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Agenda 07/12/2022 Item #17F (Ordinance - Amending Ordinance 2003-34)07/12/2022 EXECUTIVE SUMMARY Recommendation that the Board adopt an Ordinance amending Collier County Ordinance No. 2003-34 providing for the reimposition of the Ninth -Cent Local Option Fuel Tax upon its termination on December 31, 2025, effective January 1, 2026, and continuing through December 31, 2055. OBJECTIVE: To obtain Board approval of an Ordinance for the reimposition of the Ninth -Cent Local Option Fuel Tax as provided for in Section 336.021, Florida Statutes, upon its termination on December 31, 2025, through and including the year 2055. CONSIDERATIONS: Section 336.021, Florida Statutes, provides for the levy of a Ninth -Cent local option fuel tax upon every gallon of motor fuel and diesel fuel sold in the County and taxed under the provisions of Chapter 206, Florida Statutes. The levy of the additional one -cent ($.01) provided by the Ninth Cent Fuel Tax was originally approved by the voters through a referendum election held March 11, 1980, as authorized by Section 336.021, Florida Statutes. On June 3, 1980, Collier County enacted Ordinance 80-50 providing for the levy of the Ninth -Cent Fuel Tax with a 30-year expiration set forth in the referendum. Ordinance 2003-34 was adopted on June 24, 2003 approving an extension through December 31, 2025. The current Transportation five-year Capital Improvement Element ("CIE") has a projected shortfall in excess of $200 million. Pursuant to strategy outlined in the Board -approved FY 2023 Budget Policy, it is recommended that the Ninth -Cent Local Option Fuel Tax be reimposed an additional 30 years to December 31, 2055, to provide the organization with financing flexibility. Reimposing the Ninth -Cent Local Option Fuel Tax upon expiration on December 31, 2025, positions the County to capitalize on low interest rates; greater coverage ratios; and an extended repayment horizon that increases fimding capacity. Bond proceeds would fund identified transportation system assets deemed "poor" in the inventory, transportation system capacity improvements and expansion of the eastern Collier County transportation grid. Projects identified in the five-year CIE that could be financed include Collier Boulevard (Green Boulevard to Main Golden Gate Canal), Vanderbilt Beach Road Extension, Goodlette Road (Vanderbilt Beach Road to Immokalee Road), Wilson Boulevard (Golden Gate Boulevard to Immokalee Road), and Randall Boulevard (8th Street to Everglades Boulevard). Section 336.021, Florida Statutes, provides that extensions and reimpositions for levying the Ninth -Cent Local Option Fuel Tax may only be extended by a spper-majorijy vote of the members of the Board. Staff is recommending that the Board approved the attached proposed Amendment to Ordinance No. 2003-34 reimposing the Ninth -Cent Local Option Fuel Tax upon its termination on December 31, 2025, effective January 1, 2026, and continuing through December 31, 2055. A copy of the legal advertisement for the Ordinance published in the Naples Daily News on June 22, 2022, is attached. FISCAL IMPACT: Revenues generated from the Ninth -Cent Local Option Fuel Tax total approximately $1.8 million annually. The reimposition of the Ninth -Cent Local Option Fuel Tax will provide for funding flexibility and allow for debt service payments related to future transportation related financing, excess funding would be programmed annually for pay as you go transportation network capital and maintenance consistent with statutory guidelines. Fuel tax revenues are deposited within Gas Tax Fund (313). GRO H MANAGEMENT IMPACT: The additional Ninth -Cent Local Option Fuel Tax is a principal revenue source of the Transportation Element in the Collier County Growth Management Plan. I Packet Pg. 2069 07/12/2022 LEGAL CONSIDERATIONS: This item is approved as to forrn and legality, and requires majority vote for Board approval.-SRT RECOMMENDATION: That the Board approve and adopt an Ordinance amending Collier County Ordinance No. 2003-34 providing for the reimposition of the Ninth -Cent Local Option Fuel Tax upon its termination on December 31, 2025, effective January 1, 2026, and continuing through December 31, 2055. Prepared by: Edward Finn, Director of Corporate Financial Management Services Office of Management & Budget ATTACHMENT(S) 1. Ninth Cent Fuel Tax Ordinance 061322 srt - numbered (PDF) 2. Ninth Cent Fuel Tax Ordinance 061322 srt (PDF) 3. legal ad - 9th cent fuel tax (PDF) 4. 