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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 FINANCIAL MANAGEMENT INFORMATION BOARD 8 ADMINISTRATION COMMISSION MARINE FISHERIES COMMISSION 9 BOARD OF TRUSTEES, INTERNAL IMPROVEMENT TRUST FUND
10 The above agencies came to be heard before 11 THE FLORIDA CABINET, Honorable Governor Chiles presiding, in the Cabinet Meeting Room, LL-03, 12 The Capitol, Tallahassee, Florida, on Tuesday, October 13, 1998, commencing at approximately 13 9:49 a.m.
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15 Reported by:
16 LAURIE L. GILBERT Registered Professional Reporter 17 Certified Court Reporter Certified Realtime Reporter 18 Notary Public in and for the State of Florida at Large 19
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22 ACCURATE STENOTYPE REPORTERS, INC. 100 SALEM COURT 23 TALLAHASSEE, FLORIDA 32301 850/878-2221 24
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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
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ACCURATE STENOTYPE REPORTERS, INC.
October 13, 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 5 2 Approved 5 6 3 Approved 6 4 Approved 6 7 5 Approved 9
8 DIVISION OF BOND FINANCE: (Presented by J. Ben Watkins, III, 9 Director)
10 1 Approved 12 2 Approved 12 11 3 Approved 13 4 Approved 13 12 FINANCIAL MANAGEMENT INFORMATION BOARD: 13 (Presented by Martin Young, Secretary) 14 1 Approved 14 15 2 Approved 14
16 ADMINISTRATION COMMISSION: (Presented by Robert B. Bradley, Ph.D., 17 Secretary)
18 1 Approved 15 2 Approved 15 19 3 Approved 16 4 Approved 16 20 5 Approved 16 6 Approved 17 21
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ACCURATE STENOTYPE REPORTERS, INC.
October 13, 1998 4
1 I N D E X (Continued) 2 ITEM ACTION PAGE 3 MARINE FISHERIES COMMISSION: 4 (Presented by Russell S. Nelson, Ph.D., Executive Director) 5 A Approved 18 6 B Approved 18 C Approved 18 7 D Approved 19 E Approved 19 8 BOARD OF TRUSTEES OF THE 9 INTERNAL IMPROVEMENT TRUST FUND: 10 (Presented by Virginia B. Wetherell, Secretary) 11 1 Approved 20 12 2 Approved 20 3 Approved 20 13 Substitute 4 Approved 21 5 Approved 21 14 6 Approved 21 7 Approved 21 15 8 Approved 22 9 Approved 29 16 Substitute 10 Approved 28 11 Denied 31 17 12 Approved 33 13 Approved 34 18 CERTIFICATE OF REPORTER 36 19 * 20
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ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION October 13, 1998 5
1 P R O C E E D I N G S
2 (The agenda items commenced at 10:24 a.m.)
3 GOVERNOR CHILES: State Board of
4 Administration.
5 MR. HERNDON: Item number 1 on the agenda
6 this morning is the adoption of the minutes of
7 the meeting held on September 23rd, 1998.
8 COMPTROLLER MILLIGAN: Move the minutes.
9 TREASURER NELSON: Second.
10 GOVERNOR CHILES: Moved and seconded.
11 Without objection, the minutes are
12 accepted.
13 MR. HERNDON: Item number 2 is approval of
14 a fiscal determination of an amount not
15 exceeding eighteen million dollars to the
16 Florida Housing Finance Corporation Housing
17 Revenue Bonds, 1998 series.
18 TREASURER NELSON: Move it.
19 COMPTROLLER MILLIGAN: And second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, it's approved.
22 MR. HERNDON: Item number 3 is approval of
23 a fiscal determination of an amount not
24 exceeding seventeen million five hundred and
25 sixty-five thousand dollars for the Florida
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION October 13, 1998 6
1 Housing Finance Corporation Housing Revenue
2 Bonds, 1998 series.
3 COMPTROLLER MILLIGAN: Move it.
4 TREASURER NELSON: Second.
5 GOVERNOR CHILES: Moved and seconded.
6 Without objection, that's approved.
7 MR. HERNDON: Item number 4 is approval of
8 a fiscal determination of an amount not
9 exceeding thirteen million six hundred and
10 sixty thousand dollars for the Florida --
11 Florida Housing Finance Corporation Housing
12 Revenue Bonds, also 1998 series.
13 COMPTROLLER MILLIGAN: Move Item 4.
14 TREASURER NELSON: And second.
15 GOVERNOR CHILES: Moved and seconded.
16 Without objection, Item 4 is adopted.
17 MR. HERNDON: Item number 5 is reports by
18 the Executive Director of the Investment
19 Performance and Fund Balance Analysis for the
20 month of August 1998.
