271039 �
WHITE� �'� CiTV�CLERK � .
PINK -FINA'NGE 1 �
CANARV - DEPARTMENT � G I TY OF SA I NT PALT L COUflCll � ����� � �
Bl_UE � 1 MA�p�R s � File �0. �-�"- �'�%'
' � Council olu io
, „
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,950,000 WATER
REVENUE BOltTDS OF 1978, SERIES 1
WHEREAS:
A. The City of St. Paul owns and operates a muni-
cipal water utility hereinafter referred to as the "Water
Utility" which is under the jurisdiction of the Board of
Water Commissioners hereinafter referred to as the "Board" ,
and said Water Utility has been under the jurisdiction of
the Board since it was acquired in approximately 1885;
B. The Board and the Council deem it necessary
and expedient to improve the Water Utility, all as more fully
described herein;
C. To provide for such improvements the Board has
recommended and the City proposes to issue its revenue bonds ^'
,
to be designated "Water Revenue Bonds of 1978, Series 1" , in •--�
accordance with and pursuant to the provisions of Section
10. 11. 2 of the City Charter;
D. There are no bonds, certificates or other obli-
gations payable out of the "Net Revenues" (as herein defined)
of said Water Utility constituting a lien or charge thereon,
except $1,180,000 Water Revenue Bonds of 1977, Series 1 issued
pursuant to resolution adopted by this City Council on February
1, 1977 of which $1,180,000 remain outstanding and undis-
charged; .
_ E. Paragraph 9 of ,said resolution authorizing the
issuance and sale of $1,180,000 Water Revenue Bonds of 1977, �
a a it ie bonds as follows:
COUNCILMEN Requested by Department of:
Yeas Nays
In Favor Fi na � and M ement Servi ces
� � �
__ Against
Form Approved by ity ttorney�
Adopted by Council: Date — � �
Certified Yassed by Council Secretary BY /
By _,� � ..
Approved by Mayor: Date _ Approv by Mayor for Submis �on Qouncil
BY — — BY
. . � , �
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"9. The revenue bonds issued hereunder shall
be a first charge and lien upon the Net Revenues
of the Water Utility and no part of such Net
Revenues shall ever be pledged to the payment
of any general obligation bonds issued by the
City while any bonds of this issue or bonds
issued on a parity therewith remain outstand-
, ing and undischarged. No additional revenue
obligations payable from the Revenue Bond
Debt Service Account shall be hereafter issued
unless the same are expressly made a second
and subsequent lien upon the Net Revenues of
the Water Utility, provided however, that
additional obligations may be issued on a parity
of lien with the bonds herein authorized, pro-
vided that the annual Net Revenues of said Water
Utility for each of the two completed fiscal
years immediately preceding the issuance of
such additional obligations shall have been
one and one-half times the maximum annual
principal and interest coming due thereatter '
on all outstanding revenue obligations payable
from and having a parity of lien upon the Net
Revenues of the Water Utility Fund, including the
additional obligations so to be issued; pra-
vided further however that if the annual Net
Revenues in either or both of the aforesaid
two completed fiscal years shall be insufficient
to meet this test then any reasonably projected
increase in Net Revenues for the fiscal year
immediately following such secand completed
fiscal year may be added to the Net Revenues
for such completed fiscal years or either of
them (but the total of such pro�ected increase
in Net Revenues may be added only once} in ap-
plying the foregoing test. Such facts shall be
� shown by the Certificate of the General Manager
of the Board of Water Commissioners and shall
be a finding of and recited in the resolution
of the City authorizing any such additional
series. In addition, the following condi-
tions shall be met:
" (a) The payments required to
be made (at the time of the issuance
of such parity lien bonds) into the
various funds and accounts provided
for in this resolution have been
made.
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" (b) All such parity lien bonds
shall have a December 1 maturity or
maturities and shall. have semiannual
interest payments on June 1 and
December 1 in each year.
" (c) The proceeds of such parity
lien bonds shall be used only for the
purpose of making improvements, addi-
tions, extensions, renewals or replace-
ments to the Water Utility, "'
F. In accordance with advice received from the
Board the Council finds, determines and declares that
it is necessary and expedient to provide moneys in the
amount of $2,950,000 to improve the Water Utility, establish
a Reserve and provide for the costs of the issuance thereof
from the proceeds of revenue bonds, payable solely from the
Net Revenues of the Water Utility;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of St. Paul, Niinnesota, as follows:
1. It is hereby found, determined and declared
that it is advisable, expedient and necessary to provide
money in the amount of $2, 950, 000 to make improve�nents to
the Water Utility of the City, including but not limited to
the following, to wit:
a. Water Treatment Plant -
Sludge Thickener
b. St. Anthony Park Elevated Tank
c. Booster Station Improvements &
Discharge Piping
d. Auxiliary Lime Feeder - Water
Treatment Plant
e. Vadnais Well System Improvements
f. Hamline Yard Warehouse
and to establish a Reserve and pay £or the costs of the
issuance of said revenue bonds.
2. Neither the City nor the Board has any out-
standing bonds, warrants, certificates, or other obliga-
tions of evidences of indebtedness, or money borrowed for
or on account of said Water Utility or indebtedness for
which any of the Net Revenues of all or a part of said
Water Utility have been pledged or which are a prior lien
on such Revenues except $1,180, 000 Water Revenue Bonds
of 1977, Series l.
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3. All payments required to be made prior to
the date hereof into the various funds and accounts of the
"Water Utility Fund" established pursuant to resolutio� of
this Council adopted on February l, 1977 which resolution
authorized the issuance of $1,1$0, 000 Water Revenue Bonds
of 1977, Series 1 have been made.
