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HomeMy WebLinkAbout01/09/1989, 2B - USER FEE ANALYSIS ���H��91��IdIIIII�IIIALIIUIII "J f 1 M�I1NG GATE: Ci � SanLUIS OB�Sp� 1/9/89 COUNCIL AGENDA REPORT ITEM NUMBER:IA FROM William C. Statler, Director of Finance SUBJECT: USER FEE ANALYSIS CAO RECOMMENDATION Review and discussion of the findings of the User Fee Analysis Report (Phase I of the Financial Services Study) and consideration of cost recovery policies. OVERVIEW In conjunction with the Financial Services Study approved by the City Council on February 23, 1988, the User Fee Analysis component (Phase I) has been completed. Executive Summaries of the resulting Cost Allocation Plan and User Fee Analysis have been distributed to the City Council (along with a cover memorandum describing the reports) in preparation for this study session. As noted in the cover memorandum and Executive Summaries, a potential increase of approximately $2 million in user charges from non-enterprise operations has been identified from present and new fee areas. Additionally, the cost allocation plan component of this study has identified $576,000 in additional general government reimbursements from the City's enterprise funds, of which $149,300 has already been incorporated into the 1988-89 Budget. The purpose of this study session is to review the findings of the User Fee Analysis, and to discuss appropriate cost recovery policies. Provided in Exhibit A are summaries of the user fee analysis by functional area which provide initial recommendations for cost recovery goals for each major service activity. Under these initial recommendations, an increase of approximately $1.03 million in user charges from non-enterprise operations would be generated. BACKGROUND At their February 23, 1988 meeting, the City Council approved the performance of a Financial Services Study with consultant assistance from the firms of Evensen Dodge and Vertex Cost Systems. The Financial Services Study is composed of three major phases summarized as follows: Phase I - City-Wide Cost Allocation Plan and Cost Recovery Proxram This portion of the work program is primarily the responsibility of Vertex Cost Systems acting as a subcontractor to Evensen Dodge, and includes the following elements: • Development of a City-wide cost allocation plan to determine the total operating costs of providing municipal services. • Determine current and potential user fees and related activity costs. • Comparison of the City's current and proposed fees with other agencies. • Development of indirect cost rates for use in federal and state grant programs. RECEIVED JAH 4 SM 0;2 OTYCL RK , 5MLWSot95P0.CA city of SAN JUIS OBISpo MIZO COUNCIL AGENDA REPORT Phase II - Comprehensive Financial Manaaement Plan Using the cost of service information developed under Phase I, this portion of the workscope is the responsibility of Evensen Dodge, and includes the following elements: • Review of capital financing requirements. 