99-23104 RESO
RESOLUTION NO. 99.23104
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AND
AUTHORIZING THE IMPLEMENTATION OF THE PROPOSED
RELOCATION PLAN "A" FOR CITY OFFICES, TO 555 -17TH
STREET AND HISTORIC CITY HALL; DIRECTING THE
ADMINISTRATION AND THE CULTURAL ARTS COUNCIL TO
DEVELOP A PLAN OVER THE NEXT 18 MONTHS TO
RELOCATE THE AFFECTED CULTURAL ORGANIZATIONS (555-
17TH STREET LESSEES) TO ALTERNATE FACILITIES AND
THAT SAID PLAN INCLUDE AN ANALYSIS OF THE ECONOMIC
COSTS AND FUNDING SOURCES; FURTHER DIRECTING THE
ADMINISTRATION RELOCATE CITY OFFICES INTO CITY
FACILITIES AS NEEDED.
WHEREAS, on November 18, 1998, the Administration provided, and the Mayor and
City Commission referred, a status report on City-owned properties which are leased to other
entities (City as lessor), and privately owned properties which are leased by the City (City as
Lessee), to the Finance and Citywide Projects Committee; and
WHEREAS, on December 22, 1998, the Finance and Citywide Projects Committee
recommended consolidation of certain existing City offices at the City-owned facility located at
555-17th Street, by relocating the Parking Department and the Fire Administration and
Prevention Offices to said site, in lieu of Historic City Hall; and
WHEREAS, the Committee deemed that its recommendation would facilitate improved
communication and interaction among City offices; and
WHEREAS, the Committee further deemed that said recommendation would also
enable the Administration to lease Historic City Hall to private users, if directed by the Mayor
and City Commission, thereby generating lease revenues for the City; and
WHEREAS, on January 6, 1999, the City Commission directed the Administration to
explore other relocation options and propose a facility use plan utilizing the 555-17th Street site;
and
WHEREAS, based on the Committee's recommendation, and the Mayor and City
Commission's January 6, 1999, directive, the Administration prepared two possible facility use
plans for utilizing the 555-17th Street site, as proposed in the accompanying Commission
Memorandum and referred to as Relocation Plan "A" and Relocation Plan "B", which effectively
relocates certain City Departments to Historic City Hall and consolidates the remaining City
offices at 555-17th Street; and
WHEREAS, the 555-17th Street location currently houses the Concert Association of
Florida, including the Visitor and Convention Bureau office and conference room; the
Performing Arts Network; the Florida Dance Association; and the Miami Beach Employees
Federal Credit Union; and
WHEREAS, the Administration recommends that the Credit Union be permitted to
remain so as to facilitate access to its services by all City employees, subject to the negotiation of
a lease agreement which would require that it be responsible for its pro-rata share of operating
expenses; and
WHEREAS, the Administration recommended that the Mayor and City Commission
approve Relocation Plan "B", as proposed in the accompanying Commission Memorandum and
to be attached as Exhibit "A" hereto, which provided for the most efficient relocation of City
departments, and further recommended that the Administration be directed to assist in identifying
relocation alternatives for any cultural institutions which may be displaced.
WHEREAS, the Mayor and City Commission did not approve Relocation Plan "B", but
approved Relocation Plan "A", and directed the Administration and the Cultural Arts Council to
develop a plan over the next 18 months to relocate the affected cultural organizations (Lessees)
to alternate facilities and that said plan include an analysis of the economic costs and funding
sources, and further directed the Administration to relocate City offices into City facilities-as
needed.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA; that the
Administration be authorized to implement the proposed Relocation Plan "A" for the relocation
of City offices, to 555-1 7th Street and Historic City Hall; that the Administration and the
Cultural Arts Council develop a plan over the next 18 months to relocate the affected cultural
organizations (555-17th Street Lessees) to alternate facilities and that said plan include an
analysis of the economic costs and funding sources; that the Administration relocate City offices
into City facilities as needed.
PASSED AND ADOPTED this 17th day of March, 1999.
ATTEST:
~.~~
CITY CLERK
f!
