ENERGY AUDIT AGREEMENTENERGY AUDIT AGREEMENT
This Energy Audit Agreement ("Agreement"), effective the last date signed below, is by and
between the City of Clearwater, a municipal corporation of the State of Florida with an office at 112
South Osceola Avenue (the "Agency") and Siemens Building Technologies, Inc. with an office at
8403 Benjamin Road, Suite F in Tampa, FL (the "Company") (each a "Party" and collectively the
"Parties").
Whereas, the Company is party to the state term contract procured by the State of Florida,
Department of Management Services, ITN No. DMS 01/2002-103, Comprehensive Energy Strategy,
which enables the Company to perform work under the Guaranteed Energy Performance Savings
Contract Act, codified at section 489.145 of the Florida Statutes, and under section 235.215 of the
Florida Statutes; and
Whereas, the Agency is responsible for the operation, management and maintenance of the
facilities identified on Attachment A to this Agreement (the "Facility(s)"); and
Whereas, a comprehensive investment grade technical energy audit (the "Energy Audit") and
savings analysis (the "Report") must be performed at the Facility in order to determine the feasibility
of entering into a guaranteed energy performance savings contract ("Energy Performance Contract")
to provide for the installation and implementation of energy conservation measures ("ECMs") at the
Facility; and
Whereas, if the ECMs are demonstrated to be feasible, and if the amount of energy cost
savings can be reasonably ascertained and guaranteed in an amount sufficient to cover all costs
associated with an energy performance contracting project at the Facility(s), the Parties intend to
negotiate an Energy Performance Contract under which the Company shall design, procure, install,
implement, maintain and monitor such ECMs at the Facility(s);
Therefore, the Parties agree as follows:
Article 1: Scope of Energy Audit
The Company will perform the Energy Audit and prepare the detailed engineering and economic
Report that specifically identifies the energy improvements and operational changes which are
recommended to be installed or implemented at the Facility(s). The Report shall contain detailed
projections of energy and cost savings to be obtained at the Facility(s) as a result of the installation of
the recommended ECMs. The savings calculations must utilize assumptions, projections and
baselines which best represent the true value of future energy or operational savings for the
Facility(s), i.e., utilize: accur to marginal cost for each unit of savings at the time the audit is
performed; documented material and operational costs actually avoided; adjustments to the baseline
to reflect current conditions gat the Facility(s) compared to the historic base period; calculations
which account for the interactive effects of the recommended ECMs; etc. The Report shall clearly
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describe how utility tariffs were used to calculate savings for all ECMs. The Report shall describe
the Company's plan for installing or implementing the measures in the Facility(s), including all
anticipated costs associated with such installation and implementation. The primary purpose of the
Report is to provide an engineering and economic basis for negotiating an Energy Performance
Contract between the Agency and the Company; however, the Agency shall be under no obligation to
negotiate such a contract.
The Company shall perform the following tasks in performing the Energy Audit and preparing the
Report:
A. Collect General Facility(s) Information
The Company shall collect general Facility(s) information such as: size, age, construction
type, condition and general use of the Facility(s). The Company shall also collect and
summarize Facility(s) utility cost and consumption data for the most recent 24-36 month
period. Company shall evaluate the impact on utility cost and consumption of any energy
initiatives currently being installed or currently planned to be installed by the Agency in the
Facility(s) which will remain separate from the Energy Performance Contract throughout the
duration of that agreement.
Agency shall make available (or cause its energy suppliers to make available) all available
records and data concerning energy and water usage for the Facility(s) for the most current
24-36 month period, if available, including: Utility records; occupancy information;
descriptions of any changes in the structure of the Facility(s) or its heating, cooling, lighting
or other systems or energy requirements; descriptions of all major energy and water
consuming or energy and water saving equipment used in the Facility(s); any comfort
problems, code deficiencies and description of energy management procedures presently
utilized. The Agency shall also make available a record of any energy related improvements
or modifications that have been installed during the past three years, or are currently being
installed or are currently planned to be installed by the Agency in the Facility(s) separate
from the energy service agreement throughout the duration of that agreement. The Agency
shall also make available copies of drawings, equipment logs and maintenance work orders
to the Company.