21 TREASURER NELSON: And before I move that,
22 I'd like to ask, Governor, if I might, give us
23 an update on where we are and what the outlook
24 appears to be.
25 MR. HERNDON: For the balance of the Fund?
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STATE BOARD OF ADMINISTRATION October 13, 1998 7
1 TREASURER NELSON: Yes, sir.
2 MR. HERNDON: Okay.
3 Well, as you know, performance for the last
4 several years has been very strong.
5 Unfortunately the equity market in particular,
6 and the international equity market in addition,
7 have both experienced substantial correction in
8 the period from July 17th, which was the peak of
9 the high in the U.S. equity market until today.
10 At the close of business on Friday, the
11 market had -- fell, depending on the index that
12 you like to use, whether it's the Dow Jones
13 industrial average, or the S&P 500, or our own
14 particular benchmark, anywhere from
15 twelve-and-a-half to 13 percent, to something on
16 the order of 17 percent in the U.S. equity
17 market.
18 Internationally, of course, equity markets
19 have suffered an even more substantial decrease,
20 at some points, as much as 30 percent in some of
21 the emerging markets.
22 We haven't been immune to those losses.
23 And the portfolio of the Board has decreased in
24 value approximately 12.73 percent. Now, that's
25 in contrast to the Dow Jones industrial average,
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION October 13, 1998 8
1 for example, which lost 15.4 percent; or the
2 S&P 500, which lost 17 percent.
3 But, as you know, we're a very diversified
4 fund, so we have our own tailored benchmark
5 against which we measure performance. And that
6 benchmark is a weighted average, if you will, of
7 the other benchmarks, and -- so in that regard,
8 looking at our own specific performance index,
9 we have suffered less than our performance index
10 would have led you to believe.
11 For example, our total fund benchmark
12 return fell by 12.95 percent. We fell by
13 12.73 percent. It's a fairly small difference,
14 22 basis points. But that's very significant on
15 a fund our size.
16 And that's one of those unfortunate
17 situations where we've all suffered from the
18 market correction, but we've suffered less than
19 our benchmark would have led you to believe.
20 We are optimistic about the market in the
21 long run. As you know, Commissioner, we're
22 long-term investors. We're here for the long
23 pull.
24 And, in fact, over the course of the last
25 three months, we have been employing the
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STATE BOARD OF ADMINISTRATION October 13, 1998 9
1 discipline that the Board has adopted for us by
2 rebalancing against our various benchmarks. We
3 have been taking advantage of a very substantial
4 market on the bond side, on the fixed income
5 side, and have moved monies out of the bond
6 market to try and capture what we believe is
7 that long-term incremental gain in the equity
8 market.
9 And we've seen, coincidentally, frankly,
10 some very nice results as a consequence of those
11 rebalancings. But, again, we're here for many,
12 many years, and we anticipate that that will
13 serve us well.
14 TREASURER NELSON: Thank you.
15 GOVERNOR CHILES: Thank you, sir.
16 MR. HERNDON: Governor, if I might --
17 GOVERNOR CHILES: Do you so move?
18 TREASURER NELSON: Move it.
19 GOVERNOR CHILES: It's moved.
20 COMPTROLLER MILLIGAN: Second.
21 MR. HERNDON: Governor --
22 GOVERNOR CHILES: And seconded.
23 Without objection, it's adopted.
24 Yes, sir.
25 MR. HERNDON: With your leave, I might add
ACCURATE STENOTYPE REPORTERS, INC.
STATE BOARD OF ADMINISTRATION October 13, 1998 10
1 just a couple of comments to -- as a postscript
2 to my comments last meeting about the Cat Fund
3 and our --
4 GOVERNOR CHILES: Yes, sir.
5 MR. HERNDON: -- anticipated experience as
6 a result of Hurricane Georges.
