HomeMy WebLinkAboutCity Council Resolution 1978-780Resolution No. '78- 780
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF $3,,450,000 GENERAL OBLIGATION WATER
AND SERER REVENUE BONDS OF 1978 FOR THE PURPOSE
OF PROVIDING MONEY TO IMPROVE THE WATER AND SEWER
SYSTEM OF THE CITY
WHEREAS, the City of Plymouth owns and operates a water
distribution system and sewer system, and
WHEREAS, the City Engineer has recommended improvements
and extensions (the "Improvements") of the water and sewer systems
as follows:
Project Designation & Description Estimated Cost
808 - Public Utilities Building $ 475,000
810 - Zachary Lane -,water 204,690
812 - Well No. 5 214,700
902 - Northwest interceptor -sewer 530,972
$1,425,362
WHEREAS, it is determined that it is necessary and
desirable to make the Improvements, and
WHEREAS, the construction of Project No. 808, the Public
Utilities Building, is essential to the efficient and economical
operation of the water and sewer system of the city and said building
will be used primarily in the operation of the systems and only
incidentally for other purposes, and
WHEREAS, it is necessary that the City borrow $1,425,362
to provide bonds for the construction of the Improvements and
engineering, fiscal and legal expenses related thereto and to provide
interest during construction, and
WHEREAS, it is necessary to provide the required amount
by the issuance and sale of bonds payable out of water and sewer
revenues, and
WHEREAS, the City is authorized under the provisions of
Minnesota Statutes, Section 444.075, to issue revenue bonds for
such purpose, with such bonds also supported by a pledge of the full
faith and credit of the city and such bonds can be sold to provide
necessary funds:
•
NOW, THEREFORE, BE IT RESOLVED By the City Council of
the City of Plymouth, Minnesota, as follows:
1. It is hereby determined that it is necessary and
expedient to finance the Improvements by the issuance of General
Obligation Water and Sewer Revenue Bonds (the "Bonds") as authorized
by Minnesota Statutes, Section 444.075. It is further determined that
the amount of $1,425,362 should be supplemented by the issuance of
additional bonds as authorized by Minnesota Statutes, Section 475.56
and that the City shall sell and issue $1,450,000 of bonds, $24,638
of said bonds being considered as additional interest. The resolution
awarding the sale of the Bonds shall contain a statement that all
funds received in excess of $1,425,362 shall be credited to the sinking
fund for the payment of interest first coming due.on the Bonds.
2. The City shall issue and sell its General Obligation
Water and Sewer Revenue Bonds in the aggregate principal amount of
$1,450,000, dated December 1, 1978, bearing interest rate or rates
hereafter determined at public sale payable September 1, 1979 and
semiannually thereafter on March 1 and September 1 in each year, in
the denomination of $5,000 each and maturing serially on March 1
in the years and amounts as follows:
Year Amount
1981
$ 50,000
1982
75,000
1983
75,000
1934
100,000
1985
100,000
1986
125,000
1987
125,000
1988
150,000
1989
150,000
1990
150,000
1991
75,000
1992
75,000
1993
75,000
1994
75,000
1995
50,000
All Bonds maturing after March 1, 1990, will be subject to redemption
at the option of the City on sai' date and any interest payment date
thereafter in inverse numerical order, at par plus accrued interest to
date of redemption.
3. Both principal and interest shall be payable at a
suitable bank designated by the purchaser and the City shall pay the
rehsonable charges of such bank for its services as paying agent.
4. The Bonds and the interest coupons to be thereto
attached, shall be in substantially the following form:
No.
$5,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA.
COUNTY OF HENNEPIN
CITY OF PLY14OUTH
GENERAL OBLIGATION WATER AND SEWER REVENUE BOND OF 1978
KNOW ALL MEN BY THESE PRESENTS That the City of Plymouth,
Hennepin County, Minnesota, hereby acknowledges that it is obligated
and, for value received, promises to pay to bearer out of itn General
Obligation Water and Sewer -Revenue Bonds of 1978 Sinking Fuad the sum
of FIVE THOUSAND DOLLARS, on the 1st day of March, 19 , and to
pay interest thereon out of said fund from the date hereof until the
principal sum is paid at the rate of
interest to maturity payable September 1, 1979 and semiannually
thereafter on the 1st day of March and the lst day of September in each
year, in accordance with and upon presentation and surrender of the
interest coupons hereto attached as they severally become due. Both
principal and interest are payable at
in any coin or currency of the United States of America which at the
time of payment is legal tender for public and private debts.