9th Cent Gas Tax Renewal 7-12-2022 (PDF) I Packet Pg. 2070 1 07/12/2022 COLLIER COUNTY Board of County Commissioners Item Number: 17.17 Doe ID: 22638 Item Summary: Recommendation that the Board adopt an Ordinance amending Collier County Ordinance No. 2003-34 providing for the reimposition of the Ninth -Cent Local Option Fuel Tax upon its termination on December 31, 2025, effective January 1, 2026, and continuing through December 31, 2055 Meeting Date: 07/12/2022 Prepared by: Title: — Office of Management and Budget Name: Debra Windsor 06/27/2022 10:13 AM Submitted by: Title: Director - Facilities Maangement — Facilities Management Name: Ed Finn 06/27/2022 10:13 AM Approved By: Review: Facilities Management County Attorney's Office Office of Management and Budget County Attorney's Office Office of Management and Budget County Managers Office Board of County Commissioners Ed Finn Additional Reviewer Scott Teach Level 2 Attorney Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Christopher Johnson Additional Reviewer Amy Patterson Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 06/28/2022 10:24 PM Completed 06/29/2022 10:35 AM Completed 06/29/2022 10:37 AM Completed 06/29/2022 3:52 PM Completed 07/05/2022 9:00 AM Completed 07/06/2022 4:43 PM 07/12/2022 9:00 AM I Packet Pg. 2071 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 ORDINANCE NO. 2022 - AN ORDINANCE AMENDING COLLIER COUNTY ORDINANCE NO. 2003-34, ALSO CITED AS THE CODE OF LAWS AND ORDINANCES OF COLLIER COUNTY SECTION 126-30, PURSUANT TO SECTION 336.021, FLORIDA STATUTES, PROVIDING FOR THE REIMPOSITION OF THE NINTH CENT FUEL TAX UPON EVERY GALLON OF MOTOR FUEL AND DIESEL FUEL SOLD IN COLLIER COUNTY UPON ITS EXPIRATION ON DECEMBER 31,2025, EFFECTIVE JANUARY 1, 2026, UP TO AND INCLUDING DECEMBER 31, 2055, WHICH IS TAXED UNDER CHAPTER 206, FLORIDA STATUTES; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 336.021, Florida Statutes, provides for the levy of the additional Ninth Cent Fuel Tax upon every gallon of motor fuel and special fuel sold in a county and taxed under the provisions of Chapter 206, Florida Statutes; and WHEREAS, the levy of this additional one cent ($.01) fuel tax was originally approved by a vote of the electorate by a referendum held on March 11, 1980; and WHEREAS, a Resolution providing for the levy of the Ninth Cent Fuel Tax was approved by the Board of County Commissioners effective June 1, 1980; and WHEREAS, on June 3, 1980, Collier County enacted Ordinance No. 80-50 providing for the levy of the Ninth Cent Fuel Tax with a 30 year expiration as set forth in the above -referenced referendum; and WHEREAS, on March 11, 2003, the Board of County Commissioners approved, by extraordinary vote, extending the levy of the Ninth Cent Fuel Tax through and including December 31, 2025; and WHEREAS, Collier County has identified through its current five-year Transportation Capital Improvement Element ("CIE") plan that there is a projected shortfall in excess of $200 million to undertake needed County transportation road projects; and WHEREAS, Collier County's approved Transportation CIE plan is predicated on bonding available fuel tax revenues; and WHEREAS, the revenues received from a reimposition of the additional Ninth Cent Fuel Tax would provide funding for debt service related to future transportation -related financing, and allow excess funding to be programmed annually for pay as you go transportation network capital and maintenance projects, all within the definition of "transportation expenditures" needed to meet the requirements of the County's CIE plan; and Page I of 3 Underlined text is added; stmek throug text is deleted. I Packet Pg. 2072 47 WHEREAS, delays in undertaking specific roadway improvements outlined in the 48 County's road Transportation CIE would result in increased future road construction 49 expenditures and a decrease in the level of service on County roadways, thereby causing 50 increased congestion; and 51 52 WHEREAS, it is determined by the Board of County Commissioners that the 53 reimposition of the levy of the additional Ninth Cent Fuel Tax upon every gallon of motor fuel 54 and diesel fuel sold in Collier County is necessary to finance construction of needed 55 transportation facilities, and therefore fulfills a public purpose. 