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Village of Maryville, Illinois

Description Caucus Minutes
Date10/25/2006 Location Council Chamber
Time Speaker Note
6:30:05 PM Gulledge Called the Caucus meeting of Wednesday, October 25, 2006 to order. Commented they will delay the meeting in anticipation of Trustee Callahan, who is just pulling in to the parking lot, so as to obtain a quorum. He invited those in attendance to join in the Pledge of Allegiance. After the Pledge, Callahan arrived and was seated. Mayor asked for a roll of those officers present. Answering the roll call were Trustees Callahan, Kostyshock and Garcia. Limberg, Schmidt and Bell were absent. Also in attendance were Clerk Long, Deputy Clerk Fenton, Police Chief Schardan, Public Works Director Presson, Comptroller Brussatti, two (2) representatives from employee benefits brokerage firm Baugher Financial & Associates, and three (3) reporters.
6:32:04 PM Gulledge Called for approval of the October 11th meeting minutes. Motion to approve was made by Kostyshock and seconded by Garcia. Voting on the motion: Callahan - yes; Kostyshock - yes; Garcia - yes. Motion carried.
6:32:35 PM Gulledge Commented the first agenda item, Jan Ennen-Discussion on Deduct Meters has been cancelled at Ennen's request. Went to next item and stated Ben Crowder with Baugher Financial is here to discuss the health insurance bid. Stated he and Brussatti have been working with Crowder on possible health insurance for employees.
6:33:15 PM Ben Crowder 2323 Locust Ave., #403, St. Louis, Missouri, 63103.
6:33:29 PM Gulledge Explained he and Brussatti started discussions with Ben a few months ago, as they were concerned with the rising premiums for health insurance for employees. Commented he received good recommendations from others that have worked with Baugher Financial. Asked Crowder to discuss.
6:34:23 PM Crowder Introduced Brittany Ribbing, who is in attendance to help him. Explained he is an employee benefits broker for Baugher Financial. Explained the company does strictly employee benefits. Presented the prepared information packet for inclusion in the record. Referred to the first two pages, saying these list the services offered by his company. Discussed the market analysis, which is done on an annual basis. Explained they send out a census of all employees to a list of insurance companies with which they work for quote purposes. Stated each year, customers will get a renewal proposal as well as competitive quotes from other companies. Stated this allows a perspective of where the company is, as well as allows them to leverage insurance companies against each other. Commented quotes will be identical no matter what broker a company deals with. Explained the numbers are not controlled by the broker. If the broker negotiates new numbers, everyone has access to these numbers; as soon as a price is negotiated, it has to be offered to every broker working on the case. Next, explained enrollment services, saying his company helps facilitate any additions, changes, etc. Stated his office provides copies of all paperwork to the Village and the insurance company, as well as retaining their own files. Stated a Baugher representative will be on site at least two hours per month. At this time, they will facilitate enrollment services for new hires, as well as resolve existing employee issues. Added they are also available every day at their office, 8:00 a.m. to 5:00 p.m. Next, explained the Employee Benefit Summary New-Hire Packet, which is a clear cut outline highlighting benefits the Village may have should they do business with Baugher. Stated this is what they will use to enroll employees in the future. Stated it is a simple form for people to use as a reference tool. Next, explained COBRA services upon termination of employment. Stated when termination notice is sent to their office, COBRA information is automatically sent out. Stated there is no charge for this service except for certified mail postage. Went to annual enrollment notification and miscellaneous consulting services, saying the miscellaneous service is a reiteration of the understanding that his office is available 8:00 a.m. to 5:00 p.m. Stated they encourage employees to call their office with problems versus calling the insurance company directly, as issues get resolved quicker and easier. Commented they do benefits for over 325 companies, and have been told they are the third or fourth largest service company in St. Louis, and the largest in Southern Illinois. Opened the discussion to questions. There were none. Went to explanation of work done so far. Explained the market analysis that was done. After obtaining information on the number of employees at the Village, he looked at the list to determine what insurance companies would be interested in quoting. Stated they received quotes from Blue Cross/Blue Shield; Aetna; Allied National; Destiny Health; GHP; Principal; United Healthcare. Commented they were declined quotes by Midwest Security and Assurant. Explained the meaning of quote: Quotes are always best-case scenarios, meaning this is the cheapest they will sell insurance to the Village. Explained Baugher Financial, Mayor and Brussatti went through that information to decide which company looked best, and decided Blue Cross/Blue Shield was the most competitive. Explained in order to get a final number, representatives of Baugher met with all Village employees to gather medical information, which they submitted to the insurance company. Explained the company then reviews the information and provides a final number. Referred to the sheet which compares final numbers with current numbers of the Illinois Plan. Referred to the medical page of the packet and explained he provided a side-by-side comparison for medical, dental, vision and life insurance. Stated he compared major points versus going into a lot of detail. Discussed the specific comparison (copy attached).
