HomeMy WebLinkAbout948523RECEIVED --109 at 12:04 PM
RECEIVINV 4F 948523
BOOK: 728 PAGE: 275 RJ060109/F
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY PROJECT AGREEMENT
STAR VALLEY RANCH WATER SUPPLY PROJECT
MSC No. 0,0` 275
1. Parties. The parties to this Agreement dated _rbly 0 Zoo f (the
date of the signature last affixed to this Agreement) are the STATE OF WYOMING, acting
by and through the WYOMING WATER DEVELOPMENT COMMISSION, the agency
authorized by law to enter into this Agreement [COMMISSION], and the TOWN OF STAR
VALLEY RANCH, Lincoln County, Wyoming, a duly organized municipality existing under
the laws of that state [SPONSOR].
2. Purpose of Agreement. The purpose of this Agreement is to implement the
provisions of 2009 Wyo. Sess. Laws, Ch. 38, authorizing the design, construction, and
operation of the Star Valley Ranch Water Supply [PROJECT]; describing the PROJECT;
specifying terms for funding the PROJECT; providing for financing through the
COMMISSION from the Wyoming water development account; and providing for an
appropriation. The PROJECT consists of the following components:
(a) Design and construction of a storage tank, well connection, pipelines; and
(b) Appurtenances necessary to make the PROJECT function in the manner
intended.
The final plans and specifications as prepared by a registered professional engineer
selected by the SPONSOR [SPONSOR'S ENGINEER] will further define the PROJECT
components.
3. Term of Agreement and Required Approvals. This Agreement is effective
when all parties have executed it and all approvals have been granted. This Agreement
shall remain in effect until all provisions and conditions set forth herein, including the
SPONSOR's repayment obligation, have been fully satisfied.
4. Special Provisions.
A. The STATE OF WYOMING has appropriated from the Water
Development Account created by Wyo. Stat. 41-2-124 (a)(i), to the COMMISSION, a sum
not to exceed TWO MILLION SIX HUNDRED TWENTY THOUSAND DOLLARS
($2,620,000.00.00) which shall be disbursed to the SPONSOR for the exclusive purpose of
completing the aforementioned PROJECT. The funds are divided as follows:
(1) A grant to the SPONSOR of not more than ONE MILLION SEVEN
HUNDRED FIFTY-FIVE THOUSAND FOUR HUNDRED DOLLARS ($1,755,400.00)
or sixty-seven percent (67%) of the actual development costs, whichever is less.
(2) A loan to the SPONSOR of not more than EIGHT HUNDRED SIXTY-FOUR
THOUSAND SIX HUNDRED DOLLARS ($864,600.00) or thirty-three percent (33%)
of the actual development costs, whichever is less, for a term of thirty (30) years at
an annual interest rate of four percent (4%).
B. Prior to the release of funds under this Agreement, the SPONSOR
shall submit to the COMMISSION a copy of a resolution approved by the town council
approving participation in this PROJECT, accepting the financing package, approving the
debt to be incurred, and approving Ilse repair and maintenaince account.
C. Prior to the release of any funds under this Agreement, the SPONSOR
shall execute a promissory note, secured by a mortgage or security agreement and
financing statement that encumbers, mortgages, warrants, grants, pledges and assigns to
the COMMISSION the fee interest the SPONSOR presently holds or hereafter acquires in
any facilities constructed under the terms of this Agreement or necessary for operation of
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the SPONSOR's water delivery system, by an assignment to the STATE OF WYOMING of
all easements, rights-of-way, water rights and permits required for the construction and
subsequent operation and maintenance of the SPONSOR's water delivery system and with
any other appropriate security instruments required by and in form acceptable to the
Wyoming Attorney General
D. The COMMISSION understands that because of the nature of the
PROJECT, funding may be required by the SPONSOR before some of the property
pledged as security in the mortgage is identified, completed or acquired. Therefore, the
COMMISSION has provided by this Agreement that said property may be acquired after
the mortgage is executed so long as it becomes subject to the mortgage when it is
acquired. The SPONSOR hereby agrees that any property identified in the mortgage shall
become subject to the mortgage upon acquisition and hereby agrees to execute addenda
to the mortgage, for property acquired after the mortgage described in Section 4.C. has
been executed which mortgages, warrants, or grants to the COMMISSION the interest held
in any after acquired property by the SPONSOR. The SPONSOR further agrees to acquire
the right to use and possess all of the property identified and pledged in the mortgage and
necessary for construction of any component of the PROJECT prior to advertising for bids
for that component of the PROJECT. After final disbursement of PROJECT funds to the
SPONSOR from the COMMISSION, the SPONSOR shall execute a final addendum, as
provided or approved by the COMMISSION, to the mortgage providing an adequate legal
description of all property pledged pursuant to this Agreement or the mortgage.
