HomeMy WebLinkAboutCouncil Workshop Minutes 10.05.2021MINUTES
CITY OF LAUREL
CITY COUNCIL WORKSHOP
TUESDAY, OCTOBER 05, 2021
A Council Workshop was held in Council Chambers and called to order by Council President
Eaton at 6:31 p.m. on October 5, 2021.
COUNCIL MEMBERS PRESENT:
_x Emetic Eaton
_x Heidi Sparks
x Bruce McGee
x Richard Herr
X Scot Stokes
x Iry Wilke
x Richard Klose
Don Nelson
OTHERS PRESENT:
Nick Altonaga, Planning Director
Bethany Langve, Clerk/Treasurer (Zoom)
Mayor Nelson (Zoom)
Sam Painter, City Attorney
Nathan Herman, Utilities Plant Superintendent
Karen Courtney, Building Official
Public Input:
There were none.
General Items
TIF District Training
Janet Cornish, Community Development Services of Montana, gave a presentation on the
attached PowerPoint.
It was questioned on page 11 of the PowerPoint it states, "stabilize and/or renovate publicly
owned historic buildings." Council asked for further clarification. It was clarified those are
examples. They could also construct new publicly -owned buildings as well. However, in terms
of historic facades belong to the people; however, the City should obtain an easement for those
facades before improvements are made. You can use loans through the revolving loan fund for
private buildings for capital improvement projects. You could use funds if it is a decay issue if a
building has been abandoned and no one is taking care of it. Things such as mothballing or
putting a roof on the building to keep it from decaying further or causing a hazard to adjacent
buildings.
It was further questioned if the fagade program that this district has is in agreement. It was
clarified that is the case for historic buildings. Basic facades no.
It was questioned if any of the grants LURA is doing currently are they doing them correctly? It
was clarified that it depends on what they are doing. When you get into renovation or energy
savings, that is a gray area. What is the public purpose here? These kinds of things would be
better suited with a revolving loan fund. For example, if you invest public tax dollars into a
private business, it puts that business at an advantage over those not located within the district.
The purpose of creating an Urban Renewal District is to invest in public infrastructure so that the
businesses in that area thrive. It is not intended to invest in each individual business itself. Except
for historic preservation or safety, the general rule is for a public purpose or public -owned
property; it can be used.
It was questioned if the TIF District were to leverage other funding sources would have to be in
connection to another project with a TIF District connection. It was clarified that it was correct.
For example, if you get a TSEP or CBDG grant for a sewer system improvement, you could
leverage the TIF District funds but just the portion that will benefit the district itself.
It was questioned where do privately -owned parking lots stand. They are not inside a building;
they are outside, and the public can use parking lots. It was clarified that there is some gray area
here. The easiest way to clarify this is that if it is a privately -owned parking lot, the City could
enter into a lease with that owner to provide public spaces. In that case, there could be a joint
agreement, and the City could lease for a lesser amount over time. It may be a privately -owned
parking lot, but it is managed for public use. Another example was if the parking lots were
unpaved and it was in the public interest to pave them due to a dust issue.
It was questioned if the recent grant applications involving renovating a bathroom, carpet, etc., is
acceptable. They do not serve the public; it serves that business owners' customers. It was
clarified that even the loan program would not be appropriate for those kinds of updates. You
really want to invest money in capital improvements.
It was questioned if LURA approves applications and then sends them to Council. Then the
Council votes them up or down. Recently requested that those applications be individualized and
not as a package. It was further questioned that just because the City approved an incorrect
application does not need to continue to approve something that is incorrect. It was clarified that
now that Council is aware of this, they have not set a president. You may have given grants that
don't fit the law, and you don't want to continue that mistake.
Sam Painter, City Attorney, stated that this training was substantially overdue. The City Council
has not reviewed the program for a number of years. There has been Staff turnover for a number
of years. Each Planner assigned to the LURA Board probably had different ideas of what is
allowable. The statutes are very broad. Anything besides the public purpose has been broadly
defined. This is an excellent time to review and redefine these programs. As for if there is a
liability, should someone not receive a grant, no, there is no liability.
Council President Eaton asked if there was any public input for items not on the agenda. There
was none.