6:52:10 PM Callahan Asked who they use for prescription coverage.
6:52:14 PM Crowder Answered Blue Cross uses Prime, compared to the Illinois Plan using Medco. Commented the local government health plan number has been omitted because it is sold as a package including medical, dental and vision. Commented on the rate comparison (see attached). Went to dental and vision insurance, explaining the dental insurance company is Guardian. Explained this company works entirely different than the current plan. The Illinois current plan operates on a schedule of benefits, which means there is a schedule of every dental procedure and a set price that the plan will pay for each service. Stated the current plan carries a$100 deductible; the proposed plan offers a $50 deductible. Explained the services are broken down into four categories: preventative (cleanings, x-rays, etc.), basic (fillings, simple extractions etc.), major (crowns, bridge work, etc.), and orthodontia. Commented there is an in and out of network benefit. Clarified that there are not many providers in Guardian, as is the case with most providers. Stated most dental works this way, as most dentists don't want to join a network due to the bigger discounts they must take for services provided. Stated whether in or out of network, cleaning is covered at 100%; however they will cover 100% of what 9 out of 10 dentists charge in the area. Stated the deductible does not apply to cleanings. Stated the $50 deductible only applies to out of network basic and major services. These services are covered at 90% in network or 80% out of network after the deductible. Stated under the Village plan, the annual plan maximum is $2,000; Guardian is $1,500. Stated they will change it to $2,000 if the Village so desires; however statistically less than 8% of people ever meet their annual maximum. Stated the lifetime orthodontia maximum is $1,500 currently, and is $1,500 with Guardian. Went over employee costs (see attached). Went to vision insurance. Stated they use Vision Service Provider (VSP), which is a nationwide company. Compared coverage and co-pays (see attached). Commented there are lots of providers in-network. Commented everything is nearly covered in full. Commented out of network options institute an allowance amount. Discussed employee costs (see attached). Went to life insurance. Pointed out the Village plan cost does not include life insurance; this proposal does. Compared costs (see attached).
7:02:10 PM Long Asked if there is an age limit for life insurance.
7:02:15 PM Crowder Answered there is a reduction in benefits beyond age of 65.
7:02:33 PM Callahan Asked if they offer the ability for the employee to buy additional life insurance.
7:02:39 PM Crowder Answered it is not included in the proposal, but can be done. Stated it is a voluntary term life insurance program, where the life insurance has no savings value, cannot be cashed in, etc.
7:03:08 PM Gulledge Clarified term is all they have currently.
7:03:11 PM Crowder Answered that is correct. Answered a lot of times it is set up where the employee has the ability to elect an amount, i.e., $25,000, $50,000, $75,000 or $100,000. Explained typically there are one or two medical questions that, if answered no, guarantees the employee a certain amount; if answered yes, the guaranteed amount is much lower. Commented this is a voluntary benefit at no cost to the Village.
7:03:46 PM Callahan Asked for a quote of how much it would be to offer the employees more insurance, i.e.,$2 per every $10,000.
7:03:58 PM Crowder Answered he could not say; it may be less expensive.
7:04:16 PM Gulledge Stated they are interested in seeing what can be bought for the $4.40 amount paid currently.
7:04:41 PM Crowder Answered he will look into it.
7:05:09 PM Kostyshock Asked if the term insurance is based on age.
7:05:15 PM Crowder Answered no. Stated it is provided based on the census submitted to the insurance company.
7:05:41 PM Long Commented hers dropped to $5,000.
