1 STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

2

 

 

3 SUGAR CANE GROWERS COOPERATIVE OF FLORIDA, )

ROTH FARMS, INC., and WEDGWORTH FARMS, INC., )

4 -and- )

FLORIDA SUGAR CANE LEAGUE, INC., UNITED )

5 STATES SUGAR CORPORATION, and NEW HOPE )

SOUTH, INC., )

6 -and- )

FLORIDA FRUIT AND VEGETABLE ASSOCIATION, )

7 LEWIS POPE FARMS, W. E. SCHLECHTER & SONS, )

INC., and HUNDLEY FARMS, INC., )

8 )

Petitioners, )

9 )

vs. ) DOAH CASE NOS

10 ) 92-3038

SOUTH FLORIDA WATER MANAGEMENT DISTRICT, ) 92-3039

11 ) 92-3040

Respondent, ) (Consolidated)

12 )

and )

13 )

MICCOSUKEE TRIBE OF INDIANS, THE UNITED )

14 STATES OF AMERICA, FLORIDA DEPARTMENT OF )

ENVIRONMENTAL REGULATION, and FLORIDA )

15 WILDLIFE ASSOCIATION, )

)

16 Intervenors. )

)

_____________________________________________

17

HEARING BEFORE: HONORABLE J. STEPHEN MENTON

18 HEARING OFFICER

 

 

19 DATE: FRIDAY, JULY 16, 1993

(2:10 P.M. - 3:12 P.M.)

20

LOCATION: HEARING ROOM 5, DESOTO BUILDING

21 1230 APALACHEE PARKWAY

TALLAHASSEE, FLORIDA

22 (ALL PARTIES PRESENT VIA

TELEPHONE)

23

REPORTED BY: SUE HABERSHAW JOHNSON

24 CERTIFIED COURT REPORTER

REGISTERED PROFESSIONAL REPORTER

25 NOTARY PUBLIC

2

 

 

 

 

 

 

1 APPEARANCES:

 

 

2 Representing Petitioners, Sugar Cane Growers

Cooperative of Florida, Roth Farms, Inc.,

3 and Wedgworth Farms, Inc.:

 

 

4 WILLIAM H. GREEN, ESQUIRE

GARY PERKO, ESQUIRE

5 Hopping, Boyd, Green & Sams

123 South Calhoun Street

6 P. O. Box 6526

Tallahassee, Florida 32314

7 (904-222-7500)

 

 

8 Representing Petitioners, Florida Sugar Cane

League, Inc., United States Sugar Corporation,

9 and New Hope South, Inc.:

 

 

10 RICK J. BURGESS, ESQUIRE

MARK T. KOBELINSKI, ESQUIRE

11 Peeples, Earl & Blank, P.A.

One Biscayne Tower, Suite 3636

12 Two South Biscayne Boulevard

Miami, Florida 33131

13 (305-358-3000)

-and-

14 WILLIAM L. HYDE, ESQUIRE

ROBERT BLANK, ESQUIRE

15 Peeples, Earl & Blank, P.A.

Suite 350

16 215 South Monroe Street

Tallahassee, Florida 32301

17 (904-681-1900)

 

 

18 Representing Petitioners, Florida Fruit and

Vegetable Association, Lewis Pope Farms,

19 W. E. Schlechter & Sons, Inc., and

Hundley Farms, Inc.:

20

KENNETH F. HOFFMAN, ESQUIRE

21 Oertel, Hoffman, Fernandez & Cole, P.A.

Suite C

22 2700 Blair Stone Road

Tallahassee, Florida 32301

23 (904-877-0099)

 

 

24

 

 

25

3

 

 

 

 

 

 

1 Representing Respondent, South Florida Water

Management District:

2

PAUL L. NETTLETON, ESQUIRE

3 Popham, Haik, Schnobrick & Kaufman, Ltd.

400 International Place

4 100 Southeast Second Street

Miami, Florida 33131

5 (305-539-7222)

-and-

6 ABNER T. COOPER, ESQUIRE

IRENE W. QUINCEY, ESQUIRE

7 RUTH P. CLEMENTS, ESQUIRE

Assistant District Counsel

8 South Florida Water Management District

P.O. Box 24684

9 3301 Gun Club Road

West Palm Beach, FL 33416-4680

10 (305-539-7222)

 

 

11 Representing Intervenor, The United States

of America:

12

SUZAN HILL PONZOLI, ESQUIRE

13 KATHY STARK, ESQUIRE

MAUREEN DONLAN, ESQUIRE

14 Assistant United States Attorneys

Southern District of Florida

15 Suite 627

155 South Miami Avenue

16 Miami, Florida 33130-1693

(305-536-4425)

17

Representing Intervenor, Florida Department of

18 Environmental Protection:

 

 

19 LEE M. KILLINGER, ESQUIRE

DONNA LA PLANTE, ESQUIRE

20 Assistant General Counsel

Department of Environmental Protection

21 Twin Towers Office Building

2600 Blair Stone Road

22 Tallahassee, Florida 32399-2400

(904-488-9730)

23

 

 

24

 

 

25

4

 

 

 

 

 

 

1 Representing Intervenor, Florida Wildlife

Federation:

2

KEN WRIGHT, ESQUIRE

3 DAVID G. GUEST, ESQUIRE

111 South Martin Luther King, Jr., Blvd.

4 P.O. Box 1329

Tallahassee, Florida 32302

5 (904-681-0031)

 

 

6 Representing the Miccosukee Tribe of Indians:

 

 

7 DEXTER W. LEHTINEN, ESQUIRE

Spencer and Klein, P.A.

8 801 Brickell Avenue, Suite 1901

Miami, Florida 33131

9 (305-374-7700)

 

 

10 Representing the United States Department of

Justice:

11

KEITH A. SAXE, ESQUIRE

12 DAVE GILLARD, ESQUIRE

BRIAN FERRELL, ESQUIRE

13 United States Department of Justice

Environmental & Natural Resources Division

14 General Litigation Section

Room 879, 601 Pennsylvania Avenue (20004)

15 P.O. Box 663

Washington, DC 20044

16 (202-272-4016)

 

 

17 * * * * *

 

 

18 ALSO PRESENT:

 

 

19 VICTORIA MINNETT

 

 

20 * * * * *

 

 

21 INDEX

_____

 

 

22 ITEM PAGE

____ ____

 

 

23 HEARING COMMENCED . . . . . . . . . . . . . . . . . . 5

 

 

24 HEARING CONCLUDED . . . . . . . . . . . . . . . . . . 53

25 CERTIFICATE OF REPORTER . . . . . . . . . . . . . . . 54

5

 

 

 

 

 

 

1 PROCEEDINGS

 

 

2 (WHEREUPON, THE HEARING COMMENCED AT 2:10 P.M.)

 

 

3 HEARING OFFICER: I think we are all represented.

 

 

4 As I was making a list of who was being called off on

 

 

5 the roll call, I think we have everybody present. Is

 

 

6 that correct? Is there anybody you can think of that

 

 

7 is left out?

 

 

8 MR. BURGESS: Mr. Hearing Officer, this is

 

 

9 Mr. Burgess. I am here together with my partner, Bob

 

 

10 Blank, on behalf of the League, U. S. Sugar, and New

 

 

11 Hope South.

 

 

12 HEARING OFFICER: All right. I think all parties

 

 

13 are represented as I was making a list of who was

 

 

14 being called off.

 

 

15 Let me say that I have received a motion to stay

 

 

16 the proceedings that was filed by Mr. Hyde on behalf

 

 

17 of the Sugar Cane League. That is the only document

 

 

18 that I have received or that I have before me at this

 

 

19 point in time.

 

 

20 There are several questions that I had in going

 

 

21 through that motion and the documents that were

 

 

22 attached thereto.

 

 

23 But before I get into those I think probably the

 

 

24 best way to start today would be to have the

 

 

25 signatories to the statement of principles relay any

6

 

 

 

 

 

 

1 information that they want to convey at the outset and

 

 

2 then have those parties who were not signatories state

 

 

3 their positions and kind of see where we are from

 

 

4 there.

 

 

5 So why don't we start out with either Mr. Hyde or

 

 

6 Mr. Kobelinski, somebody on behalf of the League, and

 

 

7 bring me up to speed as to exactly where we are and

 

 

8 what's going on.