Executive Review
2. Resolution - A Resolution Of The City Council Authorizing The Mayor And City Clerk
To Execute An Underground Gas Pipeline Easement For Northwestern Corporation
D/B/A Northwest Energy For The Purpose Of Constructing, Operating, And
Maintaining An Underground Pipeline To Be Installed And Located Under The City's
Riverside Park.
Nick Altonaga, Planning Director, briefly reviewed the easement. It is a 40 -foot easement
through Riverside Park. There will be no clear -cutting of trees. There is a $500 annual fee for
this easement.
It was questioned if they would be digging holes in the area. It was further questioned what
would happen if they didn't clean up after themselves. Is the clean-up included in this resolution?
It was clarified that it is a bore under the park; they are not anticipating any site work within the
park.
Roy Ishkanian, Northwestern Energy, it is going to be 40 to 50 feet below the park with no
surface disturbance.
It was questioned how many easements are through Riverside Park. It was clarified that there is
at least one. It was clarified that there are easements for Exxon, Williston Basin, MDU, and
NorthWestem Energy.
Roy Ishkanian, NorthWestern Energy, clarified that they had purchased the old Phillips 66 line.
However, that line was washed out. This is a new bore under the river.
It was questioned how the $500 annual compared to the other easements within the park. It was
clarified that Exxon negotiated a price after an oil spill and was willing to pay more. The Mayor
and Public Works Director negotiated the $500 annually. NorthWestern Energy preferred to do a
lump sum vs. an annual payment. Each pipeline easement is negotiated separately.
3. Resolution - A Resolution Approving Zone Changes For Property Owned By
Northwestern Corporation D/B/A Northwestern Energy Located Near Lindy Lane
Within The City Of Laurel's Zoning Jurisdiction.
Nick Altonaga, Planning Director, briefly reviewed the attached Staff report.
It was questioned if they would be on City services. It was clarified that there had been
discussions with NorthWestern Energy regarding annexing into the City. At this time,
NorthWestern Energy has not sought that out. The need for City water and sewer will depend on
the needs of the plant.
Council noted that they had read in the paper that this project was not moving forward.
Roy Ishkanian, NorthWestern Energy, stated that the article was confusing. They had an
application before the Public Service Commission asking for approval of this proposed project.
They had a contract with finite terns. They opted to pull their pre -approval and apply for
reimbursement after the fact to keep the costs fixed.
4. Resolution - A Resolution Authorizing The Mayor To Execute A Contract With "In
Control, Inc." To Prepare A Pre -Engineering Survey For The City's Water Treatment
Plant.
Nathan Herman, Utilities Plant Superintendent, stated In Control does the control work for the
plants. They program the system to run how we would like. This small service contract is the
pre -engineering for rebuilding the PLCs. They will diagram everything, so there are no surprises
when they replace them. The current processors are no longer available, and they do not make
parts anymore. The spare parts the City has had have been used. They will trace all wires and
update our schematics. This contract is not to exceed $50k.
5. Resolution - A Resolution Authorizing The Mayor To Execute A Contract With
Groshelle Construction For Repairs To The City Water Plant Roof.
Nathan Herman, Utilities Plant Superintendent, handed a photo of the area this roof will be built;
see attached. This pad becomes a hazard in the winter as it is flat it will not drain. It is starting to
crack and leak down to the pipe gallery below. The roof will go from the bottom of the windows
to the gutters. Only one quote was returned for $17,340. It will be a metal roof with wood
framing. All wood will be wrapped in metal. It should last for quite some time.
6. Resolution - A Resolution Authorizing The Mayor To Execute A Contract With SR
Landscaping, Inc. For Installation Of An Automatic Water Sprinkler System At The
City Water Plant.
Nathan Herman, Utilities Plant Superintendent, stated that since the SED Basins were removed,
there is a large bare area. They would like to install sprinklers to get this area back to look how it
did before the project. The previous sprinkler system was removed during that project and not
reinstalled after construction.
Resolution - Resolution Of Annexation And Zoning For Property Located At 810 West
7th Street, As An Addition To The City Of Laurel, Yellowstone County, Montana.
Nick Altonaga, Planning Director, briefly reviewed the attached Staff report.
8. Ordinance No. 021-04: An Ordinance Amending Certain Chapters Of Title 8 Of The
Laurel Municipal Code Relating To Health And Safety Matters, Including Nuisances
For The City Of Laurel.