7:05:42 PM Crowder Commented most of the insurance companies they deal with drop the benefit by 35% at age 65. Commented once the benefit drops, the cost to the Village also drops. Went to totals page and discussed. Commented the local government health plan includes dental and vision; the proposal does not, which necessitated a break-down. Explained and compared the totals (see attached). Commented the current plan does not have a four-tier rate, as the proposal does and is typical of most plans. Concluded by pointing out the total proposed monthly premium is less than $20,000 for comparable if not slightly better benefits, versus the current cost of $28,000 per month. Stated this brings the total estimated first-year savings of over $115,000. Went on to discuss concurrent years. Explained it is common to switch insurance companies, and most of his clients switch on average once every three (3) years, because a better opportunity comes up. Reiterated the market analysis is done every year to facilitate this process. Referred to the handout and explained for purposes of example, he estimated significant increases for years two and three. Commented this year there was a 14% increase from the local government health plan. Stated he estimated a 30% increase from Blue Cross after one year, and 15% from the local government health care, which is an annual savings in year two of $81,000. Commented he has never seen a 30% increase in a dental or vision program. Went on to explain his estimate for year three of another 30% increase from year two for the proposal, and another 15% for the local government plan. Commented the trend for health insurance right now is 12% to 13% per year. Stated even with the inflated estimates, they are still looking at a third year savings of $47,000. Opened the discussion to questions.
7:11:45 PM Garcia Asked if this is an HMO.
7:11:51 PM Crowder Answered no, this is a PPO. Stated HMOs are not popular. Explained with a PPO, there is no primary care physician or referral requirements.
7:12:22 PM Callahan Asked how he arrived at the estimated first year savings figure.
7:12:30 PM Crowder Explained he took the monthly premium, multiplied by twelve (12) and subtracted the difference.
7:12:51 PM Callahan Commented the math is incorrect on the handout. Asked about the figures at the bottom of the handout.
7:13:36 PM Crowder Explained that is the original number plus 30%. Further explained the number below that is $25,000 multiplied by 1.3. Commented he will re-check the calculations upon his return to the office.
7:14:20 PM Gulledge Commented the Village switched insurance several years ago for a savings and better benefits; shortly thereafter the rates increased quite a bit. Explained at that time they found out they couldn't get back into the current pool. Stated he was concerned about it happening again. Explained he asked Baugher to contact Blue Cross, who gave him the statistic over five (5) years the average was a 12% increase. Commented his opinion there are some avenues of advantage because they are a brokerage company. Commented he uses Village insurance, and doesn't care which company is used as long as it provides for his needs. Commented this is not just about savings for the Village but giving the employees as good or better coverage.
7:17:01 PM Crowder Commented there is nothing for Baugher Financial to hide, as the more they educate the consumer, the more they avoid surprises in the future. Commented they do benefits for several other public entities, such as school districts, local cities, etc. Explained they re-evaluate the savings every year.
7:19:13 PM Kostyshock Asked how they come up with the term insurance number; is it an average of all employees.
7:19:22 PM Crowder Answered it was based on the census. Explained not all employees enrolled in health insurance; at last count 36 employees were enrolled in health insurance, with 43 total employees. Explained because life insurance is a 100% employer-paid benefit, all 43 people are enrolled. Explained he took 43 people multiplied by the cost to come up with the figure.
7:19:53 PM Kostyshock Asked if term insurance is based on age, i.e. the younger an individual, the cheaper the cost.
7:19:57 PM Crower Answered yes, on an individual basis; however not in this case, as they use an average of everybody's age and sex, after which the company provides a rate that is equal for everyone.
7:20:38 PM Kostyshock Commented this means individually the cost could be cheaper.
7:20:46 PM Crowder Answered yes. Commented it is inexpensive for younger people, and more expensive for older. Commented he is unaware of any companies that purchase individual plans for each employee.
7:21:14 PM Garcia Commented all of the formulas on the handout are incorrect.
7:21:39 PM Callahan Commented the correct savings figure is approximately $30,000. Commented he understands the figures are significantly different; however these numbers are not helpful as the math is incorrect. Crowder apologized for the oversight. Callahan asked what the experience was with various Blue Cross companies in term of whether this is a "teaser" rate that will increase significantly. Clarified his question is will they raise rates according to demand or will they try to "catch up" plus cost of increase.