E. When PROJECT related benefits accrue to the SPONSOR, as
determined solely by the COMMISSION, the term of the loan shall commence. The
SPONSOR understands that the COMMISSION's determination of when benefits accrue
may not coincide with the SPONSOR'S ENGINEER's determination of substantial
completion. As soon as possible thereafter the total amount of the loan shall be
determined. An amount not to exceed FIFTY THOUSAND FIVE HUNDRED TWENTY-
SEVEN DOLLARS ($50,527.00) or thirty-three percent (33%) of the actual Level II well
construction costs, whichever is less, shall be added to the principal balance of the loan
described in Section 4.A. (2) when the COMMISSION determines that benefits accrue.
The first loan payment will be due on December first immediately following the one year
anniversary of the date benefits accrue. All subsequent payments will also be due on
December first except the final (thirtieth) payment which will be due on the thirtieth
anniversary of the date benefits accrue. Interest will be charged beginning with the date
benefits accrue to the SPONSOR. Therefore the first loan payment will include an interest
accrual period which is greater than one year which will make this first payment larger than
any of the subsequent payments.
F. Prior to the release of any funds under this Agreement, the SPONSOR
shall increase existing maintenance/sinking fund accounts by depositing not less than
Thirty-five Thousand Dollars ($35,000.00) per each year into the accounts until a Three
Hundred Fifty Thousand Dollars ($350,000) balance is reached; for repair and
maintenance of the water system. If requested by the COMMISSION, the SPONSOR will
submit a copy of its annual budget to the COMMISSION for verification of the existence
and amount of the required separate fund.
G. Funds disbursed under the terms of this Agreement may only be used,
upon approval by the COMMISSION in its sole and absolute discretion, to defray
construction costs identified in the final plans and specifications or authorized by approved
change orders, to pay for design and construction engineering services authorized by the
approved contract between the SPONSOR and the SPONSOR'S ENGINEER, to pay for
consuitants, permits, easements or land essential to construction of the PROJECT, and to
meet necessary and reasonable PROJECT expenses or costs not directly identified above
which have been granted prior written approval by the COMMISSION. Requests for prior
approval of necessary and reasonable PROJECT expenses shall be accompanied by
proposals describing the work, acquisition, or other expense, and detailed estimates of the
cost.
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H. The SPONSOR shall submit to the COMMISSION the plans,
specifications, and construction budgets. The COMMISSION shall have a reasonable time
from the date of receipt of said plans, specifications, and budgets to examine them and
submit comments. If it is reasonable to expect that the proposed PROJECT cannot be
constructed with the funds available, the SPONSOR shall be informed in writing and the
SPONSOR shall have a reasonable time within which to 1) provide such information as
may be required by the COMMISSION, or to make such authorized alterations to the
proposed PROJECT as are agreed upon by the parties and as are necessary to provide
the COMMISSION with a reasonable expectation that the PROJECT may be constructed
with the funds available, or 2) terminate the PROJECT. If the SPONSOR elects to
terminate the PROJECT, the total amount of loan funds disbursed prior to termination shall
be determined and the term of the loan shall commence.
1. Once the plans and specifications are in acceptable form and the
COMMISSION determines it is reasonable to expect that the PROJECT as proposed may
be constructed with the funds available, the COMMISSION shall so inform the SPONSOR
in writing, and the bidding process may be initiated. If the SPONSOR initiates the bidding
process without prior written notification by the COMMISSION, the SPONSOR shall bear
all costs resulting from said action.
