Click here to MyFlorida Home Page  
Clear Dot Image Cabinet Affairs

image

 



1

1

2

3 T H E C A B I N E T

4 S T A T E O F F L O R I D A

5

Representing:

6

STATE BOARD OF ADMINISTRATION

7 DIVISION OF BOND FINANCE

ADMINISTRATION COMMISSION

8 FLORIDA LAND AND WATER ADJUDICATORY COMMISSION

DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES

9 DEPARTMENT OF REVENUE

STATE BOARD OF EDUCATION

10 BOARD OF TRUSTEES, INTERNAL IMPROVEMENT TRUST FUND

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

11

12 The above agencies came to be heard before

THE FLORIDA CABINET, Honorable Governor Chiles

13 presiding, in the Cabinet Meeting Room, LL-03,

The Capitol, Tallahassee, Florida, on Tuesday,

14 April 28, 1998, commencing at approximately 9:44 a.m.

15

16

17 Reported by:

18 LAURIE L. GILBERT

Registered Professional Reporter

19 Certified Court Reporter

Certified Realtime Reporter

20 Notary Public in and for

the State of Florida at Large

21

22

23

24 ACCURATE STENOTYPE REPORTERS, INC.

100 SALEM COURT

25 TALLAHASSEE, FLORIDA 32301

850/878-2221

2

1 APPEARANCES:

2 Representing the Florida Cabinet:

3 LAWTON CHILES

Governor

4

BOB CRAWFORD

5 Commissioner of Agriculture

6 BOB MILLIGAN

Comptroller

7

SANDRA B. MORTHAM

8 Secretary of State

9 BOB BUTTERWORTH

Attorney General

10

BILL NELSON

11 Treasurer

12 FRANK T. BROGAN

Commissioner of Education

13

*

14

15

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

April 28, 1998

3

1 I N D E X

2 ITEM ACTION PAGE

3 STATE BOARD OF ADMINISTRATION:

(Presented by Tom Herndon,

4 Executive Director)

5 1 Approved 6

2 Approved 7

6 3 Approved 7

4 Approved 7

7 5 Approved 8

8 DIVISION OF BOND FINANCE:

(Presented by J. Ben Watkins, III,

9 Director)

10 1 Approved 11

2 Approved 13

11 3 Approved 14

12 ADMINISTRATION COMMISSION:

(Presented by Gale Sittig,

13 Deputy Secretary)

14 1 Approved 21

2 Approved 21

15 3 Approved 21

4 Approved 22

16 5 Approved 22

6 Deferred 22

17

FLORIDA LAND AND WATER

18 ADJUDICATORY COMMISSION:

(Presented by Gale Sittig,

19 Deputy Secretary)

20 1 Approved 23

2 Approved 23

21 3 Approved 23

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

April 28, 1998

4

1 I N D E X

(Continued)

2

ITEM ACTION PAGE

3

DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES:

4 (Presented by Fred O. Dickinson, III,

Executive Director)

5

1 Approved 25

6 2 Approved 25

3 Approved 26

7 4 Approved 26

8 DEPARTMENT OF REVENUE:

(Presented by James A. Zingale, Ph.D.,

9 Assistant Executive Director)

10 1 Approved 28

2 Approved 28

11 3 Approved 29

4 Approved 30

12

STATE BOARD OF EDUCATION:

13 (Presented by Robert L. Bedford, Ph.D.,

Deputy Commissioner)

14

1 Approved 38

15 2 Approved 39

3 Approved 39

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

April 28, 1998

5

1 I N D E X

(Continued)

2

ITEM ACTION PAGE

3

BOARD OF TRUSTEES OF THE

4 INTERNAL IMPROVEMENT

TRUST FUND:

5 (Presented by Virginia B. Wetherell,

Secretary)

6

1 Approved 40

7 2 Approved 40

3 Approved 40

8 4 Approved 41

Substitute 5 Deferred 41

9 6 Approved 41

7 Approved 42

10 8 Approved 42

9 Approved 42

11 10 Approved 44

Substitute 11 Deferred 44

12 12 Approved 80

13 DEPARTMENT OF ENVIRONMENTAL PROTECTION

SITING BOARD:

14 (Presented by Virginia B. Wetherell,

Secretary)

15

1 Approved 82

16 Substitute 2 Approved 106

17 CERTIFICATE OF REPORTER 107

18 *

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF ADMINISTRATION

April 28, 1998

6

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

2 (The agenda items commenced at 10:14 a.m.)

3 GOVERNOR CHILES: State Board of

4 Administration.

5 MR. HERNDON: Item number 1 is the approval

6 of the minutes of the meeting held on

7 April 14th, 1998.

8 TREASURER NELSON: I move the minutes.

9 COMPTROLLER MILLIGAN: And second.

10 MR. HERNDON: Item number 2 --

11 GOVERNOR CHILES: Moved and seconded.

12 Without objection, minutes are adopted as

13 read.

14 MR. HERNDON: Item number 2 is a two-part

15 item regarding approving the -- the first item

16 is approving the fiscal sufficiency of a

17 220 million dollar Department of Transportation

18 Turnpike Revenue Bond.

19 And the second component of that is to

20 rescind the ninety-six million three hundred and

21 eighty-five thousand dollar fiscal sufficiency

22 approval remaining from the prior resolution

23 adopted in November of last year.

24 TREASURER NELSON: I move Item 2.

25 COMPTROLLER MILLIGAN: Second.

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF ADMINISTRATION

April 28, 1998

7

1 GOVERNOR CHILES: Moved and seconded.

2 Without objection, Item 2 is adopted.

3 MR. HERNDON: Item number 3 is approving

4 the fiscal sufficiency of 125 million dollar

5 State of Florida Department of Education Lottery

6 Revenue Bond.

7 COMPTROLLER MILLIGAN: Move it.

8 TREASURER NELSON: Second.

9 GOVERNOR CHILES: Moved and seconded.

10 Without objection, it's approved.

11 MR. HERNDON: Item number 4 is two parts.

12 Part (A) is recommending the approval of the

13 filing of the following rules for adoption for

14 the 1998-1999 contract year to adopt a new

15 reimbursement contract, and new definitions for

16 the 1998-99 year, as well as the new premium

17 formula for 1998.

18 Item (B) of that same item is to repeal

19 Rule 19-8.008 as unnecessary, which is

20 duplicative of the statutes.

21 COMPTROLLER MILLIGAN: And I move it.

22 TREASURER NELSON: And I second.

23 GOVERNOR CHILES: Moved and seconded.

24 Without objection, that's approved.

25 MR. HERNDON: Item number 5 is to submit

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF ADMINISTRATION

April 28, 1998

8

1 for your information and review, the Investment

2 Performance Report and Fund Balance Analysis for

3 the month of March 1998.

4 TREASURER NELSON: Move it.

5 COMPTROLLER MILLIGAN: Second.

6 GOVERNOR CHILES: Moved and seconded.

7 Without objection, that's approved.

8 MR. HERNDON: That completes the agenda,

9 Governor. Thank you.

10 GOVERNOR CHILES: All right. Some time

11 ago, the Governor and the Cabinet, upon their

12 move, asked the Board to divest the tobacco --

13 MR. HERNDON: Yes, sir.

14 GOVERNOR CHILES: -- stock.

15 MR. HERNDON: Yes, sir.

16 GOVERNOR CHILES: Can you give us a

17 little -- a report of what has happened to

18 divest -- tobacco stocks since we divested.

19 MR. HERNDON: I don't have the specific

20 details in front of me. But we were completely

21 divested of all tobacco stocks approximately the

22 end of last year, of 1997, and we had divested

23 of about 85 percent of our holdings within about

24 two weeks.

25 And it took us several months to finally

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF ADMINISTRATION

April 28, 1998

9

1 work out the arrangements with some of our large

2 index fund holders to set up separate accounts

3 and so forth. We had to create new benchmarks

4 and what have you.

5 But we were completely divested of all

6 those funds by the end of last year.

7 As a general comment, tobacco stocks are

8 probably trading down from the date of your

9 divestiture order in the range of 15 to

10 20 percent. So you sold essentially at the high

11 for 1997.

12 And as you'll recall, we had a fairly

13 substantial position in tobacco stocks, and the

14 net income to the Board was quite handsome. As

15 I recall, the figures we earned in excess of

16 800 million dollars over our original cost

17 basis. So it was a well-timed decision.

18 GOVERNOR CHILES: I -- that's what I -- my

19 understanding was, that we had about a

20 20 percent drop in the tobacco stocks since that

21 time.

22 Roughly what would -- that would amount to

23 a hundred and twenty-five, a hundred and thirty

24 million dollars --

25 MR. HERNDON: In that -- in that

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF ADMINISTRATION

April 28, 1998

10

1 neighborhood, yes. And I can give you the

2 specific statistics from the date of your order

3 to the date we sold them and the -- what the --

4 GOVERNOR CHILES: I think it'd be

5 interesting for us to see. But I think it's

6 worth noting that from the time we divested --

7 or turned out to be a timely move --

8 MR. HERNDON: That's right.

9 GOVERNOR CHILES: -- and that we would be

10 about a hundred and twenty-five, hundred and

11 twenty-six, somewhere -- a hundred and twenty

12 million dollars --

13 MR. HERNDON: It was an extremely

14 well-timed --

15 GOVERNOR CHILES: -- less --

16 MR. HERNDON: -- decision.

17 GOVERNOR CHILES: -- than we have now.

18 MR. HERNDON: Yes, it was.

19 GOVERNOR CHILES: Thank you, sir.

20 MR. HERNDON: Certainly.

21 (The State Board of Administration Agenda

22 was concluded.)

23 *

24

25

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

11

1 GOVERNOR CHILES: Division of

2 Bond Finance.

3 MR. WATKINS: Item number 1 is approval of

4 the minutes of the April 14th meeting.

5 COMMISSIONER BROGAN: So move.

6 ATTORNEY GENERAL BUTTERWORTH: Second.

7 GOVERNOR CHILES: Moved and seconded.

8 Without objection, it's approved as read.

9 MR. WATKINS: Item number 2 is adoption of

10 resolutions doing two things. One is technical

11 amendments to the original authorizing

12 resolution for the Lottery Revenue Bond Programs


13 for education.

14 And more importantly, the second item

15 authorizes a competitive sale of the first

16 installment of Lottery Revenue Bonds of up to a

17 hundred and twenty-five million dollars.

18 COMMISSIONER BROGAN: Governor, I move

19 approval of Item 2, parts (1) and (2), with a

20 comment, if you will indulge me.

21 Just to let you know that this -- I believe

22 Ben'll bear me out -- keeps us on -- on track as

23 far as what we need to do at the State level to

24 see the dollars that were appropriated by the

25 Legislature through this process ultimately

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

12

1 begin to pass through to the school districts

2 this summer.

3 So if we stay on -- on track with the

4 process -- and Ben and his folks have done a

5 great job with that -- then hopefully school

6 districts, whether they are accepting the cash,

7 as they have the ability to do, or whether they

8 accept the bonded revenue that will come as a

9 result of our activities this morning, will have

10 the chance to begin to see those dollars flow

11 this summer, that amount to, I guess, Ben,

12 somewhere in the neighborhood total of about

13 two-and-a-half billion dollars if you take

14 the -- the Lottery money, aside from the general

15 revenue that was also put into it. But

16 that's --

17 MR. WATKINS: That --

18 COMMISSIONER BROGAN: -- two-and-a-half

19 billion in lottery potential.

20 MR. WATKINS: That's correct. It's

21 expected that the whole program, once fully

22 implemented, will raise approximately

23 two-and-a-half billion dollars. And that --

24 that money would be borrowed over the next

25 four years, and distributed to the school

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

13

1 districts on an as-needed basis to fund

2 construction expenditures.

3 So we'll be coming back on approximately a

4 quarterly basis with authorization to sell

5 additional installments of the bonds related to

6 the two-and-a-half billion dollar program.

7 We've made the rating agency and bond

8 insurance presentation, and have received

9 favorable indications of bond ratings for the

10 program.

11 So we're in -- we expect to sell bonds for

12 the first time probably the end of May, and have

13 monies available in June.

14 COMMISSIONER BROGAN: And I do move the

15 item, Governor.

16 SECRETARY MORTHAM: Second.

17 GOVERNOR CHILES: Moved and seconded.

18 Without objection, it's approved.

19 MR. WATKINS: Item number 3 is adoption of

20 a resolution authorizing the competitive sale of

21 up to 220 million dollars of Turnpike Revenue

22 Bonds for construc-- financing a portion of the

23 cost of Suncoast Parkway, which runs from

24 Veterans Expressway in north

25 Hillsborough County, through Pasco County, and

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

14

1 terminates at Highway 98 in Hernando County.

