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HomeMy WebLinkAboutCOW 2006-09-25 Item 4 - Public Hearing - Oppose Initiative 933 "An Act Relating to Providing Fairness in Government Regulation of Property" COUNCIL AGENDA SYNOPSIS s s' y Lrisa ITEAT No. O i2 1 1 1 lleetikeDate 1 Preparedir_ 1 illaiar;.reriew 1 Cirmilmien; 1 se=. fo I 09/25/06 1 silk 1 -AA-A 1 (4)1 I 1 t�B_ a I I I I J ITEM INFORMATION I CAS NUMBER: 06-109 (ORIGINAL AGENDA DATE: 09 /25/06 AGENDAITEN' TITLE Resolution opposing Initiative 933, entitled "An Act Relating to Providing Fairness in Government Regulation of Property." CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other ilftg Date 1BgDate alt Dad M Dare Mt Dak 3f Date 09/25/06 dltgDate I SPONSOR Council Alger Adm Svcs DCD Finance Fire Legal P&R Police Pll I SPONSOR'S Initiative 933 has been filed with the Washington Secretary of State and will be on the SUMMARY statewide ballot in November, 2006. The attached draft resolution would oppose the Initiative and urge voters to vote "no." REVIEWED BY COW Mtg. CA &P Cmte F&S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/12/06 RECOMMENDATIONS: SPONSOR /ADMEN. CO\LIIIrPEE Consider resolution opposing Initiative 933. COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: N/A Comments: MTG. DATE 1 RECORD OF COUNCIL ACTION j 09/25/06 1 1 1 MTG. DATE ATTACHMENTS 09/25/06 1 Memorandum re: Initiative 933 from Steve Lancaster. dated 7/12/06. 1 1 Initiative 933 (text) 1 Draft Resolution Matrix indicating status of I -933 resolutions proposed in other cities I Minutes, Community Affairs and Parks Committee meeting, 09/12/06. 1 DEPARTMENT OF COMMUNITY DEVELOPMENT CITY OF TUKWILA MEMORANDUM TO• Mayor Mullet City Council Planning Commission FROM. Steve Lancaster DATE: July 12, 2006 SUBJECT Initiative -933 ISSUE Initiative 933, known as the Property Fairness Act (copy attached) has been filed with the Washington Secretary of State and will be on the statewide ballot in November, 2006. This memo will provide a brief summary of its main provisions likely to affect Tukwila. Sources of additional information on the initiative are also referenced. SUMMARY OF KEY PROVISIONS I -933 establishes three primary requirements: 1. Consideration of new ordinances. reeulations and rules. I -933 requires that prior to enacting any new ordinance, regulation or rule, cities and other agencies must "consider and document" several aspects of the regulation, including: o the purpose of the proposed regulation; o its impact on property rights, property use and value; o estimated compensation that might be due property owners; and o less restrictive alternative ways to accomplish the regulation's purpose. This requirement is somewhat analogous to the requirement of SEPA that agencies evaluate the environmental implications of certain types of proposed ordinances and other enactments prior to acting upon them. 2. Compensation for decreased property value. I -933 requires that cities and other agencies must either o compensate an owner of property for any damage to the use or value of his/her property resulting from the application or enforcement of any ordinance, regulation or rule; OR Q• \COUNCIL\I- 933.doc -sjl- Created on 07/12/2006 1:07:00 PM Page 1 of 2 o choose to not apply or enforce the regulation giving rise to the reduction in value. I -933 defines the term "damaging the use or value" to mean. "to prohibit or restrict the use of private property to obtain benefit to the public," including but not limited to: o "prohibiting or restricting any use or size, scope or intensity of any use legally existing or permitted as of January 1, 1996," o "requiring a portion of property to be left in its natural state or without beneficial use to its owner, unless necessary to prevent immediate harm to human health or safety;" o "prohibiting maintenance or removal of trees or vegetation." Restrictions that "apply equally to all property subject to the agency's jurisdiction," including the following specific types of regulation, are not considered to damage the use or value of property, and are therefore not subject to compensation or waiver: o use restrictions "necessary to prevent an immediate threat to human health and safety;" o enforcement of building and fire code structural standards; o "limiting the location or operation of sex offender housing or adult entertainment;" o requiring compliance with setback requirements that were established before January 1, 1996; and o requiring compliance with certain chemical use restrictions, worker health and safety laws, wage and hour laws and dairy nutrient management restrictions. "Compensation" is defined to mean remuneration (payment) "equal to the amount