7:23:12 PM Crowder Commented his opinion that is many times the philosophy of insurance companies. Explained that is prevented because Blue Cross reps are compensated for maintaining their groups for at least two years. Stated this is how Baugher uses companies against each other. Commented Blue Cross has said they want to keep the group for a certain amount of time; however he does not believe that the Village will be with Blue Cross in four (4) or five (5) years.
7:24:24 PM Callahan Commented he appreciates the work done by Brussatti and Mayor; it is a bigger difference than he expected. Reminded the Board that shopping is fine as long as there is not an employee or dependent  with a serious problem. Commented in the past they have been prevented from moving on due to existing health issues. Commented in the future they may be faced with this situation.
7:25:10 PM Crowder Commented the final rate shown is higher by 28% than the original quote, based on the census information submitted. Explained, should they attempt to move, they cannot be denied coverage; however they can get a huge rate increase. Encouraged the Board to keep in mind, a pool of 40-plus people is large.
7:26:41 PM Gulledge Agreed with Callahan; however they are under this scenario now, as rates have been 15% and up.
7:27:19 PM Callahan Commented the Village is in a bigger pool with the state, as they don't rate the Village individually. Commented his opinion that this is a good savings; however they should not be shocked when the rate goes up significantly next year.
7:27:40 PM Gulledge Commented this is an unknown; however the point with the current insurance company is if the Village leaves it, they cannot get back into it for two (2) years.
7:28:03 PM Crowder Commented if it were an instance where the Village felt it would be in its best interest to return to the State after year two, they would have to get an awfully large increase from Blue Cross and not be able to negotiate at all in year two. More comments were made regarding the yearly review process.
7:30:08 PM Callahan Asked if the life insurance can be based on salary, i.e., offer a benefit equivalent to the employee's yearly salary figure.
7:30:21 PM Crowder Answered yes; there are many options in this area.
7:30:32 PM Callahan Commented he would like to see the cost of a minimum benefit of $25,000 or 1 times salary.
7:30:48 PM Crowder Answered he will look into this. Stated he will fix the calculations on the spreadsheet tomorrow.
7:31:25 PM Callahan Asked how they are locked in to the State.
7:31:30 PM Gulledge Answered they have to give 30 days notice of termination. Stated, as an example, if they go forward here and decide on the change at the first meeting in November, they would pay one month's premium, send cancellation notice, and would be picked up December 1st by the new company. Explained they would be paying a month in advance, not double -paying a month.
7:32:32 PM Crowder Commented these rates are good for a December 1st effective date. Blue Cross requires a binder check for the amount of the quote, which goes towards the first month's premium if the Village chooses to go to Blue Cross; if the Village declines, the check is returned.
7:33:18 PM Callahan Asked if the numbers included in the spreadsheet are the costs the Village pays or the combined employee and Village cost.
7:33:42 PM Brussatti Answered the numbers reflected are exactly what is paid to the State, which includes both the Village and employee contribution.
7:34:01 PM Callahan Asked if they will pass the savings on to the employees.
7:34:24 PM Gulledge Answered his opinion is these are two separate issues: The first is whether they switch insurance; after that is decided, they should decide whether they work with the employees on a different percentage.
7:35:19 PM Callahan Explained it is an important point, as the savings is not 100% to the Village, but is combined at a percentage with the employees.
7:36:09 PM Gulledge Commented his understanding and agreement, and reiterated it is an issue that needs to be looked at by the Board at a subsequent meeting. Stated they need to get the numbers corrected and answer the life insurance questions. Asked if they come back to the second meeting of November, which would be the 8th, would they still have time to approve the decision at the Board meeting on the 15th. Commented the problem is giving notice to the current insurance carrier.
7:37:49 PM Crowder Commented it is his experience that companies will be flexible on terminations.
7:38:27 PM Gulledge Asked Brussatti's feeling on the issue.
7:38:32 PM Brussatti Commented the supervisor at the local government health plan indicated they have had instances where they have only received two weeks' notice. Commented he is not sure there is a lot the company can do.
7:38:56 PM Gulledge Stated they will check on the issue. Asked Crowder to get revised numbers to Brussatti, who will make sure they get distributed to all Trustees. Stated they will tentatively have Crowder come back on November 8th. More comments were made as to the termination policy.
7:40:00 PM Brussatti Stated he will check the next day to find out if there is a penalty for less than thirty days' notice.