7 We hope to have by the end of this week the
8 first preliminary claim information from the
9 various companies writing property and casualty
10 insurance in the state. As a matter of fact,
11 the first preliminary estimates are due on
12 October 15th.
13 And those are still preliminary, and we
14 anticipate that there will be some last minute
15 revisions.
16 But as it looks right now, there appears to
17 be a small chance that we will have some
18 disbursements out of the Cat Fund for a few
19 companies. We're -- we're not absolutely
20 certain, and we won't be absolutely certain
21 until December 31st when we get the final
22 figures in, which is when the companies are
23 required to report to us. But we don't
24 anticipate more than a few million dollars.
25 As you recall, even in Erin and Opal, which
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STATE BOARD OF ADMINISTRATION October 13, 1998 11
1 had cumulatively less damage in some regards,
2 the Cat Fund did have to disburse a few million
3 dollars for both of those storms.
4 So we're optimistic, the Cat Fund is
5 sitting on two-and-a-half billion dollars worth
6 of cash. Of course, it's all invested. But we
7 do anticipate that there may be a slight
8 disbursement out of that fund.
9 And as soon as we get that information on
10 the 15th, we -- it'll take us a few days to
11 digest what we get, and then we'll get a report
12 to each of you as to what the preliminary
13 numbers forecast are.
14 GOVERNOR CHILES: Thank you, sir.
15 MR. HERNDON: Thank you.
16 (The State Board of Administration Agenda
17 was concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE October 13, 1998 12
1 GOVERNOR CHILES: Division of
2 Bond Finance.
3 COMPTROLLER MILLIGAN: Hello, Ben.
4 MR. WATKINS: Item number 1 is approval of
5 the minutes of the September --
6 COMMISSIONER BROGAN: Move the minutes.
7 MR. WATKINS: -- 23rd meeting.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, minutes are approved.
11 MR. WATKINS: Item number 2 is a report of
12 award on the competitive sale of two hundred and
13 twenty million three hundred seventy thousand
14 dollars of PECO refunding bonds.
15 COMMISSIONER BROGAN: Move approval.
16 COMPTROLLER MILLIGAN: Second.
17 SECRETARY MORTHAM: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, it's approved.
20 MR. WATKINS: Item number 3 is a report of
21 award of the -- on the competitive sale of
22 forty-five million six hundred eighty thousand
23 dollars of Florida facilities pool revenue
24 bonds.
25 COMMISSIONER BROGAN: Move the item.
ACCURATE STENOTYPE REPORTERS, INC.
DIVISION OF BOND FINANCE October 13, 1998 13
1 SECRETARY MORTHAM: Second.
2 GOVERNOR CHILES: Moved and seconded.
3 Without objection, it's approved.
4 MR. WATKINS: Item number 4 is adoption of
5 a resolution authorizing the redemption prior to
6 maturity of State of Florida Madison County road
7 bonds.
8 COMMISSIONER BROGAN: I'll move the
9 adoption of the resolution.
10 SECRETARY MORTHAM: Second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, Item 4 is approved.
13 MR. WATKINS: Thank you.
14 GOVERNOR CHILES: Thank you, sir.
15 (The Division of Bond Finance Agenda was
16 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
FINANCIAL MANAGEMENT INFORMATION BOARD October 13, 1998 14
1 GOVERNOR CHILES: Financial Management
2 Information Board.
3 MR. YOUNG: Item 1 is the approval of the
4 minutes for June 9th, 1998, meeting.
5 COMPTROLLER MILLIGAN: Move the minutes.
6 SECRETARY MORTHAM: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, the minutes are
9 approved.
10 MR. YOUNG: Item 2 is -- of the FFMIS
11 Strategic Plan.
12 TREASURER NELSON: Move it.
13 COMPTROLLER MILLIGAN: And second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, Item 2 is approved.
16 MR. YOUNG: That concludes the agenda.
17 Thank you.
18 GOVERNOR CHILES: Thank you, sir.
19 (The Financial Management Information Board
20 Agenda was concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
ADMINISTRATION COMMISSION October 13, 1998 15
1 GOVERNOR CHILES:
2 Administration Commission.
3 DR. BRADLEY: Item number 1, recommend
4 approval of the minutes for the meeting --
5 COMMISSIONER BROGAN: Move the minutes.
6 DR. BRADLEY: -- held September --
7 GOVERNOR CHILES: Moved and --
8 DR. BRADLEY: -- 23rd --
9 GOVERNOR CHILES: -- seconded.
10 Is there a second?
11 SECRETARY MORTHAM: Second.
12 GOVERNOR CHILES: Second.
13 Without objection, it's approved.
14 DR. BRADLEY: Item number 2 is recommend
15 approval of the transfer of general revenue
16 appropriations for the Department of Children
17 and Families.
