Jim Tulley wants to take on the city’s strategic plan as one of the first issues he’ll tackle as Titusville’s new mayor.

It’s an issue that will be brought before a new council tonight, with new Titusville City Councilor Martha Jane Long sitting in Tulley’s vacated council member’s seat.
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After 13 months as president and CEO of the Brevard Art Museum, Karl Hollander resigned Monday. He handed his letter of resignation to Sue Hopkins, chairwoman of the museum’s board of trustees.
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Four Office of Insurance Regulation officials squared off in a Capitol hearing room at tables a dozen feet from four State Farm executives — put under oath to tell the truth — and argued about reasonable profits, discounts for protecting against wind damage, expected hurricane losses, state law and complex computer models.

For State Farm Florida’s 900,000 homeowners policyholders there are thousands of dollars in higher premiums at stake. The three-hour public hearing will be part of the regulators’ review. No decision was made Tuesday.

In addition to higher rates, State Farm is also in the midst of dumping 50,000 wind-damage policies, a process begun in March and previously announced. But executives also revealed that they intend to cancel 15,000 condo policyholders and an additional 5,000 homeowners will have their wind coverage dropped.

State Farm executives said the average 47 percent increase is necessary and actually below what computer models indicated. Company President Jim Thompson said lower income from premiums, the higher cost of reinsurance to protect against huge losses and projections of more frequent hurricanes account for the need to raise rates.

“We believe that the 47.1 percent we requested is needed if we are able to stand behind our promises,” Thompson said.

Gov. Charlie Crist earlier in the morning said he thinks Insurance Commissioner Kevin McCarty should turn down the rate increase.   

“I think he’ll handle this case appropriately and you know what I mean by that — rejecting it, the increase — and I’m pleased that over the course of the past year and a half, rates have dropped an average of 16 percent,” Crist said.

The cost of reinsurance was the biggest part of State Farm’s premium breakdown, accounting for 43 percent of its breakdown of costs. The company buys backup reinsurance from the state, from its parent company and from other private-sector sources.

Though State Farm Florida officials said the reinsurance it buys from its parent is far cheaper than what it would cost on the open market, regulators pointed out that the cost of additional coverage it has purchased exceeds the savings realized.

State Farm Florida pays more than $500 million a year to its parent company, State Farm Mutual, for coverage against catastrophic losses that would be caused by a once-every-250-years hurricane. If State Farm projections for such a large storm were realized, the company says the parent would have to pay off on about $4.3 billion in coverage claims.    Belinda Miller, deputy commissioner of the Office of Insurance Regulation, said that didn’t wash. In years without hurricanes — as in 2006 and 2007 —   those reinsurance payments are lucrative for the parent company.

“There is a transfer . . . of a half a billion dollars a year,” Miller said. “From the average person’s perspective, they would say State Farm Mutual is doing well.”

Crist said the agreement would help Brevard County’s economy during the expected economic slump due to the end of the shuttle program in 2010.

“This is going to be a great endeavor,” said Crist. “I am as confident as I’ve ever been about the future or the Space Coast. The entrepreneurial spirit is part of our DNA.”

Before the pad can open Space Florida must finish its license agreement with the Air Force, work out design requirements and work out the architecture of a Commercial Launch Zone agreement that would make the launch site like a Free Trade Zone.

Using SLC 36 is subject to completion of an environmental analysis. The action grants the property to the state under a real-estate license for an initial term of five years. The launch complex can accommodate light to medium rockets.

Meanwhile, Kennedy Space Center would continue to explore possibilities for a larger commercial launch complex at KSC. SLC 36 opened for business in 1961. The last rocket launched from there in 2004.

- Patrick Peterson, FLORIDA TODAY  

It’s set for 1 p.m. on Wednesday, Aug. 20, at the IBEW union hall in Orlando.   

A problem arose over the weekend when the Democratic State Executive Committee met in Tampa to choose 27 electors, but couldn’t get a quorum. State law requires both parties to submit certified lists of electors to the governor’s office before Sept. 1.   

Party leaders initially called for an Aug. 18 meeting, time and place to be determined. But Democratic National Committeeman Jon Ausman of Tallahassee pointed out that the date didn’t allow 10 days notice, as required by party rules.   

Ausman said that if Sen. Barack Obama carries Florida but his electors are not chosen with strict compliance to every rule and law, the Republicans might go to court and challenge those 27 votes — maybe even affecting the national outcome in a close race. Remember 2000, Ausman said, recalling the 36 days of court fights and recounts over Florida’s then-25 electoral votes.   

So today, the party set the new date. Democratic Party spokesman Eric Jotkoff said lawyers have assured the leadership that notifying executive committee members by e-mail, fax and phone ought to be legally sufficient.   

“We expect a large turnout at the meeting because the members of the State Executive Committee are understand it is their duty to approve the slate of electors, so when Barack Obama wins Florida, there will be no question about our electors,” said Jotkoff.   

Florida Republican Party Chairman Jim Greer marveled at the Democratic disarray. Last spring, the party fought for a couple of months over seating of Florida delegates to the national convention, which was resolved after a long and divisive fight between Obama supporters and backers of Sen. Hillary Clinton, D-N.Y.   

“The continued inability of the Florida Democrats to get their act together simply amazes me,” said Greer.
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Circuit Court Judge George Turner signed an order to put a hold on the lawsuit filed by West Melbourne, saying the two cities have not yet exhausted negotiations.

The order is standard procedure under Florida laws regarding governments suing each other, and sends both sides back to talk, attorneys for both cities said.
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