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HomeMy WebLinkAbout11/04/1997, 3 - STATE AND FEDERAL TRANSIT GRANTS FOR 1997-98 PUBLIC HEARING ON FEDERAL PROGRAM OF PROJECTS FOR 1997-98 council j acEnaa RCPORt bm CITY OF SAN LUIS OBISPO FROM: Michael D.McCluskey,Public Works Direct Prepared by: David Elliott,Administrative Analyst' \ SUBJECT: State and Federal Transit Grants for 1v997-98 Public Hearing on Federal Program of Projects for 1997-98 CAO RECOMMENDATIONS 1) By resolution, approve the 1997-98 Annual Claim for Local Transportation Funds in the amount of$863,509 2) By resolution, authorize the Public Works Director to apply for a grant from the Federal Transit Administration in the amount of$1,068,900 3) By motion,reinstate a$40,000 capital project to purchase a new radio system for SLO Transit 4) By motion, approve a$50,000 capital project for ongoing capital bus maintenance 5) By motion,approve amendments which will bring the 1997-98 budget into conformance with anticipated revenues and expenses DISCUSSION Background SLO Transit receives nearly all of its annual revenue from four sources: 1) State Transportation Development Act(TDA)grants 2) Federal Transit Administration(FTA)grants 3) Contributions from Cal Poly 4) Cash and pass fare revenue Each year the City must submit a claim for TDA grants and an application for FTA grants. Also, because the amounts available sometimes differ from the amounts budgeted,appropriations must be adjusted. TDA Claim The Transportation Development Act of 1972 annually apportions state sales tax revenue to local agencies for their approved transportation programs and projects. This apportionment is made through two local funds,the Local Transportation Fund(LTF)and the State Transit Assistance Fund(STAF), which are administered in this county by the San Luis Obispo Council of Governments(SLOCOG). City policy (page B-11 of the 1997-99 Financial Plan)restricts use of all TDA revenue to alternative transportation, such as transit,bike, and pedestrian programs and projects. TDA stipulates that at least two percent of the LTF apportionment(after deducting initial contributions for regional agencies)be used for bicycle and pedestrian projects. The TDA apportionment available to the City in 1997-98 amounts to$863,509 from the LTF, and the City's 1997-98 annual claim requests allocation for the purposes shown on the next page. Council Agenda Report- State and Federal Transit Grants for 1997-98 Page 2 City Share of Regional Transit Cost $286,521 (1) Bicycle and Pedestrian Education 17,270 Bicycle and Pedestrian Planning 21,717 (2) Local Share of SLO Transit Operations in 1997-98 500,401 Local Share of Passenger Van 4,000 Local Share of Service Truck 4,000 Local Share of Radio System 8,000 Local Share of Capital Cost of Contracting 10,000 Transit Share of Access Road Security Gate 10,000 Transit Share of Financial Mgmt. Information System 1,600 Total TDA Allocations $863,509 (1) This amount does not come to the City but goes directly to Regional Transit (2) This amount is one half the total compensation for the transportation technician,who works half- time in the transportation planning and engineering program. The STAF apportionment for 1997-98 amounts to $59,851,but TDA regulations prohibit the City from claiming this money in 1997-98 because SLO Transit's operating cost per hour for 1996-97 increased more than the Consumer Price Index. SLOCOG will reserve this money for allocation in 1998-99,when the City should be eligible to claim it. Capitalizing a portion of bus maintenance costs,as explained later.in this report, should reduce operating cost per hour enough to ensure eligibility for STAF revenue. Ineligibility to receive this apportionment results in having to use more of the 1997-98 FTA apportionment for operations than was originally planned. But when this STAF revenue is later claimed in 1998-99,it will allow a corresponding reduction in the amount of the FTA apportionment needed for operations in that year. FTA Grant Application After the 1990 census,the City was classified as an urbanized area and became eligible to receive FTA formula grants for operating and capital assistance. To apply for these grants,the Council must annually 1)hold a public hearing on the proposed "program of projects" which.will use federal transit assistance and 2) adopt a resolution authorizing the Public Works Director to file a grant application and execute the grant agreement. The grant agreement requires annual certifications of compliance