 

 

9 MR. BURGESS: For the League, U. S. Sugar, and

 

 

10 New Hope, Mr. Hearing Officer, this Rick Burgess.

 

 

11 We filed the stipulated motion for stay on behalf

 

 

12 of our clients and in that document conveyed to you

 

 

13 that our clients have entered into the statement of

 

 

14 principles, hoping that it provides a framework for

 

 

15 future discussion, and of course the document which

 

 

16 you have evidences the agreement among those

 

 

17 signatories to seek a 90-day stay to allow us, the

 

 

18 attorneys who are both the negotiators and the

 

 

19 litigators, a period of time to meet without the

 

 

20 pressures of discovery and responses to pleadings.

 

 

21 It also provides and all party signatories have

 

 

22 affirmed that they will attempt to include all of the

 

 

23 other parties who did not sign the agreement in the

 

 

24 discussions, which will take place hopefully over that

 

 

25 90-day period, and in fact are scheduled to commence

7

 

 

 

 

 

 

1 next week.

 

 

2 I think granting the stay at this time allows us

 

 

3 to enter into these discussions, that the path of

 

 

4 negotiation rather than litigation at this point holds

 

 

5 out the most hope for a cost expedient and a time

 

 

6 expedient solution to all of the Everglades'

 

 

7 controversies, including those that are evidenced by

 

 

8 the SWIM plan challenge and the permit challenge.

 

 

9 In our mind it is very clearly negotiation which

 

 

10 is negotiation on a new plan representing an

 

 

11 improvement, that plan represents an improvement over

 

 

12 the adopted plan, and that litigation over that

 

 

13 adopted plan is not going to move the process along.

 

 

14 In fact, that is the only delay that will occur if we

 

 

15 are forced to litigate over that adopted plan, as

 

 

16 opposed to negotiating over the new plan.

 

 

17 So simply put we think that we will all operate

 

 

18 in an atmosphere over the next 90 days that allows

 

 

19 negotiations to continue if the stay is granted, as

 

 

20 opposed to forcing us to continue discovery and

 

 

21 responses to discovery deadlines and negotiate at the

 

 

22 same time.

 

 

23 HEARING OFFICER: That was Mr. Burgess?

 

 

24 MR. BURGESS: Right.

 

 

25 HEARING OFFICER: Mr. Burgess...

8

 

 

 

 

 

 

1 MR. BURGESS: Yes.

 

 

2 HEARING OFFICER: ...let me ask you one question.

 

 

3 I am not clear from the motion I have before me or

 

 

4 what you are saying now what exactly it is that you

 

 

5 anticipate occurring as a result of this stay.

 

 

6 Is there going to be a substituted plan, or are

 

 

7 there going to be amendments to the plan, or are there

 

 

8 going to be, is there going to be a completely, whole

 

 

9 different plan that we are working from?

 

 

10 I guess the reason I ask that, is that the

 

 

11 appropriate course here, to stay the challenge to the

 

 

12 existing plan or remand it for adoption of a new plan?

 

 

13 MR. BURGESS: What we hoped the process would

 

 

14 result in is a settlement agreement with respect to

 

 

15 the disputes that now concern the adopted plan, and

 

 

16 out of that settlement agreement a framework for a new

 

 

17 plan, which we assume, but I will let the attorneys

 

 

18 for the District and others tell you through what

 

 

19 process that will go, but it would, the result we hope

 

 

20 from the 90 days is a settlement agreement with

 

 

21 respect to the present challenge.

 

 

22 HEARING OFFICER: Okay. Mr. Hoffman, I noticed

 

 

23 that you were not a signatory to the principles, but

 

 

24 you were represented in the motion as in agreement

 

 

25 with the request. Is there anything that you wanted

9

 

 

 

 

 

 

1 to add or state your position for the record?

 

 

2 MR. HOFFMAN: I think that you have stated it in

 

 

3 the sense that the Fruit and Vegetable Association is

 

 

4 the named farmers who support the stay. We were not

 

 

5 signatory to the document, but we believe that an

 

 

6 overall settlement I think is what I understand

 

 

7 Mr. Burgess is saying would come out of it. There

 

 

8 should not be loose ends when this thing is settled,

 

 

9 which there are many of right now.

 

 

10 There are Commissions meeting on who pays for

 

 

11 what, you know, potential other plans, and so forth

 

 

12 and so on, which would be other proceedings, so we

 

 

13 support this motion strongly.

 

 

14 HEARING OFFICER: Are you in agreement with the

 

 

15 statement of principles? You have not signed off on

 

 

16 the statement of principles. Is there opposition that

 

 

17 you client has taken yet on that?

 

 

18 MR. HOFFMAN: Well, there are some small things

 

 

19 with which our client does not feel that they wanted

 

 

20 to sign off on. There are points we think can be

 

 

21 resolved, but they are, what they are exactly this

 

 

22 minute I can't remember.

 

 

23 But, I mean, for everything, that statement is

 

 

24 lengthy, and there is not everything that we agree

 

 

25 with, but we are in agreement with where they are

10

 

 

 

 

 

 

1 going, and it looks like it should make a settlement

 

 

2 very likely.

 

 

3 HEARING OFFICER: Okay.

 

 

4 MR. HOFFMAN: I support this continuance motion.

 

 

5 HEARING OFFICER: All right. Mr. Green, I

 

 

6 noticed that you also, your clients did not sign on

 

 

7 the statement of principles, and there was a somewhat

 

 

8 ambiguous statement as to what your position was with

 

 

9 respect to the motion to stay. I guess you are in

 

 

10 favor of the motion to stay, but where are your

 

 

11 clients on the statement of principles and on the

 

 

12 motion?

 

 

13 MR. GREEN: Mr. Menton, I have also with me here

 

 

14 Gary Perko.

 

 

15 This is Bill Green, Ms. Habershaw. We do not

 

 

16 agree with the statement of principles. We do not

 

 

17 have bright hopes that continued mediation will

 

 

18 succeed. However, we will not oppose the motion.

 

 

19 I guess hope springs eternal, they say, but we

 

 

20 have filed today, and certainly I can understand if it

 

 

21 hasn't wound its way to you, we filed a response to

 

 

22 the motion to stay, a brief response, but the purpose

 

 

23 of the response is simply to make it clear for the

 

 

24 record that our clients do not agree with the proposed

 

 

25 mediated plan.

11

 

 

 

 

 

 

1 But we did not oppose a motion for stay so long

 

 

2 as the final hearing date and any related deadlines

 

 

3 would be extended by at least a commensurate period of

 

 

4 time.

 

 

5 We do have some concerns on sort of collateral,

 

 

6 miscellaneous matters, but I think they are secondary,

 

 

7 and we can get to those after you get the positions of

 

 

8 the parties, if you would like.

 

 

9 HEARING OFFICER: Let me hear from the

 

 

10 governmental agencies, beginning with the District and

 

 

11 their plan, and then from the federal government and

 

 

12 DER.

 

 

13 MR. NETTLETON: Okay. Mr. Hearing Officer, this

 

 

14 is Paul Nettleton for the District.

 

 

15 Let me start by just saying we would join

 

 

16 generally in the comments that were made by

 

 

17 Mr. Burgess in the beginning. Just to advise you as

 

 

18 to where this stands, our Governing Board met

 

 

19 yesterday and after much debate and public comment at

 

 

20 both the meeting as well as the workshop that was held

 

 

21 the day before ultimately voted, I think it was seven

 

 

22 to one, to approve the statement of principles.

 

 

23 The purpose of this, of course, from the

 

 

24 District's standpoint is to move forward with the

 

 

25 Everglades ecological restoration, which we believe is

12

 

 

 

 

 

 

1 the overriding mandate of the Marjory Stoneman Douglas

 

 

2 Act.

 

 

3 As part of that, of course, as Mr. Burgess says,

 

 

4 it does require the stay of discovery as our current

 

 

5 schedule has us doing, you know, up to seven or eight

 

 

6 depositions simultaneously through the end of the

 

 

7 period, which would make it almost impossible to work

 

 

8 out the details that are necessary to come to a final

 

 

9 resolution.

 

 

10 I wanted to also emphasize, as Mr. Burgess has

 

 

11 stated, the point of the next 90 days is to hopefully

 

 

12 reach a settlement agreement and, as Mr. Hoffman says,

 

 

13 hopefully reach a settlement agreement with all

 

 

14 parties interested in this matter.

