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1 PASSAIC VALLEY WATER COMMISSION SPECIAL MEETING OF NOVEMBER 20, 2017 (OPEN SESSION) C O M M I S S I O N E R S P R E S E N T: GERALD G. FRIEND, President JEFFREY LEVINE, Vice President IDIDA RODRIGUEZ, Treasurer DAVID BLUMENTHAL, Secretary RIGO SANCHEZ ROBERT L. VANNOY (Absent) JOSEPH KOLODZIEJ (Absent) A L S O P R E S E N T: JOSEPH A. BELLA, Executive Director GEORGE T. HANLEY, Counsel (Absent) YAACOV BRISMAN, Assistant Counsel YITZ WEISS, Comptroller LOUIS AMODIO, Administrative Secretary
Transcript
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PASSAIC VALLEY WATER COMMISSION SPECIAL MEETING OF

NOVEMBER 20, 2017

(OPEN SESSION)

C O M M I S S I O N E R S P R E S E N T:

GERALD G. FRIEND, President

JEFFREY LEVINE, Vice President

IDIDA RODRIGUEZ, Treasurer

DAVID BLUMENTHAL, Secretary

RIGO SANCHEZ

ROBERT L. VANNOY (Absent)

JOSEPH KOLODZIEJ (Absent)

A L S O P R E S E N T:

JOSEPH A. BELLA, Executive Director

GEORGE T. HANLEY, Counsel (Absent)

YAACOV BRISMAN, Assistant Counsel

YITZ WEISS, Comptroller

LOUIS AMODIO, Administrative Secretary

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MR. AMODIO: Okay. Call the meeting to

order.

PRESIDENT FRIEND: Call the meeting to

order.

MR. AMODIO: Commissioner Vannoy will not

be here and Commissioner Kolodziej will not be

here.

I have not heard from Commissioner Levine,

so we will go on the roll.

(Roll call was taken, all Commissioners

present respond in the affirmative. Commissioners

Kolodziej and Vannoy are absent. Commissioner

Levine is not present yet)

MR. AMODIO: You have a quorum.

All of the requirements of the Open Public

Meetings Act have been met. Notices have been

furnished to all Commissioners; City Clerks of

Paterson, Passaic, and Clifton; North Jersey

Herald News; The Record - Passaic County edition

and the Commission's Executive Staff with a copy

posted at the main bulletin board at the Clifton

facility.

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(Commissioner Levine is present at 10:05

a.m.)

MR. AMODIO: Commissioner Levine is here.

Please stand.

Commissioner Levine, would you please.

(Pledge of Allegiance)

MR. AMODIO: I'll let Mr. Weiss take over.

MR. WEISS: Commissioners, you have in

front of you two resolutions. One is the approval

of the budget for 2018. We discussed the details

at length. I'm happy to answer anymore questions

anybody has.

The second resolution you have in front of

you is the budget submission resolution. It needs

to be approved separately.

First we got to approve it and then we can

do the budget submission resolution.

If you want some quick highlights.

According to our five-year plan, we

originally planned for a five percent increase for

2018. We're actually going to cut that back to a

two percent increase.

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We are ramping up our working capital.

Our operating reserve was at 50 days for

2017. We're increasing that for 55 days for 2018.

Our debt coverage ratio projected is

significantly higher than what the minimum is

required, which is excellent.

Budgeted figures for health insurance or

active retired employees is down by a little over

15 percent in 2018 from 2017.

And we're planning to put in $27 million

in capital, which will be paid out of cash and

fund balance.

Those are the highlights.

COMMISSIONER RODRIGUEZ: Yitz, I'm going

to, it's too late now, but next year I think you

might give this some thought, before you get ready

to submit the budget, I think giving us those kind

of highlights and I mean, it was a crazy year,

election year, everybody got busy, holidays and

what have you, but this is something we should go

over like, you know -- it's originally, it was due

when? In October?

MR. WEISS: Yes.

COMMISSIONER RODRIGUEZ: Right. So by

September we should have this and we should have

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the highlights and look at everything, because

even myself I got it last week, you know. I think

it was last, yeah, last Sunday, and to look over

everything. And I did have some questions in

terms of what we budgeted, actuals, things like

we're budgeting and then some budgets were like a

million dollars over the actual.

But that's my recommendation for next year

is to get it done by September. Have a meeting,

but bring those highlights where we made progress,

where we're lacking, and what we need to do to

improve.

COMMISSIONER SANCHEZ: My thing is this.

I have a couple of questions. Basically, we're

doing this based on projection, which is the right

thing to do.

Based on past history, how close have we

been to our projection based on some of the other

budgets that we did based on projections, how

close to the projected number?