All bonds of this issue maturing after March 1, 1990, are
subject to redemption, at the option of the City on said date and any
interest payment date thereafter, in inverse numerical order, at par
and acdrued interest to date of redemption.
This bond is one of an issue in the total principal amount
of$1,450,000, all of like date and tenor except as to serial number,
maturity, interest rate and provision for redemption, which bonds have
been issued for the purpose of providing money to aid in financing
water and sewer system improvements, or parts thereof, as authorized
by Minnesota Statutes, Section 444.075, and the principal thereof and
interest thereon are payable primarily from the net revenues of the
water and sewer system of the City in a special sinking fund of the City
as set forth in Resolution 78-780 adopted November 20,.1978 entitled,
"Resolution Providing for the Issuance and Sale of $1,450,000 General
Obligation water and Sewer Revenue Bonds of 1978 for the Purpose of
Providing Money to Improve the Water and Sewer System of the City," to
which reference is made for a full statement of rights and powers hereby
conferred. The full faith and credit of the City is pledged for its
payment and the City Council has obligated itself to levy taxes on all
of the taxable property in the City in the event of any deficiency,
which taxes may levied without limitation as to rate or amount.
. IT IS HEREBY CERTIFIED AND RECITED That in and by the
authorizing resolution, the City has covenanted and agreed that it will
continue to own and operate the water and sewer system free from
competition by other like utilities; that adequate insurance on' said
plant and system and suitable fidelity bonds on employees will be
carried; that proper and adequate books of account will be kept
showing all receipts and disbursements relating to the Water and Sewer
Utility Fund, into which it will pay all of the gross revenues from
the water and sewer system and any special assessments levied for
these improvements; that it will also create and maintain a General
Obligation Water and Sewer Revenue Bonds of 1978 Sinking Fund, into
which it will pay, out of the net revenues from the water and sewer
system, a sum sufficient to pay principal hereof and interest hereon
when due, and that it will provide, by ad valorem tax levies, for any
deficiency.in net water and sewer revenues.
IT IS FURTHER CERTIFIED AND RECITED That all acts,
conditions and things required by the Constitution and laws of the
State of Minnesota to be done, to happen and to be performed precedent
to and in the issuance of this bond, have been done, have happened
and have been performed in due form, time and manner as required by law,
and that this Bond, together with all other indebtedness of the City
outstanding on the date hereof and the date of its actual issuance -Ind
delivery does not exceed any constitutional or statutory limitation
thereon.
IN WITNESS WHEREOF, the City of Plymouth, Hennepin County,
Minnesota, by its City Council, has caused this bond to be executed in
its behalf by the facsimile signature of the Mayor and the manual
signature of the City Manager and a facsimile of the corporate seal
'of the City to be hereto affixed, and has caused the interest coupons
hereto attached to be executed and authenticated by the facsimile
.signatures of said officers, all as of December 1, 1978.
City Manager
(Facsimile City Seal)
(facsimile signature)
Mayor
(Form of Coupon)
On the lst day of September (March), 19 , the City of
Plymouth, Hennepin County, Minnesota, will pay to bearer, out of its
General Obligation Water and Sewer Revenue Bonds of 1978 Sinking Fund,
at
the amount shown hereon for interest then due on its General Obligation
Water and Sewer Revenue Bond of 1978, dated December 1, 1978.
(facsimile signature)
Mayor
(facsimile signature)
City Manager
5. The City Clerk shall obtain a copy of the proposed
approving legal opinion of Messrs. LeFevere, Lefler, Pearson, O'Brien
& Drawz of Minneapolis, Minnesota, which shall be complete except
as to dating thereof and shall cause said opinion to be printed on
each bond, together with a certificate to be signed by the facsimile
signature of the Clerk in substantially the following form:
I hereby certify that the foregoing is a
full, true and correct copy of the legal opinion
executed by the above named attorneys, except as
to the dating thereof, which opinion has been
handed to me for filing in my office prior to the
time of bond delivery.