The annual Net Revenues of the Water Utility for
each of the two completed fiscal years immediately pre-
ce�ding the issuance of the obligations herein authorized
have been one and one-half times the maximum annual principal
and interest coming due hereafter on all outstanding revenue
obligations payable from and having a parity of lien upon the
Net Revenues of the Water Utiiity Fund including the obliga-
tions herein authorized and proposed to be issued, to wit:
Net Revenues 1976 $2, 612, 210.40
Net Revenues 1977 $2,010,407.34
Maximum Annual Principal and
Interest on $I,180,000 Water '
Revenue Bonds af 1977, Series 1 $ I66,110.�0
Maximum Annual Principal and
Interest on $2,950,000 Water
Revenue Bonds of 1978, Series 1
(assuming a net interest rate
of 4.50%) $ 444,125.OQ
TOTAL $ 610, 235.00
One and One-half Times Total
Maximum Annual Principal and
Interest Requirements $ 915,352.50
The Council has been furnished with the Ce��ificate
__ of the General Manager of the Board of Water Commissioners
attesting to the foregoing facts.
4. The Council pursuant to advice from the Board
hereby finds, determines and declares that the estimated
revenues to be derived from the operation of the Water Utilit�
during the term of the re�enue bonds authorized by this reso-
lution will be more than sufficient to provide Net Revenues
as defined herein adequate to pay principal and znterest when
due on the revenue bonds authorized herein and on those which
are now outstanding and to maintain the Reserves required
therefor.
5. The City shall forthwith issue and sell
$2, 950, 000 negotiable Water Revenue Bonds of 1978, Series
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1 and the director of the Department o� Finance and
Management Services is hereby authorized and directed to
give notice of sale by publication in the official newspaper,
the Daily Bond Buyer and in Commercial West at least ten
days in advance of the date of sale. Notice shall be in
substantially the following form:
.
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qF�ICI�� TER�tS 0� BOND SALE
$2� 9.50, 000
CITX Ok' SA�NT ��UL, MINNESO�'A
WATER REV�NU� �ONDS O�' 1978, S�R��S 1
These Bonds (the "pb�.a,c�ati,ons") w:tll be of�ered �or sale on
sealed bids on Tuesday, June 13, 1978. Bids wi11 be opened
at 10 :00 A.M. , Centra7. Time, at the Off�.ce of Bernard J.
Carlson, Director, Department of Finance and Management Ser-
vices, 109 City Ha11., Saint Paul, Minnesota, 55102 and will
be presented to and acted upon by the City Council at 11:00
A.M. , Central Time of the same day. The Obligations will be
of�ered upon the �ollowing terms:
DATE AND INTEREST PAY'MENTS OF THE OBLIGATIONS
The Obligations will be dated July 1, 1978, and will bear in-
terest payable on ea,ch Deceznber 1 and June 1 to maturity,
commencing December l, 1978 .
TXPE AND PURPOSE QF THE OBLTGATTONS
The Obligations will be payable solely from net operating
revenues of the Water Utility of the City of Saint Paul. The
Obligations will be non registrable in bearer form with interest
coupons attached, and wil.1 be of the denomination of $5,000
each. The proceeds wi11 be used �or construction of improve-
ments of the Watex Utility of the City.
MATUR,TTIES AND REDEMPTION
The Obligat�,ons wil�. mature December l, in the amounts and
years as follows:
$ 50,000 1978
$275,000 1979-1987
$425, 000 1988
All Obligations will be without the right of prior redemption.
PAYING AGENT
The First National Bank of Saint Paul, Minnesota and The Chase
Manhattan Bank, N.A. , New York, New York, have been designated
by the City as a].ternate Paying Agent for this issue.
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CUSIP NUMBERS
It is anta.cipated that �,� the Obligations �ua1�,�y fox asszgn-
ment o� CUSIP numbers such CUSIP numbers w�,ll be �xinted on the
Obla�gations at the Zssuex' �. ex�ense, but nea,ther the fa�.luxe
to pza,nt such, numbex on a,nx Qb1�,cJat�,on nox a,ny erroz with
respect thereto sha�.l. constitute cause �or fa�,lure or re-
�usal by the Purchaser to accept del�very of the Obligations.
The CUSIP Sexvice Bureau chaxge �or the assi,gnment of CUSIP
identification numbers Shall� be paid �or by the Purchaser.
SETTLEMENT
The Obligati.ons will be deJ.ivered without cost to the Pur�
chaser at a place mutually satisfactory to the Tssuer and
the Purchaser within 40 days �ollowing the date of their
award. Delivery will be subject to receipt by the Pur-
chaser of an approving legal opinion of Briggs and Morgan,
Professional Association of Saint Pau1, Minnesota, which
opinion will be printed upon the Obligations, and of cus-
tomary closing �apers, �.ncluding a no-�litigation certifi-
cate. Payment for the Qbla,gations must be made by the Pur-
chaser in Federal or equivalent funds on the day of settle-
ment in a timely manner so as to be available to the Tssuer
on said day.
At settlement, the Purchaser will be �urnished with a certi-
ficate signed by apprapri.ate officers of the Tssuer on behaTf
of the Issuer to the e��ect that the Ofii�i:a1 Statement pre-
pared for the Issue da.d not and does not contain any untrue
statement of a material �act oz omit to state a material fact
necessary in order to make the statements therein, in light
of the circumstances under which they were made, not mis-
leadi,ng.
One copy of the Offi.cial Statement will be furnished without
cost to any interested party upon request. Additional copies
of the Official Statement will be furnished without cost to
the Purchaser upon request in reasonable quantity within a
reasonable time of such request.
TYPE OF BID
' Sealed bids for not less than par and accrued interest on the
total principal amount of the Obligations, and a certified or
cashier' s check in the amount of $29,500 payable to the order
of the Treasurer of the Issuer must be filed with the under-
signed prior to the time of sale. No bids will be considered
which are not accom�anied by the requi.red certified or cashier' s
check. The certified or cashier' s check of the Purchaser
will be retained by the Tssuer as liquidated damages in the
event the Purchasex �a�-ls to comply with the accepted bid. No
bid may be withdrawn until the conclusion of the meeting of the
Issuer at which bids are to be acted upon.
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RATES
Biddexs �ust .s�eci�y zate� Which do nat exceed 70 �er �nnum.
