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HomeMy WebLinkAbout02/26/24 Budget & Finance Committee Agenda Package1.092 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT AGENDA BAKERSFIELD REGULAR MEETING THE SOUND QF ��b�&ej�,91 d;+^i ,�. February 26, 2024, 12:00 p.m. City Hall North Conference Room A 1600 Truxtun Avenue Members Andrae Gonzales Eric Arias Ken Weir 1. ROLL CALL 2. PUBLIC STATEMENTS a. Agenda Item Public Statements b. Non -Agenda Item Public Statements 3. STAFF REPORT 4. ADOPTION OF MINUTES a. Adoption of the January 29, 2024 regular meeting minutes Staff recommends adoption of minutes 5. NEW BUSINESS a. Presentation on HOME -ARP - Notice of Funding Availability Award Recommendations Staff recommends receive and file presentation. b. Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA) Staff recommends that the item be referred to the full Council. 6. COMMITTEE COMMENTS 7. ADJOURNMENT • BAKERSFIELD ADMINISTRATIVE REPORT MEETING DATE: February 26, 2024 AGENDA CATEGORY: Minutes TO: Budget, Finance and Economic Development Committee FROM: Julie Drimakis, City Clerk DATE: February 13, 2024 SUBJECT: Adoption of the January 29, 2024 regular meeting minutes RECOMMENDATION: Staff recommends adoption of minutes BACKGROUND: FISCAL IMPACT: COUNCIL GOAL: Choose an Iitein. ATTACHMENTS: January 29, 2024 minutes Page 2 of 15 U 1,21 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT `u MINUTES �^mrroau�., REGULAR MEETING January 29, 2024, 12:00 p.m. City Hall North Conference Room A 1600 Truxtun Avenue Members Present: Andrae Gonzales, Eric Arias Members Absent: Ken Weir Staff Present: Christian Clegg, City Manager Josh Rudnick, Deputy City Attorney II Julie Drimakis, City Clerk Jenni Byers, Acting Economic Development Director Mario Orosco, Budget Officer Joe Conroy, Public Information Officer Cecilia Greigo, Principal Planner (ECD) Michelle Cruz, Management Assistant Monica Medve, Planner II (ECD) 1. ROLL CALL 2. PUBLIC STATEMENTS a. Agenda Item Public Statements b. Non -Agenda Item Public Statements 3. ADOPTION OF MINUTES a. Adoption of the November 27, 2023, agenda summary report Moved by: Eric Arias Adoption of minutes For (2): Andrae Gonzales, and Eric Arias Absent (1): Ken Weir Approved (2 to 0) 1 Page 3 of 15 4. STAFF REPORTS a. Staff Update on the Security Grant Program Jenny Byers, Acting Economic and Community Development Director made staff comments. Moved by: Eric Arias Staff recommends receive and file Approved 1. PowerPoint presentation Business Security Grant 5. NEW BUSINESS a. Review of upcoming Committee Topics Chair Gonzales asked for a conversation about P/Q Street Property. Chair Gonzales asked to add his referral for timetables for development process be discussed in this Committee. Committee Member Arias requested an update on East Hills Mall and an evaluation of the small infrastructure fund that is dedicated to Wards 1 and 2 while expanding that into more wards as necessary with more money. Overview of where we are with CDBG (Community Development Block Grant) program. Chair Gonzales would like to have a conversation about the Housing Trust fund. Moved by: Eric Arias Staff recommends receive and file Approved b. EOA Program Update Principal Planner Cecelia Griego made staff comments and provided a PowerPoint presentation. Chair Gonzales requested that we move to all TIF funding. Committee Member Arias would like an update on the ballooning costs in the General fund. 2 Page 4 of 15 Chair Gonzales asked if we could address the issues in 34th Street. Rename it and move it down to 24t" Street or 23rd Street. Chair Gonzales requested ongoing revenue service for new businesses trying to come in to the downtown area. Moved by: Andrae Gonzales That item be referred to the full Council Approved PowerPoint presentation Economic Opportunity Area