HomeMy WebLinkAbout04/22/1986 Business Meeting 294
APRIL 22, 1986
BUSINESS MEETING
1. ROLL CALL
The City Council met in session on this date at 2:00 P.M. in the
Council Chambers of City Hall, Yakima, Washington. Mayor Henry
Beauchamp, presiding, Council members Clarence Barnett, Pat Berndt,
Lynn Buchanan, Lynn Carmichael, Jerry Foy and Jack Sparling present
on roll call. City Manager Zais, City Attorney Andrews, and Deputy
City Clerk Toney also present.
2. INVOCATION
The Invocation was given by Mayor Henry Beauchamp.
3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER
Mayor Beauchamp read a proclamation declaring April 26, 1986
Special Olympics Day in Yakima. The proclamation was presented to
a member of the Special Olympics Team.
A second proclamation was read declaring the week of April 20 -26,
1986 as National Credit Week:
4. CONSENT AGENDA
Mayor Beauchamp referred to the items placed on the Consent Agenda,
questioning whether there were any additions or deletions from
either Council members or citizens present. There being no
changes in the Consent Agenda, the Deputy City Clerk then read the
Consent Agenda items, including resolutions and ordinances by
title. It was MOVED by Carmichael, seconded by Berndt, that the
Consent Agenda, as read, be passed. Unanimously carried by roll
call vote. (Subsequent paragraphs preceded by an asterisk ( *)
indicate items on the Consent Agenda handled under one motion
without further discussion.)
*5. APPROVAL OF MINUTES OF THE COUNCIL MEETING OF APRIL 15, 1986
The minutes of April 15, 1986 were approved, having been duly
certified accurate by two Council members and no one present
wishing to have said minutes read publicly.
6. AUDIENCE PARTICIPATION
A. REQUEST FOR SPECIAL APPEARANCE FROM RICK LINNEWEH,
ADMINISTRATOR OF MEMORIAL HOSPITAL
Rick Linneweh, Administrator of Memorial Hospital, appeared before
Council regarding emergency medicine and pre - hospital care. Mr.
1 Linneweh stated the issue is whether there should be a single
provider of such care in Yakima, or whether there should be
multiple providers. He indicated the quality of service is
deteriorating and the issue needs to be addressed. Mr. Linneweh
stated Memorial Hospital and St. Elizabeth Medical Center are
undertaking the responsibility of sponsoring a study group to deal
with this issue and extended an invitation to the Council members
to participate in this study. Mr. Linneweh stated he anticipates
/ the study will be completed within 90 days. Council did not commit
themselves to participate in the study at this time.
7. REPORT FROM STAFF AND FRED S. JAMES REGARDING CITY INSURANCE
COVERAGES FOR 1986
City Manager Zais made a few brief comments stating the reports
from the broker and the memorandum from City staff are self
APRIL 22, 1986 29-
explanatory, however, Debbie Krautwurm of Fred S. James has some
additional information with regard to possibilities for future
umbrella coverage she would like to share with Council.
Prior to Ms. Krautwurm addressing Council, Mayor Beauchamp read a
proclamation declaring the month of May as Bicycle Safety Month in
the community of Yakima, and declared Saturday, May 3rd as Bicycle
Safety Day. Jerry Henderson, Chairman of the 1986 Bicycle Rodeo,
expressed concern that the City of Yakima currently does not have a
good safety program for young bicyclists. He stated Operation On
Guard has developed the. Bicycle Rodeo to teach the basics of proper
bike riding on City streets. He added the 6th Annual Bike Rodeo
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will be held May 3rd, 1986 and thanked Mayor Beauchamp for the
proclamation.