2 ATTORNEY GENERAL BUTTERWORTH: Motion.

3 COMMISSIONER BROGAN: Second.

4 GOVERNOR CHILES: Moved and seconded.

5 Without objection, it's approved.

6 MR. WATKINS: One other item that I would

7 like to bring to your attention is, I sent a

8 letter to you on Friday regarding the

9 Orange-Orlando County Expressway Authority and

10 some developments there with respect to the

11 resignation of their Financial Advisor, and

12 subsequently going to work for an underwriting

13 firm that had been selected as the number one

14 ranked firm in connection with that financing.

15 We are receiving written representations

16 from the Authority that that -- that that

17 development didn't in any way influence the

18 selection of the senior managing underwriter in

19 connection with that selection process that we

20 set up. And I will forward that written

21 representation to you as soon as I receive it.

22 GOVERNOR CHILES: Yes, sir.

23 ATTORNEY GENERAL BUTTERWORTH: Ben,

24 thank you very much for bringing this to our

25 attention, and staying on this.

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

15

1 So you say in your letter, you're very

2 concerned about the appearance of impropriety of

3 this development. And there's no -- so are we.

4 What status are the bonds now? How much

5 time do we have to actually determine when this

6 financial advisor was first approached by

7 Paine Webber, when the person did accept the

8 job, and whether or not all that is documented

9 or not.

10 But how much time do you have in order to

11 be assured, and have a comfort level -- you can

12 give us the comfort level that we should go

13 forward with these bonds?

14 MR. WATKINS: They're in the process of

15 actually pricing the bonds probably today or

16 tomorrow. So this is a -- it's of critical

17 importance that we address the issue on a timely

18 basis.

19 I've gotten the representation from them

20 with respect to the selection of the

21 underwriter. I am completely comfortable that

22 there was no influence exerted by Public

23 Financial Management in connection with the

24 selection process utilized to select the

25 underwriting firm.

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

16

1 And the representation that they have --

2 they had considered all of the decisions that

3 they've made in light of this development, the

4 resignation of the financial advisor, and are

5 comfortable that those were the appropriate

6 decisions.

7 So I am in the process of getting that

8 written representation from the Authority.

9 ATTORNEY GENERAL BUTTERWORTH: Who -- who

10 contacted you, Ben, referencing Mr. Brown

11 leaving as the financial advisor of the

12 Authority?

13 MR. WATKINS: It came up in the course of

14 our conversations with the Authority, and with

15 Public Financial Management, regarding bringing

16 these bonds to market.

17 ATTORNEY GENERAL BUTTERWORTH: And when was

18 that?

19 MR. WATKINS: Last week. Last Thursday.

20 ATTORNEY GENERAL BUTTERWORTH: When did he

21 leave?

22 MR. WATKINS: He -- he notified the

23 Authority on April 21st, which I guess was last

24 Tuesday, that he was, in fact, leaving PFM and

25 going to work with Paine Webber.

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

17

1 And at that point in time, the Authority

2 disengaged him from performing any additional

3 services in connection with this financing.

4 ATTORNEY GENERAL BUTTERWORTH: Isn't that


5 flat out stupid for a financial advisor for the

6 Authority to literally leave and go with the

7 senior managing underwriter literally hours

8 before this actually goes out?

9 MR. WATKINS: I'm glad we knew about it

10 before the transaction was priced rather than

11 after the transaction is priced. I believe that

12 we can adequately deal with the situation in

13 connection with pricing the bonds now that we

14 know about this development ahead of time.

15 ATTORNEY GENERAL BUTTERWORTH: But do we

16 know when he was actually approached by

17 Paine Webber, or when he approached Paine Webber

18 in order to either obtain a job with them, or

19 was recruited. And obviously he was not

20 recruited on the 21st, and took the job on the

21 21st.

22 MR. WATKINS: Right.

23 No, sir, but I'll get the answer --

24 ATTORNEY GENERAL BUTTERWORTH: Okay.

25 MR. WATKINS: -- to those questions for

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

18

1 you. And I will not sign a bond purchase

2 agreement, which is a legal obligation -- our

3 legal obligation to sell the bonds, and their

4 legal obligation to purchase them, until all

5 questions have been adequately addressed and

6 answered.

7 ATTORNEY GENERAL BUTTERWORTH: Okay. You

8 may wish letters not only from the Authority,

9 you may also wish letters from Paine Webber, as

10 well as Phil Brown, and the Public Financial

11 Management.

12 MR. WATKINS: Yes, sir.

13 ATTORNEY GENERAL BUTTERWORTH: So you'll

14 have everything -- so you'll have the comfort

15 level. And if you could adv--

16 Governor, if Ben can advise us maybe later

17 this afternoon, because I think the worst thing

18 we want is to -- is to find out on Friday that

19 there was a problem.

20 GOVERNOR CHILES: I think that's correct.

21 It just seems to me that there'd be one way that

22 we'd really be sure of this: Public competitive

23 sale.

24 It kind of -- we just approved a

25 Turnpike Authority for competitive sale. And

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

19

1 finally, I believe, the Expressway Authority has

2 had some public sales; have they not?

3 MR. WATKINS: No, sir, not this

4 Expressway Authority. Tampa-Hillsborough

5 Expressway Authority was sold on a competitive

6 basis --

7 GOVERNOR CHILES: All right.

8 MR. WATKINS: -- but not this

9 Expressway Authority.

10 GOVERNOR CHILES: Well, you know --

11 MR. WATKINS: But your point is well

12 taken. You avoid this whole situation --

13 GOVERNOR CHILES: You don't have --

14 MR. WATKINS: -- of competitive sale.

15 GOVERNOR CHILES: -- any problem, and

16 Mr. Brown wouldn't have this problem, and

17 nobody'd have this problem if you had a public

18 sale.

19 And I can't understand why the

20 Florida Turnpike Authority, Hillsborough

21 Turnpike Authority, the State of Florida, even

22 the Housing Authority now has competitive public

23 sales. And we don't have a public sale there.

24 MR. WATKINS: I understand.

25 In connection with this transaction, there

ACCURATE STENOTYPE REPORTERS, INC.

DIVISION OF BOND FINANCE

April 28, 1998

20

1 were legitimate reasons for the Orange-Orlando

2 County Expressway Authority to engage an

3 underwriter on a negotiated basis.

4 But that aside, your point is well taken,

5 which is, competitive sale precludes all --

6 these types of issues from arising in connection

7 with the financing.

8 GOVERNOR CHILES: Well, I accept your --

9 your admonition that this one had reasons for a

10 competitive -- for not having a public sale. I

11 can't believe that every sale that they have has

12 those kind of reasons.

13 MR. WATKINS: Yes, sir.

14 GOVERNOR CHILES: Yes, sir.

15 Thank you.

16 (The Division of Bond Finance Agenda was

17 concluded.)

18 *

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

ADMINISTRATION COMMISSION

April 28, 1998

21

1 GOVERNOR CHILES:

2 Administration Commission.

3 MS. SITTIG: Item 1, recommend approval of

4 the minutes for the meeting held April 14th,

5 19--

6 COMMISSIONER BROGAN: Move the minutes.

7 MS. SITTIG: --98.

8 SECRETARY MORTHAM: Second.

9 GOVERNOR CHILES: Moved and seconded.

10 Without objection, minutes are approved.

11 MS. SITTIG: Item 2, recommend approval of

12 the transfer of general revenue appropriations

13 for the Department of Agriculture and Consumer

14 Services.

15 COMMISSIONER BROGAN: Move approval.

16 SECRETARY MORTHAM: Second.

17 GOVERNOR CHILES: Moved and seconded.

18 Without objection, it's approved.

19 MS. SITTIG: Item 3, recommend approval of

20 the transfer of general revenue appropriations

21 for Department of Children and Families.

22 SECRETARY MORTHAM: Move approval.

23 COMMISSIONER CRAWFORD: Second.

24 GOVERNOR CHILES: Moved and seconded.

25 Without objection, it's approved.

ACCURATE STENOTYPE REPORTERS, INC.

ADMINISTRATION COMMISSION

April 28, 1998

22

1 MS. SITTIG: Item 4, recommend approval of

2 the transfer of general revenue appropriations

3 for the Department of Corrections.

4 SECRETARY MORTHAM: Move approval.

5 COMMISSIONER CRAWFORD: Second.

6 GOVERNOR CHILES: Moved and seconded.

7 Without objection, that's approved.

8 MS. SITTIG: Item 5, request authorization

9 to publish notices of rule repeal and rule

10 amendment in the Florida Administrative Weekly.

11 SECRETARY MORTHAM: Move approval.

12 COMMISSIONER CRAWFORD: Second.

13 GOVERNOR CHILES: Moved and seconded.

14 Without objection, that's approved.

15 MS. SITTIG: And Item 6, request deferral

16 of this item to the May 12th, 1998, meeting.

17 COMMISSIONER BROGAN: Move deferral.

18 SECRETARY MORTHAM: Second.

19 GOVERNOR CHILES: Moved and --

20 SECRETARY MORTHAM: Second.

21 GOVERNOR CHILES: -- seconded.

22 Without objection, it's deferred.

23 (The Administration Commission Agenda was

24 concluded.)

25 *

ACCURATE STENOTYPE REPORTERS, INC.

FLORIDA LAND AND WATER ADJUDICATORY COMMISSION

April 28, 1998

23

1 MS. SITTIG: Okay. FLAWAC.

2 Item 1, request approval of the minutes of

3 March 24th, 1998, Commission meeting.

4 COMMISSIONER BROGAN: Move the minutes.

5 GOVERNOR CHILES: Moved and seconded.

6 Without objection, minutes are approved.

7 (Commissioner Crawford exited the room.)

8 MS. SITTIG: Item 2, request authorization

9 to publish the notice of rule repeal and rule

10 amendment in the Florida Administrative Weekly.

11 COMMISSIONER BROGAN: Move the item.

12 SECRETARY MORTHAM: Move approval.

13 GOVERNOR CHILES: Moved and seconded.

14 Without objection, it's approved.

15 MS. SITTIG: And lastly, Item 3, request

16 approval of the proposed final rule amending the

17 boundaries of the Indigo Community Development

18 District.

19 SECRETARY MORTHAM: Move approval.

20 COMMISSIONER BROGAN: Second.

21 GOVERNOR CHILES: Moved and seconded.

22 Without objection, that's approved.

23 MS. SITTIG: Thank you.

24 GOVERNOR CHILES: Thank you.

25

ACCURATE STENOTYPE REPORTERS, INC.

FLORIDA LAND AND WATER ADJUDICATORY COMMISSION

April 28, 1998

24

1 (The Florida Land and Water Adjudicatory

2 Commission Agenda was concluded.)

3 *

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES

April 28, 1998

25

1 GOVERNOR CHILES: Highway Safety.

2 MR. DICKINSON: First item is approval of

3 the minutes from the February 24th and

4 March 10th Cabinet meetings.

5 COMMISSIONER BROGAN: Move the minutes.

6 ATTORNEY GENERAL BUTTERWORTH: Second.

7 GOVERNOR CHILES: Moved and seconded.

8 Without objection, they're approved.

9 MR. DICKINSON: The second item is

10 recommend approval of the purchase of software

11 to enhance our customer service in our driver


12 license offices.

13 COMMISSIONER BROGAN: Move approval.

14 ATTORNEY GENERAL BUTTERWORTH: Second.

15 GOVERNOR CHILES: Moved and second--

16 Moved and --

17 ATTORNEY GENERAL BUTTERWORTH: Second.

18 GOVERNOR CHILES: -- seconded.

19 Without objection, it's approved.

20 MR. DICKINSON: Item 3 is request authority

21 to contract with Hayes Computer Systems for a

22 senior database programmer for our Oracle

23 database conversion.

24 COMPTROLLER MILLIGAN: I move approval.

25 ATTORNEY GENERAL BUTTERWORTH: Second.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES

April 28, 1998

26

1 GOVERNOR CHILES: Moved and seconded.

2 Without objection, it's approved.

3 MR. DICKINSON: Item 4 is a -- request

4 approval to spend a --

5 (Commissioner Crawford entered the room.)

6 MR. DICKINSON: -- $140,000 grant from

7 General Motors to promote safety belt use here

8 in Florida.

9 COMMISSIONER BROGAN: Move approval.

10 ATTORNEY GENERAL BUTTERWORTH: Second.

11 GOVERNOR CHILES: Moved and seconded.

12 Without objection, that's approved.

13 MR. DICKINSON: Governor, if I may, on a

14 personal note, I'd like to thank you and the

15 Cabinet for participating in the celebration of

16 my father's life a couple weeks back. A

17 heartfelt thanks from the family.

18 It's a tough time, but with y'all's

19 support, we made it through it. And thanks so

20 much.