MR. WEISS: Good question. So we actually

came in, we're looking like we're coming in

significantly under budget as far as our expenses

for 2017.

COMMISSIONER SANCHEZ: What about income?

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MR. WEISS: Income coming in under budget

also.

COMMISSIONER SANCHEZ: Some of the numbers

seem to be a little low. Overtime seems to be a

little low. We always spend a little more than

that. I also see the budget for legal is a little

bit low. Some of the numbers I think should be

conservative based on the amount of money that

we're spending every year. Is that something

you're comfortable with?

MR. WEISS: I'm very comfortable with

these numbers, yeah. I'm very comfortable with

these. We've been coming in consistently under

budget as far as our expenditures. Some of that

is because we have to plan for the worst case

scenario, for example, chemicals. We don't know

what kind of a year it's going to be. So we have

to plan what the max is going to be and then if we

have an average year then --

COMMISSIONER RODRIGUEZ: I get that, but

even places like salaries, right, we've come way

under in some places. And to me, I want to make

sure that our human capital is at capacity, that

we're not selling ourselves short. If we need

laborers or we need, whatever it is that we need,

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that we have that, that we're not, you know. I

mean, chemicals, right, those are like variables,

you never know what's going to happen, you know,

the way the climate is changing.

But I think, to me, I think the most

important piece is IT, of course. I mean, when I

left, I know that Menachem was working really,

really diligently on making sure we had an inhouse

person. That's important, for security, for

having somebody on board.

I mean, another thing I was thinking too,

even in Customer Service having someone sitting

behind a computer everyday. I think we need to

start looking at innovative ways that we can get

people on tablets moving around instead of

station, because while they're stationed, you

know, I see a lot of things online that, you know,

these people, they should be working, not doing

that. So that is another thing.

And to me, again, it just goes -- you're

talking about the overtime. I think we do have a

problem. It's because people don't want to do it

because of those 16 hour shifts and then having to

come back to work. I think that's being resolved.

I'm also going to be a stickler about

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this, we need to look at our human capacity. A

human resources thing has to be done to make sure

all our directors are being given the proper, you

know, help that they need to run and operate

those, because these are just numbers and, you

know, I don't know the overall how we're operating

and if we're coming under salaries. I mean, a

half million dollars and things like that, we need

to re-appropriate those dollars and get the people

in here that are going to do the job that we need

to get done here.

COMMISSIONER SANCHEZ: My thinking is,

Joe, I know you and, you know, I congratulate you

guys, because in terms of water treatment, you're

always looking ahead of the curve. But I think IT

is one component in terms of operating, not in

terms of water treatment, because you are

wonderful with that, but in terms of operation,

how we operate and how we function. I think

that's something we should spend some time and

effort and kind of have a plan for that particular

sector, which we need to incorporate this entity.

The other thing is, Yitz, I don't know how

the number plays out, I see $16 million towards

overpaying our debt. I think that's a

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conservative number. That's a great number. I

don't know how we compare to other facilities,

other public entities. I think 16 percent to pay

down the debt, I think it's a great number, but I

don't know how we're doing, how do we compare

these numbers to other public entities.

MR. WEISS: We haven't compared to other

entities, but we do get rated by the rate

agencies. The rating agency just increased us

recently. We're a double A 3. So they've been

very comfortable both with our five year plan and

our projections and results.

MR. BELLA: They consider that moderate.

COMMISSIONER SANCHEZ: My third

observation is that the trend is less consumption

but yet we're getting more money, so my thinking

is, I don't know if -- I mean, two percent is a

great increase, but maybe you can do less. I

don't know. I mean, I'm just looking at every

corner to see what we can do.

I'm glad Commissioner Rodriguez called for

this meeting because I think we should do this.

We need to take some time to go over this.

COMMISSIONER RODRIGUEZ: I just, you know,

I think this is good. I think we come in here and

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we skim through the top of everything. And I

think this is, I keep saying it, because

ultimately the governing body of this entity is

responsible for everything. And, you know, to get

a budget and just to think, you know, me, I'm not

going to just signoff on it. I mean, that's just

who I am, and from the first year I came here,

because I think it's important that we know, not

the matters of day to day, I don't have time for

that anyway. I hardly even come here. But we

need to know things that are going on here and

this is a really, as we end this year, I think

we've had a phenomenal year, you know, to get not

engrossed, but to get engaged at the governing

body level of things that are going on here.

Rigo is correct, the water treatment piece

of this entity is second to none. And I know that

because I see utility companies come in front of

us and, you know, I listen to them, I read their

reports, I read their budgets and I'm like, what

the heck are they doing. So in that entity and

the engineering part, but I just think if there's

not room for improvement then we're not really

doing our job.

