HomeMy WebLinkAboutRESO 9541DocuSign Envelope 10: 027AODE5-9107-47F2-9408-85EBA01832EE
Resolution No. 9541
Resolution of the Council of the City of Palo Alto Amending Rate Schedules
W-1 (General Residential Water Service), W-2 (Water Service from
Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-
Metered and General Non-Residential Water Service), and
W-7 (Non-Residential Irrigation Water Service) to Increase Water Rates 4%
and Add Drought Surcharges
RECITALS
A. On January 17, 2014 the Governor of the State of California proclaimed a State of
Emergency due to severe drought conditions. On April1, 2015 the Governor issued Executive Order
proclaiming that severe drought conditions continue to exist, and ordering the State Water Resources
Control Board to adopt regulations imposing mandatory water use restrictions on water suppliers to
achieve a 20% reduction in statewide potable water use through February 28, 2016.
B. On May 5, 2015, the State Water Resources Control Board adopted regulations
imposing upon Palo Alto a mandatory 24% reduction in potable water consumption from June 1, 2015
through February 28, 2016, compared to 2013 consumption levels.
C. The City's costs of distributing water and managing its operations are mostly fixed, and
will not decrease despite decreases in water consumption during a drought. Customer response to
this call for mandatory reductions will result in reductions in water sales revenue.
D. The City, on June 15, adopted the FY 2016 Water Utility Financial Plan (Staff Report
5881), which determined an additional12% increase in revenue was needed for FY 2016 due to
increased water supply costs. On June 15 the City adopted an 8% increase to its water rates effective
July 1, 2015 (Staff Report 5814}.
E. Based on an analysis conducted by an independent water rate consultant, staff has
determined that an additional 4% increase to normal year water rates is necessary to achieve
adequate revenue to fund operations for FY 2016. Staff has also recommended that a structure of
drought surcharges be adopted that can be activated by a Council determination of the existence of a
drought, water shortage, or other restriction on local water use.
F. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City
of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
G. On August 17, 2015, the City Council held a full and fair public hearing regarding the
proposed rate increase and drought surcharge and considered all protests against the proposals.
H. As required by Article XIII D, Section 6 of the California Constitution and applicable law,
notice of the August 17, 2015 public hearing was mailed to all City of Palo Alto Utilities water
customers by July 1, 2015.
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I. The City Clerk has tabulated the written protests received and it is determined that a
majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-1 (General Residential Water Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W-1, as amended, shall become effective September 1, 2015.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W-2, as amended, shall become effective September 1, 2015.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-3 (Fire Service Connections) is hereby amended to read as attached and incorporated.
Utility Rate Schedule W-3, as amended, shall become effective September 1, 2015.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended, shall become
effective September 1, 2015.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W-7, as amended, shall become effective September 1, 2015.
SECTION 6. The revenue derived from the adoption of this resolution shall be used only for
the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 7. The City Council finds as follows:
a. Revenues derived from the water rates approved by this resolution do not exceed the
funds required to provide water service.
b. Revenues derived from the water rates approved by this resolution will not be used for any
purpose other than providing water service.
c. The amount of the water rates imposed upon any parcel or person as an incident of
property ownership shall not exceed the proportional cost of the water service attributable
to the parcel.
SECTION 8. Each of the rate schedules adopted by this resolution includes a structure of
drought surcharges that correspond to different levels of water use reduction in the City. In order to
charge the lowest drought surcharge possible, the City Council has adopted not only the surcharge
required to meet the 25% reduction level, but also surcharges reflecting two lower levels of water use
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reduction. At any time, no more than one of these three surcharges will be applicable. A drought
surcharge will be collected if, by resolution, the City Council determines that a drought, period of
water shortage or restriction on local water use exists, necessitating or causing the existence of
citywide water reduction efforts at the 10115%, 20% or 25% level. The collection of the surcharge at
any of the levels approved by this resolution does not, in itself, constitute an "increase" of water
charges above the rates approved by this resolution and considered at the August 17, 2015 public
hearing.