the fair market value of the affected property has been decreased by the application or enforcement of the ordinance, regulation or rule." Where application or enforcement of an ordinance, regulation or rule would require any portion of a property to be left in its natural state or without beneficial use by its owner, compensation would include the fair market value of that portion of the property. Required compensation would also include "any costs and attorneys fees reasonably incurred by the property owner in seeking to enforce" the requirements of I -933 3. Grandfather rights. Finally, I -933 requires that any new development regulation adopted under the Growth Management Act (Chapter 36.70A RCW) "shall not prohibit uses legally existing on any parcel prior to the adoption" of such new regulation. This provision appears to provide a perpetual "grandfathering" for certain nonconforming uses. ADDITIONAL INFORMATION Considerable additional information is available on the web. Supporters of the initiative have established a site at www.nrooertvfaimess.com. Opponents have established a website at www.noon993.orz. Information is also available at the Association of Washington Cities website at www.awcnet.ore (click on "Key Issues," then "Initiatives and at the Washington Chapter of the American Planning Association site (www.washinaton- ana.oru). Cc: Rhonda Berry, Jim Morrow; Diane Jenkins, DCD Staff. QACOUNCIL'J- 933.doc -sjl- Created on 07/12/2006 1:07 PM Page 2 of 2 INITIATIVE 933 I, Sam Reed, Secretary of State of the State of Washington and custodian of its seal hereby certify that, according to the records on file in my office, the attached copy of Initiative Measure No 933 to the People is a true and correct copy as it was received by this office. 1 AN ACT Relating to providing fairness in government regulation of 2 property; adding new sections to chapter 64.40 RCW; adding a new 3 section to chapter 36.70A RCW; and creating new sections 4 BE IT ENACTED BY THE PEOPLE OF THE STATE OF WASHINGTON 5 INTENT TO REQUIRE FAIRNESS WHEN GOVERNMENT 6 REGULATES PRIVATE PROPERTY 7 NEW SECTION. Sec. 1. This act is intended to protect the use and 8 value of private property while providing for a healthy environment and 9 ensuring that government agencies do not damage the use or value of 10 private property, except if necessary to prevent threats to human 11 health and safety. The people also intend to recognize and promote the 12 unique interests, knowledge, and abilities private property owners have 13 to protect the environment and land. To this end, government agencies 14 must consider whether voluntary cooperation of property owners will 15 meet the legitimate interests of the government instead of inflexible 16 regulation of property. 17 The people find that over the last decade governmental restrictions 18 on the use of property have increased substantially, creating hardships 1 1 for many, and destroying reasonable expectations of being able to make 2 reasonable beneficial use of property Article I, section 16 of the 3 state Constitution requires that government not take or damage property 4 without first paying just compensation to the property owner The 5 people find that government entities should provide compensation for 6 damage to property as provided in this act, but should also first 7 evaluate whether the government's decision that causes damage is 8 necessary and in the public interest. 9 The people find that eminent domain is an extraordinary power in 10 the hands of government and potentially subject to misuse. When 11 government threatens to take or takes private property under eminent 12 domain, it should not take property which is unnecessary for public use 13 or is primarily for private use, nor should it take property for a 14 longer period of time than is necessary 15 Responsible fiscal management and fundamental principles of good 16 government require that government decision makers evaluate carefully 17 the effect of their administrative, regulatory, and legislative actions 18 on constitutionally protected rights in property Agencies should 19 review their actions carefully to prevent unnecessary taking or 20 damaging of private property The purpose of this act is to assist 21 governmental agencies in undertaking such reviews and in proposing, 22 planning, and implementing actions with due regard for the 23 constitutional protections of property and to reduce the risk of 24 inadvertent burdens on the public in creating liability for the 25 government or undue burdens on private parties. 