings that we
10 have.
11
CFO GALLAGHER: If I may.
12
GOVERNOR BUSH: Yes, Treasurer.
13
CFO GALLAGHER: This is a good opportunity for
14 me to mention two
things. California has a hundred
15 billion dollar budget and
ended up with a 30
16 billion dollar shortfall
and that's why they're
17 having the problems they're
having; but the reason
18 that they have this huge
shortfall is they have
19 allowed their constitution
to be amended so many
20 times about so many things
that have given people
21 the idea that there's lots
of free lunches out
22 there and they voted for
things that make no sense
23 whatsoever. And the
people in California have a
24 tax rate for income tax of
about eight or nine
25 percent and they're still
over 30 billion
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1 shortfall. And so I'm
going to take this
2 opportunity to just mention
one thing that I'm
3 really serious about and,
that is, to take this
4 bullet train out of the
constitution.
5
And those of you that would like to help,
6 there are some signature
cards where you can sign
7 the petitions. If
you're interesting in doing
8 that, I'll have some out
here and you can get them.
9 And I urge you if you're a
registered voter to sign
10 that. We need 589,000
of them. We're going to get
11 them, and we'll give the
people an opportunity to
12 vote on it one way or the
other when then they know
13 what the cost is. And
it's a tremendous cost. And
14 it's one of those things,
it's another step that
15 would get us more like
California and it's the kind
16 of thing that none of us
will ever use, but yet it
17 will cost us a tremendous
amount of money and
18 most -- about 50 percent of
the road projects that
19 are out there that we
really do need are at risk
20 for this on a next 20 year
basis. So, we'll have
21 some of those, anybody that
wants to sign them, I
22 thank you.
23
Thank you for giving me the opportunity, Ben,
24 to talk about that.
25
Thank you, Governor.
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1
GOVERNOR BUSH: Ben, do you need a motion
2 on --
3
COMMISSIONER BRONSON: We have a motion,
4 second on 5.
5
GOVERNOR BUSH: There's a motion and a second.
6 Without objection the motion
passes. Thank you.
7
MR. WATKINS: Thank you.
8
GOVERNOR BUSH: And all those estimates do not
9 include, as you mentioned,
so we've been bragging a
10 lot about Florida. We
have a couple of dark clouds
11 on the horizon that we need
to deal with. One is
12 the high speed rail in
terms of the billions that
13 that will cost, how to
finance it. The other -- if
14 it states in the
constitution; the other is the
15 class size amendment which
will cost significant
16 amounts of money as
well. So, while we're in good
17 shape, you know, there are
perils on the horizon.
18 I thank my lucky stars I'm
Governor of this State
19 than others that have
structural problems in their
20 budgets that aren't going
to go away immediately.
21 Makes it easier for us.
22
23
24
25
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1
GOVERNOR BUSH: Department of Veterans'
2 Affairs. Rocky
McPherson, how the heck are you?
3
MR. McPHERSON: Good morning, Governor. Fine.
4
Sir, let me start as we have done this
5 morning by just relating
what our Department does
6 in the State of
Florida. Obviously the same as the
7 other two previous speakers,
the Governor and the
8 Cabinet serve as the agency
head of the Department
9 of Veterans' Affairs; and I,
as their Executive
10 Director, am honored to be
their representative on
11 veterans' issues in our
State.
12
The primary functions that we have in the
13 Department of Veterans'
Affairs are to assist
14 Florida's almost 1.9
million veterans in this
15 State. We are the
second largest state in veterans
16 population second only to
California. And we will
17 overtake California in
about 2015 to 2018 and
18 become the number one state
with veterans
19 population. Veterans
still continue to come to
20 Florida on a regular
basis.
21
The -- we serve four primary functions in our
22 Department; and the first
is benefits and
23 assistance, in which we
help veterans obtain all of
24 the benefits, Federal
benefits to which they're
25 entitled by and that they
earn through their
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1 military service to our
nation. We have in one
2 division about 70 personnel
who are stationed at
3 all six of the V.A.
Hospitals in the State of
4 Florida and at the major
outpatient clinics. And
5 what they do is at every
facility they touch base
6 with every veteran who comes
in; and their main
7 question is, do you -- are
you receiving all of the
8 Federal benefits you earned
in your Federal -- in
9 your military service?
And we find a tremendous
10 number who have not.
And consequently we help them
11 get claims through the V.A.
system.
12
And incidentally, in both medical services and
13 claims, veterans bring 3.5
billion dollars to the
14 State of Florida in
services directly from the
15 Federal V.A. And if
you add to that salaries that
16 come to retired military in
the State of Florida,
17 another 3.5 billion
dollars, the contributions of
18 veterans financially to the
State are money that
19 comes in from the Federal
V.A. and retired salaries
20 is about seven billion
dollars. A tremendous
21 portion of money that comes
into the State that's
22 used by our citizens who
are veterans. So, we
23 assist them on a regular
basis with a large group
24 of folks who are very good
at doing that.
25
The second thing we do is we operate a State
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1 Veterans' Nursing Home
Program. We currently have
2 six facilities. And
I'm proud to announce this
3 morning that our final
newest facility in Port
4 Charlotte received its last
inspection last
5 Thursday at Port Charlotte,
and AHCA is working on
6 their license today and
tomorrow, and we hope to be
7 able to take our first
resident this week. I would
8 like to note that this
inspection was the first
9 inspection that we received
on its initial opening
10 survey from AHCA. It
was absolutely discrepancy
11 free.
12
GOVERNOR BUSH: What's AHCA?
13
MR. McPHERSON: The Agency for Health Care
14 Administration, sir.
And they do the surveys of
15 nursing homes; and along
with the Federal
16 Government they also
monitor our program on a
17 regular basis.
18
So, we're very proud that that newest facility
19 is ready to take its first
resident. We're also
20 very proud that they have
had the best opening
21 inspection of any we've had
in the history of the
22 Department.
23
The -- those five facilities operating right
24 now and the newest one will
take this week are
25 currently operating at 89
percent occupancy. Our
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1 goal is 90 percent but
that's up from 85 percent a
2 year ago. And in Dade
County our facility we
3 opened six months ago, they,
as of yesterday, had
4 48 residents and are on
track to be at full 90
5 percent occupancy by their
one year opening date,
6 which is our program to do
that.
7
The two other programs that we do in addition
8 to benefits and assistance
in nursing homes is, of
9 course we monitor
legislative issues, not only
10 State legislative issues --
and there are currently
11 about 27 bills moving
through the Legislature that
12 in one way or another
affect -- yes, sir -- affect
13 veterans or -- we also
track military service
14 issues. But we
monitor those and work through
15 staff and with those
ensuring that things that the
16 veterans' organizations ask
for are that we can
17 afford and come into State
law.
18
I think it's important to note that in the
19 Federal Government it's
important to highlight how
20 far Florida has come in the
last four years. Four
21 years ago at this time
there were large, large
22 waiting lists at V.A.
facilities. Nationwide
23 almost 450,000 people
waiting for initial
24 appointments for V.A.
health care. In the State of
25 Florida it was about 50,000
people waiting. Today
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1 those waiting lists are down
to less than several
2 thousand in the State and
nationally less than
3 5,000. And it's due to
the fact that the Federal
4 V.A. budget has increased in
the last four years
5 over 40 percent.
Largest growth except for the
6 Defense Department because
of the war on terrorism,
7 largest growth of any
department in Federal
8 government. So there
are resources being put into
9 the Federal V.A. And
as I mentioned, three and a
10 half billion of those come
directly to Florida
11 annually in services and
benefits to our citizens
12 who are veterans.
Tremendous progress, still a
13 ways to go with some small
waiting lists and there
14 are waiting lists in
specialty care issues as well
15 but those are being worked
and the President's
16 budget this year has
additional increases in the
17 V.A.
18
And then the final element that our Department
19 sponsors and cooperates
with, with the support of
20 the Governor and the
Legislature, is what we call
21 honoring veterans. In
Tallahassee today there
22 exists monuments and
memorials to a variety of
23 different things.
There is a Vietnam War memorial
24 that was constructed about
ten years ago. There is
25 a Korean War memorial that
was finished in about
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1 '99. There is a Medal
of Honor wall that honors
2 the 27 Medal of Honor
recipients who are accredited
3 to Florida by the Medal of
Honor Society in the
4 State rotunda in the Capital
in the rotunda of the
5 State Capital. And
finally we are working rather
6 diligently, and it's a final
item on my agenda
7 today, to complete a Florida
World War II memorial
8 in Tallahassee. This
was directed by the
9 Legislature several years
ago and we've been
10 working through fund
raising to do it and we're
11 currently in the design
process of finishing that;
12 and I'll give you an update
on that as a part of
13 the agenda.
14
So, with that, Governor, those are the
15 functions that we perform
in the State on behalf of
16 our veterans.
17
GOVERNOR BUSH: Is there a motion on Item 1?
18
CFO GALLAGHER: Motion on the Minutes.
19
COMMISSIONER BRONSON: Second.
