HomeMy WebLinkAboutOrd 2000 04/29/1967
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AN ORDINANCE authorizing and providing for
the issue of $7?5,OOO Waterworks and Sewerage
Revenue Bonds, Series 1967, of the Village of
Mount Prospect, Cook County, Illinois, for
the purpose of defraying the eost of improving
and extending the combined waterworks and sewer-
age system of said Village by the acquisition
of an existing privately owned water works and
distribution system and an existing privately
owned sanitary sewer system and thereafter im-
proving the same, prescribing all the details
of said bonds, providing for the collection,
segregation and distribution of the revenue of
the combined waterworks and sewerage system of
said Village for the purpose of paying the
cost of the operation and maintenance thereof,
providing an adequate depreciation fund there-
for and paying the principal and interest of
said Waterworks and Sewerage Revenue Bonds,
including those Waterworks and Sewerage Revenue
Bonds heretofore issued and presently outstand-
ing, and providing for the maintenance and
continuation of certain accounts of the Water-
works and Sewerage Fund of the Village.
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WHEREAS the Village of Mount Prospect, Cook County, Illi-
nois, has heretofore by ordinance provided for the combination of
its existing municipally owned waterworks system and its existing
municipally owned sewerage system into a combined waterworks and
sewerage system in accordance with the proviSions presently provi-
ded for by Division 139 of Article 11 of the Illinois Municipal Code,
approved May 29, 1961, and all laws amendatory thereof and supple-
mentary thereto; and
WHEREAS the Village has heretofore entered into contracts
with utility Sewer and Water Company, an Illinois corporation,
which is presently operating a water works and distribution system
and also a sanitary sewer system within certain portions of the
Village and also in unincorporated areas adjacent to the Village and
westerly
situated south/of the corporate limits of the Village and under the
terms of which contracts, it was provided that the said water works
and distribution system and said sanitary sewer system could be
acquired by the Village from said Company; and
WHEREAS it is hereby deemed necessary and for the best
interests of the Village that said existing water works and d1stribu-
tion system and said existing sanitary sewer system, above referred
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to, be acquired by the Village and incorporated into and made a part
of its combined waterworks and sewerage system, and after such pro-
perties have been acquired, that necessary improvements be made to
the said sanitary sewer system by constructing therein a sewage lift
station having a capacity of -5 U U gallons per minute, complete
with all motors, valves, controls and appurtenances incident thereto
in order to improve sewage flow, such existing water works and dis-
tribution system and such existing sanitary sewer system being fur-
ther described as follows:
Existing Water Works and Distribution System
Consisting of cast iron mains and fittings, gate valves,
and valve manholes, hydrant leads and fire hydrants, a
500,000 gallon ground level water storage reservoir, a
booster pumping station, water pumping equipment, con-
sisting of one 500 gallon per minute and one 1000 gallon
per minute pumps complete with all automatic controls ap-
purtenant thereto, water chlorination equipment and water
distribution facilities composed of the following:
6 inch cast iron mains - 4.91 miles
8 inch cast iron mains - 4.29 miles
10 inch cast iron mains - .30 miles
6 inch cast iron gate valves and manholes - 56
8 inch cast iron gate valves and manholes - 31
10 inch cast iron gate valves and manholes - 2
Fire hydrants with valves - 115
Copper water surface pipe and cast iron
and copper corporation cock, diameter
varying from 3/4 inch to 3 inch (and in-
cluding appurtenances) - 5.16 miles,
and including all existing water meters
Existing Sanitary Sewer System
Consisting of:
8 inch diameter vitrified clay pipe - 5.83 miles
10 inch diameter vitrified clay pipe - 1.19 miles
12 inch diameter vitrified clay pipe - 1.48 miles
15 inch and 24 inch diameter vitri-
fied clay pipe - 5.26 miles
48 inch diameter nanholes - 168
which sanitary sewer collecting system is a gravity system
discharging into existing intercepting sewer located in
Busse Road, of the Metropolitan Sanitary District of
Greater Chicago;
and
WHEREAS the total estimated cost of improving and exten-
ding the combined waterworks and sewerage system of said Village by
the acquisition of existing water works and distribution system and
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the existing sanitary sewer system, as hereinabove referred to, and
as prepared by the engineer of said Village employed for such pur-
pose, including the cost of improving the sanitary sewer system so
acquired by constructing a sewage lift statio~and including legal
costs, engineering, administrative costs and bond discount, is the
sum of $725,000; and
WHEREAS the Village of Mount Prospect does not have any
funds on hand and available for the purpose of improving the com-
bined waterworks and sewerage system by the acquisition of the
existing water works and distribution system and the existing sani-
tary sewer system and thereafter improving the same by the construc-
tion of a sewage lift station, all as above referred to, and for
such purpose it will be necessary for the Village to borrow the sum
of $725,000 and in evidence thereof issue its Revenue Bonds in the
principal amount of $725,000 for the purpose of paying the cost of
so improving the combined waterworks and sewerage system of said
Village; and
WHEREAS, pursuant to Ordinance No. 907, heretofore adopted
on May 14, 1963, the Village of Mount Prospect has heretofore, in
manner and form prescribed by law, issued, sold and there are now
outstanding Waterworks and Sewerage Revenue Bonds of said Village
in the aggregate amount of $1,325,000 , which said bonds by their
terms are payable, both as to principal and interest, solely and
only from the revenues to be derived from the operation of the com-
bined waterworks and sewerage system of said Village, such bonds so
authorized by said ordinance and presently outstanding and unpaid
being described as follows:
$1,325,000 Waterworks and Sewerage Revenue Bonds, dated
May 1, 1963, of the denomination of $1,000 each, num-
bered consecutively from 126 to 1450, inclusive, due $45,000
on May 1, 1967 anon May 1, 1968, $50,000 on May 1 of
each of the years 1969 to 1971, inclusive, $55,000 on
May 1 of each of the years 1972 and 1973, $60,000 on
May 1 of each of the years 1974 to 1976, inclusive
$65,000 on May 1 of each of the years 1977 and 1978,
$70,000 on May 1 of each of the years 1979 and 1980
and $75,000 on May 1 of each of the years 1981 to 1987,
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inclusive, bonds maturing on and after May 1, 1975
being redeemable from revenues only on any interest pay-