Returning to discussion of the City's insurance coverage for 1986,
Deb Krautwurm stated a couple of areas have opened up since their
report was submitted to City management. She indicated coverage is
still being sought for the excess transit liability insurance and
the umbrella liability coverage. Deb then reviewed the City's
basic liability program coverage reminding the City Council the
first million dollars of liability insurance has been placed in
force with the exception of the Transit insurance. Transit
coverage is provided for only the first $150,000 in excess of the
self- insured retention of $100,000.' This provides the City
$250,000 of total Transit liability insurance. Ms. Krautwurm
stated for additional transit coverage they now have one insurance
company indicating they will be able to provide $4,500,000 dollars
of protection in excess of $500,000. Further, the first $500,000
can be either insured or self- insured as the City chooses. The
initial premium indication is $70,000 per year. She stated no
indication of premium has been received for the general liability
umbrella insurance. She informed Council there are two
possibilities left for the umbrella liability insurance. She
indicated.by the end of the week she will know whether Penco, the
company currently providing the City's underlying limits, can
provide umbrella coverage for the City of Yakima. By May 1st she
will know if. Penco will quote, and May 15th is the earliest the
premiums would be available. A second company has indicated a
willingness to quote coverage if Penco would adjust or extend our
primary coverage to the effective date of an umbrella. Penco, our
primary carrier, had indicated we can extend primary coverage.
This would allow the City to make the primary coverage effective
the same date as the umbrella coverage .and potentially open the
• umbrella market described previously. Unfortunately, the premium
costs will be unavailable until near the end of May or first of
June. City Management is requesting a decision be made and
finalized 6n the insurance coverage by 1st, however, with these
new events, she asked Council to reconsider and extend the decision
to June 1st.
On another topic, Ms. Krautwurm indicated she wanted to take this
opportunity to brief the City Council on recent action by the State
Legislature on Tort Reform. The State of Washington has taken some
tremendous steps forward on Tort Reform. This new law will be
effective in August. It will have a dramatic affect on the
possibilities of purchasing additional umbrella coverage. One area
for concern, however, is if the City should have a liability action
which gets into the federal courts,. the new state law will not
• apply.
Regarding other non - economic concerns, Ms. Krautwurm informed the
Council if the City should decide to cancel select areas of
coverage, including the general liability, police and the public
officials, Penco has indicated they will not be willing to
reinstate primary insurance coverage should an umbrella become
available later.. The City would be back at square one and would
have to provide the first layer of coverage again before umbrella
protection could be purchased. The primary layer area is ,still
very volatile and there aren't a lot of companies interested in
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26 ' APRIL 22, 1986
providing municipal coverage. The possibility of finding another
insurance company to step into that first primary layer of coverage
would be very difficult. That is something another aspect which
needs to be taken into consideration before the final decision is
made.
Following further review of the report from Fred S. James and
City staff report, Ms. Krautwurm responded to questions from
various Council members regarding this matter. Council member Foy
expressed concern with the amount of money the City is expending
for insurance coverage, yet pays the claims brought against it.
He also expressed concern regarding the fact that it is taking so
long to obtain insurance coverage. He indicated he does not feel
the Tort Reform is going to be the solution to the problem. Council
member Barnett stated he does not like the price of the insurance
either, however, is concerned with cancellation of the errors and
omissions for public officials and police. He stated staff
previously insisted this type of insurance is essential and does
not understand why staff is now recommending cancellation. Council
member Barnett commented he feels Council is placing themselves in
a rather precarious position by deleting general liability, public
officials and errors and omissions. In view of the.new information
provided he indicated he is inclined to defer judgement until June
1st. Council member Foy reminded Council of the resolution passed
to provide the first $10,000 retention for the airport, providing
the airport could obtain coverage of $1,000,000. Mr`. Foy stated
the Hearing Examiner is also provided liability insurance by the
City and County. Ms. Krautwurm stated the airport is required to
carry airport liability insurance, and the City of Yakima must
continue to provide public official liability coverage through the
same company the airport board is insured with, that company being
Fred S. James. Following further discussion, it was MOVED by Foy,
seconded by Carmichael, to defer the report until June 1st. City
Manager Zais pointed out that the return premium is not as great,
and there will have to be some continued proration of expenses
involved in this (approximately $20,000.) Secondly, Mr. Zais
commented on staff's earlier view of liability, risks and costs,
stating this has not changed, however, given historical trends, it
does not seem cost effective to pay exceptionally high premiums and
raise retention levels to maintain our underlying basic coverage
for existing polices. He indicated the City is actually placed in
the position of paying the claims twice, both in the deductible and
in the premium. Mr. Zais added stated the indemnification
resolution was written to protect Council both in the,event of the
insurance continuing at the $10,000 deductible level, as well as in
the event the insurance is cancelled or not available. Council
member Foy questioned how legally binding is a resolution. City
Attorney Andrews stated it is binding in the sense it can be
changed or repealed at the discretion of the Council. Council
member Barnett requested a statement of impact on the airport
should Council decide to cancel the insurance coverage. John
Hanson, Director of Finance & Budget, asked for clarification on
the intent of the motion. He indicated the packet also contains
information on the Association of Washington Cities (AWC)
insurance pooling project and requires a deadline date of May 9th
f I if the City intends to- :participate. He requested Council act on
this part of the recommendation also. Mayor Beauchamp stated "June
1st we either fish or cut bait with this whole issue." He
indicated he is in favor of the self- insurance concept if the City
is unable to obtain satisfactory proposals from Fred S. James by
June 1st. Council member Sparling asked if Fred S. James is the
broker of record. Mr. Zais stated at this time they are the broker
of record for the City through contract. Council member Sparling
stated he feels the time to "fish or cut bait" is now, as he does
not feel the situation is going to change within the next 30 days.