56 57 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY 58 COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 59 60 SECTION ONE: AMENDING ORDINANCE NO. 2003-34 61 62 Ordinance No. 2003-34, also cited as Section 126-30 of the Collier County Code of Laws 63 and Ordinances, is hereby amended to read as follows: 64 65 Section One: Levy of the tax. 66 67 1 . The levy and imposition of a tax of the additional "Ninth Cent Fuel Tax" upon 68 every gallon of motor fuel and special diesel fuel sold in Collier County and taxed 69 under the provisions of F.S. eh. Chapter 206, Florida Statutes, for the purpose of 70 paying the cost of transportation expenditures as described in F.S. § 336.025(7), 71 shall hereby continue to be collected up to and including the year 2025. Upon 72 expiration, any extension of the additional ninth cent fuel tax may be imposed as 73 provided by law. The extension of the ninth cent fuel tax as provided herein shall 74 be considered a reimposition of such tax from the date hereof through and 75 including December 31, 2025. Upon the expiration of the current levy on 76 December 31, 2025, the Ninth Cent Fuel Tax ppon eve!y gallon of motor fuel and 77 diesel fuel sold in Collier County shall be reiMposed and levied effective JanuM 78 1, 2026, so there is no "ggp" or "lgpse" in the collection of the tax from its current 79 expiration date, through and including December 31, 2055. A r-edetel:fflination e 80 the method of distribution has been made, as provided in F.S. § 336.025 or as 81 other -wise pr-ovided by law. 82 83 2. Collier County shall have the option of shortening the time of collection of the 84 "Ninth Cent Fuel Tax" by an amending ordinance. 85 86 Section Two: ExtensionlReimposition of the tax. 87 88 Said extension of the tax is imposed eff-eetive januar-y 1, 2004, up to anA 89 ineluding the year- of 2025, tefminating on Deeember- 31, 2025. Upon termination 90 of the current tax extension on December 31, 2025, the Ninth Cent Fuel Tax shall 91 be reimposed and levied commencing JanuM 1, 2026, through and including 92 December 31. 2055. Page 2 of 3 Underlined text is added; stmek throug text is deleted. I Packet Pg. 2073 1 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 ill 112 113 114 lis 116 117 118 119 120 121 122 123 124 125 126 127 128 129 SECTION TWO: CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THREE: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of this Ordinance may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by an extraordinary vote this 12th day of July, 2022. ATTEST: Crystal K. Kinzel, Clerk of Courts & Comptroller Deputy Clerk Approved as to form and legality: Scott R. Teach Deputy County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: William L. McDaniel, Jr., Chairman Page 3 of 3 Underlined text is added; stFuek thr-oug text is deleted. I Packet Pg. 2074 ORDINANCE NO. 2022 - AN ORDINANCE AMENDING COLLIER COUNTY ORDINANCE NO, 2003-34, ALSO CITED AS THE CODE OF LAWS AND ORDINANCES OF COLLIER COUNTY SECTION 126-30, PURSUANT TO SECTION 336.021, FLORIDA STATUTES, PROVIDING FOR THE REIMPOSITION OF THE NINTH CENT FUEL TAX UPON EVERY GALLON OF MOTOR FUEL AND DIESEL FUEL SOLD IN COLLIER COUNTY UPON ITS EXPIRATION ON DECEMBER 31, 2025, EFFECTIVE JANUARY 1, 2026, UP TO AND INCLUDING DECEMBER 31, 2055, WHICH IS TAXED UNDER CHAPTER 206, FLORIDA STATUTES; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND, PROVIDING AN EFFECTIVE DATE. WHERE, AS, Section 336.021, Florida Statutes, provides for the levy of the additional Ninth Cent Fuel Tax upon every gallon of motor fuel and special fuel sold in a county and taxed under the provisions of Chapter 206, Florida Statutes; and WHEREAS, the levy of this additional one cent ($.0 1) fuel tax was originally approved by a vote of the electorate by a referendum held on March 11, 1990; and WHEREAS, a Resolution providing for the levy of the Ninth Cent Fuel Tax