(facsimile signature)
City Clerk
City of -Plymouth, Minnesota
TLe Clergy: is hereby authorized and directed to execute such certificate
in the name of the City, upon receipt of such opinion and to file the
opinion in the City offices.
6. The Bonds shall be executed on behalf of the City
by the facsimile signature of the Mayor and the manual signature
of the City Manager, and the interest coupons shall be executed and
authenticated by the printed .facsimile signatures of the Mayor and
City Manager, and the facsimile of the corporate seal of the City may,
but need not be, printed thereon; provided, however, that the
signatures of both the Mayor and City Manager may be facsimile
signatures, duly authenticated by the manual signature of an officer
of the Bank of
hereby designated authenticating agent pursuant to Minnesota Statutes,
Section 475.55, Subdivision 1, and, if the bonds are to be so executed
and authenticated, the bond form set forth in paragraph 4 hereof shall
be modified as follows:
0
W ` W
a) Substitute the following parag_aph for the final
paragraph of the bond:
"IN WITNESS WHEREOF, the City :.` FlY."loui a., liennepin
County, Minnesota, by its City Counc;j., j)i,: caused
this bond to be executed by the facei.oi.le _�Agnatures
of its Mayor and City Manager (anA •a i_l ,.,A tarsimile
Of the corporate seal of the city imprif.ted thereon)
And the interest coupons hereto attached to br• executed
and authenticated by the facsimile signatures of said
officers, except for the manual signature -of its duly
authorized Authenticating Agent on the reverse side
of this bond, all as of December 1, 197"'.11
b) Add the following on the reverse side o::.the bond:
"This Bond is one of the Bonds of the stxies designated
herein issued pursuant, to the Xesolutioil authorizing
its issuance and delivery."
Bank
o
As Authenticating Agent
By
Its Authorized Officer
The Bonds when fully executed, shall be delivered by the City Finance
Director-Tr,.easurer to the purchaser thereof upon receipt of the purchase
price, and the said purchaser shall not be obliga`.:ed to see to the
proper application thereof.
7. The City shall establish and continue to operate its
Water and Sewer Utility Fund to which shall be credited all gross
revenues of the water and sewer system and out of which shall be paid
all normal and reasonable expenses of current operations of the water
and sewer system. Any balance therein shall' be deemed net revenues
and shall be transferred, from time to time,, to a General C;bligation
Water Revenue Bonds of 1978 Sinking Fund hereby created, which fund
shall be used to pay principal and interest on tl.,a Bonds and any other
bonds similarly authorized. There shall always he retained in such
fund a sufficient amount to pay principal of and interest on all bonds
payable from said fund, and the City Finance Director -Treasurer shall
report any current or anticipated deficiency in such fund to the
Council.
8. The City Council covenants and agrees with the holders
of the Bonds that so long as any of the Bonds remain outstanding and
unpaid, it will keep and enforce the following covenants and agreements:
(a) The City will continue to maintain and
efficiently operate the municipal water and sewer
system as a public utility and convenience and will
cause all revenues therefrom to be deposited in a bank
account and credited to the Vater and Sewer Utility
Fund as hereinabove provided, and will make no expenditures
from said account except for a duly authorized purpose
and in accordance with this resolution.
(b) The City will also maintain a separate account
for the General Obligation Water and Sewer Revenue Bonds
of 1978 Sinking Fund -and will cause money to be credited
to said account, from time tr, time, out of net revenues
from the water and sewer system, -in sums sufficient to
pay principal of and interest on the Bonds.
(c) The City will keep and maintain proper and
adequate books of record and account separate from all
other records of the City in which will be complete and
correct entries as to all transactions relating to the
water and sewer system and which shall be open to
inspection and copying by any bondholder, his agent cr
attorney, at any reasonable time, and it will furnish
certified transcripts therefrom upon request and upon
payment of a reasonable fee therefor, and said accounts
shall be audited at least annually by a qualified public
accountant and statements of such audit and.report will
be furnished to all bondholders upon request.