B. Analyze Existing Systems and Equipment
Company shall compile an analysis based on a physical inspection of the major electrical
and mechanical systems at the Facility(s), including:
1. Cooling systems and related equipment
2. Heating and heat distribution systems
3. Automatic temperature control systems and equipment
4. Air distribution systems and equipment
5. Outdoor ventilation systems and equipment
6. Kitchen and associated dining room equipment, if applicable
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1. identify and propose potential ECMs for installation or implementation at the Facility(s),
including water conservation measures
2. estimate the cost, savings and life expectancy of each proposed ECM;
3. specify Facility(s) operations and maintenance procedures which will be affected by the
installation/implementation of the proposed ECMs;
4. provide analysis methodology, supporting calculations and assumptions used to estimate
savings, which shall be based on the life cycle cost calculations provided in section 255.255
of the Florida Statutes. Manual calculations should disclose essential data, assumptions,
formulas, etc. so that a reviewer could replicate the calculations based on the data provided;
5. for savings estimates using computer simulations, Company shall provide access to the
program and all inputs and assumptions used, if requested by the Agency.
6. provide a preliminary savings measurement and verification plan for each of proposed ECMs
7. provide a preliminary commissioning plan for the proposed ECMs
8. provide detailed calculations for any rate savings proposals
9. provide detailed supporting calculations for any proposed maintenance or other operational
savings;
10. estimate any environmental costs or benefits of the proposed ECMs (e.g., disposal costs,
avoided emissions, water conservation, etc.)
11. For all proposed ECMs, Company shall comply with all applicable state, federal and local
codes and regulations in effect at the time of this analysis.
E. Select Final Recommended ECMs
Company shall, in consultation with the Agency, recommend specific ECMs from its
preliminary compilation for installation and implementation at the Facility(s).
F. Cost and Fee Estimates
Company shall provide detailed estimates of all costs and fees associated with the installation
and implementation of the ECMs including:
1. engineering/design costs for individual ECMs
2. contractor/vendor estimates for individual ECM hard costs
3. construction management fees for the project
4. commissioning costs for individual ECMs
5. initial training costs
6. annual service fees including:
- measurement and verification
- maintenance
- performance monitoring
- ongoing training services
7. other costs/fee (specify)
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G. Savings Estimates
The Agency has endeavored to provide the Company with sufficient general and specific
guidance in this Article 1 to develop the savings estimates for the Report. In the event that
questions arise as to the calculation of savings or whether certain items will be allowed as
savings, the Company shall seek written guidance from the Agency. Agency's rejection of
certain calculations of savings or rejection of certain items as allowable savings in the Report
shall be at the risk of the Company.
The following items will be allowed as savings or in the development of savings:I
Agency material/commodity cost
Outside maintenance labor cost (if applicable)
- Agreed escalation rates for natural gas
- Agreed escalation rates for electricity
- Agreed escalation rates for water
- Agreed escalation rates for material/commodity cost savings
- Agreed escalation rates for allowable labor savings
The following items will not be allowed as savings or in the development of savings:
Agency in-house labor cost
Agency deferred maintenance cost
H. Report Format
An executive summary which describes the Facility(s), measures evaluated, analysis
methodology, results and a summary table presenting the cost and savings estimates
for each measure.
2. A discussion of measures not evaluated in detail and the explanation of why a
detailed analysis was not performed.
3. A summary of all utility bills, Base Year consumption and how it was established,
and end use reconciliation with respect to the Base Year including a discussion of any
unusual characteristics and findings.
4. Detailed descriptions for each ECM including analysis method, supporting
calculations (may be submitted in appendices), results, proposed equipment and
implementation issues.
5. Conclusions, observations and caveats regarding cost and savings estimates.
6. Thorough appendices which document the data relied upon to prepare the analysis and
how that data was collected.
1, Unless otherwise agreed in writing, escalation rates shall tie to the Consumer Price Index.
The value of fuel and water unit savings shall be escalated using actual rate increases as they occur
over the term of the contract. The base rate value for each fuel and water unit shall not devalue in
the event of any rate decrease.