20
GOVERNOR BUSH: Moved and seconded. Without
21 objection the item passes.
22
MR. McPHERSON: Okay.
23
GOVERNOR BUSH: Item 2.
24
CFO GALLAGHER: Motion on 2 and 3.
25
MR. McPHERSON: Yes, sir.
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1
CFO GALLAGHER: Do you want them together or
2 separate?
3
MR. McPHERSON: Together is fine, sir.
4
COMMISSIONER BRONSON: Second.
5
GOVERNOR BUSH: There's motions on Items 2 and
6 3 and seconds. Without
objection the motions pass.
7
MR. McPHERSON: And just for a note, those are
8 our quarterly reports that
we provide to the
9 Governor and the Cabinet on
the performance of our
10 agency to our agency
head.
11
Item 4, sir, is an update on our Florida World
12 War II memorial.
Could I have the first slide,
13 please?
14
You'll see on the wall behind you -- that's
15 very difficult for
you-all. There's a monitor
16 here, and I think the
members have handouts, but
17 the Florida World War II
memorial will be our
18 tribute to veterans in the
State of Florida who
19 served during the World War
II effort.
20
Yes, sir. Next slide, please.
21
The memorial is made up of four elements, and
22 I'll quickly run through
each one of them. The
23 Museum of Florida History
has an exhibit dedicated
24 solely to World War
II. It was dedicated on
25 December the 7, 19 -- 2000
-- excuse me -- 2001.
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1 And it is a pretty good
exhibit. Over the last
2 year we have broken it into
three pieces and they
3 have toured the State, the
various cities. All of
4 that will be coming back
together and rededicated
5 on Veteran's Day 2004 and
I'll show you what that's
6 in conjunction with.
7
Next slide, please?
8
So, World War -- the project to commemorate
9 World War II in Florida also
includes a heritage
10 trial guide series, and it
is a 72-page full-color
11 booklet that identifies
sites and individuals who
12 were significant in the
State of Florida in the era
13 of World War II in this
State. We are receiving
14 tremendous cooperation from
the Department of
15 State with this and we are
very close to printing
16 and we look to be able to
unveil that booklet on
17 Memorial Day this
year.
18
A third element of the World War II project is
19 the high school education
curriculum supplement.
20 If you open a high school
history book today you
21 will find somewhere between
two and ten pages
22 dedicated to World War
II. I don't know how you
23 can cover something that
changed our culture,
24 literally, and changed --
preserved our
25 civilization and our way of
life in two pages in a
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1 history book. So one
of the things we have done in
2 conjunction with the
Department of Education is
3 create a supplement for high
school history
4 teachers. This is very
nearly complete and will be
5 presented to the Governor
and the Cabinet probably
6 in early May. And then
during this summer we will
7 run some teacher
workshops. And this curriculum
8 supplement, a set of
materials that teachers can
9 use to supplement
curriculums on history in this
10 particular era of the 1940
to '50 era, will be
11 available in high schools
this fall.
12
And then the final element is a permanent
13 stone monument that is
under design right now and
14 it will be placed in
Tallahassee on the -- it will
15 be located on the, I think
it's the southeast
16 corner of land in front of
the gray building, which
17 is the Museum of Florida
History, natural
18 connection to the World War
II exhibit inside.
19 We're working through, we
have gotten a pro bono A
20 & E firm to help us
design it. We have a
21 construction company that
is working with us on
22 costing it out and we are
programming it for
23 construction this summer
and groundbreaking on
24 Veteran's Day, November the
11th, which there's an
25 error in that slide, it's
'03 we did a
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1 groundbreaking and '04, this
Veteran's Day, we
2 intend to dedicate it.
3
This is a picture of the World War II
4 monument, the national World
War II monument in
5 Washington, D.C. You
can see on the pedestal up
6 front there's a depiction of
that.
7
Interestingly enough, I was in Washington last
8 week with a meeting of the
30, about 30 of the 50
9 State Directors of Veterans'
Affairs. This
10 memorial was finished last
Friday, and it will be
11 open to the public for the
next two months but
12 officially on Memorial Day
the President will
13 dedicate this memorial, a
national memorial for
14 World War II. The
pillar that you see there is the
15 Florida pillar. It's
about 18 feet tall granite,
16 and it's a replica.
All of the states have them
17 around us. We use
that as the centerpiece model of
18 our design for the Florida
World War II memorial.
19
Next slide, please.
20
This is a graphic depiction of the design of
21 the Florida World War II
memorial that it will be
22 in front of the R. A. Gray
building in Tallahassee.
23 And you can see there the
centerpiece Florida
24 pillar and a walkway that
approaches it. And you
25 see on that walkway there
are markers; and each of
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1 those represents a county in
the State of Florida.
2 And we have provided the
counties opportunities to
3 place on those markers
things that they would like
4 to commemorate their
county's contribution to World
5 War II. We're working
with county commissions to
6 do that. We're looking
to let the contract for
7 this in approximately July,
about a three month,
8 three to three and a half
month construction
9 period. Looking to
have it completed in October
10 and ready for dedication in
November.
11
Next slide, please.
12
This is a depiction of the walkway, the county
13 walkway that approaches the
memorial center area.
14
And next slide.
15
And the final part of the business part of
16 this is to give you a
briefing and an update on the
17 budget. Our
Department of Veterans' Affairs has
18 laid this out, and the
total cost of all the
19 elements of the project
that I've outlined is
20 approximately
$801,000.00.
21
Next slide, please.
22
An update of where we are. We have raised so
23 far $606,000.00 plus
change.
24
Next slide.
25
And we today have the following expenses, a
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1 cash on hand balance of
about $200,000.00.
2
Final slide. I think I have two more.
3
The cost to complete the things that I just
4 showed you is approximately
$373,000.00. So, if
5 you do the math and you'll
find -- next slide -- I
6 have a small deficit that we
are working on
7 fundraising on now,
approximately a $165,000.00.
8
And final slide.
9
The way we're going to that is a Florida World
10 War II Congressional Medal
of Honor Society
11 partnership dinner
scheduled in June of this year,
12 which we hope to raise the
final elements to allow
13 awarding of the contract
and construction of this
14 monument that;s long
overdue for Florida's
15 veterans, in Tallahassee
this summer.
16
That brings to a conclusion the presentation
17 set this morning,
Governor.
18
COMMISSIONER BRONSON: Governor, one of the
19 things that's been amazing
to me is to talk to a
20 lot of people who served in
Florida, training in
21 Florida during World War II
--
22
GOVERNOR BUSH: Yeah.
23
COMMISSIONER BRONSON: -- at all the Navy and
24 Army air bases and the
infantry base that we had
25 here and how many of them
stayed over in the '50's
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1 or came back after the war
was over in the '50's
2 to live in Florida; and the
same thing through the
3 '50's with the air bases and
all that we had here
4 in Florida, so many people
came back after they got
5 out of the service, and
that's why our numbers are
6 so high with our retired
military in the State.
7 And I bet there's quite a
few of them in this room
8 that trained in Florida that
came back here.
9
MR. McPHERSON: Thank you, Commissioner. Yes,
10 sir.
11
GOVERNOR BUSH: I know one that trained
12 here --
13
MR. McPHERSON: Yes, sir.
14
GOVERNOR BUSH: -- that's my dad.
15
MR. McPHERSON: He did, absolutely.
16
With that, sir, that concludes our report on
17 the memorial update, and
unless you have other
18 items I'm through this
morning.
19
GOVERNOR BUSH: Thank you, Rocky.
20
MR. McPHERSON: Thank you, sir.
21
22
23
24
25
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1
GOVERNOR BUSH: Department of Highway Safety
2 and Motor Vehicles.
Did I miss one?
3
MR. WESTBERRY: Good morning, Governor.
4
GOVERNOR BUSH: Good morning.
5
MR. WESTBERRY: It's always a pleasure to be
6 with you on Capital for a
day. Just briefly by way
7 of description, my name is
Dave Westberry, Deputy
8 Executive Director for the
Department. As a
9 Cabinet agency we come
before you periodically for
10 direction and guidance,
some contract approvals and
11 things of that
nature. Our Department mission very
12 simply stated is keeping
our highways safe. That's
13 our core mission.
It's implemented through a
14 number of different program
initiatives and
15 statewide things that we're
trying to do right now.
16
The focal point of the Department has always
17 been education with service
and an enforcement
18 element. Probably the
most visible portion of the
19 Department of Highway
Safety and Motor Vehicles to
20 the citizens of the State
is the Florida Highway
21 Patrol. They are our
largest outreach group, if
22 you will, to the
community. Leesburg is covered by
23 Troop D, which is our
Orlando-based troop, Major
24 Cyrus Brown is with us
today and we appreciate him
25 being with us today.
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1
GOVERNOR BUSH: So, Major, when one of your
2 colleagues gives a ticket
for someone for speeding,
3 you just consider it
outreach? I like that.
4
MR. WESTBERRY: That's part of the education
5 and enforcement jointly.