7:40:19 PM Gulledge Asked Trustees opinion on moving the date to the 1st. All agreed. Thanked Crowder for his presentation. Went to next agenda item and asked Schardan to discuss.
7:41:09 PM Schardan Discussed the mitigation plan. Stated it is required by Homeland Security for NIMS compliance. Stated Madison County has completed a plan, and instead of Maryville doing their own, they can adopt the county's and submit it to FEMA and IEMA. Stated this is his recommendation.
7:41:55 PM Gulledge Asked for questions. There were none. Stated the item will be put on the agenda for the next Board meeting. Thanked Schardan for taking the lead on the program, as well as everyone else that was involved. Stated he has the plan and will bring it to the next meeting for the Trustees review. Went to next agenda item, and asked Schardan to discuss the new police cars. Before Schardan started the discussion, Mayor stated that Jolene Henry had called about advertising the Cadillac, and upon calling to check on it was informed there was a mistake and it did not get in the paper. Commented he plans to include all three vehicles in the sale advertisement so as to save money.
7:43:31 PM Long Commented the ad was supposed to be in Tuesday's paper, and it will be in Saturday and Sunday's paper. Stated Belleville News Democrat is supposed to send Henry a copy and notification. Callahan clarified that is just for the Cadillac. Long answered yes, and they are accepting sealed bids. Mayor commented that the police vehicles were added to the advertisement. Instructed Schardan to discuss the vehicles.
7:44:04 PM Schardan Stated he is asking that Units 144 and 148 be declared surplus property. Explained 144 is the Dodge Intrepid, which has approximately 70,000 miles on it and has had numerous problems. Stated they are converting the Mayor's old car to a squad car, and are removing everything from 144 to facilitate the conversion. Stated the 2006 will be delivered tomorrow, at which time they will get rid of Unit 148, which is a Chevrolet Impala with approximately 100,000 miles. Commented the officer that drives it informed him it still runs excellent.
7:45:25 PM Gulledge Commented before the cars can be sold, the Board must pass an ordinance declaring them as surplus property.
7:45:38 PM Callahan Asked if the Cadillac has been declared surplus.
7:45:40 PM Gulledge Answered yes, a long time ago; however they have been unable to sell it. Asked the Trustees to go along with this plan to facilitate the lawyer drawing up the appropriate paperwork. All agreed. Asked if there were any other questions for the Chief. There were none.
7:46:15 PM Schardan Reminded all of the Halloween Party scheduled for next Tuesday night from 6:00 p.m. to 8:30 p.m. at Maryville Grade School.
7:46:25 PM Gulledge Went to next item. Explained Trustee Bell's absence is due to his wife's surgery. Stated on his behalf, he is bringing up the issue of the old network switch. Stated the Village upgraded the switch and can no longer use the old switch. Stated Computron has an interested party that will give $300 for it. Stated this must first be declared surplus property. All Trustees agreed.
7:47:26 PM Gulledge Went to next agenda item, an ordinance amending the subdivision code. Explained occasionally they have a single plat or small subdivision. Stated there are not enough fees to cover the cost of the preliminary plat. In addition, most do not have an inspection fee, as there are no improvements. Stated this has been discussed for several months. Pointed out the only two changes to the ordinance: currently the preliminary plat review is $150 plus $15 for each lot; "or actual cost incurred by the Village" has been added. Explained they are not raising filing fees, they are only adding a clause to recoup costs. Explained the same is being done for inspection and testing fees. Explained this saves the Village from losing money. Explained the fees have to be paid out of the building fee, and his feeling is the building permit fee is the Village's anyway. He asked for questions. Commented Edwardsville has a similar ordinance. There were no questions. Stated they will have to hold a public hearing first, and then the issue will be brought to the Board for approval. He asked the Trustees opinion. All agreed.
7:50:40 PM Gulledge Commented they will skip Calendar Updates as there is no computer with which to display/make changes. Went to To Do List, page 1. Commented on the sealed bids for the Cadillac. There were no other comments. Went to page 2.
7:51:19 PM Callahan Commented the Communication Consolidation and Feasibility Study can be removed from the List.
7:51:34 PM Gulledge Agreed. Went to page 3.
7:51:44 PM Callahan Asked what the additional parking item is under parks.