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7. The Report shall be completed within ninety (90) days of the effective date of this
Agreement, unless otherwise stated in Attachment A. The Agency shall conduct and
complete a technical review within sixty (60) days of its receipt of the Report, unless
otherwise stated in Attachment A.
1. Acceptance of the Report- If Enen v Conservation Measures are Feasible.
The Agency shall accept the Report if the recommended ECMs exceed the ECMs of the other two
Companies competing for the contract and projected energy cost savings are equal to or greater than
the total projected costs of the design and installation of the recommended ECMs. If the Agency
determines that one or more of the recommended ECMs from the selected Company is not feasible,
the Agency shall give the Company written notice of any and all said objections, in detail, within
fourteen (14) days after completing its technical review of the Report. The Company shall correct
the Report and submit a revised draft within twenty-one (21) days of said notification. The Agency
shall have fourteen (14) days from receipt of the revised Report to notify the Company if any
objections have not been corrected. This re-submission process shall continue until (1) the date all
material concerns are resolved and the Report is accepted, or (2) the dispute is otherwise resolved.
Article 2: Enerpry Performance Contract
The Parties intend to negotiate an Energy Performance Contract under which the Company shall
design, install and implement ECMs and provide certain maintenance and monitoring services.
However, nothing in this Agreement should be construed as an obligation on any of the Parties to
execute such an Energy Performance Contract. The terms and provisions of such an Energy
Performance Contract shall be set forth in a separate agreement. This Agreement shall automatically
terminate upon the Parties' execution of an Energy Performance Contract relating to the Facility(s).
Article 3: Payment
The Parties understand and intend that the Company's costs for services performed under this
Agreement (1) shall be included in the total project cost, (2) shall not be paid for under this
Agreement, and (3) shall be paid for only under the Energy Performance Contract, if any, from
savings generated by implemented ECMs. The Company is undertaking work under this Agreement
in consideration of the Agency's good faith intention to negotiate the Energy Performance Contract
with the selected Company. The Company understands and agrees that payment to it is contingent
upon realization of energy cost savings being equal to or greater than the total cost of the design and
installation of the Company's recommended ECMs.
Article 4: Termination
A. By Company
Company may terminate this Agreement prior to the completion of the Energy Audit and
Report or subsequent to the completion of the Energy Audit and Report if-
(i) It determines that it cannot guarantee a minimum amount of energy and cost savings
through the implementation of an energy performance contracting project at the
Facility(s); or
(ii) It determines that even though it can guarantee a minimum amount of energy and
cost savings in energy costs, that amount would be insufficient to cover the costs
associated with performing this analysis, installing ECMs and related maintenance
and monitoring services.
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Termination under this section shall be effective upon Agency's receipt of written notification
from the Company stating the reason for the termination and all supporting documents.
Company shall provide the Facility(s) with any preliminary notes, reports or analysis which
have been produced or prepared prior to the effective date of the termination.
B. By Agency:
Agency may terminate this Agreement:
(i) If the Company fails to complete the Energy Audit and deliver the Report to the
Agency within the time established in Article 1, above; or fails to obtain a written
extension of that time from the Agency. Termination under this subsection B (i) shall
be effective upon Company's receipt of written notification from the Agency that the
deadline for submission of the Report has past. Company shall provide the
Facility(s) with any preliminary notes, reports or analysis which have been produced
or prepared prior to the effective date of the termination.
(ii) If, prior or subsequent to the completion of the Energy Audit, the Company notifies
the Agency in writing that it is unable to guarantee a sufficient level of savings
pursuant to subsection 4 A (i) or (ii) above. Termination under this subsection B (ii)
shall be effective upon Company's receipt of written notification from the Agency.
Company shall provide the Facility(s) with any preliminary notes, reports or analysis
which have been produced or prepared prior to the effective date of the termination.
(iii) if the Company is not selected by the Agency to proceed to the execution of the
Energy Performance Contract.
C. By Either Party:
Either Party may terminate this Agreement, when the Party deems it to be in its best
interest to do so, by providing the other Party thirty (30) days written notice of its intent to do so.
Termination shall be effective thirty (30) days after receipt of the written notice.