21 He was a real believer of the Florida

22 Cabinet system, and --

23 GOVERNOR CHILES: A good member of the

24 Cabinet. Thank you.

25 MR. DICKINSON: He loved it.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES

April 28, 1998

27

1 Thank you so much.

2 GOVERNOR CHILES: Yes, sir.

3 (The Department of Highway Safety and Motor

4 Vehicles Agenda was concluded.)

5 *

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF REVENUE

April 28, 1998

28

1 GOVERNOR CHILES: Department of Revenue.

2 DR. ZINGALE: Our first item, request

3 approval of the minutes of February 24th, 1998.

4 COMMISSIONER BROGAN: So move.

5 ATTORNEY GENERAL BUTTERWORTH: Second.

6 GOVERNOR CHILES: Moved and seconded.

7 Without objection, minutes are approved.

8 DR. ZINGALE: Item 2, request approval of

9 the authority to file with the Secretary of

10 State under Chapter 120, Florida Statutes,

11 proposed amendment to Rule Chapter 12A-1.0092,

12 Florida Administrative Code.

13 COMMISSIONER BROGAN: Move approval.

14 ATTORNEY GENERAL BUTTERWORTH: Second.

15 GOVERNOR CHILES: Moved and seconded.

16 Without objection, it's approved.

17 DR. ZINGALE: Item 3, request approval of

18 the authority to file with the Secretary of

19 State under Chapter 120, Florida Statutes,

20 proposed amendment to Rule Chapter 12C-2.006,

21 and the creation of Rules 12C-2.0061, --62, and

22 --63, Florida Administrative Code.

23 COMMISSIONER BROGAN: Governor, I'll move

24 approval with a question.

25 Just the -- the issue on intangible. My

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF REVENUE

April 28, 1998

29

1 understanding is that there were several bills

2 filed that had to do with intangible tax this

3 session. Most of them were withdrawn. But I

4 further understand that they've been more or

5 less consolidated into one piece of

6 legislation.

7 Does this particular action today in any

8 way -- is it any way impacted by whatever that

9 pending legislation is?

10 DR. ZINGALE: It's my understanding, having

11 been briefed from staff just prior to the

12 meeting, that there's no actions the Legislature

13 is contemplating that will conflict with this

14 rule.

15 COMMISSIONER BROGAN: Thank you, Governor.

16 GOVERNOR CHILES: Is there a second?

17 ATTORNEY GENERAL BUTTERWORTH: Second.

18 SECRETARY MORTHAM: Second.

19 GOVERNOR CHILES: Second.

20 Without objection, it's approved.

21 DR. ZINGALE: Item 4, request approval of,

22 and authority, to file with the Secretary of

23 State under Chapter 120, Florida Statute,

24 proposed amendment to Rule Chapter 12B-8.001,

25 Florida Administrative Code.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF REVENUE

April 28, 1998

30

1 COMMISSIONER BROGAN: Move approval.

2 ATTORNEY GENERAL BUTTERWORTH: Second.

3 GOVERNOR CHILES: Moved and seconded.

4 Without objection, that's approved.

5 DR. ZINGALE: Thank you.

6 (The Department of Revenue Agenda was

7 concluded.)

8 *

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

31

1 GOVERNOR CHILES: State Board of

2 Education.

3 DR. BEDFORD: Governor Chiles,

4 Commissioner Brogan, members of the State Board

5 of Education, good morning.

6 Item 1, critical teacher shortage areas.

7 The critical teacher shortage fields identified

8 are the same that have been identified for the

9 last four years, with one addition of

10 technology education, which was added in 1996.

11 TREASURER NELSON: I have a question,

12 Governor.

13 May I?

14 GOVERNOR CHILES: Yes, sir.

15 TREASURER NELSON: The report indicated

16 that Florida is going to experience an

17 unprecedented number of teachers that are going

18 to be retiring starting about 2006.

19 DR. BEDFORD: Yes, sir.

20 TREASURER NELSON: Walk us through what is

21 being done to address that in anticipated severe

22 teacher shortage at the time.

23 DR. BEDFORD: There are -- there are

24 several things going on. There are recruitment

25 programs going on even as early as the

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

32

1 high school years, where students are being

2 encouraged to join the Future Teachers of

3 America, to become involved in education.

4 We are working with the deans of the

5 Colleges of Education of all of the institutions

6 that prepare teachers in the state of Florida.

7 We're sharing with them the --

8 (Secretary Mortham exited the room.)

9 DR. BEDFORD: -- statistics, and will be

10 working toward encouraging students to choose

11 education as a field.

12 I know as -- personally as I go around the

13 state and address both college and high school

14 students, I have been telling them about the

15 benefits of becoming involved in the profession

16 of education.

17 TREASURER NELSON: Well, as I look over

18 this list of these categories of anticipated

19 shortages, all the way from gifted to technology

20 education to varying exceptionalities, which,

21 I think, is the hearing impaired, SLD is the

22 highest percent where you're going to have a

23 vacancy.

24 No, that's actually where you have the

25 highest percent of graduates to the vacancies.

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

33

1 DR. BEDFORD: Yes.

2 TREASURER NELSON: But what -- you know,

3 with this kind of -- one-third of all Florida

4 teachers will be retiring beginning in 2006.

5 We're sitting here as a policy board, the

6 State Board of Education. What about some of

7 the things that are being debated in this

8 legislative session, such as merit pay and --

9 those kind of bonuses?

10 That's being talked about with regard to

11 national certification.

12 DR. BEDFORD: Yes.

13 TREASURER NELSON: What about as a matter

14 of policy, merit pay directed toward some of

15 these critical shortage areas that are going to

16 start appearing in 2006?

17 COMMISSIONER BROGAN: Governor, if I can,

18 I -- I agree. I've made this speech before.

19 And believe me, it doesn't exactly get rave

20 reviews out there from some of my colleagues.

21 But I'm a believer in supply and demand.

22 And I happen to believe if you have a supply

23 that doesn't meet the demand, there are a couple

24 of ways to deal with that.

25 One is to step up your recruitment efforts

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

34

1 and simply ask more people to get involved in

2 that area. One is to provide some sort of an

3 incentive -- and we do that through our

4 statewide critical teaching shortage area

5 incentives of --

6 (Secretary Mortham entered the room.)

7 COMMISSIONER BROGAN: -- of rebate of

8 tuition, et cetera.

9 But I also believe that there is no better

10 draw to help the problem of supply and demand

11 than just plain paying people more to do jobs

12 that you can't get people to do.

13 Last year we passed a piece of legislation

14 that requires each of the 67 school districts to

15 design programs that will now award teachers for

16 more than just experience and advanced degree,

17 but also performance.

18 You're right, Commissioner, now we've got

19 a piece of legislation that if passed, would see

20 the State recognize teachers around the state

21 with a statewide incentive.

22 But I -- I still believe that in those

23 districts where there are these shortages, that

24 right now, those districts have the ability to

25 set-aside and identify those critical teaching

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

35

1 shortage areas in their districts if they do

2 arise and occur, for some sort of a bonus

3 incentive to make it more attractive for people

4 who want to come there and teach in those

5 particular areas.

6 As you've cited, and you're right, most of

7 the areas are in the areas of special

8 education. That's not just a problem in

9 Florida, it's a problem nationwide.

10 We also have ESOL and technology.

11 And I just simply believe that we can

12 provide these kinds of preemptive incentives,

13 which are good, and I think helping to at least

14 stem the increase of -- of critical teaching

15 shortage areas. But I believe we need to get

16 serious about just recognizing we'll never fix

17 this problem until we make it so attractive to

18 people that they want to go there.

19 We also passed a piece of legislation last

20 session on alternative certification that allows

21 people to move from the private sector to become

22 teachers relative to the point on retirement,

23 because that is a big issue.

24 Those teachers are eligible for

25 retirement. We don't believe they'll all retire

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

36

1 at the same time. But we do believe we've got

2 to become more creative and more innovative in

3 how we draw new teachers into the business.

4 Everything from talking to middle and

5 high school teachers about the profession, all

6 the way up to and including identifying where

7 our toughest spots are to fill, and simply

8 paying more people to serve in those particular

9 areas.

10 So you can't do enough.

11 I have one other good piece of

12 information. Every year we talk about, and we

13 should, the number of minority youngsters who

14 are going into education. And I've got three

15 good pieces of information there.

16 One, both the number and percentage of

17 minority teacher education graduates are up.

18 Florida had more African American and Hispanic

19 students graduating from teacher education

20 programs in 95-96 than in any prior year.

21 And for African-Americans, this is a larger

22 percentage since the early '80s. And for

23 Hispanics, it's the largest percentage ever.

24 Two, both the number and percentage of

25 minority admissions to State University teacher

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

37

1 education programs are the highest ever.

2 And, three, the number and percentage of

3 minority teachers in Florida public schools are

4 also up.

5 So we're very proud of that fact. And as

6 we keep -- keep working on all these issues of

7 minority recruitment, teacher recruitment,

8 critical teaching shortage recruitment, we need

9 to bring you the tough ones, but we need to

10 bring you the success stories, too.

11 And I know that this -- from the member --

12 every member of the State Board of Education,

13 has been a priority for you since I've been

14 here, is trying to get all of our numbers up,

15 but also those numbers in minority recruitment.

16 So we wanted you to be aware of that one this

17 morning as well.

18 TREASURER NELSON: Well, would you

19 recommend to us as the State Board of Education

20 that -- recognizing what you just said about the

21 critical shortages that are to occur after the

22 turn of the century, that we ought to make some

23 recommendation to the Legislature as the

24 State Board of Administration that -- I mean,

25 what you're saying is it'd be nice if all the

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

38

1 67 school districts did this, but they may not.

2 So we're sitting here as a policy Board.

3 Should we recommend to the Legislature this

4 ought to be addressed?

5 COMMISSIONER BROGAN: Let us come back to

6 you. That may very well be the case for next

7 session.

8 Let us come back to you and find out what

9 the 67 school districts are already doing in

10 that area, and see if we can come back to you

11 with a recommendation about how to address it.

12 If you'll allow it.

13 Glad to do it.

14 GOVERNOR CHILES: All right.

15 DR. BEDFORD: We do not have a motion or a

16 second. I --

17 COMMISSIONER BROGAN: So move.

18 SECRETARY MORTHAM: Second.

19 GOVERNOR CHILES: Moved and seconded.

20 Without objection, that's approved.

21 DR. BEDFORD: Item 2, remediation of

22 computer systems for year 2000 compliance. This

23 is an item for the DOE, the internal department.

24 COMMISSIONER BROGAN: So moved.

25 SECRETARY MORTHAM: Second.

ACCURATE STENOTYPE REPORTERS, INC.

STATE BOARD OF EDUCATION

April 28, 1998

39

1 GOVERNOR CHILES: Moved and seconded.

2 Without objection, it's approved.

3 DR. BEDFORD: Item 3, repeal of rules in

4 accordance with Chapter 120. We're asking

5 permission to repeal 6A-7.095, 6A-10.001,

6 6A-10.002, 6A-10.003, 6A-10.010, 6A-10.017, and

7 6A-16.017.

8 COMMISSIONER BROGAN: So move.

9 SECRETARY MORTHAM: Second.

10 GOVERNOR CHILES: Moved and seconded.

11 Without objection, they're approved.

12 DR. BEDFORD: Thank you.

13 GOVERNOR CHILES: Thank you.

14 (The State Board of Education Agenda was

15 concluded.)

16 *

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

40

1 GOVERNOR CHILES: We will take up now the

2 Board of Trustees first. Then we'll go to the

3 Siting Board.

4 MS. WETHERELL: Item 1 are minutes.

5 SECRETARY MORTHAM: Move approval.

6 ATTORNEY GENERAL BUTTERWORTH: Second.

7 GOVERNOR CHILES: Moved and seconded.

8 Without objection, it's approved.

9 MS. WETHERELL: Item 2 are two option

10 agreements for Lake Wales Ridge CARL project.

11 SECRETARY MORTHAM: Move approval.

12 COMMISSIONER CRAWFORD: Second.

13 GOVERNOR CHILES: Moved and seconded.

14 Without objection, it's approved.

15 MS. WETHERELL: Item 3 is an option

16 agreement for Belle Meade CARL project.

17 SECRETARY MORTHAM: Move approval.

18 COMMISSIONER CRAWFORD: Second.

19 GOVERNOR CHILES: Moved and seconded.

20 Without objection, that's approved.

21 MS. WETHERELL: Item 4 are five purchase

22 agreements for Coupon Bight/Key Deer CARL

23 project.

24 SECRETARY MORTHAM: Move approval.

25 COMMISSIONER BROGAN: Second.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

41

1 GOVERNOR CHILES: Moved and seconded.

2 Without objection, that's approved.

3 MS. WETHERELL: Substitute Item 5 is an

4 acquisition of Hutchinson Island/Blind Creek

5 CARL project, designation of the County as the

6 managing agency, and confirmation of the

7 management policy statement.

8 SECRETARY MORTHAM: Move deferral.

9 COMMISSIONER BROGAN: Is that -- that one's

10 going to be deferred? Is that what you said?

