HomeMy WebLinkAboutORDINANCES-1964-040-O-64AN ORDINAiNCE authorizing and providing for the issue of
$4,080,000 Water Revenue Bonds of the City of Evanston,
Cook County, Illinois for the purpose of defraying the
cost of improving and extending the present waterworks
system of said City, prescribing all the details of said
bonds, and providing for the collection, segregation and
distribution of the revenue of the waterworks system of
said City for the purpose of paying the cost of the oper-
ation and maintenance thereof, providing an adequate
. depreciation fund therefor, providing an interest reserve
fund and paying the principal and interest of said Water
Revenue Bonds.
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WHEREAS it is deemed advisable, necessary and for the best inter-
ests of the City of Evanston, Cook County, Illinois, that its present
municipally owned waterworks system be improved and extended by the construction
of a steel sheet piling coffer dam; the demolition of an existing unused
settling basin; the filling and reclaiming of land within the new coffer dam;
and by construction of a rapid mixing tank, two new slow mix basins, two new
settling basins, a 24 million gallon per day filter plant addition with a
clear well beneath the filters, a new centralized control room for the oper-
ation of both old and new filters; a new chlorine feed installation, including
ton cylinder scales and feeders; a new ammonia feed installation, including
feeders and storage tank; a new hydrofluosilicic feed installation, including
storage tanks, day tank and chemical pumps; a new carbon slurry installation,
including storage tanks, chemical pumps and feeders; a new liquid alum feed
installation, including storage tanks, chemical pumps and feeders; a new
liquid ferrous sulfate feed installation, including storage tanks, chemical
pumps and feeders; a new dehumidifying system for portions of the building,
a new air-conditioning system for the laboratory and new filter control room;
a new garage composed of two sections with overhead doors for the storage of
City vehicles; a new parking area adjacent to the plant; two new wash water
pumps; improvements to the present electric switchgear installation; together
with all connections, piping, electrical wiring and other appurtenances neces-
sary to make said improvements an integral part of the existing waterworks
system of said City, all in accordance with plans and specifications therefor
heretofore approved by the City Council and now on file in the office of the
City Clerk for public inspection; and the construction of a 36" water main
from Lincoln Street and the North Shore channel to McCormick and Simpson
Streets to supply water for the Village of Skokie, and the construction of a
5 million gallon reservoir adjacent to the present plant, in accordance with
the engineering report heretofore and hereby approved by the City Council,
including all piping, electrical wiring and other appurtenances necessary to
make said improvements an integral part of the existing waterworks system; and
WHEREAS the total estimated cost of such proposed improvements and
extensions as prepared by the engineers including bond discount and all other
incidental expenses necessary in borrowing money for said purpose is the sum
of $4,080,000; and
WHEREAS the City does not have funds available for the purpose of
constructing said improvements and extensions and it will be necessary for
the City to borrow the sum of $4,080,000 and in evidence thereof issue bonds
therefor; and
WHEREAS pursuant to the provisions of Division 129 of Article 11 of
the Illinois Municipal Code, as amended, said City is authorized to issue
water revenue bonds for the purpose of paying the cost of said improvements
and extensions; and
WHEREAS pursuant to the provisions of an ordinance adopted by the
City Council of said City of Evanston on the 24th day of May, 1948-,,author-
izing the issuance of $2,890,000 Water Revenue Bonds, and pursuant to'.the same
provisions of an ordinance adopted by the City Council of said City of Evanston
on the 7th day of November, 1955, authorizing the issuance of $1,450,000 Water
Revenue Bonds of said City, no additional bonds shall be issued to share
equally in the income derived from the operation of the waterworks system of
said City unless the revenues for the fiscal year then next preceding were
sufficient to pay all costs of operation and maintenance, provide the depreci-
ation fund, and leave a balance equal to at least one hundred ten per cent
(110%) of the aggregate of (a) the principal and interest requirements for
such year on all bonds outstanding payable from the revenues of the waterworks
system, (b) one year's interest on the total issue of such additional bonds
then proposed to be issued, and (c) an amount of principal of such additional
bonds computed by dividing the total amount of such issue by the number of
years from date of issue to the final maturity date of such additional bond
issue; and
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WHEREAS this City Council has caused an audit of the earnings of