18 COMMISSIONER BROGAN: Move the item.
19 SECRETARY MORTHAM: Second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, that's approved.
22 DR. BRADLEY: Item number 3, recommend
23 approval of the transfer of general revenue
24 appropriations for the Florida Game and Fresh
25 Water Fish Commission.
ACCURATE STENOTYPE REPORTERS, INC.
ADMINISTRATION COMMISSION October 13, 1998 16
1 SECRETARY MORTHAM: Move it.
2 COMMISSIONER BROGAN: Second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, that's approved.
5 DR. BRADLEY: Item number 4 is recommend
6 approval of the transfer of general revenue
7 appropriations in the Department of
8 Juvenile Justice.
9 SECRETARY MORTHAM: Move it.
10 COMMISSIONER BROGAN: Second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, that's approved.
13 DR. BRADLEY: Item number 5, recommend
14 approval of the transfer of general revenue
15 appropriations for the Department of State.
16 SECRETARY MORTHAM: Move it.
17 COMMISSIONER BROGAN: Second.
18 GOVERNOR CHILES: Moved and seconded.
19 Without objection, Item 5 is approved.
20 DR. BRADLEY: Item number 6, recommend
21 approval of the transfer of general revenue
22 appropriations for the Department of Legal
23 Affairs.
24 SECRETARY MORTHAM: Move it.
25 COMMISSIONER BROGAN: Move approval.
ACCURATE STENOTYPE REPORTERS, INC.
ADMINISTRATION COMMISSION October 13, 1998 17
1 GOVERNOR CHILES: Moved and seconded.
2 Without objection, Item 6 is approved.
3 DR. BRADLEY: That concludes the agenda.
4 GOVERNOR CHILES: Thank you, sir.
5 (The Administration Commission Agenda was
6 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
MARINE FISHERIES COMMISSION October 13, 1998 18
1 GOVERNOR CHILES: Marine Fisheries
2 Commission.
3 DR. NELSON: Good morning.
4 Item A on the agenda is a bait fish
5 permitting rule for the Florida Keys Marine
6 Sanctuary.
7 COMMISSIONER BROGAN: Move approval.
8 SECRETARY MORTHAM: Second.
9 GOVERNOR CHILES: Moved and seconded.
10 Without objection, it's approved.
11 DR. NELSON: Item B is a rule conforming to
12 the Federal recreational season closure for
13 red snapper in the Gulf of Mexico.
14 SECRETARY MORTHAM: Move approval.
15 COMMISSIONER BROGAN: Second.
16 GOVERNOR CHILES: Moved and seconded.
17 Without objection, its approved.
18 DR. NELSON: Item C is a revision to the
19 tarpon tag rule.
20 SECRETARY MORTHAM: Move approval.
21 COMMISSIONER BROGAN: Second.
22 GOVERNOR CHILES: Moved and seconded.
23 Without objection, Item C is approved.
24 DR. NELSON: Item D is an extension of the
25 southeast Florida seasonal shrimp trawl closure.
ACCURATE STENOTYPE REPORTERS, INC.
MARINE FISHERIES COMMISSION October 13, 1998 19
1 SECRETARY MORTHAM: Move approval.
2 ATTORNEY GENERAL BUTTERWORTH: Second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, Item D is approved.
5 DR. NELSON: And Item E is a revision to
6 the mullet regulations instituting restricted
7 species status for mullet in the panhandle
8 region.
9 SECRETARY MORTHAM: Move approval.
10 COMMISSIONER BROGAN: Second.
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, the item is approved.
13 DR. NELSON: Thank you.
14 GOVERNOR CHILES: Thank you, sir.
15 (The Marine Fisheries Commission Agenda was
16 concluded.)
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ACCURATE STENOTYPE REPORTERS, INC.
BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 20
1 GOVERNOR CHILES: Board of Trustees.
2 MS. WETHERELL: Item 1 is an option
3 agreement for Belle Meade CARL project and a
4 waiver of survey.