7:51:54 PM Gulledge Answered they are looking for additional parking on Parkview Drive for Drost Park.
7:52:18 PM Callahan Clarified this is planned on ground the Village already owns.
7:52:22 PM Gulledge It is on the walking trail, which is owned by Madison County Transit. Went to Trustees Comments
7:52:39 PM Callahan Commented on the amount of signs being displayed, saying the political signs are out of control. Mayor asked what he means about the political signs. Callahan answered he thinks some are illegal by ordinance. Commented on the amount of signs out. Mayor commented he should give the list to Schardan to be checked. Callahan further commented the signs continue to be an issue. Stated his opinion that they should be ticketing offenders. Commented on the number of political signs on certain lots.
7:54:00 PM Gulledge Commented there is no limit as to the number of signs allowed; only on size and time frames for display.
7:54:13 PM Callahan Commented signs is one of his "pet peeves", and it does not seem like it's getting any better.
7:54:31 PM Kostyshock Commented that the large item pickup started this week, and Allied has done a good job in his neighborhood.
7:54:51 PM Garcia Gave a reminder of the benefit for Justin Peterson scheduled for Saturday at Mother of Perpetual Help Church in Maryville from 8:00 a.m. to 11:30 a.m.
7:55:14 PM Gulledge Commented on the Planning Commission items left at the Council table. Commented he was in attendance at the Planning Commission meeting Monday, where they acted on the following items: Final development plan approval for Maryville Storage Units, which was recommended 7 to 0 with no comments; final plat approval of the Francis Minor Subdivision was recommended 7 to 0 with the comment that 911 addresses need to be added once assigned; final plan approved for Anderson Hospital Cancer Care Center was tabled pending several issues. Stated they are asking to include Resolutions 2006-18 on the agenda for the Board meeting to approve the Francis Subdivision Plat and 2006-19 for the Al-Jer Development Company Maryville Storage Units.
7:57:00 PM Callahan Asked regarding the Francis subdivision if that is a driveway, referring to the plat.
7:57:07 PM Gulledge Answered it is a private lane off of Drost.
7:57:16 PM Callahan Asked if this is where Charter is, referring to map. Mayor tried to explain it is off Nepute where it turns into Drost. Asked if the two lots are vacant. Gulledge answered yes. More discussion was held making reference to the map.
7:58:45 PM Gulledge Commented the only question is what address will they give, about which they are waiting to hear from the 911 board.
7:59:10 PM Callahan Asked more questions referring to the map.
8:00:21 PM Gulledge Commented the Board has a vote based on the recommendation from the Planning Commission.
8:00:31 PM Kostyshock Asked what kind of road they will have.
8:00:34 PM Gulledge Answered it is going to be a private lane. Callahan compared it to a large driveway. Gulledge agreed.
8:00:45 PM Callahan Asked if there is anything pertaining to future use, referring to the roads on the map.
8:00:53 PM Gulledge Answered he did not know, and would be a decision for the Planning Commission and Board. Referred to a portion of the map and commented it is owned by the Patton's. Callahan asked how large the piece is, and if it is large enough to hold lots of homes. Gulledge answered no. More reference was made to the map.
8:01:52 PM Kostyshock Asked if it will be wide enough to get a fire truck through.
8:01:57 PM Gulledge Answered yes. Commented the Fire Chief was there and there are two firemen on the Planning Commission who were in attendance at the meeting.
8:02:27 PM Garcia Asked if the road goes through Walt and Lou's.
8:02:34 PM Gulledge Answered no. Callahan's question was "what if", which he cannot answer as he does not know. More comments were made referring to the map.
8:03:32 PM Callahan Commented if currently they have one big lot. Asked if they only wanted one lot, would they still need board approval. Mayor answered yes.
8:03:54 PM Gulledge Commented he does not see anything wrong with it. Comments were made as to what will be done with the lots, whether they will build houses or sell the lots. Mayor stated the item will be put on the agenda for the Board meeting next Wednesday.
8:04:48 PM Gulledge With no other questions or comments, asked for a motion to adjourn. Motion was made by Callahan and seconded by Kostyshock. Voting on the motion: Callahan - yes; Kostyshock - yes; Garcia - yes. Motion carried.
8:05:09 PM   The meeting ended.

Respectfully submitted,

Thelma Long, Village Clerk

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