ment date on or after May 1, 1974, and from any monies
on any date on and after May 1, 1978, said bonds bear-
ing interest at varying rates and said bonds being all
the bonds now outstanding of a total authorized issue
of $1,450,000 Waterworks and Sewerage Revenue Bonds,
Series 1963, of said Village; and
WHEREAS, under the terms of said Ordinance No. 907, above
referred to and adopted on May 14, 1963 and authorizing the issuance
of said Waterworks and Sewerage Revenue Bonds above referred to and
which are now outstanding, it was provided that additional Water-
works and Sewerage Revenue Bonds of said Village could be issued on
a parity with the bonds therein authorized for certain purposes,
including the acquisition of additional waterworks or sewerage sys-
tems, or any combination thereof, or for the purpose of constructing
improvements of the system of the Village, provided that the amounts
required to be credited to the respective accounts (a) to (d), in-
clusive, of Section 9 of said ordinance, up to the date of the
authorization of such additional bonds, shall have been credited to
said respective accounts and the net revenues of the system for the
fiscal year then next preceding have been equal to not less than
one hundred thirty-five per cent (135%) of the maximum combined
principal and interest requirements for any succeeding fiscal year
during the life of the then outstanding bonds of (i) all bonds then
outstanding payable from the revenues to be derived from the opera-
tion of the system and (ii) on the additional revenue bonds then
proposed to be issued; and
WHEREAS the President and Board of Trustees of this Village
have caused to be prepared and have examined an audit of the earnings
of the combined system for the last preceding fiscal year ending on
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April 30 , 19~, and do hereby find and determine that the
earnings of said combined system for the last preceding fiscal year
were sufficient to comply with the restrictive covenants contained
in said ordinance adopted on May 14, 1963, restricting the right to
issue additional bonds on a parity with the bonds therein authorized
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and that the President and Board of Trustees of said Village have
the authority at this time to issue the additional Waterworks and
Sewerage Revenue Bonds in the aggregate principal amount of $725,000
and as hereinafter provided for by the provisions of this ordinance,
which said additional Waterworks and Sewerage Revenue Bonds, when
issued, shall be on a parity with and share ratably and equally in
the revenues to be derived from the operation of said combined water-
works and sewerage system with the Waterworks and Sewerage Revenue
Bonds hereinabove referred to and described and which are now out-
standing; and
WHEREAS it is hereby found to be necessary and for the best
interests of the Village and the public health of the inhabitants of
said Village, that the combined waterworks and sewerage system be
improved by the acquisition of the existing water works and distri-
bution system and the existing sanitary sewer system and the con-
struction of the sewage lift station as an improvement thereto, all
as hereinabove referred to and described, and in order to raise the
funds required for such purposes, it is necessary that the Village
borrow the sum of $725,000 and in evidence thereof issue additional
Waterworks and Sewerage Revenue Bonds in that amount, such additional
Waterworks and Sewerage Revenue Bonds to be on a parity with and to
share ratably and equally in the revenues of the combined waterworks
and sewerage system of the Village with the Waterworks and Sewerage
Revenue Bonds now outstanding and referred to and described herein-
above and as were authorized by said Ordinance No. 907 adopted on
May 14, 1963; and
WHEREAS, pursuant to the provisions of Division 139 of
Article 11 of the Illinois Municipal Code, approved May 29, 1961,
and all laws amendatory thereof and supplementary thereto, this
Village is authorized to issue Waterworks and Sewerage Revenue Bonds
in a amount sufficient to pay the cost of so improving and extending
the combined waterworks and sewerage system and in the manner herein-
above referred to:
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NOW, THEREFORE~ Be It Ordained by the President and Board
of Trustees of the Village of Mount Prospect, Cook County, Illinois
as follows:
Section 1.
That said Village of Mount Prospect has
caused an estimate to be made of the cost of improving and extending
its combined waterworks and sewerage system by acquiring the existing
water works and distribution system and the existing sanitary sewer
system owned and operated by the Utility Sewer and Water Company,
an Illinois corporation, and upon acquisition to make certain improve-
ments to said sanitary sewer system, all as described in the preambles
of this ordinance, and all in accordance with the plans and report
of the engineers ~r said Village heretofore approved by the President
and Board of Trustees and now on file with the Village Clerk for
public inspection, and does hereby determine that the estimated total
cost thereof, including all legal, engineering, administrative costs
and bond discount, is the sum of $725,000.
Section 2.
That the President and Board of Trustees
do hereby determine that it is in the best interests of the Village
of Mount Prospect that the aforementioned improvements and extensions
be made to the combined waterworks and sewerage system by the acqui-
sition of the aforementioned water works and distribution system and
sanitary sewer system, together with said improvements to be made to
the sanitary sewer system being acquired, and that thereafter said
system and the existing systems of the Village of Mount Prospect be
operated as a combined waterworks and sewerage system, and hereby do
determine the period of usefulness of said combined waterworks and
sewerage system, including the proposed improvements and extensions
to be made thereto, to be forty (40) years.
Section 3.
That the Village of Mount Prospect does not
have sufficient funds available for the purpose of so improving and
extending its combined waterworks and sewerage system by the acqui-
sition of the existing water works and distribution system and the
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existing sanitary sewer system and thereafter improving the sanitary
sewer system to be so acquired by constructing a sewage lift station
therein, all as referred to and described in the preambles hereof
and, for that purpose, it will require the issue by said Village of
Waterworks and Sewerage Revenue Bonds to the amount of $725,000, such
bonds to be payable solely and only from the revenues to be derived
from the operation of the combined waterworks and sewerage system of
said Village and which said bonds are authorized to be issued under
the provisions of Division 139 of Article 11 of the Illinois Munici-
pal Code, approved May 29, 1961, and all laws thereunto enabling.