5 COMMISSIONER BROGAN: Move approval.
6 SECRETARY MORTHAM: Second.
7 GOVERNOR CHILES: Moved and seconded.
8 Without objection, Item 1 is approved.
9 MS. WETHERELL: Item 2, three purchase
10 agreements for Cayo Costa CARL project and a
11 waiver of survey.
12 COMMISSIONER BROGAN: Move approval.
13 SECRETARY MORTHAM: Second.
14 GOVERNOR CHILES: Moved and seconded.
15 Without objection, Item 2 is approved.
16 MS. WETHERELL: Item 3 is an option
17 agreement for Dade County Archipelago project.
18 COMMISSIONER BROGAN: Move approval.
19 COMPTROLLER MILLIGAN: Second.
20 GOVERNOR CHILES: Moved and seconded.
21 Without objection, Item 3 is approved.
22 MS. WETHERELL: Substitute Item 4, eight
23 option/purchase agreements for
24 Corkscrew Ecosystem CARL project.
25 COMMISSIONER BROGAN: Move the item.
ACCURATE STENOTYPE REPORTERS, INC.
BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 21
1 SECRETARY MORTHAM: Second.
2 COMPTROLLER MILLIGAN: Second.
3 GOVERNOR CHILES: Moved and seconded.
4 Without objection, Item 4 is approved.
5 MS. WETHERELL: Item 5, an option agreement
6 for Shell Island Recreation and Parks Addition
7 and a waiver of survey.
8 COMMISSIONER BROGAN: Move approval.
9 SECRETARY MORTHAM: Second.
10 GOVERNOR CHILES: Moved and seconded.
11 Without objection, Item 5 is approved.
12 MS. WETHERELL: Item 6 is an option
13 agreement for Tomoka River Recreation and Parks
14 Addition and a waiver of survey.
15 SECRETARY MORTHAM: Move approval.
16 COMMISSIONER BROGAN: Second.
17 GOVERNOR CHILES: Moved and seconded.
18 Without objection, Item 6 is approved.
19 MS. WETHERELL: Item 7 is a purchase
20 agreement for Cape Romano Barrier Island project
21 and a waiver of survey.
22 COMMISSIONER BROGAN: Move approval.
23 ATTORNEY GENERAL BUTTERWORTH: Second.
24 GOVERNOR CHILES: Moved and seconded.
25 Without objection, Item 7 is approved.
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BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 22
1 MS. WETHERELL: Item 8 is a purchase
2 agreement for the Department of Transportation.
3 ATTORNEY GENERAL BUTTERWORTH: Motion.
4 SECRETARY MORTHAM: Move approval.
5 ATTORNEY GENERAL BUTTERWORTH: Second.
6 GOVERNOR CHILES: Moved and seconded.
7 Without objection, it's approved.
8 MS. WETHERELL: Item 9 is modification of a
9 sovereign submerged land lease.
10 ATTORNEY GENERAL BUTTERWORTH: Governor, I
11 have a comment here if I can, first.
12 GOVERNOR CHILES: Yes, sir.
13 ATTORNEY GENERAL BUTTERWORTH: It's my
14 understanding that the applicant for this SSL
15 lease extension is a subsidiary of Avatar,
16 Incorporated, with whom we are doing a purchase
17 agreement on a following agenda item,
18 Number 10.
19 The applicant has -- the applicant has
20 inserted a clause into the Golden Gate purchase
21 agreement requiring the Board of Trustees to
22 grant their application to this extended lease
23 as a condition precedent to the acquisition of
24 their property.
25 I do not believe it is in the best interest
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BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 23
1 of the public to address both these issues as
2 connected to one another.
3 I believe the Governor and the Cabinet
4 should vote on these items independently, and on
5 their own merit. I personally believe that both
6 of them stand on their own merit, and should be
7 able to be handled that way.
8 Therefore, Governor, I would request that
9 we TP Item 9, take up Item 10.
10 In the Item 10 issue, I will then move to
11 strike the condition precedent language from the
12 Golden Gate purchase agreement, then we can go
13 back to -- to Item Number 9.
14 GOVERNOR CHILES: All right. Without
15 objection, we'll take up Item 10.