26 FAIRNESS WHEN GOVERNMENT REGULATES PRIVATE 27 PROPERTY BY REQUIRING CONSIDERATION 28 OF IMPACTS BEFORE TARING ACTION 29 NEW SECTION. Sec. 2. A new section is added to chapter 64.40 RCW 30 to read as follows: 31 (1) To avoid damaging the use or value of private property, prior 32 to enacting or adopting any ordinance, regulation, or rule which may 33 damage the use or value of private property, an agency must consider 34 and document: 35 (a) The private property that will be affected by the action; 36 (b) The existence and extent of any legitimate governmental purpose 37 for the action; 2 1 (c) The existence and extent of any nexus or link between any 2 legitimate government interest and the action; 3 (d) The extent to which the regulation's restrictions are 4 proportional to any impact of a particular property on any legitimate 5 government interest, in light of the impact of other properties on the 6 same governmental interests; 7 (e) The extent to which the action deprives property owners of 8 economically viable uses of the property; 9 (f) The extent to which the action derogates or takes away a 10 fundamental attribute of property ownership, including, but not limited 11 to, the right to exclude others, to possess, to beneficial use, to 12 enjoyment, or to dispose of property; 13 (g) The extent to which the action enhances or creates a publicly 14 owned right in property; 15 (h) Estimated compensation that may need to be paid under this act; 16 and 17 (i) Alternative means which are less restrictive on private 18 property and which may accomplish the legitimate governmental purpose 19 for the regulation, including, but not limited to, voluntary 20 conservation or cooperative programs with willing property owners, or 21 other nonregulatory actions 22 (2) For purposes of this act, the following definitions apply: 23 (a) "Private property" includes all real and personal property 24 interests protected by the fifth amendment to the United States 25 Constitution or Article I, section 16 of the state Constitution owned 26 by a nongovernmental entity, including, but not limited to, any 27 interest in land, buildings, crops, livestock, and mineral and water 28 rights. 29 (b) "Damaging the use or value" means to prohibit or restrict the 30 use of private property to obtain benefit to the public the cost of 31 which in all fairness and justice should be borne by the public as a 32 whole, and includes, but is not limited to: 33 (i) Prohibiting or restricting any use or size, scope, or intensity 34 of any use legally existing or permitted as of January 1, 1996; 35 (ii) Prohibiting the continued operation, maintenance, replacement, 36 or repair of existing tidegates, bulkheads, revetments, or other 37 infrastructure reasonably necessary for the protection of the use or 38 value of private property; 3 1 (iii) Prohibiting or restricting operations and maintenance of 2 structures necessary for the operation of irrigation facilities, 3 including, but not limited to, diversions, operation structures, 4 canals, drainage ditches, flumes, or delivery systems; 5 (iv) Prohibiting actions by a private property owner reasonably 6 necessary to prevent or mitigate harm from fire, flooding, erosion, or 7 other natural disasters or conditions that would impair the use or 8 value of private property; 9 (v) Requiring a portion of property to be left in its natural state 10 or without beneficial use to its owner, unless necessary to prevent 11 immediate harm to human health and safety; or 12 (vi) Prohibiting maintenance or removal of trees or vegetation 13 (c) "Damaging the use or value" does not include restrictions that 14 apply equally to all property subject to the agency's jurisdiction, 15 including: 16 (i) Restricting the use of property when necessary to prevent an 17 immediate threat to human health and safety; 18 (ii) Requiring compliance with structural standards for buildings 19 in building or fire codes to prevent harm from earthquakes, flooding, 20 fire, or other natural disasters; 21 (iii) Limiting the location or operation of sex offender housing or 22 adult entertainment; 23 (iv) Requiring adherence to chemical use restrictions that have 24 been adopted by the United States environmental protection agency; 25 (v) Requiring compliance with worker health and safety laws or 26 regulations; 27 (vi) Requiring compliance with wage and hour laws; 28 (vii) Requiring compliance with dairy nutrient management 29 restrictions or regulations in chapter 90 64 RCW; or 30 (viii) Requiring compliance with local ordinances establishing 31 setbacks from property lines, provided the setbacks were established 32 prior to January 1, 1996. 