All Obl.ic�a,tions of the ��me �natur�,tx lnust bear a ��.ngle rate
fzom the date o� issue to tn�tura,t�. No rate ma,x exceed the
rate specified �or any Subsequent matur�,t� by more than 1/2
of 1� per annum. Addit�,onal coupon� maX not be used. No
limitation is placed upon the numbex o� rates wh�.ch may be
specified.
AWARD
Award wa.11 be made on the basis of the lowest dollar interest
cost determi,ned by the deduction o� any premium from the total
interest on a7,1 Obligati,ons �rom their date to their stated
maturity as computed on the basis of the schedule of bond years
�.n the Official Statement published for the Obligations. The
�ssuer reserves the right to reject any and a11 bids, to waive
informalities and to adjouxn the sa1e..
Dated 1978
BY ORDER Ok' THE CITY COUNCIL
/s/ Bernard J. Caarlson �
Director, Department o� Finance and Management Services.
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6. Each and all of the terms and provisions of
the foregoing "Official Terms of Bond Sa1e" are hereby
adopted as the terms and conditions of said bonds and of
the sale thereof.
7. Said bonds and the interest coupons to be
attached thereto shall be in substantially the following
form:
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. ��,�.���
UNzT�D ST�3,T� QF AI�'�.ERICA
STAT� �� MINNESOTA
R�SEY COUNTY
C�TX OF S1-�INT PAUL
WATER REVENUE
BOND Ok' 197 8, SERIES 1
. No. $
KNOW ALL DZEN BY THESE PRESENTS that the City of
Saint Paul, Ramsey County, Minnesota, hereby acknowledges
that it a,s indebted and �or value received will pay to
bearer hereof without option of prepayment, solely out
of the Revenue Bond Debt Service Account of the Board af
Water Commissioners Water Utility Fund, the principal
sum o�
THOUSAND DOLLARS
on the first day of Decembex, 19 , and will pay interest
thereon, solely out of saa.d Account, from the date hereof
until sai.d principal sum is paid, at the rate of
percent ( %) per annum, payable
December l, 1978 and semiannually therea�ter on June l and
December 1 of each year, as the same severally become due.
Both pri.ncipal and interest are payable at The First
National Bank of Saint Paul, St. Paul, Minnesota or at The
Chase Manhattan Bank, N.A. , New York, New York, or at the
office of any du].y appointed successor paying agent, at
the option of the holder in any coin or currency of the
United States of America, which on the date of payment is
legal tender �or public and private debts.
This bond is one of an issue in the total principal
amount of $2,950,000, all of like date and tenor, except as
to serial number, maturity, interest rate and priorlty as to
payment in the event the funds in the Revenue Bond Debt Ser-
vice Account should ever be insufficient as mare fully speci-
fied in paragraph 13 of the authorizing resolution adopted
, 1978, which bond has been issued for the pur-
pose of providing money to finance the cost of improvements
to the City' s Water Utility. Said bonds and the interest
thereon are payable solely and exclusively from the Net
Revenues of the Water Utili.ty of the City pledged to the
payment thereof, and do not constitute a debt of the City
or of the Saint Paul Board of Water Commissioners within
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the meaning of any constitutional, charter or statutory limita-
tion of indebtedness. Tn the event of any default hereunder,
the holder a� this bond may exercise any of the rights and
privileges granted by the laws of the State of P�innesota sub-
ject to the provisions o� the authorizing resolution of the
City. The bonds of this issue, together with $1,180,000 Water
Revenue Bonds o� 1977, Series 1 are a first and prior lien upon
the Net Revenues of the Water Utility of the City, except that
the City is authorized under certain conditions to issue addi-
tional revenue obligations on a parity of lien with these bonds,
all as provided in the resolution authorizing the bonds of this
issue.
The holders of 200 or more in aggregate principal
amount of bonds at any time outstanding may, either by law
or in equity, by suit, action, or other proceedings, protect
and en�orce the rights of a11 holders of bonds then outstand-
ing, or enforce and compel the performance of any and aZl of
the covenants and duties specified in the authorizing reso-
lution of the City to be performed by the City or the Board
of Water Commissioners or their officers and agents; pro-
vided, however, that nothing shall affect or impair the
right of any bondholder to enforce the payment of the prin-
cipal of and interest on any bond at and after the maturity
thereof, or the obligation of the City to pay the principal
of and interest on each of the bonds issued to the respec-
tive holders thereof at the time and place, from the source
and in the manner provided in said bonds and the appurtenant
coupons.
IT IS HEREBY CERTTFIED AND RECTTED that all acts,
conditions and things required by the Constitution and Iaws
of the State of Minnesota and the Charter of the City of
Saint Paul to be done, to exist, or to be performed prece-
dent to and in the issuance of this bond, have been done, have
happened, and have been performed in due form and manner as
required by law; that the issuance of this bond does not
cause the indebtedness of the City to exceed any constitu-
tional, charter or statutory limitation of indebtedness;
that the City will establish rates and charges for the water
service furnished by said Water Utility sufficient in amount
to promptly meet the principal and interest requirements
of this issue.
IN WITNESS WHEREOF, the said City of Saint Paul,
Ramsey County, Minnesota, by its Council has caused this
bond to be sealed by the facsimile of its Official Seal,
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8. The bonds shal� be sealed by the facsimile of
the Official Seal of the City of Saint Paul and signed by the
facsimile signature of �ts Mayor, attested by the facsimile
signature of its City Clerk, and cauntersigned by the
manual signature of its Director of Finance and Management
Services; and the interest coupons thereto attached shall
be executed by the facsimile signatures of said officers.
When so prepared and executed, the Director of Finance and
Management S�rvices shall cause the bonds to be delivered
ta the purchaser thereof, upon payment of the agreed
purchase price, and the purchaser shall not be obligated
to see to the use and agplication thereof, but such
proceeds shall be used and applied only as herein provided.