16 MS. WETHERELL: All right. Substitute
17 Item 10 is a purchase agreement for Save Our
18 Everglades CARL project and a waiver of survey.
19 SECRETARY MORTHAM: Move approval.
20 ATTORNEY GENERAL BUTTERWORTH: Second.
21 COMMISSIONER CRAWFORD: Second.
22 GOVERNOR CHILES: Moved and seconded.
23 ATTORNEY GENERAL BUTTERWORTH: I would like
24 amen--
25 GOVERNOR CHILES: With your amendment --
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BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 24
1 ATTORNEY GENERAL BUTTERWORTH: I --
2 GOVERNOR CHILES: -- to strike --
3 ATTORNEY GENERAL BUTTERWORTH: Is that
4 motion with my amendment then, Governor?
5 GOVERNOR CHILES: Yes, sir.
6 ATTORNEY GENERAL BUTTERWORTH: Okay.
7 GOVERNOR CHILES: With --
8 MS. WETHERELL: And we --
9 GOVERNOR CHILES: -- your amendment.
10 MS. WETHERELL: -- we do have one speaker,
11 David Guggenheim from the Conservancy of
12 Southwest Florida traveled up here and wants to
13 speak briefly to you --
14 GOVERNOR CHILES: All right.
15 MS. WETHERELL: -- on this item.
16 MR. GUGGENHEIM: Good morning.
17 For the record, my name is
18 David Guggenheim. I'm President and CEO of the
19 Conservancy of Southwest Florida based in
20 Naples. We are southwest Florida's leading
21 conservation organization, now in its 35th year.
22 We have -- I am speaking on behalf of our
23 5500 members, and 675 volunteers.
24 I'm also the Florida Cochair of the
25 Everglades Coalition.
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BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 25
1 We respectfully urge you to approve the
2 State's purchase of the environmentally
3 sensitive lands in South Golden Gate Estates
4 from Avatar Properties.
5 This purchase agreement is the culmination
6 of more than a year-and-a-half of negotiations,
7 and will bring public ownership of
8 South Golden Gate Estates up to nearly
9 75 percent, a dramatic step forward for this
10 project.
11 Without the Avatar acquisition, the
12 restoration of South Golden Gate Estates cannot,
13 and will not, succeed.
14 It is important that you understand just
15 how important this restoration is to the
16 citizens of southwest Florida, and all
17 Floridians, who will benefit tremendously when
18 South Golden Gate Estates becomes a permanently
19 protected environmental and recreational
20 resource, Picayune Strand State Forest.
21 South Golden Gate Estates connects
22 Big Cypress National Preserve and the
23 Fakahatchee Strand to the Ten Thousand Islands
24 National Wildlife Refuge. This acquisition will
25 allow historic water flows to be restored,
ACCURATE STENOTYPE REPORTERS, INC.
BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 26
1 helping wildlife, plant, and nearshore species
2 to recover.
3 On each day that passes without this
4 restoration, more than 400 million gallons of
5 freshwater, which once made its way gradually as
6 sheet flow over South Golden Gate Estates, is
7 diverted to the Faka Union Canal, inundating
8 parts of the Ten Thousand Islands with too much
9 freshwater, while other parts are starved for
10 too little freshwater.
11 This has had a devastating impact on the
12 local estuarine environments.
13 As Secretary Wetherell completes this, her
14 last Cabinet meeting, I think she can be very
15 proud of the new life she gave to the
16 South Golden Gate Estates project. And -- and
17 for that, we are very, very grateful.
18 We owe thanks to Secretary Wetherell,
19 Kirby Green, Pete Mallison, Ed Kuester,
20 Mike Ashey, and the others who have really
21 given this project focus and a businesslike
22 approach.
23 They have earned tremendous respect and
24 support from local leaders, including local
25 government leaders, in southwest Florida by
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BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND October 13, 1998 27
1 putting this program on track, demonstrating
2 results, and restoring confidence in government
3 to get the job done.
4 I have letters, and I hope you have
5 received copies of these letters from various
6 government representatives in southwest Florida,
7 including Chairman Berry of the Collier County
8 Commission; Commissioner Ray Judah from the
9 Lee County Commission; Representative-Elect
10 Dudley Goodlette; and Senator-Elect,
11 Burt Saunders, all speaking in favor of -- of
12 this acquisition.