11 SECRETARY MORTHAM: Yes.

12 COMMISSIONER BROGAN: I'll second that.

13 GOVERNOR CHILES: Moved and seconded on

14 motion to defer.

15 Without objection, it's approved.

16 MS. WETHERELL: Item 6 is an option

17 agreement for Rainbow Springs State Park

18 Addition, and a request for a waiver of survey.

19 SECRETARY MORTHAM: Move approval.

20 COMMISSIONER BROGAN: Second.

21 GOVERNOR CHILES: Moved and seconded.

22 Without objection, it's approved.

23 MS. WETHERELL: Item 7 is an option

24 agreement for Waccasassa State Preserve

25 Addition.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

42

1 SECRETARY MORTHAM: Move approval.

2 COMMISSIONER BROGAN: Second.

3 GOVERNOR CHILES: Moved and seconded.

4 Without objection, it's approved.

5 MS. WETHERELL: Item 8 is an option

6 agreement for West Orange Greenway.

7 SECRETARY MORTHAM: Move approval.

8 ATTORNEY GENERAL BUTTERWORTH: Second.

9 GOVERNOR CHILES: Moved and seconded.

10 Without objection, it's approved.

11 MS. WETHERELL: Item 9 is an option

12 agreement for Silver Springs Connector, and a

13 waiver of survey.

14 SECRETARY MORTHAM: Move approval.

15 ATTORNEY GENERAL BUTTERWORTH: Second.

16 GOVERNOR CHILES: Moved and seconded.

17 Without objection, it's approved.

18 MS. WETHERELL: Item 10 is a

19 modification --

20 GOVERNOR CHILES: On the Item 9, that's the

21 Silver Run Properties?

22 MS. WETHERELL: Yes, sir.

23 GOVERNOR CHILES: Well, my understanding

24 that the owners have --

25 (Treasurer Nelson exited the room.)

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

43

1 GOVERNOR CHILES: -- agreed to build a

2 facility, which they would turn over to the

3 State.

4 Could you tell us a little something about

5 that? It sounds --

6 MS. WETHERELL: Yes, sir. The owners --

7 the sellers have -- are setting aside an amount

8 of the acquisitional price -- acquisition price

9 to build a facility that will be a combination

10 visitor's center, educational facility for the

11 site. So we're real excited about it. It's a

12 great facility to have there.

13 So they're using part of their acquisition

14 dollars to do this.

15 GOVERNOR CHILES: Well, my understanding,

16 they've done this. And I think they certainly

17 should be thanked for this. And Tom Cavanaugh

18 and Tom Campbell have -- have generously

19 agreed to do this out of part of the purchase

20 price --

21 MS. WETHERELL: Yes, sir. It's a first --

22 GOVERNOR CHILES: -- for this facility.

23 MS. WETHERELL: Yes.

24 GOVERNOR CHILES: So we want to thank them

25 very much --

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

44

1 MS. WETHERELL: Thank you. We certainly

2 do.

3 GOVERNOR CHILES: -- for that.

4 MS. WETHERELL: Item 10 is modification of

5 an existing submerged land lease.

6 ATTORNEY GENERAL BUTTERWORTH: Motion.

7 SECRETARY MORTHAM: Second.

8 GOVERNOR CHILES: Moved and seconded.

9 Without objection, Item 10 is approved.

10 MS. WETHERELL: Substitute Item 11, we're

11 recommending deferral on this disclaimer,

12 quitclaim issue because of a legal problem that

13 we think we can resolve.

14 COMMISSIONER BROGAN: Move deferral.

15 ATTORNEY GENERAL BUTTERWORTH: Second.

16 GOVERNOR CHILES: Moved and seconded.

17 Without objection, motion to defer is

18 approved.

19 MS. WETHERELL: Item 12 is the

20 City of Punta Gorda conveyance.

21 Trustees, you have heard a lot of testimony

22 at the last meeting. And again today we have a

23 lot of people who have come up from the area,

24 over 100 people have come up today.

25 We have talked to both the opponents and

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

45

1 proponents, and asked them to prioritize their

2 speakers, 15 minutes per side.

3 So what we will do, with your concurrence

4 today, is to call on them in the order in which

5 they submitted their names, and when we run out

6 of 15 minutes per side, we'll move to the other

7 side.

8 GOVERNOR CHILES: All right. Well, we're

9 very happy to have all of the people that are

10 interested in this come to Tallahassee today.

11 This is the third time this issue has been

12 before the Governor and the Cabinet. We're

13 fairly familiar with it.

14 I think with 15 minutes to the side,

15 proponents and opponents should be able to

16 summarize their case.

17 MS. WETHERELL: Uh-hum.

18 GOVERNOR CHILES: And then the Governor and

19 the Cabinet can take action on this. So --

20 MS. WETHERELL: Yes, sir.

21 All right. I'm going to call first on

22 George Mitchell.

23 GOVERNOR CHILES: Are we hearing now from

24 the --

25 MS. WETHERELL: From the opponents.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

46

1 GOVERNOR CHILES: Opponents. All right.

2 MR. MITCHELL: Good morning, Governor and

3 Cabinet.

4 (Treasurer Nelson entered the room.)

5 MR. MITCHELL: My name is George Mitchell.

6 I live in Punta Gorda, Florida. And I would

7 like to ask the people who came to try to save

8 Laishley Park to stand up, please.

9 Thank you.

10 You may sit down.

11 And here's another 14 petitions to add to

12 the 4,500 I believe you already received.

13 (Attorney General Butterworth exited the

14 room.)

15 MR. MITCHELL: There are approximately

16 82 people from Punta Gorda and Charlotte County

17 here. These people got up early, changed

18 appointments, and missed work to be here. Many

19 more would like to have come, but had to work or

20 keep an important appointment. This was a last

21 minute decision made late Friday to come here.

22 As you can see, there's no problem in

23 getting people who believe in this cause to come

24 and speak out.

25 I would like to also disclose that I have

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

47

1 donated the funds for the buses to bring these

2 loyal citizens here. I have no personal gain

3 from this issue.

4 I did not org-- I did organize a nonprofit,

5 national antique auto show in Laishley Park

6 several years ago. This was the largest

7 national show ever held in Florida. There was

8 no charge to the public for admission, I have no

9 interest in a future national show. You have to

10 apply five years in advance.

11 We have people here today from many walks

12 of life. Some have been a little more fortunate

13 than others, but all are good, honest, hard

14 working people. Some of their livelihoods and

15 way of life will be affected by condos in the

16 park.

17 And I'd like to have Grant come up here.

18 Grant didn't want to get up and tell you his

19 story. I think he's a little bashful. But he's

20 agreed to come up and answer a few questions.

21 Grant, would you tell us your full name,

22 please?

23 MR. LOWE: William Grant Lowe.

24 MR. MITCHELL: And, Grant, how long have

25 you lived in Punta Gorda?

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

48

1 MR. LOWE: All my life.

2 MR. MITCHELL: Where do you live now,

3 Grant?

4 MR. LOWE: On the boat.

5 MR. MITCHELL: What do you do for a

6 living?

7 MR. LOWE: Shrimp.

8 MR. MITCHELL: Do you receive any

9 food stamps, or any other financial assistance?

10 MR. LOWE: No.

11 MR. MITCHELL: Where will you go when the

12 other 15 or 20 fishermen and shrimpers, when the

13 condo people take over.

14 MR. LOWE: We'll probably go to Fort Myers

15 or Tampa.

16 MR. MITCHELL: Do you have anything you'd

17 like to personally say, Grant?

18 MR. LOWE: No.

19 MR. MITCHELL: Thank you.

20 Wasting time.

21 Okay, Grant. Thanks for taking your

22 valuable time and missing work to come up here.

23 Ladies and gentlemen, you are in charge of

24 the trust as caretakers of the people's land. I

25 request you do what the majority of the people

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

49

1 want, and save this park for the people of now,

2 and for all future generations to enjoy forever.

3 Let's not let greed and profit take this

4 public jewel away. I ask you not to give the

5 City the reverter at this time. Give us

6 six months to a year to follow through with the

7 lawsuits and investigations already in

8 progress.

9 Give us the help of the State's Attorney's

10 Office to prove or disprove these allegations.

11 The plans for the condos are being processed for

12 building permits by the City at this very

13 minute. Within hours after you approve this

14 reverter, it's all over.

15 Please give us time. Thanks for listening.

16 GOVERNOR CHILES: Thank you, sir.

17 MS. D'ANDREA: Thank you.

18 My name is Diane D'Andrea, and I have been

19 a resident of the City of Punta Gorda for

20 19 years.

21 Today our Governor and Cabinet officials

22 are being asked to give or sell a small strip of

23 State-owned land on Charlotte Harbor to the City

24 of Punta Gorda so that they may turn it over to

25 a private developer.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

50

1 This developer plans to build condominiums

2 on the property, which would reduce the public's

3 access to waterfront. This is the most

4 controversial issue in our City's history.

5 I've heard General Milligan speak about the

6 7-Eleven test at a speech before a professional

7 organization. He tells the story about one of

8 his fellow military officers who took the time

9 to engage patrons of the local 7-Eleven in

10 conversation on a regular basis to determine how

11 ordinary citizens felt about government policies

12 that affected their lives.

13 When asked his opinion on a controversial

14 issue, the General reported that it didn't meet

15 the 7-Eleven test.

16 Secretary of State Mortham sent her

17 Cabinet Aide to Punta Gorda to see firsthand

18 what all this controversy was over such a small

19 piece of land.

20 Besides visiting with local officials, this

21 Aide took the time to stand in front of a local

22 Publix grocery store, which is right across the

23 highway from this proposed development. He

24 engaged perfect strangers in conversation, and

25 asked them their opinion on what has become

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

51

1 known as the Laishley Park issue.

2 He reported that no one was shy about

3 discussing the issue, and that the overwhelming

4 majority did not want to see condominiums

5 developed in our waterfront park.

6 Ladies and gentlemen, I submit to you that

7 giving away our waterfront certainly does not

8 pass the 7-Eleven test, or the public's test, or

9 any other test.

10 Both of our local newspapers have opposed

11 the sale of this public land. Thousands of

12 citizens have written letters or signed

13 petitions asking you to help us preserve our

14 waterfront.

15 Our County Commission has passed a

16 resolution which was sent to you stating their

17 commitment to preserving the public's access to

18 the waterfront area.

19 However, some of our City officials have

20 implored you to give up the State's right to

21 this piece of land so they can proceed with

22 their plans to replace trees and grass with

23 concrete and water.

24 They seem to think that putting

25 condominiums, office buildings, parking lots,

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

52

1 and retail shops on our only remaining

2 waterfront parcel of land is progress.

3 Many of us feel that preserving this land

4 for the use and enjoyment of future generations

5 is truly progressive. Please help us attain

6 that goal by denying the sale of this property

7 to the City of Punta Gorda.

8 Thank you.

9 GOVERNOR CHILES: Thank you.

10 MR. JOHNSON: Good morning. My name is

11 Paul Johnson. I'm a resident of Punta Gorda.

12 I'm here today to urge the Cabinet to focus

13 on protecting the public's right to use and

14 enjoy the valuable waterfront land that belongs

15 to the State. Over the past month, you've heard

16 presentations from lobbyists, City officials,

17 and individuals with a business interest in the

18 success of this development.

19 They urge you to honor a commitment to the

20 Punta Gorda CRA. They insinuate that failure to

21 sell or give the Wood Street Extension to the

22 CRA will result in condos being built on the --

23 on property which is now slated -- which is now

24 designated public park land.

25 That just is not true.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

53

1 And so are a lot of other things you've

2 been told. I think you may recall that a

3 previous presentation made by the City's

4 Planning Director was far from accurate, and

5 less than candid.

6 He told you a strip of State-owned land

7 being discussed was insignificant. I'm here

8 today to tell you that it's far from

9 insignificant. It's the reason we've appeared

10 here before you on three separate occasions.

11 During that same time period, there has

12 been considerable turmoil at City Hall. For

13 whatever reason, the City Planner has tendered

14 his resignation and taken a position in a

15 neighboring city.

16 Shortly thereafter, the City Attorney

17 unexpectedly announced his plans to enter

18 private practice.

19 I find these occurrences strangely curious,

20 but certainly not coincidental. The question

21 is, why all of a sudden are these

22 pro-development leaders leaving. The reason is

23 obvious. The City of Punta Gorda is giving away

24 public waterfront property. Why?

25 They claim it will increase the tax base.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

54

1 That is not correct. The property tax collected

2 from condominium owners will not go to the

3 City's general fund as advertised. Instead, the

4 money will, by law, go to the -- will go

5 directly to the CRA.

6 Consequently, the cost of City services

7 will become the financial burden of other city

8 residents like myself.

9 Not only will we lose our beautiful

10 waterfront park, but we must also pick up the

11 financial slack for condo dwellers.

12 Members of the Cabinet, there is something

13 very wrong here. People sense this, the voters

14 sense this, and our County Commission senses

15 this.