with regulations regarding civil rights,procurement procedures,and substance abuse. Authorizing the Public Works Director to apply for the grant and execute the agreement is the procedure recommended by state and federal officials who administer these grants. The FTA grant application for 1997-98 will request$1,068,900 for the following purposes: FTA Share of SLO Transit Operations in 1997-98 $364,900 FTA Share of Multi-Modal Transportation Terminal 600,000 FTA Share of Passenger Van 16,000 FTA Share of Service Truck 16,000 FTA Share of Radio System 32,000 FTA Share of Capital Cost of Contracting 402000 Total FTA Allocations $1,068,900 ,�z Council Agenda Report-State and Federal Transit Grants for 1996-97 Page 3 The last four projects listed on the previous page all have corresponding local shares covered by TDA allocations. The financing ratio for these projects is 80 percent FTA and 20 percent TDA. The federal legislation authorizing FTA grants each year is typically enacted well after the start of the City's fiscal year. (The federal fiscal year starts on October 1.) Nonetheless, it has been extraordinarily late this year. At the time this agenda report was written, an interim transportation bill had passed from Congress to the President for his signature,and most observers expected the President to sign it. This legislation contained two provisions important to SLO Transit: 1)maintenance of apportionments at previous levels 2)abolishment of restrictions on how much of the apportionments can be used for operations. The recently adopted Short Range Transit Plan anticipated these provisions and stated they would have to be included in order for SLO Transit to continue operations in 1997-98 at existing service levels. The second provision allows SLO Transit to use up to 100 percent of the annual FTA apportionment for operations,if necessary. Despite the advantages of this flexibility,the City should continue to reserve part of each annual apportionment for needed capital improvements, such as bus replacements and bus stop improvements. (The estimated FTA apportionments available are$533,000 from previous years and$545,000 from 1997-98. $364,900 will be used for operations, and the rest will be used or reserved for capital improvements.) Radio System Project Public Works is requesting reinstatement of this $40,000 CIP project, which the Council originally approved in the 1996-97 Mid-Year Budget Review. The original appropriation was made to the operating budget rather than the CIP budget, so the appropriation lapsed on June 30, 1997. The current transit operations contract requires the City to furnish a radio base station, 15 two- way radios for the buses, and three portable radios. This contract provision was included so the contractor could avoid expensive startup costs. The radio purchase was postponed for the following three reasons: 1) It made more sense to use FTA grants rather than TDA grants,because there was more FTA capital money available. 2) The purchase had to await approval of the next FTA grant cycle. 3) The operations contractor had a radio system in place which could continue to be used for a short time until replacement. Capital Proiect for Ongoing Bus Maintenance Public Works is also requesting anew$50,000 CIP project for ongoing capital bus maintenance. The purpose of this project is to shift a portion of the operations contract payment from operating cost to capital outlay. This is simply an accounting procedure;the payment to the operations contractor will not change. Starting in 1997-98, FTA allows a calculated portion of contract bus service cost to be considered capital maintenance. The rationale is that when an operations contractor replaces a large bus component, like a compressor or a transmission,the cost should be capitalized because 3-3 Council Agenda Report-State and Federal Transit Grants for 1996-97 Page 4 such a replacement extends the bus's service life. The practical benefit is that calculated operating cost is reduced, and certain required performance measures (like the fare revenue to operating cost ratio and the operating cost per hour)are easier to attain. By using this opportunity,the City should be able to reduce operating cost enough to reestablish eligibility to receive STAF allocations in 1998-99. Consultation with the operations contractor led to calculation of a$50,000 annual cost(including parts and fully loaded labor)for replacing major bus components. FISCAL IlVIPACT As mentioned,there will apparently be enough