Plan and Program Update 6. COMMITTEE COMMENTS 7. ADJOURNMENT Meeting was adjourned at 1.03 p.m. ANDRAE GONZALES, CHAIR BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE ATTEST: JULIE DRIMAKIS, MMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield 3 Page 5 of 15 ADMINISTRATIVE REPORT MEETING DATE: February 26, 2024 AGENDA CATEGORY: NEW BUSINESS TO: Budget, Finance and Economic Development Committee FROM: Jennifer M. Byers, Acting Economic and DATE: February 16, 2024 SUBJECT: Presentation on HOME —ARP Notice of Funding Availability Award Recommendations HOME -ARP — Notice of Funding Availability Award Recommendations RECOMMENDATION: Staff recommends receive and file presentation. BACKGROUND: The HOME Investment Partnerships American Rescue Plan Program (HOME -ARP) provides funding to HOME participating jurisdictions to reduce homelessness and increase housing stability. HOME -ARP provided $5 billion to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and non - congregate shelter to reduce homelessness and increase housing stability across the country. In September 2021, HUD conditionally allocated $5,458,039 to the City of Bakersfield in HOME -ARP funds and provided guidelines on the requirements to prepare and submit an Allocation Plan. On March 22, 2023, the Bakerfield City Council approved the Fiscal Year 2021-2022 Action Plan Amendment No. 5 and authorized the City Manager to execute all documents required to submit the HOME -ARP Allocation Plan to HUD. On May 9, 2023, the City of Bakersfield was notified by HUD that the HOME -ARP Allocation Plan was approved. Funding included the recommended eligible activities listed below, as well as $545,803 designated for program administration and planning. Eligible Activities that may be funded with HOME -ARP include: - Production or Preservation of Affordable Housing - Tenant -Based Rental Assistance - Supportive Services, including homeless prevention services and housing counseling - Purchase and Development of Non -Congregate Shelter Funds must primarily benefit individuals and households in the following qualifying populations: - People experiencing homelessness - People at -risk of homelessness - People fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking - Other populations where providing supportive services or assistance under Section 212(a) of the Public Health and Welfare Act (42 U.S.C. 12742(a)) would prevent the family's homelessness or would serve those with the greatest risk of housing instability - Veterans and families that include a veteran family member that meet one of the preceding criteria Page 6 of 15 • BAKERSFIELD On November 10, 2023, the City of Bakersfield released its Notice of Funding Availability (NOFA) to solicit proposals. The NOFA included the following allocations by eligible activity: Activity Funding Amount Supportive Services $575,784 Development of Affordable Housing $4,063,549 Non -Profit Capacity Building $272,901 Total $4,912,234 NOFA Results: Cumulatively, the NOFA was open for thirty-five (35) days. There were a total of ten (10) applications submitted: six (6) for the development of affordable housing, three (3) for supportive services, and one (1) for the nonprofit capacity building for a total of $9,509,485 in funding requests. Consistent with the NOFA, applications were reviewed and scored by two internal staff members using the following criteria: - Timeliness - Consistency - Capacity - Completeness - Compatibility After review, staff recommends allocating funding to five (5) affordable housing projects and two (2) supportive services projects. No funding is recommended for non-profit capacity building projects, as the sole application received did not align with the objectives of the HOME -ARP program. Furthermore, staff is recommending a substantial amendment to the