Good evening. Welcome to tonight's meeting and thank you for coming. My name is Lisa

Kaplan. I'm the chair of the Sacramento Local Agency Formation Commission, also known

as LAFGO. The commissioners are locally elected officials who are designated by their respective

home agencies to serve on LAFGO. Our role is to oversee boundary changes of cities and

special districts, the formation of new agencies including the incorporation of new cities

and districts and the consolidation or reorganization of special districts and or our cities. The

broad goals of the commission's directive are to ensure the orderly formation of local

government agencies to preserve agriculture and open space lands and to discourage urban

sprawl. Commissions must by law create municipal service reviews and update spheres of influence

for each jurisdiction for each independent local governmental jurisdiction within their county

wide jurisdiction. Our meetings are always open to the public and regularly scheduled. Meetings

are shown live on Metro Cable, Channel 14, Webcast Live on the Metro Cable TV website and posted

on the county's website comments are welcome. Please complete a speaker slip and return it

to the county clerk up here. Time will be limited to two minutes per person to keep the meeting

timely and we kindly ask that you address your comments or questions to the commission

and not the audience. So with that clerk can we establish a core? Madam Chair. Here.

Commissioner little. Here. Commissioner Carter. Here. Commissioner Hume. Present. Commissioner Jones.

Present. Commissioner Desmond. Here. Commissioner Prattin. Here. You have a corner. Thank you and

could you read the meeting statements? This meeting of the Sacramento local agency formation

commission is live and recorded with closed captioning. It is Cablecast on Metro Cable Channel 14,

the local government affairs channel on the Comcast and direct TV universe cable systems. It

is also live streamed at Metro 14 live dot set county dot gov. Today's meeting replaced

Friday, March 7th at 2 p.m. on Metro Cable Channel 14. Once posted the recording of this meeting

can be viewed on demand at youtube.com for its last Metro Cable 14. The Sacramento local agency

formation commission fosters public engagement during the meeting and encourages public participation,

accessibility and use of courteous language. The board does not condone the use of profanity,

vulgar language, gestures or other inappropriate behavior including personal attacks or threats

towards any meeting participant. A speaker will be given two minutes to make a public comment

and are limited to making one comment per agenda or off agenda item. Please be mindful of the

public comment procedures to avoid being interrupted or disconnected while making your comment.

To make a comment in person please fill out a speaker request form and hand it to the clerk's staff.

The chairperson will open public comments for each agenda or off agenda item and direct the clerk to call the name of each speaker.

When the clerk calls your name please come to the podium and make your comment. If a speaker is unavailable to make a comment prior to the closing of public comments,

the speaker waves their request to speak and the clerk will file the speaker request form in the record.

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Dial 916-875-2500 and follow the prompts to be placed in a queue for specific agenda or off agenda item which we do not do anymore.

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please see clerk's staff for assistance or contact the clerk's office at 916-875-5451 or by email at boardclurketsetcounty.gov.

Thank you in advance for your courtesy and understanding of the meeting procedures. This concludes your announcement.

Thank you Madam Clerk. Commissioner Bretton, could you lead us in the pledge please?

Sure can.

I pledge literally just to flag the United States of America to the public for which it stands for my nation and your law and your people with liberty and justice.

Are there any additional announcements that need to be made before we get moving?

No additional. All right. We can now Madam Clerk go to the first agenda item.

Madam Chair, the first agenda item is a public comment and we do have a few speaker requests.

One for Kathy Lauer.

And Madam Clerk, I believe you also received written comments. Can we just add them into the public record as well?

Yes, Madam Clerk.

Thank you.

I would like to start off by saying I don't know what I would do without you and your staff helping me through all this bureaucracy.

I'm a hairdresser. I'm due to all of this and you're doing a great job.

I would like Lafko to understand the moral hazard problem of the golden parachute.

Lafko has inadvertently caused for the ratepayers of DPM.

The current board of directors have no incentive to do anything for its ratepayers.

Why? If the five directors vote to dissolve, they would be rewarded with an advisory committee.

Five directors would receive stipends paid.

Is this actually a hold on ma'am. Sorry, quick question.

Is this actually have to do with the consolidation or reorganization?

Yes.

I'm Del Paso.

Okay. So can we just hold off on your comments because this is public comments on items not on the agenda?