the waterworks system to be made for the last preceding fiscal year and this
City Council has heretofore determined and does hereby determine that the
earnings of the waterworks system for the last preceding fiscal year comply
with the covenants and restrictions provided for in and by the ordinances
authorizing the outstanding water revenue bonds, and that the earnings for
such last preceding fiscal year are sufficient to permit the issue of ad-
ditional water revenue bonds;
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NOW, THEREFOR, Be it Ordained by the City Council of the City of
Evanston, Cook County, Illinois as follows:
Section 1. That the City Council has caused an estimate of the
cost of making improvements and extensions to the waterworks system of said
City, as described in the preambles hereof, and all in accordance with plans
and specifications therefor heretofore approved and now on file in the office
of the City Clerk for public inspection, and his heretofore determined and
does hereby determine and estimate that the cost of such improvements and ex -
tensions including bond discount and all other incidental expenses necessary
in borrowing money for said purpose is the sum of $4,080,000.
Section 2. That the City Council does hereby determine the period
of usefulness of said waterworks system, including the improvements and ex-
tensions hereby proposed to be forty years.
Section 3. That for the purpose of defraying the cost of such
improvements and extensions there be issued and sold water revenue bonds of
said City to be designated "Water Revenue Bonds," in the principal amount of
$4,080,000, which bonds shall bear date of May 1, 1964, to be in the denomi-
nation of $5,000 each, to be numbered consecutively from 1 to 816, inclusive.
Bonds numbered 1 to 160, inclusive, maturing January 1, 1966 to 1978, inclusive,
shall bear interest at the rate of five per cent (5%) per annum. Bonds numbered
161 to 332, inclusive, maturing January 1, 1979 to 1984, inclusive, shall bear
interest at the rate of three and one -quarter per cent (3-41%) per annum. Bonds
numbered 333 to 376, inclusive, maturing January 1, 1985 shall bear interest at
the rate of three and two tenths per cent (3.20261) per annum. Bonds numbered 377
to 464, inclusive, maturing January 1, 1986 to 1987, inclusive, shall bear inter-
est at the rate of three and one quarter per cent (3e) per annum. Bonds numbered
465 to 684, inclusive, maturing January 1, 1988 to 1992, inclusive, shall bear
interest at the rate of three and three -tenths per cent (3.30%) per annum. Bonds
numbered 685 to 772, inclusive, maturing January 1, 1993 to 1994, inclusive,
shall bear interest at the rate of three and four -tenths per cent (3.40%) per
annum, and bonds numbered 773 to 816, inclusive, maturing January 1, 1995 shall
bear interest at the rate of one -tenth of one per cent (0.10%) per annum. Inter-
est shall be payable on January 1, 1965 and semi-annually thereafter on the
first days of July and January of each year, and the bonds shall mature on
January 1 on each of the years as follows:
Serial
Numbers
Principal
Inclusive
Amount
Year
1
to
10
$ 50,000
1966
11
to
20
50,000
1967
21
to
30
50,000
1968
31
to
40
50,000
1969
41
to
50
50,000
1970
51
to
62
60,000
1971
63
to
74
609000
1972
75
to
86
60,000
1973
87
to
100
70,000
1974
101
to
114
70,000
1975
115
to
128
70,000
1976
129
to
144
80,000
1977
145
to
160
80,000
1978
161
to
176
80,000
1979
177
to
204
140,000
1980
205
to
232
140,000
1981
233
to
260
140,000
1982
261
to
288
140,000
1983
289
to
332
220,000
1984
333
to
376
220,000
1985
377
to
420
220,000
1986
421
to
464
220,000
1987
465
to
508
220,000
1988
509
to
552
220,000
1989
553
to
596
220,000
1990
597
to
640
220,000
1991
641
to
684
220,000
1992
685
to
728
220,000
1993
729
to
772
2209000
1994
773
to
816
220,000
1995
$4,080,000
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provided, however, that bonds numbered 333 to 816, inclusive, shall be subject
to redemption prior to maturity, at par and accrued interest, on any interest
payment date on or after January 1, 1984, in the inverse order in which they
are numbered; that is co say bond numbered 816 shall be redeemed before bond 3
numbered 815 is redeemed, and so on, continuing such priority of redemption as
to all said bonds subject to redemption prior to maturity. Notice of redemption
of any or all of said bonds shall be published at least once in a newspaper
published and of general circulation in the City of Chicago, Illinois, not less
than thirty days prior to the day of redemption; and any such notice shall
designate the day and place of redemption of said bonds, which shall be at the
. place of payment thereof, shall designate the number and the aggregate principal
amount of the bonds to be redeemed, and that on the designated date of redemption
said bonds will be redeemed by payment of the principal thereof and accrued
interest thereon, and that from and after the designated redemption date interest
in respect of said bonds so called for redemption shall cease.