 

 

15 All the parties, including the environmentalists,

 

 

16 the Miccosukees, and the Cooperative, and the related

 

 

17 parties are continuing to be invited to meetings, as

 

 

18 Mr. Burgess says, scheduled next week, and we hope

 

 

19 that all issues can be resolved in that and resolve

 

 

20 the entire litigation.

 

 

21 However, the commitment that we have made at this

 

 

22 point is not to some proposed settlement agreement,

 

 

23 because we don't know the details of what that will be

 

 

24 at this point, although we think the statement of

 

 

25 principles is a very large step in the direction that

13

 

 

 

 

 

 

1 we want to go.

 

 

2 This vote to approve the statement of principles

 

 

3 was not a vote to amend the SWIM plan in any respect,

 

 

4 and not until the settlement agreement is ultimately

 

 

5 worked out and the Board votes on that will that

 

 

6 become effective, and I assume at that point it will

 

 

7 supersede the statement of principles, and I believe

 

 

8 as the Board made clear yesterday when it voted on

 

 

9 that that it would want to ensure that all third

 

 

10 parties who might be affected by any implementation in

 

 

11 the future of any actions that might be agreed to

 

 

12 would have their rights preserved for points of entry

 

 

13 at that time.

 

 

14 So, Mr. Hearing Officer, to answer your question,

 

 

15 at one point there is a possibility that the SWIM plan

 

 

16 will be amended somewhere down the line. That is not,

 

 

17 we are not at that point at this point.

 

 

18 However, that is a possibility if the settlement

 

 

19 agreement reach fruition, and again we would submit as

 

 

20 Mr. Burgess stated we think that the road we are

 

 

21 traveling right now is the most expeditious way to

 

 

22 comply with the Marjory Stoneman Douglas Act, and that

 

 

23 is to reach a final resolution and to start

 

 

24 implementing actual restoration efforts in the

 

 

25 Everglades.

14

 

 

 

 

 

 

1 HEARING OFFICER: Okay. DER?

 

 

2 MR. KILLINGER: Yes, this is Lee Killinger of DEP

 

 

3 it is now, and I am with Donna LaPlante.

 

 

4 We would join in the comments that the District

 

 

5 had about this proposed stay of this litigation to let

 

 

6 us get on down the road here, and without beating a

 

 

7 dead horse too much further, I just think we are at a

 

 

8 crossroads here.

 

 

9 We have gone a long way with the previous

 

 

10 mediation efforts. We have developed what seems to be

 

 

11 a pretty good technical consensus plan, and we have

 

 

12 gotten down to talking about the scheduling, and we

 

 

13 have also been discussing the money, and it is to the

 

 

14 point where some of that is getting put to paper now.

 

 

15 Obviously there is a lot more to be done, and it

 

 

16 is a rather large task we set for ourselves to get

 

 

17 done in 90 days.

 

 

18 I think if we are going to try to get down the

 

 

19 road to restoration and protection of the resource

 

 

20 that we need to get on with it, and it is a difficult

 

 

21 enough task to do by itself, and I think it certainly

 

 

22 requires the stay of the litigation in order to get

 

 

23 down the road.

 

 

24 HEARING OFFICER: Mr. Killinger, let me ask you a

 

 

25 question, because I assume that the motion to stay

15

 

 

 

 

 

 

1 applies both to the SWIM plan challenge as well as to

 

 

2 the challenges to the permit.

 

 

3 Has there been any discussion as to exactly what

 

 

4 will happen with the permitting case? Will these

 

 

5 cases be included within the scope of the discussions

 

 

6 that will be taking place over the next 90 days?

 

 

7 MR. KILLINGER: Yes, it is my contemplation that

 

 

8 they will, and feel free for anybody else to wade in

 

 

9 with their opinion on this, but it is my opinion that

 

 

10 the mediated plan, since it does have impact on the

 

 

11 design and location of the STAs, will require

 

 

12 modification of the permit that is presently out there

 

 

13 in litigation right now.

 

 

14 Just as the SWIM plan will ultimately need to be

 

 

15 modified should we come to a settlement agreement, so

 

 

16 will the permit, and they will be handled

 

 

17 substantially similarly.

 

 

18 HEARING OFFICER: Okay, so there would be no

 

 

19 benefit from your position to separating the two

 

 

20 cases? I don't think they have ever formally been

 

 

21 consolidated. We haven't done an order consolidating

 

 

22 I don't think at this point the SWIM plan challenges

 

 

23 and the permit challenges, and there is no benefit to

 

 

24 trying to keep those cases separate and maybe having

 

 

25 the permit case go forward?

16

 

 

 

 

 

 

1 MR. KILLINGER: I think that they are pretty well

 

 

2 tied up together. I am not sure there would be much

 

 

3 benefit to proceeding on one, given the technical

 

 

4 aspects of the plan that I understand.

 

 

5 I think it will require modifications to it, and

 

 

6 we might be going down the road proceeding on

 

 

7 something that doesn't get us anywhere in the long

 

 

8 run, and we could settle it.

 

 

9 MR. HYDE: Mr. Menton, this is Bill Hyde on

 

 

10 behalf of the League. I think it is well to remember

 

 

11 the Marjory Stoneman Douglas mandate that the permit

 

 

12 must be consistent with the plan. Therefore, if the

 

 

13 plan is amended, the permit has to be amended, too.

 

 

14 HEARING OFFICER: Okay, Ms. Ponzoli?

 

 

15 MS. PONZOLI: Mr. Menton, I have for some time

 

 

16 now sought the fastest relief for the Park and the

 

 

17 Refuge, and I have advised my clients to enter into

 

 

18 these further negotiations and to proceed with the

 

 

19 90-day stay if you were to grant it, because it is my

 

 

20 very firm belief that we can obtain the fastest and

 

 

21 probably the best relief for the Park and the Refuge

 

 

22 and for the overall Everglades if we are able to

 

 

23 settle all of these outstanding matters, and that is

 

 

24 of course the goal I believe of the parties who

 

 

25 signed, and I think there are parties who have not

17

 

 

 

 

 

 

1 signed that we still retain hope will join in through

 

 

2 the next 90 days.

 

 

3 It would be to settle virtually all outstanding

 

 

4 issues regarding the Everglades among these parties,

 

 

5 both those before you and elsewhere.

 

 

6 HEARING OFFICER: Okay. Mr. Guest or Mr. Wright?

 

 

7 MR. WRIGHT: Your Honor...

 

 

8 HEARING OFFICER: Is this Mr. Wright?

 

 

9 MR. WRIGHT: ...received the settlement agreement

 

 

10 a couple of days ago, like all of the parties who had

 

 

11 not been included in the negotiations, and we feel

 

 

12 that there are a lot of things that the statement of

 

 

13 principles doesn't include, and under the

 

 

14 circumstances what we would prefer to see, rather than

 

 

15 the 90-day stay period here, is a two-week stay that

 

 

16 would allow us to seek additional information as to

 

 

17 what is between the lines in the statement of

 

 

18 principles.

 

 

19 We feel that there must be more to it than what

 

 

20 actually meets the eye, and under those circumstances

 

 

21 a stay where there is not an agreement between all of

 

 

22 the parties is probably not sufficient under the

 

 

23 Marjory Stoneman Douglas Act mandate to expedite the

 

 

24 hearing, to go ahead and agree to a stay at that

 

 

25 point.

18

 

 

 

 

 

 

1 There would be a number of parties who simply do

 

 

2 not feel this is an adequate settlement agreement, so

 

 

3 we feel that a two-week stay to allow the parties to

 

 

4 get together and determine if this is actually

 

 

5 something that we can agree to would be the best

 

 

6 course of action.

 

 

7 HEARING OFFICER: Mr. Wright, have you seen a

 

 

8 technical plan yet? Is there a draft of the technical

 

 

9 plan that has been circulated yet?

 

 

10 MR. WRIGHT: Your Honor, we have some portions of

 

 

11 the technical plan. We are not sure what the

 

 

12 scheduling of the cleanup is going to be and what the

 

 

13 scheduling of the funding efforts are going to have to

 

 

14 be, and that is one of the significant concerns that

 

 

15 we have here.

 

 

16 There are those among our clients who believe

 

 

17 that what we are talking about is 20 years before we

 

 

18 get to a significant cleanup, and others are just not

 

 

19 sure.