MAYOR
JD:rd
APPROVED AS TO
FORM. LANGUAGE
. FOR EXECUTION
F:\DDHP\$ALLIASSE1\SSS 17RES.AMD 317/00
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CITY OF MIAMI BEACH
:ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO.
2 '2<"-Q'1
TO:
Mayor Neisen O. Kasdin and
Members of the City Co mission
DATE: March 17, 1999
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOL TION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AND AUTHORIZING
THE IMPLEMENTATION OF THE PROPOSED RELOCATION PLAN "B"
FOR CITY OFFICES, TO 555 - 17TH STREET AND HISTORIC CITY
HALL, UPON EXPIRATION AND SUBSEQUENT TERMINATION OF THE
EXISTING LEASES AT THAT LOCATION; FURTHER AUTHORIZING
THE ADMINISTRATION TO WORK WITH AND ASSIST THE AFFECTED
CULTURAL ORGANIZATIONS (LESSEES) AND TO EXPLORE
RELOCATING THEM TO ALTERNATE CITY-OWNED FACILITIES.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On November 18, 1998, the City Commission referred the Status Report on City-owned properties
which are leased to other entities (City as lessor) and privately owned properties which are leased
by the City (City as Lessee) to the Finance and Citywide Projects Committee. (Status report
attached. )
The Finance and Citywide Projects Committee met on December 22, 1998, and recommended
consolidation of existing City offices at the 555 - 17th Street location versus relocating the Parking
Department and the Fire Administration and Prevention Offices to Historic City Hall. The
Committee suggested this would facilitate improved communication/interaction among City offices
and functions and would enable the City to lease Historic City Hall to private users, if directed by
the City Commission, thereby generating leased revenue for the City. At this meeting, the City
Manager further recommended that the Credit Union remain in the 555 - 17th Street location as well.
continued....
AGENDA ITEM ~~
DATE --
The current users of the SSS - 17th Street facility are as follows:
555 17th St. TENANTS S.F. OCCUPIED ANNUAL RENT LEASE TERM EXPIRES
Concert Association of Florida 4375 S.F. $ 1485/yr. Month - to-Month
(includes VCA office & conf. rm.)
Performing Arts Network (PAN) 3424 S.F. $1 March 1999
Florida Dance Association 1023 S.F. $1 May 1999
Employees Federal Credit Union 1635 S.F. $0 No Lease
RELOCATION NEEDS:
To address the City's concerns to maximize and efficiently utilize the existing City-owned property
for public purposes, the Administration proposed relocation alternatives for the Fire Administration
and Prevention offices, Arts/Culture/Entertainment (ACE) & Other City offices, the Parking
Department, Credit Union and City Pension offices, based on the following needs:
Department Current Sq. Ft. Proposed S.F. Rent Savings
Fire Administration 1300 1500 $0
Fire Prevention Bureau 1652 2500 $0
Arts, Culture & Entertainment 1300 1500 $0
Other City Offices 1000 1000 $0
Parking Administration & Operations. 7000 4000 $108,881
Employees Federal Credit Union 1635 1000 $0
Employee and Elected Officials Pension 460 1500 $0
Police and Fire Pension 2500 2500i $30,000-$58,000
. Parking Department is relocating enforcement personnel to the 42nd Street Garage $138,881-$166,881
resulting in the reduction of square footage requirements.
Fire Administration & Prevention Bureau Offices:
The Fire Administration and Prevention Bureau offices are currently located in Fire Station #2. The
relocation of the Fire Administration and Prevention functions represents a $2 million cost avoidance
to the City which is the estimated cost of new facilities at Fire Station #2, that would otherwise be
necessitated.
Arts. Culture and Entertainment & Other Citv Offices:
Arts, Culture and Entertainment (ACE) currently occupies 1,300 square feet and is located on the
fourth floor of City Hall. It has been proposed to co-locate this office in the SSS 17th Street building
or to relocate the office to Historic City Hall or 701 Sth St. Furthermore, the Administration is
desirous of co-locating ACE with the Cultural Arts Council staff, the Convention and Tourism
Office and other culturally-oriented functions whose space needs and importance have outgrown
their present location. Additional space needs are estimated to require an additional I OOO/sf of office
area.