Karen Courtney, Building Official, clarified some of the changes that were done between the
first reading and the second reading.
It was questioned if this ordinance would be enforceable. It was clarified that this ordinance
would be enforceable. It does have penalties and abatement included. It also gives due process to
the abatement portion. If a code violation is not cleaned up, the City can have the Court abate the
property and put the cost on the tax rolls.
Council Issues
9. Parking Study Discussion
Emergency Services Committee has requested a parking study be done in the Central Business
District. The Mayor met with KLJ to discuss a potential parking study. The Police Department
may be open to diagonal parking on the east side of 3'd Avenue, which could potentially help
solve the issues there. Very soon, those vehicles will need to be moved due to the unlawful
striping being removed.
It was clarified that a parking study would identify what spots we have currently and their
utilization. The parking study would also identify areas of improvement. There have been studies
that gave visioning for parking in the Central Business District, but never an actual study for
what parking should look like. The issue on 3`d Avenue is because it was done without proper
approval by Council.
Other Items
Review of Draft Council Agendas
10. Draft City Council Agenda of October 12, 2021.
There were no changes.
Attendance at Upcoming Council Meeting
All Council Members present plan on attending the next Council meeting.
Announcements
Park Board's next scheduled meeting is October 7, 2021, at 5:30 p.m. in Council Conference
Room.
The Clerk/Treasurer took a moment to thank the Council Secretary for all her work to get these
meetings ready to go. Council echoed this statement.
The council workshop adjourned at 8:10 p.m.
Respect —Su ` iitttjed,
-U
Britmey Moorman
Administrative Assistant
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for
the listed workshop agenda items.
r
`�wrON_
0
��.I Con
Urban
Renewal
and Tax
Increment
Financing
CDS of Montana
October S, 2021
Purposes of Urban Renewal
Fundamentals of Tax Increment Financing
Laurel URD Summary
2 Workshop District Management
Overview Eligible Projects and Activities
Urban Renewal Experiences Across the State
and Cautionary Tales
Questions and Discussion
tory Authority for Urban Renewal
"...the prevention and elimination of
[blighted] areas is a matter of state policy
and state concern in order that the state
and its municipalities shall not continue to
be endangered by areas
which... consume an excessive proportion
of its revenues because of the extra
services required for police, fire, accident,
hospitalization, and other forms of public
protection, services, and facilities." (§7-15-
4202 MCA)
Types of U R Ds
Urban Renewal (URD)
Available only within incorporated
cities and towns in areas that
exhibit at least three conditions of
blight
Provides for investments in public
improvements in support of
commercial, industrial and
residential revitalization
Targeted Economic
Development (TEDD)
Available to cities, towns and and
counties in areas that exhibit
public infrastructure deficiencies
Supports value-added economic
development, usually industrial
with limited commercial uses
through investments in public
infrastructure
Urban Renewal and Tax Increment
Financing
The plan for a URD may include a provision to use Tax
Increment Financing (TIF).
TIF is a state authorized, locally driven funding
mechanism that allows cities and counties to direct
property tax dollars that accrue from new investment
within a URD or TEDD, to development activities within
that district.
ow TIF is not a special taxing district; it does not add any new
taxes. Rather, it affects the way that incremental
increases in property taxes are distributed once
collected.
Projects and programs that are funded by TIF dollars must
serve a public purpose.
How a Tax Increment Finance
Provision (TIF) Works
TIF
Start
Date
Stagnating
Property
Values
BASE
TIF
End
Tax Value
Distribuffi
Increment for
Development _
Base-
Increm
Tax Value for Distribution to Other
Taxing Jurisdictions
i fPT
e Calculation
Lime: $10,000,000 dollars of net
N Appraised Value
Lime: Class 4 commercial
perty valued at a tax rate of
�% (2021)
able Value = $189,000
ime: 600 net mills (total mills
us the six -mill university levy and
voted mills after TIF effective
e)
Increment = $113,400
Potential Funding Strategies
w TIF dollars can be used to:
w Directly fund public projects and programs
m Retire debt
Leverage other funding sources, both public and
private.
Funds may be used to establish a revolving loan fund to
provide financing.
w Interest rates can be set based on project feasibility.
wThe revolving fund may continue in perpetuity, even
after the TIF provision has "sunsetted", but funds must be
used in accordance with the adopted urban renewal
plan.