33 This subsection (2)(c) shall be construed narrowly to effectuate 34 the purposes of this act. 35 (d) "Compensation" means remuneration equal to the amount the fair 36 market value of the affected property has been decreased by the 37 application or enforcement of the ordinance, regulation, or rule To 38 the extent any action requires any portion of property to be left in 39 its natural state or without beneficial use by its owner, 4 1 "compensation" means the fair market value of that portion of property 2 required to be left in its natural state or without beneficial use 3 "Compensation" also includes any costs and attorneys' fees reasonably 4 incurred by the property owner in seeking to enforce this act 5 FAIRNESS WHEN GOVERNMENT DIRECTLY 6 REGULATES PRIVATE PROPERTY 7 NEW SECTION. Sec. 3. A new section is added to chapter 64.40 RCW 8 to read as follows: 9 An agency that decides to enforce or apply any ordinance, 10 regulation, or rule to private property that would result in damaging 11 the use or value of private property shall first pay the property owner 12 compensation as defined in section 2 of this act. This section shall 13 not be construed to limit agencies' ability to waive, or issue 14 variances from, other legal requirements An agency that chooses not 15 to take action which will damage the use or value of private property 16 is not liable for paying remuneration under this section. 17 NEW SECTION. Sec. 4. A new section is added to chapter 64.40 RCW 18 to read as follows: 19 An agency may not charge any fee for considering whether to waive 20 or grant a variance from an ordinance, regulation, or rule in order to 21 avoid responsibility for paying compensation as provided in section 3 22 of this act. 23 NEW SECTION. Sec. 5. A new section is added to chapter 36.70A RCW 24 to read as follows: 25 Development regulations adopted under this chapter shall not 26 prohibit uses legally existing on any parcel prior to their adoption 27 Nothing in this chapter shall be construed to authorize an interference 28 with the duties in chapter 64 40 RCW 29 MISCELLANEOUS 30 NEW SECTION. Sec. 6. The provisions of this act are to be 31 liberally construed to effectuate the intent, policies, and purpose of 32 this act to protect private property owners 5 L 1 NEW SECTION. Sec. 7. Nothing in this act shall diminish any other 2 remedy provided under the United States Constitution or state 3 Constitution, or federal or state law, and this act is not intended to 4 modify or replace any such remedy. 5 NEW SECTION. Sec. 8. Subheadings used in this act are not any 6 part of the law. 7 NEW SECTION. Sec. 9. If any provision of this act or its 8 application to any person or circumstance is held invalid, the 9 remainder of the act or the application of the provision to other 10 persons or circumstances is not affected 11 NEW SECTION. Sec. 10. This act shall be known as the property 12 fairness act. 6 RESOLUTION NO. r y C r zt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, CJ WASHINGTON OPPOSING INITIATIVE 933, ENTITLED "AN ACT RELATING TO PROVIDING FAIRNESS IN GOVERNMENT REGULATION OF PROPERTY" WHEREAS, Initiative 933 (1 -933) will be presented to the voters of the State of Washington at the general election on November 7, 2006, with the following official Ballot Title and Description: Statement of the Subject: Initiative Measure 933 concems govemment regulation of private property Description: This measure would require compensation when govemment regulation damages the use or value of private property, would forbid regulations that prohibit existing legal uses of private property, and would provide exceptions or payments. Should this measure be enacted into law? Yes No WHEREAS, it is the responsibility of the City of Tukwila to protect and preserve the health, safety and welfare of its citizens; and WHEREAS, it is the further responsibility of the City of Tukwila under the Growth Management Act, the Shoreline Management Act, the State Environmental Policy Act, the National Flood Insurance Program, the Endangered Species Act and other state and federal mandates to manage growth and development in ways that protect the environment while promoting public safety and the economic and social well -being of the community; and WHEREAS, meeting the aforementioned responsibilities necessarily involves placing reasonable restrictions on the development and use of private property; and WHEREAS, 1 -933 would require the City to decide, on a case -by -case basis, whether to enforce or waive its duly enacted ordinances, rules and regulations if they result in °damaging ve; the use or value of private property" as defined by the initiative; and WHEREAS, 1 -933 would require the City to pay compensation to the owner of private property if it decides to apply or enforce such duly enacted ordinances, rules and regulations; and II■ WHEREAS, 1 -933 defines the term "damaging the use or value of private property" to mean "to prohibit or restrict the use of private property to obtain benefit to the public;" and WHEREAS, because of the breadth of I -933's definition of private property, and because its definition of "damaging the use or value" of private property includes no minimum threshold for the reduction of use or value, 1 -933 would dramatically lower the threshold for compensation far below constitutional limits because virtually any limitation on the use of any kind of private property could give rise to a claim for compensation for "damages" within the meaning of 1 -933, regardless of the importance of the public protection achieved by such limitation or the uses or values remaining to the property owner; and WHEREAS, the exceptions listed in Section (2)(c) of 1 -933 do not include nuisance uses that would typically be precluded from residential neighborhoods, and thus 1 -933 would authorize claims for payment or waiver for City regulations that protect neighborhoods from a wide variety of obnoxious land uses and activities that would seriously degrade the quality of life and property values in such neighborhoods; and WHEREAS, 1 -933 states that its provisions are to be construed liberally and its limitations narrowly; and WHEREAS, 1 -933 would require agencies such as the City Of Tukwila to undergo a lengthy and costly pre enactment process to document potential impacts of new regulations upon the use and value of private property; and WHEREAS, many of the private property restrictions enforced or applied by the City of Tukwila implement mandates of the State of Washington; and WHEREAS, the Association of Washington Cities has estimated that the statewide administrative cost to cities alone would be between $60 million and $76 million each year, while the statewide cost to cities for paying off claims for actions /conditions enforced over the period of 1996 to 2006 would be between $3.5 billion and $4.5 billion, and WHEREAS, the only alternative to payment of compensation provided by 1 -933 is to issue site specific waivers from regulations, which will lead to significant inequities among neighboring property owners and incompatible growth, adversely affect the value and use of adjacent properties and will likely give rise to lawsuits and claims for compensation from adjacent property owners, and WHEREAS, local governments may not have the legal authority to waive certain regulations on a parcel -by- parcel basis; and WHEREAS, the Washington Farm Bureau, sponsor of 1 -933, has acknowledged that the Initiative does not affirmatively grant any authority to waive the enforcement or application of any ordinance, regulation or rule; and WHEREAS, 1 -933 would unreasonably constrain the City of Tukwila's constitutional authority to adopt and enforce reasonable land use development standards to mitigate traffic impacts, assure appropriate building height and lot coverage maxima, provide for the preservation of open spaces and protection of environmentally sensitive areas, and other general development regulations necessary to promote the public health, safety and welfare, thereby supplanting the will of the local community and curtailing the police power authority granted to the City Council by the Washington Constitution (Article XI, Section XI) to adopt and enforce sound land use, zoning, growth management and planning, critical area, water quality and shoreline management and other measures through an open public process; and WHEREAS, the length and complexity of the aforementioned and required pre enactment process and the requirement to process claims for damages would shift City resources and staff time away from reviewing and processing all other permits and force the City to concentrate on mitigating the City's liability, to the detriment of the City's existing permitting and other obligations, and WHEREAS, the cost of processing and paying compensation for the enforcement of reasonable development regulations under 1 -933 would far exceed the requirements of both the federal and state constitutions and cripple the fiscal ability of the City to provide needed infrastructure, public services and public safety which are necessary to promote healthy and prosperous communities; and WHEREAS, 1 -933 conflicts with the City's and its citizens' vision and goals related to growth management and environmental protection as reflected by the Tukwila Comprehensive Plan which was developed through open and extensive public participation and does so in a manner that will benefit only a few at the expense of the greater community; and WHEREAS, the City supports the benefits of balancing the