0 Evaluation of existing debt. • Review of financial policies. • Analysis of current financial position. • Development of pro forma financial projections through the year 2000. • Identification of financing alternatives. • Recommendations regarding financing plans and schedules. Phase III - Proiect Financings Evensen Dodge is also responsible for this element of the workscope by acting as Financial Advisor to the City for any specific debt financings issued in accordance with the Plan developed under Phase II. As noted above and in the User Fee Analysis Executive Summary, the primary focus of Phase I of the Financial Services Study is on non-enterprise operating programs. Revenue alternatives for costs associated with capital projects - such as impact fees - will be addressed in Phase II of the Financial Services Study. COST OF SERVICES METHODOLOGY As described in each of the report documents, the user fee analysis is based on the "total cost" of providing services, which is comprised of three major components: • Allocation of City-wide support costs such as finance, personnel, and city clerk. 0 Program administration costs, which are generally included in departmental budgets. • Direct costs specifically identified with providing a particular service or activity. In developing the service costs reflected in the Executive Summaries, the following supporting documents have been prepared and are available for review in the City Clerk's Of f ice: I 1111111111111p AIN city 0� SM tubo OBISpo ffft-mA COUNCIL AGENDA REPORT Allocation of City-Wide Support Costs • General Government Allocation Summary User Fee Work Papers • Public Safety • Leisure, Cultural, and Social Services 0 Community Development COST RECOVERY POLICY ISSUES Although the Phase I report identifies the maximum revenue potential available from each of the City's non-enterprise operating activities, the major policy issue associated with this component of the Financial Services Study is not addressed in this document: • What level of cost recovery should be achieved through user charges? Cost recovery policies have been formally established for the enterprise funds and recreation programs; however, no specific cost recovery goals have been developed for other program areas such as planning, engineering, or building and safety. In considering the uses of the User Fee Analysis and cost recovery policies, the following issues should be considered: Purpose of the Cost of Services Study/User Fee Analysis The following is a brief summary of the uses of the Cost of Services Study/User Fee Analysis: • To identify the total cost of providing municipal services and related level of General Fund support. • To provide a technical basis for ensuring reasonable cost recovery in the setting of service charges. • To ensure that the community-at-large is not bearing a disproportionate share of the cost of providing special services. • To encourage the appropriate allocation of resources and services based on demand through the use of pricing policies. • To recover the indirect costs associated with administering grant programs as allowable under existing federal and state regulations. I � - -3 , - r "� � ►�hlllll�p j►� 1 city of say Luis OBIspo - COUNCIL AGENDA REPORT Methodology for Setting User Fees In determining cost recovery policies, the following concepts concerning the level of cost recovery and the beneficiaries of the service should be considered: • The level of user fee cost recovery should be based on the community-wide versus special service nature of the program or activity. The use of general purpose (tax) revenues is appropriate for community-wide services, while user fees are appropriate for special services. Any specific program or activity may possess elements both of these aspects in varying degrees, and as such, a policy of charging user fees ranging from 0% to 100% (similar to the City's policy regarding recreation user fees) may be appropriate depending on the nature and type of service. • After considering community-wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant would be appropriate. RECOMMENDED COST RECOVERY GOALS As noted in the Overview section, initial recommendations for user fee cost recovery goals are provided in Exhibit A. In preparing these initial recommendations, in-depth discussions were held with each affected department, during which the following factors were considered in addition to the community-wide benefit/service recipient concepts discussed above: • Current cost recovery policies. (In the case of recreation programs, the current percentage goals have been maintained.) • The need for a unified approach in determining the mix of service fees and general purpose revenues in funding various programs and activities. • Sensitivity to smaller users in the subsequent development of rate structures, especially as they relate to regulatory services. It should be noted that the recommended cost recovery goals have primarily been developed to facilitate the Council's review and discussion of user fee policies. As such, staff anticipates that the Council may make significant changes in various fee categories. Additionally, the Council may wish to consider a phased approach in implementing specific cost recovery policies. For example, cost recovery goals may be established which will be incrementally achieved over a two or three year period. FUTURE ACTION No specific action on the user fee analysis or recommended cost recovery policies is anticipated at this study session; however, completion of Phase II of the Financial Services Study (comprehensive financial planning) would be facilitated by having some sense of user fee potentials in performing financial projections through the year 2000. With these pro forma projections, the need for revenue enhancements in meeting the City's operating and capital needs can be better identified. "'ally gIglp city of SM tulo OBISpo oft COUNCIL AGENDA REPORT As noted previously, it is anticipated that the policy issues regarding user fee cost recovery will be addressed during the 1989-91 Financial Plan preparation and approval process. In conjunction with this policy development and approval process, the following actions are anticipated: Chamber of Commerce Review - The Chamber has been notified of this study session, and at least one presentation of the report findings to Chamber representatives has been tentatively scheduled for early February. Develonment of Fee Schedules - A description of the current rate structure for each fee category compared with the resulting rate structure at the maximum cost recovery level is provided in the User Fee