Okay. Thank you. My apologies.

This is the work where I am.

Yes.

Madam Clerk, we did have a comment that you wanted to make an off of agenda public comment.

And Slower, you don't want to make that off of agenda public comment.

I just told Rich how much I appreciate his work.

Okay.

That's such a superb work.

That's a superb work.

Okay. That was an off.

It didn't make any sense.

It made it.

And it's in the record so we can't strike it.

Okay.

I know she had two of them.

Okay.

All right. Well now move on to, is it the consent calendar?

Yes. I have two through four for approval.

Is there any public comments?

We have no public comment.

All right.

So, Madam Chair, there could be a small clerical correction on the, on the minutes.

It does not include the participation in the votes from Dr. Jena Karpinski-Kosta,

who was the alternate sitting on Lafkoe last month.

So with that minor correction, the minute should be okay.

Okay.

Do I have a motion with the corrections?

So moved.

Second.

So I got human Carter.

And we can vote.

You may vote.

All right.

Motion passes unanimously.

All right. And the next item, Madam Clerk, if you could read that into the record as well.

Okay. Madam Chair, item five is public hearing to consider and approve Sequick Categorical Exemption 15320.

And the reorganization of Del Paso Manor Water District into Sacramento,

suburban water district. Lafkoe project number 2024-01.

If I could have the presentation pulled up on the screen, please.

Good evening, Madam Chair and commissioners.

Today, you are here to listen and consider the reorganization of the Del Paso Manor Water District into Sacramento, suburban water district.

Essentially, the map here shows the service area that's being involved.

The hashed area is the current Del Paso Manor Water District.

The larger area outlined in black is the Sacramento, suburban water district.

The Del Paso Manor is about 672 acre.

And it will be dissolved and annexed into Sacramento, suburban existing 18,823 acre service area.

The Sacramento, suburban area includes portions of the unincorporated communities of our Narcade, Carmichael, and North Highlands.

The project description is the dissolution of the Del Paso Manor Water District.

And it's the annexation of that service area into Sacramento, suburban water district or SSWD.

I may also refer to it as a suburb to keep it short.

SIKWA, consideration, the lead agency is Sacramento, Lafko.

And this qualifies for a categorical exemption 15320, which is changes in organization of local agencies.

So the key points to consider is that the project number one will not affect the service availability in either service area.

Because SSWD is already handling 24-hour system monitoring emergency responses and maintenance.

SSWD is in the process of recruiting additional engineers to assist with that effort.

And they received the green light for that few months, last month.

SSWD and Del Paso Manor intend for the Del Paso Manor service area to operate separately.

So the Del Paso Manor ratepayers will fund any necessary improvements to address water system deficiencies.

There's not that are not covered by grants.

Any applicable fees, taxes, or assessments will comply with all applicable laws, including Proposition 218.

So the creating a Del Paso Manor service area serves two purposes.

Number one, to protect the ratepayers for SSWD from occurring any costs associated with any system improvements in the Del Paso Manor area.

And number two, it provides a readily identifiable area for any of future grants that SSWD may apply to.

They've already applied to one type of grant, which at the moment has been processed.

But there are also a couple other grants that they would be eligible for to apply and they have a readily identifiable service area of whether it's going to be targeted.

The key points in order to retain the Del Paso Manor's institutional knowledge existing non-contract staff will become employees of the combined district and remain with SSWD.

We're talking to as outlined in the plan for services approved by both boards and directors.

The overall impact of this project is the dissolution of the political entity known as the Del Paso Manor water district, which is mostly surrounded by Sac suburban.

Staff has determined that the project does not create irregular boundaries and will result in a more logical boundary for SSWD.

Prior commission actions.

It's a long road here.

What's not included in the presentation is the fact that Del Paso Manor came to into your radar.

As a result of a grand jury investigation in 2021, you conducted a preliminary MSR, which you adopted in 2022.

But circumstances have changed, prompted the creation of an addendum.

And you approved that addendum on May 1, 2024.

And that action was consistent with government code section 56430.

The report found that there were numerous equipment and infrastructure deficiencies in the Del Paso Manor water system.

And this led the commission to adopt a resolution to intent to dissolve Del Paso Manor water district.

And in accordance with the law, you gave the district 12 months to address those deficiencies.