He stated if the market improves, the insurance brokers will
resubmit proposals. He added he would vote against the motion.
The question was called for a vote on the motion. Motion carried
by 4 -3 voice vote. Buchanan, Foy and Sparling voting nay. It was
MOVED by Berndt, seconded by Carmichael, that the City participate
APRIL 22, 1986 297
in the Association of Washington Cities insurance pool study.
Council member Barnett asked for clarification on the intent of the
study. John Hanson, Director of Finance & Budget, stated the study
is to explore opportunities available to Washington cities for
insurance coverage. He stated a scope of the project was included
in the Council packet along with other materials presented today.
Council member Barnett stated based on comments made by State
Insurance Commissioner Marquardt regarding this issue, he is
hesitant to vote for this concept. Mr. Hanson reiterated this is
only a feasibility study at this point. Following further
discussion the question was called for a vote on the motion.
Unanimously carried by voice vote.
8. REPORT FROM CITY MANAGER REGARDING PROPOSED NOB HILL STREET
IMPROVEMENT BOND SALE PLAN AND RESOLUTION ENGAGING UNDERWRITING
SERVICES
City Manager Zais stated this is a report prepared by staff
outlining the plan for sale of the Nob Hill street improvement
bonds and other related street projects for the $5,000,000 bond
issue recently passed. He spoke briefly about the information
contained in the report to Council and asked John Rose, Seattle
Northwest Securities, to address Council on the matter. Mr. Rose
indicated interest rates for bonds are currently lower than they
have been in the past' -six years and have undergone a tremendous
drop in the last few months. He stated on that basis he predicts
an interest rate on the bonds of 7 & 3/4 %, however, the City is
looking at a very crowded bond market over the next several weeks
and reviewed the reasons for this. Council member Foy stated he is
supportive of staff's recommendation, therefore, it was MOVED by
Foy, seconded by Sparling, that Council follow the recommendation
in the report, and authorize the out -of -state travel for a
committee composed of John Hanson, Dick Zais, bond counsel, the
Mayor, and /or Assistant Mayor, and also authorize Seattle Northwest
Securities as the City's bond counsel. Council member Buchanan
suggested Council member Carmichael be included in the committee as
she has followed the bond issue closely and has met with
representatives from Moody Investors on another bond issue in the
past. Council member Carmichael stated she was in favor of two
Council members making the trip and suggested an amendment be
made to the motion authorizing two Council members to travel to New
York and meet with the Moody Investors. Discussion followed
regarding the composition of the group that went on the last trip.
City Manager Zais stated Pacific Power & Light District Manager Bob
Peterson accanpanied Council members previously, however, he
traveled at his own expense. Mr. Peterson was also President of
the Chamber of Commerce at that time. Council member Foy suggested
two representatives from the private sector, possibly PP &L and a
member of the economic development community, accanpany the Council
representatives and the representative from the bond counsel. It
was MOVED by Buchanan, seconded by Carmichael, the motion be
amended so that representation not be limited to the Mayor and /or
Assistant Mayor, but have two Council members make the trip.
Carried unanimously by voice vote. The question was called for a
vote on the motion, as amended. Unanimously carried by voice vote.