money available to operate SLO Transit at current service levels during 1997-98. Because the.amounts for both TDA and FTA grants differ from the amounts in the 1997-98 budget, the amendments shown on the next page are needed to bring the budget into conformance with the TDA claim and the FTA grant application. Current Amended Budget Budget Reason for Change Adiustments for Capital Outlays: Multi-Modal Terminal $2,676,473 $2,725,000 more money available Highway 101 Landscape (9089) 12400 0 project completed Bus Replacement(9090) 64,268 0 project completed Maintenance Bldg.Expansion(9601) 355,235 210,700 less money available Montalban Street Bridge(9616) 20,000 0 federal grants available Bus Replacement(9742) 775,000 755,900 actual cost lower Passenger Van(9743) 28,000 20,000 estimated cost lower Service Truck(9744) 33,000 20,000 estimated cost lower Radio Equipment 0 40,000 new project Capital Bus Maintenance 0 50,000 new project Total for Capital Outlays $3,953,376 $3,821,600 Adiustments for Operating Expenses: Purchased Transportation $1,018,000 $968,000 part capitalized Total for Operating Expenses $1,018,000 $968,000 Adiustments for Fund 230 Revenues: TDA for Bicycle/Pedestrian $382200 $39,000 different amount required Total for Fund 230 Revenues $38,200 $39,000 3-� Council Agenda Report-State and Federal Transit Grants for 1996-97 Page 5 Adiustments for Fund 530 Revenues: TDA for Transit Operations $553,200 $587,400 more money available TDA for New Transit Capital 46,000 37,600 local match lower TDA for F.rich_ng Transit Capital 0 229,000 not rebudgeted for 97-98 FTA for Transit Operations 180,000 364,900 more needed FTA for New Transit Capital 680,000 704,000 federal portion higher FTA for Existing Transit Capital 30,000 782,400 not rebudgeted for 97-98 Total for Fund 530 Revenues $1,489,200 $2,705,300 FTA may actually approve less than$364,900 for operations. If so,Public Works will prepare a request to further reduce the revenue budgeted for operations. Recap-Uses of State and Federal Grants for Transit in 1997-98 Budgeted Budgeted Reserved Total for for for Future Available Operations Capital Capital TDA-LTF(from prior years) $316,000 $87,000 $229,000 $0 TDA-LTF(for 1997-98) 538,000 500,400 37,600 0 TDA-STAF (for 1997-98) 59,000 0 0 59,900 FTA(from prior years) 533,000 0 533,000 0 FTA(for 1997-98) 545,000 364,900 171,000 9,100 $1,991,000 $952,300 $970,600 $69,000 Attachments: Resolutions for TDA Claim and for FTA Grant Application FTA Program of Projects Note: The TDA Claim documents are available for review in the City Clerk's office state and Federal Transit cru 1997-98 3S RESOLUTION NO. (1997) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE 1997-98 ANNUAL CLAIM FOR LOCAL TRANSPORTATION FUNDS TOTALING $863,509 WHEREAS,the San Luis Obispo Council of Governments("SLOCOG")has apportioned$863,509 of Transportation Development Act subventions from the Local Transportation Fund to the City of San Luis Obispo for approved transportation programs and projects; and WHEREAS,to receive this money the City of San Luis Obispo must file a claim with SLOCOG; NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: 1. to approve the 1997-98 Annual Claim for Local Transportation Funds in the amount of $863,509 for the purposes of transit operations, transit capital improvement, bicycle and pedestrian education, and bicycle and pedestrian planning; 2. to authorize the Public Works Director to execute the claim documents; 3. to declare that reasonable efforts have been made to implement transit productivity improvements recommended in performance audits; and 4. to direct the City Clerk to forward the annual claim plus one certified copy of this resolution to: San Luis Obispo Council of Governments 1150 Osos Street, Suite 202 San Luis Obispo, CA 93401 Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1997. Mayor ATTESTED: APPROVED: City Clerice"-IA,4-ZA L'(A'4-4-C4� Cr-MeV 36 RESOLUTION NO. (1997) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE FILING OF APPLICATIONS WITH THE FEDERAL TRANSIT ADNIINISTRATION FOR FEDERAL TRANSPORTATION ASSISTANCE WHEREAS,the Federal Transit Administration has been delegated authority to award Federal financial assistance for a transportation project; and WHEREAS, a grant of Federal assistance will impose certain obligations upon the City San Luis Obispo and may require the City of San Luis Obispo to provide the local share of project costs; and WHEREAS, the City of San Luis Obispo has or will provide all annual certifications