9. For the convenience and proper administration
of the proceeds from the sale of the bonds herein authorized
and for the payment of principal of and interest on said bonds,
the Board of Water Commissioners Water Utility Fund (here-
ina�ter referred to as the "Water Utility Fund") heretofore
created sha11 continue in force and effect as a separate fund
of the City and of the Board of Wa�er Commissioners until
all of the bonds herein authorized are fu1Zy paid and re-
tired. In said Fund, there are and there shall continue
to be the following accounts :
(a) A "Capital Aacount" into which there
shall be paid the proc�eds from the sale of the
bonds herein authorized, less any premium and
accrued interest (if any) paid by the purchaser
upon delivery and the amount (if any) capital-
ized for the "Reserve Account" herein estab-
lished. From the Capital Account sha11 be
paid all costs of the improvements to be �
financed by the bonds herein authorized, in-
cluding legal, engineering, financing and
other such expenses incidental thereto. Any
balance remaining in the said account after
the payment of such costs shall be trans-
ferred to the Revenue Bond Debt Service
Account herein established.
(b) An "Operation and Maintenance Aceount"
into which sha11 be paid all gross revenues
and earnings derived from the operation of the
Water Utility system including any assessments
which may from time to time be levied in re-
spect of the Water Utility. From this account
there shall be paid a11, but only, current
expenses of said system. Current expenses
shall include the reasonable and necessary
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to be Si�ned by the �a�s�m��e si�nature o� its MaXor,
attested by the �acsimile signatuxe p� �ts CitX Clexk,
and counters�gned by the manual signatuxe o� its D�xector
of ��nance and Management Servxces, and ea�h o� the interest
coupons hereto �ttached to be executed by the �acsimile signa-
tures o� sa�d o��icexs, as o� the f�rst day of July, 1978.
(facsim'ile) George Latimer
1Kayor
(SEAL)
Attest: (facsimile) Rose Mix
Ci.ty Clerk
Countersigned:
Director of Finance and
Management Services
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(�orn} c�� Coupqn)
No. . . , $ .
On the ��.rst day o� Decenlber (June) , 1978, the
City o� Sa�,nt Paul, Ranlsey Cpunty, Minnesot�, wi�.l �a� to
bearer out o� the Revenue Bond Debt Service Account of the
Board o� Water Comnti,ssioners Water Utili.tX Fund at The
Fizst National Bank of Sa�,nt Paul, St. Pau7., Minnesota or
at The Chase Manhattan Bank, N.A. , New York, New York or
at the o�fi.ce o� any duly appoa.nted successor paying agent,
at th,e option of the holdex the sum shown hereon for interest
then due on its Water Revenue Bond of 1978, Ser�.es 1, dated
July 1, 1978, No. .
(Facsimile) George Latimer
Mayor
Attest: (Facsimi.le) Rose Mix
City Clerk
Countersigned: (Facsimile) Bernard J. Carlson
Di,rector of Finance and
Management Services
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cost� a� ad.min��terin�, ..o��ratin�, �ainta�n�n�
and insuring th� syStem, :salar�e�, WageS, costS
of matex�als and sup�l�es, .costs o� w�tez �zo-
duct�on and d�str�bution, necessax� lega�, en�
gineer�ng dnd aud�t�n� serv�ces, and all other
items wh�ch, by sound account�ng pzact�ces con-
stitute normal, xeasonable and current costs
o� operation and ma�ntenance, but excluding
any allowance for depreciation, extraordinary
repa�rs and payments into the Revenue Bond
Debt Service Account and the Reserve Account.
There shall at a11 t�mes be maintained in said
account a reserve in an amount sufficient to
cover the operation and maintenance costs of
the Water Utility system for the ensuing fif-
teen day period. The balance from time to time
remaining in the Operation and Maintenance
Account, including interest or other earnings
received from the investment o� any moneys
in the Water Util�ty Fund, after paying or
providing �or the foregoing items sha11 con- �
stitute and are referred to in this resolution
as "Net Revenues. "
(c) A "Revenue Bond Debt Service Account"
into which there sha11 be credited and to which
there is hereby irrevocably pledged from the
Net Revenues o� the operation of the Water
Utility system monthly coznmencing July l, 1978
a sum equal to at least 1/12 of the total
principal and interest on the bonds herein
authorized and any other bonds issued on a
pari.ty therewith dux�.ng the ensuing 12
months provided, however, that no further
payments need be made to said account
when the moneys held therein are sufficient
for the payment of all principal and interest
due on said bonds on and prior to the next
maturity date. In addition there shall be
credited to said Revenue Bond Debt Service
Account the accrued interest and premium
(if any) paid by the purchaser of said
bonds upon delivery thereof. No money
shall be paid out of said account except
to pay principal, premium, if any, and
interest on the bonds issued hereunder and
any other bonds which are issued on a parity
with said bonds.
(d) A "Reserve Account" which is hereby
created to be used only when and if moneys in
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the Revenue Bond Debt SeXy�ce �ccount or other
moneXs aya��able thexe�ox are insu��icient
to paX �r�nc��al, prem�um, i� anX, and interest
on the bonds �a.Xab�e �rom the �eVenue Bond Debt
Sezvice Account; proyided, however, that the
maneys in the Resexve �ccount may be used to
prepay said bonds, when such prepayment wi�1
retire all of the bonds then outstandzng.
There is hezeby credited from the proceeds of the
bonds herein authorxzed to this Reserve Account
the sum of $405, 000 and there is hereby trans-
ferred fram the "Revenue Bond Reserve Account"
established pursuant to resolution No. 2638
adopted by the Board of Water Commissioners on
February 23, 1977 the sum of $174,000 as
authorized by paragraph 5. of sa�d resolution
2638. Whenever the moneys in the Reserve
Account exceed an amount equal to the maximum
annual pr�ncipal and interest coming due there-
after on a11 outstanding revenue obligations ;.
payable from the Net Revenues of the Water
Utility Fund such excess may be trans�erred
to the Revenue Bond Debt Service Account, and
whenever the moneys in said Reserve Account
shall be less than said amount the Reserve
Account shall be restored to said amount from
the next ava�lable Net Revenues.
(e) Net Revenues in excess of those re-
quired �or the foregoing purposes may be used
for any proper purpose.