Soon after the commission action, the boards of both districts, Sac suburban and Del Paso Manor started discussions about reorganization.

And they've been in negotiations ever since.

They conducted an operational study.

They conducted a physical study.

And they found that the reorganization was going to be feasible.

So as a result, they, in December of 2024, they applied to Lafko to reorganize on the round.

And consistent with that application, you considered adopting a zero sphere of influence for Del Paso Manor at the February meeting.

And this action is consistent with 56425.

And you also adopted a positive sphere for Sac suburban at the same meeting that encompasses the Del Paso Manor water district service area.

You have a project hearing and election exemption.

I'm sorry, council, did you?

One of them?

Oh, okay.

You have two additional things that don't necessarily pop up in regular commission proposals.

And so I'm going to try to walk through these because they can't get complex fairly quickly.

Government code 507-077.1c subsection C, sorry, subsection one, allows the commission to approve and order a dissolution of a district without an election or protest proceedings if the dissolution is consistent with a prior commission action under 56378, 56425 or 56430.

And so you have two of the government code sections that already been considered there last year in May.

You did a 56430, 56430 adoption of the, a Dendem MSR.

And then last month you did an action consistent with 56425 with the adoption of the zero sphere.

Typically dissolution of special districts have to go through two in election of the electorate unless there are two separate items that can be ticked off.

57077.1c1 is one of them.

And so you bypass an election for the dissolution.

And the second code to consider is 56853.

And so with the approved the Board of Director resolutions, the commission has no authority to deny the reorganization proposal.

Additionally, as stated in Government code 507077.1c, the dissolution will proceed without an election or protest hearing because it aligns with a prior commission action.

So by both boards adopting similar resolutions of application to Lafgo, it takes away your discretionary authority to deny the project.

So you can approve unconditionally or approve or approve conditionally.

In the madness of yesterday, you received an amended resolution which includes this condition of approval, which is that you designate Sacramento suburban as the successor agency for Del Paso manner.

So the regulations, assets, rights and liabilities, attributeable to Del Paso manner and they're transferred to SSWD, included by that limited to any and all rights to title, interest and real and personal property for Del Paso manner.

And then we also amended one of the existing conditions at the request of council.

And so the amended condition is C, the SSWD board will take action within its authority and discretion within the first six months of the commission's approval of this reorganization to create a separately designated service area or to form a separate assessment district, community services facilities district or is on a benefit within the Del Paso manner water district service area.

And this is consistent with the action that we indicated earlier that essentially your, your, your, your even though Sacramento suburban will be one, one district, there's a specific designated area on for the Del Paso manner community.

So your determinations are to the application for this reorganization for the dissolution of Del Paso manner water district and the annexation of Del Paso manner water district service area into Sacramento suburban water district is made subject to government code 56650 at sequiter by district resolutions that territory proposed for the project is within the spheres of influence for the Del Paso manner water district and SSWD.

The project will provide a more logical and orderly boundary for Sacramento suburban.

The project will not result in any negative impacts to the cost and adequacy of service provided by the area and is in the best interest of all the affected area and the total organization of the local government agencies.

In addition, the project will not have any adverse effects on agriculture or open space lands.

And the project will not result in a decrease in water supply available for the build out of regional housing needs determined by the Sacramento area council of governments.

The project will not have a significant foreseeable effect on the ability of the county to adequately accommodate its fair share of those needs.

That concludes or sorry the recommendations are listed on the staff report but here they are to adopt lafko resolution LFC dash twenty twenty five zero seven recognizing the lafko is the lead agency and that this is subject to a category exemption one five three two zero.

You will adopt resolution.

I'm sorry the recommendation is to adopt resolution lafko twenty twenty five oh eight adding any additional conditions that the commission finds appropriate and approved the reorganization of the dissolution of the Del Paso matter water district into Sacramento suburban water district.

You will direct myself and my staff to complete all the necessary filings interest middle as recorded by law.

You will determine the defective data the approval of this agreement to be five working days after the recordation of the of the certificate completion by the county recorder.

Once the conditions are met and that concludes my presentation to be happy to answer any questions you may have commissioners if you don't mind I'd like to go to public comment first then we can ask our questions thereafter Madam Clerk.

Madam chair we do have three speaker slips and we also have crystal hanging online if she'd like to answer any questions or just any questions.