Section 4. Both principal and interest of said Water Revenue Bonds
shall be payable in lawful money of the United States of America at the Harris
Trust and Savings Bank, Chicago, Illinois. Said bonds shall be signed by the
Mayor, sealed with the corporate seal of said City, and attested by the City
Clerk, and the interest coupons attached to said bonds shall be executed by the
facsimile signatures of said Mayor and said City Clerk and said officials, by
the execution of said bonds, shall adopt as and for their own proper signatures
their facsimile signatures appearing on said coupons.
Said bonds together with interest thereon, shall be payable solely
from the revenues derived form the waterworks system of said City and such bonds
shall not in any event constitute an indebtedness of the City of Evanston within
the meaning of any constitutional or statutory limitation.
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 City in the office
of the City Treasurer, such registration to be noted on the reverse side of the
bonds by the City Treasurer, 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 City Treasurer, with a
legal assignment duly acknowledged or approved. Registration of any of such
bonds shall not affect negotiability of the coupons thereto attached, but such
coupons shall be transferable by delivery merely.
Section 5. That said bonds and coupons shall be in substantially the
following form:
(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF COOK
CITY OF EVANSTON
WATER REVENUE BOND
NUMBER _ $5,000
KNOW ALL MEN BY THESE PRESENTS, that the City of Evanston, Cook County,
Illinois, for value received, hereby promises to pay to bearer, or if this bond
is registered, as hereinafter provided, then to the registered holder hereof,
solely from the Water Fund of the City of Evanston, as hereinafter mentioned,
and not otherwise, the sum of FIVE THOUSAND DOLLARS ($5,000) on January 1, 19_,
together with interest on said sum from date hereof until paid at the rate of
per annum
payable semi-annually on the first days of January and July in each year upon
presentation and surrender of the annexed interest coupons as they severally
become due. Both principal and interest of this bond are hereby mady payable in
lawful money of the United States of America, at the Harris Trust and Savings
Bank, Chicago, Illinois.
This bond is payable solely from revenues derived from the waterworks
system of said City, and not otherwise, and is issued under authority of
Division 129 of Article 11 of the Illinois Municipal Code, and all laws supple-
mentary thereto and amendatory thereof, for the purpose of paying the cost of
constructing improvements and extensions to the municipal waterworks system of
said City of Evanston, and this bond does not constitute an indebtedness of said
City within any constitutional or statutory limitation.
Under said Act and the ordinance adopted pursuant thereto, sufficient
revenues from the operation of the municipal waterworks system shall be deposited
in a separate fund designated as the "Water Fund" of said City, which shall be
used and is hereby pledged for paying the cost of operation and maintenance of
such system, providing an adequate depreciation fund, providing an interest re-
serve fund, and paying the principal of and interest on the bonds of such City
that are payable by their terms only from the revenues of such waterworks system.