Article S: Standard Terms and Conditions
Section 1. Agreement Term
The Agreement term shall commence on the effective date of the Agreement and end 240 days from
effective date, unless earlier terminated pursuant to the provisions of Article 4 hereof.
Notwithstanding, Company shall adhere to the deadlines set forth in Article 1 regarding the
completion and submittal of the list of ECMs and the Report.
Section 2. Appropriations
Obligations of the Agency shall cease immediately without penalty if in any fiscal year covered by
the Agreement term, the Agency fails to appropriate, reappropriate or otherwise make available
funds for this Agreement. Agency shall provide written notification to Company of any impending
change in the status of appropriations which may affect this Agreement of which it has notice.
Section 3. Materials, Equipment and Supplies
The Company shall provide or cause to be provided all facilities, materials, equipment and supplies
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necessary to perform the Energy Audit and prepare the Report.
Section 4. Subcontractor Disclosure
As of the execution date of this Agreement, the following subcontractors are expected to perform
material work (i.e., greater than 5% of the total work) pursuant to this Agreement:
Company will provide any subcontractors.
If, during the term of this Agreement, the Company retains subcontractors to perform material work
pursuant to this Agreement who were not disclosed, the Company shall so notify the Agency in
writing.
Section 5. Patent and Cobvrip-ht Resnonsibilit
The Company agrees that any material or design specified by the Company or supplied by the
Company pursuant to this Agreement shall not knowingly infringe any patent or copyright, and the
Company shall be solely responsible for securing any necessary licenses required for patented or
copyrighted material utilized by the Company in the performance of the Energy Audit and
preparation of the Report.
Section 6. Release and Indemni
The Company agrees to assume all risk of loss and to indemnify and hold the Agency, its officers,
agents and employees harmless from and against any and all liabilities, demands, claims, suits,
losses, damages, causes of action, fines or judgments, including costs, attorneys' and witnesses' fees,
and expenses incident thereto, for injuries to persons (including death) and for loss of, damage to or
destruction of property (including property of the Agency) to the extent of Company's negligent or
intentional acts or omissions. In the event that any demand or claim is made or suit is commenced
against the Agency, the Agency shall give prompt written notice thereof to Company and Company
shall have the right to compromise or defend the same to the extent of its own interest. Company
further agrees to maintain adequate insurance to protect the Agency against such risks. Company
also agrees to indemnify and hold the Agency harmless should any goods or services provided by
Company infringe upon the patent, copyright or trade secret of another. Notwithstanding any
provision to the contrary, neither Party shall be liable to the other Party for any special, incidental,
consequential, or punitive damages. Furthermore, nothing in this provision shall constitute a waiver
of the Agency's sovereign immunity under section 768.28, Florida Statutes.
Section 7. Dispute Resolution
The Agency and the Company recognize and acknowledge that efforts should always be made to
avoid or prevent disputes through effective partnering, good communications, and joint decision
making; and that timely requests for clarification and for information will help ensure a better
understanding of issues and problems and lead to the elimination of doubts, uncertainties, and
ambiguities. Nevertheless, the Agency and the Company also recognize that disputes may develop
between them and, in such event, wish to establish procedures to be followed to resolve such
disputes in the shortest possible time and at the least possible expense to the Agency and the
Company.
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Any conflict or dispute between the Agency and the Company shall be resolved in accordance with
the procedures specified in this Agreement, which shall be the sole and exclusive procedures for the
resolution of any such disputes. This Agreement establishes successive steps of conflict prevention
and alternative dispute resolution prior to litigation, completion of which shall be conditions
precedent to the right to commence litigation over any dispute arising out of or relating to the
Agreement. The successive steps are: (1) informal negotiations between project-level management
personnel; (2) formal negotiations between executive-level management, initiated by written notice
and completed within thirty days, or longer as mutually agreed; and (3) mediation, initiated by
written notice. Except as otherwise agreed by the Parties in a mediation contract, all mediation
proceedings shall be conducted in accordance with this Agreement and, where applicable, the then-
current Model Procedure for Mediation of Business Disputes published by the Center for Public
Resources (CPR), 366 Madison Avenue New York, NY 10017, (212) 949-6490
(http://www.epradr.org). If the Agency and the Company have not algeed within ten (10) business
days of the request for mediation on the selection of a neutral mediator willing to serve, then the
Parties agree that a mediator shall be selected by the Florida Conflict Resolution Consortium
(FCRC), Florida State University, Tallahassee, (850) 644-6320 (http://consensus.fsu.edu). The
appointment by FCRC of a qualified mediator shall be binding on both Parties, and both Parties shall
promptly cooperate with the appointed mediator to effectuate mediation.