Can we call to the election first Kathy Lauer.

The problem I'm having now with this is that at the last minute votes district slipped in an advisory committee with benefits pay perks trips to Washington DC.

The rate pairs of Del Paso manner and advisory committee but five directors it has been a bad faith that we have been forced to have an advisory committee that we cannot afford at this time I have a business I've had a business for forty years my husband current was in management at UPS he got bonuses based on not having accidents why because accidents come up the property of the terminal and it affects his bonus the opposite has happened here with Del Paso manner.

It's a failed business and now they're being rewarded the managers being rewarded with severance and all of these things so there's no incentive for him to do anything to help us he wouldn't even help with the getting grants got director over here that started out in 22 2022 saying she wanted everyone to have water and fire protection but I called her last summer when it was hot in the end of the summer let her know how water which is pouring down the gutter.

And she tells me we can't do anything about this we don't have directors we don't have a staff we don't have directors if I had a business and I charged my customers for service and did not give them that service that would be fraud there has been no incentive for anybody to do anything to help the good people of Del Paso manner because they're being rewarded by saxoburban with an advisory committee jobs perks and pay.

100% object to this advisory committee being just put in at the last minute thank you thank you.

Our next speaker we have Mr. Carl Dulk please come to the lecture.

Good evening madam chair and commissioners my name is Carl Dulk nice serve as a board president of the Del Paso manner water district on behalf of the DPM board we support the combination with Sacramento suburban water district.

Del Paso manner residents have also expressed their support by voting for a candidate in favor of the combination.

The DPM water district has been around for 70 years despite our numerous infrastructure deficiencies lack of funds and in fighting we received excellent service for from those field workers and office staff who served the district during the seven decades seven decade history is understandable by many residents wanted to remain independent.

I thank our general manager Adam Coyne for his steadfast support to see a better path forward for DPM he put what is best for the district at risk to his own career.

The joint board meetings went smoothly due to the hard work that SSWD general manager Dan York and his staff accomplished by keeping both boards on task.

My board colleagues and I are grateful for the SSWD board's patience professionalism fairness and willingness to help a community in need.

Lastly we will not be here today without executive officer Enrique's enter without his intervention he recognized that we were operating on thin ice and he proceeded to do what was necessary to remedy our situation.

His commitment to the process was incredible he attended either in person or online most if not all of DPM's board and joint board meetings.

Thank you Mr. Enrique's for your public service to the residents of Del Paso manner you have made a difference and thank you supervisor Desmond for your contribution.

Thank you all.

Thank you.

Next we have Mr. Dan York please come to the lecture.

Good evening Madam Chair of fellow commission members my name is Dan York I'm the general manager with Sacramento suburban water district.

I want to start initially by thanking this commission for making this tough tough decision to reorganize this district into sex bourbon to ensure that those rate pairs get a safe and reliable but affordable water supply.

I know that commission last year mentioned that last words several times.

I also like to thank the sex bourbon board for accepting this challenge to reorganize with it forward to treating those customers and our partner system that we do our customers to.

I'm up to this point to the Del Paso board and the inter employees have been a pleasure to work with.

We a lot of work to do but we look forward to it but I can't leave this evening without again are also thanking Mr. Enrique your executive director for the last four years.

Saxon bourbon has been in combination discussions with Carmichael water district and San one water district.

This gentleman was at every single board meeting joint board meeting and workshop.

I spent a lot of time away from his family. As you know this process is not easy very difficult so whenever I had a question about the lawful process I pointed directly at him.

And he always had the answer so again we look forward to if you make a decision to operate in the system to treat customers what we do to again make sure they get that safe reliable and affordable water.

Thank you.

Madam Chair we do not have any more speaker slips. However we do have crystal hanging online crystal would you like to make any comments at this time.

Thank you.

I'm planning to ask partners I assisted the districts with their application to laugh go and I am here to answer questions that you may have and I really appreciate all the collaboration that has gone on between laugh go and the two districts that has made this all possible.

All right now turning it over to commissioners none other than commissioner Desmond who has has fearlessly led this for many years on behalf of his community.

That's a bit of an overstatement but thank you Madam Chair I appreciate that and I really appreciate the support from the commission and the support from Jose and the work by the laugh go staff and especially our executive director I want to echo those comments from both Carl and Dan.