16 We hope that you will sense this and help

17 us protect our public's right to use in

18 perpetuity what is rapidly becoming the State's

19 vanishing public waterfront.

20 Thank you very much.

21 GOVERNOR CHILES: Thank you, sir.

22 MS. SMITH: My name is Phyllis Smith, and

23 I'm a resident of Punta Gorda.

24 Since I moved to Punta Gorda about 20 years

25 ago, I've devoted my full time and attention to

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

55

1 the betterment of my adopted community. I have

2 served as an elected official of -- a member of

3 the City Council. I've also served my community

4 for eleven years as the Chairman of the Downtown

5 Revitalization Committee.

6 I was a member of the City Council when the

7 decision was made to clear old travel trailers

8 from our municipal mobile home park and improve

9 the area with a mixed use development.

10 Once the area had been cleared of old

11 mobile homes, the public became accustomed to

12 using the park for large events. In the past

13 several years, we have hosted music festivals,

14 art shows, seafood festivals, boat shows,

15 4th of July picnics, antique automobile shows,

16 and fishing tournaments.

17 In that same period of time, our downtown

18 has become revitalized. We have started a

19 streetscape program, which has beautified our

20 downtown by planting oak trees, and we have big

21 planters filled with flowers. We've installed

22 old-fashioned street lighting. We have a new

23 mural program where professional artists have

24 painted scenes of our City's historic district

25 on the once plain sides of downtown buildings.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

56

1 All this has been done without the

2 waterfront parcel of land known as Laishley Park

3 being developed into condominium and office

4 buildings.

5 There's been a lot of progress in the City

6 of Punta Gorda in the past ten years. At the

7 same time, the public has become accustomed to

8 the open space on the waterfront.

9 Now you are being asked to give away a key

10 piece of property that is vital to the

11 preservation of the public's access to that

12 waterfront. You're being asked to give the

13 parcel to the City of Punta Gorda so that it can

14 turn it over to a private developer to construct

15 condominiums on the harbor front.

16 The time has come for us to say, just say

17 no to developers who would pave over every green

18 space for their own profit.

19 The State of Florida has made a great deal

20 of progress in recent years in its attempts to

21 purchase land for preservation. This is only

22 one small piece of waterfront land. But the

23 good news is, you don't have to purchase it.

24 You already own it.

25 I'm asking you to keep it in your hands so

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

57

1 our waterfront can be enjoyed by all, not just a

2 few wealthy condominium dwellers.

3 I thank you.

4 GOVERNOR CHILES: Thank you, ma'am.

5 MS. REYNOLDS: Good morning, Governor;

6 good morning, Cabinet. My name is

7 Marge Reynolds. I live at 703 West Olympia

8 Avenue in Punta Gorda, in the City of

9 Punta Gorda, in the CRA. My husband and I own a

10 house.

11 In May of -- May 29th, 1991, by regular

12 mail, we were served with eminent domain

13 papers. I'm here to tell you, and I will gladly

14 put my hand on a Bible, that I will tell you

15 that whatever I'm about to tell you is the whole

16 truth, and I can back it up with every bit of

17 paperwork, even though I have spent the last

18 three years being stonewalled by my government

19 in order to be able to find the information

20 that's needed.

21 We do not have a computer system there, and

22 the -- and all the records are kept in a vault,

23 an old bank vault.

24 First off the bat, I think that we're all

25 in the same boat here, because this is a booklet

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

58

1 that was handed out at a -- at a public meeting

2 in February, I believe it was the 18th, of

3 1998. It's a question and answer book that was

4 put together by our City Attorney.

5 And I'd first like to let you know that I

6 did go through the Court, and I have a copy of

7 all the money that was deposited in this

8 eminent domain, and who got paid. Two people --

9 exactly two checks were written. The people

10 were -- our parks have been confiscated. And

11 the judge made rulings, and the rulings were

12 never taken care of, and nobody knew what was

13 happening.

14 We never got a second notice, we never knew

15 that there was eleven cases running through the

16 Court. And I'm here to ask you -- and I'm also

17 here to tell you that if you consider selling

18 this reverter for $89,000, you've lost money.

19 Because it was appraised at $139,000, and it's

20 right here, by our own government.

21 And as I may read to you, the FDEP also

22 demanded CRA commitment to pay them $138,000 --

23 and I will say, it was appraised -- for the

24 Wood Street Extension area of the site, which

25 FDEP has never maintained or even knew they had

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

59

1 an interest in.

2 It took five years to receive the FDOT

3 approval and to use the U.S. 41 right-of-way.

4 I think what I'm really going to ask you,

5 because I want my fellow citizens to be able to

6 speak. I'm living in a house that is subjected

7 for the next 22 years under slum and blight. We

8 are eminent domained. The -- the parks -- the

9 City -- that Colonel Trabue willed to -- granted

10 to us, they've been confiscated. No

11 remuneration.

12 Part of the old City of Trabue is into the

13 PGI Isles. That land has been -- just ignored.

14 They took it. And didn't put it in the CRA.

15 I have maps, I did everything, but I don't

16 want to take up all the time. The only people

17 that were paid out of this was $84,800 was paid

18 to the Chamber of Commerce for their building.

19 And then there was one family that was a --

20 okay -- there was one family that was a -- heirs

21 to property.

22 What I'd like to ask you is, according to

23 this book also, the CRA is a State agency.

24 Governor, I'm here asking you, if you could

25 assign an investigator to find out what's going

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

60

1 on down there, and take control, Governor, and

2 Cabinet, of your State agency called the CRA in

3 Charlotte -- in Punta Gorda.

4 Thank you.

5 GOVERNOR CHILES: Thank you.

6 MR. LOFTUS: Good morning, Governor Chiles,

7 and members of the Cabinet. For the record,

8 Dick Loftus. I rise in opposition to the sale

9 of Wood Street Extension which would allow


10 development adjacent to the pristine waters of

11 Charlotte Harbor.

12 I chair the county-wide Parks and Recs

13 Advisory Committee, and the Charlotte Harbor

14 CRA, which is just a stone's throw away from the

15 Laishley Park.

16 Both committees recommended to the Board of

17 County Commissioners the acquisition and

18 development of -- and undeveloped property along

19 the waterfront side of Bayshore Road to reduce

20 potential loss of life and structures.

21 The Board has allocated over 2 million

22 dollars of local tax dollars to acquire the

23 property over the next four years, and will

24 provide a lineal park for the general public to

25 use.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

61

1 The committee also recommended the

2 acquisition of undeveloped, environmentally

3 sensitive land adjacent to the Charlotte Harbor

4 to maintain the present waters and eliminate the

5 potential of development of these lands.

6 The County has spent millions of local tax

7 dollars, and has continued to spend local

8 dollars working in partnership with the State's

9 Preservation 2000, the CARL program, to acquire

10 this type of property.

11 Laishley Park should remain undeveloped and

12 utilized as a park for the general public to

13 use.

14 Thank you.

15 GOVERNOR CHILES: Thank you, sir.

16 MS. WETHERELL: Trustees, that's

17 15 minutes. We've run out of time on that side.

18 I've been requested to ask you though if

19 they can have 5 more minutes on their side.

20 GOVERNOR CHILES: All right. We'll give

21 5 more minutes. What I see is the line just

22 keeps forming.

23 Five minutes.

24 MS. WETHERELL: Yes, sir.

25 MS. RATERMAN: Honorable Governor,

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

62

1 Honorable members of the Cabinet.

2 My name's Louise Raterman. I publish an

3 environmental newsletter in Charlotte County,

4 and have for the past eight years.

5 A number of years ago, I -- I happened upon

6 a wall of trees being bulldozed. These were

7 mangrove trees. It happens that that bulldozing

8 eliminated one out of two known yellow crown

9 night heron rookeries in our region.

10 And I went to do some research on this --

11 (Attorney General Butterworth entered the

12 room.)

13 MS. RATERMAN: -- and what I found was

14 stunning.

15 In October of 1991, the developer, the same

16 developer who is going to be given the land

17 today after the CRA buys it, made a request to

18 this -- to you, sitting as the Trustees -- I

19 know, Governor, you were here and,

20 Mr. Butterworth, you were here. And they --

21 they asked permission to dredge this.

22 Mr. Crist and the City were coapplicants.

23 They said -- he wanted to put condos here and to

24 put boats in here, and he couldn't get in -- you

25 denied him permission to take out this plug of

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

63

1 mangroves.

2 However, they went on to that

3 hearing officer, and he said, okay.

4 That -- the City and the developer gave the

5 same promises to the hearing officer that they

6 gave to you. One of them -- and the conditions

7 under which they were given approval was that

8 this mangrove place would be improved. This

9 mangrove place where the -- where the rookery

10 was would be enhanced, biological diversity

11 would be increased in the entire --

12 (Governor Chiles exited the room.)

13 MS. RATERMAN: -- inlet, allowing the

14 possibility of manatees even. And this park,

15 which had never been opened up to the public,

16 would now be opened up.

17 Permission was given because of those

18 arguments. But none of the conditions were met,

19 and none of the promises were kept.

20 And I ask you today that I -- I just

21 believe it's wrong to then reward a developer

22 who hasn't kept environmental promises, and kept

23 to the conditions of the State. And he would be

24 giving -- given the Wood Street Extension.

25 After you give it to the CRA, it would go to

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

64

1 enhance the condominium developer.

2 And we do have manatees in the

3 Charlotte Harbor, in that region. That again

4 would be filled with boats.

5 And, you know, it's much different looking

6 at the water at the premier viewing point at

7 that park area, and knowing that this is ours,

8 this is our water where the birds are lighting,

9 or whether, you know, it's private, it doesn't

10 belong to us.

11 Thank you very much.

12 MR. WAGNER: Good morning.

13 My name's Wampus Wagner.

14 Ladies and gentlemen, we had our

15 EEL program, we've had our CARL program, we've

16 had Preservation 2000 program, we've spent

17 millions of dollars in this state on these

18 programs, and they've done some good.

19 They've saved the western shore of

20 Charlotte Harbor, they've saved the eastern

21 shore of Charlotte Harbor. Now we're back up in

22 downtown Punta Gorda with a piece of green space

23 there that's known as the Wood Street

24 Extension. And the Wood Street Extension is the

25 key to the preservation of one of the greatest

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

65

1 assets Punta Gorda has.

2 Our green space on the riverfront, unlike

3 Fort Myers, who has 2 acres of green space left

4 on the waterfront for the people to use, we have

5 a lot of green space, and we want to keep it,

6 because that's the uniqueness of Punta Gorda.

7 (Governor Chiles entered the room.)

8 MR. WAGNER: I ask you to please help us

9 preserve this green space for future

10 generations.

11 Thank you.

12 MS. PRENTISS: Good morning.

13 My name is Joanna Prentiss, and I live in

14 Port Charlotte.

15 I simply want to point out something very

16 short and brief: That all the 82 people who got

17 up at 3:00 o'clock in the morning and drove up

18 here on these buses and went through a lot of

19 hardship to do it, none of us have any personal,

20 vested interest in this project. We are not

21 going to make any money, we're not real estate

22 speculators, we're not developers. We're not

23 related to the developers.

24 We are here because we want to have the

25 public waterfront preserved forever for the use

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

66

1 of the public and the future generations of our

2 children.

3 That is the only reason we are here.

4 That was my 5 seconds there.

5 If you want us to beg, I'm sure all 82 of

6 us will get down on our knees. It is that

7 important to us. And this was funny to

8 Bob Johns, but it is not funny to us.

9 I am begging you to keep that strip of

10 waterfront land in the public's hands. If

11 they're going to have the condos, at least let

12 us keep fishing, keep watching the birds, keep

13 watching the manatees and the dolphins, and

14 don't spoil that beautiful piece of nature.

15 Thank you.

16 MS. WETHERELL: Okay. We will move to the

17 list of proponents then with the same

18 20 minutes.

19 Kevin Crowley is first.

20 MR. CROWLEY: Governor, and members of the

21 Cabinet, thank you very much.

22 Kevin Crowley, representing the Community

23 Redevelopment Agency.

24 I wanted to thank you -- each of you for

25 the -- for the time and the resources that --

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

67

1 that you've put into this issue. You really

2 have gone beyond the pale in providing this

3 forum.

4 It is, of course, the culmination of many,

5 many years, hundreds of meetings and hearings.

6 And we would ask now that your job is done,

7 you've provided this forum, now let the job be

8 done of the local elected officials who have had

9 the hearings, who have made the compromises, who

10 have thoroughly gone over all the options.

11 Before I give you to the Mayor, I wanted to

12 point out one sort of technical point, but an

13 important one. And that is that this conveyance

14 comes with a restrictive covenant, which forever


15 keeps the river walk in public access. That's a

16 restrictive covenant that cannot be lifted,

17 except by this Board. The public will always be

18 able to be there, and to enjoy the waterfront.