Parkin!! Administration & Operations:
The Parking Department currently leases 7,000 sf@ $15.55/sf, or $108,880 annually, at 777 17th
Street. The lease expires on June 30, 2000. As directed by the City Commission. the Administration
has explored several options and is proposing to relocate this department to a City owned facility
and to utilize the rent savings to improve their new offices.
Emplovees Federal Credit Union:
The Employees Federal Credit Union is currently located at 555 17th St. and due to its favorable
accessibility, it is recommended that this office remain at the same location, albeit one scenario
reflects a reduction in square footage. It is recommended that a lease, incorporating their pro-rata
share of operating expenses, be negotiated.
Ernvloyee and Elected Officials Pension Office:
The Employee and Elected Officials Pension Offices currently occupy approximately 460 s.f. of
space in City Hall on the third floor. The Pension Office's space needs have increased to
approximately 1,000 square feet. It has been proposed to relocate this office to the storage area on
the first floor of City Hall which consists of approximately 1,688 s.f. The Pension Board proposes
to pay for the build-out ofthe storage area, estimated at approximately $96,250, or $57/s.f., out of
pension funds. The remaining storage area will be utilized as common area meeting space.
Although the Pension Board has expressed its interest in remaining at City Hall, in addition to the
storage area on the 1st Floor of City Hall, staff could explore the possibility of relocating the pension
offices to 701 5th Street, with the consent ofthe Pension Board.
Police and Fire Pension
City staff also examined the feasibility of relocating the Police and Fire Pension Office that presently
leases approximately 2,500 square feet and at an annual rate $58,000, paid by the City through the
Pension plan costs, at 605 Lincoln Road. The Police and Fire Pension lease is for a term often
years. However, the lease may be terminated at any time after five years, with a one year notice, if
the City relocates the pension offices to a City facility. The lease commenced in July 1996 and
therefore the one year notice to terminate could not be given prior to July 2001.
Pursuant to the Pension Plan, the City funds the administrative and operating costs of the Police and
Fire Pension Board. Initial meetings with the Police and Fire Pension Board Administrator to
explore its potential relocation to the 701 5th St. location indicate that: (a) the Board would like to
approve/disapprove the relocation, and (b) they have expressed concern regarding the limited
parking and lack of security at the premises and in the area.
As a result of the lease termination provision, if the Commission directs the Administration to pursue
one of the subsequent proposed relocation alternatives, the following course of action is
recommended:
. Meet with Police and Fire Pension and seek their concurrence to relocate as proposed.
. Meet with the Landlord (Mera Rubell) pursuant to the Police and Fire Pension's existing
lease to explore earlier termination possibilities.
ANALYSIS:
Based upon the department needs identified above, this analysis will propose two alternate scenarios
incorporating estimated costs to relocate as delineated below:
ESTIMATED COSTS TO RELOCATE
.
RELOCATION SITE S.F. OCCUPIED ESTIMATED COST
TO IMPROVE
Historic City Hall - Ist 2,300 sf@ $351sf $80,500
Floor (Diner Space)
Historic City Hall (Iramco Already Improved Nominal
Space and Floors 4, 7 and 8)
555 - 17th Street 10,500 sf@ $35/sf $367,500
701-725 5th Street 3,156 sf@ $60,000 plus
$24.79/sf $20,000 contributed
by Portofino
Staff has based its relocation recommendations on the aforementioned City properties: Old City
Hall, SSS - 17th St. and 701 Sth Street. An accompanying commission item is included in today's
agenda, regarding the future use of701 Sth St. The agenda item identifies 3 potential users to be
relocated to 701 Sth St.:
1) Arts, Culture and Entertainment & Other City Offices
2) Employee and Elected Officials Pension Office
3) Police and Fire Pension Office
Each Relocation Plan presented hereafter, may be affected as a result of the ultimate identified user
of the 701 Sth St. space. For example, If ACE is moved to 7()I"Sth Street, both relocation plans will
reflect an additional 2,SOO s.f. of office space available for other City uses or for Cultural
organizations. If the Employee and Elected Officials Pension office is relocated to 701 5th St., then
the first floor storage area at City Hall will not be improved. rfPolice and Fire Pension offices are
relocated to 701 5th St., there should be no effect on either relocation plan proposed hereafter.