(d) The City will cause all persons handling
revenues of the water and sewer system to be bonded'in
reasonable amounts for the protection of the City and
the bondholders and will cause the funds collected on
account of the operations of the water and sewer system
to be deposited in a bank or banks whose deposits are
guaranteed under the Federal Deposit Insurance Law.
(e) The City will keep the water and sewer system
insured at all times against loss by fire, tornado and
other risks customarily insured against, with an insurer
or insurers in good si,anding, in such amounts as are
customary for like plants, to protect the holders, from
time to time, of the bonds issued hereunder and the City
from any loss due to any such casualty and will.apply the
proceeds of such insurance to make good any such loss.
(f) The City and each and all of its officers
will punctually perform all duties with reference to
the water and sewer plant and the system as required by
the laws of the State of Minnesota.
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(g) The City will impose and collect charges of
the.hature authorized by Minnesota Statutes, Section
444.075, at the times and in the amounts required to
produce, together with any taxes or special assessments
for the Improvements which are hereby designated as a source
of payment of the Bonds, net revenues adequate to pay
all principal and interest when due on the Bonds and to
create and maintain such reserves securing said payments
as may be provided in the authorizing resolution.
(h) The City Council will levy general ad valorem
taxes on all taxable property in the City, when required
to meet any deficiency in net revenues.
9. The Bonds shall be issued and sold together with and
not separately from the General Obligation Improvement Bonds of the
City authorized by Resolution 78-779 of this date and in accordance
with the terms and conditions of the official notice of sale attached
to said Resolution 78-780 as Exhibit A. The City Clerk is authorized
and directed to cause to be published the abbreviated notice of sale
attached to said Resolution 78-780 as Exhibit B in the manner required
by law. The City Council shall meet on November 20, 1978, at 7:30
o'clock p.m. for the purpose of considering sealed bids on the Bonds
and taking any otL.er appropriate action.
10. The City officers are hereby authorized and directed
to furnish to the purchaser of the Bonds and to the attorneys
examining the proceedings and furnishing a legal opinion to the
purchaser, certified copies of all ordinances, resolutions and records
of the City relating to the Bonds or to the right, power and authority
of the City, by its council, to- issue the same, and such certified
copies or certificates shall be deemed representations of the City
as to all facts stated therein.
11. All the terms and conditions of this resolution shall
be and constitute a covenant on the part of the City to and with each
and every holder from time to time of the Bonds issued hereunder.
12. The Mayor, City Manager and Finance Director -Treasurer
are hereby authorized and directed to certify that they have examined
the official statement or prospectus prepared and circulated in
connection with the issuance and sale of the Bonds and that to the
best of their knowledge and belief said statement is a complete and
accurate representation of the facts and representaticns made therein
as of the date of said official statement or prospectus as it
relates to the City.
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Neils , and upon vote
I m
being taken thereonl,the following voted in favor thereof:
Mayor Hunt, Councilmembers Hoyt, Neils, Seibold 2nd Spaeth
and the following voted in opposition thereto: None.
whereupon said resolution was declared duly passed and adopted.
1W 14W
Exhibit A
OFFICIAL
NOTICE OF SALE
$8,250,000 General Obligation Bonds
consisting of
$6,800,000 General Obligation Improvement Bonds of 1978
$1,450,000 General Obligation Water and Sewer Revenue Bonds of 1978
City of Plymouth
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that the City Council of the City of
Plymouth, Minnesota, will meet at the City Hall, 14900 C 23rd Alrenue
North, in the City of Plymouth, on Monday, December 18, 1978, at 7:30
o'clock p.m., C.T., to receive, -open and consider bids for the purchase
of $8,250,000 negotiable coupon, general obligation bonds of the City
on the following terms:
Purpose and Security
The purpose of the Improvement Bonds is to provide funds for
the financing of various assessable public improvements in the City.
The purpose of the Water and Sewer Revenue Bonds is to provide funds
for the construction of various improvements to the water and sewer
system of the City. The bonds of both issues are hereinafter collectivel_•
referred to as "the Bonds". The Bonds will be general obligations
of the issuer, for which its full faith, credit and taxing powers are
pledged. The Improver-�nt Bonds are further secured by special
assessments against bei efitted property; the Water and Sewer Revenu%
Bonds are further secured by a pledge of the net revenues of '` water
and sewer system of the City.