And I think human resources and human

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capital and IT is definitely a place that needs to

be looked at very, very seriously and very, very

carefully because there's a lot of improvement

that can be done.

COMMISSIONER SANCHEZ: What I'd like to

see in the next year, I'd like to see something

towards IT, human resources, how we can improve;

how can we combine. That's what I would like to

see.

COMMISSIONER RODRIGUEZ: This is not

taking our director and putting him in IT because

he has no clue about IT.

COMMISSIONER SANCHEZ: I don't know how --

it's up to you guys. You guys are good with

coming up with a solution. We need to come up

with something that we could incorporate that.

COMMISSIONER LEVINE: Isn't there a

consultant, Rigo, we just hired?

COMMISSIONER RODRIGUEZ: We have over 200

employees. You really should have, you really

should have an IT person that troubleshoots; that

knows about programming; that knows a host of

things so that if something goes wrong, they get

in their car, they go up there.

COMMISSIONER LEVINE: I'm talking about

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telling us where to upgrade.

COMMISSIONER RODRIGUEZ: You're talking

about a feasibility. I thought Menachem had done

that.

COMMISSIONER SANCHEZ: Didn't we do one?

MR. BELLA: Actually, we're scheduling

this next year, come in and start to do that.

COMMISSIONER LEVINE: And then hire.

COMMISSIONER RODRIGUEZ: Who's on the IT

committee?

COMMISSIONER BLUMENTHAL: I think

officially I am.

COMMISSIONER RODRIGUEZ: Because what has

to happen, and this has been 12 years in the

making for me, what has to happen is not just

about bringing hardware in here and hiring

somebody to come in and train people, it's about

having a real trained professional in here that

understands systems and how they work. And I

thought Menachem had done a feasibility study at

one time. When I left he was working on

something.

COMMISSIONER LEVINE: That's what I'm

saying, feasibility tells if we're up to par with

the rest.

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COMMISSIONER RODRIGUEZ: I call it a

feasibility study. But just an IT enterprise,

something like that.

MR. WEISS: We did a business process

review.

COMMISSIONER RODRIGUEZ: Yes.

MR. WEISS: And one of the things that

came out of that was the fact that we needed to

upgrade all of our enterprise software. So that's

been in process. It's a multi-year plan. We've

done the billings end of it. We're looking this

year now to do the CMMS and inventory.

COMMISSIONER RODRIGUEZ: I'm not even

talking about. That is part of the business. But

I'm talking about having someone here, someone

here that can really --

COMMISSIONER LEVINE: Evaluate.

COMMISSIONER RODRIGUEZ: Evaluate, not

even -- yeah, evaluate, you know. When I go on

social media and I see people at 10:00 that should

be working on social media, you know, to me I have

a problem with that. And when I get it I just,

you know, I let them know. And I'm not saying

that I even -- but I just go back, you know,

there's just simple things like that. I just

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think the whole IT here, I said it for many years.

But that's not for this meeting; that's just a

recommendation.

PRESIDENT FRIEND: Okay.

COMMISSIONER RODRIGUEZ: No, no, because

there are systems that you put in place to track

that, you know, in terms of the efficiencies of

labor. Okay. The good thing about that is if

something happens, you can go back and track what

that person was doing, you know, because of the

liabilities --

COMMISSIONER SANCHEZ: Can I say

something?

COMMISSIONER RODRIGUEZ: Go ahead.

COMMISSIONER SANCHEZ: Can I say

something? I don't know what a solution is, but I

know that definitely we need to go into that.

COMMISSIONER RODRIGUEZ: Yes.

COMMISSIONER SANCHEZ: IT and see what we

need, whether we need somebody, whether we need to

do a study. Whatever it is, come back and let us

know.

Is that the feeling of the Commission that

we want to go that direction and get on board and

implement human capital and being more efficient?

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COMMISSIONER RODRIGUEZ: Yes.

PRESIDENT FRIEND: Is there a way to block

the computers so that they can't go on social

media during the day?

MR. BELLA: She's talking about us going

out on social media?

COMMISSIONER RODRIGUEZ: No, it's a larger

conversation. But I'm just using that as an

example. Technology, I'm just looking at, you

know, if we have, let's say, stations. Let's say

Customer Service, I'm thinking that and not next

year, but how do we get people on tablets so

they're not just sitting, you know, like that.

I'm just talking about it's health and wellness

and all that stuff. That's me thinking.

COMMISSIONER SANCHEZ: I have somebody go

up to there to do meter reading, when he goes

there's no meter, there's no reading. He does a

work order from a particular location and doesn't

have, that type of thing.