J. Prior to advertising the PROJECT it will be necessary for the
SPONSOR to acquire or otherwise meet a series of prerequisites, which may include but
not necessarily be limited to:
(1) Right-of-way and option agreements;
(2) Easements on public lands, if required;
(3) Environmental assessments;
(4) Section 401, Clean Water Act, Certification;
(5) Section 404, Clean Water Act, Permit;
(6) DEQ Permit to Construct;
(7) Final Plans and Specifications approval by State Engineer;
(8) Incidental work required to prepare the PROJECT for construction; and
(9) Approval by the COMMISSION of final plans, specifications, and construction
budgets, which shall include revisions, deletions, or mitigation resulting from
meeting items (1) through (8) above.
K. Prior to advertising for bids the SPONSOR shall:
(1) Provide the COMMISSION with an attorney's title opinion, a letter and
documents from a title company or abstractor, or other proof and certification
acceptable to the COMMISSION that all access, easements, and rights-of-way for
the construction and long term operation and maintenance of the PROJECT have
been secured and recorded; and
(2) Provide to the COMMISSION from the SPONSOR'S ENGINEER its
proposed advertisement for bids including the rules and standards to be used to
establish the qualification of bidders, to determine whether submitted bids are
responsive to the advertisement for bids, to determine whether bidders are qualified
for the preference under Wyo. Stat. 16-6-101 et seq., and to determine the lowest
responsible bid.
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L. The SPONSOR shall not issue its advertisement for bids unless and
until the COMMISSION has received the submissions required under Sections 4.J. and
4.K., above. The SPONSOR shall not issue an award of the bid or any conditional award
of the bid without the review and written concurrence of the COMMISSION.
M. Disbursement of funds shall be made on the basis of requests from
the SPONSOR to the COMMISSION. Requests for the disbursement of funds shall be
certified by the SPONSOR or its designated representative and accompanied by material
invoices or other acceptable evidence of mature obligations, which may include periodic
construction pay estimates approved by the SPONSOR'S ENGINEER. Upon review and
approval by the COMMISSION, requests will be processed and disbursements will be
electronically transferred to the SPONSOR or delivered to the representative of the
SPONSOR designated as being responsible for receiving disbursements. Funds released
to the SPONSOR shall be received and accounted for separately from all other funds of
the SPONSOR.
N. Sixty-seven percent (67%) of each disbursement from the
COMMISSION authorized under the terms of this Agreement shall be from grant funds and
thirty-three percent (33%) shall be from loan funds. The SPONSOR is responsible to
complete the PROJECT and provide any funding in excess of that available from the
COMMISSION from other sources.
0. The SPONSOR shall use funds disbursed by the COMMISSION
immediately upon receipt strictly in accordance with the requests for payment submitted by
the SPONSOR and approved by the COMMISSION. If at any time after execution of this
Agreement and before one year after the date of final payment to the SPONSOR, the
COMMISSION requests an audit of funds disbursed, the SPONSOR agrees to submit to
and cooperate with the audit conducted by duly authorized representatives of the
COMMISSION.
P. Contract specific retainages will be directed by the COMMISSION in
accordance with Wyoming law. The COMMISSION at its discretion may approve
reductions in the accumulated retainage as specified in individual contracts between the
SPONSOR and its contractors when requested by the SPONSOR and recommended by
the SPONSOR'S ENGINEER to the extent permitted by law. In any event, the balance of
accumulated retainages will be released when final payment is made.
shall:
Q. As conditions for disbursing funds to the SPONSOR, the SPONSOR
(1) Provide to the COMMISSION for prior examination of and concurrence with
all contracts to be executed by the SPONSOR for all work contemplated by this
Agreement and any changes or work orders for items not covered in the contract
documents.
(2) Provide to the COMMISSION for examination all plans and specifications
prepared and any bids received.
(3) The SPONSOR shall require the SPONSOR'S ENGINEER to hold progress
review meetings at the 10%, 50% and 90% levels of completion of the PROJECT
plans.
(4) If Wyo. Stat. 16-6-701 through 16-6-706 are applicable to the SPONSOR, the
SPONSOR shall provide all prospective contractors with a package of Contractor
Retainage Account forms supplied or approved by the COMMISSION as part of the
bid package.
