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[Special City Council on May 19, 2020]
WILL COME TO THAT TUESDAY, MAY, 1920 20 SPECIAL MEETING OF THE CDA CONSOLE SLASH SUCCESSOR AGENCY.THE MA, THE MEETING WILL NOW COME TO OLDER.
UH, WE STILL NEED TO DO THE PLEDGE OF ALLEGIANCE LED BY THE MALE PROTEIN LOPEZ.
THE OTHER, WOULD YOU PLEASE HOLD RIGHTS? PLEASE TELL ME.
WE'LL PUT YOUR RIGHT HAND OVER YOUR HEART.
I PLEDGE ALLEGIANCE AS THE UNITED STATES OF AMERICA AND TO THE REPUBLIC.
JAMIR COUNCILMAN
NOW WE GO TO THE OVER-COMMUNICATION.
HOW MANY SPEAKER WE HAVE TODAY? TONIGHT, SO WE HAVE FOUR.
THREE OF THEM ARE, I WILL HAVE TO MAKE ONE PHONE CALL DURING THIS AS WELL.
FIRST SPEAKER IS MR JIM GURAVICH.
I WOULD APPRECIATE IF THE COMMENTS BELOW A READ INTO THE PUBLIC RECORDING AT TONIGHT'S CITY COUNCIL SPECIAL MEETING.
I AM DISAPPOINTED THAT THE FISCAL AGENDAS FOR TONIGHT'S COUNCIL MEETING ARE LIMITED TO A DECLARATION OF FISCAL EMERGENCY.
IT SEEMS TO ME THAT THE CITY COUNCIL SHOULD BE CONSIDERING AND DISCUSSING A SERIES OF THINGS THAT COULD BE DONE TO RESOLVE THE FISCAL EMERGENCY AS OTHER CITIES ARE DOING.
FOR EXAMPLE, I HAVE ATTACHED A DETAILED PLAN BY THE CITY OF SAN DIEGO FOR FIRE DEPARTMENT BROWN OUTS AS AN EXAMPLE OF SOMETHING THAT COULD BE CONSIDERED BY THE WEST COVINA CITY COUNCIL.
ONE OF THE REASONS THE RECENT TAX ELECTION FAILED BY SUCH A LARGE MARGIN, 80 TO 20% IS THAT THE VOTERS OF THE CITY DIDN'T SEE THE CITY COUNCIL PROVIDING LEADERSHIP ON CITY FINANCES.
ONE OF THE PRIMARY ACTIONS THE CITY COUNCIL SHOULD TAKE IS TO SCHEDULE PUBLIC HEARINGS TO RECEIVE RESIDENT INPUT ON NEXT YEAR'S BUDGET AS IS REQUIRED BY THE COUNCIL POLICY.
ANOTHER ACTION THE COUNCIL SHOULD TAKE IS TO DIRECTLY IS TO DIRECT THE CITY MANAGER TO SCHEDULE THE MEETINGS OF THE FINANCE AND AUDIT COMMITTEE THAT ARE ALSO REQUIRED BY COUNCIL POLICY.
ONE WOULD HOPE THAT THE CITY COUNCIL WOULD WANT ALL IDEAS ON THE TABLE
THE SECOND COMMENT IS FROM MS. DEBRA JOHNSON, PRESIDENT OF THE CONFIDENTIAL EXEMPT BARGAINING UNIT.
MAY I APPROACH HIM? COUNCIL MEMBERS, CITY STAFF AND VIEWERS AT HOME.
I AM THE PRESIDENT OF THE CONFIDENTIAL EXEMPT BARGAINING GROUP WITH THE CITY.
I AM WRITING TO ADDRESS THE COUNCIL THIS EVENING ON BEHALF OF THE CONFIDENTIAL EXEMPT BARGAINING GROUP IN PLACE OF COMING TO THE DIOCESE DUE TO THE CURRENT STATUS OF THE STATE AS WE KNOW IT.
AS YOU KNOW, THE CONFIDENTIAL EXEMPT BARGAINING GROUP IS COMPILED OF 21 MEMBERS THAT ARE SPREAD ACROSS ALL DEPARTMENTS AND ADMINISTRATIVE AND SUPPORT SERVICE POSITIONS.
WE ARE THE CITIZENS AND STAFF FIRST LINE OF CONTACT TO ASSIST THEM WITH THEIR CONCERNS AND REQUESTS.
WE MAKE SURE THAT THEIR CONCERNS ARE ADDRESSED IN A TIMELY MANNER AND ASSIST WITH VARIOUS PROCESSES TO ADDRESS THOSE CONCERNS.
WE HAVE BEEN HERE DAILY THROUGH THESE UNFORESEEN TIMES OF THIS PANDEMIC AND WE'LL CONTINUE TO BE HERE PROVIDING THE QUALITY OF SERVICES TO THE RESIDENTS, CUSTOMERS, AND STAFF.
I AM WRITING THIS EVENING TO EXPRESS OUR DEEP CONCERNS OF THE STATE OF THE CITY AS WE KNOW IT THIS EVENING.
WE UNDERSTAND THE URGENT NEEDS THAT ARE BEING ADDRESSED THIS EVENING AND I WANT TO LET YOU KNOW OF THE CONFIDENTIAL EXEMPT BARGAINING GROUP MEMBERS' WILLINGNESS TO CONTINUE TO WORK WITH THE COUNCIL MANAGEMENT STAFF AND CITIZENS TO HELP THE CITY THROUGH THESE UNCERTAIN TIMES.
DURING THIS TIME OF UNCERTAINTY, WE WILL CONTINUE TO PROVIDE THE HIGHEST QUALITY OF SERVICES TO THE RESIDENTS, STAFF AND THOSE THAT ARE JUST THE CITY AS MANY OF US HAVE DONE FOR MORE THAN 30 PLUS YEARS.
THESE LET US KNOW HOW WE CAN BE OF SERVICE.
THANK YOU FOR YOUR TIME AND WE LOOK FORWARD TO WORKING WITH YOU.
SINCERELY, DEBRA JOHNSON, PRESIDENT OF THE CONFIDENTIAL EXEMPT BARGAINING GROUP.
OUR NEXT COMMENT IS BY MR STEVE BENNETT, RESIDENT OF THE CITY OF WEST COVINA.