Resolution No. D -5244 having been read by title, it was MOVED by
Buchanan, seconded by Carmichael, the resolution be adopted.
Council member Sparling asked Mr. Rose how the City could improve
the presentation for increasing the rating of City. Mr. Rose
stated the Moody Investors are going to want to know (a) what are
the reasons to think the economy is going to grow and continue to
be stable and diverse, and, (b) granted the City has made
substantial improvements in it's financial condition'in recent
years, but what reason is there to think this will 'continue. He
indicated it is very difficult to obtain an upgrade, however, feels
- the City has an outstanding case to present. City Manager Zais
stated he would like Council members to consider the dates of May
15 -16, and May 22 -23 for the trip to New York and advise him if
they would be able to travel on either of those dates. It was the
consensus of the Council to complete the items on the agenda and
APRIL 22, 1986
continue discussion of travel at the end of the meeting. The
question was called for a vote on the motion. Unanimously carried
by voice vote.
RESOLUTION NO. D -5244, A RESOLUTION concluding the letter of
agreement between the City of Yakima and Seattle - Northwest
Securities Corporation for financial services and authorizing and
difecting the City Manager and City Clerk of the City of Yakima to
execute an agreement with Seattle- Northwest Securities Corporation
for underwriting services.
9. REPORT FROM DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
REGARDING PROPOSED INCREASE IN FIREWORKS STAND PERMIT FEES
Bob Shampine, Code Manager, stated in 1982 RCW 70.77.55 allowed
cities and local jurisdictions to charge a maximum permit fee of
$100 per fireworks stand to cover the cost of administering the
permits, etc. In 1983 the Code Manager proposed a fee increase
fran $17.50 to $100, however, this was not approved by Council.
Staff was instructed to bring the issue back after further study.
Staff returned with a proposed $50 increase which was approved by
Council. At that time Council directed staff review the issue in
two years and consider raising the fees to $100. Today's
presentation is a result of that request. Mr. Shampine directed
Council's attention to the information in their packets relating to
costs associated with 1985 fireworks, stating the reason for the
fee increase is to help cover the costs associated with the sale of
the fireworks. Discussion ensued regarding the increase in the
cost of firefighting and relaxation of regulations governing the
sale of fireworks. Council member Barnett commented there would be
fireworks in Yakima even if the sale of fireworks was banned. He
indicated the real issue should be whether or not the fees cover
the costsfor inspections by the Code Administration Department
rather than expenses incurred by the Police and Fire Department in
fireworks related incidents, complaints to the Police Department,
firefighting expenses, etc. It was MOVED by Foy, seconded by
Sparling, to direct staff to respond with necessary legislation to
increase fireworks stand permit fees to $60 in 1986, $75 in 1987
and $100 in 1988. Council member Buchanan stated he does not feel
$100 is excessive, therefore, it was MOVED by Buchanan, seconded by
Carmichael, to amend the motion to $75 for the first year and $100
for the second year. Council member Barnett commented he feels
this issue should have been addressed at budget review rather than
a few weeks before the 4th of July. Council member Carmichael
agreed with Council member Barnett, however, she added there is no
way the permit fee will ever off -set the cost involved with this
particular issue. Council member Sparling stated he feels the fee
should not be increased at all, adding the only thing it will
accomplish is to drive the fireworks stands outside the city
limits. He stated he would be voting against the fee increase.
Randy Brown, 303 North 61st Avenue, stated in 1985 his insurance
rate was $50,000 for $1,000,000 worth of insurance and $10.5
million dollar backup. As of 1986 there are only three companies
in this country willing to provide insurance coverage. He informed
Council his insurance rate is now $350,000 for $1,000,000 worth of
insurance with a $2,000,000 backup. Mr. Brown stated it would be
helpful to have this type of fee increase established by September
each year, thus eliminating problems with renegotiation of
contracts. Mr. Brown stated he is supportive of a reasonable
increase in permit fees and added he would like to work closely
with the Inspection Department on the inspections. The question
was called for a vote on the amendment. Failed by 5 -2 voice vote.