Said bonds shall be designated "Waterworks and Sewerage
Revenue Bonds, Series 1967", shall be in the principal amount of
$725,000, in the form of negotiable coupon bonds, dated May 1, 1967,
numbered 1 and upwards in consecutive order ending with number 145,
to
of $5,000 denomination, and shall be expressed/mature on May 1st in
each of the years and amounts as follows:
1970
1971
1972
1973
1974
1975
1976
1977
1978
$25,000
25,000
25,000
25,000
30,000
30,000
35,000
35,000
40,000
1979
1980
1981
1982
1983
1984
1985
1986
1987
$40,000
45,000
45,000
50,000
50,000
50,000
55,000
60,000
60,000
Section i. (A) Said bonds shall bear interest from date
thereof until paid at such rate or rates, not exceeding Five Per
Cent (5%) per annum, as shall be specified in the resolution provi-
ding for the delivery of said bonds as hereinafter provided, and
both the principal of and interest on said bonds shall be payable
in lawful money of the United States of America at such bank or
trust company as shall be mutually agreeable to the Village and the
purchaser of said bonds and as shall be specified in the resolution
to be adopted providing for the delivery of the bonds.
(B) The interest on said bonds falling due on and prior
to the maturity of said bonds shall be evidenced by appropriate in-
terest coupons to be attached to said bonds, and such interest shall
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be payable November 1, 1967 and semiannually thereafter on May 1
and November 1 of each year until paid.
(C) Said bonds shall be signed by the President and attes-
ted by the Village Clerk, with the seal of said Village affixed, and
the interest coupons attached to said bonds evidencing the rate or
rates of interest said bonds will bear shall be executed by the
facsimile signatures of said President and said Village Clerk, and
said officials by the execution of said bonds shall adopt as and for
their own proper signatures their respective facsimile signatures
appearing on said coupons.
(n) Said bonds, together with interest thereon, shall be
payable solely from the revenues derived from the combined water-
works and sewerage system of said Village in the manner hereinafter
described, and such bonds shall not in any event constitute an in-
debtedness of said Village within the meaning of any constitutional
or statutory limitation and shall be coequal as to the pledge of
said revenues securing the payment thereof and share ratably and
equally without any preference, priority or distinction of one over
another as to the source or method of payment and security of said
bonds.
Sectio~ 5. Any of said bonds may be registered as to
principal at any time, prior to maturity, in the name of the holder
on the books of said Village in the office of the Village Treasurer,
such registration to be noted on the back of the bonds by the said
Treasurer of said Village, and thereafter the principal of such
registered bonds shall be payable only to the registered holder,
his legal representatives or assigns. Such registered bonds shall
be transferable to another registered holder or back to bearer only
upon presentation to the Treasurer, with a legal assignment duly
acknowledged or approved. Registration of any such bonds shall not
affect negotiability of the coupons thereto attached, but such cou-
pons shall be transferable by delivery merely.
Section 6. That the form of said bonds shall be sub-
stantially as follows with appropriate omissions and insertions to
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give effect to differences of maturity dates, rates of interest,
name of paying agent, number and recitals:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF COOK
VILIAGE OF MOUNT PROSPECT
WATERWORKS AND SEWERAGE REVENUE BOND,
SERIES 1967
Number $5,000
KNOW ALL MEN BY THESE PRESENTS, that the Village of Mount
Prospect, Cook County, Illinois, for value received, hereby promises
to pay to bearer, or if this bond be registered, as hereinafter pro-
vided, then to the registered holder hereof, solely from the Water-
works and Sewerage Fund of the Village of Mount Prospect, as herein-
after mentioned and not otherwise, the sum of Five Thousand Dollars
($5,000) on May 1, 19___, together with interest on said sum from
date hereof until paid at the rate of
per cent (. %) per annum, payable November 1, 1967, and semi-
annually thereafter on the first days of May and November in each
year and until the maturity hereof upon presentation and surrender
of the annexed interest coupons as they severally become due.
Both principal of and interest on this bond are hereby
made payable in lawful money of the United States of America at
.
This bond is one of an authorized issue of $725,000 in
principal amount, issued to provide funds for paying the cost of
improving and extending the combined waterworks and sewerage system
of said Village by the acquisition of an existing water works and
distribution system and an existing sanitary sewer system presently
being operated in the southwesterly portion of said Village and in
unincorporated territory situated southwesterly of the corporate
limits of said Village and improving the sanitary sewer system so
acquired by constructing therein a sewage lift station, all as pro-
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vided by the Constitution and laws of the State of Illinois, inclu-
ding Division 139 of Article 11 of the Illinois Municipal Code, ap-
proved May 29, 1961, and all other laws amendatory thereof or sup-
plementary thereto, all as more fully described in that certain
Ordinance adopted by the Board of Trustees of the Village of Mount
Prospect on the ;) 9 day of A P J2... J L
, 1967, authorizing the
issuance of said bonds and this bond and the issue of which it forms
a part, does not constitute an indebtedness of said Village within
any constitutional or statutory limitation.
This bond and all other bonds of said total authorized
issue of $725,000 are payable solely as to principal and interest
from the revenues to be derived by said Village from the operation
of said combined waterworks and sewerage system of said Village and
are coequal as to the pledge of said revenues securing the payment
thereof and share ratably and equally without any preference,
priority or distinction of one over another, as to the source or
method of payment and security of said bonds, and for a more complete
statement of the revenues from which and conditions under which this
bond and interest hereon are payable and a statement of the condi-
tions on which obligations may hereafter be issued on a parity here-
with and the general covenants and provisions pursuant to which this
bond is issued, reference is hereby made to said Ordinance adopted
APRIL ?-q
, 1967.
Under said Code and Ordinance adopted pursuant thereto,
the revenues from the operation of the combined waterworks and
sewerage system shall be deposited in a separate fund designated
as the "Waterworks and Sewerage Fund of the Village of Mount Pros-
pectll, which shall be used only in paying the cost of operation and
maintenance of such combined system, providing an adequate deprecia-
tion allowance, and paying the principal of and interest on the
bonds of said Village that are issued under authority of said Code
and are payable by their terms only from the revenue of the combined
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waterworks and sewerage system and making all payments required to
maintain the accounts as referred to and described in the provisions
of the Ordinance pursuant to which this bond is issued.