Analysis Executive Summary. Based on initial City Council response to the user fee report, a comprehensive fee schedule will be prepared for City Council review. Fee Implementation - It is anticipated that the resulting fee schedule will be implemented effective with the approval of the 1989-91 Financial Plan, with actual implementation to follow 60 to 90 days thereafter to ensure a smooth transition period. Oneoine Review - It is anticipated that the subsequent cost recovery policy and fee schedule will provide for an ongoing review and adjustment of fees. Although a variety of approaches are available, a method similar to that recently adopted by the City Council for golf fees may be considered: Comprehensive cost of service study at least every five years. • Subsequent CPI adjustments scheduled on an annual basis. i • Adjustment to the fee schedule in addition to CPI increases subject to CAO approval within specified policy parameters. • Special fee adjustments as identified and approved by the City Council during the budget process. SUMMARY The Executive Summary of Phase I of the Financial Services Study (User Fee Analysis) along with the Executive Summary of the Cost Allocation Plan have been distributed for City Council review in preparation for this study session. The primary policy issue associated with the findings of this analysis is the development and adoption of cost recovery guidelines, which will be addressed in conjunction with the 1989-91 Financial Plan preparation process. To begin this policy discussion, tentative recommendations for cost recovery goals for each major service activity are provided in Exhibit A. JON S: inistra ''ve Officer rney FINSRVCS/USRFEEAN 0�z —A6— � 1 i i EXHIBIT A USER FEE ANALYSIS SUMMARIES Exhibit Reference No. Revenue. Summary - All Functional Areas Combined A. 1 Revenues by Major Service Activity: Public Safety: Current Fee Areas A.2 New Fee Areas: Police A.3 Fire A.4 Community Development: Current Fee Areas A.5 New Fee Areas A. 6 Leisure, Cultural, and Social Services A.7 FINSRVCS/USRSUMMS EXHIBIT A.1 U m m N O M I {t� r r r U h N IO A N U l d d . IIN i _ i P A •O P ' m M rQ M r m r N O n m r v P O 11 II 4=1 d 11 K 11 r . r r r It 11 r . r r r r r 11 U • yyIt1 a-C ape aA•O r aT px, ex.pp ex.pp r to . i! a! r iM1�! . iE 11 11 m L i P pp r yl r O O •O O r A . ti P 1� N 11 0 U > . O M r N . A p r n n O r N N N r A M P CNOVP1 r •O ' n 0 h 1 n 4 n U I ii 11 7 m • O. r le tNn I O. Ir It In P �f N M r 1A •O nD 11 11 YC r . r 1r1 r . . 11 N M . h r r M M . � � ' r r0 . co 11 d n r r r r r r r n u pp. 00 . N I�fTf ' O II n o r PON P 1n CO •O P i to I O p art� . N r �f II d M O r 10 . r 11 N U If n 11 u N11 n n u It d C NA . Y1 In O 8 tv M IS r OO r A 11LeiY 11 N 000> i to i O N M N 11 L d r N d . N r m Y1 U 4R n u m ' V OA i ' . p0pp •�G} P . �f r M r r A 11 N O v It P it n L r N Ir, .o N r P . 