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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 happended and have been performed in regular and due form ofg 3 5
law, and that provision has been made for depositing in said Water Fund suf-'
ficient revenues received from the operation of said waterworks 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 service of said system suf-
ficient at all times to pay the cost of operation and maintenance of said system,
provide an adequate depreciation fund, provide an interest reserve fund and pay
the principal of and interest upon all bonds issued by the City, which are paya-
ble solely from the revenues of said system.
This bond is one of an authorized issue of $4,080,000 of the denomi-
nation of $5,000 each, numbered from 1 to 816, inclusive, and bonds numbered 333
to 816, inclusive, are redeemable at the option of the City, prior to maturity,
at par and accrued interest in the inverse order in which they are numbered on
January 1, 1984, or on any interest payment date thereafter. That is to say,
bond numbered 816 shall first be redeemed before bond numbered 815 is redeemed,
and so on, continuing such priority of redemption as to all bonds redeemable.
Notice of redemption of any or all of said bonds so redeemable shall be published
at least once in a newspaper published and of general circulation in the City of
Chicago, Illinois not less than thirty days prior to such redemption date, and
when this bond shall have been called for redemption, and payment made or pro-
vided for, interest thereon shall cease .from and after the date so specified.
This bond may be registered.as to principal in the name of the holder
on the books of said City in the office, of the City Treasurer, such registration
to be evidenced by notation of said Treasurer on 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 MHEREOF, said City of Evanston, Cook County, Illinois by
its City Council, has caused this bond to be signed by the Mayor, its corporate
seal to be hereto affixed, and attested by the City Clerk, and the coupons here-
to attached to be signed by the facsimile signatures of said Mayor and said City
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 the first day of May, 1964.
ATTEST:
City Clerk
(Form of Coupon)
NUMBER $
On the first day of
Mayor, City of Evanston
, 19
(unless the within bond has theretofore been called for payment as
therein provided and payment made or p ovided for), the City of Evanston, Cook
County, Illinois will pay to bearer out of the Water Fund of said City
Dollars ($ ), in lawful money
of the United States of America at the Harris Trust and Savings Bank, Chicago,
Illinois being interest then due on its Water Revenue Bond dated May 1, 1964.
Number
Mayor
City Clerk
'(The clause within the parenthesses shall be inserted in coupons
attached to bonds numbered 333 to 816, inclusive, maturing after
the callable date of the bond to which it is attached).
(Form of Registration)
In Whose Signature
Name Of City
Date Registered Treasurer 3 1;
Section 6. That upon the issuance of the Water Revenue Bonds, herein
provided for, the entire municipal waterworks system of said City of Evanston
for the purpose of this ordinance, shall be operated on a fiscal year basis
commencing the first day of January and ending the last day of December of each
year. From and after the delivery of any bonds issued under the provisions of
this ordinance sufficient revenues derived from the operation of the waterworks
system of said City of Evanston shall be set aside as collected and be deposited
in a separate fund heretofore created and designated as the Water Fund of the
City of Evanston, which shall be used in paying the cost of operation and mainte-
nance of said system, providing an adequate depreciation fund, providing an
interest reserve fund and paying the principal of and interest on all Water
Revenue Bonds of said City of Evanston which are payable by their terms only
from such revenues.