Thank you and I certainly learned a lot through this whole process I think is several of us have gay already or commissioner Jones already knew all these things that we're occurring.

And I appreciate you being here and seeing Apollo again of course that is obviously this has been something that's extremely important to the community as well how this was going to end up.

One thing procedurally so the reason we didn't have to move forward with the forced dissolution is because they changed their board and they voted to approve the change or the merger with sex right and that's correct that is correct.

Okay and what division?

Okay district or division.

Yes.

Will the Dope House or manner water district be entirely within within one of those existing divisions and I don't know if.

The board will have to we'll have to reallocate it based on based on election law at the moment the Dope House or manner water district actually falls neatly in half of it in one division and the other half in another division.

Okay.

So but at some point consistent with election law they will revisit their their their divisions to make sure that the distribution of residents of constituents is equal within a certain percentage point of each other.

Okay so that still has to be determined but it could very well be that Del Paso manner residents would have the opportunity of possibly running in either two separate divisions within sex bourbon.

Yes.

Yeah.

I think that's important it's not it's not spelled out too much in the report with the with the what sex bourbon plans to do with that and you know Dan I don't know if you had any additional comments but.

Did you matter chair would you mind if I if Daniel or exactly could you could you kind of shed any light on what your discussions have been what your plan is.

So right now is we've received a draft map from the second county register office and as Jose mentioned Dope House is right in the middle of our district is one square mile so it gave us a draft so we have divisions four and five or falls in so three quarters of Dope House so falls in division five and a quarter of it goes into division four.

Okay so and I think it's important that the residents of Del Paso manner understand that they will you know have have the opportunity to run for a seat on the sex bourbon board I mean that that is going to be available to and be represented on that board.

In terms of the service area so now it looks like sex bourbon will have three service areas because they currently have a have a north and a south and this will be a third service area Del Paso manner service area.

And you mentioned I saw the one and it's a few slides back where you change the.

You can see it normally friction on campus for the house that is originally the green shaft of the Electronic container decent than guy's with four barrels for again and then he's the Corp manage

So, man or water district service area to me suggests that it could potentially be a smaller area than that entire

Del Paso, man or water district as it exists today. I'm looking at council. Is that

is that the case or not maybe just some insurance that this service area is going to actually

be the the entire service area that Del Paso, man or water district has today?

Yeah, and I'll ask the executive officer to help because this was a change that was requested by

the Sachs Appearance Council. The intent I believe is as you described but if

executive officer was anything else then? Yeah, the intent is to be basically that service area to be

all of the current service area for Del Paso, man. Okay. Okay. The request was made because originally,

as you can see from the from the language, we just called it a zone of benefit and they were saying

that that was a little bit too limiting because operationally and administratively they may

designated something else and they didn't want to run a foul of the Lafko condition by calling it

a zone of benefit when they could have used the community facilities district or an assessment

district or some other type of mechanism to do what we're asking them to do basically got it.

Carve it out and the again the language is is consistent with what they requested. Okay, I just

want to clarify that if it's you're not just carving out a specific piece of the current Del Paso

Manor Water District that is going to be this new service area it is going to be that service area

will be the current map of Del Paso Manor Water District. Correct. Yes. And then in terms of the

building for the ratepayers it's going to be a separate they will have in that service area

obviously they will have a separate rate structure for them and they talk about how after all the

rehabilitation are done and a lot of that's going to be dependent on what grants are available.

At some point the objective would be that all the ratepayers would be

build the same at some point. Is that the objective long term? That is the objective long term

because basically there's going to be a remedial period that transitions them from where they are

right now to where Sacramento suburban is. Obviously there's got to be some infrastructure

improvements and infrastructure replacement that's going to happen along the way.

So we know the starting point we know the end point. We don't know the time frame of the

end point but there's a lot of things that happen between in between those two points and the state

grants are probably going to be the biggest factor in that. Correct. Correct. All right. Thank you.

Thank you. Any other questions commissioners? I just want to echo our executive officer

and staff handled this masterfully. This could have gone in so many different directions.

This was fraught with a lot of disagreements and this is the best possible way it could have

ended up and a lot of it has to go to your leadership and working collaboratively with both districts

and being quite tenacious about this is the way and getting there. So thank you for your

leadership on this. I think this truly should be a master class on on the difficulty of how you do

things but the right way of how you do things. So commissioners, do I have a motion

of all of the recommended actions? I'll second that. Sorry. Go ahead. Thank you very much.