HOME -ARP Allocation Plan to allocate $201,016 of Non - Profit Capacity Building funding to Supportive Services to fully fund both Supportive Services applications. This would result in $71,885 remaining for Non -Profit Capacity Building that staff proposes to release a second NOFA to provide opportunity for non -profits to benefit from the HOME -ARP program. Staff has prepared the attached recommendations for funding. After today's presentation, staff will be contacting the proposed applicants to discuss next steps. Each project receiving a reserved allocation of funding will be subject to further underwriting and funding adoption by the Bakersfield City Council prior to officially receiving a commitment of funds. FISCAL IMPACT: The projects will be funded through the HOME American Rescue Plan and result in no General Fund Impact. COUNCIL GOAL: Safety and Resilience ATTACHMENTS: HOME -ARP Funding Recommendations Page 7 of 15 ADMINISTRATIVE REPORT MEETING DATE: February 26, 2024 AGENDA CATEGORY: NEW BUSINESS TO: Budget, Finance and Economic Development Committee FROM: Jennifer M. Byers, Acting Economic and Community Development Director DATE: February 21, 2024 SUBJECT: Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA) Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA) RECOMMENDATION: Staff recommends that the item be referred to full Council. BACKGROUND: The United States Department of Housing and Urban Development (HUD) has designated the City of Bakersfield as an Entitlement City. Therefore, HUD provides annual funding to improve low-income neighborhoods throughout the city pursuant to the federal programs noted below. As is the case each year, HUD had not yet released the entitlement amount for FY 2024-25 as of the preparation of this memo. However, there is an expectation that Congress will maintain previous year funding levels for all programs. The table below shows the anticipated HUD funds for all projects using last year's entitlement as the current projection. Federal Program Previous FY23-24 Allocation Community Development Block Grant (CDBG) $3,878,710* Home Investment Partnership (HOME) $1,801,273* Emergency Solutions Grant (ESG) $334,506 Housing Opportunities for Persons with AIDS (HOPWA) $1,080,283 Total $7,094,772 *Includes an additional $8,000 in program income for CDBG and $80,000 for HOME Applications Received: Each year, the City issues a Notice of Funding Ability (NOFA) for the annual entitlement funds listed in the table above. The deadline for the submission of CDBG, HOME, and ESG applications for FY 2024-25 funding was December 21, 2023. The requested projects are intended to improve the quality of life and infrastructure for low-income persons and neighborhoods in the City of Bakersfield. This year the City received 11 applications from non-profit and private entities totaling $4,584,918, and 7 applications from City Departments totaling $6,958,640. The total request for all grants, from both City and Non -City applicants, was $11,543,558. The application details are listed in Attachment C. NEW Recommendation: Pursuant to federal requirements, staff conducted a comprehensive review and evaluation of all applications for funding. Staff has prepared the attached Memorandum and recommended budget for consideration by the Budget and Finance Committee. Staff anticipates that the FY 2024-25 HUD Action Plan will be considered by the City Council on April 24, 2024. This is the fifth funding year of the 2020-2025 Consolidated Plan. Page 8 of 15 • BAKERSFIELD Therefore, Staff recommends that the Committee forward the reviewed allocations for the CDBG, HOME, ESG and HOPWA funds as listed in attachments A and B for approval of the full Council. Subject to appropriate administrative adjustments made to account for the final allocations provide by the Department