TONIGHT YOU ARE DISCUSSING THE POSSIBILITY OF DECLARING A FISCAL EMERGENCY IN LIGHT OF THE CURRENT COBIT 19 PANDEMIC CITY MANAGER.
CARMONEY HAS CITED THE REDUCTIONS TO THE PROPERTY
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TAX REVENUE, SALES, TAX REVENUE AND TRANSIT OCCUPANCY TAX REVENUE AS REASONS TO DECLARE THIS EMERGENCY.MR CARMONEY THEN TRIES TO TOUT THE CONTRACTING OF CITY DEPARTMENTS TO THIRD PARTY COMPANIES AS A WAY TO REDUCE EXPENDITURES AS RESIDENTS.
WE UNDERSTAND THAT ECONOMIC HARDSHIP THAT THE CITY IS GOING THROUGH, THAT YOU HAVE MADE THE PROBLEM WORSE BY YOUR ACTIONS AND INACTIONS.
THE LEADERSHIP OF THE CITY COUNCIL IS IN SERIOUS QUESTION AT THIS TIME AND THE DECISION TO DECLARE FINANCIAL HARDSHIP BECAUSE OF YOUR LACK OF LEADERSHIP AND THE LACK OF LEADERSHIP FROM THE CITY MANAGER IS SUSPECT.
AS YOU LIKELY REMEMBER, THE CITY COUNCIL VOTED NO TO INCREASE PAY AND BENEFITS TO OUR POLICE OFFICERS AND FIREFIGHTERS AT THE OCTOBER 15TH, 2019 AND NOVEMBER 5TH, 2019 COUNCIL MEETINGS BY ABOUT 2.5 MILLION PER YEAR.
THE COUNCIL APPROVED THIS EVEN THOUGH COUNTLESS RESIDENTS AND COMMUNITY MEMBERS SPOKE EMPATHETICALLY AGAINST THIS PROPOSAL DUE TO THE CITY'S FINANCIAL ISSUES AND LACK OF FISCAL RESPONSIBILITY BY THIS COUNCIL.
IN FACT, COUNCIL MEMBERS WERE QUOTED AS SAYING, I AM TAKING A LEAP OF FAITH THAT WE WILL HAVE THE FINANCES TO SUPPORT THIS.
AND THE CITY MANAGER WAS QUOTED AS SAYING, MY TRADITION, MY GOAL WOULD HAVE, WOULD BE TO HAVE A BUDGET WITH AN OPERATING MARGIN OF 5%.
THOSE ARE NOT RESPONSES AND ACTIONS OF THE CITY THAT TAKES THEIR FINANCIAL SITUATION RESPONSIBILITY.
IN FACT, ANOTHER COUNCIL MEMBER SAID THERE IS NO WAY WE CAN DIG OURSELVES OUT OF THE HOLE THAT OTHER COUNCILS HAVE PUT IN THE CITY.
THE QUESTION SHOULD BE ASKED, WHAT ARE WE GOING TO DO TO FIX THE LARGER HOLE THIS CITY COUNCIL CREATED? UM, I NEED TO MAKE A PHONE CALL.
SOMETHING THAT ALL OF US HAVE SPOKEN AT COUNCIL MEETINGS HAVE BEEN WARNING.
UM, YOU'VE HEARD JIM, YOU'VE HEARD STEVE TALK ON THIS IS WE HAVE 65 PEOPLE WATCHING ON YOUTUBE, YET ONLY FOUR SPEAKERS.
I KNOW THERE'S A LOT OF OUTREACH OUT THERE.
WHY IS THERE MORE PEOPLE SPEAKING ON IT? UM, ONE THING, FIRST AND FOREMOST, I KNOW PLACE OPINION.
I KNOW OF MANY RESIDENTS IN THE CITY, WE DID NOT WANT SEE A SOLUTION BEING COUNTY FOR FIRE OR POLICE.
WE WANT CONTROL OF OUR PUBLIC SAFETY.
NUMBER TWO, YOU KNOW, IT'S GOING TO BE TOUGH TIMES AHEAD.
AND WHAT I WOULD LIKE TO SEE DONE TO CUT COSTS IS FURLOUGHS AND YOU KNOW, THE ABILITY TO NOT HAVE THE PAIN BE AT ONE AREA TO BASICALLY I'M PUTTING IT ACROSS, EVERYBODY KNOW WE GOT TO MAKE ENDS MEET AT THIS POINT.
SO MAINTENANCE STAFF WAS CUT BY 21 PEOPLE.
AND UM, YOU KNOW, I SAW IT AGAINST THAT TOO BECAUSE HOW MUCH DO WE GAIN? LOOK AT HER PARTS NOW.
THEY DON'T LOOK AS GOOD AS THEY USED TO.
THAT WILL ALWAYS HAPPEN WHEN YOU OUTSOURCE WORK BECAUSE WHEN YOU'RE RUN, YOU HAVE BASICALLY PRIDE WHEN YOU HAVE PRIVATE TIMES, YOU HAVE CROSS MERCHANTS AND HOW CAN YOU CUT IT TO GET MORE PROFIT?
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YOU END UP NOT EVEN SAVING ANYTHING AT THAT POINT.UM, YOU KNOW, THIS IS GOING GONNA BE TOUGH.
AND THEY ALSO MEAN THAT WE REDUCE, UH, LEVELS FOR POLICE AND FIRE.
LIKE WHERE WE WERE TWO BARE BONES WHEN WE HAD THIS THING BACK IN 2008 WE'RE THERE AGAIN, YOU KNOW, THE STATE MADE THIS A POLITICAL ISSUE BY CLOSING ALL BUSINESSES, YOU KNOW, MAKING CHOICES OF KEEPING WALMARTS AND TARGETS OPEN BUT NOT BOTTLING POS.
MOM AND POPS ARE JUST AS CAPABLE OF STAYING OPEN TO OTHER ISSUES AND THEN OUR WORKFORCE STAYS OPEN.
EVERYBODY EARNS AN INCOME AND WHAT HAVE BEEN, AS MUCH AS A INITIALLY SAID, IT SEEMS THAT IT WAS A BIG PUSH TO BASICALLY UM, YOU KNOW, CAUSE ISSUE AND GO FOR FEDERAL FUNDING.
FEDERAL FUNDING HAS BEEN SHUT DOWN.
THEY'RE NOT GOING TO PAY FOR PENSION PLANS THAT BASED UPON OURSELVES, I SHOULDN'T SAY SO.