Barnett, Beauchamp, Berndt, Foy and Sparling voting nay. Mayor
Beauchamp restated the motion and called for the vote. Motion
carried by 4 -3 voice vote. Barnett, Beauchamp, and Sparling voting
nay. City Manager Zais stated legislation would be prepared and
brought back for Council action at a future meeting.
APRIL 22, 1986 299
10. REPORT FROM DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT THREE -FIVE YEAR
FINANCIAL PLAN
Housing Supervisor Dixie Kracht made a few brief comments regarding
the report and yielded to questions fran Council. Council member
Foy complimented Mrs. Kracht and the Citizen Advisory Committee for
the effort expended on this report. Mr. Foy questioned if approval
of the report today committed him to acceptance of Item 5, page 4,
which is the City of Yakima's contribution for staffing. He stated
he feels this is a budget item, therefore, does not wish to approve
this portion of the report today. Mrs. Kracht stated acceptance of
this report today would not eliminate discussion of the item during
budget review. It was MOVED by Barnett, seconded by Berndt, the
report be accepted. Unanimously carried by voice vote.
*11. PRESENTATION OF FIRE DEPARTMENT 1985 ANNUAL REPORT
The report from the Deputy Fire Chief regarding the Fire
Department's Annual Report for the fiscal year of 1985 was accepted
and approved.
*12. APPROVAL OF MARCH 1986 TREASURY REPORT (STANDARD MOTION V-A --
ACCEPT AND APPROVE REPORT)
The report from the Director of Budget and Finance dated April 22,
1986, regarding the investments of the City of Yakima, was accepted
and approved.'
*13. APPROVAL OF OUT-OF -STATE TRAVEL FOR BRUCE CREST, CABLE
COMMUNICATIONS COORDINATOR, TO SUN VALLEY, IDAHO
The out -of -state travel for Bruce Crest, Cable TV Communications
Coordinator to attend the Northwest Regional Conference of the
National Federation of Local Cable Programmers (NFLCP), Sun Valley,
Idaho, May 15 -18, 1986, at a cost of $386, was approved.
*14. APPROVAL OF FINAL CONTRACT PAYMENTS (STANDARD MOTION V -B — ACCEPT
WORK AND APPROVE PAYMENT):
A. 1985 SIDEWALK PROGRAM
The report from the Director of Engineering & Utilities dated
April 22, 1986, with respect to the completion of the work on
the 1985 Sidewalk Program, performed by Patterson Custom
Concrete, was approved, the work accepted and payment of the
final estimates as therein set forth was authorized.
B. NOB HILL BOULEVARD REHABILITATION - 6TH STREET TO 3RD
AVENUE /3RD AVENUE AND NOB HILL BOULEVARD SIGNALIZATION PROJECT
The report from the Director to Engineering & Utilities dated
April 22, 1986, with respect to the completion of the work on
the Nob Hill Boulevard Rehabilitation - 6th Street to 3rd
Avenue and 3rd Avenue/Nob Hill Boulevard Signalization Project,
performed by Superior Asphalt, was approved, the work accepted
and payment of the final estimates as therein set forth was
authorized.
C. PACIFIC AVENUE WATER PROJECT
The report from the Director of Engineering & Utilities
dated April 22, 1986, with respect to the completion of the
work on the Pacific Avenue Watermain, performed by Central
Concrete & Utilities, was approved, the work accepted and
payment of the final estimates as therein set forth was
authorized.
APRIL 22, 1986
*15. CONSIDERATION OF AN ORDINANCE AMENDING THE 1986 BUDGET, AND
APPROPRIATING FUNDS FOR COUNTY ROAD REPAIR FOR CITY SEWER
INSTALLATION (SECOND READING)
An ordinance authorizing the appropriation of sewer maintenance
funds for sewer easement repairs having been read by title only at
the previous meeting was brought before, the Council for a second
,.reading:
ORDINANCE NO. 2957, AN ORDINANCE amending the 1986 budget. for the
City of Yakima; and making an appropriation in. the Sewer Operating
Fund for expenditure in the Sewer - Operating Fund for. expenditure
during 1986.