6
But Central Florida's a tough spot for us. We
7 got 17 Troopers that are
assigned right now to the
8 Lake County area and we do a
good job of working
9 with the local law
enforcement groups. We've
10 appreciated their help and
look forward to working
11 with our new Sheriff down
here.
12
With the help of CFO Gallagher we were able to
13 put 31 new Troopers on the
road here just recently
14 in a graduation
ceremony. The Troop Commanders
15 statewide are looking
forward to having them on
16 the road and we appreciate
your help with that.
17
The other side of our Department that is most
18 visible to the citizens is
in our motor services
19 areas. That's both
our licensing areas and our
20 registration and titling
services that we do with
21 your vehicles and boats and
things of that nature.
22
E-commerce is helping us a great deal on this
23 side to provide a better
service to the citizens in
24 a faster more expedient
manner. On the driver's
25 licensing side we have a
very good office here in
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1 Leesburg that serves
it. It's one of our most
2 productive offices that we
have in the State.
3
And on the motor vehicle side, one of our best
4 partners in the State is our
tax collector here in
5 Lake County, Mr. Bob
McKee. And Bob has been a
6 great friend of the
Department and I'd like to
7 appreciate him as
well. He does a great job of
8 serving the citizens of Lake
County as an agent for
9 the Department down
here.
10
There are a number of things on the horizon
11 for the Department that we
continue to work on.
12 The new driver's
license. We hope the two pilot
13 project offices that will
be up and running
14 sometime in the next 60
days, so we'll begin to see
15 some progress there; and
then hopefully throughout
16 the summer and into the
fall we'll be issuing the
17 new, more secure driver's
license that the citizens
18 will be able to pick up on
and have that in their
19 pocket in the near
future.
20
GOVERNOR BUSH: When you say "more secure,"
21 could you just describe
what it'll -- what features
22 it has?
23
MR. WESTBERRY: Sure. With the leadership of
24 the Governor and the
Cabinet and the Legislature,
25 we have been able to
devise and kind of
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1 reimplement our new driver's
license process to
2 where we not only have a
more secure process, as
3 you come to us and go
through the office in terms
4 of identifying who you are,
getting your background
5 information, security,
making sure that the
6 documents that you provide
us are valid documents
7 of who you are, but the card
itself is embedded
8 with a number of more
physical security issues that
9 will allow us to
authenticate the document law
10 enforcement roadside,
retail merchants, there are
11 just a number of
applications that this will make
12 this a more secure
document. Right now the driver
13 licenses that most of you
have in your pocket
14 probably can be forged by a
good college student
15 on most campuses
statewide. So we're hoping
16 that we're in a position to
make that much more
17 secure.
18
GOVERNOR BUSH: If they forged it for me
19 though I don't think
anybody would believe that I
20 was 21.
21
MR. WESTBERRY: That is one of the new traits,
22 indeed, as well that the
retail merchants are
23 excited about is the under
21 will be flipped in a
24 vertical mode as opposed to
horizontal mode and it
25 will make it much more
identifiable to them.
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1
CFO GALLAGHER: It's the one for under 12 to
2 get in the movies we're
worried about.
3
MR. WESTBERRY: Governor, our agenda item
4 today deals with proposed
rule revisions relating
5 to speed measuring
devices. Rule 15B-2 of our
6 Florida Administrative Code
allows us to implement
7 Florida law regarding the
radar devices and the
8 laser measuring
devices. A while back we put
9 together a radar task force
that was worked through
10 the Department of
Transportation. That group came
11 up with a number of
recommendations. Basically
12 what we felt like it was
time to update our rule.
13 The last update was in
1994. There's a great deal
14 of new technology that's
available out there. We
15 needed to make sure that we
were in a position to
16 have these technologies
properly implemented by our
17 law enforcement folks
statewide. Our biggest
18 concern and priority is
making sure that that
19 information is maintained,
our public trusts, what
20 we've got -- what we have
out there, and that the
21 courts find it
admissible. So we needed to do some
22 revisions to the rule and
that's what you see
23 before you today.
24
CFO GALLAGHER: Motion on 1.
25
COMMISSIONER BRONSON: Second.
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1
GENERAL CRIST: Second.
2
GOVERNOR BUSH: Moved and seconded. Without
3 objection the motion
passes.
4
Thank you, David.
5
MR. WESTBERRY: Thank you, Governor.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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1
GOVERNOR BUSH: Department of Law Enforcement.
2
Thank you. Guy's a big man. He can't get
3 around you.
4
MR. TUNNELL: Don't want to knock him over.
5
Good morning, Governor, members of the
6 Cabinet, citizens of the
Leesburg area. What a
7 beautiful place in our
State.
8
For your benefit, I'm Guy Tunnell. I'm the
9 Commissioner of the Florida
Department of Law
10 Enforcement or
F.D.L.E.
11
We are, too, a cabinet agency much like my
12 predecessor speakers.
13
Governor, before we get started with our order
14 of business, I'd like to
give a brief overview of
15 F.D.L.E. and our mission
for the benefit of the
16 members of the public that
are here today.
17
We are a statewide law enforcement agency.
18 The Leesburg area is
covered out of our Orlando
19 Regional Operations
Center. Our mission is to
20 promote Florida safety for
Florida citizens and
21 visitors. We do this
through a close partnership
22 with local, State and
Federal criminal justice
23 agencies. In doing so
we provide investigative
24 services and crime lab
analysis to both local and
25 State agencies, law
enforcement and correctional
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1 officer standards and
training oversight, and
2 criminal history information
services to members of
3 the public and criminal
justice customers.
4
Of course F.D.L.E. is also working very
5 closely with our public
safety partners to promote
6 our domestic security
preparedness and response
7 capabilities within the
State of Florida. One
8 aspect of this domestic
security is protecting
9 ourselves from
cybercrime. Earlier this month we
10 kicked off a statewide
training initiative called
11 CSAFE. That's another
acronym. It stands for
12 Cyber Security Awareness
For Everyone.
13
Our computer crime center has been providing a
14 series of one day seminars
to citizens in
15 businesses on cyber
security throughout the State
16 and it's been very
successful to date. We have
17 delivered some seven
training sessions with
18 approximately 300 attendees
and we today are
19 fortunate to have one of
our crime, computer crime
20 experts here today, Mr.
Andy Valentine. He'll be
21 at our F.D.L.E. booth in
the agency fair available
22 for public questions and to
assist them with
23 protecting their cyber
assets. He'll also be able
24 to sign up citizens that
are interested in
25 receiving that training
session. We have plenty of
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1 seats left for tomorrow's
class in Bartow. Next
2 month we'll have classes in
both Orlando and
3 Daytona Beach. We
certainly hope the public will
4 stop by the booth after the
Cabinet meeting and
5 learn more about cyber crime
and how to protect
6 their assets.
7
We have only one item on today's agenda, Item
8 number 1. We
respectfully submit for approval
9 F.D.L.E.'s second quarter
performance report and
10 our contracts and purchases
over $100,000.00 for
11 October 1 through December
31, 2003.
12
COMMISSIONER BRONSON: Move Item 1.
13
GENERAL CRIST: Second.
14
GOVERNOR BUSH: There's a motion and second.
15 Any discussion?
16
Without objection the item passes.
17
Thank you, Guy.
18
MR. WESTBERRY: Thank you, Governor, Cabinet.
19
20
21
22
23
24
25
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1
GOVERNOR BUSH: Board of Trustees of the
2 Internal Improvement Trust
Fund.
3
CFO GALLAGHER: Now, there's a good one to
4 explain.
5
GOVERNOR BUSH: Why is it called the Internal
6 Improvement Trust Fund,
Eva?
7
MS. ARMSTRONG: Well, I must admit that the
8 people who created the State
in 1845 came up with
9 that name and I guess when
they donated all those
10 acres from the Federal
Government in 1845, which
11 was 500,000 acres of swamp
and overflowed lands
12 plus the sovereignty
submerged lands of the State,
13 decided that internal
improvement, which was the
14 lands were given to the
State so that the Board of
15 Trustees at that point in
time could sell them and
16 that was the cash that
funded the State. And so
17 internal improvement meant
that then the Board of
18 Trustees could go out and
fund government, and that
19 was Internal Improvement at
that time. I guess it
20 made sense to them,
huh?
21
GOVERNOR BUSH: Thank you.
22
MS. ARMSTRONG: Today it's like, what is
23 internal improvement?
Today it funds our
24 operations and yours.
25
CFO GALLAGHER: We're still selling land,
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1 though, I'll tell you
that.
2
GOVERNOR BUSH: Why would we sell wetlands to
3 finance, you know,
government now? Now, it's all
4 backwards, we're undoing
--
5
CFO GALLAGHER: Right.
6
GOVERNOR BUSH: -- what we did two, three,
7 four generations ago at a
little bit, a little more
8 expense than it costs to
drain the swamps to
9 populate the State.
Now we're trying to replumb
10 and go backwards, which is
--
11
CFO GALLAGHER: Pretty expensive.
12
GOVERNOR BUSH: -- full of ironies and full of
13 billions of dollars of cost
but it's worth doing, I
14 think.