YOU COUNCILS ACROSS THE STATE DID TO OUR STATE.
SO SHE COUNSELS GOT US INTO IT.
WE ALL NEED TO WORK TOGETHER TO GET US OUT.
IT IS A QUIT MIDDLE, RIGHT? LISA? UH, PREVIOUS SPEAKERS.
OKAY, NOW WE, MOVING TO OUR AGENDA, WE HAVE ONLY ONE.
DISCUSSION OF A POTENTIAL BUDGET IMPACT ASSOCIATED WITH THE
SO WE ARE GOING TO HAVE A CITY MANAGER TO GIVE US A REPORT.
GOOD EVENING, MAYOR AND COUNCIL MEMBERS OF THE PUBLIC AS THE CITY MANAGER, DAVE CARMONEY.
I'D LIKE TO GIVE A BRIEF OVERVIEW PRESENTATION INTRODUCTION OF THE RESOLUTION WHICH I'M ASKING COUNCIL TO CONSIDER TONIGHT.
THE CITY HAS BEEN OPERATING UNDER A STATE OF LOCAL EMERGENCY SINCE MID-MARCH.
UNDER THIS CURRENT ARRANGEMENT WE HAVE BEEN FUNCTIONING EVERY DAY IN OUR EMERGENCY OPERATION CENTER.
WE'RE AS REQUIRED BY STATE AND FEDERAL LAW TURNING IN SITUATION STATUS REPORTS TO THE OFFICE OF EMERGENCY SERVICES AT THE STATE LEVEL AND TO FEMA AT THE FEDERAL.
OUR POLICE DEPARTMENT CONTINUES TO OPERATE UNDER A TACTICAL ALERT.
THREE ARE FIRE POLICE AND PUBLIC SERVICES DEPARTMENTS ARE ALL OPERATING FOLLOWING COLVIN DRIVEN PROTOCOLS FOR NOW SENIOR MEALS ARE BEING DELIVERED DAILY.
THERE HAS BEEN HOWEVER, A THREEFOLD INCREASE IN DEMAND FROM WHAT WE WERE PREVIOUSLY DOING.
SERVING CONGREGATE MEALS IN THE SENIOR CENTER.
CITY HALL CONTINUES TO FULLY FUNCTION AND AS OF THIS WEEK WE HAD A SOFT REOPENING TO THE PUBLIC AND WANT TO MAKE SURE WE GET ALL THE BUGS OUT OF IT BEFORE WE ANNOUNCE THINGS MORE BROADLY.
AS I REPORTED TO YOU LAST MONTH IN LATE APRIL, I'VE ENACTED A HIRING FREEZE AND SUSPENDED ALL DISCRETIONARY SPENDING.
I'VE MET WITH ALL THE LABOR GROUPS ON VARIOUS OPTIONS FOR COST SAVINGS AND HAVE UNDERTAKEN A COMPREHENSIVE LINE-BY-LINE ASSESSMENT OF CITY SERVICES, HAVE WORKED TO MODIFY CONTRACTS WITH VENDORS AND CONTRACTORS.
HERE WE ARE IN LATE MAY AND THOSE CUTS HAVE PROVEN TO BE NOT ENOUGH.
THE IMPORTANT CONVERSATIONS IN CITY HALL ARE NOW SHIFTING FROM WHAT WAS AND WHY AND WHAT'S NEEDED TO WHAT WE HAVE AND WHAT WE HAVE IS A CASHFLOW PROBLEM.
THE CITY'S RAINY DAY FUND IS DEPLETED AND FURTHER ACTION IS NECESSARY IMMEDIATELY TURNING TO THE RESOLUTION REGARDING DECLARING A FISCAL EMERGENCY.
THERE ARE 21 WHEREAS CLAUSES, AND I'M NOT GOING TO READ THEM ALL, BUT I'D LIKE TO HIGHLIGHT FOUR OR FIVE OF THEM OVER THE PAST FIVE YEARS.
THE CITY'S UNASSIGNED GENERAL FUND BALANCE HAS CONTINUOUSLY DECLINED AND FISCAL YEAR 1415 THE UNASSIGNED FUND BALANCE WAS $20,500,000 IN 1516 IT WAS 15,030 2016 17 THE ASSIGNED ON BALANCE WAS 14 MILLION IN 1718 THE ASSIGNED FUND BALANCE WAS 11.9 MILLION IN 1819 THE UNASSIGNED FUND BALANCE WAS 9.8 MILLION AND FOR FISCAL YEAR 1920 AND ASSIGNED FUND BALANCE IS PROJECTED TO BE 1.9 MILLION.
WE HAVE A CASH FLOW PROBLEM IN ORDER TO ENSURE TO THE MAXIMUM EXTENT POSSIBLE.
THE ESSENTIAL SERVICES OF CITY ARE
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NOT JEOPARDIZED, THAT PUBLIC HEALTH AND SAFETY ARE PRESERVED.THE CITY IS ABLE TO MEET ITS OBLIGATIONS WHEN THEY'RE DUE.
THE CITY IS ABLE TO PAY ITS EMPLOYEES FOR WORK THEY PERFORM.
THE CITY NEEDS TO TAKE IMMEDIATE AND COMPREHENSIVE ACTION TO FURTHER REDUCE SPENDING INCLUDING BUT NOT LIMITED TO SPENDING ON PERSONNEL AND BENEFIT COSTS.
THE ECONOMIC IMPACTS OF THE COVEN.
19 PANDEMIC HAS BEEN SIGNIFICANT IN TELLING AND THE CITY'S 3,278 BUSINESSES ARE ALL EXPERIENCING SUBSTANTIAL LOSSES BECAUSE OF THE ECONOMIC IMPACTS ASSOCIATED WITH THE COBIT 19 PANDEMIC.
IT'S VERY DIFFICULT TO PREDICT AT THIS POINT IN TIME.
HOWEVER, CITY STAFF ESTIMATES A POTENTIAL LOSS OF 2.8 MILLION IN GENERAL FUND REVENUES, ESPECIALLY SALES TAX, TRANSIENT OCCUPANCY, HOTEL TAX, PROPERTY TAX FOR FISCAL YEAR 1920 AND A CONTINUING LOSS IN GENERAL FUND REVENUES FOR THE NEXT FISCAL YEAR 2021 WE WERE ESPECIALLY CONCERNED LAST FRIDAY, WE RECEIVED WORD FROM THE LA COUNTY DEPARTMENT OF AUDITOR CONTROLLER WHO NOTIFIED THE CITY THAT DUE TO DELAYED PAYMENTS OF PROPERTY TAXES DUE TO THE PANDEMIC, THE CITY'S PROPERTY TAX REMITTANCE WILL BE LESS THAN EXPECTED.