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DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
SECTION 9. The Council finds that the adoption of this resolution changing water rates to
meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain
funds for capital improvements necessary to maintain service is not subject to the California
Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and
Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all
attachments presented to Council, the Council incorporates these documents herein and finds that
sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA
exemption.
INTRODUCED AND PASSED: August 17, 2015
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHMID, WOLBACH
NOES:
ABSENT: SCHARFF
ABSTENTIONS:
Mayor
APPROVED AS TO FORM: APPROVED:
lnDoouSigned by:
L::t~~--
Senior Deputy City Attorney
(\_DoouSigned by:
~::'~!~~
Director of Utilities
IJ.DoouSigned by:
~0!~96 ...
Director of Administrative Services
052615sdl6053336 4
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
A. APPLICABILITY:
This schedule applies to all separately metered single family residential water services.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
Monthly Service Charge:
For 5/8-inch meter ...................................... : ...................... : ...................................... .
For 3/4 inch meter .................................................................................................... .
For 1 inch meter ....................................................................................................... .
For 1 1/2 inch meter ................................................................................................ ..
For 2-inch meter ....................................................................................................... .
For 3-inch meter ....................................................................................................... .
For 4-inch meter ....................................................................................................... .
For 6-inch meter .............................................................................. · ......................... .
For 8-inch meter ....................................................................................................... .
For 10-inch meter ..................................................................................................... .
For 12-inch meter ................................................ : ..................................................... .
Commoditv Rate: (To be added to Service Charge and applicable to all pressure zones.)
Per Meter
Per Month
$ 16.03
21.50
32.45
59.83
92.67
196.70
350.00
716.82
1,319.07
2,085.57
2,742.56
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Tier 1 usage ........................................................................................................................ $5.93
Tier 2 usage (All usage over 100% of Tier 1)........................................................................ 8.38
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\I/~ ........: ~
Supersedes Sheet No W-1-1
dated 7-1-2015
-~ CITY OF PALO ALTO ~ UTILITIES Effective 9-1-2015
Sheet No W-1-1
DocuSign Envelope 10: 027AODE5-9107-47F2-9408-85EBA01832EE
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
Drought Surcharges:
A drought surcharge will be added to the Customer's applicable Commodity Rate for Tier 1 and Tier
2 water usage when the City Council has determined that a water reduction level is in effect for the
City as described in Section D.3. The drought surcharges in the table below are measured in dollars
per hundred cubic feet ( ccf).
Water Usage Levell (10/15%) Level2 (20%) Level3 (25%) Reduction level
Tier 1 0.19 0.39 0.59
Tier 2 0.55 1.14 1.76
Temporary unmetered service to residential
subdivision developers, per connection ........................................................................ $6.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Calculation of Usage Tiers
Tier 1 water usage shall be calculated and billed based upon a level of0.2 ccfper day
rounded to the nearest whole ccf, based on meter reading days of service. As an example,
for a 30 day bill, the Tier 1level would be 0 through 6 ccf. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\II~ ........:: ;.,..;'
Supersedes Sheet No W-1-2
dated 7-1-2015
-~ CITY OF PALO ALTO
" UTILITIES Effective 9-1-2015
Sheet No W-1-2
DocuSign Envelope JD: 027AODE5-9107-47F2-9408-85EBA01832EE
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
3. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10115%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-3
dated 7-1-2015
·~\l/~ -.....;: :;...o"
~ CITY OF PALO ALTO
" UTILITIES
{End}
Effective 9-1-2015
Sheet No W-1-3
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
A. APPLICABILITY:
This schedule applies to all water taken from fire hydrants for construction, maintenance, and
other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch .......................................................................................................................... . 50.00
125.00 3 inch .......................................................................................................................... .
2. Commodity Rate: (per hundred cubic feet) $6.92
3. Drought Surcharges:
A drought surcharge will be added to the Customer;s applicable Commodity Rate when the
City Council has determined that a water reduction level is in effect for the City as described in
Section D.5. The drought surcharges in the table below are measured in dollars per hundred
cubic feet ( cct).
