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2019-09-26 Work Session Kodiak Island Borough Assembly Work Session Thursday, September 26, 2019, 6:30 p.m. School District Conference Room Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on meeting. Page 1. COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 3 - 7 a. Discussion Regarding Use of Fund Balance To Install Three New Light Poles In The Woodland Acres Lighting Service Area Output Document (AS - 1031) - Pdf 8 - 12 b. Mill Levy Ordinance Agenda Statement Ordinance No. FY2020-08 Ordinance No. FY 2020-08 Amending Tax Levy Procedures 13 - 47 c. Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust Anton Larsen Bay Project Information Handout Anton Larsen Bay Work Session Presentation 3. MANAGER COMMENTS 4. 5. PACKET REVIEW Items may be added during the work session for inclusion on the Regular Meeting agenda. The item title needs to be provided/developed at the work session in enough detail to give assembly and public reasonable notice. PUBLIC HEARING Ordinance No. FY2019-20 Amending Chapters 17.160 KIBC (Accessory Buildings and Accessory Dwelling Units) Ordinance No. FY2020-04 An Ordinance Of The Assembly Of The Visit our website at www.facebook.com/Kodiakislandborough @KodiakBorough www.kodiakak.us Page 1 of 47 Kodiak Island Borough Amending Kodiak Island Borough Code Title 3 Revenue And Finance, Chapter 3.35 Real Property Tax, Section 3.35.030 Real And Personal Property Exempted From Taxation. Ordinance FY2020-06 to amend KIBC 17.10.030 Comprehensive Plan to include the City of Kodiak Near Island Development Plan - Concept A, Minimum Development. NEW BUSINESS CONTRACTS Contract FY2020-07 Approval of 1-Year Contract with Matson Navigation Company of Alaska, Inc. for Metals Processing and Hauling RESOLUTIONS Resolution No. FY2020-11 Granting A Nonexclusive Easement For Access, Both To Ingress And Egress, For Vehicular And Pedestrian Traffic ORDINANCES FOR INTRODUCTION Ordinance No. FY2020-01A Amending Ordinance No. FY2020-01, Fiscal Year 2020 Budget, By Amending Budgets To Account For Various Revenues That Are Over Budget, Providing For Additional Expenditures And Moving Funds Between Projects. Ordinance FY2020-08 Amending Kodiak Island Borough Code Of Ordinances Title 3 Revenue And Finance Chapter 3.25 Appropriation And Levy Section 3.25.010 Ordinance Enactment, And Section 3.25.020 Tax Levy Form, and Providing For An Effective Date Ordinance FY2020-10 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue And Finance Chapter 3.05 Fiscal Policy Section 3.05.080 Reserve Policies OTHER ITEMS Support Letter For Funding From Exxon Valdez Oil Spill (EVOS) Trustee Council For Antone Larson Bay/Sharatin Bay Project - Great Lands Trust 6. ASSEMBLY MEMBERS COMMENTS 7. Visit our website at www.facebook.com/Kodiakislandborough @KodiakBorough www.kodiakak.us Page 2 of 47 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 26, 2019 ASSEMBLY WORK SESSION SUBJECT: Discussion Regarding Use of Fund Balance To Install Three New Light Poles In The Woodland Acres Lighting Service Area ORIGINATOR: Dora Cross RECOMMENDATION: DISCUSSION: Since the Woodland Acres Lighting Service Areas does not have an active board, staff is requesting direction regarding a request from Mr. Scott Ardnt, Service Area #1 Board Chair, to use approximately $15,000 of the Services Area's fund balance to install three new lighting poles. Cost estimates and map of locations are included. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 3 of 47 Discussion Regarding Use of Fund Balance To Install Three New Light Pole... AGENDA ITEM #2.a. Page 4 of 47 Discussion Regarding Use of Fund Balance To Install Three New Light Pole... AGENDA ITEM #2.a. Page 5 of 47 Discussion Regarding Use of Fund Balance To Install Three New Light Pole... AGENDA ITEM #2.a. Page 6 of 47 Discussion Regarding Use of Fund Balance To Install Three New Light Pole... AGENDA ITEM #2.a. Page 7 of 47 Discussion Regarding Use of Fund Balance To Install Three New Light Pole... AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 3, 2019 ASSEMBLY REGULAR MEETING SUBJECT:Ordinance FY2020-08 Amending Kodiak Island Borough Code Of Ordinances Title 3 Revenue And Finance Chapter 3.25 Appropriation And Levy Section 3.25.010 Ordinance Enactment, And Section 3.25.020 Tax Levy Form, and Providing For An Effective Date ORIGINATOR:Dora Cross RECOMMENDATION: Move to advance Ordinance FY2020-08 to public hearing. DISCUSSION: Staff Comments: The current provisions in Kodiak Island Borough Code 3.25.010 call for an annual appropriation and tax levy ordinance. Our practice has been to approve the tax levy by ordinance. The process for levying taxes and setting the annual mill rate in state lawcalls for the adoption by resolution. Borough Attorney Comments If the majority of the Assembly wants to keep using the process they have been using (i.e. setting the mill rate in the budget ordinance and appropriating the funds in that ordinance) then no change to the code is required. They can continue to use that method as long as they want, so long as they are aware of and accept the risks associated with doing so. The risk which the Borough would be assuming is that a taxpayer could challenge