(5) The SPONSOR'S ENGINEER shall provide to the COMMISSION a summary
of bids received.
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(6) Communicate to the COMMISSION all information on all aspects of the
PROJECT and require that the SPONSOR'S ENGINEER submit or make available
for inspection, such reports on the progress of the work and on the results of tests
of materials and workmanship requested by the COMMISSION.
(7) Provide to the COMMISSION for review the qualifications of the engineering
or consulting firm proposed by the SPONSOR to design inspect and monitor
construction of the PROJECT. Said examination shall include, but not be limited to,
supervisory position assignments. Any changes to engineering or consulting firm
personnel assigned to the PROJECT are subject to review by the COMMISSION.
R. Disbursement of funds for final payment to a contractor shall be made
following an inspection of the completed PROJECT by the COMMISSION and upon
inspection and certification of completion by the SPONSOR'S ENGINEER. Prior to final
disbursement of funds, the SPONSOR shall furnish the COMMISSION proof in affidavit
form that all claims, liens, or other obligations for the PROJECT have been properly paid
and settled or will be paid and settled from the final disbursement. Further, the SPONSOR
shall have published notice of completion and final settlement in a newspaper allowing forty
(40) days for parties to present claims for payment due prior to the date of final payment,
according to law.
S. The SPONSOR shall provide the COMMISSION with a certified copy
of the as-constructed PROJECT plans and a copy of the operation and maintenance
manual.
T. Representatives of the COMMISSION shall have the right of ingress
and egress to enter upon the premises at any time, along established easements, for the
purpose of inspection during construction of the PROJECT described in this Agreement,
and during the term of the mortgage contemplated by this Agreement, for as long as there
remains any balance thereof unpaid. The SPONSOR shall not be responsible for the
safety of such representatives of the COMMISSION while they are on or about the
premises.
U. The SPONSOR shall complete the PROJECT and shall be responsible
for operation and maintenance of the PROJECT in accordance with accepted engineering
practices. The SPONSOR shall be responsible for all costs, including labor, for all
operation, maintenance and repairs. In addition, the SPONSOR shall complete the
PROJECT no later than the reversion date of July 1, 2014 and shall have settled all claims
and paid all PROJECT expenses by that date. No funds will be paid by the COMMISSION
after the reversion date specified, and the SPONSOR shall be solely responsible for
payment of any expenses incurred or claims received after said date.
V. The loan and grant are subject to the following conditions regarding
management of the completed PROJECT, restrictions on the sale of water, restrictions on
the sale of the PROJECT, and loan repayment:
(1) There shall be no lease, sale, assignment or transfer of ownership of water
from the PROJECT for purposes other than the SPONSOR's municipal and rural
domestic use as determined by the COMMISSION in its sole and absolute
discretion without written prior approval of the COMMISSION and approval of the
State Engineer or Board of Control. If such a transaction is approved, the revenues
generated by the.lease, sale, assignment, or transfer of ownership of water from the
PROJECT shall be utilized to retire principal on the loan described in Section 4.A.(2)
of this Agreement. After that loan is paid in full the SPONSOR shall receive thirty-
three percent (33%) of the revenues generated by the lease, sale, assignment or
transfer of ownership of water from the PROJECT for purposes other than municipal
and rural domestic use and the State of Wyoming shall receive sixty-seven percent
(67%) of the revenues generated by the lease, sale, assignment or transfer of
ownership of water from the PROJECT. If the SPONSOR has any pre-existing
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contracts or commitments for the sale of water which might apply to these
conditions, the SPONSOR shall submit evidence of such commitments to the
COMMISSION within ten (10) days of the execution of this Agreement for review
and declaration of exemption.
(2) There shall be no lease, sale, assignment or transfer of ownership of the
PROJECT until the loan described in Section 4.A.(2) of this Agreement is paid in
full, and until prior written approval is obtained from the COMMISSION. If these
conditions are met, the SPONSOR shall receive thirty-three percent (33%) and the
State of Wyoming shall receive sixty-seven percent (67%) of the revenues
generated by the lease, sale, assignment or transfer of ownership of the PROJECT.