19 Okay. The -- the restrictive covenant

20 I believe is in your back-up materials.

21 With that, the Governor of Punta Gorda --

22 or the Mayor of Punta Gorda.

23 MR. RICHARDS: I've just been promoted,

24 Governor.

25 Governor Chiles, and members of the

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

68

1 Cabinet, my name is Bill Richards. I'm the

2 Mayor of Punta Gorda.

3 The City of Punta Gorda and the CRA have

4 worked hard over the years in planning and

5 refining the Punta Gorda Harbor mixed use

6 development project.

7 An important feature of planning activities

8 has been the obtaining of State permits, and

9 State authorization to begin the project. This

10 process has taken many years, with many

11 discussions with the State agency.

12 Finally, all permits are in place; all

13 agreements, except this current issue, have been

14 put in force; and the City CRA is ready to

15 execute a legal, binding agreement for the mixed

16 use development.

17 The following is a partial list of State

18 approvals of these permits agreements. First we

19 have an easement from the Florida Department of

20 Transportation for the parking of trailers on

21 the west side of the project so the people can

22 use the boat ramp that was retained in the

23 project.

24 We have a manatee protection plan that was

25 constructed by the Southwest Florida Regional

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

69

1 Planning. For this plan we have established

2 speed zones, public literature, and -- and

3 protection.

4 The Punt-- Punta Gorda marina permit, which

5 is big under the Florida Department of

6 Environmental Protection, and the Trustees of

7 Internal Improvement Fund and submerged land.

8 We have development of regional impact by

9 the -- approved by the Southwest Florida

10 Regional Planning, and the Florida Department of

11 Community Affairs.

12 We have a comprehensive land use plan

13 approved by the Southwest Regional Planning

14 Council, and, again, the Florida Department of

15 Community Affairs. This includes the

16 essentialities and rationale for the Punta Gorda

17 Harbor project.

18 The above recitation clearly -- shows

19 clearly that over the past ten years, plus and

20 over -- with 40 public meetings duly advertised

21 that dealt solely with this issue, we are now

22 ready to proceed. We are complying with all the

23 requirements associated with the very State

24 approvals mentioned above.

25 And we urge you, as Governor and Cabinet,

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

70

1 to release the State's interest in the

2 Wood Street Extension.

3 Thank you.

4 GOVERNOR CHILES: Thank you.

5 MS. BRENNER: Good morning, and thank you

6 for hearing us again. I'm Jane Brenner,

7 City Council member.

8 First, I want to comment on the patience

9 and professionalism of your staff. They have

10 been, without exception, attentive and courteous

11 to all of us, even till 8:30 in the evening.

12 I want to point out to you that this is a

13 local issue. It was a local issue when the

14 contract was originally signed in 1990, and

15 I think it is still a local issue.

16 You have received many petitions and

17 letters in favor of this convert. I want to

18 point out to you also that as public officials,

19 I believe that we are obligated to separate

20 emotions from fact.

21 By doing so, by voting to convey the

22 Wood Street Extension, you will, in fact, be

23 voting to save our hard-won park.

24 Thank you.

25 MR. STRANG: Governor, members of the

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

71

1 Cabinet, good morning.

2 My name is Robert Strang, I am a member of

3 the CRA and a private citizen. I own some --

4 with my wife, we own property within the CRA

5 area, and also have two businesses.

6 The CRA was started in 1990 because there

7 are certain areas of Punta Gorda that needs

8 economic help. The mixed use development is our

9 engine to give that area the economic help that

10 it needs.

11 The different events that these people have

12 spoke of can still be carried on in the 8 acres

13 that will remain a park in this area with

14 openness to the bay. So they will not be denied

15 having the different fairs and activities going

16 on within the City of Punta Gorda, and this is a

17 very important economic item for the taxpayers

18 and for the area that needs the help.

19 Thank you for your consideration.

20 MR. LaCROIX: Good morning, Your Honors.

21 I'm David LaCroix, the CRA attorney.

22 I'd like to correct two things first. One

23 is that the only allegation of any wrongdoing

24 that's pending with the State Attorney in

25 Charlotte County is a spurious complaint of an

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

72

1 alleged Sunshine Law violation regarding one CRA

2 meeting that's been pending for

3 eight-and-a-half months because it is spurious,

4 and the State Attorney cannot prosecute on it.

5 Secondly, the fishing boats and shrimpers

6 that are now renting boat slips from the City

7 will continue to rent boat slips from the City.

8 There's no plan for any change.

9 As a matter of fact, when this development

10 goes forward, there will be 80 boat slips

11 instead of 20, and only 30 of them are committed

12 to condo owners. For a brief period of time

13 they have an option to rent them. Then they

14 will become City property, will be rented out

15 the same as our current boat slips.

16 I'd like to remind you of two things.

17 First is that if you do not follow through with

18 your commitments to give the City -- sell the

19 City the Wood Street Extension, it will not stop

20 the project.

21 The Punta Gorda Harbor Development will

22 still go forward, unless the City and the CRA

23 subject themselves to a multibillion dollar

24 lawsuit for breach of contract, and unless the

25 City and the CRA agree to give up all the

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

73

1 revenues from this project that are going to pay

2 off the existing three-and-a-half million dollar

3 debt of the CRA. We have no other source of

4 revenue to do that.

5 I'd also like to remind you that this

6 redevelopment project is going to provide

7 revenues for many, many projects that are on the

8 books as part of our overall redevelopment plan

9 in the poorer areas of Punta Gorda, and that you

10 got a -- that you received a copy of a letter

11 from Robert Schlichter to Governor Chiles.

12 Mr. Schlichter is the Executive Director of

13 Habitat for Humanity in Punta Gorda. And

14 Mr. Schlichter has reiterated his continued

15 support for this development, and all the good

16 that it will do in those areas of our city that

17 really need some redevelopment.

18 Thank you.

19 MR. HAYMANS: Good morning.

20 Michael Haymans, Farr law firm in

21 Punta Gorda.

22 I represent Waltemath interest, which is

23 the prime developer interest that entered into a

24 contract with Community Redevelopment Agency

25 after being invited down to Punta Gorda because

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

74

1 of the -- the need for a private partner in this

2 redevelopment in the slum and blighted area.

3 I grew up in Punta Gorda, I returned to

4 raise my family there. It's a wonderful place.

5 It will continue to be a wonderful place -- it

6 will be a better place because of the community

7 redevelopment project.

8 I saw the depressed downtown area, I saw --

9 I've been in the municipal trailer park on the

10 water, which was an epicenter of -- one of the

11 epicenters of slum and blight occurring in

12 Punta Gorda.

13 It is -- it was determined, and it still

14 is, the policy of the state of Florida, through

15 the State Comp Plan and the Community

16 Redevelopment Act of 1969, to revitalize

17 downtowns through the creation and support of

18 community redevelopment plans and agencies to

19 implement those plans.

20 We have a duly constituted agency and a

21 properly adopted plan. There's been a contract

22 entered into to further the plan. There's been

23 a lawsuit through condemnation in order to

24 implement the plan.

25 This mixed use has been included since the

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

75

1 very beginning. It's always had a residential

2 component. It's an integral part of the

3 community redevelopment.

4 The plan preserves public ownership and

5 access on the entire waterfront. You've heard

6 the rhetoric of the people who have -- for

7 good -- good -- from good places in their

8 hearts, don't want condominiums, but they're too

9 narrow a perspective.

10 And they use the rhetoric -- and they use

11 the rhetoric of the elimination of the public

12 from the water as the -- the engine to drive

13 their -- the emotions. The public ownership and

14 access on the entire waterfront is preserved in

15 this plan.

16 Your decision will declare the State's

17 commitment to duly constituted government, to

18 orderly administration of government, and to

19 community redevelopment.

20 Thank you very much.

21 MR. FRAZEE: Good morning.

22 My name is Glenn Frazee. I am a citizen

23 and taxpayer of the City of Punta Gorda.

24 I appeared before the Governor and the

25 Cabinet two weeks ago, and made this statement:

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

76

1 This Laishley Park issue and the sale of the

2 Wood Street Extension to the Punta Gorda CRA is

3 the most divisive measure that has hit

4 Punta Gorda in the last 25 years.

5 My message today is very brief and very

6 simple. I ask that you approve the sale of the

7 Wood Street Extension to the Punta Gorda

8 Community Redevelopment Agency. Any delay in

9 approving this sale will only serve to continue

10 this division within our fine city.

11 Governor, Cabinet members, help us to bring

12 peace and harmony to the City of Punta Gorda.

13 Thank you very much.

14 MR. LAZZELL: For the record, my name is

15 Rufus Lazzell, citizen of Punta Gorda. I spent

16 eight years on the City Council, four of which

17 as Mayor.

18 I have one specific point to make, and that

19 is to enumerate for the citizens committees and

20 citizens who have over the past ten-and-a-half

21 years supported the mixed use development, which

22 includes the issue before you today.

23 Early on, our Park Use Study Committee,

24 composed of citizens, supported and recommended

25 that a mixed use development be undertaken by

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

77

1 the City.

2 Our Downtown Revitalization Committee over

3 the years repeatedly approved of and recommended

4 undertaking of the mixed use development. This

5 mixed use development has always included

6 condominiums.

7 The Punta Gorda Planning Commission has

8 repeatedly recommended approval of this project

9 and its changes over the years.

10 In addition to these committees, citizens

11 of Punta Gorda have supported by -- through

12 their home owners associations and civic

13 associations, and as previously told to you,

14 over more than 40 public meetings on this issue.

15 Governor -- Governor and members of the

16 Cabinet, this is a local issue developed and

17 approved by locally elected officials. We have

18 a legally binding contract. With the current

19 exception, all permits and agreements, as stated

20 previously, have been approved by the State.

21 I urge you to release the State's interest

22 in the Wood Street Extension.

23 MR. PEHOUSHEK: Governor Chiles, members of

24 the Cabinet, my name is Joe Pehoushek. I'm a

25 full-time resident, taxpayer, and voter of

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

78

1 Punta Gorda, with no financial interest in this

2 whatsoever, other than that I pay taxes.

3 Should the condo builder be successful in

4 his breach of contract suit, which is now

5 pending against our City, and the redevelopment

6 agency, the roughly 5,000 taxpaying households

7 of Punta Gorda will pay three to

8 five million dollars in damages and attorneys'

9 fees.

10 In addition, the overall project developer,

11 Waltemath, may well pursue a similar suit,

12 potentially for another 5 million dollars.

13 Other losses, if the condos are not built,

14 include six to seven million dollars in jobs and

15 construction material sales, and the loss of

16 60 mid to high income families, whose spending

17 of their money in the heart of our redevelopment

18 area, is critical to this program.

19 Please, grant us the land, and help us both

20 avoid the loss, and get on with a wonderful

21 project.

22 MR. YAWN: Good morning, ladies and

23 gentlemen. My name is Johnny Yawn.

24 And I'm from Punta Gorda and I raise my

25 family in Punta Gorda. And I have the dubious

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

79

1 distinction today of being the closing act, so

2 to speak.

3 So, if you would, let me change the thrust

4 ever so slightly. There's nothing that you

5 haven't heard that I can come up here today and

6 say.

7 So let me go back about three weeks ago.

8 My daughter asked me -- my fifteen year old,

9 tenth grade, Charlotte High School, daughter

10 asked me a very difficult question about

11 Laishley Park. She asked me a dozen very

12 difficult questions about Laishley Park that I

13 could not answer.

14 And, Commissioner Brogan, I want to

15 thank you for that, for putting into our school

16 system the education where these young people

17 can stand up and ask questions that their

18 parents cannot answer.

19 So I said to my daughter, let's do it.

20 Let's go up and watch the Governor and the

21 Cabinet in session, and you make up your own

22 mind.

23 Two weeks ago, we sat right here, and she

24 listened very intently to both sides. When we

25 left, I asked her what her opinion was.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

80

1 She said that you have a very difficult

2 job, and, Governor Chiles, one of these days,

3 she's going to be sitting where you are.

4 She also said, after all was said and done,

5 she said, I don't understand where we are right

6 now. How can the Governor and the Cabinet

7 renege at this point in -- at this point in

8 time?

9 Question I can't answer.

10 Thank you very much, ladies and gentlemen,

11 for listening and putting up with all of us.

12 MS. WETHERELL: That concludes the

13 presentations.

14 GOVERNOR CHILES: Is there a motion?

15 Yes, sir.

16 COMPTROLLER MILLIGAN: I'll move -- I'll

17 move the land conveyance.

18 COMMISSIONER CRAWFORD: Second.

19 GOVERNOR CHILES: Moved and seconded on the

20 staff recommendation.

21 Many as favor, signify by saying aye.

22 THE CABINET: Aye.

23 GOVERNOR CHILES: Opposed, no.

24 Staff recommendation is approved.

25 MS. WETHERELL: Okay.

ACCURATE STENOTYPE REPORTERS, INC.

BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND

April 28, 1998

81

1 GOVERNOR CHILES: It's come to my attention

2 that our former Insurance Commissioner of the

3 State Treasury, Tom O'Malley, passed away on

4 Saturday.

5 His mass is being held this morning.

6 I think it would be very appropriate if we

7 would observe a moment of silence for this

8 former Cabinet member, and Treasurer of the

9 State.

10 Thank you.

11 (The Board of Trustees of the Internal

12 Improvement Trust Fund Agenda was concluded.)

13 *

14

15

16

17

18

19

20

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

82

1 GOVERNOR CHILES: State Siting Board?

2 MS. WETHERELL: Item 1 are minutes.

3 SECRETARY MORTHAM: Move approval.

4 GOVERNOR CHILES: Moved and seconded.

5 ATTORNEY GENERAL BUTTERWORTH: Second.

6 GOVERNOR CHILES: Without objection, the

7 minutes are approved.

8 MS. WETHERELL: Substitute Item 2, we're

9 recommending approval of the Purdom Unit 8 final

10 order.

11 And, Governor, and members, we have one

12 person who would like to speak against this, and

13 then a couple of people who would like to speak

14 in favor of it.

15 GOVERNOR CHILES: Do we have some time?

16 MS. WETHERELL: Would you like to say

17 10 minutes per side?

18 GOVERNOR CHILES: I would think that would

19 certainly be ample.

20 MS. WETHERELL: Yes, sir.

21 GOVERNOR CHILES: Yes.

22 MS. WETHERELL: All right. I'll call first

23 on Ron Mowrey, representing Wakulla County.

24 MR. MOWREY: Let me initially introduce

25 Dr. Wyatt Pope, the County Commissioner that's

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

83

1 here. We neglected to put him on the -- on the

2 list. He may or may not say a couple of words,

3 Governor.

4 My name is Ron Mowrey. I do represent

5 Wakulla County. We're here today -- we received

6 late notice of this, unfortunately. We received

7 notice last Thursday. Though we had

8 participated in these proceedings extensively at

9 the trial level, at -- both at the land use and

10 the certification hearing, unfortunately we

11 didn't get notice till last Thursday by fax.

12 We've inquired as to why, and it was

13 suggested we didn't make a technical notice -- a

14 technical request for notice under this specific

15 section. But having participated, and having

16 made and filed written notices, and having not

17 received notice, troubles us a little bit. So

18 we scurried around to get someone here.

19 I'm here, Dr. Pope is here, and we're a

20 little bit -- maybe with a little more time,

21 we'd have been a little bit better prepared. So

22 with my comments, I just need to let the Cabinet

23 know about our concern with that.

24 We know this has been through the

25 administrative hearings, we know that. We've

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

84

1 filed proposed orders, we've filed exceptions.

2 There's been an order from Michael Ruff, the

3 Hearing Officer.

4 And notwithstanding that matter, we know

5 that there are some serious concerns that the

6 people in Wakulla County still have. They've

7 appeared at numerous, numerous public hearings

8 addressing those issues, and inquiring of the

9 County Commission, just what are you doing to

10 protect our concerns with the environment, the

11 air, the water, et cetera.

12 And so -- and as late as yesterday

13 afternoon, Dr. Pope received a fax letter from

14 Mayor Maddox, the City of Tallahassee,

15 suggesting to him the door's open, try to sit

16 down and work something out if we can continue

17 to look at your objections and resolve those,

18 both your environmental concerns, and in

19 addition, the financial issues, they'd be happy

20 to do that.

21 Maybe the thing to do is put this off for

22 two weeks, and let's address staff to try to do

23 that. Maybe at this point in time, we all know

24 that -- those of us that try cases, when you get

25 close, people get more serious to try to resolve

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

85

1 things. So maybe that's the thing -- something

2 the Cabinet ought to look at as well.

3 But -- and all along, let me suggest our

4 concerns have been of an environmental nature

5 from the very first correspondence with the City

6 of Tallahassee, as well as the financial

7 problem. And we all know what I'm talking


8 about, and that is that the power plant's in

9 Wakulla County, we can't impose ad valorem tax

10 by constitution. The only way you can change

11 that, according to the Supreme Court, is by

12 general legislation. And we know how popular

13 that is. Been several attempts through the

14 years, never gotten anywhere.

15 But some of the impacts we'd be concerned

16 about would be impacts on fire department, EMS,

17 technical support regarding spills that are

18 going to take place, roads, landfill, run-off

19 programs, hurricane evacuation support, and

20 other matters of that nature.

21 What's also important to note is that

22 although the citizens -- you know, recently I

23 was here arguing on behalf of a bunch of net

24 fishermen trying to salvage a way of life. And

25 we know the citizens voted to restrict some net

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

86

1 fishing due to a fear that those fishermen with

2 those small little 500 square foot nets were

3 going to somehow harm the fisheries, those

4 resources of the state of Florida.

5 Today we're here with State of Florida

6 considering to issue a permit to a power plant,

7 going to generate electricity at that facility

8 on the western shore of the river that creates

9 the western edge of the state of Florida

10 Big Bend Aquatic Sea Grass Preserve.

11 That Preserve is a one of a kind preserve,

12 a natural resource that provides sea grass

13 ecology necessary to the life cycle of both

14 commercial and recreational fishermen in an area

15 from Wakulla County, all the way down through

16 Cedar Island in Taylor County.

17 We're concerned with consistency and what

18 the government's doing to severely enforce or

19 stringently enforce protection of resource

20 matters on the one hand, yet look at this on the

21 other hand.

22 That somewhat concerns us. In addition,

23 we're concerned because the -- the proposed

24 elevation of this project down there on the

25 river in St. Marks is 12 feet above mean

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

87

1 sea level, which corresponds to the 100-year

2 floodplain elevation.

3 The Hurricane Surge Atlas for

4 Apalachicola Bay area indicates that the Purdom

5 site could experience a storm surge of 17.3 feet

6 in a Category 3 hurricane. And we can also --

7 when has there ever been one? It only takes

8 one, like the one in south Florida, and it

9 doesn't matter.

10 And all the programs in Wakulla County

11 since 1981 have been based on the required

12 building heights, required participation, and

13 the Federal flood insurance program as part of

14 FEMA.

15 And we know what'd happen if you grant the

16 variances that don't strictly construe and

17 enforce that law. You get suspended from the

18 program. We did that about ten years ago.

19 As a result, we got notices from the

20 Federal government that they were going to call

21 all the mortgages because the insurance had been

22 canceled. Imagine what that was going to do to

23 the County.

24 The storage tanks on the site again, are

25 only going to be 12.4 feet above mean

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

88

1 sea level. Even in a zone such as an A zone, a

2 flood zone, you have to flood proof. You can't

3 flood proof sufficiently storage tanks and

4 facility like the storage -- the Purdom facility

5 sufficiently to avoid serious problems in

6 event -- in the event of a flood; and the

7 spillage of those contaminants, toxins, and

8 other things.

9 Another important thing is -- is with the

10 fact that we do believe that there's a

11 requirement in the Comprehensive Plan that

12 you're supposed to reduce levels of emissions of

13 nitrogen oxide and sulfur under the

14 State Comprehensive Plan and Growth Act.

15 Two of those -- two of those pollutants,

16 sulfur oxide and nitrogen dioxide, clearly --

17 and the testimony hearings has proved -- are

18 going to form what's called sulfuric acid

19 plumes, acid rain clouds. It's going to rain

20 on -- all of it -- that part of the County.

21 The Federal program created by Congress

22 dealing with the prevention of significant

23 deterioration permitting process established

24 maximum allowable increases in pollutant

25 concentrations whenever you have a major

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

89

1 modification of a facility.

2 And when you have any of those new sources

3 or modifications, you have to apply, you must

4 use the best available control technology.

5 That's all out of the Federal law.

6 The emissions of carbon monoxide and

7 particulate matter, meaning from the stacks when

8 they boil the water, all that invisible dust you

9 can't see, will exceed the significant levels.

10 For example, testimony has shown, the

11 application shows, that the percentage of

12 sulfuric acid mist will increase by

13 288 percent.

14 (Commissioner Crawford exited the room.)

15 MR. MOWREY: There will be a 525 percent

16 increase in the ozone emissions. Particulate

17 matter will increase by 500 percent, carbon

18 monoxide by over 290 percent. Serious concerns

19 to the folks in Wakulla County, as opposed to

20 those in Leon County.

21 We think these clearly show, clearly

22 show -- and we can't ignore these -- significant

23 huge increases in the amount of toxins that are

24 going to be released into the air in

25 Wakulla County.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

90

1 The plant will produce a significant

2 sulfuric acid mist. And we don't need to talk

3 about what sulfuric acid will do in concentrates

4 on the ground, in the water, down into the

5 estuaries, and down into the grass where all the

6 species propagate.

7 The most stringent technology available

8 that could have been used for carbon dioxide,

9 which was use of an oxidation catalyst, was

10 rejected solely because of -- solely because of

11 cost.

12 That makes us think about the issue of

13 it's -- is it money over people? Maybe it is.

14 Because of the pollutants that are going to

15 be released in -- into the air.

16 And we know that there's a -- this machine

17 they intend to use, this GE contraption, is

18 brand new, been tested in laboratories, never

19 used commercially. And it's going to require

20 the use of both natural gas and -- and some

21 diesel fuel.

22 And the problem with that is if it doesn't

23 lower emissions of oxides and nitrogen --

24 (Commissioner Crawford entered the room.)

25 MR. MOWREY: -- as predicted in the

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

91

1 laboratory experiments, Wakulla County's going

2 to suffer. In effect, Wakulla County's going to

3 be the guinea pig for the commercial testing of

4 this type of combustion system.

5 The transmission lines are in poor

6 disrepair. Testimony is clear, they've got to

7 replace all the lines from St. Marks to

8 Tallahassee.

9 We suggested, fine, bury them. Bury them

10 because when you increase the electrical load

11 that's going to be carried, there's significant

12 problems about the electromagnetic fields and

13 potential health damage, health issues.

14 I suggest there was no testimony of any

15 kind presented by the City of Tallahassee as to

16 the potential medical effects of increasing the

17 size of those power lines. A significant,

18 significant problem.

19 A very important problem also is the

20 intention of, and the law, relative to using

21 State funds to improve this facility in the

22 coastal high hazard zone. Wakulla County's

23 charge, as every other county, under Chapter 163

24 of the Florida statutes, with ascertaining and

25 mapping the coastal high hazard within its

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

92

1 jurisdiction.

2 And all that determination is reviewed by

3 the Department of Community Affairs for

4 compliance with all applicable growth management

5 laws and rules. The County comp plan has found

6 to be in -- has been found in compliance with

7 the DCA and with the Growth Management Act.

8 The location of the proposed site is well

9 within the coastal high hazard zone in the

10 Comprehensive Plan. The problem with that is,

11 is it's inconsistent and it's a violation, we

12 believe, of Chapter 187 to use State funds

13 because it's provided that you should avoid the

14 expenditure of State funds that subsidize

15 development in coastal high hazard areas.

16 That's clearly what's proposed to increase

17 and expand why we at the same time are looking

18 at what we know are serious concerns the State

19 of Florida has with -- down with protecting

20 Wakulla Springs through the curtain matter in

21 the County and that property, and through land

22 use planning, and is a primary consideration

23 down there of all of us.

24 The pollution that will come from -- from

25 this site, meaning the Purdom site, with the

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

93

1 increasing it five times its size, will adjoin

2 with the water from Wakulla Springs and mix out

3 in the Gulf of Mexico.

4 And it's going to mix right there where the

5 Big Bend Aquatic Sea Grass Preserve is the major

6 area of food for the very fish we're trying to

7 protect for today's Floridians and future

8 Floridians.

9 So we'd suggest we have very serious

10 concerns with this. We suggested from day one,

11 the County -- there ought to be a meaningful

12 meeting between the County and the City to

13 suggest what can be done to minimize these

14 environmental concerns with these sulfuric acid

15 rain that we're going to experience, the other

16 issues with the -- this particulate dropping on

17 the ground, it's going to go in the land, on the

18 water, down out into the -- in the river. The

19 very rivers, the very resource we're trying to

20 protect.

21 We'd suggest, we'd ask you to -- very

22 seriously, continue this. We're not opposed to

23 it. We want it done right. We want it done

24 right.

25 We'd like you to put this off for

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

94

1 two weeks, direct that there'll be a meeting

2 between the City and the County, a serious

3 meeting, to resolve our concerns so we can

4 collectively, as neighboring governments, come

5 back before you united to advance this for the

6 citizens of all of Florida, and let's not just

7 have a Goliath run over David one more time.

8 Thank you.

9 Dr. Pope.

10 DR. POPE: Thank you. Appreciate it.

11 MR. MOWREY: Thank you.

12 GOVERNOR CHILES: Thank you.

13 MS. WETHERELL: I'll call on the

14 proponents, Anita Favors, the Tallahassee

15 City Manager.

16 MS. FAVORS: Good morning.

17 Governor Chiles and members of the Cabinet,

18 I'm pleased to be before you today to discuss

19 the City's Purdom Unit 8 project.