13 I believe you've also received upwards of
14 200 phone calls, and between 50 and 100 faxes
15 and letters on this item from citizens of
16 southwest Florida responding to -- to some media
17 coverage of this -- of this decision, and
18 expressing their support of this -- of this
19 purchase.
20 As we speak, Vice President Gore is in
21 West Palm Beach at the South Florida Water
22 Management District headquarters announcing the
23 release of the central and south Florida
24 restudy, the master plan for the restoration of
25 the Everglades, the largest environmental
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1 restoration ever attempted in the history of
2 civilization.
3 In southwest Florida, now the fastest
4 growing part of this state, and one of the
5 fastest growing parts of the country, we are
6 desperate to protect and preserve and restore
7 our fragile corner of the Everglades ecosystem,
8 and not to repeat the mistakes that were made on
9 Florida's east coast.
10 Restoration of South Golden Gate Estates is
11 essential to ensure that we stay the course.
12 On behalf of our members and our beloved
13 Everglades, I again urge you to approve this
14 acquisition. I thank you for the opportunity to
15 speak, and for your consideration.
16 GOVERNOR CHILES: Thank you, sir.
17 All right. It's been moved and seconded as
18 amended.
19 Is there objection?
20 Without objection, Item 10 is approved.
21 Now we'll take up Item 9.
22 MS. WETHERELL: Uh-hum.
23 Item 9 is a modification of a sovereign
24 submerged land lease.
25 GOVERNOR CHILES: Yes, sir.
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1 ATTORNEY GENERAL BUTTERWORTH: Motion.
2 GOVERNOR CHILES: It's been --
3 COMMISSIONER BROGAN: Second.
4 GOVERNOR CHILES: -- moved --
5 COMMISSIONER BROGAN: Second.
6 GOVERNOR CHILES: -- seconded.
7 Without objection, Item 9 is approved.
8 MS. WETHERELL: Item 11 is -- we're
9 recommending rejection of a surplus land sale
10 bid. And I was just told that the bidder has --
11 has come today. And I don't know whether he
12 wishes to speak or not. But Wendell Prevatt is
13 here, if he does wish to speak.
14 (Attorney General Butterworth exited the
15 room.)
16 MR. PREVATT: Thank you.
17 MS. WETHERELL: Sure.
18 MR. PREVATT: I would just like to say,
19 Mr. -- Governor, and Cabinet, that I have done
20 some thorough investigation on the land. I'm
21 not sure that you have had a chance to see a
22 report on it. And I thought that maybe I could
23 bring something to mind that may have some
24 influence on your decision as to whether to
25 accept or reject my bid.
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1 As -- as we speak, the land is in a
2 moratorium in Duval County. It is presently
3 zoned RR, which is --
4 (Attorney General Butterworth entered the
5 room.)
6 MR. PREVATT: -- 1 acre per residence.
7 If you could utilize the land, you could
8 get five lots out of it. The only problem with
9 that, the moratorium is on concurrency and
10 infrastructure, which would take a
11 mile-and-a-half of four-lane road to bring it
12 up-to-date.
13 So my bid was just really a bid not based
14 on the actual value, but on a -- on a bid that
15 was what could you tie up for an indefinite
16 period of time waiting for something to happen
17 to a piece of land.
18 It is impossible to do anything with the
19 land now. It's not even economical if it --
20 to -- to try to build anything on it. And if
21 ever down the way, other than one home site, you
22 would have to put in the roads and the water and
23 the sewer. And the shape of the property is
24 such that you could at that time only procure
25 some three to five lots in a neighborhood where
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1 the surrounding houses are selling from a
2 hundred and fifteen to a hundred and
3 twenty-five thousand dollars.
4 Thank you.
5 GOVERNOR CHILES: Thank you, sir.
6 The staff recommends that the bid be
7 rejected.
8 MS. WETHERELL: Yes, sir.
9 GOVERNOR CHILES: All right.
10 ATTORNEY GENERAL BUTTERWORTH: Move staff
11 recommendation.
12 GOVERNOR CHILES: Staff recommendation is
13 moved.
14 COMPTROLLER MILLIGAN: Second.
15 GOVERNOR CHILES: Second.
16 Without objection, staff recommendation is
17 accepted.
18 MS. WETHERELL: Item 12, we're recommending
19 approval of a grazing lease.