MR. WEISS: We actually have that. We are

doing that right now. We have all our guys in the

field have tablets.

COMMISSIONER RODRIGUEZ: Exactly. You

know, I just thought and this is just, because I

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had a friend who had to have two surgeries, right,

in the lower back. And I basically told her, I

said, if you're going back to work, you need --

she works, she schedules appointments for, you

know, breast cancer patients. And I said: You

got to go back, you need to have them give you a

tablet where you can get up and walk around with a

head piece if you have to answer the phone, you

know. And she gets up and walks around. Listen,

she probably has to work more, but you can answer

more calls, you know. You can take care of more

customers. And that's just an idea. That's an

idea, because I went back there one day and I

said, you know, these folks can be more efficient.

But that's just an idea. That's just me.

MR. BELLA: Well taken.

COMMISSIONER RODRIGUEZ: And the tablets.

MR. BELLA: We're always looking for --

COMMISSIONER RODRIGUEZ: For innovative.

MR. BELLA: Sometimes we buy equipment in

the back that really increases efficiency. A

guy's digging a hole. There's no reason not to

look at those same kind of things sitting in the

office.

PRESIDENT FRIEND: Rigo had mentioned

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about legal fees. What is the status with our

issue with North Jersey?

MR. BELLA: We're, you know, doing

everything we have to do. We're waiting for them

to send us a letter saying what the final and then

we're going to respond to them.

PRESIDENT FRIEND: Okay.

MR. BELLA: They'll send us a letter.

MR. BRISMAN: Mr. President, if I may,

we're in public session. We're not in executive

session so I don't think we should discuss it.

PRESIDENT FRIEND: All right. The other

question I had is, I see the newspaper all the

time about the towns where people are retiring and

the towns don't have sufficient funds to pay them

out their sick time and vacation time, whatever

they accumulated over the years, and I think

Paterson or one of the communities is even going

out to bond for it.

COMMISSIONER RODRIGUEZ: Yes, we did.

PRESIDENT FRIEND: Where do we stand in

terms of our funds, like, how many retirements do

we have projected in the next year or 24 months?

Do we have the funds to pay that if that should

happen?

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MR. BELLA: Commissioners, we don't have

contracts where people are getting paid their

entire sick time for the entire time that they've

been here and all that other stuff.

COMMISSIONER LEVINE: He's talking about

pensions, I think. He's talking about their

healthcare benefits.

MR. BELLA: We don't pay that. We pay

half --

COMMISSIONER RODRIGUEZ: People take three

months off when they have all these sick days

accumulated, so you pay it one way or another.

I'm not rebutting what you're saying, Joe.

MR. BELLA: We're not taking, you know, we

don't take that kind of a hit, because we, you

know.

PRESIDENT FRIEND: Do we have limits?

COMMISSIONER RODRIGUEZ: We don't take it

capital wise. Let me give you an example, John

Kelly who -- I can't --

MR. BRISMAN: I was about to jump in.

COMMISSIONER RODRIGUEZ: Forget about it.

Forget about it.

MR. BRISMAN: I think what Mr. Bella is

trying to say is we don't cut big checks for

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accumulated days. What some employees do --

COMMISSIONER RODRIGUEZ: They take 90

days, 120 days.

MR. BRISMAN: Recently, a recent

situation, we will not discuss any individual, but

a relatively recent situation brought to light

that we have to monitor that, especially, in the

case of people that have large numbers of

accumulated days. And that's something, as I

said, a recent situation really brought that more

to the forefront. So going forward we'll be

monitoring that. But we don't have those

situations where somebody accumulated 90 sick

days, you know, we cut them a check for tens of

thousands of dollars.

COMMISSIONER RODRIGUEZ: We don't pay it

out in cash. We pay it out with time. What

happens is when an individual has all these

responsibilities that they need to get taken care

of, that goes to the back burner, okay, it piles

up and then we have to pay overtime or whatever it

is. So we don't pay it in full like that, but the

company, the organization suffers.

COMMISSIONER SANCHEZ: And we have

employees that their whole life is a vacation --

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PRESIDENT FRIEND: What is the average

number of employees --

MR. BRISMAN: That was a joke.

COMMISSIONER SANCHEZ: No, it's not a

joke. We have employees that they goof around,

that's it. It's not a joke.

PRESIDENT FRIEND: What is the average

number of employees that retire in a year? How

many retired this year?

COMMISSIONER RODRIGUEZ: I think

personnel --

MR. BRISMAN: Mr. Gallagher would be in a

better position to answer that question.

COMMISSIONER RODRIGUEZ: I think the

personnel committee should really ask Mr.