Water Usage Levell (10/15%) Level 2 (20%) Level 3 (25%) Reduction level
Surcharge 0.24 0.49 0.72
D. SPECIAL NOTES:
1. Monthly charges shall include the applicable monthly service charge in addition to usage billed at
the commodity rate.
2. Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a
hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersf;Jdes Sheet No W-2-1
dated 7-1-2015
~\I/~ -....;: ~ --CITY OF PALO ALTO ~ UTILITIES Effective 9-1-2015
Sheet No W-2-1
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or
revoked for failure to pay such fee.
3. A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a
prerequisite to the issuance of a permit and meter(s). A charge of$50.00 per day will be added for
delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or
damaged parts.
4. Any person or company using a fire hydrant improperly or without a permit, or who draws water
from a hydrant without a meter installed and properly recording usage shall, in addition to all other
.applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
5. During period of water shortage or restrictions on local water use, the City Council may, by
resolution, declare the need for citywide water conservation at the 10115%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought
Surcharge is to recover revenues lost as a result of reduced consumption.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2~2
dated 7-1-2015
~\I/~ -.....;: ,...... --CITY OF PALO ALTO ,~ UTILITIES
{End}
Effective 9-1-2015
Sheet No W-2-2
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
A. APPLICABILITY:
This schedule applies to all public fire hydrants and private fire service connections.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
1. Monthly Service Charges
Public Fire Hydrant.................................................................................................... $5.00
Private Fire Service:
2-inch connection....................................................................................................... $3.43
4-inch connection....................................................................................................... 21.22
6-inch connection ............................................................................................... ,....... 61.63
8-inch connection ....................................................................................................... 131.34
10-inch connection ..................................................................................................... 236.20
12-inch connection ..................................................................................................... 381.52
2. Commodity (To be added to Service Charge unless water is used for fire extinguishing or
testing purposes.)
Per Hundred Cubic Feet
All water usage ........................................................................................................... $10.00
D. SPECIAL NOTES:
1. Service under this schedule may be discontinued if water is used for any purpose other
than fire extinguishing or testing and repairing the fire extinguishing facilities. Using
hydrants and fire services for other purposes is illegal and will be subject to the
commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo
Alto Municipal Code.
2. For a combination water and fire service, the general water service schedule shall apply.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-1
dated 7-1-2015
~\II~ ~ .;,.; --.. CITY OF PALO ALTO ,~UTILITIES Effective 9-1-2015
Sheet No W-3-1
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire
Services.
4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of
water if records and documentation are supplied by the customer ..
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-2
dated 7-1-2015
~\I/~ ........:: ,..... -.._ CITY OF PALO ALTO ,~UTILITIES
{End}
Effective 9-1-2015
Sheet No W-3-2
DocuSign Envelope 10: 027AODE5-9107-47F2-9408-85EBA01832EE
A. APPLICABILITY:
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W -4
This schedule applies to non-residential water service in the City of Palo Alto and its distribution
area. This schedule is also applicable to multi-family residential customers served through a master
meter.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
c. RATES:
Monthly Service Charge
For 5/8-inch meter
For 3/4-inch meter
For l-inch meter
For 1 Yz-inch meter
For 2-inch meter
For 3-inch meter
For 4-inch meter
For 6-inch meter
For 8-inch meter
For 10-inch meter
For 12-inch meter
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month
Per ccf
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\II~ .......;: :;,...-'
Supersedes Sheet No W-4-1
dated 7-1-2015
-~ CITY OF PALO ALTO
" UTILITIES
Per Meter
Per Month
$ 16.03
21.50
32.45
59.83
92.67
196.70
350.00
716.82
1,319.07
2,085.57
2,742.56
All Pressure Zones
$ 6.92
Effective 9-1-2015
Sheet No W-4-1
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W -4
Drought Surcharges:
A drought surcharge will be added to the Customer's applicable Commodity Rate when the City
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet
(ccf).