20 Mayor Scott Maddox is here with me today,

21 and also Mayor Chuck Shields with the City of

22 St. Marks is with us today.

23 The Siting Board is in a unique position

24 this morning in that you have the capacity to

25 review City's -- the City of Tallahassee's

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

95

1 proposal in your position as the ultimate

2 governmental permitting authority under the

3 Florida Plant Siting Act, and as heads of the

4 State agencies wherein you represent some of our

5 most significant utilities services customers.

6 Also, you all, for the most part, are also

7 residential customers of the City of

8 Tallahassee.

9 We consider this to be a very important

10 project for the City of Tallahassee, and for the

11 persons to whom we wish to continue to provide

12 reliable and efficient service.

13 Demand for electricity has continued to

14 grow over the years, both here and elsewhere in

15 the southeastern United States.

16 In May of 2000, the contract the City of

17 Tallahassee has for its power supply with the

18 Southern Company will expire. And by then, we

19 must have new generating capacity, or purchase

20 electricity from other entities.

21 Recognizing this, and following up with a

22 plan to utilize the competitive process with

23 citizen and customer involvement, the project

24 before you has identified -- has been identified

25 by the City of Tallahassee as being the most

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

96

1 cost effective alternative to meet Tallahassee's

2 future needs.

3 The Public Service Commission confirmed

4 this determination in 1997. The City went a

5 step further and commissioned an independent

6 study that was completed earlier this year, a

7 market study.

8 This study affirmed again that this project

9 is the most cost-effective project for the

10 City's customers.

11 Tallahassee's proposal is a state of the

12 art natural gas plant with low sulphur oil as an

13 alternative fuel, and includes a zero discharge

14 wastewater reuse system that will protect the

15 quality of the environment, including the

16 St. Marks River; and eliminate the need for

17 fresh groundwater that Tallahassee currently

18 utilizes.

19 The new unit is located at the City's

20 Purdom generating station that has existed

21 without significant problems in the City of

22 St. Marks for over 46 years.

23 St. Marks Mayor, Chuck Shields, is here to

24 provide the perspective of that organization,

25 and he will speak to the issue of our

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

97

1 outstanding working relationship.

2 We have a very cooperative and productive

3 relationship with the City of St. Marks, and

4 have worked with them to assure environmental

5 benefits for their city in the area of improved

6 emissions and effluent disposal.

7 As an example, Tallahassee has dedicated

8 approximately 7 million dollars in capital

9 costs, and 1 million dollars in annual operating

10 costs, for environmental betterment that is not

11 required under the applicable rules.

12 Tallahassee has implemented a strong public

13 outreach program in conjunction with the

14 permitting process. In all of the public

15 hearings and meetings, no environmental group,

16 and only two private citizens, have spoken in

17 opposition to this project.

18 All Federal, State, and regional agencies

19 have found our proposal to be acceptable.

20 Again, the City of St. Marks, the local

21 government, with direct regulatory jurisdiction,

22 is strongly supportive.

23 The Wakulla County Commission has voiced

24 opposition, but neither the regulatory agencies

25 nor the Administrative Law Judge have found

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

98

1 legal or factual merit in their objections.

2 Tallahassee is very proud of our proposed

3 project. We have implemented a good neighbor

4 policy, and we view the Purdom 8 project as a

5 critical component of our strategy for electric

6 competition, which we want to result in both

7 competitive electric power rates for our

8 customers, and environmental improvement for the

9 Wakulla County community.

10 We thank you for your attention, and urge

11 your approval of the staff recommendation.

12 Our chief hydrologist and air specialist is

13 here -- both of them are here today to answer

14 any questions that you might have relative to

15 the environmental issues that have been

16 presented this morning.

17 And, as I said, Mayor Scott Maddox is here

18 for any questions that you might have on other

19 issues.

20 And at this time, I would like to introduce

21 Mayor Chuck Shields, who would like to speak for

22 the City of St. Marks.

23 Thank you very much.

24 GOVERNOR CHILES: Yes, sir.

25 MR. SHIELDS: Governor and Cabinet members,

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

99

1 I'm Chuck Shields, Mayor of St. Marks, Florida.

2 I'm pleased to be here to provide for you

3 the City of St. Marks' perspective to the Purdom

4 power plant expansion.

5 First of all, the City of Tallahassee has

6 been very open with us, they have invited us to

7 every meeting that has any related dealings with

8 the City of St. Marks. This -- this project

9 will be a very financial improvement to our

10 community.


11 Several years ago, I was before this same

12 Cabinet -- a few people removed -- but seeking a

13 submerged land lease to discharge effluent from

14 the wastewater treatment plant in the City of

15 St. Marks. This was a highly controversial

16 issue. We spent many hours trying to resolve

17 this program -- this problem.

18 And one of the stipulations that this Board

19 asked us to do was to seek an alternate source

20 of discharge.

21 The City of Tallahassee, if this project

22 goes through, has agreed to take all of our

23 water -- wastewater, which would be a treated

24 water, to use as cooling water for their

25 towers.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

100

1 They've also obligated themselves to take

2 care of our future needs.

3 This is in -- no cost to the City of

4 St. Marks. They're putting in all the

5 infrastructure for the lines, the pump station.

6 We will only be asked to maintain the utilities

7 to operate this facility.

8 They're also financially contributing to

9 our upgrade on our water system. They're

10 allowing us to use their 100,000 gallon water

11 tower that they have in place at the Purdom

12 power plant. That will double the capacity of

13 the cities for consumption of water, as well as

14 for fire power.

15 This is going to be a very positive issue

16 for the City of St. Marks.

17 The City of St. Marks appreciates the

18 thorough review that DEP and other regulatory

19 authorities has taken on this matter, making

20 sure that the air quality and the water quality

21 is -- is meeting all the standards of the State.

22 I would like to present you copies of a

23 resolution that was adopted April the 9th by our

24 City Commission, unanimously approved. Also we

25 have other Commissioners in the audience

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

101

1 tonight -- today voicing their moral support for

2 this project.

3 Thank you for listening to me, and urge

4 approval of staff recommendations.

5 Thank you.

6 GOVERNOR CHILES: Thank you, sir.

7 TREASURER NELSON: May I ask a question?

8 GOVERNOR CHILES: Do you have further

9 speakers?

10 Question.

11 MS. WETHERELL: That concludes the

12 speakers.

13 GOVERNOR CHILES: All right.

14 TREASURER NELSON: Would someone from the

15 City answer a couple of questions for me. From

16 the City of Tallahassee.

17 What I'd like to know -- I understand the

18 issue before us on this final order for you as

19 the City of Tallahassee to replace boilers. But

20 I'm curious, is there a companion issue here,

21 and how does it fit in on the question of

22 whether or not this ought to be operated by the

23 City, or whether or not you ought to put this

24 out for bid in the private sector.

25 Does that -- and how does that, for the

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

102

1 record, affect this issue going ahead by the

2 replacing of those old boilers with this new

3 kind of technology?

4 MR. SAMS: My name is Gary Sams. I'm the

5 attorney who represented the City in the

6 licensing.

7 I may not be the ideal person to answer

8 your question, but I'll take a stab at it. And

9 if others from the City would like to add to it,

10 they may.

11 Basically, under all scenarios that the

12 City has studied regarding sale, retaining the

13 utility, forming an authority, all the things

14 that you're aware in general that they have been

15 looking at, Purdom Unit 8 greatly improves the

16 efficiency of the system; it meets the required

17 needs; and, in fact, is necessary in part, to

18 avoid having to develop new transmission lines

19 into this area that would present environmental

20 issues of other kinds.

21 In other words, this will, under any

22 envisionable scenario, be built. And I don't

23 think there is anything that has been identified

24 that would cause it not to be built. That's why

25 the project is proceeding.

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

103

1 TREASURER NELSON: Okay. So I understand

2 what you've done is a recitation of the position

3 of the City with regard to this issue before us

4 now.

5 Are you saying then, since you did not say

6 that there is any kind of influence over the

7 question of whether it be operated by the City

8 or whether it be put out to bid in the private

9 sector, how does that issue play?

10 Mr. Mayor, how does that issue play in

11 here?

12 MR. MADDOX: Thank you, Commissioner,

13 Governor, Cabinet members.

14 We -- it's -- currently the City Commission

15 has looked at several options, one of which is a

16 sale option; and they will look at the possible

17 sale of generation and transmission, or parts of

18 that; as well as many other issues such as

19 utility authority, partnering with the private

20 sector, or keeping the status quo, implementing

21 a fire fee.

22 So it's really in the formative stages on

23 the City Commission's agenda.

24 The plant, Purdom 8, that's being built,

25 of course, is much better environmentally and

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

104

1 efficient-wise than the current equipment that

2 is there today. That actual plant was put out

3 to bid to the private sector, and we had a

4 self-bid alternative that bid against the

5 private sector, and we were much cheaper and

6 better environmentally, so we chose our own bid.

7 It will have no effect over whether or not

8 we make a decision to sell the system or not.

9 In my opinion, it will simply be a greater asset

10 to whoever buys the system, if that is a

11 decision that -- that we make.

12 And it'll be better for the citizens,

13 because you will have a much better

14 environmental plant for the new owners, should

15 the City make that decision. It would be better

16 also for the local jurisdictions because they

17 would be paying taxes in those areas.

18 But I don't think one has anything to do

19 with the other. This is simply a retooling

20 of -- of a current plan.

21 TREASURER NELSON: Thank you.

22 GOVERNOR CHILES: What's your pleasure?

23 SECRETARY MORTHAM: Move approval.

24 ATTORNEY GENERAL BUTTERWORTH: May I ask a

25 question --

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

105

1 GOVERNOR CHILES: All right. Staff

2 recommendation has been approved.

3 ATTORNEY GENERAL BUTTERWORTH: That's a

4 substitute though, right?

5 GOVERNOR CHILES: Pardon?

6 ATTORNEY GENERAL BUTTERWORTH: It's a

7 substitute that's up, right? It's a substitute

8 proposal --

9 MR. ODOM: Yes.

10 MS. WETHERELL: Yes.

11 ATTORNEY GENERAL BUTTERWORTH: -- which

12 means that they cannot --

13 MS. WETHERELL: Substitute Item 2.

14 ATTORNEY GENERAL BUTTERWORTH: Right.

15 They cannot change fuel without coming back

16 to us.

17 MR. ODOM: Right.

18 GOVERNOR CHILES: All right.

19 MS. WETHERELL: Yes.

20 GOVERNOR CHILES: All right. Conceptual

21 approval.

22 ATTORNEY GENERAL BUTTERWORTH: No, not

23 conceptual.

24 GOVERNOR CHILES: Pardon?

25 ATTORNEY GENERAL BUTTERWORTH: Is it

ACCURATE STENOTYPE REPORTERS, INC.

DEPARTMENT OF ENVIRONMENTAL PROTECTION SITING BOARD

April 28, 1998

106

1 conceptual?

2 GOVERNOR CHILES: I don't know. I'm trying

3 to -- you said --

4 ATTORNEY GENERAL BUTTERWORTH: No. No.

5 I -- no, the substitute amendment, right.

6 GOVERNOR CHILES: Substitute amendment.

7 All right. It's been moved.

8 Is there a second?

9 COMMISSIONER CRAWFORD: Second.

10 GOVERNOR CHILES: Second.

11 So many as favor the amendment, signify by

12 saying aye.

13 THE CABINET: Aye.

14 GOVERNOR CHILES: Opposed, no.

15 Approved.

16 MS. WETHERELL: Thank you.

17 GOVERNOR CHILES: Yes, sir.

18 (The Department of Environmental Approval

19 Siting Board Agenda was concluded.)

20 *

21 (The Cabinet meeting was concluded at

22 11:54 a.m.)

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.

April 28, 1998

107

1 CERTIFICATE OF REPORTER

2

3

4 STATE OF FLORIDA:

5 COUNTY OF LEON:

6 I, LAURIE L. GILBERT, do hereby certify that

7 the foregoing proceedings were taken before me at the

8 time and place therein designated; that my shorthand

9 notes were thereafter translated; and the foregoing

10 pages numbered 1 through 106 are a true and correct

11 record of the aforesaid proceedings.

12 I FURTHER CERTIFY that I am not a relative,

13 employee, attorney or counsel of any of the parties,

14 nor relative or employee of such attorney or counsel,

15 or financially interested in the foregoing action.

16 DATED THIS 5TH day of MAY, 1998.

17

18

19 LAURIE L. GILBERT, RPR, CCR, CRR

100 Salem Court

20 Tallahassee, Florida 32301

850/878-2221

21

22

23

24

25

ACCURATE STENOTYPE REPORTERS, INC.