*16. CONSIDERATION OF AN ORDINANCE AMENDING THE 1986 BUDGET AND
APPROPRIATING FUNDS FOR URBAN AREA ZONING ORDINANCE PUBLICATION
COSTS (FIRST READING)
An ordinance amending the 1986'Budget and appropriating funds for
publication of the Urban Area Zoning Ordinance having been read by
title only at this meeting, was laid on the table for three weeks
or until May 13, 1986.
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17. OTHER BUSINESS
Regarding the trip to New York to meet with the Moody Investors,
Council member Barnett suggested it be determined which Council
members are interested and available to travel on the dates
previously mentioned. Discussion ensued in which various Council
members indicated they feel it is important for the Mayor to be
among those making the trip. In view of that fact, Mayor Beauchamp
stated he prefers to travel May 22 -23 rather than May 15 -16.
Council member Foy suggested those Council members available to
make the trip notify City Manager, Zais tomorrow morning, and that •
Mr. Zais contact Pacific Power & Light and the Chamber of Commerce
to see if they would also like to send delegates at their own
expense. This was the consensus of the Council.
City Manager Zais reported a resolution of appreciation and
commendation for 011ie Nelson and the Nob Hill Now Committee has
been prepared and will be placed on the agenda as soon as it has
been determined when they are available to attend a Council
meeting.
City Manager Zais also asked Council to consider Mr. Linneweh's
invitation. to participate in the study to be done on pre- hospital
care. He suggested . since Council member Buchanan has some
expertise in this area that he consider representing the Council.
Council member Barnett stated he feels the Council should not
became involved in this matter until the certificate of need issue
is indicated. Deputy Fire Chief, Tom Fieldstead, stated he
attended the hearing on the subject recently and cautioned Council
about becoming involved in the matter at this time as local doctors
previously indicated adequate service is being provided to the
community. He reminded Council this was their statement at the
time the Ad Hoc Ambulance Committee conducted their study in 1984.
• It was the consensus of the Council not to participate in the
study, or become involved in the issue at this time.
City Manager Zais also informed Council the City has been asked to
consider dispatching for Care Ambulance and Medic I. He stated
staff has been engaged in an analysis of this and had planned to
bring the information to Council within the next few weeks. He
stated in view of what has happened in the last week and with Mr. •
Linneweh's presentation before Council today, it is his opinion
this should be placed on hold. This was the consensus of the
Council. Regarding the rotation policy versus the
dispatching policy, City Attorney Andrews stated the City can't get
out of the rotation policy at this time.
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301
APRIL 22, 1986
Mayor Beauchamp stated Council has been invited to attend the
Special Olympics Saturday, April 26th at Zaephel Stadium and asked
if any of the Council members might be able to attend. Various
Council members indicated they had previous commitments. and it was
suggested this be delegated to Assistant City Manager, Fred
Stouder.
.
Mayor Beauchamp also asked for Council representation at a fund
raising chocolate tasting event to be held Sunday, April 27th at
the Thunderbird Motor Inn on North First Street. He indicated he
would be out of town, and will be unable to attend. None of the
other Council members being available to attend, it was again
- suggested this be delegated to staff. Council member Carmichael
indicated she feels it is inappropriate to delegate this type of
request to staff. She stated it is the responsibility of the
Council members as elected officials to attend these events as
requested whenever possible.
Information Items
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Items of information supplied to Council were: Washington Nuclear
Waste Board Announcement of public workshops on social and economic
impacts of the proposed nuclear waste repository at Hanford,
Washington; Letter from Mr. & Mrs. Vernon Alexander regarding
woodsmoke pollution. 4/16/86; Letter to Mr. Ron Skala, Attorney,
regarding "S" Street Watermain Extension Project complaints.
4/14/86; Minutes of the March 11, 1986 Community Programming
Advisory Committee meeting; Monthly Report of Chief of Police for
March 1986, and Yakima Center Management Report for March 1 -31,
1986., ; ,,,_ , .
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18. ADJOURNMENT - ..
There being no further business to carne before Council, it. was
MOVED by Buchanan,- seconded by Berndt, that this meeting be
adjourned at the hour of 4:20 p.m.
READ AND CERTIFIED ACCURATE BY /7
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COU►. % L MEMBER DATE
CO , IL MEMBE• DAT
ATTEST:
i ii . 4 L � ���.. _ I L. '�
DEPUTY TY CLERK MAYOR
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