Laurel URD Summary
Al Laurel Urban Renewal District created in 2007
r City created an urban renewal agency in 2008
W Created a Facade Improvement Grant program in 2010
0 Created Technical Assistance Grant program in 2010
0 Large Grant Requests Program in 2015
M General Small Grant Program in 2019
N Issued a 25 -year TIF bond in 2020
10
Feedback,
update and
evaluation of
Implemented
projects
(Last quarter of
calendar year)
Prepare Annual
Report no later
than September
30 of each year
per
§7-15-4237 MCA
Identify projects
to be undertaken
and/or continued
In the next fiscal
year (January -
February)
Adopt URD Work
Plan and Budget
(July -August) as
pad of the Town
budget
Estimate TIF
dollars available
for the next fiscal
Year (February -
March)
Prepare Work Plan
and Budget for
Upcoming Fiscal
Year (March -
April)
Stabilize and/or
renovate
publicly owned
historic buildings
Mitigate unsafe
decay
Improve
accessibility to
publicly owned
infrastructure
Construct and
connect public
infrastructure
Improve
streetscapes
and public
green spaces
Study, plan and
promote
•
Project Evaluation
Criteria
w Public purpose
w Urban Renewal Plan conformance
Beneficiaries - community or district
vs. business?
Leverage - percent
cost
of total project
w Partnerships brought to the project
w Measurable objectives
w Property tax growth
m Opportunity cost
wOngoing maintenance requirements
13
Flooding
Need for Street
Improvements
Storm Drain
System
Inadequacies
Need for
Intersection
Improvements
Lack of Green
Space
Lack of
streetlights,
sidewalks, curbs
and gutters
Urban Renewal Sample Projects
• Water main replacement
• Sewage system expansion pro -rata share
• Repaving/rebuilding streets
Broadband installations
• Unified street fixtures/colors
• Intersection identification
• Signs and Wayfinding
• Utility box graphics/anti-graffiti
Sample Projects
• Public parking lot construction
• Revolving loan fund
• Historic Facade Improvements
• H WK (High Intensity Activated Cross
alk) light
• raffic Signals
Fire hydrant connections
ADA in publicly owned buildings
• Sidewalks
• Streetlights
• Connectivity
• Leveraging LMI grant applications
17
Questionable
public benefit
Dependency
on centrally
assessed
taxpayers
"Build it and
they will come"
Change in
taxable status
Lack of buy -in
Single use
districts
18 Questions and Discussion
LAUREL CITY -COUNTY PLANNING DEPARTMENT
STAFF REPORT
TO: Laurel City -County Planning Board
FROM: Nicholas Altonaga, Planning Director
RE: Zone Change Request— Northwestern Energy
DATE: September 29, 2021
DESCRIPTION OF REQUEST
A Zone Change application has been submitted by Sanderson -Stewart on behalf of their client,
Northwestern Energy Corporation on August 16, 2021 for their two properties described as:
• Parcel 2, COS 1677, S15, T02S, R24E
• Parcel 1, COS 1239, S15, T02S, R24E
Parcel 1, COS 1239 currently has two zoning designations, half the parcel is Heavy Industrial
(HI), and half is Agricultural Open (AO). Parcel 2, COS 1677 currently has two zoning
designations, approximately a quarter of the parcel is zoned Heavy Industrial (HI), a quarter of
the parcel is zoned Agricultural Open (AO), and half of the parcel lacks a zoning classification.
The Applicant seeks to amend the official Laurel Zoning Map to expand the zoning jurisdiction
to include the entirety of the parcels and provide Heavy Industrial (HI) zoning to the entirety of
the two parcels. Approval of this Zone Change request would amend the Laurel Zoning district
to fully encompass the parcels in question, as well as apply Heavy Industrial (HI) zoning to the
entirety of Parcel 2, COS 1677 and Parcel 1, COS 1239.