Before the SPONSOR may lease, sell, assign or transfer ownership of the
PROJECT, the State of Wyoming shall be given a one (1) year first right of refusal
option to purchase the SPONSOR's interest in the PROJECT for an amount equal
to the principal, interest, maintenance and replacement costs incurred by the
SPONSOR at the date the option is exercised.
(3) After the loan described in Section 4.A.(2) of this Agreement is paid in full,
the SPONSOR may purchase the position of the State of Wyoming, as described in
subsections (1) and (2) of this Section, for the amount of the grant described in
Section 4.A.(1) of this Agreement plus the interest that would have accrued on the
grant amount in the water development account from the date the PROJECT was
substantially completed as defined by the COMMISSION. The interest that would
have accrued on the grant amount shall be established by the State Auditor.
W. If through any cause, either party shall fail to fulfill in a timely and
proper manner its obligations under this Agreement, or if either party shall violate any of
the covenants, agreements, or stipulations of this document, the other party shall
thereupon have the right to terminate this Agreement if such default or violation is not
corrected within thirty (30) days after submitting written notice to the defaulting party. If this
Agreement is terminated, the principal amount of the loan is set, and repayment shall begin
on the first anniversary of the date of termination or continue as scheduled if repayment
has already begun. If the COMMISSION determines that the SPONSOR has, without good
cause, abandoned completion of the PROJECT, the SPONSOR, in addition to being
required to repay the loan, shall be obligated to immediately repay the full amount of all
grant funds actually expended plus interest as established by the State Auditor in an
amount equal to the interest that would have accrued on the expended grant funds in the
water development account from the date of expenditure.
X. Notwithstanding the above, the SPONSOR shall not be relieved of
liability to the COMMISSION for damages sustained by the COMMISSION by virtue of any
breach of this Agreement by the SPONSOR, and the COMMISSION may withhold any
payments to the SPONSOR for the purposes of set off until such time as the exact amount
of damages due the COMMISSION from the SPONSOR is determined. In the event of
default or the SPONSOR's negligent or intentional failure to complete the PROJECT, the
COMMISSION shall have the right of set off against any State of Wyoming accounts or
sources of funding designated for use by, or on behalf of the SPONSOR for the full amount
owed to the COMMISSION pursuant to this Project Agreement.
5. General Provisions.
A. Amendments. Any changes, modifications, revisions or amendments
to this Agreement which are mutually agreed upon by the parties to this Agreement shall
be incorporated by written instrument, executed and signed by all parties to this
Agreement.
B. Applicable Law. The construction, interpretation and enforcement of
this Agreement shall be governed by the laws of the State of Wyoming. The Courts of the
State of Wyoming shall have jurisdiction over this Agreement and the parties, and the
venue shall be the First Judicial District, Laramie County, Wyoming. The parties intend and
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agree that the State of Wyoming and the COMMISSION do not waive sovereign immunity
by entering into this Agreement and specifically retain immunity and all defenses available
to them as sovereigns pursuant to Wyo. Stat. 1-39-104(a) and all other applicable law.
C. AuditlAccess to Records. The COMMISSION and any of its
representatives shall have access to any books, documents, papers, and records of the
SPONSOR which are pertinent to this Agreement.
D. Availability of Funds. Each payment obligation of the COMMISSION
is conditioned upon the availability of government funds which are appropriated or
allocated for the payment of this obligation. If funds are not allocated and available for the
continuance of the services performed by the SPONSOR, the Agreement may be
terminated by the COMMISSION at the end of the period for which the funds are available.
The COMMISSION shall notify the SPONSOR at the earliest possible time of the services
which will or may be affected by a shortage of funds. No penalty shall accrue to the
COMMISSION in the event this provision is exercised, and the COMMISSION shall not be
obligated or liable for any future payments due or for any damages as a result of
termination under this Section. This provision shall not be construed to permit the
COMMISSION to terminate this Agreement in order to acquire similar services from
another party.
E. Compliance with Laws. The SPONSOR shall keep informed of and
comply with all applicable federal, state and local laws and regulations in the performance
of this Agreement, including but not limited to laws and regulations governing assessment
processes, public bidding, public works and contractor retainage. The SPONSOR shall
comply with all resident and other preference requirements, including but not limited to
those applicable to labor, materials and subcontractors.