15
And the other part of what you do that you're
16 going to explain is that
you preserve what remains
17 so that it doesn't have to
be replumbed afterwards.
18
MS. ARMSTRONG: Yes, sir.
19
CFO GALLAGHER: I think I just might mention
20 that one of the things that
set up this Board of
21 Trustees was that we had
appointed Governors for
22 awhile and they were giving
the land away to their
23 friends. So the
constitution set up the Board of
24 Trustees on the Internal
Improvement Trust Fund
25 that required a super
majority of the Cabinet to
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1 sell land as opposed to the
Governor doing it
2 himself. That's not
this Governor, this is 1845.
3
MS. ARMSTRONG: Way back, yes, sir.
4
CFO GALLAGHER: And this was a protection so
5 that the State at least got
some money for what was
6 being put out to the private
sector.
7
MS. ARMSTRONG: So with that --
8
GOVERNOR BUSH: Thank you. Treasurer
9 Gallagher is the only one
here that actually knows
10 this firsthand because he
was serving in government
11 at the time back when
Governors were appointed.
12
CFO GALLAGHER: That's what happens when
13 you're the oldest one up
here, you know.
14
GOVERNOR BUSH: It's the standard joke.
15
CFO GALLAGHER: I know I don't look it, but --
16
GOVERNOR BUSH: Exactly. You'd be surprised
17 that he is actually older
than the gentleman who
18 wrote the book about being
a hundred.
19
CFO GALLAGHER: I'm hoping I'm looking as good
20 as he is when I'm 70.
21
GOVERNOR BUSH: Eva.
22
MS. ARMSTRONG: So, with that, if I might --
23
GOVERNOR BUSH: You might.
24
MS. ARMSTRONG: -- my name is Eva Armstrong.
25 I'm the Division Director
for State lands. I'm
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1 here this morning replacing
Secretary Colleen
2 Castille because she's in
front of the Senate
3 Natural Resources Committee
for her first
4 confirmation hearing this
morning. So, she sends
5 her regrets.
6
With that, I am here for the Department of
7 Environmental Protection,
the Division of State
8 Lands, and we represent the
Board of Trustees on
9 these matters. We --
the Department actually does
10 a number of things for
you. I feel kind of odd
11 because I'm kind of at your
back. I'm going to do
12 what the guys didn't do,
I'm going to turn around,
13 if that's okay. We
take care at the Department of
14 Environmental Protection of
air quality issues for
15 you, water issues, any kind
of contamination
16 issues. We have
State, five -- six district
17 offices around the
State. Vivian Garfine is the
18 Central Office District
Director. She's here this
19 morning. I'd like to
ask her to stand.
20
Also for the Governor, I think you've met
21 Vivian, but she's heading
up the Wekiva River Task
22 Force, which has been a
monumental task force
23 effort. And --
24
GOVERNOR BUSH: Did you close the deal,
25 Vivian?
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1
MS. ARMSTRONG: -- I don't know how she's
2 managed to manage all those
cats she's been
3 herding, but she's done a
phenomenal job. And I
4 don't handle any of the
regulatory issues, so I'm
5 going to stop there on
regulatory stuff.
6
My job is to run what is basically the State's
7 real estate portfolio on
your behalf. The Board of
8 Trustees act as the managers
for that real estate
9 portfolio. Right now
it's over two million acres
10 worth. And the
majority of that are the lands that
11 have been bought with what
you've heard about
12 before, Preservation 2000
and Florida Forever
13 lands. And this is
the fun part of the agenda.
14 This was where you guys get
involved. How many of
15 y'all have been to a State
forest which is managed
16 by Commissioner Bronson,
right? Raise your hands.
17 A lot. Look at
this. That's good. That's very
18 good for him, he likes
that.
19
GOVERNOR BUSH: Not many people --
20
MS. ARMSTRONG: They all like that.
21
GOVERNOR BUSH: -- knew the State Board of
22 Administration were people
who have gone to our
23 forest? That's
good.
24
MS. ARMSTRONG: How many people -- a lot more,
25 isn't it? How many
have been to a State Park,
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1 raise your hands. Very
good.
2
In fact, a lot of you -- you should have come
3 in this morning found a card
on your seat with
4 Florida State Parks,
right? Very good. We're
5 going to use that in just a
minute. How many of
6 you have actually camped in
a State Park? Usually
7 a little bit fewer.
8
Have you been to a cabin yet in the State
9 Park? 'Cause that's
the really good news today. I
10 have brought with me --
we've changed our agenda a
11 little bit from before for
y'all. I like to keep
12 y'all surprised, too.
13
GOVERNOR BUSH: Keep it complicated.
14
MS. ARMSTRONG: We have two big surprises on
15 today's agenda. The
first one is State Parks.
16 I've actually brought with
me the State Parks
17 Director for the State of
Florida, Mike Bullock.
18 He had to completely
rearrange his agenda to be
19 here today, so he's going
to tell you about where
20 some of those fabulous
cabins are nearby that you
21 can go to. And on
that card is the 1-800 number
22 that you can call to
reserve a camp site or a
23 cabin. And if you
call those places, that number,
24 and you can't get in the
one you particularly want
25 to go to, they'll arrange
for a site nearby that
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1 you can go to instead.
It's a phenomenal service
2 that we've only started
providing two years ago,
3 maybe? I'm telling
you, it's great. I use it
4 personally. So, we
have spent a lot of money
5 buying the lands for
you. They're wonderful parks
6 out there, forests, hunting
places, greenways, and
7 we now are putting cabins in
and wonderful
8 facilities for you.
And I want to encourage you,
9 if you haven't been;
go. If you have been going,
10 go to more; and he's got a
couple surprises to tell
11 you more about it. So
with that, this is Mike
12 Bullock.
13
GOVERNOR BUSH: Sounds like the -- you sound
14 like Bob Barker and the
Price Is Right.
15
MS. ARMSTRONG: Well, we want to get them out
16 there, don't we?
17
GOVERNOR BUSH: Yes, we do.
18
MR. BULLOCK: And thank you, Eva. With that
19 introduction, I'm not sure,
maybe we can cut back a
20 little bit on our marketing
budget. What a PR
21 person.
22
Good morning, Governor, Members of the
23 Cabinet, I'm Mike
Bullock. I think I have
24 probably the best job in
the Department of
25 Environmental
Protection. Our mission is pretty
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1 simple. We provide
resource-based recreation while
2 preserving and protecting
Florida's natural and
3 cultural resources. A
pretty big program. Florida
4 is blessed through its
leadership. The areas that
5 have been acquired for
preservation for your use is
6 just, really it's
awesome. If you haven't had a
7 chance to visit all of our
State Parks, we would
8 really welcome you to come
out and see what Florida
9 has to offer.
10
Just a quick overview of some of the things
11 that's going on for
us. Last fiscal year we had a
12 record attendance for State
Parks, over 18.2
13 million visitors attended,
visited State Parks. If
14 you think about it, that's
more than the population
15 of the State. So,
we're quite proud of the fact
16 that people enjoy what the
State has to offer.
17
This year so far for the same time frame last
18 year, we're almost 2.5
percent ahead of that
19 schedule. So we're
looking really for another
20 record year for visitation
in State Parks. If our
21 weather holds, great spring
we're having, there's
22 no doubt in my mind that
we're going to beat last
23 year's record.
24
Florida State Parks, we have some 158 units
25 that we manage. There
are over 700,000 acres in
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1 the State Park System at
this point, and, Eva, with
2 the help of the Trustees,
we're continuing to grow
3 and find new areas that
should be brought into the
4 system.
5
They -- one of the facts that we're very proud
6 to talk about when we tell
people about State Parks
7 is, first of all, if you
don't enjoy State Parks
8 for any other benefit, the
State Parks provide a
9 tremendous economic impact
for the State. We use a
10 formula that's derived by
the national park service
11 to calculate the
number. And last year the
12 calculation was 575 million
dollars worth of direct
13 economic impact for the
State. And part of that
14 formula, over 40 million
dollars of sales tax is
15 generated that goes into
the State general revenue
16 fund. And one of the
things that we're really
17 proud of also is that jobs
that are generated in
18 the vicinities of State
Parks, over 11,000 jobs are
19 provided in local
communities to support what goes
20 on in State Parks.
21
The parks in your region, of course I hope all
22 of you have had a chance to
visit the Lake Griffin
23 State Park, which is just
right up the road. Lake
24 Griffin is located in our
District 3. We have five
25 operating districts.
And the economic numbers for
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1 District 3 for this area is
over 96 million dollars
2 worth of direct economic
benefit for your region.
3 Some six, or almost seven
million dollars worth of
4 sales tax are collected, and
almost 2,000 jobs are
5 provided in this area just
because of the parks
6 that you have to enjoy
here.