(f) The money �n the Water Utility Fund
shall be allotted and pa�d to the various
accounts hexein established in the order in
which said accounts are listed on a cumulative
basis, a�nd if in any month the money in said
accounts is insufficient to place the required
amount in any accounts, the deficiency shall
be made up in the following month or months
after payment into all other accounts having
a prior claim on said Net Revenues have been
made in full.
(g) Al1 money held in the Revenue Bond
Debt Serv�ce Account and the Reserve Account
created by th�s resolution sha11 be kept
separate and apart �rom all other municipal
funds and accounts.
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10. The revenue bonds issued hereunder shall be a
first charge and lien upon the Net Revenues of the
Water Utility and no part of such Net Revenues shall
ever be pledged to the paXment of any general obligation
bonds issued by the City while any bonds of this issue
or bonds issued on a parity therewith remain outstanding
and undi,scharged. No additional revenue obligations
payable from the Revenue Bond Debt Service Account
shall be hereafter issued unless the same are expressly
made a second and subsequent lien upon the Net Revenues
of the Water Utility, provided however, that addi-
tional obligations may be issued on a parity of lien
with the bonds herein authorized, provided that the
annual Net Revenues o� said Water Utility for each of
the two completed fiscal years immediately preceding the
issuance of such additional obligations sha11 have been
one and one-half times tne maximum annual principal and
interest coming due thereafter on all outstanding
revenue obligations payable from and having parity of
lien upon the Net Revenues of the Water Utility Fund,
including the additional obligations so to be issued;
provided further however that if the annual Net Revenues
in either or both of the aforesaid two_, completed fiscal
years shall be insufficient to meet this test then any
reasonably projected increase in Net Revenues for the
fiscal year imm�diately following such second completed
fiscal year may be added to the Net Revenues for such :
completed fiscal years or either of them (but the total
of such projected increase in Net Revenues may be added
only once) in applying the foregoing test. Such facts
shall be shown by the Certificate of the General
Manager of the Board of Water Commissioners and shall be
a finding of and recited in the resolution of the City
authorizing any such additional series. In addition,
the following conditions shall be met:
(a) The payments required to be made (at
the time of the issuance of such parity lien
bonds) into the various funds and accounts
provided for in this resolution have been
made.
(b) Al1 such parity lien bonds shall
have a December l maturity or maturities
and shall have semiannual interest pay-
ments on June 1 and December 1 in each
year.
-17-
1 t �
(c) The proceeds af such parity lien
bonds sha11 be used only for the purpose of
making improvements, additions, extensions,
renewals o� replacements to the Water Utility,
and capitalizing interest or establ.ishzng ,
Reserves and paying the costs of such fi-
nancing.
11. The City also reserves the right and privilege
of issuing additional revenue bonds if and to the e�tent
needed to refund maturing bonds payable from the moneys in
the Water Utility Fund in case the moneys in the Revenue
Band Debt Service Account, are insufficient to pay the
same at maturity, which refunding revenue bonds may be
on a parity with this issue as to interest payments, but
shall mature subsequent to a11 the revenue obligations
which are payable from the Net Revenues of the Water Utility
Fund and which are still outstanding upon completion of such
refunding.
v�
12. Except as authorized in paragr�iphs 10, 11 and 17
hereaf, the City covenants and agrees that it will issue or
incur no obligations payable from the Net Revenues of all or
a part of said Water Utility or constituting in any manner a
lien thereon, unless such obligations are expressly made
junior and subordinate to the lien and charge of the bonds
herein authorized on said Net Revenues, provided that the
bonds herein authorized, or any part thereof, may be refunded
with the consent of the holders thereof (except as to maturing
bonds in which case such consent shall not be required) and
the refunding bonds issued shall enjoy complete equality of
lien with the portion of the bonds not refunded and any other
then outstanding bonds payable from the Revenue Bond Debt
Service Account, if any there be. The refunding bonds
shall continue to have whatever priority of lien over sub-
sequent issues that the refunded bonds may have had. If only
a portion of the outstanding bonds shall be so refunded and
if such bonds shall be refunded in such manner that
the interest rate of any refunding bond shall be gr�ater
than the interest ra-te of the corresponding refunded �bond,
(or the average net interest rate of the refunding bonds
shall be, or shall be reasonably estimated to be, higher
than the average net interest rate of the refunded bonds)
or that the maturity date of any refunding bond shall be
earlier than the maturity date of the corresponding refunded
bond, (or the average maturity of the refunding bonds shall
be earlier than average maturity of the refunded bonds} then
such bonds may not be refunded without the consent of the
holders of the unrefunded portion of the bonds issued here-
under ancl any other then outstanding bonds payable from the
Revenue Bond Debt Service Account.
--18-
13. In the eyen�k that the T�toneys i.n tk�e Reyenue
Bond Debt Serv�,ce Accouri�, Shal�. be insu���,c�,ent at any par--
ticul.ax time to paX the �x�.nci��l then due a,nd inte�est then
accxued on all bonds �aXable .the�e�xozn, sa�,d moneys shal.l �i,rst
be a�pl�,ed to the paX�rtent �ro xata of the accrued i,nterest on
a11, such bonds, and any ba�.ax�ce shall be appli,ed in payment
pro rata of the �ri,ncipa]. on al,l such bonds; prov�ded �urther
that i� it shal], ever be detexmi,ned by a court of competent
jurisdiction while �ny such bonds remain outstanding that the
sums avazlable and to become available for the payment of the
principal thereof and i.nterest thereon are insufficient whether
or not then due, then the moneys in said Revenue Bond Debt
Service Account sha11 be applied in payment of a11 then out-
standing principal whether or not then due and the interest
accrued thereon to the date o� payment ratably according to
the aggregate amount thexeo� without any preference or priority.
14. The holders of 200 or more in aggregate princi-
pal amount o� bonds issued under this resolution and at any
time outstanding may, either at law or in equity, by suit,
action, or other proceedings, protect and enforce the rights
of all holders of bonds issued hereunder and then outstanding
or enforce or compel the performance of any and a11 of the
covenants and duties specified in this resolution, to be per-
formed by the City or the Board or their officers and agents,
including the fixing and maintaining of rates and charges and
the collection and proper segregation of revenues and the
application and use thexeo�.