Water Usage Levell (10/15%) Level2 (20%) Level 3 (25%) Reduction level
Surcharge 0.24 0.49 0.72
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Cot~;ncil may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-2
dated 7-1-2015
~\II~ -.....;: ~ -~ CITY OF PALO ALTO
" UTILITIES
{End}
Effective 9-1-2015
Sheet No W-4-2
DocuSign Envelope ID: 027 AODE5-91 07-4 7F2-9408-85EBA01832EE
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
A. APPLICABILITY:
This schedule applies to non-residential water service supplying dedicated irrigation meters in the
City of Palo Alto and its distribution area.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
c. RATES:
Monthly Service Charge
For 5/8-inch meter
For 3/4-inch meter
For l-inch meter
For 1 112 inch meter
For 2-inch meter
For 3-inch meter
For 4-inch meter
For 6-inch meter
For 8-inch meter
For 1 0-inch meter
For 12-inch meter
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month
Per ccf
Drought Surcharges:
Per Meter
Per Month
$ 16.03
21.50
32.45
59.83
92.67
196.70
350.00
716.82
1,319.07
2,085.57
2,742.56
All Pressure Zones
$ 8.29
A drought surcharge will be added to the Customer's applicable Commodity Rate when the City
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet ( ccf).
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-1
dated 7-1-2015
~\I/~ """ ~ -~ CITY OF PALO ALTO ~, UTILITIES Effective 9-1-2015
Sheet No W-7-1
DocuSign Envelope ID: 027AODE5-9107-47F2-9408-85EBA01832EE
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
Water Usage Levell (10/15%) Level2 (20%) Level 3 (25%) Reduction level
Surcharge 0.51 1.18 1.93
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer's bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\I/~ :;.,..-'
Supersedes Sheet No W-7-2
dated 7-1-2015
-~ CITY OF PALO ALTO ~ UTILITIES
{End}
Effective 9-1-2015
Sheet No W-7-2
Docu~.
"'
Certificate Of Completion
Envelope Number: 027AODE5910747F2940885EBA01832EE Status: Completed
Subject: Please DocuSign these documents: RESO 9541 Water Rate Adoption Final7-15-15.pdf, RESO 9541 Water ...
Source Envelope:
Document Pages: 15
Certificate Pages: 5
AutoNav: Enabled
Envelopeld Stamping: Enabled
Record Tracking
Status: Original
8/25/2015 3:43:31 PM PT
Signer Events
Amy Bartell
Amy.Barteii@CityofPaloAito.org
Management Spec
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 7/16/2015 5:52:40 AM PT
ID: d8ecb53d-ef81-4016-8886-1560c48de42a
Lalo Perez
Lalo.Perez@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
Valerie Fong
Valerie.Fong@CityofPaloAito.org
Utilities Director
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
Ed Shikada
ed.shikada@cityofpaloalto.org
ACM
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered
ID:
In Person Signer Events
Editor Delivery Events
Signatures: 4
Initials: 0
Holder: Kim Lunt
kimberly.lunt@cityofpaloalto.org
Signature
(/jDocuSigned by:
L::1.e1~
Using IP Address: 199.33.32.254
Using IP Address: 199.33.32.254
Using IP Address: 70.197.11.143
r,DocuSigned by:
L!Z1:!:"
Using IP Address: 67.169.110.203
Signed using mobile
Signature
Status
Envelope Originator:
Kim Lunt
250 Hamilton Ave
Palo Alto , CA 94301
kimberly.lunt@cityofpaloalto.org
IP Address: 199.33.32.254
Location: DocuSign
Timestamp
Sent: 8/25/2015 3:46:38 PM PT
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Signed: 8/26/2015 6:51:48 AM PT
Sent: 8/26/2015 6:51:49 AM PT
Viewed: 8/26/2015 7:52:08 AM PT
Signed: 8/26/2015 7:52:36 AM PT
Sent: 8/26/2015 7:52:38 AM PT
Viewed: 8/26/201511:15:57 AM PT
Signed: 8/26/201511:16:52AM PT
Sent: 8/26/2015 11:16:55 AM PT
Viewed: 8/26/201510:48:18 PM PT
Signed: 8/26/2015 10:48:37 PM PT
Timestamp
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• $1(;UIIlll