Owner:
Northwestern Corporation
Legal Description:
S15, T02 S, R24 E, C.O.S. 1677, PARCEL 2
Legal Description:
S15, T2S, R24E, C.O.S. 1239, PARCEL 1 (CENTRALLY ASSESSED)
Address:
Lindy lane (Approximate)
Parcel Size:
44.179 Acres (total)
Existing Land Use:
Power Generation (Parcel 1), Agricultural (Parcel 2)
Existing Zoning:
Heavy Industrial (HI), Agricultural Open (AO), unzoned
Proposed Land Use:
Heavy Industrial (HI)
BACKGROUND AND PROCEDURAL HISTORY
• February 23, 2021— Contractors for Northwestern Energy begin conversations with the
Planning Department regarding amending the zoning of parcels.
• March 23, 2021— City Staff provide data and details on the quality of water within the
City water system as well as other utility data.
• May 17, 2021— Sanderson Stewart staff contact City Planning Dept inquiring on the
process for re -zoning the parcels in question.
• May 18, 2021— City Staff provide all information on the Zone Change process to
Sanderson Stewart and explain the process.
• August 16, 2021— Zone Change Application packet submitted to the City Planning
Department.
• September 15, 2021— Public Hearing took place at the Laurel City -County Planning
Board for review as per the criteria in the Laurel Municipal Code. The Planning Board
voted to approve the Zone Change request with the conditions stated within this staff
report.
• October 12, 2021— Public Hearing scheduled in front of the Laurel City -Council.
• Subsequent governing Body Action to follow as necessary.
STAFF FINDINGS
1. August 16, 2021- The Applicant submitted a physical and digital copy of the Zone
Change application
2. The Application contains all necessary items to move forward in review process.
3. The applicant is requesting a zone change for the above identified parcels to Heavy
Industrial (HI).
4. The applicant has stated their goal of installing a power generation station that will
generate 175 -megawatts from natural gas in order to reinforce current power system
capacity.
5. The parcels in question are already partially zoned as Heavy Industrial (HI).
6. The surrounding area to the immediate west is zoned Heavy Industrial (HI) and is used
for those purposes by CHS Inc. as a petroleum refinery and by the City of Laurel as a
Sewer Treatment Facility.
7. The current use of Parcel 1 as a public utility service installation is allowable within the
Heavy Industrial (HI) zoning classification.
8. The proposed use of Parcel 2 as a public utility service installation is allowable within the
Heavy Industrial (HI) zoning classification.
PLANNING BOARD AND GOVERNING BODY REVIEW CRITERIA
17.72.060 - Zoning commission action.
A. The zoning commission shall review and take action upon each application in accordance
with the provisions of this chapter, and after a public hearing at which the application shall
be presented to the zoning commission by the planning director together with his findings
and conclusions on the matter. A report of the commission's recommendation and the
planning director's findings and conclusions shall be submitted to the city council.
The zoning commission shall make a recommendation to the city council to:
1. Deny the application for amendment to the official map;
2. Grant action on the application for a period not to exceed thirty days;
3. Delay action on the application for a period not to exceed thirty days;
4. Give reasons for the recommendation.
C. The zoning commission shall adopt such rules and regulations for the conduct of public
hearings and meetings, which shall be published and available to the public, as well as
conflict of interest rules, to ensure that no member is entitled to vote on a matter in which
he has an interest directly or indirectly.
The Planning Director recommends that the Planning Board and Zoning Commission approve
the zone change request and grant action on the application not to exceed thirty days for:
• Parcel 2, COS 1677, 515, T02S, R24E
• Parcel 1, COS 1239, 515, T02S, R24E
The Zone Change approval specifically notes that:
1. The parcels in question shall be fully included within the Laurel Zoning Jurisdiction.
2. The parcels in question shall have their zoning classification changed to fully be within
the Heavy Industrial (HI) zoning district.
3. The parcels in question shall have no use on them which are not deemed allowable
within the Heavy Industrial (HI) zoning district.
4. Any future change of zoning for said parcels shall follow the same process as this
approval.
1. Zone Change Request Letter and Justification
2. Zone Change Application Form
3. Aerial Parcel Maps for effected properties
4. Aerial Parcel Map with concept drawing of proposed use
5. Site Concept Plan for proposed use
6. Declaration of Covenants and Conditions
7. LMC 17.20—Commercial-Industrial Use Regulations
8. LMC 17.72 —Amendments
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LAUREL CITY -COUNTY PLANNING DEPARTMENT
STAFF REPORT
TO: Laurel City -County Planning Board and Zoning Commission
FROM: Nicholas Altonaga, Planning Director
RE: Annexation and Zoning Request for 810 W 7th Street
DATE: September 29, 2021
Scott and Amy Slothower submitted a request on August 9, 2021 for Annexation and Zoning for
their property located at 810 W 7th Avenue. The Slothower family has sought to annex 810 W
7th Street due to the failure of the septic system on the property and the lack of options for
fixing or repairing it.