the validity of the mill levy arguing that the levy was invalid due to non-compliance with statutory procedures. AS 29.45.010(c) provides that: “\[i\]f a tax is levied on real property or personal property the tax must be assessed, levied, and collected as provided in this chapter.” This means that in order to levy the tax a municipality must follow the requirements of Chapter 29.45. Among those requirements is AS 29.45.240, which provides in part: “(a) The power granted to a municipality to assess, levy and collect a property tax shall be exercised by means of an ordinance. The rate of levy, the date of equalization, and the date when taxes become delinquent shall be fixed by resolution.” The language is pretty clear in saying that the rate of levy isset annually by resolution. If the Assembly continues the practice of using the budget and appropriation ordinance to set the levy then it is not complying with the terms of this statute. As such, a taxpayer could challenge the levy arguing that the Borough did not follow the proper procedures. There may also be a concern as to whether the Borough is setting the date of equalization and date when taxes become delinquent in compliance with AS 29.45.240(a). While such a challenge may not be successful, whether to assume that risk should be an informed decision. It is not a clear cut case, and there is a substantial likelihood that we Kodiak Island Borough Page 8 of 47 Mill Levy Ordinance AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 3, 2019 ASSEMBLY REGULAR MEETING would be able to defend against a challenge asserting that setting the rate of property tax levy by ordinance invalidates the tax. AS 29.45.240 sets out tax procedures. As a procedural statute a court would look at whether this use is mandatory or directory. "Whether a party must strictly comply with a procedural rule, regulation, or statute turns on whether the language of the law is mandatory or directory. If a statute is mandatory, strict compliance is required; if it is directory, substantial compliance is acceptable absent significant prejudice to the other party. A statute is considered directory if (1) its wording is affirmative rather than prohibitive; (2) the legislative intent was to create "guidelines for the orderly conduct of public business"; and (3) "serious, practical consequences" would result if it were considered mandatory." South Anchorage Concerned Coalition, Inc. v. Municipality of Anchorage Bd. of Adjustment, 172 P.3d 768, 771-772 ( Alaska 2007) In the context of the mill levy, in Yakutat v. Ryman, 654 P. 2d 785 (Alaska 1982) the Alaska Supreme Court held that a taxing procedure like setting the mill levy was directory, and substantial compliance would be sufficient. Thus, the statute calls for a resolution, but if we do it by an ordinance which substantially complies with the statue I believe a court would uphold that the levy against a challenge. A related consideration is the consistency in practice with the language of the code. If we do not follow the code language a taxpayer could challenge the property tax levy arguing that it was not done in compliance with the code. Where the code irreconcilably conflicts with the statutes we can defend that action arguing that the conflicting code provision is preempted, but the better course is to have the code, statute and practice all consistent. I feel responsible to recommend that we bring the code, and the practice, in line with the statute, and to identify the risk should we not do so. However, the decision of whether to do so is up to the policy makers. Discussion: From a staff perspective, we see several options: Continue with the existing practice, modify the code to provide for the two hearings, but use a resolution to comply with state law, or lastly comply with state law. Pragmatically, any of these courses ofaction are relatively simply to carry out, the concern here is to make sure that the intent of the Assembly on this policy issue is captured and implemented. ALTERNATIVES: Keep codes that conflict with codes for the State of Alaska. Kodiak Island Borough Page 9 of 47 Mill Levy Ordinance AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 3, 2019 ASSEMBLY REGULAR MEETING FISCAL IMPACT: NA OTHER INFORMATION: Kodiak Island Borough Page 10 of 47 Mill Levy Ordinance AGENDA ITEM #2.b. 2 Introduced by:Borough Manager 3 Drafted by:Finance Director 4 Introduced on: 5 Public Hearing Date: 6 Adopted on: 7 8 KODIAK ISLAND BOROUGH 9 ORDINANCENO. FY2020-08 : 21 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHAMENDING 22 KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE 23 CHAPTER 3.25APPROPRIATION AND LEVY SECTION 3.25.010ORDINACE ENACTMENT, 24 AND SECTION 3.25.020TAX LEVY FORM, AND PROVIDING FOR AN EFFECTIVE DATE 25 26 WHEREAS,AS 29.45.240(a) requires that an ordinance be used to levy the taxes; and 27 28 WHEREAS,AS 29.45.240(a) provides that the rate of levy, date of equalization and date when 29 taxes become delinquent shall be fixed by resolution; and 2: 31 WHEREAS,AS 29.45.240(b) requires that the levy be set by June 15, and the bills be sent out 32 by July 1; and 33 34 WHEREAS,The current provisions in Kodiak Island Borough Code 3.25.010call for an annual 35 appropriation and tax levy ordinance. The Assembly finds that the process for levying taxes and 36 setting the annual mill rate would be more consistent with AS 29.45.240 if the process in the 37 Kodiak Island Borough Code were amended to mirror the process in AS 29.45.240. 