AND AT THE SAME TIME, THEY NOTIFIED US THAT OUR SUCCESSOR AGENCY WOULD BE DELAYED OF ITS PAYMENTS DUE TO COBIT 19.
THE UM, JUNE ONE 2020 PROPERTY TAX RATE REMITTANCE WILL BE LESS THAN EXPECTED.
SO WE'RE AT A POINT WHERE I THINK, UM, SERIOUS AND IMMEDIATE ACTION IS NECESSARY.
THE RESOLUTION IN FRONT OF YOU.
COUNCIL ASKS YOU TO IN SIX, UM, CLAUSES, UM, RESOLVE.
I'LL JUST READ A FEW OF THOSE.
UM, THE CITY COUNCIL HEREBY AUTHORIZED THE CITY MANAGER TO TAKE ANY AND ALL ACTIONS NECESSARY TO ADDRESS THE FISCAL EMERGENCY INCLUDING BUT NOT LIMITED TO MEASURES RELATING TO PERSONNEL AND BENEFIT COSTS, OPERATIONS REDUCTIONS AND SERVICE LEVELS AND REVIEWING AND NEGOTIATING CHANGES TO LABOR AGREEMENTS, SERVICE AGREEMENTS AND FRANCHISE AGREEMENTS.
TO THE EXTENT PERMITTED BY LAW MANAGEMENT SHALL MEET WITH ALL NINE LABOR GROUPS REGARDING THE FISCAL EMERGENCY AND POSSIBLE COST SAVING MEASURES.
ANY MODIFICATIONS TO THE LABOR AGREEMENTS SHALL BE SUBSEQUENTLY APPROVED BY THE CITY COUNCIL.
LIKEWISE, MANAGEMENT IS DIRECTED TO MEET WITH VENDORS AND FRANCHISEES PROVIDING SERVICES TO THE CITY TO NEGOTIATE AND APPROVE COST SAVING MEASURES.
AND AGAIN, ANY MODIFICATIONS TO SERVICE AGREEMENT SHALL BE SUBSEQUENTLY RATIFIED BY THE CITY.
SO IT'S A SIMPLE RESOLUTION WITH, WITH MAJOR IMPACT.
AND I'M AVAILABLE TO ANSWER ANY QUESTIONS I RECOMMEND THIS ADOPTION.
CITY COUNCIL, ANY BOTH? THAT HAS QUESTION.
I ACTUALLY JUST HAVE A COMMENT.
UM, OBVIOUSLY, UH, YOU KNOW, THAT I WORKED FOR CITY OF LOS ANGELES AND, UM, ALONG WITH EVERY OTHER CITY, YOU KNOW, I'LL BE, ME PERSONALLY AS A CITY WORKER, I'LL BE TAKING FURLOUGHS.
UH, WE'LL PROBABLY BE TAKEN FOR A LOAD ON THE NEXT FISCAL.
AND, UM, FROM WHAT I'M HEARING IS, YOU KNOW, THERE'S GONNA POSSIBLY BE OTHER ISSUES CAUSE IT ALL CITIES IS BEING IMPACTED BY THIS.
UM, THIS COVEN HAS, UM, MANY RIPPLE EFFECTS.
BUT, UM, UM, I KNOW WITH YOUR SECTION SIX, I KNOW THAT YOU'RE MEETING WITH ALL NINE LABOR GROUPS REGARDING THE FISCAL EMERGENCY AND POSSIBLE COST SAVING MEASURES.
UM, I JUST HOPE THAT THE UNIONS CAN WORK WITH THE CITY TOGETHER, UM, YOU KNOW, AND THINK FOR THE BETTERMENT OF THE ENTIRE CITY.
SO I JUST HOPE THAT, YOU KNOW, EVERYONE, I MEAN, WE'RE ALL IN THIS TOGETHER AND I JUST HOPE THAT THE UNIONS AND THE CITY CAN WORK TOGETHER, UM, AND FIND WAYS, BUT THAT, THAT'S, THAT'S PRETTY MUCH IT.
AND ALTHOUGH THE CITY COUNCIL MEMBER, ANY COMMENT OR QUESTION? COUNCILMAN JUSTIN CONSUMMATE JOHNSON.
YOU KNOW, I'M ON NEXT LINES WITH, UH, MAYOR, UH, LOPEZ TRO ON THIS.
BUT, YOU KNOW, I WAS KIND OF HOPE AS YOU KNOW, I TRUST THE CITY MANAGER.
I THINK WHEN HE'S DOING HIS IN LINE, UH, A LITTLE BIT ABOVE AND BEYOND, KEEP HIM IN OUR CITY SO FAR ABOVE GROUND.
HIM AND A FINANCE DIRECTOR, ROBIN, I THINK THEY'RE DOING A FANTASTIC JOB, BUT YET WE HAVE TO TRY AND GO.
THE UNIONS HAVE TO UNDERSTAND IF THE CITY GOES DOWN, ALL UNION CONTRACTS, BABY BOYS.
SO I WOULD HOPE THEY WANT TO WORK WITH US TO KEEP THE CITY FROM GOING UNDERGROUND BECAUSE WE CAN'T AFFORD FOR OUR CITY TO GO BANKRUPT IN ANY WAY THAT WOULD DEVASTATE THE CITY WITH A BOND THAT
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WE ARE ELIGIBLE FOR.SO I'M KIND OF HOPING THAT WE CAN MOVE FORWARD WITH THIS.
AND HOW ABOUT UNIONS TALK AT THE NEGOTIATING TABLE AND WE CAN WORK SOMETHING TOGETHER.
ALL OF US TOGETHER AS ONE BECAUSE THE CITIES AS ONE, WE WILL ACCOMPLISH A LOT OF THINGS IF WE FIGHTING AND BE DIVIDED.
WE'RE NOT GONNA ACCOMPLISH ANYTHING.
COUNCILMAN JOHNSON, ANY OTHER COUNCIL MEMBER? ONE.
YOU HAVE A COMMENT OR A QUESTION, A COUNCIL MEMBER.