general public welfare and private property rights; and WHEREAS, given the broad,scope of the terms "private properly" and °damaging the use or value° as defined by the initiative, and given considerable ambiguity with regard to its application and stated exemptions, 1 -933 will likely stimulate considerable litigation and uncertainty; and WHEREAS, on September 25, 2006, the Tukwila City Council held a public hearing on Initiative Measure 933 pursuant to RCW 42.17 130 (1) which permits a City Council to adopt a resolution in support, or in opposition to a ballot proposition so long as there is notice of the meeting and the public is afforded the opportunity to express opposing views; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tukwila, Washington opposes adoption of Initiative Measure 933, and urges voters to vote °no° on 1 -933 due to the sweeping and detrimental impacts outlined above. PASSED BY THE TUKWILA CITY COUNCIL this day of 2006. Dennis Robertson, Council President ATTEST: Jane E. Cantu, City Clerk APPROVED AS TO FORM: Office of the City Attomey Filed with the City Clerk: Passed by the City Council: Resolution Number STATUS OF I -933 RESOLUTIONS UNDER CONSIDERATION IN KING, PIERCE AND SNOHOMISH COUNTY CITIES Jurisdiction I Public Hearing Date for action Date Resolution Opposes or Date I Scheduled Adopted I Supports I=933? 1 Snoqualmie July 24 Aug. 15 Aug. 5 Opposes 2 Auburn Aug. 14 Aug. 21 Aug. 21 (Opposes I 3 Newcastle Aug. 15 Sep. 5 Sep. 5 Opposes 1 4 1 Maple Aug. 28 Sep. 5 Sep 18 I Opposes Valley 1 5 I Shoreline I Sep. 11 Sep. 11 Sep. 11 Opposes I 6 Covington Sep. 12 Sep. 26 7 Burien Sep. 18 Sep. 18 Sep 18 Opposes 8 I Mountlake I Sep. 18 Sep. 18 Sep 18 Opposes Terrace 9 Puyallup Sep. 18 Sep. 18 Sep 18 Opposes 10 Mercer 1 Sep. 18 1 Sep 18 Sep 18 Opposes Island 11 I Lakewood I Sep. 18 12 Sammamish Sep. 19 Sep. 26 13 Kirkland Sep. 19 I Sep. 19 14 1 Bellevue Sep. 25 15 I Tulavila Sep. 25 I 16 Edmonds I Sep. 26 I Sep. 26 17 Buckley I Sep. 26 Sep. 26 18 I Mill Creek Sep. 26 19 Redmond Oct. 3 20 Kent I Oct. 4 Q.\ 1933 \StatusOfResolutions.doc -sjl- Created on 09/19/2006 2.12:00 PM Page 1 of I Community Affairs and Parks Committee September 12, 2006 5:00 p.m. Present: Joan Hernandez, Chair; Joe Duffie, and Pam Linder, council members. Steve Lancaster, Director of Department of Community Development; Diane Jenkins, Administrative Assistant to the Council; and Chuck Parrish, community member Business Agenda: A. Initiative 933, Property Rights Mr. Lancaster provided factual informafion on Initiative 933, Property Fairness Act, which will appear on the statewide ballot in November The Council has the option of taking no action, adopting a resolution supporting 1 -933, or adopting a resolution opposing 1 -933. He referred to his memo and summarized key provisions of this initiative. Ms. Hemandez asking about "grandfathering Mr Lancaster explained that under the proposed initiative, growth management act (GMA) regulations cannot prohibit use of property that was permitted before January 1, 1996. He noted that the City's Comprehensive Plan was adopted in December 2005. Ms. Linder asked if the City would be responsible to pay compensation for sensitive areas. Mr Lancaster noted that the City may not be able to waive those regulations because it is a State requirement. Ms. Linder asked about new ordinances and steps being taken for proactive code enforcement. Mr Lancaster noted that the Council could be advised not to adopt new ordinances that may give rise to compensation issues. In regard to code enforcement, it would depend on if the ordinance was in place prior to 1996. In some instances, the City may approve certain uses rather than paying compensation. Mr Duffle felt it was important to have the council take a position on this initiative. Mr Lancaster noted that proponents and opponents of the initiative would be invited to come and speak. He will check with the city's attorney to determine what steps that council can take regarding this initiative. The committee agreed to direct staff to prepare a draft resolution opposing the initiative and present it at a Committee of the Whole meeting for discussion. Announcements: Ms. Hernandez noted that the tentative date of October 12 scheduled with City of Tukwila's Community Affairs Parks Committee and City of SeaTac's Land Use Parks Committee is in conflict with the arrival of visitors from Tukwila's sister city, Ikawa, Japan. Therefore, she asked the committee members if they would like to have altemative dates explored. It was agreed to reschedule the joint meeting to another mutually agreeable date. Adjournment: 5:40 p.m. Committee Chair Approval 0.linutes by DJ. Reviewed by SL and RB. le