and assurances to the Federal Transit Administration required for the project; NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: 1. that the City of San Luis Obispo is the designated recipient as defined by 49 U.S.C. 5307 (a)(2), 2. that the Public Works Director is authorized to execute and file an application for Federal assistance on behalf of the City of San Luis Obispo with the Federal Transit Administration for Federal assistance authorized by 49 U.S.C. Chapter 53, Title 23, United States Code and other Federal statutes authorizing a project administered by the Federal Transit Administration, 3. that the Public Works Director is authorized to execute and file with the application the annual certifications, assurances,and other documents the Federal Transit Administration requires before awarding a Federal assistance grant, and 4. that the Public Works Director is authorized to execute grant agreements with the Federal Transit Administration on behalf of the City of San Luis Obispo. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1997. ayor ATTESTED: APPROVED: City er e FEDERAL TRANSIT ADMINISTRATION GRANT APPLICATION for SLO TRANSIT PROGRAM OF PROJECTS FOR FISCAL YEAR 1997-98 Federal Apportionments: For 1997-98 $545,000 From Previous Years $533,000 Federal Total Prosect Amount Amount Intermodal Terminal $600,000 $2,725,000 Support Vehicles 32,000 40,000 Radios 32,000 40,000 Capital Cost of Contracting 40,000 50,000 Operating Assistance 7/1/97 to 6/30/98 364,900 1,283,700 Net Project Cost $4,138,700 Federal Share $1,068,900 Local Share $3,069,800 3-� Transportation Development Claim for Funds FY 1997/98 All the items marked with an X are included with this claim ITEM # DESCRIPTION X 1. Signed and completed claimant information, form. X 2. Signed and completed certifications form. X 3. A completed Annual Project and Financial Plan. X 4. Resolution authorizing the claim for funds including the amounts of LTF and STA funds being requested, the proposed uses of those funds, and a finding that reasonable efforts have been made to implement transit productivity improvements recommended in performance audits (transit claimants). X 5. A proposed budget for the fiscal year of the claim pertaining to transit or subsidized taxi. X 6. A statement identifying actions to comply with prior year's fiscal audit recommendations (if applicable). X 7. A statement identifying and substantiating the reason or need for any increase in the transit operating budget in excess of 15% above the preceding year, and substantial increases or decreases in the scope of operations or capital provisions for major new facilities (if applicable). X 8. A certificate from the CHP verifying that the operator is in compliance with Section 1808.1 of the vehicle code as required in PUC 99251. 3-9 Item 1 Claimant Information CLAIM# SLO-978-1 FISCAL YEAR 1997-98 TO: San Luis Obispo Council of Governments 1150 Osos Street, Suite 202 San Luis Obispo, CA 93401 FROM: City of San Luis Obispo 955 Morro Street San Luis Obispo, CA 93401 CONTACT: Harry Watson, 781-7209 This claimant, qualified pursuant to Section 99203 of the Public Utilities Code,hereby requests, in accordance with Chapter 1400, Statutes of 1971, as amended an applicable rules and regulations,that an allocations be made for the purposes and in the amounts described in the attached Project and Financial Plan. Annual LTF Apportionment $863,509 Annual STAF Apportionment $59,851 by Revenue $10,085 by Population $49,766 Total Amount Claimed $8639509 Claimant Signature: `% u c or cs irector Date: �o z ;P/V This claim was conditionally approved by the San Luis Obispo Council of Governments at a meeting on June 4, 1997 by Resolution No. 97-06. �-l0 Item 2 Certifications 1. Proposed expenditures conform to the Regional Transportation Plan as required by CCR 6651. 2. The City of San Luis Obispo has established a separate account for bicycle and pedestrian allocations pursuant to PUC 99233.3. 3. SLO Transit is not budgeted to receive TDA allocations for operating costs that exceed budgeted operating costs minus the sum of budgeted fare revenues and budgeted federal operating assistance. The ratio of fare revenue to operating cost for SLO Transit was at least 20 percent in 1996-97 and will be at least 20 percent in 1997-98. 