I DO KNOW IN READING THIS RESOLUTION THAT WE JUST GOT A COPY OF EARLIER TODAY, I'M STRUCK BY THE FACT THAT WE ARE BLAMING ALL OF THIS.
THIS CITY IS NOT IN THIS SITUATION FOR THE COBIT 19 AND WE'RE BEING ASKED TO APPROVE THIS RESOLUTION WITH NO UNDERSTANDING OF WHAT REIMBURSEMENTS WE MAY GET FOR SPENDING WE'VE HAD FOR COBRA 19 WHAT'S SPENDING WEEK ADD HAD DUE TO COBRA 19 AND WHAT HAS JUST BEEN, YOU KNOW, WE APPROVED IT BUT I JUST, THAT WAS DOWN TO THE SPEC AND THERE HAVE BEEN MANY BUDGET AMENDMENTS AND UH, EVEN CONTRACTS THAT I VOTED AGAINST.
SO HOW DOES THAT PLAY INTO WHAT WE'RE FACING? I MEAN, WHEN DO WE START HAVING THE DISCUSSION OF WHAT ARE THOSE NUMBERS ARE, HOW MUCH HAVE YOU SPENT ON SILVER KNIGHTS REIMBURSE? HOW MUCH OF OUR BUDGET AMENDMENTS COST US? SO YES, WE BASICALLY GOT LED INTO A PERFECT STORM UNDER COBRA 19 WHERE WE CAN NO LONGER IGNORE AND TRY AND SWEEP UNDER THE RUG AND HOPE THAT THINGS ARE GOING TO TURN AROUND.
UH, IT'S UNFAIR TO, YOU KNOW, I'VE HEARD A LOT OF THE RESIDENTS FLAME THE POLICE AND FIRE YOU.
AND I'LL REITERATE WHAT I SAID BACK WHEN CONTRACTS WERE VOTED FOR, WHICH IS WHAT WAS THE MAJORITY OF THE COUNCIL THAT PUT THESE CONTRACTS IN PLACE.
AND WHILE THERE HAS BEEN SOME GOOD AND SOME OF THE PEOPLE LEAVING HAVE STOPPED, WE DIDN'T HAVE THE MONEY AND NOW THAT TOBIN 19 HAS HAPPENED, WE STILL DON'T HAVE THE DATE.
AND I MEAN, WHEN DO WE REALLY START TALKING ABOUT OUR NUMBERS AND NOT TRY AND SAY THIS WAS OVERNIGHT BECAUSE THERE'S SYSTEMIC FOR 20 YEARS AND NOW WE'VE REACHED THE END OF THE ROPE AND I DON'T KNOW HOW YOU DO THESE NEXT STEPS.
AND I CERTAINLY DON'T WANT TO CALL IT A FISCAL EMERGENCY AND BLAME IT ALL ON KOBE BECAUSE THAT'S NOT THE REASON WE'RE HERE.
SO WHEN DO WE START HAVING THE HARD DISCUSSIONS AND THE OPEN SESSIONS? OKAY.
THAT'S ALL MEMBERS SHOULD MAKE HER.
ANY OTHER COUNCIL MEMBER HAVE ANY COMMENTS OR QUESTIONS? COMMENTS? MR MAYOR? OKAY, I HAVE A QUESTION.
UH, MY QUESTION WOULD BE HOW CAN, OKAY, UH, COUNTY CONTROL CAN STOP PAY US.
THEY KNOW, OH, THE CTS SUFFERING RIGHT NOW, HOW CAN THEY DO THAT? OKAY.
THEY KNOW EVERYBODY'S SHOWED OFF CASH AND NOW THAT IF THEY DON'T PAY US, HOW CAN WE COME OUT ANY MONEY TO PAY THOSE BUMPS? AND IF THEY DON'T PAY US ALL THOSE PROPERTY TAXES THAT THE MONEY THEY OWE US.
SO, AND THE VEHICLE TO JANUARY.
THAT IS ABOUT, SO, SO WHAT KIND OF LEGALITY THEY CAN JUST DON'T PAY WHAT THEY HAVE TO PAY US SO WE CAN PAY THE BILL AND CITY MANAGER.
DO WE HAVE ANY WATT ANY WAY TO AS CITY.
THE COUNTY TO PAY THEIR BAIL TO US BECAUSE THEY DIDN'T DO IT.
MY POINT IS THEY DIDN'T DO TOO MUCH OF A THING.
WHERE'S THE MONEY? OKAY, WHY DON'T THEY PAY US CITY MANAGER? CAN YOU SHARE WITH US WHAT CAN WE DO TO ASK THEM TO PAY? UM, AGAIN, THIS IS CITY MANAGER, DAVE CARMONEY.
WE'VE BEEN WORKING ON THAT ISSUE, UM, QUITE A BIT.
STARTING FRIDAY WHEN WE GOT THE NEWS AND ON SATURDAY AND AGAIN, FIRST THING WHEN WE GOT TO THE OFFICE ON MONDAY MORNING, I'M GOING TO ASK OUR, OUR FINANCE DIRECTOR TO SPEAK TO THAT.
I THINK, UM, WE'VE GOT A LIGHT AT THE END OF THE TUNNEL ABOUT THAT, BUT WE'RE, UM, I'M GOING TO ASK HER TO ADDRESS THAT QUESTION.
SO, SO BASICALLY DID NOT GOING TO PAY ALL THE CT.
AND SHE HAD JANUARY'S SO HOW MUCH THEY, THEY SHOULD PAY US, I THINK WHAT $6 MILLION, THE BOND PAYMENTS THAT ARE, THAT ARE DUE.
MR MAYOR, THIS IS ROBIN BYRD, THE FINANCE DIRECTOR.
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ARE DUE BETWEEN NOW AND DECEMBER 31ST ARE SIX AND A HALF MILLION DOLLARS.UM, WE WERE ON THE PHONE THIS MORNING.
UH, CITY MANAGER AND I WITH JASON GONZALES ARE, UM, ARE, UM, UP IN SACRAMENTO.
UH, HE HOBBYISTS, HE THANK YOU, OUR LOBBYISTS.
AND, UM, WE LET HIM KNOW AND HE HAD ALREADY BEEN WORKING ON IT, ALTHOUGH I ASKED HIM IF ANY OTHER CITIES HAD CONTACTED HIM.
HE SAID NOT YET, THAT WE WERE THE FIRST ONES, BUT HE HAD ALREADY HEARD ABOUT IT, WAS TALKING TO THE DEPARTMENT OF FINANCE.