20 ATTORNEY GENERAL BUTTERWORTH: Governor, I
21 have a question. I mean, knowing now where --
22 we've been here a very a long time today, and
23 it's been a very drawn out meeting. I don't
24 want to make it any longer.
25 I -- my only concern is: How much did the
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1 appraisal cost?
2 MS. WETHERELL: I'll have to ask my staff
3 what it cost.
4 John or Pete?
5 MR. MALLISON: A thousand dollars.
6 MS. WETHERELL: A thousand dollars.
7 ATTORNEY GENERAL BUTTERWORTH: And how much
8 money are we going to be recouping from this?
9 MS. WETHERELL: $300 a year.
10 ATTORNEY GENERAL BUTTERWORTH: For how
11 long?
12 MS. WETHERELL: Well, it's a six-year
13 grazing lease.
14 ATTORNEY GENERAL BUTTERWORTH: Yeah.
15 That's -- I guess the only person that made
16 out was the appraiser -- was the appraiser. We
17 should have given it to him for the price of the
18 appraiser, you know.
19 MS. WETHERELL: I know it.
20 ATTORNEY GENERAL BUTTERWORTH: That's my
21 only comment. I don't have any objection to it,
22 but I just --
23 COMPTROLLER MILLIGAN: That is $300 an
24 acre, right?
25 MS. WETHERELL: It's $300 for the -- for
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1 the grazing lease.
2 ATTORNEY GENERAL BUTTERWORTH: For all
3 33 acres, $3 an acre. I'm sorry. It's $10 an
4 acre -- $9 an acre.
5 COMPTROLLER MILLIGAN: That makes more
6 sense.
7 SECRETARY MORTHAM: Move approval.
8 COMPTROLLER MILLIGAN: Second.
9 ATTORNEY GENERAL BUTTERWORTH: Second.
10 But can we at least --
11 GOVERNOR CHILES: Moved and seconded.
12 Without objection, it's approved.
13 ATTORNEY GENERAL BUTTERWORTH: We need
14 approval -- we need a rule or something to
15 basically say for common sense purposes, if the
16 appraisal is going to cost almost as much as
17 what we're getting, maybe it's not worth
18 appraising it, but just going out there and --
19 and let it go on open market and let somebody
20 bid on it.
21 MS. WETHERELL: Yes, sir. I understand
22 your point. And I think, you know, it's -- the
23 cost of the appraisal, if -- if we have an idea
24 of what the -- the grazing lease, or any lease
25 is going for, then that certainly should be a
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1 consideration.
2 GOVERNOR CHILES: General, government don't
3 work. I told you that a long time ago.
4 ATTORNEY GENERAL BUTTERWORTH: Thank you,
5 Governor. I really think --
6 GOVERNOR CHILES: Item 13.
7 ATTORNEY GENERAL BUTTERWORTH: I keep
8 trying here. I --
9 COMPTROLLER MILLIGAN: It's a good idea
10 though.
11 GOVERNOR CHILES: Uh-hum.
12 MS. WETHERELL: Item 13 -- Item 13 is a
13 sovereign submerged land lease, a public
14 easement, severance, and a waiver of lease fees
15 for the Jacksonville Port Authority.
16 SECRETARY MORTHAM: Move --
17 ATTORNEY GENERAL BUTTERWORTH: Motion.
18 SECRETARY MORTHAM: -- approval.
19 ATTORNEY GENERAL BUTTERWORTH: Second.
20 COMMISSIONER BROGAN: Second.
21 GOVERNOR CHILES: Moved and seconded.
22 Without objection, Item 13 is approved.
23 MS. WETHERELL: And that concludes our
24 agenda.
25 Thank you.
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1 TREASURER NELSON: Governor, I'd like to
2 just add my comments to those that have been
3 made about the distinguished public record and
4 public service of Ginger. And the record speaks
5 for itself.
6 GOVERNOR CHILES: Thank you, sir.
7 MS. WETHERELL: Thank y'all all very much.
8 GOVERNOR CHILES: Thank y'all.
9 MS. WETHERELL: I do appreciate it.
10 (The Cabinet meeting was concluded at
11 10:48 a.m.)
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October 13, 1998 36
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 35 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 27TH day of OCTOBER, 1998.
17
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19 LAURIE L. GILBERT, RPR, CCR, CRR 100 Salem Court 20 Tallahassee, Florida 32301 850/878-2221 21
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