It is hereby determined that the amounts to be set aside in said Water
Fund to be used for the purpose of paying principal and interest of Water Revenue
Bonds, issued under the provisions of this ordinance, in addition to all other
amounts that may now or hereafter be required to be set aside for revenue bonds
heretofore issued and outstanding shall be as follows:
Fiscal Year
Ending
Principal
Last Day of
and
December
Interest
1964
$ 93,846.85
1965
190,770.00
1966
186,270.00
1967
185,770.00
1968
183,270.00
1969
1809770.00
1970
188,270.00
1971
185,270.00
1972
182,270.00
1973
189,270.00
1974
185,770.00
1975
182,270.00
1976
188,770.00
1977
184,770.00
1978
180,770.00
1979
238,170.00
1980
233,620.00
1981
229,070.00
1982
224,520.00
1983
299,970.00
1984
292,820.00
1985
265,780.00
1986
278,630.00
1987
271,480.00
1988
264,220.00
1989
256,960.00
1990
1991
249,700.00
242,440.00
1992
235,180.00
1993
227,700.00
1994
220,220.00
Distribution of amounts in said Water Fund, sufficient to pay all costs of oper-
ation and maintenance, to provide an adequate depreciation fund, to provide an
adequate interest reserve fund and to pay the principal of and interest on all
Water Revenue Bonds of the City of Evanston shall be made monthly on the first
day of each month, except that when the first day of any month shall be Sunday
or a legal holiday, then such distribution shall be made on the next succeeding
secular day. Said Water Fund as hereinabove provided for shall be used solely
and only and is hereby pledged for the purpose of paying the principal and
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interest of the bonds herein authorized to be issued and all water revenue bonds
heretofore issued and outstanding, to pay the cost of operation and maintenance,
to provide an adequate depreciation fund and to provide an interest reserve.
Said depreciation fune, in accordance with ordinances authorizing previous water
revenue bond issues, shall be accumulated at an annual rate of $25,000, and said
fund shall be used from time to time only for the purpose of meeting any
emergency or expense in the replacement of any of said waterworks properties. 13
At such time as all water revenue bonds issued prior to the issue
herein provided for shall have been retired, said depreciation fund may be re-
duced to $300,000, and no further transfers into the depreciation fund shall be
required, except that any monies used from the depreciation fund shall be
restored from the first monies available for that purpose.
An interest reserve fund shall be accumulated at an annual rate of
$30,000 beginning in the fiscal year 1965 and continuing through each fiscal year
until a total of $150,000 shall have been credited to the interest reserve fund.
Said interest reserve fund shall be used only for the purpose of paying interest
on the bonds of said City which by their terms are payable from the revenues of
the waterworks system of said City in the event that the Water Fund is unable
to pay said interest when due because of any reason whatsoever. As monies are
withdrawn from the interest reserve fund the amounts so withdrawn shall be
replaced from the first monies available for that purpose.
Section 7. All monies held in the depreciation fund and the interest
reserve fund may be invested in direct obligations of the United States of
America which shall mature or which shall be subject to redemption by the holder
thereof at the option of such holder not later than five years from the date of
purchase thereof. Any profit or loss realized from such investment shall be
credited or charged to the respective account for which said investment was made.
Section 8. While the bonds authorized hereunder or any of them remain
outstanding or unpaid, rates charged for water shall be sufficient at all times
to pay the cost of operation and maintenance, to provide a depreciation fund, to
provide an interest reserve and to pay the principal of and interest on all
Water Revenue Bonds heretofore issued and issued hereunder. And there shall be
charged against all users of said water, including the City of Evanston, such
rates and amounts for water service as shall be adequate to meet the requirement
of this section. Compensation for services rendered the City shall be charged
against the City and payment for the same from the corporate funds shall be made
monthly into the Water Fund created by this ordinance as revenues derived from
the operation of the waterworks system in the same manner as other revenues are
required to be deposited.
Section 9. Any holder of a bond or bonds or any of the coupons of any
bond or bonds issued hereunder may ither in law or equity, by suit, action,
mandamus or other proceedings, enforce or compel performance of all duties re-
quired by this ordinance, including the making and collection of sufficient water
rates for that purpose and application of income and revenue therefrom.
Section 10. It is hereby covenanted and agreed that while any water
revenue bonds issued hereunder are outstanding, additional revenue bonds to share
ratably and equally in the income derived from the operation of said waterworks
system shall not be issued unless the revenues derived from the waterworks system
for the fiscal year then next preceding were sufficient to pay all costs of
operation and maintenance, provide the depreciation fund and interest reserve
fund herein provided for, and leave a balance equal to at least one hundred ten
per cent (110%) of the aggregate of (a) the principal and interest requirements
for such year on the bonds then outstanding (b) one year's interest on the total
issue of such additional bonds then proposed to be issued, and (c) an amount of
principal of such additional bonds computed by dividing the total amount of such
issue by the number of years to the final maturity date of such additional bond
issue.