Scott and Amy Slothower were granted permission by the Laurel City Council on July 14, 2020
to submit an application for annexation as per the Laurel Annexation Policy. Approval of the
annexation and zoning petition would expand the Laurel city limits to include the property at
810 W 71h Street, zone the parcel as enable the property in question to connect to city services,
and would
Owner:
Scott & Amy Slothower
Legal Description:
INGRAHAM SUBD (LAUREL), S08, T02 S, R24 E, BLOCK 1, Lot 36 -
Address:
810 W 7th Street Laurel, MT
Parcel Size:
7,800sgft
Existing Zoning:
Residential Tracts
Existing Land Use:
Single Family Residential
Proposed Zoning:
Residential 6000 (R-6000)
Proposed Land Use:
Single Family Residential
• June 22, 2020—Slothower Family submit letter to petition City Council for permission to
submit an annexation and zoning application.
• August 9, 2021—The Application for Annexation and Zoning was submitted to the Laurel
Planning Department.
• September 1, 2021— Planning Director provided clarification on the legal documents
(AA and Waiver of Right to Protest) submitted with the Annexation application.
• September 15, 2021— Planning Board held a Public Hearing on the proposed Annexation
and zoning for 810 W 7th Street. Planning Board voted to approve the annexation and
zoning for 810 W 71h Street with the stated staff conditions.
• October 12, 2021— City Council has scheduled a Public Hearing to review the application
for annexation and zoning for 810 W 711 Street and to make a final decision on the
matter.
1. The applicant has submitted an application for the annexation and zoning of the
property at 810 W 7th Street.
2. The applicant has submitted this application due to the inadequate septic system on the
property that is unable to be repaired or improved.
3. The applicant seeks to connect the property into the city water and sewer system.
4. 810 W. 7th Street is immediately adjacent to the Laurel municipal city limits.
5. The applicant is requesting the zoning to be changed to Residential 6000
6. The immediately adjacent parcels to the east are zoned Residential 6000
7. The current use of the property as a single-family residence is allowable within the
proposed R6000 district.
8. Asper the criteria within the Annexation Policy:
a. The property is located within an area identified by the city for future expansion
b. There are existing water and sewer lines immediately to the east of the property
c. The property will meet the standard of the adjacent parcels within the municipal
city limits.
d. The property owners have executed a Waiver of Right to Protest
e. The property will be zoned as R6000, to match the adjacent zoning of parcels to
the east and south.
f. The land use (single-family residential) conforms with the goals of the Laurel
Growth Policy (2020)
The Planning Director recommends the Planning Board to approve the annexation and zoning
request for the property at 810 W. 7th Street with the following conditions.
1. The Property shall connect to the municipal water and wastewater utility system.
2. The Property shall be zoned as Residential 6000 (R-6000)
3. The Annexation Agreement shall be updated as per the comments made by the Laurel
Planning Department prior to filing with the Yellowstone County Clerk & Recorder.
4. The Waiver of Right to Protest shall be updated as per the comments made by the
Laurel Planning Department prior to filing with the Yellowstone County Clerk &
Recorder.
5. The Annexation Agreement, Waiver of Right to Protest, and City Council Resolution shall
be filed with the Yellowstone County Clerk & Recorder within 90 days of annexation
approval.
6. The proposed connections to the municipal water system shall be approved by the
Laurel Department of Public Works.
7. Any and all public improvements and infrastructure connections shall be completed
within one (1) calendar year from the date of the annexation approval.
ATTACHMENTS
1. Annexation Application Form
2. Satellite view with parcel lines
3. Survey plat with parcel highlighted
4. Estimate for work regarding Water and Sewer extension.
5. Annexation Agreement
6. Waiver of Right to Protest (Signed)
7. Initial Annexation Permission Letter dated June 22, 2020.
8. Resolution R20-38 —Approval of request to file a petition to annex property.
9. Annexation Policy (2008)