15. For the protection of the holders of the bonds
herein author�.zed, the City herein eovenants and agrees to
and wi.th the holdexs thereof from time to time as follows:
(a) Tt wi,l1. at all times through its Board
adec�uately ma�.nta�,n and ef�iciently operate the
Water Utility as a City utility. It will
from time to time make a11 needful and proper
repairs, replacements, additions and better-
ments to the equipment and facilities of said
, yv'ater Utility so that they may at all times
be operated properly and advantageously, and
whenever any equipment of said system shall
have been worn out, destroyed or otherwise be-
come insuf�ica.ent for proper use, it shall be
prompt7.y replaced or arepaired so that the value
and efficiency of the facilities shall be at
a11 times �ully ma�ntained and its revenues
unencumbered by reason thereof.
(b) The ra,tes �or all water service and
the charges for all water supplied by the Water
Utility to the City and its residents and to all
-19-
other consumers shall be reasonable and just,
taking into account the cost and value of
the Water Utility, the cost of maintaining
and operating the Water Utility and the proper
and necessary allowances for depreciation,
the amounts required for the payment of prin-
cipal and interest on the bonds payable from
the Net Revenues of the Water Utility, and alI
other sums customarily paid from the revenues
of the Water Utility.
(c) It will as required by Section
10.11.2 of the City Charter (and it will con-
tinue to do so whether or not required by said
Charter) establish, maintain and collect such
charges and rates as will produce revenues
sufficient to pay the reasonable cost of oper-
ation, repair and maintenance of the Water
Utility and to pay the interest on and prin-
cipal of the bonds herein authorized as and
when they become due as well as to provide ,
sufficient money to make the required appro-
priations to the various funds and accounts
established herein. Tne City will review
the schedule of rates and charges for the
Water Utility at least annually when the
Board budget is reviewed.
(d) The City will not se11, lease,
mortgage, or in any manner dispose of the
Water Utility or any part thereof including
any and all extensions and additions that
may be made thereto until all revenue bonds
payable from the Net Revenues of the Water
Utility or any part thereof have been paid
in full; provided, however, that the City
may sell the Water Utility or any part
thereof if simultar.eously with or prior
to said sale all of the outstanding bonds
are discharged in accordance with paragraph
17 of this resolution. This covenant shall
not be construed to prevent the sale by the
City at fair market value of real estate,
eguipment or other non-revenue-producing
properties which in the judgement of the City
have become unnecessary, uneconomical or in-
expedient to use in connection with the Water
Utility provided that suitable facilities are
obtained in place thereof and provided further
that nothing herein is intended to prevent the
City or the Board from terminating or other-
wise preventing the termination of contracts
for the furnishing of water.
-20-
� t . � �
(e) The City shal�, cause to be ke�t pro�er
book�, record.s, ancl accounts ada�ted to the Wa,ter
Util�,ty separat� �xoz� other �ccounts to b� audited
at the end o� ea;ch �a,scal �ear. A, ca�y o� �aid
aud�,t shall be �'uxnished, without cost, to the
oxi.y�,nal purchasex� of the bonds hexei;n authox-
ized. Z� the C�,t� fa,i,1S to provi,de such aud�,t
W�.thin a xea,sonable tin�e after the end o£ said
f�,sca,l year, the holders o� 20% oz more of the
outstanc�i,ng bonds may cause such aud.it to be
made at the expense of the City. The expense
o� preparing such audit sha11 be paid as cur-
rent operating expenses o� the Water Utility.
The origi.nal purchasers o£ the bonds and the
holders th,ereof, or thea.r duly appointed
representatives, �zozn time ta time sha11 have
the ri.ght at a11 reasonable times, to inspect
the Water Uta.l�ty system and to inspeet and
copy the books, xecords, accounts and data
relating thereto. The City agrees to furnish
cop�.es af such audi.t, without cost, to any
holder or holders of the bonds at their re-
quest within a reasonable time a�ter the end
of each fiscal year.
(f) Tt wi.11 �ai.thfully and punctually per-
form all duties wi,th reference to the Water
Util�.ty requized by the Ca.ty Charter, the Con-
stitution and laws o� the State of Minnesota
and this resolut�,on.
(g) The Ci,ty wi].7. grant no franchise to
any competa.ng uta,lity.
16. No change, a,mendment, modifi.cation or alter-
ati,on sha,ll be made zn the covenants made with holders.
of the bonds authorized by this resolution without the
consent of the holders of not less than 60% in princi-
pal amount of then such outstanding bonds except for
' changes, amendments, modifications and alterations made
(a) to cure any ambiguity or formal defect or omission,
or (b) any other change which would not materially pre-
judice the holders of such outstanding bonds; provided,
however, that nothing herein contained shall �ermit
or be construed as permitting (1) an extention of the
maturity of the principal of or the interest on any such
bonds, or (2) a reduction in the principal amount o� any
such bond or the rate of intezest thereon, or (3) a pri-
vilege or priora.ty of any such bond or bonds over any ather
bond or bonds except as otherwise provided herein, or (4)
-21-
. ,� , �.- .�� � �� _ 2�1�.���
a reducta,on in tk�e a,�gz��at� principal a�ount o� such bonds
rec�u�,red �ar consent a� any�� �hanc�e, a�endz�tent, ;z�odi�icati,on
or alt�ration, or (5) perm�.t .the creation o� anx l�,en �ank�.ng
pxi,ox to or on a �ara..tX wi,th the l�,en o� �uch bonds, exce�t
as hexeinbefoxe expresslX pe�,^m�,tted, ox (.6) znod�,�X anX o�
the �xovisions of th�,s �azagzaph without the consent o� the
holders o� one hundred �exc�nt (1000) o� the pxincipal amount
af such boncls outstanding,
17. When all bonds a.ssued under this resolution,
and a11 eoupons appertaa.ning thereto, have been discharged
as provided i.n this paxagraph, a11 pledges, covenants and
other rights granted by this aresolution to the holders of
the bonds shall cease. The C�.ty may discharge a11 bonds
and coupons which are due on any date by depositing with
the paying agent �or such bonds on or before that date a
sum sufficient for the payment thereof in fu11; or if any
bond or coupon should not be paid when due, it may never-
theless be discharged by depositing wa.th the paying agent a
sum su��icient for the payment thereof in fu11. The City
may also discharge any prepayable bonds which are called
for redemption on any date when they are prepayable accord-
ing to their terms, by depositing with the paying agent on
or before that date an amount equal to the principal, in-
terest and redemption premium, i.f any, which are then due,
provided that notice of such redemption has been duly given
as prova,ded in the resoluta.on author,izing the bonds. The
City may also at any time da.scharge this issue of bonds i.n
its entirety by complying with the applicable provisions of
Minnesota Statutes, Section 475. 67, and any amendments
thereto, except that the funds deposited in escrow in accor-
dance wi.th said provisions may but need not be in whole or
part proceeds of advance re�unding bonds. The City may
da,scharge bonds and coupons as herein provided without the
cansent of any bondholders.