1; II 11 d . ,.OP . •O N N IM` N r r N . M r {fl II 11 U ILI 1 2 11 n W U U r . U > tl U W of u 0 O N U d U" u N U j >^ 4 L J It u m i W c It m m ILI 13 d LU u i do n > to nen � L I., u d ae N n 0 u N o n 11 CL It � w N n m m u . yC It O N Gid O In E aTi rte. U A G w n L r J m U O r10 J U d T4j Ym • N _ •' 3m N O~N Y .:1n C H 0 O J n tiw It C m m mW NU Y Ld O It 10 p 1 7 u a r m a eme d EXHIBIT A.2 n n _ n u II d7C d , M v O .N . m 113 1 N O O O .O M A N , m Il W Oml O aftO� M M O. II Ifs ' P Go11 11 > L , m Ifl N M , ll , fes` O O w W n II N M II II 11 °uY 11 ii u d u n n a 4 n � un , n n n u u + n n u N n n n n iOe x: !ot x X X. X I X n ae X X at at X X it x it X ii 11 « �. , o ooMo , n o 000 00 , .o n u fq L 0 0 0 0 0 .r o �. n 0 0 0 0 O O an 4 Is coo i o 0 0 0 0 0 ii 0 0 0 0 0 0 - 11 o , 000 oo. o , o. a �.' o0 00 �' oo 1n u 11 Y , �' , 11 IIm u v uIs a m n n u n n II , 11 n A 9 ��pp M �A 1ilr� is . N II N O O O .O is n 11 ti . O O O ^ N A .O . O 11 m N ' If1 OO q . II u N �t N O M 11 1� P M N m 11 y u K C m�p to N M co I P n O_ m 0 Ifl I A 11 E 11 m d , N , M II M , N U II O , N n ~ , W 11 « 4 11 11 t q , It , u « n n n a n n « u x X x x' _X x X 9 �[ X X X X arc Y1 M Y1 , 11 N .O •O m P d' O , O n N O V O •O 1n v v , In 11 q O ; n U > , N Y1 ..rr V1 P n P ..rr N N Y1 d �T mm O N , A II Y Y , .O Y1 m Y1 N .O N , U1 II .O •O •O m I M 11 u cr I I li I ii II It u 0R n u u u n d u n n L n 11 u Is , , n n d A M O N N c .p , O 11 qD 11�� O Y� UN v N O M , U v IA N1 M P I+1 M Cq 1 !� II t n m 1H N' M CO I P n O M M m O ' U% , M n Y UH , r . M U N M , M In, O li H I N n N i N 11 C n1dOO OO DO MM n in O O0pN U O a , . M u P MO W U d > M b O M d' O n Q W A r II > LL 11 L m . . N qN N .p 11 O 6 11 O. Q . N , N n 11 U u II n U n n a « n . . u . n m. °a 11 a u u n q d V . N .f .O M K m' A . A q m N M n1 iO O N P . M 11 c o n Y m . pp o ((��11 11�r� P m . P n ��rr .r p. a7 b In m M . .O n C n O . A m eN; .O O .O .s . .s a O. N P P M o P v N v n d VI II > V _� . 11 a > W n d . N M N N' . A u '.r I M P iO P M U, 1t. d oc n rR N , M 11 pIft M M a n Is w q m n � n n n x n n u m .- 4 n z u . CC A •. W 4 O y 0 N U W 11 « N ec n m m L O ngo L « d m to K m d co g o Ml o. n cc 4. C t m m m c ou �c rA ' m u I p a 0 u Y L m m « x e _ m m « m V m « L Om OI m d O 11 , « « m H i \ I « u d c a « z u z � zm41 u 6 d u « . d C E > m u C « > O d m m y z n m v L w « m O m w g « m V « g a u v I d Bi o `� c 5 ° o 5 g' H u Y a o �+ a m 1- m m a v m y cc rA .. a m m € u u u .. Lm Lm m « m m m m a 1- U ti C d m N N Y C N C m H n d J O c Ii < U W z K 2 2 W U = 1- U m . O .- N -- U 4 7 . d LL v v MIBIT A.3 u m7 m N O O M •Pp O M O O O O O O O O A � •O tt It C > N P M •OO 11 11 CCC > L W A �? N m II {� �n n I V II Y d n 1Ic 1 n n 1 n u n u n 1 M M 1 n tt xxx xxxxaoe ?04 aoexxxx x tt II 'O M ]• 1 0 0 0 0 0 0 0 O O O O O O 1 N 11 11 y W G O O O O O O O O O O O O O O O O 1 d I< It UO > IA o 0 o 0 0 0 0 0 0 0 0 0 0 0 O @ u 11 O N O O N O 11 @ 11 u • II E 11 ac 1 u u u y 1 u n n v v 11 u 11 1 nu 0 N v N A N M N 1fl A n u �+ N„ N 1� �t N 1� O• • Yt II _ It = O ; r 1 fN� n u yE u a 1 n 8 n $ n � n n ' n � II T P M mP In N ut •O •` M P P p, P O 1� • N II O7 n 'O_ O In �t N a0 O I� O CO CO C, n N �1 'IA M P N A N EO M N YMt A •NO 1 0 u C p u m u N N N P co n Y ' 1 p 11 O 1 u C It W Ynu CJ It t ri rCIt, O o 0 0 0 0 0 0 o O o 0 0 0 0 0 M I� is w > 1 it 1: m °n D. O0 n o Y u u v nu n 1_ J n 11 0 1 11 � U N Y 1 A M ID P N N N •O M P P �• P O A • N n V O 11 U W O ^ . N a0 O A O Cp CD M O N • N 11 11 O : N Q Yl M P N I� In CD M N N A •O : t0 it C to II > ud 1 _ pD.. W It m N N N O• GO M N �- •• ' A ' ' tV A u > A r 11 1>1 d a h ; u> _ 11 w IS II n m, ILI 11 W n at V Y N 1 11 u Oa u • z Y W 11 I n C u n a d O it m c c a°ic ry w to y u no N u i m S > > > Q C m C 11 • YI O V d D. W W >• ID O x N J II d E O > 0 CC7 C 1U W G C) n C1 C W L y > r L C7 f0 d d m O d m 2 n Cl 1 Y m G O + W N d< L C " In It a al l- a I u WO 4n mV W•• m vm J m w11 L m Lm V V > O 7 IN. u L Vm O O O Ou Qc 6 II 2 1Y y W V V C > 11 •> 0 'A N N Ci 7 O m 0 O W V ~ II O O H 2 K tV Q O d Q .0 C2 = = Cl V II N /i v v v j i 'I EXHIBIT A.4 I II a m m r O O O O P P N n O O M •O O r 11 m 11 aL 7 m r N M �' O O M M it yCy n C > L Nlet N Id N M M it E 11 E m O N r �} 11 WW 11 CE OC r r W 11 01 n L. 11 u Co IS m it m itCF r r ii m U OC 11 � II C N r 0X 0XX0X boll104OX X X a-C X O O XO XO O p O O O O OO O 11 O O X rrr X.O 11U11 ym7 C u > r O O O O Op O O O O O O O O O O r P n E u O O In IA IA O O O O r 11 m u � d � ' ' ' � � ii C u m n « p O: • 11 m p • .. .. .. .. .. .. n U N N M M I I x u _ n n Ln - - M .- a 1. p : o r. 11��ff IL P M1I1 P r N 11 O � .M? O h A m O O � M O r r 11 n x C r a M .O N N O a A N M UO • O ii 11 m m r b ^ N N i• — •O •O P II mWy U d r II p u 11 r r II � u ii m a N o a u+ .a. a v � ti u •_ n •� 1� �} M — M 1. a •o a In � .- .- � • o u t u •� � I� •O a O V O N Q A V v P V O r M 11 « h r a M •O — N N O a M N O N N A m r O 11 « u r tr N N !• N ^ r N 11 m 11 fA r N �t 11 79 u /A ii p r � II 'O u ii yC U I E la n • N CE > n « m 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 1- u 0 o w a u m w u 5 2 N c. 1L N m m r u Q n m > r u d fA 11 L m II L n d m n m ii r � ii m C ii m « I/1 M a O d Ipn. v O• v p, i O ii L N n' u m r P �' O d O Iran v A �. .t P .'t O r M II O w It L U r P M •O Z N N C7 Z GP M N C IR N A m • O it Q " IN r W N N '• ' v 11 m W U N 11 m 1wi n n O 0 til J 11 1 r II 11 W 1 d 0. O n O W U + «yy U « « N h r CC 0 C yOU1 C w Y m Z _2 2 W u O A O Ou uO mO u W UN uuZ Xya y6 mm z' C m .V.. O 8 L H O O X 11 r O m C m m Z W m m m Y GGG 00.. O fA O _ v1 N in J N U m • O « S 7 « W m d •• « d O m m m m 6 n t r W m Y N L K H « y pC u r N m « « > « m J J O m w u m r z c m •- •- W 'O n NC s m Q a s Nr. - L L u. m m m u « « O t W W c H O O 6 6 Q 11 r m 7 m m u u m O N K 7 Z W m C > 11 > r W 7 w m C 7 W 7 L y m oC x S Z r ri K' m W 6 — Z. ^ m 6 0 0 = W W ? NL W Z S Z W N M V n N r W W w EXHIBIT A.5 U II II •O m m hO10 0�01N O MINI COO O.O PIR O.O•t.O N•O -O M ..ppO Nd r a N^. i N co Il. 11 m m r In-PN , O MINIM, N.��-O NM hpppp'O hY spy.hh , .9 CO , .T 11 $ 5 m r .00�m r In IROMO Nlnvh� v.-•O mPln W MN , h h PP ' r0 P P CD it y > L M M�'^ d d N N N - O •S ^" N h P mm ' ^ M 11 M O 1 E m C7 r N M r « CE OL C 11 r � II IIr 1II1I Y > , 0 X0X.0X i0 X0"me Ox.14 OOXOXOX OXX XO X'XXXX 0XX XX 9 X?t '1 3,11 1 O O OO ^ M O O O O OO O O O OOOO O OC OOOOO O O OOOOOO O . 1n1 I U > O NtA0 OOO N OO N P 11 OO CD OO O N MN O O / n N M O ODN NM M N n .! ^OPM^ O ' 1- :i 11 I m , II t K ' II n u r it n u n acm r � u , I I II , r,to P , 0 MN.00 O-NM-t to r N0 Nh-N •t.t P hN ' hN r v U II m , IR-PN , O If1�OO�N O.t�QR1 O•t •O 00•t�iONhN r IR apc N•O , pp It '- ' 10 'm , In P O�9 O•t P•O N.h�hN �P.t �OInO , P 1-C7PP , d •OP , In In u It Y r . r . . . . • . • • . • , It X C ' MM.'