Gallagher that question and put a report together

and who's eligible to retire.

COMMISSIONER SANCHEZ: This year was going

to be a big year, my thinking or last year? This

year coming up? A lot of people going to retire,

I think, Yitz, this year?

MR. AMODIO: I know a lot of people are

eligible.

COMMISSIONER SANCHEZ: But that's rumors.

COMMISSIONER RODRIGUEZ: We need to look

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at what time they have accumulated because it's

the same thing, Mr. President, it's the same

thing. We need to look at, those are the kinds of

things to have checks and balances. If you have

somebody that's eligible and you see that they got

30 days accumulated in sick time or whatever it

is, I don't -- you know, you want to know that

because if they say we're going to retire, we're

not going to give them a check. They're going to

take that 30 days. No, they do, come on, I would.

Let's be frank. If I have 30 days accumulated,

I'm not going to get paid for them before I

retire, I'm not going to take them? Nobody is

leaving money on the table, not these days. It's

okay. I'm not saying they don't deserve it.

COMMISSIONER SANCHEZ: We should get a

report on that.

PRESIDENT FRIEND: Okay. Any other

questions?

MR. WEISS: That's actually part of the

numbers that are submitted to the State with the

budget. They want to know what our accumulated

absences are and that's something reported in our

annual report. The auditors look at that every

year. It's something we track. Employees are

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eligible if they retire and they have accumulated

vacation time, they're allowed to put in for

vacation time. And if they have accumulated sick

time, as Mr. Bella mentioned, we pay out our

employees 50 percent of the value of their

accumulated sick time up to $20,000. That's our

maximum.

COMMISSIONER RODRIGUEZ: The cities are

doing less than that.

MR. WEISS: So we are budgeted for any

payouts that we have to pay.

PRESIDENT FRIEND: Any other questions?

COMMISSIONER SANCHEZ: 20 or 15?

MR. WEISS: 20.

COMMISSIONER RODRIGUEZ: I thought the

cities were doing 15.

MR. WEISS: Cities are doing 15, ours is

20.

COMMISSIONER RODRIGUEZ: Personnel needs

to look at that.

PRESIDENT FRIEND: Any other questions on

the budget?

Motion to approve it?

COMMISSIONER RODRIGUEZ: So move.

COMMISSIONER BLUMENTHAL: Second.

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COMMISSIONER RODRIGUEZ: Good job, by the

way, you guys.

MR. AMODIO: On the roll.

COMMISSIONER SANCHEZ: Before I vote, I

want to thank you. It's more work to do, but

we're clearing up more issues than ever before, I

think, and I think every Commissioner is more

aware of what they're doing now.

COMMISSIONER RODRIGUEZ: That was the word

I was looking for, not engaged, aware.

MR. BELLA: I agree with Commissioner

Sanchez, you know, a lot has to do with

professionalism on the Board too. You know, the

Board gives us the tools and means to get the job

done and do it the right way.

MR. AMODIO: Roll call.

(Roll call was taken, all Commissioners

present respond in the affirmative. Commissioners

Kolodziej and Vannoy are not present)

MR. WEISS: Now we need a second

Resolution for the budget submission.

PRESIDENT FRIEND: Is there a motion to

submit the budget to the State?

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COMMISSIONER BLUMENTHAL: Move.

COMMISSIONER SANCHEZ: Second.

MR. AMODIO: On the roll.

(Roll call was taken, all Commissioners

present respond in the affirmative. Commissioners

Kolodziej and Vannoy are absent)

MR. AMODIO: Thank you.

PRESIDENT FRIEND: Any other matters to

come before the Board?

COMMISSIONER SANCHEZ: No.

COMMISSIONER RODRIGUEZ: No, we're good.

COMMISSIONER SANCHEZ: I want to wish

everyone a Happy Thanksgiving.

COMMISSIONER RODRIGUEZ: And healthy.

COMMISSIONER BLUMENTHAL: Motion to

adjourn.

COMMISSIONER RODRIGUEZ: Second.

MR. AMODIO: Time is 10:31.

(Proceedings concluded)

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C E R T I F I C A T E

I, LYNANN DRAGONE, License No. XIO1388, a

Certified Court Reporter and Notary Public of the State

of New Jersey, certify that the foregoing is a true and

accurate transcript of the hearing at the time and the

date hereinbefore set forth.

I further certify that I am neither attorney

nor Counsel for, nor employed by any of the parties to

the action in which this hearing was taken.

I further certify that I am not an employee of

anyone employed in this case, nor am I financially

interested in this action.

___________________________

LYNANN DRAGONE, CCR

Certified Court Reporter


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