18. As used in this resolution the words "fiscal
year" sha1.1 mean the 12 month period beginning on January 1 �
of each year and ending on December 31 of the same year.
Should it be deemed advisable at some later date to change
its fiscal yearly basis, the same may be done by proper
actions to that effect which change shall not constitute
an amendment or modification at this resolution.
19. If any section, paragraph or provision of
this resolution shall be held to be invalid or unenforce-
able �ox any reason, the invalzdity or unenforceability of
such section, paragx'aph o� provision sha11 not affect any
of the rema�,n,ing provisions of this resolution.
-22-
WHITE — CIT�i CALE9lCy � � ��f_
PINK — FINANCE G I TY �OF SA.I NT �A l.1 L COUI1C11 ���^_�;�
CANARY — DEPARTMENT
BL�E ,�^. MAYOR . F�IE NO. � �
� �
� �� ' Council Resolution � •
Presented By
�
Referred To Committee: Date
Out of Committee By Date
20. The City Clerk is authorized and directed to
prepare and furnish to the original purchasers of said bonds,
and the attorneys approving the same, certified copies of
all ordinances and resolutions of the City relating to the
Water Utility system, and the issuance of the bonds, and
all other proceedings or records showing the right, power
and authority of the City to issue t�ie same and to provide
funds for the payment thereof, and such certified copies
and certificates shall be deemed representations of the
City as to all statements therein.
21. Each and all of the terms and provisions 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.
22. The City Clerk is authorized and directed to
file a certified copy of this resolution and the resolution
accepting the bid on the bonds with the County Auditor of
Ramsey County, and obtain a certificate that the bonds herein
authorized have been duly entered in his Bond Register.
COUNCILME[V Requested by Department of:
Yeas Nays „r
$iJt�@( �
"°�a [n Favor Fi nan and Ma ement Servi ces
Hunt '
Levine � B �
�: p„o,+�4� __ Against
�� .
Tn.�nSCO
�A� � � ���� Form Approved by City Attor�gey
Adopted by Co Date �_ i I� �
�'� i �
Certi P� ss Cou c' r�fary� By '
_ /
._
�
Appr v d y .Vlayoc: Date �� 1 5 19� Appro Mayor for Submissi o Cou cil
By By
PueusHEO MAY 2 G i97�
�.,
� bl� 12/1975
Y. .
,:�. . 8�v.. 9�8/76 :
,
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� � �x�.nruTZOx oF A�ixis�T�v� axn�e�s, '� ���:��� .
; �« _ �soR.v�rio�s, ANn o�ni�xc�s , . ,
. �. ;
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� ��
D�e. May 9, 1978 • ,
t:
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�
MAYO�. GEUR�G� LATII�x �
�,.; ��� "
i�' Beraard J. Cstlson
. '�1, .� � � �� �� . �... . . �.. � , . . . : . . -. . . �i- . . .- .. .
R� P�QPOiBB�? t�1�C�f. RESO�UTIOA PBOitYDII�G FOR TEL I3SIIA�CE [l�iD � ,
�� SALB � WATE� iitf�$ REVBNtJE BOIiDS :'
�
�
�; 'i �
�� I
3�, i
At��t� R&QUESTED• i '
,
.�,.�....�• �
3��� . �
�: Sn�b�itt�d far iuforoztibaal parpoaei�. .
. � I
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"', �� , ; . .
..�. _,. .�..�:�D RA���LE F4x THIS ACTION: �
� �`' The Board of aater Coa�iasioners at a special.retting oa l�lay 2,i 1978,
��,�" ps��d s '�Eeso�ution rec�sestiag that-the�City Coruuil aut�toria� �nd �+�o�r�de
�. �i�� �he ��1�of $2,950,Of�0 Qf WaR�er Wor9� H�+iraaue- Bonds. � _
�
�-. J�me �,3, 1978, fs Che propoaed date of s�rle. The attscbsd �eso�atina �uld ' � '
'''� s��rise the DiM�tor of Ffnance to proceed with tha sale of s#id boads.
�� - :
. . . . . . .. . . . . . j . . i
. it. . . . � . . . . . - . ' . � .. . . . � .. . � � . . '
. �'�. . � � . . . . � ' � � . . . . . . . . . . . . . � . .
. ;����:. � .. " . ' . . . . . .. - ' � . .. � . . � . . . � .
. �µ� � - . . . .. . . . . . . .. .. _ . .� . .
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. .. 1: . . . . . . � - . . . . . .
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.�.. . �a:�. . .�. � � , � � .. � � �. � . ' .. . . � . . �� . � . . .. -. � ' . .
� ; �rrrs: _
�..
�� Copy of,@rcpoaed Councii Beaolutio�. - .
.�.. �':; . ;.;
,�. ;W
,4� _ . . . . � . . � . � . � .. �
,� . . �, . � �. . .. .. . .. . � � . . .�.. ..
' , � .r�j; �. , � .. . � . . . . . .. . � � _ . ... � � � � . . . .
. . .�, . . � .. . . . . . - . . . . � . � . . . . � . .