38 39 3:NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 41 BOROUGH THAT: 42 43 Section 1:This ordinance is of permanent nature and shall become a part of the Kodiak Island 44 Borough Code of Ordinances. 45 46 Section 2:That section 3.25.010 of the Kodiak Island Borough Code of Ordinances is amended 47 to read as follows: 48 49 3.25.010Ordinance Enactment. 4: 51 The assembly shall enact anbudget and appropriation and tax levyordinance appropriating 52 funds for the expenses and liabilities of the borough each year and levying a tax to defray all 53 expenses and liabilities of the borough for the purposes as specified against all taxable property 54 in the borough each year. 55 56 Kodiak Island Borough, AlaskaOrdinance No. FY2020-08 Deletion –Red, StrikeoutPage 1of 2 Page 11 of 47 Insertion –Bold, Blue, UnderlinedVersion 1 Mill Levy Ordinance AGENDA ITEM #2.b. 57 Section 3:That section 3.25.020 of the Kodiak Island Borough Code of Ordinances is amended 58 to read as follows: 59 3.25.020 Tax levy form. 5:A. Levy.A tax for the above sums of money, or as much thereof as may be authorized by law,to 61 defray all expenses and liabilities of the borough be and the sameis hereby levied for the 62 purposes as specifiedagainst all taxable property in the borough.Inaccordance with AS 63 29.45.240(a),the rate of levy shall be determined annually as provided in subsection B of 64 this section. for the fiscal year commencing on the first day of July, (year), and ending on the 65 thirtieth day of June, (year). 66 B. Rate. The rate of levy, the date of equalization, and the date when taxes become 67 delinquent shall be fixedby resolution. The rate shall be determined annually before June 68 15. Prior to adoption, the resolution setting the rate of levy shall be introduced and set for 69 a public hearing at a subsequent meeting following the procedures in KIBC 2.30.070(B)for 6:enactment of an ordinance. 71 72 73 Effective Date:This ordinance takes effect upon adoption. 74 75 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 76 THIS __________ DAY OF _______________,2019. 77 78 KODIAK ISLAND BOROUGHATTEST: 79 7: 81______________________________________________________ 82 Daniel A. Rohrer,MayorTara Welinsky,Clerk 83 84 VOTES: 85 Ayes: 86 Noes: Kodiak Island Borough, AlaskaOrdinance No. FY2020-08 Deletion –Red, StrikeoutPage 2of 2 Page 12 of 47 Insertion –Bold, Blue, UnderlinedVersion 1 Mill Levy Ordinance AGENDA ITEM #2.c. 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Lpejbl/Uif!bddfttjcjmjuz!pg!uif!qbsdfm!boe!jut!qspyjnjuz!up!Lpejbl!dsfbuft!b!ijhifs!uisfbu!pg!dpowfstjpo!up!puifs! vtft/Dpotfswbujpo!pg!uijt!qbsdfm!xpvme!fmjnjobuf!uif!uisfbu!pg!gvuvsf!ibcjubu!gsbhnfoubujpo!ps!mptt!gspn! dpotusvdujpo-!tvcejwjtjpo-!boe!efwfmpqnfoups!sftusjdufe!bddftt/ Page 13 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Photo: Sharatin Bay/ Three Pillar Point terminus of Anton Larsen Bay ATV Trail. Photo: Anton Larsen Bay. Photo: Anton Larsen Bay ATV Trail, note bridge and geoblock matting installed by Kodiak residents. Photo: Anton Larsen Bay boat launch parking. Page 14 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Photo: Ridgeline and lake between Anton Larsen Bay and Sharatin Bay. Sharatin Bay is in the background. Photo: Anton Larsen Bay road, head of Anton Larsen Bay. The Anton Larsen Bay road provides access to the property from multiple trail heads, ATV and hiking trails, and boat launches. Photo: Sharatin Mountain Trail from Anton Larsen Bay. Photo: Coastal forest on the subject property. Page 15 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Photo: Anton Larsen Bay. Photo: Sharatin Bay. Photo: Anton Larsen Bay. Photo: Sharatin Bay 16’x20’ public use cabin. Photo: Recently upgraded boat launch in Anton Larsen Bay. Page 16 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Photo: Sharatin Bay Photo: Sharatin Bay Page 17 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Photo: Sharatin Bay Photo: Sharatin Bay Page 18 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 19 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Proposal Bay Director 4995 - Sharatin 278 - 907 Great Land Trust Great Land Trust Bay and dmitchell@greatlandtrust.org David Mitchell, Conservation of life and economic health of Alaskans and stewarding lands and waters essential to the quality Anton Larsen Conserving Page 20 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 21 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Long Island Termination Point Partnership with Kodiak Island Borough Partnership with Kodiak Island Borough Page 22 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 23 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Oil Spill Exxon Valdez Lower Kenai River Projects Page 24 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 25 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. information acres owned by Ouzinkie Native Property Approximately 23,000 Corporation • Page 26 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. information acres owned by Ouzinkie Native acres owned by the Alaska Mental 2,000 Property Authority Approximately 23,000 CorporationApproximately Health Trust •• Page 27 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. for species impacted by information acres owned by Ouzinkie Native acres owned by the Alaska Mental Spill 2,000 Property Authority high priority habitat Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil ••• Page 28 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. , fishing, hiking, wildlife for species impacted by information hunting acres owned by Ouzinkie Native acres owned by the Alaska Mental – Spill 2,000 Property Authority high priority habitat Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewing •••• Page 29 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. trailheads , fishing, hiking, wildlife for species impacted by information hunting acres owned by Ouzinkie Native acres owned by the Alaska Mental – Spill 2,000 Property Authority high priority habitat Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails, ATV Trail, rental cabin, ••••• Page 30 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. trailheads land , fishing, hiking, wildlife for species impacted by information hunting acres owned by Ouzinkie Native acres owned by the Alaska Mental – Spill 2,000 Property Authority high priority habitat Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails, ATV Trail, rental cabin, Boat launch is on existing state •••••• Page 31 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. impacted trailheads land , fishing, hiking, wildlife for species impacted by not be will information hunting acres owned by Ouzinkie Native acres owned by the Alaska Mental – Spill 2,000 Property Authority high priority habitat Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails, ATV Trail, rental cabin, Boat launch is on existing state Proposed road extension ••••••• Page 32 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Exxon Valdez Oil Spill Trustee Council request to Funding (EVOSTC) will be considered at their annual meeting October 11, 2019 Funding, Ownership and Property Management • Page 33 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Resources Exxon Valdez Oil Spill Trustee Council request to Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Funding, Ownership and Property Management •• Page 34 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Parks Resources Exxon Valdez Oil Spill Trustee Council request to Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State Funding, Ownership and Property Management ••• Page 35 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Parks Resources Exxon Valdez Oil Spill Trustee Council request to Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State BLM will hold a conservation Easement restricting subdivision, development and certain activities on the property Funding, Ownership and Property Management •••• Page 36 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Parks Resources Exxon Valdez Oil Spill Trustee Council request to Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State BLM will hold a conservation Easement restricting subdivision, development and certain activities on the propertyUSFWS interested in an alternative scenario that transfers 65 acres of islands to the Alaska Maritime National Wildlife Refuge with a CE held by the State of Alaska DNR Funding, Ownership and Property Management ••••• Page 37 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Parks Resources Exxon Valdez Oil Spill Trustee Council request to Ouzinkie Native CorporationAlaska Mental Health Trust AuthorityState of Alaska DNRUSDOI Bureau of Land Management •••• Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State BLM will hold a conservation Easement restricting subdivision, development and certain activities on the propertyUSFWS interested in an alternative scenario that transfers 65 acres of islands to the Alaska Maritime National Wildlife Refuge with a CE held by the State of Alaska DNRProject is in its initial stages and subject to EVOSTC funding approval and agreement by all parties: Funding, Ownership and Property Management •••••• Page 38 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 39 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 40 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 41 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 42 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 43 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 44 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 45 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. Page 46 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust AGENDA ITEM #2.c. meeting. ? Questions Request for consideration: this project at the October 3, 2019 Assembly from Kodiak Island Borough in support of the funding request for Letter Page 47 of 47 Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust Meeting Type-P, Date: . ........... �s-� U� ............. ................... ............. n .............................. I ...... .... ......... I .......... ..................