Date and Maturities
The Bonds will be dated December 1, 1978, will be in the
denomination of $5,000 each, and will mature on March 1 in the
following years and amounts:
Improvement Bonds
Water & Sewer Revenue Bonds
Year
Amount
Amount
Total
1981
$460,000
$ 50,000
$510,000
1982
460,000
75,000
535,000
1983
480,000
75,000
555,000
1984
500,000
100,000
600,000
1985
500,000
100,000
600,000
1986
500,000
125,000
625,000
1987
500,000
125,000
625,000
1988
500,000
150,000
650,000
1989
500,000
150,000
650,000
1990
500,000
150,000
650,000
Improvement Bonds
Year Amount
1991
$400,000
1992
400,000
1993
400,000
1994
400,000
19.95
300,000
$6,800,000
LJ
Water & Sewer Revenue Bonds
Amount Total
$ 75,000
$475,000
75,000
475,000
75,000
.475,000
75,000
475,000
_ 50,000
350.000
$1,450,000 $8,250,000
Redemption Feature
All Bonds of both issues maturing after March 1, 1990 will
be subject to prior redemption at the option of the City in inverse
order of serial numbers on said date and any interest payment date
thereafter at a price of par plus accrued interest to date of
redemption.
Interest
Interest on the bonds will be payable September 1, 1979,
and semiannually thereafter on each March 1 and September 1. All Bonds
maturing on the same date must bear interest from date of issue until
paid at a single, uniform rate, not exceeding the rate specified for
bonds of any subsequent maturity. No limit on the number of interest
rates that may be specified for the issues. Each rate must be in an
integral multiple of 5/100 of 1%, and no rate of interest nor the
net effective average rate of the issues may exceed 7% per annum. No
•supplemental or "B" coupons will• be permitted.
Paying Agent
Principal and interest will be made payable at any suitable
bank in the United States designated by the successful bidder and
approved by the City within 48 hours after award of sale, and the City
will pay reasonable and customary paying agency charges.
CUSIP Numbers
The City will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the correctness of any
numbers printed thereon, but will permit such numbers to be assigned
and printed at the expense of the purchaser, if the purchaser waives
any extension of the time of delivery caused thereby.
Delivery
Within 40 days after sale, the City will furnish and deliver
to the office of the purchaser or, at his option, will depo.it with
a bank in the United States selected by him and approved by the City
as its agent to permit examination by ani to deliver to the purchaser,
;the printed and executed Bonds, the unqualified opinion thereon of
"bond counsel, and a certificate stating that no litigation in any
manner questioning their validity is then threatened or pending. The
charge of the deli,.rery agent must be pzid by the purchaser, but all
other costs will. be paid by the City. The purchase. price must be
paid upon delivery of the Bonds, or within five days after deposit
with the delivery agent, in funds available for expenditure by the
City on the day of payment.
Legal Opinion
An unqualified legal opinion on the Bonds will be furnished
by Messrs. LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis,
Minnesota. The legal opinion will be printed on the Bonds at the
request of the purchaser. The legal opinion will state that the Bonds
are valid and binding general obligations of the City, and that the
City is obligated and required to levy ~taxes for the principal and
interest thereon as -the same become due without limit as to rate or
amount.