Any action legal or equitable action arising out of or relating to this Agreement shall be brought in
the appropriate state court in Pinellas County, Florida, and not elsewhere, and shall be governed by
Florida law. The threshold issue for determination shall be whether the Party bringing the action has
complied with the alternative dispute resolution processes specified above.
Section 8. Personnel
All Company employees, subcontractors, or agents performing work under the Agreement shall be
properly trained technicians who meet or exceed any specified training qualifications. Upon request,
Company shall furnish a copy of technical certification or other proof of qualification. All
employees, subcontractors, or agents performing work under the Agreement must comply with all
security and administrative requirements of the Agency. The Agency may conduct, and the
Company shall cooperate in, a security background check or otherwise assess any employee,
subcontractor, or agent furnished by the Company. The Agency may refuse access to, or require
replacement of, any personnel for cause, including, but not limited to, technical or training
qualifications, quality of work, change in security status, or non-compliance with the Agency's
security or other requirements. Such approval shall not relieve the Company of its obligation to
perform all work in compliance with the Agreement. The Agency may reject and bar from any
facility for cause any of the Company's employees, subcontractors, or agents.
The Company, together with its agents, subcontractors, officers and employees, shall have and
always retain under the Agreement the legal status of an independent contractor, and in no manner
shall they be deemed employees of the Agency or deemed to be entitled to any benefits associated
with such employment. During the term of the Agreement, the Company shall maintain at its sole
expense those benefits to which its employees would otherwise be entitled to by law, including
health benefits, and all necessary insurance for its employees, including workers' compensation,
disability, and unemployment insurance, and provide the Agency with certification of such insurance
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upon request. The Company remains responsible for all applicable federal, state, and local taxes, and
all FICA contributions.
Section 9. Compliance with Applicable Law
In. performing this Agreement, the Company shall comply with all laws, rules, codes, ordinances, and
licensing requirements that are applicable to the conduct of its business, including those of federal,
State, and local agencies having jurisdiction and authority. By way of non-exhaustive example,
Chapter 287 of the Florida Statutes and Chapter 60A-1 of the Florida Administrative Code govern
the Agreement. By way of further non-exhaustive example, the Company shall comply with section
247A(e) of the Immigration and Nationalization Act, the Americans with Disabilities Act, and all
prohibitions against discrimination on the basis of race, religion, sex, creed, national origin,
handicap, marital status, or veteran's status. Violation of such laws shall be grounds for Agreement
termination. The Agency may cancel the Agreement if the Company refuses to allow public access
to all records made or received by the Company in conjunction with the Agreement, unless the
records are exempt from section 24(a) of Article I of the State Constitution and section 119.07(1) of
the Florida Statutes.
Section 10. Waivers
No right of either party hereto shall be deemed to have been waived by non-exercise thereof, or
otherwise, unless such waiver is reduced to writing and executed by the party entitled to exercise
such right.
Section 11. Assignment
Neither Party may assign this Agreement without the prior written consent of the other Party, which
shall not be unreasonably withheld.
Section 12. Capacity to Contract
Each person signing the Agreement warrants that he or she is duly authorized to do so and to bind
the respective Party to the Agreement. The Company warrants that it is in good standing and legally
authorized to transact business in Florida. The Company warrants that, to the best of its knowledge,
there is no pending or threatened action, proceeding, or investigation, or any other legal or financial
condition, that would in any way prohibit, restrain, or diminish the Company's ability to satisfy its
Agreement obligations. The Company warrants that neither it nor any affiliate is currently on the
convicted vendor list maintained pursuant to section 287.133 of the Florida Statutes, or on any
similar list maintained by any other state or the federal government. The Company shall
immediately notify the Agency in writing if its ability to perform is compromised in any manner
during the term of the Agreement.