Section 11. The City of Evanston hereby covenants and agrees with the
holder or holders of the bonds herein proposed to be issued, or any of them, that
it will punctually perform all duties with reference of said waterworks system
required by the Constitution and laws of the State of Illinois, including the
making and collecting of sufficient rates for water and segregating the revenues
of said plant and the application of the respective funds created by this ordi-
nance, and it hereby covenants and agrees not to sell, lease, loan, mortgage or
in any manner dispose of said waterworks system, including any and all extensions
and improvements that may be made thereto until all of the bonds herein author-
ized 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 bonds and
interest thereon in full; and the City further covenants and agrees with the
holders of said bonds to maintain in good condition, keep the same adequately
insured, covering all such risks usually covered by operators of similar proper-
ties, and continuously operate said waterworks system so long as any of the bonds
authorized hereunder are outstanding.
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Section 12. Provisions of this ordinance shall constitute a contract
between the City of Evanston and the holders of the bonds herein authorized to
be issued, and after the issuance of the bonds no changes, additions or alter-
ations of any kind shall be made in any manner hereto, except in accordance with
the provisions of this ordinance, or until such time as all of said bonds issued
hereunder and thereof shall be paid in full or unless or until provision shall
have been made for the payment of all bonds and interest thereon in full.
Section 13. That the bonds herein authorized shall be executed as in
this ordinance provided and be delivered to the Treasurer of said City and be by
. said Treasurer delivered to The First Boston Corporation, the purchaser thereof,
upon receipt of $4,000,440.00, plus accrued interest to date of delivery, being
the purchase price of said bonds, same being such that the interest cost to the
City of the money received from the bond issue does not exceed Three and one-half
per cent (32%) annually computed to maturity according to standard tables of bond
values. Contract for the sale of which heretofore entered into be and the same
is hereby ratified and approved. The proceeds of said bonds hereby authorized
derived from the sale thereof shall be used for the construction of the im-
provements and extensions to its municipally owned waterworks system in accordance
with plans and specifications therefor, prepared for that purpose, and heretofore
approved by this City Council and now on file in the office of the City Clerk and
open to the inspection of the public.
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Section 14. If any section, paragraph, clause or provision 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 ordi-
nance.
Section 15. Any accrued interest received from the sale of such bonds
shall be deposited in the bond and interest account of the said 'Water Fund and
applied toward the payment of interest next maturing after delivery of said bonds.
In the event the entire proceeds of the bonds issued hereunder are not
required for the purpose of improving and extending the waterworks system herein
described, the unused portion of said proceeds shall be deposited in the Water
Fund and used to pay principal or interest on the bonds of the City which, by
their terms are payable from the revenues of the waterworks system, or to retire
any of said bonds prior to maturity.
Section 16. 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 17. This ordinance after its passage and approval by the Mayor
shall be published once in the EVANSTON REVIEW a newspaper published and having
general circulation in the City of Evanston and if no petition is filed with the
Clerk of said City within twenty-one days after the publication of this ordinance,
by twenty per cent (20%) of the number of voters voting for Mayor at the last
preceding general election requesting the submission of the proposition of making
the improvements and extensions and issuing the bonds herein provided for to
the voters of said City, then this ordinance shall be in full force and effect as
provided by law.
INTRODUCED April 13, 1964
PASSED April 13, 1964
APPROVED April 13. 1964
ATTEST: /s/ Maurice F. Brown
City Clerk
APPROVED AS TO FORM: /s/ Jacky M. Sieeel
Corporation Counsel
PUBLISHED April 16, 1964
Is / John_ D. Emery
Mayor
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