^ r M In•t COM N �'•••_v M---M•t h.JN�- ' O 'oo. r IA •tM U m m r N M , M N N v O �N ' M MIA M N II It If n 1111 r X X XX.7t X X X XxXXX Xh -If U XxO � xx N APO1A m VI OXv IiI U 0 .}IAN O IO•OM0 N",O.t IA NO Ji U > IAP - 1h � O N IO - V , N .1 •O i 11 R U 11 It n n u 1 : u n •OP , O MN.O O-N .tOhNO N.h ANO.-•i V r .pPhN ' h^ , p. M ii U r N-PN , O N-00�NOIApp..(nyI•t0•t�•00.1 ON hN r IR 0t)O 9!Z? r df r O. U r .000 , to PO-.••O.S •ONh OhN -P.t -OInO r P hO PP r v P r IA11 M 11 II M M YI t N d'O IAN .� .R M "�M d h.t to O h.0 0119 A •S'NI Ct7 r h II If y ' M M - r p MN d O .O N , MIR U M U , r u , r to ✓ 000vl In oIn0000po000000000 000pppppp O A000 IA U C ; h•O P N ' •O O N N.O CO.O O`d IA 1�rI�p N M -O IIRR O O.O C0 , 0 �h O O ' � �A r Ifi ' M 1� U m NP MYI , .� P.O•U'O 0In PM 0190 CO M•1NIn 1�N•tM•t , O .1 00 r H 11 m , . . . , W h L N , hM ' 1N •t•f MOS ��•iN �N O NOIR r n MM CO� i II^ 00 d 0 d IN , 11�`M , O M r M N ' M ' M ' N 11 M M 11 O U J U w U > n n w n o If n n u Y u m Y r hA01�•O�t IR Mh.O COO�NM•tOhN ONN.-NOr't.} �P • d II ~ tl V O , PhIeIM , IoM VI POPM�}N••��'M M1�m•?NON MO r M •OhN.O r N My r N 11 O.O IA O.Oh O O M IA•O N' -S'14"P In M.l P In , O NPO'P 11 �U QIL-.O ' •C Oto^•wM ,,NM P•O�N N.p•f•O.O 1+I•O- . CO O_P1�O h MN •O 1� il. F If 0n O , ig11 M •- r MM M N^ f N 1►N ' OM M N M In A N r N ii CV U ^ . M M .u n O is 0 a u 1 0 n W U Y r 11 N z n C H II \ « C « m d 11 , ✓ n , m O n 1 m w « « a i 1 0€ > c c c E m v m ✓ ✓ m y u a m m c o 1-.11 Lm m o EY Y Hii i7 a CCrrmum 3«-W wC•-Cu I•L• mEc.l 6mL LUI YmN oeO ImE In, OC9 O wm ✓ a✓m r7dm « N a mm4 ma% aC\\•uto! a _ 0 1- 9 r64S C fd ad m a«O 14- ,YrU� nUnII OymmL .r'' 0WCS7C > Lm Dm « m « C m F N O'mm C_ LC•pCrn O O=a Ua- - Em 2 O M 05FeeCLCC7 m O CO to C _ O m O C••cis m0 oL « X on wO m EL f0 c «CUUUL DYO m-_'7 / W C.U m ol m Xz•C O m m m m m m 0 Ut uppCC www O«G6Q ><WC OOOO = Z•rZ U rW - mum « d O 1- 1 I EXHIBIT A.6 G. n n n M yy m . M . 0 0 0 0 . 0 . . N 11 > u oc n n . . . n u u n x x se x x x �[ x u O O O . O . . O n tl m w r_ 0 0 0 0 0 . 0 . o . a n u u° > o 0 0 0 0 0 o o u tl qr o u m . n n n u tl n tl ac u n tl n a N O . . *Qt 11 n C . N A . O . . 11 n .+ u n •ic e . .O . .- . . h n it u u n u N u � . . u N . '.O . r' N M . 1- U 11 1 O O N .O � , M N . •O IIn re w . . N P . cc Y1 m 1 ' n n . O O O O N Am z N n N n . . u N rc . tl O U m �+ .O NM A N u u0 . �t . Y1 M •O II N 'O P . 41 . N W 4 . N Ir n 11 II i i n u n � n z n W 11 . � n . So .. 2 u mw w y0 O . L W mit 03 J A ami O. m tmo H Gi 6 6 0 ca u p� w C O C W u m 1 W 2 C O 0 C 26 O u 2 G N O m - L1 n . W G m - 6 lam EXHIBIT A.7 11 dd . A I P r Q t INS A ' O I 91 IS d.7 W ' I d d r ^ i M r N r O•O ' ' N 11 11 > L r r N I N ' A r N P r O r M it 11 d O I r P x i N r N I N I M it hCA: r t N I I N N II I u r I i I . 1 11 K r I r r r I II to 1 11 I i • I I I 11 a MO Ld II' Or' .• I•LO •rr ON • rrr ON• .r1 f•� U 1Cu0O Uu ti 11 d ' r I r r i it 1t fY II N U O Zd n 11 I @m Pm let mIAP . P�PdA O •e•OM y1t•11M NA OPP ' ' A MCD • r I m II 11 d r Cr�p.N O h O N� Cpp N m m•C'm . M (�I A M Opt Q•0 0 I O I O U '^ I A P O N to O J' O N A r tff P • O 0 0•IA O In P N P Yf Iff M r •} ' N O d II x C pp�QNC�N M•ON . 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