Relocation Plan "A"
rn the November Status Report, the following recommendations were made, and are hereinafter
referred to as Relocation Plan "A". Relocation Plan" A" effectively relocates the majority of the City
offices to Historic City Hall and explores the possibility of co-locating ACE and other City offices
at 5SS 17th St. or relocating them to Historic City Hall or 701 Sth St. Plan "A" does not require the
relocation of existing cultural organizations, located at SSS 17th St. rfPlan "A" is adopted, it is still
recommended that the City Commission adopt a policy regarding the future use of the SSS 17th St.
property as well as a policy on the use of other City properties by cultural institutions. The existing
tenants of SSS 17th St. either have expired, are soon-to-expire or have no governing lease document,
as previously described.
RELOCATION PLAN "A"
USER DEPARTMENT S.F. PROPOSED RELOCATION SITE COST TO TIME FRAME
RELOCATE
Fire Administration 1585 Historic City Hall (7th FI) Nominal ASAP
Fire Prevention Bureau 2449 Histonc City Hall (1st FI) Nominal ASAP
.
Arts/Culture/Entertainment Office & 1)2500 I) 555 - 17th Street I) $87,500 I)ASAP
Other City Offices 2) 1585 2) Historic City Hall (4th FI) 2) Nominal 2) June of 2000
3) 3000 3) 701 5th Street 3) $60,000 3) ASAP
plus $20,000
contributed by
Portofino
Parking Administration & Operations 4000 Historic City Hall (1st FI & $80,500 June of 2000
8thFI)
Employees Federal Credit Union 1000 555 - 17th Street 50 DONE
Employees and Elected Officials 1500 City Hall (lstFI) 596,250 ASAP
Pension (to be funded by
Pension Board)
Police and Fire Pension 1)3000 I) 701 5th Street I) $60,000 plus I) ASAP
2) 1585 2) Historic City Hall (4th) 520,000 2)ASAP
contributed by
Ponofino
2) Nominal
(funded from
rent savings)
TOTAL COST TO CITY: $140,500-
5167,500
Relocation Plan "B":
Based on the Finance and Citywide Project Committee's recommendation, and the City
Commission's action on January 6, 1999, directing the Administration to propose a facility use plan
for utilizing the 555-17th Street property, below is an alternate plan, hereinafter referred to as
Relocation Plan "B". Relocation Plan "B" effectively relocates the Fire Administration & Prevention
Bureau to Old City Hall and consolidates the remaining City Offices at 555 - 17th Street as follows:
555 -lITH STREET FACILITY USE PLAN
USER DEPARTMENT S.F. OCCUPIED RELOCA nON SITE
Arts/CulturelEntenainment Office 1500 555 . 17th Street
Other City Offices 1000 555 - 17th Street
Parking Administration and Operations 4000 555 - 17th Street
Credit Union 1000 5SS - 17th Street
Other ICultural Organizations. 3000 555 - 17th Street
TOTAL 10,500 S.F.
* This area may include one or more of the existing cultural tenants located at 555 - 17th Street,
including the VCA, Concert Association, Florida Dance Association or PAN.
Incorporating the proposed Facility Use Plan for 555 - 17th St., Relocation Plan "B" is presented
below:
RELOCATION PLAN "B"
USER DEPARTMENT S.F. PROPOSED RELOCATION SITE COST TO TIME FRAME
RELOCATE
Arts/Culture/Entertainment Office & 2500 555 - 17th Street $87,500 ASAP
Other City Otlices
Employees Federal Credit Union 1000 555 - 17th Street $35,000 ASAP
Parking Administration & 4000 555 - 17th Street $140,000 June of 2000
Operations
Other City Uses or Cultural 3000 555 -17th S1. $105,000 ASAP
Organizations
Fire Administration 1585 Historic City Hall (7th Fl) Nominal ASAP
Fire Prev~ntion Bureau 2449 Historic City Hall (1st FI) Nominal ASAP
Parking Administration & 4000 Historic City Hall (1st Fl & $140,000 June of 2000
Operations 8th FI)
Employees and Elected Officials 1500 City Hall (lstFI) $96.250 ASAP
Pension (to be funded by
Pension Fund)
Police and Fire Pension 2500 1)70 15th Street I) $60.000 plus I) ASAP
2) Historic City Hall (4th! 8th Fl) $20.000 2) ASAP
contributed by
Porto fino
2) Nominal
TOTAL $367,500
The cost to the City to implement Plan "B" is estimated at $367,500, (10,500 s.f. x $35 pst) which
represents the cost to refurbish the entire 555 - 17th Street building and may be funded from rent
savings. Plan "B" also reflects approximately 3,000 s.f. that can be programmed for other City uses
or for Cultural Organizations. This excess square footage may include one or more of the existing
cultural tenants located at 555 - 17th Street, including the VCA, Concert Association, Florida Dance
Association or Performing Arts Network.