It is hereby certified and recited that all acts, conditions
and things required to be done precedent to and in the issuance of
this bond have been done and have happened and have been performed in
regular and due form of law, and that provision has been made for
depositing in said Waterworks and Sewerage Fund the revenues received
from the operation of said combined waterworks and sewerage system
to be applied in the manner as hereinabove set forth; and it is hereby
covenanted and agreed that rates will be charged for the use and servic
of such combined waterworks and sewerage system sufficient at all times
to pay the cost of operation and maintenance of said system, provide
an adequate depreciation allowance, and pay the principal of and in-
terest upon all bonds issued by said Village, which are payable
solely from the revenues of said combined system, and to make all
payments required to maintain the accounts referred to and described
in the provisions of the Ordinance pursuant to which this bond and
the~ries of which it forms a part is issued.
This bond may be registered as to principal in the name of
the holder on the books of said Village in the office of the Treasurer
of said Vil1age,such registration to be evidenced by notation of mid
Treasurer upon the back thereof, after which no transfer hereof shall
be valid unless made on said books and similarly noted hereon, but it
may be discharged from such registration by being transferred to
bearer, after which it shall be transferable by delivery, but it may
be again registered as before. The registration of this bond shall
not restrict the negotiability of the coupons by delivery merely.
IN WITNESS WHEREOF, said Village of Mount Prospect, Cook
County~Illinois, by its President and Board of Trustees, has caused
its corporate seal to be hereunto affixed and this bond to be signed
by its President, and attested by the Village Clerk, and the coupons
hereto attached to be signed by the facsimile signatures of said
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President and said Village Clerk, which officials, by the execution
of this bond do adopt as and for their own proper signatures their
respective facsimile signatures appearing on said coupons, and this
bond to be dated as of the first day of May, 1967.
President, Village of Mount
Prospect, Cook County, Illinois
Attest:
Village Clerk
(Form of Coupon)
Number
$
On the first day of
, 19___, the Village
of Mount Prospect, Cook County, Illinois will pay to bearer out of
the Waterworks and Sewerage Fund of said Village
Dollars ($
) in lawful money of
the United States of America at
, being interest then due on its
Waterworks and Sewerage Revenue Bond, Series 1967, dated May 1,
1967, number
.
President, Village of Mount
Prospect, Cook County, Illinois
Village Clerk
(Form of Registration Certificate)
Date
In Whose Name Registered
Village Treasurer
Section 7.
For the purpose of this Ordinance, the
following words, terms and phrases shall have the following meanings:
(A) Village of Mount Prospect is hereinafter designated
the "Village".
(B) The governing body of said Village is hereinafter
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designated the "President and Board of Trustees".
(C) The word "system" shall include all of the properties
and facilities of the combined waterworks and sewerage system of
said Village presently existing and now being acquired whether lying
within or without the boundaries of said Village, as now existing
or under construction and as they may hereafter be improved or ex-
tended while any of the bonds heretofore issued and now outstanding
or any of the bonds herein authorized or additional bonds herein
permitted to be issued on a parity therewith remain outstanding;
including all improvements, additions and extensions thereto or re-
placements thereof hereafter constructed or acquired by purchase,
contract or otherwise; and all contracts, rights, agreements, leases
and franchises of every nature owned by said Village and used or
useful or held for use in the operation of the system or any part
or portion thereof.
(D) The word "revenuesll shall mean gross revenues and
shall include all receipts received directly or indirectly from the
initial and continued use and operation of the system.
(E) The term "net revenues" shall mean that portion of
the revenues received from the continued use and operation of the
system remaining after providing sufficient funds for the reasonable
and necessary cost of maintenance and operation of the system as de-
fined in Section 7(F) hereof, and prior to any provisions for depre-
ciation or payment of principal or interest.
(F) The phrase IIcost of naintenance and operationll shall
mean all costs reasonably incurred in connection with continued
operation, use and maintenance of the system, other than capital
improvements, necessary to keep the system in efficient and economi-
cal operating condition, including the payment of premiums for in-
surance hereinafter required to be carried on the system and gener-
ally all expenses (exclusive of depreciation) which under good
accounting practice are properly chargeable to and are reasonable
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and necessary to the efficient maintenance and operation of the
system, and shall not include any transfer in lieu of taxes or
general supervision or administration charges by the Village.
(G) The term "fiscal year" shall mean the period com-
mencing May 1 and ending the last day of April of each succeeding
calendar year and said system shall be operated, and all revenues
shall be accounted for, on said fiscal year basis.
(H) The word "bonds" shall mean and include all the bonds
heretofore issued under the provisions of Ordinance No. 907, adop-
ted on May 14, 1963 which may be outstanding and unpaid and shall
mean and include each of the bonds in the principal amount of $725,000
authorized under the terms of this Ordinance.
(I) The phrase "parity bonds" shall mean such bonds as
may hereafter be issued on a parity with the $725,000 principal
amount of bonds herein authorized and as such bonds may hereafter
be issued under the provisions of Section 10 of this Ordinance.
(J) The words "connection charge" shall mean any fee paid
for connecting users of the combined waterworks and sewerage system
to said system.
Sectio~ ~. That the net revenues of the combined water-
works and sewerage system are hereby pledged to the payment of the
principal of and the interest on the bonds and the parity bonds,
and the bonds and the parity bonds shall be secured by a prior and
paramount pledge of the net revenues. All of the bonds and parity
bonds shall be equally and ratably secured by said pledge without
priority of one over the other by reason of date of sale or delivery
or Series designation or purpose or otherwise.