UM, BECAUSE WE BELIEVE THAT THE LAW WAS VERY CLEAR WITH THE WINDING DOWN OF THE SUCCESSOR AGENCIES AND THAT, UM, THE BOND PAYMENTS TAKE PRIORITY OVER EVERYTHING BECAUSE, UM, THE LAST THING THAT WE WANT TO DO IS DEFAULT ON ANY BONDS.
SO, UM, HE IS WORKING ON IT AND WE SHOULD BE, UM, HOPEFULLY RECEIVING THAT MONEY.
SO SCHOLARS, SO WE, THEY ALL US SIX AND A HALF MILLION DOLLARS
THERE WERE OTHER THINGS THAT WERE ON THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND UM, SO THEY ARE GOING TO WITHHOLD THOSE MONIES.
BUT AGAIN, OUR MAIN CONCERN IS THE THREE BOND ISSUES THAT WE HAVE OUTSTANDING THAT UM, PAYMENTS WILL BE DUE.
SO HOPEFULLY THEY UNDERSTAND THAT CANNOT DO THIS TO US.
BECAUSE WE HAVE TO KNOW SIX AND A HALF MILLION DOLLARS TO PAY AGAIN AND IS SUCCESSFUL AGENCY AND THE OKAY.
PROBABLY TECH, THEY HAVE TO PAY THE BUM.
THIS IS, THIS IS THE ONE THING, ONE QUESTION, THE SECOND THING, IT'S MORE LIKE A COMBINATION.
UH, WE, I WOULD BASICALLY GENERAL THUMP PAY 78%, 80% OF OUR PUBLIC SAFETY AND UH, UH, 52% OF OUR GENERAL FUNDS COME FROM PROPERTY TAXES AND THE SALES TAX.
I WENT TO FOUR OR FIVE TIMES ALREADY.
LET'S COME IN FRONT OF THE GENERAL FUND COMING FROM PROPERTY TAX AND, AND SALES TAX.
AND NOW DO THROUGH THIS PANDEMIC SINCE MARCH TO NOW AND IT WAS SHUT DOWN THE BUSINESS.
I CAN GUARANTEE YOU, I CAN SEE WE HAVE NO SALES TAX.
AND THE PROPERTY TAX, A LOT OF PEOPLE CAN NOT PAY THEIR PROPERTY TAX, SO CAN SEE THE REDUCE SO WE CAN SEE THE MAJOR MAJORS.
ALL OF THE INCOME REVENUE ARE COMING INTO US.
SO, SO, SO I UNDERSTAND WHERE THIS COMING FROM.
AND IF THE COUNTY DON'T PAY US, PLUS WE DON'T HAVE INCOME FROM THE PROPERTY TAX AND THE SALES TAX THAT THEY PAY FOR INTO OUR GENERAL FUND WHERE WE GET THE MONEY TO PAY OUR POLICE AND FIRE AND OUR OPERATION.
SO, SO THIS IS THE MAJOR CONCERN AND I THINK THE POVERTY YOU'RE TALKING ABOUT IS A CASHFLOW ISSUE.
SO MEANING IT'S NOT A BUDGET ISSUE IS MORE LIKE A CASHFLOW.
WE DON'T HAVE A CASH TO PAY OUT.
SO, SO THIS IS A MAJOR CONCERN FROM THE CITY COUNCIL, SO WE NEED TO FIND ANY WAY TO PAY OUR BILL.
SO, SO ANYWAY, THIS IS, SO ROBIN MAYBE CAN SHED SOME LIGHT WITH US.
IT'S MY ANALYZE IS, AM I CORRECT? YES, THAT'S CORRECT.
ANY OTHER CITY COUNCIL? HAVE ANY, UH, ANY OTHER, OKAY.
ANY COMMENT OR QUESTION TO ALL WAS, UH, OUR FINANCE DIRECTORS OR A CITY MANAGER? WELL, I HAVE A QUESTION.
AND, UH, BECAUSE IT SOUND LIKE WE HAVE A MAJOR REVENUE INCOME ISSUE TO COME IN DUE TO WE ALREADY KNOW FOR THESE THREE MONTHS, IT'S JUST HORRIBLE.
AND THEN NOW THE COUNTY DON'T PAY US.
AND THEN WE HAVE ANOTHER BILL THAT IS DUE.
SO, SO HOW THE, LIKE WE HAVE A DOUBLE JEOPARDY.
HOW IT'S SQUEEZED FROM BOTH SIDES.
SO, SO I EVEN DON'T KNOW HOW MUCH CUT YOU CAN TO PAY THOSE OF MAJOR DEFICIT SO YOU CAN JUST SHARE WITH US.
WHAT IS YOUR POTENTIAL SUBJECTION? AND WE CAN GO THROUGH THIS.
THIS IS MORE LIKE A MONTH AND WE NEED TO, I HAVE A CONFIDENCE, I THINK WHAT'S GOING IN THE FUTURE IS VERY BRIGHT.
BUT HOW WE OVERCOME CURRENT THIS COUPLE OF MONTHS OR THIS YEAR, CITY MANAGER, CITY, CITY MINISTRY.
AND I'D LIKE TO TRY AND ANSWER THAT TO THE BEST I CAN BASED ON WHAT WE KNOW TODAY.
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WE KNOW THAT OUR EMPLOYEES ARE THE CITY'S STRONGEST ASSET.THESE ARE THE PEOPLE THAT PROVIDE THE SERVICES.
UM, THEY GET PAY, THEY GET BENEFITS AND THEY THEY GET PAYING BENEFITS BECAUSE THEY'RE PROVIDING ESSENTIAL SERVICES.
MOST OF THAT IS IN THE PUBLIC SAFETY SIDE.
I COULD MAKE REDUCTIONS, WHAT COULD I CUT? I COULD CUT IN CITY HALL AND INTEND TO FURTHER, I COULD CUT SERVICE CONTRACTS, UM, THINGS LIKE STREETS WEEPING OR PARK MAINTENANCE.
UM, BUT AT THE END OF THE DAY WE'RE GOING TO HAVE TO LOOK QUITE CAREFULLY AT THE PACKAGE OF SERVICES THAT THE CITY PROVIDES ITS RESIDENCE IN THE FIRE SERVICE.
I THINK THE QUESTION WILL BECOME STANDARD OF CARE.