All right. We have a motion and a second. All in well, no vote. You may vote.

I'm all in you still all in favor say aye. Your motion passes unanimously.

Oh and that was Desmond and Jones. All right. Motion passes by 7-0. Again thank you everyone

for all of your work on this truly job well done by everybody. Nothing's perfect but this was

pretty darn close. Madam Clerk our next item. Madam Chair item 6 is receive update from General

Council on the Sacramento County reclassification of the LACO executive officer and provide direction.

Thank you DeAngela General Council for the commission. I'm happy to report that

I am told Tuesday March 11th the Board of Supervisors is going to consider the approval of the new job

description for the executive officer position as well as a new salary schedule based upon a county

conducted salary schedule. I have not received the staff report for the action item. It will be

published tomorrow. I'm told by tomorrow by 1 p.m. For the final information there was a salary

survey that was conducted. There is a proposed increase in the salary survey starting from the

existing principal planner maximum position up. I don't have the details of what at all is but it

is an increase. It will be published tomorrow and then I presume that after the Board of Supervisors

approval that perhaps we will reconvene that personnel committee that we reestablished last month

for an update in the next steps and to evaluate the Board of Supervisors action.

Thank you so much commissioners any comments? Hallelujah.

Thank you to our county supervisors who have led this as well. I really appreciate it because I think

we have all seen by what action we just took tonight are executive officer deserves a raise.

I'm sorry the Board of Supervisors action will implement the new salary which will be effective

at the next pay period so that will be implemented. I will report back what that is and what that

is but just so you know that is going to play in the place. I think March 23rd is the beginning of

the pay period. They will be effective. Thank you. Long time coming. Absolutely. Any other business

before us executive officer comments? Happy to report that the CalAFCO workshop will be in

well very end of April beginning of May down in Tamekula. We have asked your clerk Luis Washington to

join Miss Grabo and I down to the workshop for learning. You're discussing a master class.

Actually there is a session on the Paso manner relating to these government code provisions

and the outcome that we've observed tonight. That's it for my announcements and enough council

ahead any? I just know that most of you are aware of this. The Levine Act did change the beginning

of January. Just some changes on campaign contributions and the limitations and disclosures.

Those that it apply to are familiar with it because you are underlining organizations but just

wanted to mention that in case anything comes up and we will be having a reorganization proceeding

coming up soon where campaign contributions may be at issue. So if there's any concerns regarding

receiving campaign contributions from anyone that may be opposed or in favor or developer

for the upcoming reorganization, please reach out to executive officer myself so we can help you

evaluate that. Yeah and consistent with councils with councils update. The next commission meeting

could potentially be a big one. We're still trying to make sure that we've got everything

nailed down but your policy analyst Grabo will be happy to present the astrosheet.

I have reprinted it at this time so we're ready. Not a lot has changed from last month to this month.

I'll know new projects have been formally submitted but just to give you an update on some of our

projects. We do have the airport south and deshul MSR and SOI project rolling forward that potentially

might be coming up soon. Then we have an application from Omno Chimney Hartnell Water District.

They did submit an application. We drafted an RFP and will be released soon to hire

consultant to draft that MSR up. I think I mentioned last time we have a Saksu or annexation

request for a single family residence off of U Street in Analoupe area. Then consistent with

Floren County Water District, you guys approved the contract so we are kicking off that meeting with

a consultant later this month so they can start working on that. Still working on the Metchopire

MSR, RFP, item with that. We're still pretty busy. Then I just want to reiterate again as I have

stated, I have opinion from the FPPC. My alternate will be taking charge in my place when you consider

airport south because of the proximity of that project to my house. It conflicts me out.

So Vice Chair Little will be running the meeting in February. In addition to the reports that

Ms. Grave provided to you, we also have one additional project. The Saksu has

signal that they're ready to move on the Hood Franklin annexation which is consistent with

prior actions that the commission has taken in the past. So we'll get more details as

Thursday. Great. A lot of upcoming fun stuff if you really like this stuff. Do I have any

comments from our commissioners? All right. Seeing and hearing none, I will call this meeting adjourned

at 610.