7
Another thing that we're real proud to tell
8 people about is our
volunteer program. Last year
9 we had over 6,000 volunteers
donate some 933,000
10 hours of volunteer time in
State Parks. This
11 equates to almost 450 full
time employees to carry
12 on the mission of the State
Park System. So, the
13 thing that it tells me are
the citizens of the
14 State, they love their
State Parks and they're
15 willing to get involved and
come out and see what
16 we have to offer.
17
Eva, Eva had mentioned our cabin program and
18 rather than tell y'all
about the programs, I really
19 would like to take the
opportunity to tout
20 something that's brand new
right off the market.
21
GOVERNOR BUSH: You shamelessly promote. Go
22 ahead.
23
MR. BULLOCK: We have just developed a State
24 Park Passport. This
will be for sale for the
25 public in the very near
future. It has all of the
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1 parks listed in it. It
tells you about it. The
2 great thing about is it,
when you visit the parks,
3 like a passport, you can get
it stamped. And after
4 you visit all of the State
Parks you'll be able to
5 mail in a card and we'll
send you a gift to show
6 our appreciation.
7
And, Governor, we'd like to share this one
8 with you. We only have
one copy at this time. The
9 order should be in in about
two weeks and we will
10 be able to have those on
line for your purchase and
11 enjoyment.
12
Finally, thank you, Governor, Cabinet Members,
13 for your support of the
State Park System. We are
14 proud to be able to take
care of the resources for
15 you, and anything we can do
to help you, please
16 call on us.
17
GOVERNOR BUSH: Thank you.
18
MS. ARMSTRONG: So with that, what we'll do
19 is, we have one extra
special event here for you.
20 We brought in Wes Skiles,
who is our springs expert
21 extraodinaire. He has
taken the one hour long
22 video, condensed it to ten
minutes. And with that,
23 we'd like to ask the
Cabinet Members to just step
24 down here so you can see
it. It's going to be on
25 this wall.
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1
Wes, do you want to go ahead and start it or
2 do you want to come
introduce it real quick, but
3 you need to make short
comments 'cause we're on a
4 short time spot.
5
MR. SKILES: Okay. Appreciate the opportunity
6 to be here. Water's
Journey is the realization of
7 a lifetime goal to tell the
story the about
8 world's greatest water
supply, the Floridan
9 aquifer. And this film
is a tribute really to this
10 administration and many
efforts to approach
11 solutions-oriented style
and story-telling and
12 education and outreach to
get public consensus to
13 embrace water supplies and
to support them and
14 protect them. This is
a short version of the one
15 hour film Water's
Journey.
16
(Whereupon a videotape was played, but not
17 transcribed at this
time.)
18
GOVERNOR BUSH: Wow.
19
GENERAL CRIST: Well done.
20
GOVERNOR BUSH: You're pretty courageous.
21
MR. SKILES: Everybody calls me stupid
22 usually. I appreciate
that.
23
GOVERNOR BUSH: That's the flip side of
24 stupid.
25
MR. SKILES: We have copies of the full length
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1 film, and I would really
like to thank this
2 administration for their
continued support of the
3 Florida Springs Initiative,
which, Governor, you
4 helped develop and put into
effect. That's the
5 legislatively funded 2.5
million dollars a year
6 focused at protecting,
managing and doing outreach
7 associated with springs; and
this has been making a
8 great difference in our
efforts to protect
9 Florida's precious water
supply.
10
GOVERNOR BUSH: How long -- how far were you,
11 did you travel on that
particular -- where was that
12 and how far did it -- did
you go?
13
MR. SKILES: We actually did a series about of
14 dives in five different
systems to illustrate all
15 the different varieties of
places that Florida's
16 groundwater travels
underneath. Of course it's
17 ubiquitous. It covers
the entire State and is our
18 drinking supply; but we
were mainly up in the High
19 Springs, Lava, Lake City
area and then also down in
20 Hernando County region.
21
GOVERNOR BUSH: This is -- I think it's
22 appropriate just to bring
up really briefly why the
23 discussions that -- why I
signed the Executive
24 Order to try to bring
consensus on the Wekiva area,
25 why it's important for the
Legislature to reach
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1 consensus, why a lot of our
Florida Forever monies
2 need to go to purchase this
property. You know, if
3 you fly over the Wekiva, it
is in Central Florida
4 the one place where water
resources exist in their
5 natural state and have not
been altered.
6
There's enormous pressures on development and
7 you can see the
impact. I think people think
8 there's got to be a nexus to
the water to have an
9 impact on water supply and
water quality. And in
10 fact, what this thing, the
beauty of your work is
11 that it shows how water
moves and how impacts will
12 have, you know, can have a
dramatic impact on all
13 the watersheds far beyond
where you think they do.
14
And we're here, you know, in a county where
15 there's south of here
there's enormous pressure for
16 development that competes
with the interest of the
17 natural systems; and we're
struggling to find a way
18 to reach some common
ground, but we got to do it.
19 We have to. If not,
then what we fly over and see
20 will be altered forever,
so. Your part of the
21 solution is appreciated,
what you do. Even though
22 you are -- it's a little
scarey to think about
23 doing what you do. My
gosh.
24
MR. SKILES: No cave divers were hurt in the
25 making of the film.
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1
Yeah, windows of the aquifer is truly what
2 springs are. They're
the true indicator of the
3 health and quality of
Florida's drinking water
4 supply, and we have to use
these springs to better
5 understand the fate of
Florida's water future. And
6 we really appreciate the
forward thinking that
7 you're putting into these
issues; and, Commissioner
8 Bronson, your continued
support of BMPs and our
9 need to push BMPs onto other
aspects other than
10 agriculture, into business
and to water use will be
11 very helpful in helping
protect Florida's water
12 supplies.
13
COMMISSION BRONSON: Best management
14 practices.
15
GOVERNOR BUSH: Yes, General. Thank you.
16
GENERAL CRIST: I just have a question in
17 watching the video.
How do you keep from having
18 one of the hoses that go to
your tank getting
19 ripped on some of those
rocks?
20
MR. SKILES: Good question. When you watch
21 the one hour film you
realize that that's exactly
22 what happens.
23
GENERAL CRIST: It did happen?
24
MR. SKILES: We had a gas failure into one of
25 the masks from abrasion and
sand and we had to
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1 abort that particular dive
and exit the cave. It's
2 a -- it's a bit like space
exploration, you have to
3 be -- I carry a lot of extra
equipment. You need
4 two of everything, and like
flying a jet on a
5 mission, you have to save at
least two-thirds of
6 your gas to always exit the
way you came from in
7 case you don't find a
way.
8
GENERAL CRIST: I guess we should tell the
9 audience, that was done by
professionals. Do not
10 try that at home. It
could be very dangerous.
11
MR. SKILES: Per attempt it's the most
12 dangerous sport on
earth.
13
COMMISSIONER BRONSON: Governor, I'd also like
14 and something that can be
verified here today,
15 something that has been
known since the day of the
16 Spaniards coming off the
coast is the fissures that
17 are created in our lakes,
Lake Jackson in
18 Tallahassee is a prime
example, that every so many
19 decades will drain itself
and then refill itself
20 and those fissures, what
goes up will pull down.
21 Some of the lakes that you
have around here are
22 exactly the same. You
have fissures coming out of
23 those springs feeding those
areas. And even
24 offshore the Spaniards used
to locate all of those
25 fissures where the fresh
water came up and they
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1 would actually drop their
buckets down, because the
2 fresh water would push the
salt water aside and
3 they would fill their
buckets up there to refill
4 their kegs of water when
they were traveling. So,
5 I mean, this, the known
fissure system has been
6 there a long time but it's
taking modern technology
7 to tell us exactly what it
looks like and the
8 problems that we're
having. So, I appreciate all
9 your work and I know
agriculture is working very
10 hard because of your work
to clean up a lot of the
11 systems that we have around
those farming areas to
12 keep runoff from going back
into those systems.
13
MR. SKILES: It's much appreciated.
14
COMMISSIONER BRONSON: Thank you very much.
15
CFO GALLAGHER: And just so the audience
16 knows, Charlie was there
when those ships came in
17 from the Spanish.
He's our historian on Florida.
18
GENERAL CRIST: He means Bronson.
19
GOVERNOR BUSH: Thank you very much.
20
Eva, you want to start the agenda?
21
MS. ARMSTRONG: Yes, sir. Our first agenda
22 item is substitute Item
1. It is an option
23 agreement to buy one of
Florida's first magnitude
24 springs. It's in
Morrison Springs, Florida Forever
25 project. If my staff
would, like, jump up and do
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1 these maps like right now,
hurry quickly on both
2 sides. We have maps
for the audience to be able to
3 refer to, although it is a
bit of a distance, I
4 apologize for that.
5
This is being bought at 94 percent of
6 appraised value for 3.4
million dollars. I want to
7 point out, it was
historically a first magnitude
8 spring. Although since
1942 the spring flows have
9 dropped. It is now a
second magnitude but it is of
10 high value, and we wanted
to go and acquire it.
11
CFO GALLAGHER: Would you describe magnitude
12 so people in the audience
will know --
13
MS. ARMSTRONG: Yes. That relates to the
14 amount of water coming out
of a spring. And I
15 don't know the exact flow
levels, but we do have
16 Mike Bascom who can explain
that. You want to
17 explain that?