CAN WE MEET THE NATIONAL STANDARD IN TERMS OF NSPA CAN WE BE AT A FIRE SCENE WITHIN FIVE MINUTES, 90% OF THE TIME GUARDING EMS RESPONSES? CAN WE BE THERE WITHIN EIGHT MINUTES AND 59 SECONDS? 90% OF THE TIME THESE ARE LIFE AND DEATH DECISIONS AND I THINK ONE THING WE KNOW FOR SURE IS THE WAY THAT THE CITY HAS BEEN PROVIDING SERVICES IN THE SHORT TERM AND MAYBE INDEFINITELY WON'T BE THE WAY THAT IT PROVIDES SERVICES GOING FORWARD.
IF IT'S YOUR HOUSE ON FIRE, YOU WANT SOME RESOURCES ON SCENE.
IF IT'S ONE OF YOUR LOVED ONES THAT NEEDS, YOU KNOW, A HEART ATTACK VICTIM TENDED TO, YOU WANT, YOU WANT SOME, SOME EQUIPMENT AND SOME TRAINED PERSONNEL THERE QUICKLY, BUT THE WAY THAT THE CITY HAS BEEN DOING IT, UM, WHO KNOWS MAYBE WHAT VERY QUICKLY HAVE TO FIND SOME OTHER WAYS.
MAYBE WE CAN REGIONALIZE, MAYBE WE CAN PARTNER, MAYBE WE CAN FIND EFFICIENCIES IN THE OPERATION AND SHIFT COSTS FROM, FROM ONE CASK COST CATEGORY TO THE NEXT.
ALL OF THESE THINGS ARE IN PLAY TODAY, BUT MOST OF THE MONEY IS IN THE PERSONNEL SIDE AND WE'RE GOING TO HAVE SOME QUITE SERIOUS MEETINGS WITH THE LABOR GROUP STARTING TOMORROW.
UM, I'LL, I'LL BE REPORTING BACK TO YOU RIGHT AWAY AND UM, ASKING THE COUNCIL TO RATIFY THE DECISIONS THAT I RECOMMEND TO YOU THAT I BELIEVE ARE NECESSARY, BUT, BUT UM, WE'RE GOING TO NEED TO BE VERY, VERY VIGILANT AND VERY CAREFUL AS WE DO THIS.
UH, A POINT I'D LIKE TO MAKE FISCAL EMERGENCY, I THINK SHOWS THAT THE CITY ACKNOWLEDGES THAT IT HAS A AND THAT THIS QUICKLY DEVELOPING THROUGH ITS SOUND MANAGEMENT, UM, A PLAN TO PROVIDE SERVICES GOING FORWARD.
WE HAD A CONVERSATION THIS WEEK WITH THE PEOPLE THAT ARE ABOUT TO BE UNDERWRITING $205 MILLION WORTH OF PENSION OBLIGATION BONDS.
FOR US, IT'S AN UNFUNDED LIABILITY.
WE'RE NOT CARRYING A CALPERS AT A RATE OF 7% AND WE TALKED TO THEM OR WHAT'S THE IMPLICATION OF A FISCAL EMERGENCY ON THAT TRANSACTION.
THEY ACTUALLY THINK THAT IT SHOWS THAT WE'RE RESPONDING APPROPRIATELY TO A CRISIS THAT AFFECTING EVERY CITY IN THIS STATE AND CITIES BIG AND SMALL ACROSS THE COUNTRY.
UM, I DON'T INTEND TO MISS ANY PAYMENTS.
CITY HAS OBLIGATIONS, WILL MEET THEM THAT HE HAS BOND PAYMENTS TO MAKE.
WE PLAN TO DO THAT AND WE'RE NOT TAKING ANY REDUCTIONS FROM, FROM THE STATE, FROM THE COUNTY.
UM, WE, WE WERE RESPONDING AGGRESSIVELY TO THE, TO THE PROPERTY TAX QUESTIONS THAT CAME UP FRIDAY BECAUSE THAT'S LONG BEEN A REVENUE WHICH IS RELIABLE AND SECURE AND VERY PREDICTABLE.
BUT, UM, WE NEED TO BE OPTIMISTIC.
WE NEED TO POSITION THE CITY TO COME OUT OF THIS STRONGER THAN WE WENT IN.
AND WE'VE GOT SOME VERY GOOD IDEAS THAT UM, WE'RE GOING TO BE WORKING WORKING ON OVER THE NEXT COUPLE OF WEEKS AND WE'LL, WE'LL BE BACK TO YOU WITH SOME OF THOSE RECOMMENDATIONS IN VERY SHORT ORDER.
AND OTHER CITY COUNCIL MEMBER, ANY COMMENT OR QUESTION? OTHERWISE? UM, I'M GOING TO HAVE ANY
I WANT TO KNOW HOW I UNDERSTAND THAT OUR REVENUE IS BEING DELAYED AND WILL ALSO BE CUT BECAUSE OBVIOUSLY SALES TAX AND THINGS AREN'T OPEN.
WE'RE NOT GOING TO GET A TOUCH SALES TAX.
BUT WHERE ARE THE NUMBERS FOR THE COUNCIL ON WHAT ADDITIONAL COSTS WE HAD BECAUSE OF COVEN 19 THAT HAS PUT US IN THIS SITUATION AND WHAT MAY HAVE BEEN UM, BUDGETING ISSUES.
I GUESS THE NICE WAY TO PUT IT, I MEAN I'M BEING ASKED AS A COUNCIL MEMBER TO VOTE FOR FISCAL EMERGENCY AND GIVE STAFF CERTAIN POWERS.
[00:35:01]
DON'T HAVE THE NUMBERS BESIDES WHAT SHOWING WHAT OUR ENDING BALANCE HAS BEEN AND WHERE WE'VE BEEN TRENDING.BUT WE DON'T HAVE ANY INFORMATION ON WHAT COSTS ARE GOING TO BE REIMBURSED.
IS THIS A LONGTERM HOLE? IS IT ONCE REVENUE STARTS COMING UP, WILL WE BE ABLE TO FIX IT? WE DON'T HAVE ANSWERS TO THOSE QUESTIONS YET.
I'M BEING ASKED AS A COUNCIL PERSON TO IMPLEMENT HAT AND FURLOUGHS AND REDUCTION IN SERVICE AND EVERYTHING ELSE WITHOUT THE UNDERLYING INFORMATION FOR THIS ITEM.