 

 

20 That is one of the things that we would like to

 

 

21 find out from the other parties about when exactly

 

 

22 specific items have been determined to be cleaned up

 

 

23 or what construction schedules that we are going to be

 

 

24 on.

 

 

25 HEARING OFFICER: Okay, Mr. Lehtinen?

19

 

 

 

 

 

 

1 MR. LEHTINEN: Yes, Judge, what you are seeing

 

 

2 today is very typical of the way the water policies

 

 

3 have been set in this state for many, many years.

 

 

4 For example, the Miccosukee Tribe does not even

 

 

5 have a copy of the motion. We don't know what was

 

 

6 attached to it. We don't know whether the Water

 

 

7 Management Board attached its resolution...

 

 

8 HEARING OFFICER: No.

 

 

9 MR. LEHTINEN: ...which contrary to the statement

 

 

10 of principles, the statement of principles says the

 

 

11 obligations of the Water Management District will

 

 

12 become effective when the Board adopts it July 15th.

 

 

13 What they adopted on July 16th was a statement

 

 

14 that it is a non-binding. It is a non-binding

 

 

15 guidance document.

 

 

16 That occurred because it is clearly an unlawful

 

 

17 adoption. It wasn't on their agenda.

 

 

18 Their Rule 40-E requires them to notice it seven

 

 

19 days in advance. They have essentially admitted they

 

 

20 don't have good cause, and it is not under their rule

 

 

21 a matter of public controversy, and therefore although

 

 

22 they actually put it on their agenda as an additional

 

 

23 item on the last day and announced that we would be

 

 

24 adding an item, they had to quickly adopt the legal

 

 

25 position that it was always on the agenda, that

20

 

 

 

 

 

 

1 everybody knew about this seven days ago, when in fact

 

 

2 it was a secret negotiation which nobody could know

 

 

3 about until Bruce Babbitt said that this would settle

 

 

4 five years of litigation.

 

 

5 I don't mean to be technical about the point that

 

 

6 we don't have the motion and we are entitled to a

 

 

7 chance to respond to it, but in reality how can any

 

 

8 citizen of Florida really assert their rights if it is

 

 

9 an oral teleconference hearing, we don't know their

 

 

10 motion, we don't know what they represent the

 

 

11 statement of principles to be, and I don't know if the

 

 

12 changed STA map is attached.

 

 

13 If you look at the statement of principles you

 

 

14 see they commit to an entirely changed map. That

 

 

15 means you rip out a certain page of the SWIM plan and

 

 

16 put this map in. It takes tens of thousands of acres

 

 

17 of public land to do it, and when we pointed this out

 

 

18 to them at the District hearing, at the Water

 

 

19 Management District hearing, that is why they were

 

 

20 careful to draft a resolution that apparently becomes

 

 

21 an integral part of the agreement, which says it is

 

 

22 really not an agreement, and which says it really

 

 

23 doesn't commit the District to the attached STA map.

 

 

24 It is an Alice in Wonderland situation where

 

 

25 Bruce Babbitt can say one thing in Washington, and

21

 

 

 

 

 

 

1 then the lawyers stand up in Florida and say, "Forget

 

 

2 about what Secretary Babbitt said," and quite

 

 

3 literally a government lawyer doing a very good job in

 

 

4 trying to explain the difference literally told the

 

 

5 Board, "Don't read the press releases, and don't

 

 

6 believe what the higher up political officials say.

 

 

7 This doesn't settle anything." And the person is

 

 

8 right, of course, because it doesn't settle anything.

 

 

9 Of course, what would generally be said is that

 

 

10 it doesn't settle anything, but it reaches a

 

 

11 sufficient initial threshold, and I understand the

 

 

12 argument that if you reach an initial threshold then

 

 

13 maybe it is warranted to go forth and try to do more,

 

 

14 but you are hearing today that the District Board

 

 

15 would not even adopt the resolution consistent with

 

 

16 what the Board signed. It says they have no

 

 

17 obligations.

 

 

18 Mr. Green fairly and honestly says not only did

 

 

19 they not agree with the statement of principles, but

 

 

20 they have never even agreed to this allegedly agreed

 

 

21 upon technical plan.

 

 

22 If you say a million times the agreed upon

 

 

23 technical plan is agreed upon by everybody, it is

 

 

24 still not true. A misstatement said a million times

 

 

25 is still a misstatement.

22

 

 

 

 

 

 

1 Saying you are going to let the Indian tribe in

 

 

2 now doesn't wash the repeated violations of the

 

 

3 Florida public meeting and Florida notice laws that

 

 

4 are involved. You just can't wipe out the APA.

 

 

5 The Marjory Stoneman Douglas Act says, "Expedite

 

 

6 this." I don't think the District has the legal right

 

 

7 to adopt that STA map that they adopted yesterday,

 

 

8 but...

 

 

9 HEARING OFFICER: But, Mr. Lehtinen, at this

 

 

10 point there has been no modification to the SWIM plan,

 

 

11 so technically speaking what I have before me is the

 

 

12 initial SWIM plan that was adopted last year by the

 

 

13 Board, and what I am hearing from the federal

 

 

14 government and from the District and from the League

 

 

15 today is that they have reached some agreements in

 

 

16 principle which they are trying to finalize so that

 

 

17 they can modify the existing plan that has been

 

 

18 adopted, and what I would anticipate they would have

 

 

19 to do is to finalize their agreement, come to specific

 

 

20 language that incorporates that agreement, and then

 

 

21 attempt to modify the plan.

 

 

22 And at the time they modify the plan then those

 

 

23 parties who do not agree to the modification will

 

 

24 still have the opportunity to challenge those

 

 

25 modifications, and there would have to be either a new

23

 

 

 

 

 

 

1 point of entry, well, I guess I am a little unclear

 

 

2 procedurally as to how it would be done.

 

 

3 I don't think that there is any effort to wipe

 

 

4 out the rights of other parties who may not be in

 

 

5 agreement with the statement of principles, certainly

 

 

6 I do not intend to let that happen. I think all

 

 

7 parties who are substantially affected have the right

 

 

8 to challenge it.

 

 

9 The problem I see is that the District and the

 

 

10 federal government and at least some of the

 

 

11 petitioners are attempting to come to a modified plan,

 

 

12 and I guess the problem is we are involved in

 

 

13 litigation on a moving target, and until we know

 

 

14 exactly what the target is then I wonder how much

 

 

15 benefit it is to continue on a litigation course that

 

 

16 is really a lot of wasted time and effort.

 

 

17 MR. LEHTINEN: Well, Judge, much of what you say

 

 

18 is correct, but if I may point out the following.

 

 

19 First of all, it is correct that if these private

 

 

20 parties reach private, off-budget agreement, so to

 

 

21 speak, and adopt the amended SWIM plan 90 days from

 

 

22 now or six months from now, and everybody is given a

 

 

23 new point of entry, the litigation starts all over

 

 

24 again.

 

 

25 I mean, what's the point of a new point of entry

24

 

 

 

 

 

 

1 six months from now, except to have delayed the

 

 

2 litigation six months from now?

 

 

3 HEARING OFFICER: Well, if it eliminates some of

 

 

4 the parties and it narrows the issues that are in

 

 

5 dispute, it seems to me it is furthering the long-term

 

 

6 goal, which is to come up with a SWIM plan that all

 

 

7 parties know what it is and have had an opportunity to

 

 

8 challenge it.

 

 

9 I guess, you know, it is a very difficult thing

 

 

10 when you have multiple parties involved with multiple

 

 

11 interests, and what the District ultimately has to do

 

 

12 is come up with their final plan, so that I know

 

 

13 exactly what it is that we are litigating over, and

 

 

14 that all parties that are involved and substantially

 

 

15 affected know what they are litigating over and can

 

 

16 focus their attacks.

 

 

17 It is a cumbersome process sometimes, but I don't

 

 

18 really see what our alternatives are.

 

 

19 Isn't it a waste of time for us to go forward and

 

 

20 go to hearing in November on the existing SWIM plan

 

 

21 when the District is saying that that very well may

 

 

22 not be what they are going to be advocating at the

 

 

23 final hearing?

 

 

24 MR. LEHTINEN: Well, I will, just two things I

 

 

25 will add.