1996-97 1997-98 Operating Cost $1,310,670 $1,283,700 Fare Revenue $308,757 $328,800 Federal Operating Assistance $455,000 $364,900 Fare Revenue/Operating Cost .24 .26 Operating Cost-Fare Revenue- Federal Operating Assistance $546,913 $590,000 4. The City of San Luis Obispo is making full use of federal grants available through the Urban Mass Transportation Act of 1964 and the Intermodal Surface Transportation Efficiency Act as required by CCR 6754(3). 5. SLO Transit will comply with SLOCOG's adopted bus transfer pass policy. 6. SLO Transit makes available reduced transit fares for senior citizens and disabled people as required by PUC 99155. 7. As required by PUC 99264 SLO Transit does not routinely staff transit vehicles designed to be operated by one person with two or more persons. As required by CCR 6754(2) SLO Transit is not precluded by contract from employing part-time drivers or from contracting with common carriers of persons operating under a franchise or license 8. SLO Transit complies with inspection and driver certification requirements of CVC 12804.6. 9. SLO Transit will program or implement services to meet all unmet transit needs per the adopted 1996 SLOCOG resolution, if applicable. 10. SLO Transit is not eligible to receive its STAF allocation for 1997-98. 11. SLO Transit has an adopted short range transit plan. 12. SLO Transit recorded the following operating data for 1996-97: Vehicle Service Hours: 28,951 Vehicle Service Miles: 318,967 Passengers: 999,861 Employee Hours: 47,780 13. Before disbursement of TDA allocations, the City of San Luis Obispo will: a. submit a claim to SLOCOG b. submit a state controller's report of financial transactions to the State Controller's Office and to SLOCOG C. submit to SLOCOG by December 31, 1997 three copies of a certified fiscal audit of all TDA funds received in 1996-97 Claimant Signature: Public Works Director Date: �2 ITEM 3 Annual Project and Financial Plan City of San Luis Obispo Proposed Use: Authority: Amount: City Share of Regional Transit Cost Article 4, Section 99260 286,521 Subtotal to be Paid Directly to SLORTA 286,521 Bicycle and Pedestrian Education Article 3, Section 99233.3 17,270 Bicycle and Pedestrian Planning Article 8, Section 99400(a) 21,717 Local Share of SLO Transit in 1997-98 Article 4, Section 99260 536,751 TDA Audit Cost Article 3, Section 99245 1,250 Subtotal to Be Paid Directly to the City 576,988 Total LTF Allocation 863,509 Total STAF Allocation 0 Total TDA Allocation 863,509 ,3/3 0 y a 0 0 0 � - o 0 u m e m _ y cn ? q L y m Y e o e E L o o U L_ m O O C � N N y J C Y — � O O O O O O p m � O Y O L.. m C � Y m N c O V m V O G S. O v C c m V a o a in i W E fA E. tz = Li o y y0 O` m C m O O 6 C (7 a O O y 7 C Li v O O `u 9 h ^ w a c c o m o 0 Y Y m o c - n m H c c IV) u u m a u c c y Ev o o r o n vei o o Li ir0. r T r n N - N' � D L ' m Z F F fi, Y Y Y 0 0 0 0 0 0 0 0 0 0 00 ^ a N o 0 n o r o. rf of 0 0 0 0 c 0 0 - A T O 'Cl F U N n N n N N ? h r y c s u of O C C Y O O O\ O N ?) Y O O Ym9 LA oar � N CC C Liz H v � C � Y G •C C u c G m v € _ v � m a a 0 0 m a m E 'H C6 .Cm u c E U u m m m o Y = G m O f' 2 0 � m � O• a mY F >. U y �' F v m a s C M H t GEA IZ Q ITEM 6 Actions to Comply with 1995-96 Fiscal Audit Recommendations The fiscal audit for 1995-96 noted that SLO Transit had received$436,000 more than it was eligible to receive from the Local Transportation Fund. This ineligible portion was classified as deferred revenue. The audit recommended 1)that the City identify specific capital project appropriations which would be spent in the following fiscal year and would in effect reduce the deferred revenue and 2)that"the City closely monitor the funding requested in future years and its eligibility for TDA funds based on the guidance contained in the TDA statutes". At June 30, 1997 there was $316,000 of deferred LTF revenue. Nearly all of this deferred revenue was appropriated as the local share of the following capital projects, which were not completed during 1996-97: Local Share Multi-Modal Transportation Terminal $ 27,100 Bus Maintenance Building Expansion 71,000 Bus Acquisition(Three Buses) 151,000 Bus Stop Improvements 2,300 Passenger Van Acquisition 28,000 Service Truck Acquisition 33,000 $312,400 If these projects had been completed in 1996-97, there would have been only$3,600 of deferred revenue at June 30, 1997. ITEM 7 Substantiation for Any Increase in the Transit Operating Budget in Excess of 15 Percent Above the Preceding Year Transit Operating Budget for 1996-97 $1,300,800 Transit Operating Budget for 1997-98 $1,283,700 Amount Decrease -$17,100 Percentage Decrease -1.3 % No substantiation required CARRIER(NAMEOR TERMWAL FLE CONTROY. U. 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