18
MR. BASCOM: Certainly. First magnitude
19 spring -- good morning,
Mike Bascom with the
20 Department of Environmental
Protection.
21
A first magnitude spring constitutes a spring
22 of greater than a hundred
cubic feet per second
23 discharge, which roughly
equates to about 65
24 million gallons per
day.
25
For the Morrison Springs site it's roughly
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1 about 45 million gallons per
day, so it's 75 cubic
2 feet per seconds discharge;
so it's a large second
3 magnitude spring
currently.
4
GOVERNOR BUSH: And this purchase is, Walton
5 County is going to be the
Manager of the property?
6
MS. ARMSTRONG: Yes, sir. And Mr. Ronny
7 Bell --
8
GOVERNOR BUSH: Are there any restrictions on
9 use?
10
MS. ARMSTRONG: We'll develop a management
11 plan and it'll be managed
according to the
12 management plan. Mr.
Ronny Bell, the County
13 Manager is here if you have
questions.
14
CFO GALLAGHER: We are, we are holding back
15 any special uses?
That land must come back in
16 front of the Cabinet, such
as a water bottling
17 plant --
18
MS. ARMSTRONG: Yes, sir.
19
CFO GALLAGHER: -- or anything like that?
20
MS. ARMSTRONG: Yes, sir.
21
GOVERNOR BUSH: Well, I mean, we're buying
22 this based on the water
value of --
23
MS. ARMSTRONG: Yes.
24
GOVERNOR BUSH: We're not buying it for the
25 land value, we're buying it
for the, I guess some
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1 present value of the
commercial, potential
2 commercial value of the
spring, correct?
3
MS. ARMSTRONG: Right. Well, it was --
4
GOVERNOR BUSH: Does that mean --
5
MS. ARMSTRONG: -- it was appraised based on
6 its being available
for a bottle watering company
7 because of the adjacent
sales in the area for that
8 use.
9
GOVERNOR BUSH: So, the question is, do they
10 have, like our land
purchases -- you know what my
11 question is going to be --
do they have an
12 entitlement already for
--
13
MS. ARMSTRONG: I have the appraiser here who
14 can answer that
question. Would you like that?
15
Mr. Cameron, would you please explain how you
16 came to your highest and
best use determination?
17
GOVERNOR BUSH: Just simply, is this a
18 perspective value that you
estimated or -- come up
19 please. I won't
bite. Or a --
20
CFO GALLAGHER: Except on these issues.
21
GOVERNOR BUSH: -- or is this an entitlement,
22 a development right that
already has -- the
23 property already has?
24
MR. CAMERON: The appraised value that I came
25 up with was a value
predicated on a highest and
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1 best use of a water bottling
facility. Essentially
2 they --
3
GOVERNOR BUSH: Right. Do they have that
4 value now?
5
MR. CAMERON: They have a consumptive use
6 permit of 1.44 million
gallons a day.
7
GOVERNOR BUSH: So they have the consumptive
8 use permit; and we're buying
it based on the fact
9 that if we don't buy it,
they could --
10
MR. CAMERON: That's correct.
11
GOVERNOR BUSH: -- mine it, if you will?
12
MR. CAMERON: That's correct.
13
GOVERNOR BUSH: We wouldn't get the same -- we
14 wouldn't have to pay the
same amount if neighboring
15 properties that you
appraised had a consumptive use
16 permit and this one
didn't?
17
MR. CAMERON: That's correct. And the
18 comparable sales we used --
19
GOVERNOR BUSH: So, who gives out the
20 consumptive use permits and
how long -- what are
21 the values -- how long do
they last?
22
MR. CAMERON: That's --
23
GOVERNOR BUSH: It's the Water Management
24 Districts? And what's
the term?
25
MR. BASCOM: In this area it's Northwest
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1 Florida Water Management
District. The term is
2 generally about six years,
but that can be
3 negotiated at the time of
the permit being issued.
4
CFO GALLAGHER: And this one is?
5
MR. BASCOM: That's correct, it would be six
6 years for a consumptive use
permit. In this area
7 they consider this least
restrictive use. So any
8 consumption up to 1.44
million gallons a year would
9 not require a permit process
but would rather be
10 consent by rule.
11
GOVERNOR BUSH: For six years only, then
12 they'd have to renew
it?
13
MR. BASCOM: That's correct.
14
GOVERNOR BUSH: And you appraised this based
15 on that --
16
MR. CAMERON: Yes, sir.
17
GOVERNOR BUSH: -- that six year flow and then
18 just assume it'd be renewed
or --
19
MR. CAMERON: We looked at the comparable
20 sale, the best comparable
sale we had was in
21 Washington County, which is
an adjoining county,
22 and Cypress Springs sold
for 3.5 million. And it
23 also had the same allowed
consumption of 1.44
24 million gallons a
day. So that we kind compared
25 the springs on a hole to
hole basis.
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1
CFO GALLAGHER: Same acreage?
2
MR. CAMERON: No, it had less acreage, only
3 had 40 acres, but it was a
first magnitude spring.
4 So there was adjustments we
had to make in
5 comparing this spring and
the other two springs we
6 used as comparables to the
subject property.
7
CFO GALLAGHER: Was that a cash purchase?
8
MR. CAMERON: Yes.
9
CFO GALLAGHER: Did we purchase it or somebody
10 else?
11
MR. CAMERON: Somebody else.
12
And there's a potential that that spring could
13 be sold for water bottling
use.
14
CFO GALLAGHER: Okay.
15
GOVERNOR BUSH: Thank you.
16
MR. CAMERON: Thank you.
17
CFO GALLAGHER: You get more for water than
18 you do gas.
19
GOVERNOR BUSH: Is there a motion on Item 1?
20
CFO GALLAGHER: Yes. Motion on 1.
21
COMMISSIONER BRONSON: Second.
22
GOVERNOR BUSH: Moved and seconded. Without
23 objection, Item 1 passes.
24
MS. ARMSTRONG: Item 2 is the Zimmerman
25 Acquisition
Agreement. This is a corkscrew
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1 regional ecosystem watershed
project. It is for .9
2 acres,
$268,750.00. It is for 125 percent of
3 appraised value. And
in August of 2001 this Board,
4 slightly different
membership, approved the
5 purchase or offers being
made at a 125 percent of
6 appraised value within this
project area because of
7 the difficulty with rapid
increase of land values
8 in the area and the critical
nature of the project
9 to Everglades
restoration.
10
I have Jackie Ripp with the Southwest Water
11 Management District here
who can answer questions
12 regarding the technical
nature of the restoration
13 project if you desire.
14
There is a house on the site. It is vacant
15 and it will be removed in
order to flood the area.
16 If you have any questions?
17
GOVERNOR BUSH: There any questions?
18
CFO GALLAGHER: Motion on 2.
19
GENERAL CRIST: Second.
20
GOVERNOR BUSH: Moved and seconded. I'm going
21 to be on my best behavior
since we're not at home.
22
MS. ARMSTRONG: You know you really want to
23 ask a question.
24
GOVERNOR BUSH: No.
25
MS. ARMSTRONG: You want to ask a question. Go
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1 ahead, ask a question.
2
GOVERNOR BUSH: No, no.
3
MS. ARMSTRONG: That way they get to see what
4 you like to ask.
5
GOVERNOR BUSH: No, I don't want to do that.
6
MS. ARMSTRONG: Okay. All
right.
7
GOVERNOR BUSH: I don't want -- sometimes I
8 get a little passionate
about these things but I'm
9 going behave in front our
guests, our hosts.
10
MS. ARMSTRONG: Okay.
11
GOVERNOR BUSH: There's a motion and a
12 second --
13
MS. ARMSTRONG: He just cares a lot about the
14 way we spend our money,
that's what he's talking
15 about, okay.
16
GOVERNOR BUSH: Moved and seconded. Without
17 objection, the item
passes.
18
MS. ARMSTRONG: Item 3 is the sale of State
19 owned land in Alachua
County. This is a Murphy Act
20 parcel. And what I
wanted to explain to the guests
21 is that Murphy Act lands,
during the depression
22 when a landowner couldn't
make their taxes, the
23 land reverted to the State
of Florida. So that we
24 have a lot of these little
parcels scattered around
25 the State, I mean lots of
them.
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1
In this case it's actually 22.42 acres. Could
2 we get those -- and where is
Cathy Keyes? If she'd
3 just go ahead and stand up
there it'd be easier,
4 'cause we're going quickly
here. If you put that
5 map up so you can see.
The red parcels on the map,
6 the red blobs, if you're far
in the back, are a lot
7 of small parcels that are
all pushed together.
8 This was actually platted
out some years ago. And
9 the blank areas in between
are not owned by the
10 State. Those are
owned -- it's actually 20 parcels
11 in between. Four of
those 20 are owned by other
12 individuals. The
other 20 are owned by the
13 landowner to the north
immediately adjacent to the
14 north. Just to give
you guys an idea what we're
15 dealing with here.