25

 

 

 

 

 

 

1 First of all, I think that when you ask whether

 

 

2 or not this takes care of the permit challenge as

 

 

3 well, some of the petitioners in the permit challenge

 

 

4 are not asking for the stay. They have got a right to

 

 

5 go forth.

 

 

6 Some of the petitioners in the SWIM challenge are

 

 

7 not asking for it.

 

 

8 But you do make a point. As long as this

 

 

9 Governing Board is not going to make up its mind, it

 

 

10 probably is a futile effort.

 

 

11 It is a futile effort for the citizens of the

 

 

12 State of Florida to have this Governing Board adopt

 

 

13 the SWIM plan, send it over to you, and then send over

 

 

14 some ambiguous, half-baked, who know what it is legal

 

 

15 request to wipe that out, because we are going to

 

 

16 change our minds, and in agreement with not the

 

 

17 citizens of Florida and in agreement with just a

 

 

18 couple of big litigants, not the little guys, not the

 

 

19 people who live in the Everglades, like the

 

 

20 Miccosukees, and not the environmentalists, but with

 

 

21 the big monied interests who can hold this up.

 

 

22 I have heard it said that Florida's APA cannot

 

 

23 work. They simply say that Florida's APA cannot be

 

 

24 made to work against well monied interests.

 

 

25 Now the District Governing Board if you interpret

26

 

 

 

 

 

 

1 it as saying to you, "We are probably going to change

 

 

2 the plan, and you will probably have to start all over

 

 

3 again six months from now," I understand their

 

 

4 interpretation, but that is quite different than any

 

 

5 belief that this is going to speed the process.

 

 

6 That is in fact an interpretation that we are

 

 

7 just going to start over again at ground zero with

 

 

8 another 120.57 point of entry and another set of

 

 

9 challenges, and we are just going to hope that the

 

 

10 people who never agreed to this at the 120.57 later on

 

 

11 don't have enough money to make it stick.

 

 

12 All we will have done is wiped out the 120.57

 

 

13 petitioners who have a lot of money and can make their

 

 

14 rights stick and assume that the 120.57 petitioners

 

 

15 who will file six months from now will not be able to

 

 

16 have that kind of clout. It is just a terrible

 

 

17 commentary on public policy.

 

 

18 HEARING OFFICER: Let me ask you, what do you

 

 

19 suggest then? How do we go about speeding up this

 

 

20 process?

 

 

21 MR. LEHTINEN: Your Honor, I think if what is

 

 

22 being asked for is a 90-day delay, first of all these

 

 

23 300 depositions was a foolish thing to start with.

 

 

24 All they did was try to make a mockery of the APA

 

 

25 proceedings with these kind of depositions. They can

27

 

 

 

 

 

 

1 negotiate I believe without the 90-day stay.

 

 

2 I am not of the belief that they can't cancel

 

 

3 their depositions, you know, on their own, that they

 

 

4 can't meet together.

 

 

5 I just don't see why they need the 90-day stay.

 

 

6 If they have met a threshold of some type that they

 

 

7 are satisfied with, then they should cancel the

 

 

8 depositions on their own, and they should run the risk

 

 

9 when they cancel the depositions that the agreement

 

 

10 won't come to fruition, and they have to go to

 

 

11 hearing.

 

 

12 It is a question of the distribution of the risk.

 

 

13 We are not trying to block negotiation, but they are

 

 

14 saying to us there is such a good chance of a deal

 

 

15 that you should delay the hearing date. I say to them

 

 

16 if there is such a chance of a deal then you should

 

 

17 cancel some of your frivolous depositions. You take

 

 

18 the risk that you will not be able to put those

 

 

19 frivolous depositions back on on time, rather than the

 

 

20 public taking the risk that the hearing date will be

 

 

21 set off.

 

 

22 That is really the question. It brings us back

 

 

23 to who should run the risk.

 

 

24 HEARING OFFICER: They have not specifically,

 

 

25 they have requested the November 13th date be

28

 

 

 

 

 

 

1 continued, but there has been no request as to when it

 

 

2 should be rescheduled.

 

 

3 Certainly that's one thing that I have voiced in

 

 

4 the past that I recognize, the directives in the

 

 

5 Marjory Stoneman Douglas Act that the proceeding is to

 

 

6 be expedited, and I am searching for a way to make

 

 

7 sure that this process is expedited.

 

 

8 I don't think that by giving the parties an

 

 

9 opportunity to try, I am hearing that some of the

 

 

10 major protestants are in agreement to some

 

 

11 modification of the plan, and the District anticipates

 

 

12 that there needs to be some modification to the plan,

 

 

13 and I think that the most beneficial way to expedite

 

 

14 this process is to try to pin down exactly what the

 

 

15 final plan is, so that we know when we go to hearing

 

 

16 what it is.

 

 

17 I am not at this point committing to postponing

 

 

18 the hearing 90 days or to postponing it for six months

 

 

19 or any period of time. I think that is going to be

 

 

20 dependent upon the future course of actions that take

 

 

21 place.

 

 

22 In that regard I did see a reference in the

 

 

23 statement of principles that there would be briefings

 

 

24 every 30 days, 60 days, and 90 days to the principals

 

 

25 involved.

29

 

 

 

 

 

 

1 I would like to get an understanding as to

 

 

2 exactly what that involves, and is that something that

 

 

3 we can build into a schedule for this administrative

 

 

4 proceeding?

 

 

5 MR. KILLINGER: Mr. Menton, this is Lee Killinger

 

 

6 at DEP. I would just like to point out that the

 

 

7 Douglas Act in its mandate states that the process be

 

 

8 expedited, and I think that is what we are dealing

 

 

9 with here, the question of feasibility.

 

 

10 If the parties, some of the major parties, have

 

 

11 got a question of feasibility or a question of

 

 

12 settlement, I think it directly bears on feasibility

 

 

13 of expediting the hearing.

 

 

14 If the prospect exists that a settlement can be

 

 

15 reached which may modify the SWIM plan and/or the

 

 

16 permit ultimately, I think that bears directly on the

 

 

17 feasibility of expediting the process.

 

 

18 When that occurs and how that occurs may make a

 

 

19 lot of what is going on in the litigation, in the

 

 

20 discovery, and in the preparation of the hearing

 

 

21 unnecessary. It may ultimately make a better case of

 

 

22 what is going on between some of the contesting

 

 

23 parties. It may ultimately be that we go to hearing

 

 

24 with some of the parties who cannot sign on or do not

 

 

25 feel they can agree with it, but I think that that has

30

 

 

 

 

 

 

1 to be kept firmly in mind, that the statute doesn't

 

 

2 say expedited at all costs, so I think to read it that

 

 

3 way would be a miscarriage of what the intent of the

 

 

4 statute is, which is ultimately to get a cleanup and a

 

 

5 protection of the resource at the soonest possible

 

 

6 date.

 

 

7 HEARING OFFICER: All right. There was some

 

 

8 reference also that there would be continued entry and

 

 

9 access I guess for testing purposes in Loxahatchee.

 

 

10 If everybody is in agreement with that aspect of

 

 

11 it, that testing would naturally continue in

 

 

12 accordance with the parameters set forth in the last

 

 

13 hearing we had on July 6th...

 

 

14 MS. PONZOLI: Yes, Mr. Hearing Officer, this is

 

 

15 Suzan Ponzoli. We have agreed to that entry and

 

 

16 access on the condition that the League bear the cost.

 

 

17 We were sharing certain costs in the past with

 

 

18 them, and that is a burden on the Refuge, because it

 

 

19 comes directly out of their budget.

 

 

20 The League has agreed to bear all those costs

 

 

21 during the stay period, which we have agreed to allow

 

 

22 them continued entry and access.

 

 

23 MR. GREEN: Mr. Menton, may I address the points

 

 

24 that have come up? This is Bill Green.

 

 

25 HEARING OFFICER: Yes.

31

 

 

 

 

 

 

1 MR. GREEN: This is an interesting discussion,

 

 

2 and I know you are trying to balance the interests of

 

 

3 everyone and also meet the statutory mandate.

 

 

4 Our position is a little different than the

 

 

5 positions you have been hearing, and I just wanted to

 

 

6 suggest to you some of the concerns we have with what

 

 

7 we hear the parties arguing and something you just

 

 

8 said a minute ago.

 

 

9 We are not real optimistic that mediation will

 

 

10 lead to a resolution of our concerns, but we don't

 

 

11 want to foreclose that process.