As a result of the recommendations contained in Relocation Plan "B", the City Commission
requested the Administration to identify alternate City facilities for any displaced cultural
institutions. The attached chart, Exhibit 1, provides a listing of available City properties. City Staff
has noted that Exhibit 1 does not take into account:
. the cost to improve each property for each potential user
. the displacement of other non-City users
. potential zoning restrictions, limiting office use
Furthermore, and as requested by the City Commission on January 6,1999, the assessed values of
the subj ect properties are also provided in Exhibit 1. Please note that certain City facilities are
located within City parks or in the Govemment/Convention Center complex and are recorded as part
of a larger assessed value; therefore, no specific value is attributable to the individual facility.
Ultimately, the market value of the subject properties should be determined based upon the proposed
use, highest and best use, term of use, cost to improve, and comparable sales.
PLAN "A" YS. PLAN "B":
The cost to implement the altemate plans is estimated at $167,500 for Plan "A" ys. $367,500 for Plan
"B". Although Plan "A" reflects a lower cost to the City to implement, it should be noted that the
City or a future lessee, will need to improve the 555 - 17th St. facility based upon its deteriorating
condition and based upon its ultimate use. Inevitably the City will need to invest and improve the
555 -17th Street facility. Unlike Plan "A", Plan "B" will impact some of the existing cultural
organizations that will need to be relocated, which may require further capital outlay by those
organizations.
ECONOMIC BENEFITS OF RELOCATION PLAN "B":
Notwithstanding, the City's goal to maximize and efficiently utilize the existing City-owned property
for public purposes, Relocation "B" will also provide the following benefits to the City and
Community:
. will facilitate improved communication/interaction among City offices and functions
. will enable the City to lease Historic City Hall to private users, thereby generating leased
revenue for the City, based on Commission directive
. will enable all City, culturally-oriented functions whose space needs and importance have
outgrown their present location, to consolidate
. will permit existing City offices to expand and accomodate their increased space needs
. will result in rental expense savings to the City of approximately $138,881-$166,881,
annually
. the relocation of the Fire Administration and Prevention Bureau represents a $2 million cost
avoidance to the City which is the estimated cost of new facilities at Fire Station #2, that
would otherwise be necessitated
. the timely relocation of the Fire Administration and Prevention Bureau will expedite the
much needed improvements identified for Fire Station #2, while reducing the overall project
cost
. the proposed relocation recommendation will give prominence and favorable exposure to
these important City functions
. although the estimated cost to implement Plan "B" ys. Plan "A" is initially greater, in the
long-term, the City will inevitably need to invest and improve the 555 -17th Street facility
. will allow for efficient consolidation and programming of City functions
. will retain 3,000 s.f. of space at the 555 - 17th Street facility that can be utilized for other
City offices or Cultural Organizations
CONCLUSION:
It is recommended that the City Commission adopt the Resolution accepting and authorizing the
implementation of the proposed Relocation Plan "B" for certain City offices to 555-l7th Street and
Historic City Hall, upon expiration and subsequent termination of the existing leases, and further
authorizing the Administration to work with and assist the affected cultural organizations to explore
relocating to alternative City-owned facilities and/or other areas.
SR:C~Ph~
T:IAGENDA\ \ 999\MAR1799\REGULAR\5SS _17ST.MEM 314199
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