was approved by the Board of County Commissioners effective June 1, 1980; and WHE RE AS, on June 3, 1980, Collier County enacted Ordinance No. 80-50 providing for the levy of the Ninth Cent Fuel Tax with a 30 year expiration as set forth in the above -referenced referendum; and WHEREAS, on March 11, 2003, the Board of County Commissioners approved, by extraordinary vote, extending the levy of the Ninth Cent Fuel Tax through and including December 31, 2025; and WHERE, AS, Collier County has identified through its current five-year Transportation Capital Improvement Element ("CIE") plan that there is a projected shortfall in excess of $200 million to undertake needed County transportation road projects; and WHEREAS, Collier County's approved Transportation CIE plan is predicated on bonding available fuel tax revenues; and WHEREAS, the revenues received from a reimposition of the additional Ninth Cent Fuel Tax would provide funding for debt service related to future transportation -related financing, and allow excess funding to be programmed annually for pay as you go transportation network capital and maintenance projects, all within the definition of "transportation expenditures" needed to meet the requirements of the County's CIE plan; and r.X0 [22-MBG-00502/172543 5/1 J Pagel of3 Underlined text is added; struck through text is deleted. I Packet Pg. 2075 1 WHEREAS, delays in undertaking specific roadway improvements outlined in the County's road Transportation CIE would result in increased future road construction expenditures and a decrease in the level of service on County roadways, thereby causing increased congestion; and WHERE AS, it is determined by the Board of County Commissioners that the reimposition of the levy of the additional Ninth Cent Fuel Tax upon every gallon of motor fuel and diesel fuel sold in Collier County is necessary to finance construction of needed transportation facilities, and therefore fulfills a public purpose. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: AMENDING ORDINANCE NO. 2003-34 Ordinance No, 2003-34, also cited as Section 126-30 of the Collier County Code of Laws and Ordinances, is hereby amended to read as follows: Section One.� Levy of the tax. 1 The levy and imposition of a tax of the additional "Ninth Cent Fuel Tax" upon every gallon of motor fuel and speeial diesel fuel sold in Collier County and taxed under the provisions of F.S. oh. Chqptc 206, Florida Statutes, for the purpose of paying the cost of transportation expenditures as described in F.S. § 336.025(7), shall hereby continue to be collected up to and including the year 2025. Upon expiration, any extension of the additional ninth cent fuel tax may be imposed as provided by law. The extension of the ninth cent fuel tax as provided herein shall be considered a reimposition of such tax from the date hereof through and including December 31, 2025. Upon the expiration of the current levy on December 31, 2025, the Ninth Cent Fuel Tax upon every gallon of motor fuel and diesel fuel sold in Collier County shall be reimposed and levied effective January 1, 2026, so there is no "gqp" or 4'lapse" in the collection of the tax from its current expiration date, through and including December 31, 2055. A redeteFminalien E) the method of distribution has been made, as provided in F.S. § 336.025 or other -wise provided by law-. 2, Collier County shall have the option of shortening the time of collection of the "Ninth Cent Fuel Tax" by an amending ordinance. Section Two., ExtensionlReiniposition of the tax. Said extension of the tax is imposed januaFy 1, 2004, up to an ineltiding the year of 2025, terminating off Beeembef 31, 202-5. Upon termination of the current tax extension on December 31, 2025, the Ninth Cent Fuel Tax shall be reimposed and levied commencing januqU 1., 2026, through and including December 31, 2055. [22-MBG-00502/1725435/1 Page 2 of 3 Underlined text is added; StFU& thr-augh text is deleted. I Packet Pg. 2076 1 SECTION TWO: CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THREE: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of this Ordinance may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section," �;article," or any other appropriate word. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by aii extraordinary vote this 12th day of July, 2022. ATTEST: Crystal K, Kinzel, Clerk of Courts & Comptroller 0 Deputy Clerk Approved as to form and legality: Scott R. Teach Deputy County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA M William L. McDaniel, Jr., Chairman [22-MBG-00502/1725435/1 CNO Page 3 of 3 Underlined text is added; str-ttek through text is deleted. FPacket Pg. 2077 Public Notices NOTICE OF PUBLIC HEARING NOTICE OF INTENT TO CONSIDER ORDINANCE Notice is hereby given that a public hearing will be held by the Collier County Board of County Commissioners on July 12, 2022, in the Board of County Commissioners Meeting Room, Third Floor, Collier Government Center, 3299 Tamiami Trail East, Na- ples FL., to consider the enactment of a County Ordinance. The meeting will commence at 9:00 A.M. The title of the proposed Ordinance is as follows: AN ORDINANCE AMENDING COLLIER COUNTY ORDINANCE NO. 2003-34, ALSO CITED AS THE CODE OF LAWS AND ORDINANCES OF COLLIER COUNTY SECTION 126-30, PURSUANT TO SECTION 336.021, FLORIDA STATUTES, PROVIDING FOR THE REIMPOSITION OF THE NINTH CENT FUEL TAX UPON EVERY GAL- LON OF MOTOR FUEL AND DIESEL FUEL SOLD IN COLLIER COUN- TY UPON ITS EXPIRATION ON DECEMBER 31, 2025, EFFECTIVE JANUARY 1, 2026, UP TO AND INCLUDING DECEMBER 31, 2055, WHICH IS TAXED UNDER CHAPTER 206, FLORIDA STATUTES; PROVIDING FOR CONFLICT AND SEVERABILITY, PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND, PROVIDING AN EFFECTIVE DATE. A copy of the proposed Ordinance is on file with the Clerk to the Board and is available for inspection. All interested parties are invited to attend and be heard. NOTE: All persons wishing to speak on any agenda item must register with the County Manager prior to presentation of the agenda item to be addressed. Individual speakers will be limit- ed to 3 minutes on any item. The selection of.any individual to speak on behalf of an organization or group is encouraged. If recognized by the Chairman, a spokesperson for a group or or- ganization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included in the Board agenda packets must submit said material a minimum of 3 weeks prior to the respective public hearing. In any case, written materials intended to be considered by the Board shall be submitted to the appropriate County staff a minimum of Seven �lays to the public hearing. All materials used in pre- sentations g.rifoIrre the Board will become a permanent part of the record. As part of an ongoing initiative to promote social distancing during the COVID-19 pandemic, the public will have the oppor- tunity to provide public comments remotely, as well as in per- son, during this proceeding. Individuals who would like to par- ticipat, remotely, should register up to 6 days in advance through the link provided on the front page of the county website at www.colliercountyfl.gov. individuals who register will receive an email in advance of the public hearing detailing how they can participate remotely in this meeting. An, person who decides to appeal any decision of the Board wily need a record of the proceedings pertaining thereto and therefore, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. if you are a person with a disability who needs any accommoda- tion in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management Division, locat- ed at 3335 Tamiami Trail East, Suite 101, Naples, FL 34112-5356, (239) 252-8380, at least two days prior to the meeting. Assisted listening devices for the hearing impaired are available in the Board of County commissioners Off ice. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA WILLIAM L. MCDANIEL, Jr., CHAMMAN CRYSTAL K. KINZEL, CLERK By: Martha Vergara, Deputy Clerk (SEAL) June 22, 2022 m a Z m Z m 0 Z Z R, M F_ 7aj LL a 0 M 0 U 0 _j nA 00 M CD C14 04 x M 7FD I Packet Pg. 2078 1 0 4-0 4-0 ANN) 4* C14 C) 04 04 Otz) V) (4M) Ln Ln E (40) >1 4;o W 0 4* u 0 (1) — D (1) -I-lZ >- 4-- 0 Ln 0 V) 0 u n C) 4-- 0 E 0 0 -1-- u LU 4-- E 0- 4- 0 u 0 V) LL co 0 0 0 0 a 0 a V) V) LL 0 a c u E 0 u 0C 0 U 42) (D U) a Ln 0 0 4- 0 0 x 0 0 D— > ]�i C) F- V) 0 -+- (1) Ln (1) CO x x C 0 Ln D LL co 0 -0 LL. LL LL r c 0 o 00 -I-- ... 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