 

 

12 We are convinced despite what Mr. Lehtinen said,

 

 

13 I am convinced that the two and a half months or

 

 

14 whatever we have in the schedule tentatively of

 

 

15 depositions is the minimum that would be required to

 

 

16 litigate this case. It isn't loaded up.

 

 

17 There may have been depositions earlier on which

 

 

18 were not as important as others, but I can tell you

 

 

19 that the main case of the United States government and

 

 

20 DER in my opinion have yet to be discovered.

 

 

21 And so the dilemma that this places me in is, you

 

 

22 know, while we don't want to oppose the prospects of

 

 

23 settlement, and we hope that we can come to the table

 

 

24 and settle with everyone, at the same time if this 90

 

 

25 days just came out of our hide and we had to go to

32

 

 

 

 

 

 

1 hearing in November, then we can not live with that,

 

 

2 and we would absolutely oppose the stay.

 

 

3 That would be contrary to our clients' best

 

 

4 interests, and we just, here's the point.

 

 

5 I think that's true also for the United States,

 

 

6 the Water Management District, and those who have

 

 

7 entered into the statement of principles. I would

 

 

8 suspect, and I can't speak for them, I would ask their

 

 

9 views on that, if 90 days comes to an end and we are

 

 

10 not able to reach settlement, I don't know of anyone

 

 

11 who would seriously say we do not need at least as

 

 

12 much time as we have today to get ready for a hearing,

 

 

13 and I realize that Mr. Lehtinen has made some very

 

 

14 eloquent arguments for why he disagrees with that, but

 

 

15 I would urge you to reconsider what I heard, what I

 

 

16 thought I heard, that the hearing date would stay on

 

 

17 schedule. Because if it does, I will not agree with

 

 

18 it.

 

 

19 HEARING OFFICER: No, I am not saying that the

 

 

20 hearing date stays on schedule. I am saying that at

 

 

21 this point I haven't decided that the hearing date

 

 

22 will be extended commensurate with the extension of

 

 

23 any stay that might be entered. I will have to

 

 

24 revisit that as the case progresses.

 

 

25 I think the bottom line is I want to make sure

33

 

 

 

 

 

 

1 that the negotiations over the technical plan and the

 

 

2 implementation of the statement of principles is

 

 

3 proceeding along in a satisfactory manner. I think

 

 

4 maybe the way to do that is to monitor the 30- and 60-

 

 

5 day intervals.

 

 

6 MR. GREEN: Your Honor, I concur with that. It

 

 

7 was the other part that concerned me.

 

 

8 If we got to the end of 90 days and then others

 

 

9 were arguing, "Well, we ought to have the hearing in

 

 

10 60 days instead of the 90 days," if we didn't get the

 

 

11 full time we would be severely prejudiced, my clients'

 

 

12 position, and I firmly believe that.

 

 

13 HEARING OFFICER: Okay. I am not making that

 

 

14 final decision today.

 

 

15 What I will do is I think that based upon

 

 

16 representations that I have heard and a review of the

 

 

17 statement of principles, at least a number of the

 

 

18 principal litigants in this case have made some

 

 

19 progress in narrowing the scope of the issues that are

 

 

20 involved in this case and trying, have come to some

 

 

21 agreement that it appears will be implemented through

 

 

22 modifications to the plan.

 

 

23 The plan that is currently pending before me is

 

 

24 likely to change. In light of that I think the

 

 

25 appropriate thing to do would be to stay the

34

 

 

 

 

 

 

1 proceedings to enable the parties to try to crystalize

 

 

2 their agreement, and I have no problem with a 90-day

 

 

3 stay in principle, but what I want to do is monitor it

 

 

4 in 30- and 60-day installments to make sure it is

 

 

5 progressing satisfactorily.

 

 

6 So in that regard I think the way to address it

 

 

7 would be to, I will enter a stay for 30 days, and if

 

 

8 everything is progressing satisfactorily I will extend

 

 

9 it accordingly.

 

 

10 In addition, I will postpone the hearing for 30

 

 

11 days, and if we need to move it back a little bit

 

 

12 further we can revisit it in the future, but at least

 

 

13 at this point I think that there is evidence that

 

 

14 sufficient progress or adequate progress is being made

 

 

15 in narrowing some of the issues that were involved

 

 

16 that will ultimately end up in expediting this entire

 

 

17 proceeding.

 

 

18 So given that I will extend the hearing for, set

 

 

19 the hearing back 30 days.

 

 

20 But if we need to extend it further, if there is

 

 

21 progress being made, we can revisit that in the

 

 

22 future.

 

 

23 Mr. Green, I think that addresses your concern.

 

 

24 I am not saying it is absolute at this point, and

 

 

25 again to Mr. Wright we will just have to see where the

35

 

 

 

 

 

 

1 progress is and how much is being made and where all

 

 

2 of the parties are, and I will listen to everybody's

 

 

3 position again.

 

 

4 MR. WRIGHT: Your Honor, this is essentially what

 

 

5 we were asking for in any event. This way we will

 

 

6 have 30 days to see what is out there. I think it is

 

 

7 a good plan.

 

 

8 HEARING OFFICER: You are saying you wanted two

 

 

9 weeks? I have given you more than you wanted?

 

 

10 MR. WRIGHT: You have given us 30 days.

 

 

11 HEARING OFFICER: All right. Is, can you come

 

 

12 back in two weeks and give me a better report or an

 

 

13 adequate report then?

 

 

14 MR. WRIGHT: Well, Your Honor, it seems to us

 

 

15 that we are supposed to have some talks next week on

 

 

16 Tuesday and Wednesday, when I think they are

 

 

17 tentatively scheduled, and at that point we might be

 

 

18 able to come back and have a better idea, but I think

 

 

19 the 30 days is probably an adequate time period for

 

 

20 everyone to get a better feel for where we are.

 

 

21 HEARING OFFICER: Mr. Wright, is 30 days too

 

 

22 much?

 

 

23 MR. WRIGHT: No, Your Honor.

 

 

24 HEARING OFFICER: No, did you say?

 

 

25 MR. WRIGHT: No.

36

 

 

 

 

 

 

1 HEARING OFFICER: Okay. Mr. Lehtinen?

 

 

2 MR. LEHTINEN: Well, Judge, it is much better

 

 

3 than 90, so we thank you.

 

 

4 HEARING OFFICER: Okay. I don't have a calendar

 

 

5 in front of me. Does someone have one? Let's set up

 

 

6 a time right now for another conference call to find

 

 

7 out where we are in 30 days.

 

 

8 MR. NETTLETON: Mr. Hearing Officer, this is Paul

 

 

9 Nettleton. While people are pulling out their

 

 

10 calendars I would just like to mention to keep this in

 

 

11 context, and I am sure you are aware of this from

 

 

12 reviewing the statement of principles, but what is

 

 

13 being discussed in these meetings in hopes of reaching

 

 

14 a global resolution goes beyond the issues that are

 

 

15 currently involved in the SWIM plan, as Ms. Ponzoli

 

 

16 previously stated, and as the environmentalists had

 

 

17 mentioned earlier our primary concern was with the

 

 

18 funding aspects of this, and I just remind the Hearing

 

 

19 Officer that the funding aspects are not even involved

 

 

20 in this litigation at this point, but we are certainly

 

 

21 hopeful of resolving that later.

 

 

22 HEARING OFFICER: Well, Mr. Nettleton, I am not

 

 

23 clear. Are you saying just the funding aspect is

 

 

24 something that is beyond the current scope of the

 

 

25 existing SWIM plan?

37

 

 

 

 

 

 

1 MR. NETTLETON: I wanted to remind you in the

 

 

2 context of these discussions that they are beyond the

 

 

3 current SWIM plan. It encompasses the SWIM plan and

 

 

4 the permit challenges, but it also encompasses issues

 

 

5 beyond that which have not been addressed by the

 

 

6 parties in this litigation, and to the extent that

 

 

7 arguments are being made concerning those issues they

 

 

8 really should have no bearing on the progress of this

 

 

9 particular litigation or your consideration of the

 

 

10 stays.

 

 

11 HEARING OFFICER: Okay. Well, I guess...

 

 

12 MR. NETTLETON: I wasn't trying to change

 

 

13 anything. I just thought that should be put into

 

 

14 context.