Section 9. So long as any of the bonds or parity bonds
remain outstanding, all of the revenues shall from day to day as
collected be deposited in a bank account separate and apart from all
other Village bank accounts, and shall thereafter be accounted for
in a separate accounting fund, which shall be known as the "Water-
works and Sewerage Fund of the Village of Mount Prospect" (sometimes
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hereinafter referred to as ,the "Revez:1ue Fund II) . All monies and
investments therein shall be used solely for maintaining the follow-
ing accounts, which accounts were heretofore created and established
by Ordinance No. 907, adopted on May 14,1963, and which ordinance au-
thorized the issuance of the Waterworks and Sewerage Revenue Bonds,
Series 1963, of the Village which are outstanding as of the date of
the passage of this Ordinance, and which said several accounts as
hereinafter referred to and described shall be continuously main-
tained until such time as all the bonds heretofore issued and out-
standing and as herein authorized shall have be~n paid in full, both
principal thereof and interest thereon, or until provision has been
made for the payment th~eof and to which such several acoounts
there shall be credited as of the first business day of each month,
except as otherwise hereinafter provided, all such revenues so de-
posited in said Revenue Fund, in accordance with the folloWing
priority:
(a) There shall be credited to the Operation and Mainten-
ance Account as of the first business day of each
month an amount sufficient to pay the reasonable and
necessary cost of maintenance and operation of said
system under economical management for the next
succeeding month, including, without limiting the
generality of the foregoing, salaries, wages, costs
of materials, supplies, insurance and power, and in-
cluding one-twelfth of all such expenses paid on an
annualized basis.
(b) Beginning May 1, 1967, there shall be credited each
month to the Bond and Interest Account an amount
equal to not less than one-fifth of the interest
becoming due on all bonds and parity bonds on the
next succeeding interest ~yment date; and an
amount equal to not less than one-tenth of the
principal becoming due on the next succeeding
May 1 of all bonds and parity bonds, until there
shall have been accumulQted in said Account on or
before thirty days preceding each such current
maturity date of principal or interest, or both,
an amount sufficient to pay such principal or in-
terest, or both, of all bonds and parity bonds
maturing by their terms on such current maturity
date.
From and after the issuance of any of the bonds hereby
authorized, and upon receipt of the purchase price therefor, there
shall be credited to the Bond and Interest Account all accrued
interest derived from the sale of mid bonds.
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All moneys in said Account shall be used only for the pur-
pose of paying interest on and principal of the bonds and parity
bonds of said Village. Funds sufficient to pay interest or principal,
or both, of said bonds, together with fiscal agency fees, shall be
trans~tted to the paying agent not less than fifteen days prior to
each current maturity date of either principal or interest, or both,
provided that all fiscal agency fees shall be paid from the Operation
and Maintenance Account.
(c) Beginning May 1, 1967, there shall be credited to
the Bond Reserve Account in equal monthly install-
ments the annual sum of $18,000 in each fiscal year,
while any of the bonds or parity bonds are outstand-
ing, such amount to be inclusive of and $6,000 in
addition to the annual amount required to be credi-
ted to said Account under the provisions of Ordi-
nance No.9D7, adopted May 14, 1963, referred to
hereinabove in the preamble hereof. The moneys
in said Account shall be used only to pay princi-
pal of or interest on the bonds and parity bonds
of said Village when there are insufficient funds
available at any time to pay such principal or
interest from any other source; provided, however,
whenever the balance in said Account equals the
maximum principal and interest requirements on all
bonds and parity bonds for any fiscal year, any
surplus over and above said maximum amount shall
be used for the retirement of the bonds and parity
bonds that are subject to redemption prior to
maturity; provided, if none of said bonds are
subject to redemption prior to maturity or will
not become subject to redemption prior to maturity
within the next sixty (60) days, then the Village
Treasurer shall request tenders for the purchase
of said bonds, if available, in the open market.
The President and Board of Trustees may direct the
acceptance of bonds which, in its opinion, are at
the lowest tendered price to the advantage of the
Village but shall reserve the right to reject any
and all tenders. No tender or purchase at more
than the par value and unpaid accrued interest
on any of said bonds shall be considered. All
such bonds purchased or redeemed shall be cancelled.
(d) Beginning May 1, 1967, there shall be credited to
the Depreciation, Improvement and Extension Account
in equal monthly installments the annual sum of
$18,000 for the fiscal years ending April 30, 1968,
and the annual sum of $24,000 for the fiscal years
ending April 30, 1969 through April 30, 1973, and
the annual sum of $30,000 in each fiscal year there-
after, such amounts being inclusive of the annual
amounts required to be credited to said Account
under the provisions of Ordinance No. 907, adopted
May 14, 1963, referred to hereinabove in the pre-
amble hereof and $6,000 in addition to the annual
amount required for each of the fiscal years
ending April 30, 1968, and subsequent thereto as
therein enumerated. The moneys in said Account
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shall be used first to provide an adequate allowance
for depreciation as shall be determined from time to
time by the President and Board of Trustees, which
allowance shall be used from time to time to pay for
any extraordinary maintenance, repairs and necessary
replacements, or for improvement or extension of the
system. Said funds shall be used at any time to pay
principal of or interest upon any re~enue bonds out-
standing whenever there are no other funds available
to pay the same; provided, however, that from and
after such time as said account aggregates the sum
of $100,000 , any sums in ~xcess thereof may be
transferred to the Bond Reserve Account or to the
Surplus Revenue Account at the discretion of the
President and Board of Trustees.
(e) In the event that in any month, there are insuffi-
cient moneys in the Revenue Eund to make the re-
quired monthly credits to anf of the foregoing
accounts (a), (b), (c) or (d), then the amount of
such deficiency shall be added to the requirements
for the succeeding month and made up in the priority
in which said funds are herein listed.
(f) All revenues deposited in the Waterworks and Sewer-
age Fund bank account after crediting the required
amounts to the respective accounts herein provided
for, shall, at the end of each fiscal year, be
credited to the Surplus Revenue Account and the
amount so credited shall be held and used for the
purposes and in the priority hereinafter mentioned,
to-wit:
(1)
For making up any deficiency necessary to
credit accounts (a) to (d), inclusive, with
the required amounts therefor for each fis-
cal year as hereinabove provided.