16
GOVERNOR BUSH: This is an example, again, of
17 a new attitude of
government that is repurchasing
18 properties that some area
element of government
19 allowed for the -- sold or
allowed for the
20 development. And
these plots are -- this is
21 platted at, you know, these
tiny little lots,
22 they're spread out all over
the State and now they
23 happen to be in the path of
protection. So we have
24 to come back after we sold
them or we gave the
25 development rights for
someone to sell them, we
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1 come back in now and either
dispose of them or try
2 to purchase them so that
they're preserved for, you
3 know.
4
CFO GALLAGHER: Right, but we're selling
5 these.
6
GOVERNOR BUSH: We're selling this one --
7
MS. ARMSTRONG: We're selling these.
8
GOVERNOR BUSH: -- but these are just --
9 there's thousands and
thousands of little lots all
10 over the place that in the
'50's and '60's
11 principally were platted in
a totally different
12 time that wouldn't happen
now.
13
CFO GALLAGHER: Eva, I have a couple of
14 questions.
15
MS. ARMSTRONG: Yes, sir.
16
CFO GALLAGHER: It's my understanding that
17 there's not a legal access
to this property at this
18 particular time?
19
MS. ARMSTRONG: Correct. We actually went and
20 got -- had a title company
do the research.
21
CFO GALLAGHER: Right.
22
MS. ARMSTRONG: The appraiser had done a lot
23 but the Cabinet aides
weren't sure that that was
24 good enough, so we got a
title company who actually
25 did the research.
There's no legal access to that
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1 site.
2
CFO GALLAGHER: Right. And what is the value
3 difference if we had
acquired legal access to that
4 property?
5
MS. ARMSTRONG: Well, I'd like Bud Vielhauer
6 to explain to you what it
would take for us to
7 acquire legal access,
because quite frankly, I
8 don't think we could.
I'd like you to hear it
9 though from him if you don't
mind.
10
Bud, would you explain it, please?
11
MR. VIELHAUER: Good morning. Bud Vielhauer,
12 Deputy General Counsel for
Public Lands and Deeds.
13
GOVERNOR BUSH: You need to be a little
14 louder.
15
MR. VIELHAUER: I'm sorry. I also have a cold
16 this morning.
17
I am Deputy General Counsel for Public Lands.
18
In this case we had it evaluated and
19 determined that currently
there is no legal access
20 to it. I think
Commissioner Gallagher your
21 question was how much
additional value would it add
22 to it. It may upwards
of double the value.
23 However, looking at trying
to go through the legal
24 process of trying to
determine whether we could get
25 access to it, we would have
to go through and
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1 establish that there is a
statutory way of
2 necessity, which would
require us either
3 approaching the owner that
has any access and
4 getting them to give us
access or sell us access,
5 or we would have to file
suit. And filing suit
6 legally would probably cost
us close to what the
7 value would be, the
additional value that we would
8 actually get. So from
an economic standpoint it
9 may not work.
10
But also from a legal standpoint, there are
11 some significant issues
with this, in that to get a
12 statutory way of necessity
we would have to
13 establish that we are using
or going to use the
14 property for residential
purposes or agricultural
15 purposes, and that's not
what we manage this
16 property for. So, it
would be very difficult for
17 us legally to be able to
acquire access to this
18 property.
19
CFO GALLAGHER: Well, that leads me to my next
20 question is, did we put
this out for bid or did we
21 just find somebody that
wanted it and sell it to
22 them?
23
MS. ARMSTRONG: No, sir. This is a situation
24 where the landowner
immediately to the north, which
25 is between us and 27, came
in and applied to buy
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1 the property. They are
the only landowner -- in
2 addition, when I stated that
the statistics that
3 there are 20 outparcels
within that red area and
4 they own all of them except
four. So they're the
5 only landowner, A, that has
the access between us
6 and 27, and the only
landowner that has the parcels
7 in the middle.
8
When we advertised to the 500 foot adjacent
9 property owners, so that's
the four in the middle
10 and the other three sides
to the parcel, in other
11 words, south, north and
east, nobody else
12 responded. And so in
that case, because nobody
13 else has access, they're
the only ones who are
14 interested in the
parcel. So we appraised the
15 property and propose to you
to sell it to them.
16
If we were to bid it out, I doubt anybody else
17 is going to want it because
nobody else has legal
18 access.
19
So we could, I mean, we could pursue getting
20 legal access, it's going to
cost us a lot of money.
21 If we try to negotiate,
he's the only one to
22 negotiate with. So,
at least we're getting
23 appraised value and we get
it back on the tax
24 roles.
25
CFO GALLAGHER: You're getting appraised
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1 value --
2
GOVERNOR BUSH: Without the access.
3
CFO GALLAGHER: -- without the access --
4
MS. ARMSTRONG: Access.
5
CFO GALLAGHER: -- from -- and you're selling
6 it to the guy who has the
access.
7
MS. ARMSTRONG: I know.
8
CFO GALLAGHER: So, he's sort of got us over
9 a barrel here.
10
MS. ARMSTRONG: But there's no way out of the
11 barrel except through a lot
of money and a lot of
12 time. I mean, this is
not a great picture, but
13 it's, you know, it's rural
Alachua County. It's
14 not in the path of direct,
immediate development.
15 I mean, it's just not a
great -- I mean, you look
16 at 22 acres and you think,
wow, it's a lot of land
17 but it's divided by
ownerships that he already has.
18 It just not a great -- you
know, Murphy Act parcels
19 are not high value
parcels.
20
CFO GALLAGHER: Now, Murphy Act comes to us
21 from the Federal
Government?
22
MS. ARMSTRONG: No, sir.
23
CFO GALLAGHER: No.
24
MS. ARMSTRONG: It's from the tax -- the
25 1930's when the State was
going through depression
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1 and people didn't pay their
taxes and it reverted
2 to the State.
3
CFO GALLAGHER: And do you know --
4
MS. ARMSTRONG: So it's just been sitting in
5 our inventory.
6
CFO GALLAGHER: Do you know the history of how
7 long we've had it, since the
'30's?
8
MS. ARMSTRONG: Since the '30's, yes, sir.
9
CFO GALLAGHER: And was the same family
10 involved in this particular
-- who owned it, do you
11 know who owned it back
then?
12
MS. ARMSTRONG: I don't know. We'd have to do
13 that research for
you. I do not know that.
14
CFO GALLAGHER: I mean, I'm just wondering if
15 we've been holding it, you
know, tax-free for them
16 for --
17
MS. ARMSTRONG: I don't know.
18
CFO GALLAGHER: -- 70 years or it ain't so,
19 and now we're going to sell
it back to them for a
20 heck of a lot more than
they paid --
21
MS. ARMSTRONG: Right.
22
CFO GALLAGHER: -- in taxes if they'd have
23 kept it.
24
MS. ARMSTRONG: Well, I'm looking for Scott.
25 Where are you? Do we
know that?
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1
No, we don't know that.
2
CFO GALLAGHER: I mean, we're selling 22 acres
3 for $41,500.00.
4
MS. ARMSTRONG: Yes, sir. But, I mean, it
5 is -- there is no other way
around it. I mean, we
6 have looked, because I was
more than willing to
7 pull it if it turned out
there was access or there
8 was some other way to get
that value up and I don't
9 see another way to do.
It is an unusual situation
10 with the access.
11
CFO GALLAGHER: Just to put it in comparison,
12 we just bought .98 acres,
less than one, for
13 $268,000.00.
14
MS. ARMSTRONG: And that's down in
15 corkscrew --
16
CFO GALLAGHER: So, we're the high payers
17 when we buy and we're the
low payers when we --
18
MS. ARMSTRONG: But it's really not a fair
19 comparison --
20
CFO GALLAGHER: I know.
21
MS. ARMSTRONG: -- because that is down --
22
CFO GALLAGHER: One's a swamp.
23
MS. ARMSTRONG: -- near I-75 and that land has
24 increased in value 50
percent since we had that one
25 appraised.
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1
GOVERNOR BUSH: You go, Eva.
2
MS. ARMSTRONG: A corkscrew. Well, I'm just
3 bing honest. I mean,
you know. I think we ought
4 to look at them in a
situation, you know.
5
GOVERNOR BUSH: I'm on my best behavior, I'm
6 not --
7
MR. GALLAGHER: I guess I'm the bad guy on
8 this one.
9
MS. ARMSTRONG: I know.
10
GOVERNOR BUSH: Yeah.
11
MS. ARMSTRONG: Well, if there were a way
12 to -- if I could tell you a
way that we could get
13 the value up on this, I'd
tell we could get it up;
14 and I just don't see any
way to do it, you know.
15
GOVERNOR BUSH: The fact that you're thinking
16 about it is a good
encouraging step.
17
MS. ARMSTRONG: I know -- yeah.
18
GOVERNOR BUSH: I like that.