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
and must be received prior to the time of said meeting. The Bonds
of the two issues will not be sold separately and bids must be for
all Bonds of both issues. Each bid must be unconditional and must
be accompanied by a cashier's or certified check or bank draft in the
amount of $165,000, payable to the City Finance Director, to be
retained by the City as liquidated damages if the bid is accepted and
the bidder fails to comply therewith. The bid authorizing the lowest
net interest cost (total interest from date of bonds to stated
maturities, less any cash premium or plus any amount less than $8,250,000
bid for principal) will be deemed the most favorable. No oral bid and
no bid of less than $8,108,027 for principal plus accrued interest on
all of the Bonds will be considered, and the City reserves the right
to reject any and all bids and to waive any informality in any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Loretta Garrity
City Clerk
Dated: November 20,. 1978
Exhibit B
NOTICE OF SALE
$8,250,000 General Obligation Bonds
consisting of
$6,800,000 General Obligation Improvement Bonds of 1978
$1,450,000 General Obligation Water and Sewer Reverne Bonds of 1978
City of Plymouth
Hennepin County, Minnesota
These bonds will be offered on Monday, December 18, 1978,
at 7:30 o'clock p.m., C.T., at the City Hall, 14900 C 23rd Avenue North,
in Plymouth, Minnesota. Dated December 1, 1978, the bonds will mature
on March 1 in the years and amounts as follows:
The Bonds of the two issues will not be sold separately, and bids must
be for all of the bonds of both issues. All Bonds of both issues
maturing after March 1, 1990 will be subject to prior redemption at
the option of the City in inverse order of serial numbers on said date
and any interest payment date thereafter at a price of par plus accrued
interest to date of redemption. Interest will be payable September 1,
1979, and semiannually thereafter. Each rate must be in 4n integral
multiple of 5/100 of 1% and no rate may exceed 7% per annum. Minimum
price, $8,108,027. -An unqualified legal opinion will be furnished by
Mepsrs. LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis,
Minnesota. The purpose of the Improvement Bonds is to finance various
assessable public improvements in the City; the purpose of the Water
and Sewer Revenue Bonds is to finance construction of various improvement-`
Improvement Bonds
Water & Sewer Revenue Bonds
Year
Amount
Amount
Total-
otal1981
1981
$460,000
$ 50,000
$510,000
1982
460,000
75,000
535,000
1983
480,000
75,000
555,000
1984
500,000
100,000
600,000
1985
500,000
100,000
600,000
1986
500,000
125,000
625,000
1987
500,000
125,000
625,000-
1988
500,000
150,000
650,000
1989
500,000
150,000
650,000
1990
500,000
150,000
650,000
1991
400,000
75,000
475,000
1992
400,000
75,000
475,000
1993
400,000
75,000
475,000
1994
400,000
75,000
475,000
1995
300,000
50,000
350,000
$6,800,000
$1,450,000
$8,250,000
The Bonds of the two issues will not be sold separately, and bids must
be for all of the bonds of both issues. All Bonds of both issues
maturing after March 1, 1990 will be subject to prior redemption at
the option of the City in inverse order of serial numbers on said date
and any interest payment date thereafter at a price of par plus accrued
interest to date of redemption. Interest will be payable September 1,
1979, and semiannually thereafter. Each rate must be in 4n integral
multiple of 5/100 of 1% and no rate may exceed 7% per annum. Minimum
price, $8,108,027. -An unqualified legal opinion will be furnished by
Mepsrs. LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis,
Minnesota. The purpose of the Improvement Bonds is to finance various
assessable public improvements in the City; the purpose of the Water
and Sewer Revenue Bonds is to finance construction of various improvement-`
to the water and sewer system of the City.
Bpi ORDER OF THE CITY COUNCIL
/s/ Loretta Garrity
City Clerk
Dated: November 20, 1978
Further information may be obtained from and bids may be delivered to:
Ehlers and Associates, Inc., Financial Consultants to the City of
'clymouth, First National -Soo Line Concourse, 507 Marquette Avenue,
Minneapolis, Minnesota 55402. Telephone (612) 339-8291.
STATE OF MINNESOTA )
)
COUNTY OF HENNEPIN ) SS.
)
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting
Clerk of the City of Plymouth, Minnesota, do'hereby certify that I
have carefully compared the attached and foregoing extract of
minutes of a meeting of the City Council of said City held on
November 20, 1978, with the original thereof on file'in my office,
and the same is a full, true and complete transcript therefrom
insofar as the same.relates to the authorization of the issuance and
sale of $8,250,000 General Obligation Improvement and Water and
Sewer Revenue Bonds of 1978 of the City.
WITNESS My hand officially as such Clerk and the corporate
seal of the City tits 21st day of November , 1978.
(SEAL)
City Clerk
City of Plymouth, Minnesota
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