of Housing and Urban Development before April 24, 2024. FISCAL IMPACT: No fiscal impact. COUNCIL GOAL: Community Character & Quality of Life ATTACHMENTS: FY 24/25 Recommended CDBG Budget FY 24/25 Recommended ESG/HOME/HOPWA Budget Overall HUD Project Applications Table 24-25 (Reference) Page 9 of 15 2/26/2024 RECEIVE AND PLACE ON FILE, AT �Z,VJMMEETING OF 1�69 HOME -ARP NOFA AWARD RECOMMENDATIONS • 1 HOME American Rescue Plan Eligible Activities 1. Supportive Services 2. Acquisition and development of non -congregate shelters 3. Tenant Based Rental Assistance (TBRA) 4. Development of Affordable Rental Housing 5. Non-profit operating 6. Non-profit capacity building 7. Administration and Planning 2 1 2/26/2024 Anticipated Resources and Eligible Activities Production or Preservation of Affordable Housing 3 Includes services homeless prevention services and housing counseling Funding set aside for Non -Profits to build capacity to serve vulnerable populations Development of Affordable Housing GEAHI/HA . " M Street d 4 j' $738,363 ;? $738,863 i $738,363 City Serve/HA Network- 126 $31,699,496 $1,996,306 $1,000,000 Housing Haley Housing 'Haley . 40 $13,249,837 . $828,000 ; $828,000 Housing Wakeland/ 627 Sumner 54 $36,771,178 $4,045,016 $1,000,000 Mercy House HA Niles Street 51 $19,561,979 $500,000 $497,186 GORDCO Gordco 8 $978,600 Unclear $0 Affordable Housing 4 2 2/26/2024 Supportive Services - $575,784 i Open, Door Preventing Homelessness Provide Homelessness Prevention ,, $528,948 Network '! and Enhancing Housing . Services and McKinney-Vento Supportive i 'Stability Services CAPK Homeless CES Rapid -Bolster general operations for the $247,852* Response Coordinated Entry System Wakeland i 627 Sumner ;• Funding to cover first year of case :1$0 Housing/ management and supportive services Merry House ; i� •; i *Recommend substantial amendment to allocate $201,016 of Non -Profit Capacity Building and renotice NOFA for $71,885 for remaining funds. 5 FISCAL YEAR 2024-25 HUD BUDGET & ACTION PLAN 6 3 2/26/2024 2020-202 5 CONSOLIDATED PLAN GOALS �2 - Increase and preserve affordable housing for low - and -moderate income households \ok AFFORDABLE HOUSING - Prevent and reduce homelessness. - Improve public infrastructure and facilities to ® promote safe and vibrant communities. - Foster community and economic development. v - Enhance facilities and services for the non -homeless °.� special needs population. ANTICIPATED RESOURCES 2024-25 Action Plan .: • •- •. $1,080,283 Admin: Admin: Admin: Admin: $774,142 $172,127 $25,087 $32,408 Projects: Projects: Projects: Projects: $3,104,568 $1,629,146 $309,419 $1,047,875 8 0 2/26/2024 2024-25 ACTION PLAN Recommended CDBG Budget ■ Curb, Gutter, Sidewalk, ADA and $19C Lighting Projects ■ Public Services m Public Facilities ■ Home Access ADA Program M CURB, GUTTER, SIDEWALK & ADA IMPROVEMENTS • East Truxtun Area: $649,000 (Ward 2) • Oleander Area: $649,000 (Ward 2) • Alta Vista Area: $649,000 (Ward 3) 10 5 2/26/2024 LIGHTING &PUBLIC FACILITIES PROJECTS • Belle Terrace Area Lighting Improvements: $686,520 (Ward 2) • Community Action Partnership of Kern (CapK) Friendship House Solar Installation $231,048 (Ward 1) 11 HOME ACCESS ADA I M RPOVEM ENTS • $50,000 • City -Run Program • Low-income • $4, 500 Grants • Goal: 11 Households 12 I. 2/26/2024 PUBLIC SERVICES - $190,000 • Bakersfield Senior Center Support Services - $90,000 • GBLA Fair Housing: $100,000 FairlHousing �RGBLaw Project_---_-----__-_-- 13 2024-25 ACTION PLAN Recommended HOME Budget ■ CHDO Set -Aside ■ New Construction ■ VCCDC Down Payment Program 14 7 a , , 2/26/2024 15 16 2024-25 ACTION PLAN Recommended ESG Budget ■ Rapid Rehousing / Prevention ■ Homeless Outreach ■ Shelter Operations 2024-25 ACTION PLAN Recommended ESG Budget • Flood Outreach - $25,000 • The Open Door Network Shelter - $70,000 • Mission Shelter - $70,000 • AAFVSA Shelter - $35,000 • Open Door RRH & Prevention: $109,419 e 2/26/2024 17 18 ANTICIPATED TIMELINE 202425 Action Plan • Budget & Finance Committee Meeting • Draft Action Plan Complete • Action Plan Public Notice Period • Community Meeting • Public Hearing before City Council • Action Plan due to HUD February 26, 2024 March 18, 2024 March 22 - April 24, 2024 April 17, 2024 April 24, 2024 May 15, 2024 0 Description CDBG Entitlement Program Income (Projected) To Available Resources Administration (not to exceed 20%) Section 108 Loan Payment on $4.1 M Section 108 Loan Payment on $800K Total Admin and Debt Payment Total Resources minus Admin and Debt Payments Fair Housing Program Services Bakersfield Senior Center Support Services ohnkfltrvIluirioNlywnrl:frv(�, 1),vVuInpiria;�inI Total Public Service Projects Home Access Rehabilitation East Truxtun Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. Oleander Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. Belle Terrace Area Street Light Upgrade Alta Vista Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. East Truxtun Area Street Light Upgrade Q Street Area Pedestrian Improvements Community Action Partnership of Kern (CAPK) Friendship House Solar Installations ��nIniiAr+�O: Curl,), Gu I ht r, m/olk, 1,)roii oq� A(�(.a,<s'iknlitylirilprv. Sung+,1 An O I iqhtuiq Up Iro ia; nllhy Rood IqhhngITnja,(;i Total Public F Total Requests for Public Services + Projects FY 24-25 FY 24-25 1:''7 2-3 2d' Ward equested Projected 'r yc y P�u 3,870,710 3,870,710 8,000 8,000 3,878,710 3,878,710 3 8r8.'/10 774,142 774,142 774,142j 774,142j 996 3,104,568 3,104,568 3.042.'/1 100,000 100,000 All 150,000 90,000 1 All 250,000 190,000 26,0 000 50,000 50,000 All 649,000 649,000 2 649,000 649,000 2 650,000 686,520 2 649,000 649,000 _'.:. ' 3 537,840 - 2 3,773,800 - 3 231,048 231,048 1 7,189,6881 2,914,568 2 ['1,0%.'r"16 7,439,6881 3,104,5681 :Y14,/1 y Page 10 of 15 PROPOSED"•2024-25 Description FY 24-25 FY 24-25 f % 3 24 Re uested Projected HOME Entitlement $ 1,721,273 $ 1,721,273 Program Income $ 80,000 $ 80,000 Total Available Resources $ 1,801,273 $ 1,801,273 !;r;r'11; 73 Administration (not to exceed 10%) $ 172,127 $ 172,127 Total Resources minus Admin $ 1,629,146 $ 1,629,146 $ 11,6, 2 i,'ll777/,; CHDO Set Aside (15%) $ 258,191 $ 258,191 XA, Acquisition/Construction/Rehabilitation/Down payment $ - $ 1,112,955 Niles Street Housing Authority of County of Kern* $ 1,800,000.i'.;:) CapK Tenant Based Rental Assistance* $ 1,200,000 VCCDC $ 258,000 $ 258,000 C-FI Al II II 0h .flw(�V S(mlai Al,aiirricm W Total (All Requests) $ 3,258,000 $ 1,629,146 $ 3 88,46,7 * Funded with prior year funding. PROPOSED ESG BUDGET FY 2024-25 Description FY 24-25 FY 24-25 f % 3 24 Requested Projected ESG Entitlement $ 334,506 $ 334,506 Administration (not to exceed 7.5%) $ 25,087 $ 25,087 Total Resources minus Admin $ 309,419 $ 309,419 $ (";r i,411 i Flood Ministries - Street Outreach* $ 25,000 $ 25,000 The Open Door Network - Shelter* $ 180,000 $ 70,000 The Open Door Network - Rapid Rehousing & Prevention* $ 498,430 $ 109,419 The Mission at Kern County - Shelter* $ 97,500 $ 70,000 The Open Door Network (AAFV) - Shelter $ 44,940 $ 35,000 Total (All Requests) $ 845,870 $ 309,419 $ (";r i,411 i 19 Shelter/Outreach Cap $200,703.60 PROPOSED • '2024-25 Description FY 24-25 FY 24-25 f % 3 24 Requested Projected e<:1 HOPWA Entitlement v $ 1,080,283 $ 1,080,283" .i Administration (not to exceed 3%) $ 32,408 $ 32,408 Total Resources minus Admin $ 1,047,875 $ 1,047,875 F 1,047,875 Kern County Public Health 7A FA $ FA MA FA FA FA FA 1,047,875 7A FA $ FA MA FA FA FA FA 1,047,875 71FA $ FA FA FA FA 7, Fffllll,, 1,047,875 Total (All Requests) $ 1,047,875 $ 1,047,875 F 1,04 8 Page 11 of 15 A I' U. 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