19
MS. ARMSTRONG: Because -- and the others
20 were -- we've hired, you
know, the private real
21 estate marketing companies
that we've hired on
22 contract with State lands,
we've got them taking
23 each of the counties and
the Murphy Act deeds and
24 looking at how do we get
the values up as we sell
25 these properties. But
they're not attractive or we
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1 would have sold them
already, you know.
2
GOVERNOR BUSH: Is there a motion on this
3 item, on this wonderful
--
4
CFO GALLAGHER: Not yet.
5
MS. ARMSTRONG: Piece of property.
6
GOVERNOR BUSH: Maybe there's not a motion.
7
MS. ARMSTRONG: Yeah.
8
GENERAL CRIST: Motion.
9
GOVERNOR BUSH: There's a motion. Is there a
10 second?
11
COMMISSIONER BRONSON: I'll second it.
12
GOVERNOR BUSH: Any other discussion?
13
All in favor say aye.
14
GENERAL CRIST: Aye.
15
CFO GALLAGHER: Aye.
16
COMMISSIONER BRONSON: Aye.
17
GOVERNOR BUSH: All opposed?
18
MS. ARMSTRONG: I have one more quick --
19
GOVERNOR BUSH: Hang on a second. We're going
20 to have -- we need to get
the -- I never had this
21 happen to me before.
22
MS. ARMSTRONG: Oh.
23
GOVERNOR BUSH: That's interesting. Thank
24 you. Yes.
25
MS. ARMSTRONG: One more quick thing. We
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1 brought posters for
everybody, you can pick them up
2 outside.
3
CFO GALLAGHER: You didn't announce the
4 outcome of the vote.
5
MS. ARMSTRONG: It has all the State Parks and
6 State Forests as you go out
the door.
7
GOVERNOR BUSH: Eva, the motion passes.
8
MS. ARMSTRONG: Oh, I'm sorry.
9
CFO GALLAGHER: He didn't get a chance to
10 announce the outcome of the
motion.
11
MS. ARMSTRONG: Oh, I thought he did when he
12 said yes. I'm
sorry. I just jump all over you
13 sometimes, don't I?
I'm so sorry.
14
One more time, we have this wonderful poster,
15 everybody can pick it up on
your way outside.
16 They're rolled up, just
pick it up and walk out
17 with it, okay. It
shows you all the State Parks.
18 I'm done.
19
GOVERNOR BUSH: What about Item --
20
MS. ARMSTRONG: Oh, 4 we have a deferral
21 request for Item 4.
22
COMMISSIONER BRONSON: Motion to defer.
23
CFO GALLAGHER: Second.
24
GOVERNOR BUSH: There's a motion to defer and
25 a second. Without
objection.
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1
GENERAL CRIST: Question?
2
GOVERNOR BUSH: Yes.
3
GENERAL CRIST: Question. It's my
4 understanding on 4 that
there hasn't been an
5 appraisal since '99, could
part of the motion, a
6 friendly amendment to the
motion be to get an
7 updated appraisal.
8
MS. ARMSTRONG: I think that's one of the
9 issues that the applicant
wants to defer 4. Would
10 you like to hear from
him?
11
GENERAL CRIST: Say again?
12
MS. ARMSTRONG: That's one of the reasons that
13 the applicant has requested
a deferral, so would
14 you like to hear from
him?
15
GENERAL CRIST: No, I'd just like an
16 appraisal, that would be
great, unless he wants to
17 speak about it.
18
MS. ARMSTRONG: I think he'd probably like to
19 speak about it then.
20
GOVERNOR BUSH: Why don't you wait till -- you
21 want to speak about it?
22
MS. ARMSTRONG: We're just deferring it two
23 weeks, so.
24
GOVERNOR BUSH: So, why don't you come, come
25 and --
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1
MS. ARMSTRONG: Speak about it then?
2
GOVERNOR BUSH: -- speak about it when, when
3 it's an item on the agenda,
how about that?
4
GENERAL CRIST: But in the interim can we get
5 an appraisal?
6
MS. ARMSTRONG: It would take us longer than
7 two weeks to get it
appraised.
8
GENERAL CRIST: I'm sorry?
9
MS. ARMSTRONG: It would take us longer than
10 two weeks to get that
appraisal done.
11
GOVERNOR BUSH: It would?
12
MS. ARMSTRONG: Oh, yeah. I've tried my best
13 to get appraisals done
quicker.
14
GENERAL CRIST: So, how long does it take?
15
MS. ARMSTRONG: Forty-five days at least.
16
GENERAL CRIST: Forty-five days?
17
MS. ARMSTRONG: I have -- that's one
18 profession I haven't been
able to impress much yet
19 with my desire to speed
things up.
20
GOVERNOR BUSH: I thought that this was at the
21 request of the applicant
that we're doing this --
22
MS. ARMSTRONG: To defer it?
23
GOVERNOR BUSH: -- deferral?
24
MS. ARMSTRONG: Defer it two weeks, yes, sir.
25
GENERAL CRIST: Why would we just defer not
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1 long enough to do what we'd
like to have done?
2
MR. PLANTE: Governor, Members of the Cabinet,
3 my name is Ken Plante, and I
represent Alexander
4 USA.
5
The request to defer was to answer a couple
6 of questions I didn't have
answers to. However, if
7 there's going to be a motion
to defer and get an
8 additional appraisal, I'd
like to address that,
9 because that's something we
don't want to do or
10 limit the appraisal to the
one little section
11 that's being
requested.
12
In 1999 -- I mean, I guess I'll withdraw the
13 request for deferral if you
want to hear it, and
14 then I can -- if you want
to request it.
15
In 1999 we brought this item before the
16 Governor and Cabinet and it
was approved. It was
17 for a spit of land --
18
GOVERNOR BUSH: This is going to take a long
19 time. This is the
complicated --
20
MR. PLANTE: Yes, sir.
21
CFO GALLAGHER: It's submerged land.
22
GOVERNOR BUSH: Well, it's more complicated
23 than that.
24
MS. ARMSTRONG: If I could, let me just
25 suggest we defer it two
weeks and hear the issue
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1 then. And we can't get
an appraisal within two
2 weeks. It'll take 45
days to re-appraise it.
3
CFO GALLAGHER: The last time it was appraised
4 was $800,000.00 and the
purchase is 212, right?
5
MS. ARMSTRONG: Yeah. It's 265 now. But,
6 again, we're getting into
complicated matters and
7 it'll take awhile --
8
CFO GALLAGHER: 266.
9
MS. ARMSTRONG: -- and we're on a tight time
10 frame here this
morning. So, if you wouldn't mind,
11 Mr. Attorney General, would
that be okay?
12
GOVERNOR BUSH: Well, let's make sure that you
13 work with the Attorney
General's staff about the
14 concerns about it and all
of our staff about the
15 concerns --
16
MS. ARMSTRONG: Right.
17
GOVERNOR BUSH: -- about the appraisal. And
18 if it requires one, and
you're comfortable with
19 that, Ken, we could defer
it until we got one.
20
MR. PLANTE: Yes, sir. I will work with the
21 staff.
22
GOVERNOR BUSH: All right. Great.
23
CFO GALLAGHER: There is a lot of other legal
24 issues, too.
25
GOVERNOR BUSH: There's a motion to defer.
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1
Yeah, this a --
2
CFO GALLAGHER: It's got a lot to it.
3
GOVERNOR BUSH: If we had more time you-all
4 might actually appreciate
--
5
CFO GALLAGHER: You sit through one of these
6 things.
7
GOVERNOR BUSH: -- the role, again, that we --
8
CFO GALLAGHER: We're eliminating the fun for
9 you when we get into this
kind of stuff.
10
GOVERNOR BUSH: There's a deferral and there's
11 a motion to defer and a
second. Without objection
12 the motion is deferred for
two weeks.
13
And we appreciate you-all hosting us and thank
14 you very much for coming to
our cabinet meeting.
15
MR. GALLAGHER: Come on out to the agency
16 fair, right out
front.
17
( Whereupon, the meeting was concluded at
18 11:27 A.M.)
19
20
21
22
23
24
25
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1
CERTIFICATE
2 STATE OF FLORIDA
)
)
3 COUNTY OF LAKE )
4
I, Evelyn M. Andrews-Sarvis, Court Reporter,
State of Florida at Large, and a Registered Professional
5 Reporter, do hereby certify that I was authorized to and
did report in stenotypy the above and foregoing
6 proceedings, and that thereafter my stenotype notes were
transcribed and reduced to typewriting under my
7 supervision; and that the pages numbered 4 through 97,
inclusive, contain a full, true and correct computer-aided
8 transcription of my stenotype notes taken therein.
9
10
I further certify that I am not a relative or
employee or attorney or counsel of any of the parties, nor
11 am I a relative or employee of any attorney or counsel
connected with the action, nor am I financially interested
12 in the action.
13
14
Done and signed this 12th day of April
2004,
in the City of Tavares, County of Lake, State of
Florida.
15
16
_________________________________________
Evelyn M. Andrews-Sarvis, R.P.R., R.M.R.,
17
Certified Court Reporter
18
19
20
21
22
23
24
25
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