If, after complfing with the requirements of
subparagraph (1) hereof, there remains a
balance in the Surplus Revenue Account, it
may be transferred out of said account at
the discretion of the President and Board
of Trustees and used for any lawful purpose,
including an annual transfer for general
administration of the combined system equal
to 10% of the annual gross revenues, or
such other percentage as may be established
from time to time by the President and Board
of Trustees.
(g) Moneys remaining in any of the Accounts hereinabove
created, may by resolution of the President and Board
of Trustees be invested from time to time but only in
direct obligations of the United States Government,
maturing not later than the earliest date on which
it is estimated the moneys in said Accounts will be
needed, but in no event later than two years from the
date of such investment. Such securities shall be
sold from time to time without further authority of
the President and Board of Trustees as moneys may be
needed for the purpose for which said Accounts have
been created. All accrued interest on any moneys so
(2)
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invested, or any gain or loss on any such invest-
ment, shall be credited to the Account for which
the investment was made. All uninvested money on
hand shall be deposited in banks selected as de-
positaries by the President and Board of Trustees
from time to time so as to be available when needed.
Such bank accounts ~l be separate from all other
Village Accounts provided that all money in the
Wa terworks and Sewerage Fund may be depos i ted in
a single bank account, except money in Accounts
(b) and (c) thereof, which shall be deposited in
one or more separate bank accounts.
Section 10.
It is hereby covenanted and agreed that
while any of the bonds issued hereunder are outstanding, the Village
will not issue any other bonds or obligations of any kind or nature
having a pledge on the revenues of the system which is prior to the
lien on such revenues of the bonds herein authorized.
(A) Said Village reserves the right to issue at one time,
or from time to time, as shall be found necessary and for the best
interest of said Village by the President and Board of Trustees,
additional bonds on a parity with the bonds authorized hereunder for
the purpose of constructing improvements, replacements and extensions
of the system of the Village, or for the acquisition of additional
waterworks or sewerage systems or any combination thereof or for the
purpose of refunding any of the Waterworks and Sewerage Re~enue Bonds
of the Village, or for any combination of such purposes, but only
provided the Village shall have complied with the following require-
ments:
(a)
(b)
The amounts required to have been credited to the
respective Accounts (a) to (d), inclusive, of
Section 9 of this Ordinance up to the date of
authorization of said additional bonds shall have
been credited to said respective Accounts.
The net revenues of the system for the fiscal year
then next preceding or the average adjusted net
revenues of the system for the two then next pre-
ceding fiscal years, if such revenues are adjusted
as herein provided, have been equal to not less
than one hundred thirty-five per cent (135%) of
the maximum combined principal and interest re-
quirements for any succeeding fiscal year during
the life of the then outstanding bonds, of (i)
all bonds then outstanding payable from the
revenues to be derived from the operation of the
system and (ii) on the additional revenue bonds
then proposed to be issued. Net revenues for
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the purpose of this subparagraph (b) shall mean
the gross revenues of the system less the actual
costs of operation and maintenance before making
provision for depreciation or other Accounts as
required by this Ordinance for such fiscal year
or years and shall be evidenced by audit of an
independent certified public accountant. Princi-
pal and interest requirements shall include prin-
cipal and interest due May 1 as a requirement of
the fiscal year ending April 30 immediately pre-
ceding such May 1 maturities.
In the event there shall have been a change
in the rates of the system from the rates in effect
for either of the two immediately preceding fiscal
years, which change is in effect at the time of the
issuance of any such additional bonds, then the net
revenues as provided in this subparagraph (b) shall
be adjusted to reflect the net revenues of the sys-
tem for each of the two immediately preceding fiscal
years as they would have been had said then exis-
ting rates been in effect during all of each of
said years. Any such adjusted net revenues shall
be evidenced by the certificate of an independent
consulting 'engineer employed for that purpose, which
certificate shall be approved by the President and
Board of Trustees prior to issuance of the additional
bond and filed with the Village Clerk upon its
approval.
(B) The Village also reserves the right to issue additional
bonds on a parity with the bonds authorized hereunder for the purpose
of acquiring the sanitary relief sewer system in portions of the
Village of Mount Prospect presently owned and operated by the
Metropolitan Sanitary District of Greater Chicago, and for the pur-
pose of refunding any bonds of said District which may be outstanding
and having a lien on the revenues thereof. In the event of the issu-
ance of parity bonds for such purpose or purposes, the Village shall
employ an independent consulting engineer to examine the reports of
operation of such sanitary relief sewer system for each of the two
immediately preceding fiscal years, and such engineer shall report
as to the amount of revenue and expense which would have been
attributable to said system for each of said fiscal years had said
system been owned and operated by the Village of Mount Prospect, and
should the Village then establish new rates for such sewer service,
the actual revenues shall be adjusted for such purposes to reflect
the revenues of the system as they would have been had such rates
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been in effect for all of each of said fiscal years. Said adjusted
net revenues shall be added to the net revenues of the existing com-
bined waterworks and sewerage system of the Village of Mount Prospect
for the purpose of making the computations required to be made under
subparagraph (b) of paragraph (A) of this Section, and any such addi-
tional bonds to be issued for the purposes outlined in this paragraph
(B) shall be thus subject to the restrictions of the aforementioned
subparagraph (b) of paragraph (A).
(C) Notwithstanding the foregoing provisions the Village
reserves the further right to issue bonds to refund any of these
bonds or bonds on a parity therewith provided they are issued to
refund bonds due within three months of the date of refunding and
for the payment of which no other funds are or will be available at
the maturity thereof.
(D) Any additional bonds issued as parity bonds shall be
on an equal basis in all respects with the bonds herein authorized,
shall share ratably and equally in the revenues of said system, and
shall mature as to principal on May 1, and as to interest on May 1
and November 1.