 

 

15 HEARING OFFICER: Okay. Well, I guess from what

 

 

16 I have been hearing from the various parties today is

 

 

17 that it is anticipated there will be if the process is

 

 

18 successful, there will be a modified SWIM plan at some

 

 

19 time.

 

 

20 Now exactly what form that will take, whether

 

 

21 that will incorporate some of these funding issues

 

 

22 that you are talking about, even if they weren't in

 

 

23 the existing plan, you know, I guess it is premature

 

 

24 just to take, to know whether that will be

 

 

25 incorporated or not, but I have always raised and

38

 

 

 

 

 

 

1 always been concerned about the procedural aspects of

 

 

2 adopting a modified plan, you know.

 

 

3 I don't know that we need to address that today,

 

 

4 and I would assume that is something that the parties

 

 

5 are looking at and will be able to brief me on, if and

 

 

6 when we get to that point, but that goes back to the

 

 

7 point of entry issues as related to this and also just

 

 

8 some general reconciliation of the provisions of the

 

 

9 APA with the Marjory Stoneman Douglas Act.

 

 

10 But if and when we get to that point I would

 

 

11 expect the parties to be able to brief me on those

 

 

12 issues.

 

 

13 MR. BURGESS: Mr. Hearing Officer, this is Rick

 

 

14 Burgess on behalf of the League.

 

 

15 I just wanted to state for the record, having

 

 

16 been through two separate 30-day stays in the past and

 

 

17 based on the enormity that we face in the next 90 days

 

 

18 in the negotiations as set forth in the framework of

 

 

19 the statement of principles, the 90 days was selected

 

 

20 because we were attempting to negotiate in 30-day

 

 

21 blocks of time.

 

 

22 The necessity after perhaps the first two weeks

 

 

23 of negotiations to start looking at resumptions of

 

 

24 discovery and meetings with the multitude of other

 

 

25 parties and contacting consultants with respect to

39

 

 

 

 

 

 

1 availability for depositions and the like we found in

 

 

2 the initial two 30-day periods, it becomes

 

 

3 self-defeating, and that is why the 90 days would be

 

 

4 preferable.

 

 

5 Our preference would be to have a 90-day stay

 

 

6 with perhaps reporting more often, perhaps even status

 

 

7 conferences to update us every 30 days and 60 days

 

 

8 obviously.

 

 

9 Just so you understand, the reason the 90 was

 

 

10 selected was that way in 30-day increments we could

 

 

11 not fully devote ourselves to negotiations and

 

 

12 mediations, because we had litigation responsibilities

 

 

13 we had to undertake.

 

 

14 HEARING OFFICER: I understand the position that

 

 

15 it may take 90 days to finalize it and get it in

 

 

16 agreement between the parties. I understand the

 

 

17 complexity of that. If progress is being made, that

 

 

18 probably, as long as adequate progress is being made,

 

 

19 then it probably is an appropriate time period to

 

 

20 finalize it.

 

 

21 I want to make sure I have the ability to monitor

 

 

22 the progress that has been made in the discussions, so

 

 

23 if that does fall apart it is not an automatic 90-day

 

 

24 period that it will be delayed. I just want to make

 

 

25 sure that I have the ability to monitor the progress

40

 

 

 

 

 

 

1 of these discussions that are taking place, so that if

 

 

2 they do break down and fall apart there is not an

 

 

3 automatic 90-day period that this whole thing is going

 

 

4 to be delayed.

 

 

5 If, for example, two weeks into this the parties

 

 

6 realize that they are back to square one and can't

 

 

7 agree on anything, then I want to be in a position to

 

 

8 get this case back on track and ready to go to hearing

 

 

9 as soon as possible.

 

 

10 MS. PONZOLI: Mr. Hearing Officer, this is Suzan

 

 

11 Ponzoli for the United States. I think while you

 

 

12 didn't say it, I think I sort of understood you that

 

 

13 way, that you were disposed to the 90 days, but you

 

 

14 were not giving it to us all at one time.

 

 

15 I would agree that it is a significant problem if

 

 

16 we have really only been given a 30-day stay and there

 

 

17 was no presumption that we could rely upon, because

 

 

18 there is a significant startup period at the end of

 

 

19 the 30-day stay for re-establishing depos, but I think

 

 

20 I could live with what you are saying, because I think

 

 

21 you are saying, "If you work hard at it, and you are

 

 

22 showing progress, you will get the two additional

 

 

23 periods of time." Is that correct?

 

 

24 HEARING OFFICER: Right. That's exactly what I

 

 

25 am saying.

41

 

 

 

 

 

 

1 MS. PONZOLI: Okay. I can live with that. I

 

 

2 think we are okay.

 

 

3 HEARING OFFICER: I don't expect you to come back

 

 

4 in 30 days and have it worked out, everything that you

 

 

5 told me it was going to take 90 days to do. I expect

 

 

6 that it will take all of the 90 days to try to put it

 

 

7 together if you are going to be successful.

 

 

8 So where that will leave Mr. Lehtinen and those

 

 

9 parties who will not be in agreement, I think that is

 

 

10 something that we can develop as the 90 days progress,

 

 

11 and it is one of the things that I will be interested

 

 

12 in hearing from Mr. Lehtinen and Mr. Green and the

 

 

13 others who may not be in agreement with the technical

 

 

14 plan or the modifications that are coming about.

 

 

15 I would be interested to hear their positions as

 

 

16 we are progressing and to hear any suggestions that

 

 

17 they may have as to what will be necessary to get the

 

 

18 case ready to go to hearing, assuming that we are

 

 

19 going to hearing on a modified plan.

 

 

20 MR. LEHTINEN: Mr. Hearing Officer, this is

 

 

21 Dexter Lehtinen. In line with what you said I would

 

 

22 just add we are a little confused, and it could not be

 

 

23 resolved today, but I agree with you I haven't been

 

 

24 able to figure out whether it would be a remand,

 

 

25 whether the Board could adopt the plan, and this isn't

42

 

 

 

 

 

 

1 settlement of litigation, outside litigation. This is

 

 

2 apparently to be settlement of a SWIM challenge, and

 

 

3 that I do not believe would have the same ruling that

 

 

4 you might be able to settle outside litigation and

 

 

5 start over and have your point of entry on the SWIM

 

 

6 plan then.

 

 

7 When you actually agree to settle a SWIM

 

 

8 challenge by amending the SWIM plan I think the effect

 

 

9 would be that they did amend the SWIM plan.

 

 

10 I don't mean to argue it, but I just mean for

 

 

11 everyone listening the points you are raising, Judge,

 

 

12 are correct to have everybody think about now, because

 

 

13 the rights of the parties will depend a great deal on

 

 

14 guidance as to what the legal effect is of what is

 

 

15 happening.

 

 

16 Sometimes if something has already happened and

 

 

17 then it is realized that it had a different legal

 

 

18 effect than what was anticipated, it can wipe out some

 

 

19 rights at that point.

 

 

20 I am not disputing anything now, but I think

 

 

21 those unstated, and I have asked many times of

 

 

22 counsel, "What legally are you trying to do? What

 

 

23 will the settlement be? Who will waive their rights

 

 

24 to challenge future SWIM plans? Who will waive their

 

 

25 120.57 or indeed 120.54 rights in the future? What

43

 

 

 

 

 

 

1 happens to all of those other farmers who have not

 

 

2 waived their rights? How do we avoid litigation if

 

 

3 indeed we do another SWIM plan that is subject to

 

 

4 challenge?" And I just mention it because I think all

 

 

5 those points are real important to my client.

 

 

6 If they were to agree because this settlement

 

 

7 gave certainty, I don't quite see as a lawyer how it

 

 

8 gives certainty against the other 10 million

 

 

9 challengers who might hold it up the same way. I just

 

 

10 mention that in passing.

 

 

11 HEARING OFFICER: Well, I don't intend to adopt

 

 

12 any procedure that would involuntarily extinguish

 

 

13 anyone's rights.

 

 

14 I think that what I am attempting to do is to

 

 

15 make sure that what we are litigating over is a known

 

 

16 quantity, so that we've got the District's final

 

 

17 version of the plan before us, so that the parties

 

 

18 know exactly what it is that the District is

 

 

19 attempting to do and how it impacts upon them, and

 

 

20 then they have the right to challenge that in the

 

 

21 120.57 proceeding.