. .� .'�{a ... � . . - . . . . , � � . . . . .
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�
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�
ST11TE Or A1INNl::�UTA ) CERTIr�C11�E
COUNTY OF RAMSEY ) ss
LITy OF SAINT �'AUL ) •
I
I, the undersiyned, k�eing the c]uly qualified and I
. ac�:ing General Aianayer of the.. noard o� ��'ater CorNnissioners
of the City o:E St. Paul in accordance �•:ith the provisibr�s ef ,
paragra�h 9 of that certain resolu�ion �ahich provided far the �
issuance 3nd sale of $1,180, 000 Z�?ater Revenue nonc]s of 1°77 , I
Series 1 adopted on Fek�ruury 1, 1977 by the City Council of I
�he City of S�. Paul do hereby cer�if}� as .folto�as :
i
1, �111 payments requz�ed to be madA prior -to ;
the date hereof into the various funds and accounts a� the
"jvater Utility Fiind" established pursuant to said resolution
of the City Council of the City of St. Paul adopt�d on
February 1, 1977 �;hich resolution authorized the issuance of
$1,180, 000 t-7ater Revenue Bonds of 1977 , Series 1 have bzen made.
2. The annual net reven=e�hof�th�ecomaletedlfisc�al
of th� Cit}� o� St. Paul for each o_
years immediately preceeding ihe propos��d issuance of the
$2,950, 000 Water Revenue Bonds of 1973 , Series 1 have be�n
one and one-half times the ma�:irnum annual principa]_ and
interest coming due hereafzer on all ciutstandinu re��enue obligations
payable from an3 having a parity of lien unon the net re.�enues
oi the ti;ater Utility Fun3 including �he obligations proP�sed I
to be issued, to wit: �
53, 031,685. 29
Net Revenues 1976 $2� 41gr162.82
Net Revenues 1977
rsaximur.� Annual Princi�al 'n3
� Interest on $1,180, 000 ;:a;-.er 166, 1?0 �OG
Revenue Bonds of 1977 , S�rzes 1 $
I�Iaximum Ar_r_ual Princip�7. a:��
In}erest on $2,950, 000 �•�a�-°r i
Revenue Bonds of 1°.7?, :�zr�es 1 ;
(assur:iing a net ir�e:c'�s� '-"Gt� � ��,c, 2�25 . 00 �
of 4. 50�) �
TOTAL - $ 610r235. 00�
One and One-nual Princip�l��r�d
biaYimum An $ g�•5� 3�2. SO
Interest Pequiremen�s -
r
LAw OP'FIGE
73 I� I G G S A N D M O FL G A N TF.iER W. SIPHINS
OHARI.EF W.HRlOCi5 DOUOLAS L.SRON
J.NHIL MOttTON FROFF,SSIONAL ASSOOIATION MICHAF.L H.JF.BONIMiJS
EIONARD E.AYLF. R.S0077 DAVIES
SAMUP.L A.1dOH(7AN JAMAS N. LITTI.FPISLD
rawxa N.OHAHAM 2.200 F1RST NAT70NAL BANH HUILDINO flavos G.EOA80LM
COLE OF.FILER - .TOHN H.VAN DE HOBTN,JR.
e.�.wvasxcs DAVIS SAINT PAUL� MINNESOTA 55101 gICHARD D. tiOLPEB
FBANH HAMMOND 81GHAHD O• MABH
LEONABD J. 8EYE5 (Q12) 281�1216 Ci1`."BAI.D L.SVOHODA
B C H�,1, ANDHEW G.BECHEB
JOEIN M.SULLIVAN M.T.FeHYANSKE
HEBNAHD P.FEIEL Ma �O �A�� JEPOME A.OEIS
HDBT E.SWANSON y � y DAVID L.MIT02IELL
BONNIE L.HEHE20VS1LY
M.S.pALVIN,J8.
DAVID G.FOESBEBO STEVE A.B&AND
JOHN J•MoNEELY � MABH W M'85T8A
JEFFHEY F. SFIAW
MaNEIL V. SEYMOUE,JH. DeVID O.OEEENINO
EDWAHD G.SiEINOEH DAVID H.SAND
TEEENCB N.DOYLE BE?TY L•AIIM
HICHARD H.HYLE . GHAPLES E.HAYNOB
JONATHAN H•MOPOAN ANDgEA M.HOND
JOHN L.DE�'NEY � MAfiTIN H.FISH
F.L.SOHENSON JOHN BULTENA
PETEB H•SEHD BIGHABD H.MABTIN
PHILIP L.BHIINHE MABY L.IPPEL
SAMIIEL L.FiANSON �- HOSYN L.HANSEN
fiONALD E.OPOHAHD EONALD L.ABPAMS
JOHN fi.HENEFIGH
JOHN 8.FBIEDMAN
ANDHE J.ZDEAZIL �
DAVID J.SPENGEH �
DANIEL.T.COLE�JE.
Mr. Elmer Huset
General Manager
Board of Water Commissioners
Room 216 City Hall
St. Paul, Minnesota 55102
Dear Mr. Huset:
In accordance with the discussion we had today in
going over the Offering Circular, I am enclosing herewith
revised copy of paqe 1 of your Certificate for execution
by you as the General Manager of the Board of �nlater Com-
missioners. The revisions are to the net revenue figures
for 1976 and 1977. I understand that the earlier estimates
were preliminary and not final. It will, of course, be
necessary for the original resolution of the City Council
to be amended to reflect this fact, and I will see to
inserting the necessary amendatory language in the Resolu-
tion Awarding Sale, which will be adopted on June 13.
I am advising Mr. Segal of these changes by
transmitting to him a copy of this letter and a copy of
the revised page l.
Very truly yours,
r..�.,
,�����
y '�` ,i
u: �
Bernard P. Fri �`'� _ ��;.
BPF:paa -� ,, • 3�t r�_ `�: -
� � �_�;;
Enclosure "�C=sr �8 ''�;�
.�`. • `
cc: Jerome Segal ,� '�:�;;�s �';'(�� ;��;
. �i: �y� 7
\4,'%i
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