Section 11. That the Village hereby covenants and agrees
with the holders of said bonds and coupons hereby authorized that so
long as the bonds or any of them remain outstanding and unpaid, either
as to principal or interest, that rates charged for the use and servi-
ces of the system shall be sufficient at all times to pay all costs
of operation and maintenance, to provide and maintain the Accounts
hereinabove referred to and described in Section 9 of this Ordinance,
to pay the interest on and principal of all bonds which by their
terms are payable from the revenues of said system and have hereto-
fore been issued and are presently outstanding as of the date of
passage of this Ordinance, to pay interest on and principal of all
bonds which by their terms are payable from the revenues of said sys-
tem that are authorized to be issued under the terms of this Ordinance
and including all bonds hereafter issued and on a parity with the
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bonds he~ein authorized, and to carry out the covenants of thi~
Ordinance. There shall be charged against all users of said system,
including the Village, such rates and amounts for water and sewer
services as shall be adequate to meet the requirements of this Ordi-
nance; provided the Village need not charge itself for water and
sewer services so long as the revenues of the system are otherwise
adequate to meet all the requirements of this Ordinance. To the
extent permitted by law said Village further covenants not to grant
any competing franchise for the operation of a waterworks system or
a sanitary sewerage system or any combination thereof in sa~d Village.
Section 12. That the Village hereby covenants and agrees
with the holders of said bonds and coupons hereby authorized that
so long as the bonds or any of them remain outstanding and unpaid,
either as to principal or interest, that any holder of a bond or
bonds issued hereunder, or of any of the coupons representing inter-
est accrued thereon may, either in law or in equity, by suit, action,
mandamus or other proceedings, enforce or compel performance by the
officials of said Village of all duties required by law and by this
Ordinance, including the making and collecting of sufficient rates
for water and sewer services and segregating the revenues of said
wstem and the application thereof to the respective Accounts here-
inabove referred to and described in Section 9 of this Ordinance and
in the time and manner as herein provided.
Section 13. That the Village hereby covenants and agrees
---
with the holders of said bonds and coupons hereby authorized that
so long as the bonds or any of them remain outstanding and unpaid,
either as to principal or interest, to carry insurance on the system
of the kinds and in the amounts which are usually carried by operators
of s1m1lar properties including, without limiting the generaltiy of
the foregoing, fire, windstorm, public liability, and all moneys
received for losses under such insurance policies shall be deposited
in the Revenue Fund and thereafter credited to the Depreciation, Im-
provement and Extension Account and be used in making good the loss
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. . ,
or damage 'in respect of which they were paid either by repairing the
property damaged or replacing the property destroyed, and provision
for making good such loss or damage shall be made within ninety days
from date of the loss. The payment of premiums for all insurance
policies required under the provisions of this Section shall be con-
sidered a maintenance and operation expense.
Any proceeds received by the Village from policies cover-
ing public liability shall be paid into the Revenue Fund and there-
after credited to the Operation and Maintenance Account and be used
in paying the claims on account of which they were received.
Section 14.
That the Village hereby covenants and agrees
with the holders of said bonds and coupons hereby authorized that
so long as the bonds or any of them remain outstanding and unpaid,
either as to principal or interest, that proper books and records
and accounts will be kept and maintained by said Village separate
and apart from all other records and accounts of said Village show-
ing correct and complete entries of all transactions relating to the
system, and that the holders of any of said bonds or any duly author-
ized agent or agents of such holders shall have the right at any
and all reasonable times to inspect the records, accounts and audit
report relating thereto, and to inspect the system and all property
comprising the system. Said Village further covenants and agrees
that it will within not more than ninety days following the close of
each fiscal year cause an audit of such books and accounts to be made
by an independent publiC accountant, and that such audit report will
be available for inspection by the holders of any of the bonds. Each
such audit report in addition to whatever matters may be thought pro-
per by the accountant to be included therein, shall without limiting
the generality of the foregoing, include the following:
(a) A statement in detail of the revenues and costs of
operation and maintenance of the system for such
fiscal year, and including credits to the various
accounts provided hereunder.
(b) The accountant's comment regarding the compliance
by the Village with the accounting requirements
of this Ordinance, and the accountant's recommenda-
tions for any changes or improvements, of the manner
in which such records are kept.
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(c) A list of all the insurance policies in force at
the end of the fiscal year, setting out as to
each policy the amount of the policy, the risks
covered, the name of the insurer and the expira-
tion date of the policy.
(d) The number of sewer customers served by the sys-
tem at the end of the year, the number of metered
water .customers at the end of the year and the
quantity of water pumped.
All expense incurred in the making of the audit required
by this Section shall be regarded and paid as a maintenance and
operation expense, and it is further covenanted and agreed that a
summary of such audit report shall be furnished to the holder of any
of the bonds at his request. Statements of revenues and expenses of
the system shall be furnished by the person in charge thereof to the
President and Board of Trustees at least quarterly and copies of
the same shall be mailed to the original purchaser of the bonds
authorized by this Ordinance and shall be furnished to any bondholder
upon request. A copy of each such annual audit report shall be
mailed promptly upon completion to the original purchaser of the
bonds authorized by this Ordinance, and such original purchaser of
said bonds herein authorized shall have the right to discuss with
the accountant making the audit the contents of the audit report and
to ask for any reasonable explanation of the contents thereof.
Section ~.
That the Village hereby covenants and agrees
with the holders of said bonds and coupons hereby authorized that
so long as the bonds or any of them remain outstanding and unpaid,
either as to principal or interest, that it will punctually perform
all duties with reference to said system required by the Constitution
and laws of the State of Illinois, including the madng and collec-
ting of sufficient rates for water and sewerage service, segregating
the revenues of said system and the application .thereof to the
respective Accounts created by this Ordinance, and it hereby cove-
nants and agrees not to sell, lease, loan, mortgage, encumber or in
any manner dispose of said system, including any and all extensions
and improvements that may be made thereto, except as in this Ordinance
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. .
recited (provided, however, that the covenant in this Section shall
not prevent the said Village from disposing of any property which
in the judgment of the President and Board of Trustees is no longer
useful or profitable in the operation of said system, nor essential
to the continued operation of said system without a reduction in the
revenues to be derived therefrom and the proceeds from the sale of
any such property is credited to the Depreciation, Improvement and
Replacement Account hereinabove referred to in Section 9 of this
Ordinance), and that the Village shall take no action in relation
to said system which would unfavorably affect the security of the
bonds herein authorized or the prompt payment of the principal of
and interest thereon, until all of the bonds herein authorized to
be issued shall have been paid in full, both principal and interest,
or unless and until provision shall have been made for the payment
of all such bonds and interest thereon in full; and the Village fur-
ther covenants and agrees with the holders of said bonds to maintain
in good condition and continuously operate said system.