AND I MEAN, DOES THE CITY MANAGER OR FINANCE DIRECTOR HAS ANYTHING TO SAY? ANY NUMBERS THAT THEY CAN GIVE US, ANY NUMBERS THEY'LL BE SENDING OUT? I MEAN, WE'VE BEEN TURNING IN OUR FEMALE REPORTS.
ARE WE GETTING AN AMPLE HERE? IF I MAY ANSWER.
AS A COUNCIL MEMBER, THE CHARMAINE QUESTION, IT'S QUITE IMPORTANT TO ME THAT THE COUNCIL ACT UNANIMOUSLY ON THIS MATTER.
I, I THINK IT'S CRITICAL THAT WE RECOGNIZE COLLECTIVELY THAT THE CITY HAS A CASHFLOW PROBLEM AND IS VERY IMMEDIATELY WORKING ON A PLAN THAT TO TURN THAT AROUND.
IN TERMS OF OUR IMMEDIATE REIMBURSABLE FOR COBIT 19 PANDEMIC, WE HAVE BEEN KEEPING FAIRLY METICULOUS RECORDS OF EVERY SINGLE COST.
IF THERE'S NEEDS FOR EXPENDITURES FOR NEW PERSONAL PROTECTIVE EQUIPMENT FOR FIREFIGHTERS OR POLICE OFFICERS, NEW PROTOCOLS, ANYTHING DIRECTLY RELATED TO COVERT.
AND WE STOOD UP, UM, A COVERT TESTING CENTER.
WE GOT THE GRANT MONEY TO DO THAT.
WE BROUGHT IN SOME TRAILERS IN CASE WE NEEDED TO QUARANTINE FIRST RESPONDERS THAT WAS DIRECTLY FUNDED THROUGH OES, FEMA.
SO ALL OF THE DIRECTLY RELATED COSTS BEING BORN BY THE CITY TO RESPOND TO THE CRISIS ARE BEING SUBMITTED THROUGH THE OES FEMA SYSTEM FOR REIMBURSEMENT.
THE THING THAT IS TRIGGERED THIS CASHFLOW PROBLEM, OUR BUDGET WAS ON TRACK THROUGH MARCH.
I THINK WE WERE GOING TO BE WITHIN IN, IN FOR EXAMPLE, THE FIRE DEPARTMENT.
WE WERE GOING TO BE WITHIN 1% OF OUR BUDGETED NUMBER.
WE WEREN'T MEETING OUR NUMBERS UNTIL THE SALES TAX FELL OFF A CLIFF.
THE STORES ARE CLOSED, NOBODY'S BUYING.
THINGS ARE JUST GOING TO BE DIFFERENT AND THAT'S KIND OF WHAT GOT US WHERE WE ARE.
WE'RE HERE BECAUSE THE MAJOR REVENUES, THE TRANSIENT OCCUPANCY TAX, ET CETERA, HAVE BEEN JUST PERFECTLY TERRIBLE SINCE, SINCE COBIT HIT.
I THINK WE'RE GOING TO COME OUT OF IT AND IF I OWE YOU AND I THINK I DO SOME MORE NUMBERS IN TERMS OF EXACTLY WHAT'S BEEN REQUESTED AND HOW MUCH IS IN THE PIPELINE TO BE CONSIDERED OR APPROVED.
UM, W I'LL DO MY VERY BEST TO GET THAT FOR YOU AS WE DO THIS OTHER, BUT, UM, I'M, I'M IN MY OPINION SEEING THAT THIS, THIS CONDITION WE'RE IN TODAY IS A DIRECT RESULT OF LOSING THOSE MAJOR REVENUES BECAUSE OF COVEN 19.
CITY CITY MANAGERS ON ALL THE CITY COUNCIL HAVE ANY ALDO QUESTION? NONE.
DO I HAVE A MOTION TO APPROVE REGARDING? YEAH, GO AHEAD.
I WOULD LIKE TO MAKE A MOTION TO MOVE THIS ITEM FORWARD.
DO I HAVE SECOND? I'LL SECOND.
SO I HAVE A MOTION MOVED BY COUNCILMAN JOHNSON AND THE SECOND BY MAIL PROTEIN.
AND ASSISTANT CITY CODE ROLL CALL PLEASE.
HI, COUNCIL MEMBER SHOEMAKER PRO TIM LOPEZ.
AND THEN TRY TO DO, I KNOW YOU WORK ON SATURDAY AND SUNDAY, WE NEED TO PULL OURSELVES OUT OF THIS SITUATION.
I KNOW THIS DURING THE PANDEMIC, THIS IS EVERYTHING'S EVERYBODY'S UPSIDE DOWN AND THAT, AND THEN I WANT TO THANK OKAY HOURS, CITY STAFF, EVERYBODY.
AND THEY, EVERYBODY WORKING SO HARD.
I WITNESSED MY OKAY IN MY EYE AND THEN I WANT TO THANK EVERYBODY, BUT, BUT AGAIN, DUE TO THIS FINANCIAL DIFFICULTY, WE HAVE TO DO SOMETHING AND THE HOPEFULLY, OKAY.
WHEN EVERYTHING TURNED AROUND, NOW WE CAN OKAY.
AND THE DO THE THING AND COMPENSATE THE PERSON AND DOING THIS TIME
[00:40:01]
AND EVERYBODY SUFFERED.SO, SO OTHER THAN THAT, I THINK MOST IMPORTANT THINGS, WE HAVE TO PAY OUR ECONOMY BACK.
WE HAVE THE PEOPLE'S LIFE BACK.
BUT THE FIRST THING IS TRY TO MAKE SURE OUR RESIDENTS SAFE AND HEALTHY.
DO ANY OTHER CITY COUNCIL HAVE ANY COMMENTS? NONE.
WE PUT THE TRUST AND I WILL SEE THESE STATS AND UH, I'M STRONG CONFIDENCE.
I WILL FUTURE IS BRIGHT RIGHT NOW.
WE MIGHT HAVE A DISC OBSTACLE WE KNOW WE WILL OVERCOME, BUT THANK YOU SO MUCH.
AND DO I HAVE A MOTION TO A GYM OR I'LL MAKE A MOTION THAT I HAVE A SECOND.
AND UH, EVERYBODY STAYED SAFE AND THE CONFIDENCE WE CAN PUT THIS THROUGH.