Section 13. Confidential Information
Each Party may have access to confidential information made available by the other Party (see
particularly, but not exclusively, subsection 119.07(ee) and section 119.071 of the Florida Statutes).
Each Party shall protect such confidential information in the same manner as it protects its own
confidential information of like kind. Disclosure of any confidential information received by the
Agency will be governed by the Public Records Act, chapter 119 of the Florida Statutes.
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Section 14. Convicted or Discriminatory Vendors
A person or affiliate placed on the convicted vendor list following a conviction for a public entity
crime is prohibited from doing any of the following for a period of 36 months from the date of being
placed on the convicted vendor list: submitting a bid on a contract to provide any goods or services
to a public entity; submitting a bid on a contract with a public entity for the construction or repair of
a public building or public work; submitting bids on leases of real property to a public entity; being
awarded or performing work as a contractor, supplier, subcontractor, or consultant under a contract
with any public entity; and transacting business with any public entity in excess of the Category Two
threshold amount ($25,000) provided in section 287.017 of the Florida Statutes.
An entity or affiliate placed on the discriminatory vendor list pursuant to section 287.134 of the
Florida Statutes may not submit a bid on a contract to provide any goods or services to a public
entity; may not submit a bid on a contract with a public entity for the construction or repair of a
public building or public work; may not submit bids on leases of real property to a public entity; may
not be awarded or perform work as a contractor, supplier, sub-contractor, or consultant under a
contract with any public entity; and may not transact business with any public entity.
Section 15. Project Management
All necessary and ordinary communications, submittals, approvals, requests and notices related
to Project work shall be issued or received by:
City of Clearwater
1900 Grand Ave. Clearwater, FL 33765
Tel: 727-562-4891
Fax: 727-562-4895
Email: rick.carnley@MyClearwater.com
Siemens Building Technologies, Inc.
8403 Benjamin Road, Suite F, Tampa, FL 33634
Tel: 813-261-8717
Fax: 866-456-8739
Email: alan.beer@siemens.com
Either Party may change its point of contact by written notice to other Party's then-current designated
contact, which shall not constitute a formal amendment to this Agreement.
Section 16. Modification of Terms
The Agreement contains all the terms and conditions agreed upon by the Parties. The Agreement
may only be modified or amended upon mutual written agreement of the Parties. No oral
agreements or representations shall be valid or binding upon the Agency or the Company.
Section 17. Execution in Counterparts
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Section 16. Modification of Terms
The Agreement contains all the terms and conditions agreed upon by the Parties. The Agreement
may only be modified or amended upon mutual written agreement of the Parties. No oral
agreements or representations shall be valid or binding upon the Agency or the Company.
Section I Execution in Counterparts
The Agreement may be executed in counterparts, each of which shall be an original and all of which
shall constitute but one and the same instrument,
Section 18. Severabiliri
If a court deems any provision of the Agreement void or unenforceable, that provision shall be
enforced only to the extent that it is not in violation of law or is not otherwise unenforceable, and all
other provisions shall remain in full force and effect.
Article 6: Execution
v
Ias to
f
6?09
CITY OF CLEARWATER
By:
A x
6444W
Wiliam B. Home II
City Manager
Attest:
Camilo A. Soto
Assistant City Attorney
Name:
C is E. Goudeau
Ci lerk
Siemens Building Technologies, Inc.
O?
By: AXEL MBER
Its: CFO
41
TITL ' ? -
DATE: NOE G. BERMUDEZ
ASSISTANT SteRVARY
Energy Audit Agreement
City of Clearwater-Siemens Building'I'echnologies, Inc.
-21-V q 4/9/2009
Page 12 of 13
*rGVb al M
VIP
ATTACHMENT "A"
Marshall Wastewater Treatment Plant
1605 Harbor Dr.
Clearwater, FL 33755
Northeast Wastewater Treatment Plant
3290 State Road 580
Safety Harbor, FL 34695
Fast Wastewater Treatment Plant
3141 Gulf to Bay Blvd.
Clearwater, FL 33759
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