 

 

22 I do not intend to involuntarily extinguish

 

 

23 anyone's rights along these lines.

 

 

24 MR. LEHTINEN: Judge, this is Dexter Lehtinen

 

 

25 again. I understand what you said, and I appreciate

44

 

 

 

 

 

 

1 what you said, because I think it makes sense.

 

 

2 I think it is the most sensible way for you to do

 

 

3 it legally in light of what is being done.

 

 

4 I do think it is quite inconsistent with what the

 

 

5 parties represent this to be to the public. I don't

 

 

6 mean that to dispute your interpretation of it.

 

 

7 But I said that to the Board yesterday, and the

 

 

8 Board and its lawyers all insist that it really

 

 

9 doesn't have the effect of what you said, when legally

 

 

10 I think you are right.

 

 

11 I think what they are doing is they are

 

 

12 advertising an advanced disposition to amend the SWIM

 

 

13 plan, but when you stand in front of them they know

 

 

14 the legal significance of that, and they say, "No, we

 

 

15 are no where near that. That is not right at all."

 

 

16 I mean, it is rather humorous to see the

 

 

17 different forums and the different postures that they

 

 

18 are taking in the different forums. I will end with

 

 

19 that, and I appreciate what you said. Thank you.

 

 

20 MR. GREEN: Mr. Menton, if I could, this is Bill

 

 

21 Green again, just on three quick points.

 

 

22 We have also more than a passing interest in how

 

 

23 the SWIM plan amendment process should appropriately

 

 

24 be done, whether if there is a mediated plan in 90

 

 

25 days the existing challenged plan would be pulled and

45

 

 

 

 

 

 

1 the Douglas Act process would be gone through, or how

 

 

2 that is done. I would only urge that, you know,

 

 

3 perhaps the District should be asked to file a

 

 

4 memorandum explaining their view on that, since it is

 

 

5 their responsibility, or there ought to be a way to

 

 

6 resolve that, I would hope.

 

 

7 HEARING OFFICER: Well, I think probably the

 

 

8 appropriate thing to do would be to let the District

 

 

9 focus on trying to finalize their agreement, if they

 

 

10 can, and to come up with a technical plan, and then

 

 

11 come back and brief exactly how they intend to go

 

 

12 about adopting it and what implications that has for

 

 

13 other parties who may be substantially affected,

 

 

14 including those who are already parties to the

 

 

15 litigation, as well as perhaps those who are not.

 

 

16 I think as Mr. Nettleton pointed out, some of the

 

 

17 issues that are under discussion now are beyond the

 

 

18 scope of the current SWIM plan. If that is the case,

 

 

19 then there very well may be parties who are

 

 

20 substantially affected as a result of the technical

 

 

21 plan that may be adopted or modified SWIM plan that

 

 

22 may be adopted who were not affected before, and how

 

 

23 they have a right to protect their interests I think

 

 

24 is an issue that needs to be looked at and resolved.

 

 

25 MR. GREEN: Yes, sir.

46

 

 

 

 

 

 

1 HEARING OFFICER: I think the appropriate way for

 

 

2 that to be handled is to give those parties who are

 

 

3 involved in these discussions and who want to be

 

 

4 involved in the discussions an opportunity to sit down

 

 

5 and try to work out the technical plan and decide upon

 

 

6 the exact scope and nature of the modifications to the

 

 

7 SWIM plan that are necessary and then come back and

 

 

8 advise me as to how they intend to go about it and

 

 

9 give everybody an opportunity.

 

 

10 MR. GREEN: Yes, sir. That sounds, we appreciate

 

 

11 that.

 

 

12 The second point I had is I tend to concur with

 

 

13 Mr. Burgess and Ms. Ponzoli about the practical

 

 

14 difficulties in living from 30 days to 30 days in

 

 

15 depositions.

 

 

16 We would not object to what I thought you were

 

 

17 saying earlier, if you decided that a 90-day stay was

 

 

18 in order, but you had checkpoints at 30 days and 60

 

 

19 days or whatever where you could collect information.

 

 

20 We don't object to that, and as long as there is

 

 

21 a way to deal with that on a regular basis I don't see

 

 

22 a big difference there.

 

 

23 What we don't want to get caught up in is

 

 

24 calling, you know, 100 witnesses the last week of

 

 

25 every 30 days to try to reach new deposition

47

 

 

 

 

 

 

1 schedules, and I think you indicated you were

 

 

2 sensitive to that.

 

 

3 I just have one last point. This was the more

 

 

4 mundane point that I mentioned earlier, and I really,

 

 

5 we were supposed to be providing privilege lists to

 

 

6 one another for depositions, and that hasn't routinely

 

 

7 happened, and that has caused us some concern

 

 

8 particularly in the last week or so.

 

 

9 I would ask whether the United States would be

 

 

10 willing to exchange privilege lists in a week for

 

 

11 Doctors Walker, Kadleck, Jones, and Parks, and

 

 

12 Mr. Gherini, which they haven't gotten, and I would be

 

 

13 glad to provide it, and I think we ought to get that

 

 

14 done, Your Honor.

 

 

15 That is not going to take negotiators' time. It

 

 

16 is fair and appropriate. I would ask you to consider

 

 

17 that. Of course, Ms. Ponzoli needs a chance to

 

 

18 respond to my suggestion.

 

 

19 MS. PONZOLI: This is Ms. Ponzoli. Mr. Green was

 

 

20 on the phone with me yesterday, and he didn't mention

 

 

21 that he would be asking for this today, which would

 

 

22 have given me an opportunity to have dealt with him

 

 

23 with that.

 

 

24 MR. GREEN: That's true.

 

 

25 MS. PONZOLI: I believe that when you take the

48

 

 

 

 

 

 

1 burden of litigation away you take it away completely,

 

 

2 and the principal negotiators for settlement will be

 

 

3 the principal litigators, so you are not taking any

 

 

4 burden away from us when we have to go back and do

 

 

5 these things.

 

 

6 Mr. Green owes me a significant number of

 

 

7 privilege lists, as does the League, as do all parties

 

 

8 owe all parties, so this would not be lifting

 

 

9 litigation responsibilities if you were to grant

 

 

10 Mr. Green's request.

 

 

11 We would all have to go back to the drawing board

 

 

12 and figure out what everybody owes everybody and start

 

 

13 bickering over it.

 

 

14 MR. GREEN: I only want Walker, Kadleck, Jones,

 

 

15 and Parks. It is an informal understanding we would

 

 

16 have had them weeks ago, and we haven't gotten them.

 

 

17 That's what I am asking for, Your Honor.

 

 

18 MS. PONZOLI: We never received the Cooperative's

 

 

19 or Mr. Wedgworth's, and I would have to go back and

 

 

20 see what I haven't received from you, Mr. Green, and

 

 

21 had you shown me the courtesy of raising this

 

 

22 yesterday I could have my list ready.

 

 

23 So I think we really, we asked for a stay, and we

 

 

24 agreed to a stay, and you granted a stay.

 

 

25 HEARING OFFICER: Well, Ms. Ponzoli, I tend to

49

 

 

 

 

 

 

1 agree with you. I think if we start getting into

 

 

2 making exceptions to the stay then we will be arguing

 

 

3 over exceptions forever, and that is contrary to the

 

 

4 intention of granting the stay.

 

 

5 Mr. Green, if we get back on track on the

 

 

6 litigation mode you can bring it up and hopefully get

 

 

7 that resolved right up front. If not, we can take it

 

 

8 up then.

 

 

9 MR. GREEN: Thank you, Your Honor.

 

 

10 HEARING OFFICER: Okay. Are there any other

 

 

11 matters we need to discuss today?

 

 

12 MR. KILLINGER: Mr. Menton, this is Lee Killinger

 

 

13 again. You brought up the point that the permitting

 

 

14 case has not yet been formally consolidated with this

 

 

15 case, and I think therefore the motion that was filed

 

 

16 for a stay in this case probably only adds the

 

 

17 captions and the case numbers of the SWIM case.

 

 

18 What I am wonder is I think the intention of all

 

 

19 parties was to have it apply to the permitting and to

 

 

20 the SWIM challenge, but I want to know if we can

 

 

21 formally address that so that it is clear on the

 

 

22 record?

 

 

23 HEARING OFFICER: Okay. Well, technically I

 

 

24 don't think anything has been done with t