Section 16. That the provisions of this Ordinance shall
constitute a contract between the Village and the holders of the
bonds herein authorized to be issued, and after the issuance of said
bonds, no changes, additions or alterations of any kind shall be
made therein, except as hereinbefore provided, until such time as
all of said bonds issued hereunder and the interest thereon shall be
paid in full or unless and until provision shall have been made for
the payment o! all such bonds and interest thereon in full.
Section 17. That as soon after this Ordinance becomes
effective as may be, the Series 1967 Bonds herein authorized shall
be sold by the President and Board of Trustees of said Village in
such manner as it may hereafter determine and an award of the sale
of said bonds shall be made to the acceptable bidder upon the basis
of the lowest interest cost to the Village, provided, that the price
for the total authorized issue shall be such that the interest cost
to the Village for the money received by the Village from the sale
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. ,
. . .
, .
of such bonds shall not exceed five per cent (5%) annually computed
to maturity according to standard tables of bond values and in the
event of a discount, then at such a price as to produce for the
Village not less than 99% of the par value of said bonds. If the
acceptable bidder offers to purchase any of said bonds bearing in-
terest at a lower rate or rates than herein provided, then the
President and Board of Trustees shall adopt a resolution fixing the
interest rate or rates on such bonds in accordance with the terms of
the acceptable offer to purchase the same and directing the officers
of the Village to execute and deliver said bonds to such purchaser
bearing interest at such lesser rate or rates so specified by the
acceptable bidder, and at the price designated in said acceptable
bid, and also by resolution shall designate the bank to act as the
paying agent for all of said Series 1967 bonds.
Section lB.
That the proceeds derived from the sale of
said bonds, exclusive of accrued interest, shall be by the Treasurer
segregated into the lIAcquisition and Construction Fund Account of
the Village of Mount Prospect", which is hereby created, which pro-
ceeds shall be kept separate and apart from all other moneys of the
Village and deposited in one or more qualified banks or trust com-
panies in the State of Illinois, which shall be designated from time
to time by the President and Board of Trustees as depositaries for
moneys of said Acquisition and Construction Fund Account. Said
money~ shall be held and used solely to acquire the water works and
distribution system and the sanitary sewer system herein provided
for and the improvements to the sewerage system proposed to be ac-
quired, as provided for by this Ordinance, and shall be held for the
benefit of the Village for the purposes herein provided and for the
benefit of the holder or holders of the bonds hereby authorized as
their interest may appear. The cost of legal, engineering and finan-
cial services and all costs incidental to acquisition of the systems
and issuance of the bonds shall be deemed costs of acquisition and
construction. Said moneys shall be withdrawn from said depositary
-25-
11 .. it
. . ,
~
from time to time by the Treasurer of the Village only upon submis-
sion to him of the following:
(A) A duplicate copy of the order signed by the Presi-
dent and Village Clerk, or such other officers that
may from time to time by law be authorized to sign
or countersign orders on the Treasurer of the Vil-
lage, stating specifically the purpose for which
the order is issued; and indicating that the pay-
ment for which the order is issued has been ap-
proved by the President and Board of Trustees of
said Village;
(B) In the case of the acquisition of the existing water
works and distribution system and the existing sani-
tary sewer system owned and operated by the Utility
Sewer and Water Company, an Illinois corporation,
and which said systems are proposed to be acquired
as improvements and extensions of the combined
waterworks and sewerage system, a duplicate copy
of the order signed by the President and Village
Clerk stating the purpose of the order and indica-
ting that the payment has been authorized by the
President and Board of Trustees of the Village;
(C) Each order drawn for payment to a contractor or
contractors for work done in connection with the
construction of any improvements and extensions
shall be accompanied by a certificate executed
by the engineers in charge of the construction
thereof, stating the nature of the work completed
and the amount due and payable thereon.
Within sixty days after the acquisition of the improvements
. .. ,
and extensions herein provided for, any surplus remaining in said
Ac~uisition and Construction Fund Account shall be transferred to
the Depreciation, Improvement and Extension Account.
From the proceeds derived from the sale of the bonds,
the sum received as accrued interest on said bonds shall be credited
to the Bond and Interest Account.
The moneys credited to the Acquisition and Construction
Fund Account may be invested from time to time in direct obligations
of the United States of America having a maturity not later than
the date or dates when such funds will be needed, such date or dates
to be determined from time to time by the President and Board of
Trustees, and any such investments shall be promptly sold without
further authority of the President and Board of Trustees whenever
necessary to provide money to carry out the purposes for which such
Account was created.
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~ ~ I .
. ... ,
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Section 19.
If any section, paragraph, clause or provi-
sion of this Ordinance shall be held invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any of the
other provisions of this Ordinance.
Section 20.
All ordinances, resolutions or orders, or
parts thereof in conflict with the provisions of this Ordinance are
to the extent of such conflict hereby repealed.
Section 21.
This Ordinance after its passage by the
President and Board of Trustees shall be published once in the Mount
Prospect Herald, a newspaper published in and having a general cir-
culation in the Village of Mount Prospect, and shall be effective in
the manner, form and time as provided by law.
PASSED this J5.is day of
roll call vote:
AbO'2 , 1967 by the following
1
AYES:
, /
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NAYS:
ABSENT:
- u -
2k.,~
APPROVED this ~ 7/t. day of
Recorded in the Village Records this .;2 1'.1 day of [}/"A'; L. ,
1967.
Atte~ fJ ~
age lerk
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