F. Entirety of Agreement. This Agreement, consisting of nine (9) pages
represents the entire and integrated Agreement between the parties and supersedes all
prior negotiations, representations, and agreements, whether written or oral.
G. Indemnification. The SPONSOR shall release, indemnify, and hold
harmless the State of Wyoming, the COMMISSION, their commissioners, officers, agents,
employees, successors and assignees from any cause of action, or claims, charges or
costs, including attorney's fees and expert witness fees, or demands of any sort arising out
of, directly or indirectly, the SPONSOR's performance or failure to perform under this
Agreement.
H. Independent Contractor. The SPONSOR shall function as an
independent contractor for the purposes of this Agreement. No joint venture, partnership,
employer/employee or principal/agent relationship between the parties hereto is created by
this Agreement. The SPONSOR shall assume sole responsibility for any debts or liabilities
that may be incurred by the SPONSOR in fulfilling the terms of this Agreement. Nothing in
this Agreement shall be interpreted as authorizing the SPONSOR or its agents or
employees to act as an agent or representative for or on behalf of the State of Wyoming or
the COMMISSION, or to incur any obligation of any kind on the behalf of the State of
Wyoming or the COMMISSION.
1. Notice. All notices arising out of, or from, the provisions of this
Agreement shall be in writing and given to the parties either by regular mail or delivery in
person.
J. Prior Approval. This Agreement shall not be binding upon either
party, no services shall be performed under the terms of this Agreement, and the Wyoming
State Auditor shall not draw warrants for payment on this Agreement, until this Agreement
has been reduced to writing, approved by the Office of the Attorney General, filed with and
approved by the Department of Administration and Information.
K. Severability. Should any portion of this Agreement be judicially
determined to be illegal or unenforceable, the remainder of the Agreement shall continue in
full force and effect, and either party may renegotiate the terms affected by the severance.
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L. Sovereign Immunity. The State of Wyoming and the COMMISSION
do not waive sovereign immunity by entering into this Agreement and the SPONSOR does
not waive governmental immunity, and each specifically retains all immunities and
defenses available to them as sovereigns or governmental entities pursuant to Wyo. Stat.
1-39-101, et seq., and all other state law. Designations of venue, choice of law,
enforcement actions, and similar provisions should not be construed as a waiver of
sovereign immunity. The parties agree that any ambiguity in this Agreement shall not be
strictly construed, either against or for either party, except that any ambiguity as to
sovereign immunity shall be construed in favor of sovereign immunity.
M. Third Party Beneficiary Rights. The parties do not intend to create
in any other individual or entity the status of third party beneficiary, and this Agreement
shall not be construed so as to create such status. The rights, duties, and obligations
contained in this Agreement shall operate only between the parties to this Agreement. The
provisions of this Agreement are intended only to assist the parties in determining and
performing their obligations under this Agreement. The parties to this Agreement intend
and expressly agree that only parties signatory to this Agreement shall have any legal or
equitable right to seek to enforce this Agreement, to seek any remedy arising out of a
party's performance or failure to perform any term or condition of this Agreement, or to
bring an action for the breach of this Agreement.
N. Waiver. The waiver of any breach of any term or condition of this
Agreement shall not be deemed a waiver of any prior or subsequent breach.
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6. Signatures. In witness thereof, the parties to this Agreement, through their
duly authorized representatives, have executed this Agreement on the days and dates set
out below, and certify that they have read, understood, and agreed to the terms and
conditions of this Agreement.
WYOMING WATER DEVELOPMENT COMMISSION
Iliam E. Bensel, Chairman
i/ .
Mitchel T. Cottenoir, Secretary
ATTEST:
TOWN OF STAR VALLEY RANCH
, Mayor
ATTEST:
tt• tti TAr;;~ .
Brenda Bauer, Town Clerk W
N
Q'ty
ATTORNEY GENERAL'S OFFICE AO ift VAL AS TO FORM
S. Jane Caton
Senior Assistant Attorney General
Cr'--- 3
Date
G Z'5 d
Date
0
D to
Date
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