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79-16056 Resolution t RESOLUTION NO, 79-16056 A RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE CITY OF MIAMI BEACH, THE VILLAGE OF BAL HARBOUR, THE TOWN OF BAY HARBOR ISLANDS AND MIAMI-DADE WATER & SEWER AUTHORITY PROVIDING FOR THE FURNISHING OF WATER SERVICE BY THE CITY OF MIAMI BEACH TO THE MIAMI-DADE WATER &-' SEWER AUTHORITY FOR RESALE TO THE VILLAGE 'OF .BAL HARBOUR AND THE TOWN OF BAY HARBOR ISLANDS. WHEREAS, for the reasons more particularly set forth in Commission- Memorandum No. 7791 City of Miami Beach finds it in t the City Commission of the to enter into a contract between thebest interest of said City City of Miami Village of Bal Harbour, ..:the Town of Bay Harbor IslandscandtMiami-- Dade Water & Sewer Authority- providing for furnishing of water service by the City of Miami Beach -to the Miami-Dade Water & Sewer Authority for resale to the Village of Bal Harbour and the Town of Bay Harbor Islands; and WHEREAS, said contract will also result in the settle- ment of certain litigation between the Village of Bal Harbour and the Town of 'Bay Harbor Islands and- the City of Miami Beach relating to the sale of water; and WHEREAS, the City Attorney recommends settlement of said litigation on the terms contained in said contract and the City Manager concurs with said terms; and WHEREAS, the City Manager has recommended.-that the City enter. into said contract and the' Cit Attorney has a as to form and legal sufficienc Y Y approved same Y: NOW, THEREFORE, BE IT . RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk be and they are hereby authorized and directed to enter into a con- tract substantially in the form presented to the City Commission for and on behalf of and in the name of the City of Miami Beach, Florida. PASSED and ADOPTED this 17th_ day of October 1979 . ayor Attest: City Cle k AHM/mcSOFFICE OF THE CITY ATTORNEY- 1700 CONVENTION CENTER DRIVE-MIAMI BEACH FLORIDA 33139 ei I CONTRACT BETWEEN THE CITY OF MIAMI BEACH THE TOWN OF BAL HARBOUR VILLAGE THE TOWN OF BAY HARBOR ISLANDS AND THE MIAMI-DADE WATER AND SEWER AUTHORITY PROVIDING FOR FURNISHING OF WATER SERVICE BY THE CITY OF MIAMI BEACH TO THE MIAMI-DADE WATER AND SEWER AUTHORITY FOR RESALE TO THE TOWN OF BAL HARBOUR VILLAGE AND THE TOWN OF BAY HARBOR ISLANDS THIS CONTRACT, made and entered into this ! day of 1979, by and between the City of Miami Beach, hereinafter referred to as "Miami Beach" , the Town of Bal Harbour ,Village, hereinafter referred to as Bal Harbour, the Town of Bay Harbor Islands, hereinafter referred to as BHI , each a municipal corporation organized and existing under the laws of the State of Florida, and the Miami-Dade Water and Sewer Authority, hereinafter referred to as the "Authority" , an agency and instrumentality of Dade County Florida, W I T N E S S E T H WHEREAS, there is an existing contract dated June 24 , 1957 , between the Authority and Miami Beach relating to the supply of water by the Authority to Miami Beach; and WHEREAS, there have been disputes and litigation between Miami Beach, Bal Harbour and BHI relating to rights under that contract; and WHEREAS , the present supply and pressure of water in Bal Harbour and BHI is insufficient; and lki WHEREAS , the purpose of this present contract is to provide a new and total source of water supply directly from the Authority to Bal Harbour and BHI and to terminate the existing contract of June 24, 1957 , so far as it -relates to Bal Harbour and BHI; and WHEREAS , it is contemplated that the Authority will build a 30-inch transmission main on the Broad Causeway which will be in service by June 24, 1987 , which is the termination date of the existing contract - between the Authority and the City of Miami Beach , to provide water for Bal Harbour and BHI and perhaps other communities; and WHEREAS , in the event that the construction of the 30-inch transmission main is not completed by June 24 , 1987 , then and in that event this contract shall be extended as provided in the body of this agreement; and WHEREAS, this present contract is for new Bal Harbour and BHI water supply through a new. 24-inch main from the Miami Beach pump house at 75th Street to Bal Harbour to be designed and installed expeditiously by the Authority following execution of this contract and to be used until the 30-inch main on the Broad Causeway is in service; NOW, THEREFORE, in consideration of the - covenants and agreements herein set forth to be observed and performed, the parties hereto hereby covenant and agree that the above recitations are true and further covenant and agree that: 1. The contract of June 24 , 1957 , so far as it relates, directly or indirectly, to Bal Harbour and BHI will be superseded by this contract upon the commencement of operation of the new 24- inch main to be constructed pursuant to this present Contract. Miami Beach will sell and deliver to the Authority and the Authority will sell and deliver to Bal Harbour and BHI water necessary to fulfill their requirements . The water will be delivered by Miami Beach to the Authority and, in turn, by the Authority to Bal Harbour and BHI , at the Miami Beach pump house - 2 - located at 75th Street in Miami Beach. The Authority's obligation to furnish water at this point of delivery is conditioned upon the completion of a 24-inch water main (the new main) to be constructed by the Authority between the 75th Street pump house and a connection at 96th Street and Byron Avenue, Bal Harbour. Miami Beach will furnish water to the Authority through a meter to be installed approximately at 75th Street and Dickens Avenue. This meter installation, including the meter , will be provided by the Authority. The Authority will furnish water to Bal Harbour and BHI through meters to be installed approximately' at 96th Street and Bal Bay Drive. Bal Harbour and BHI will each provide the meter installation, with the exception of the meters, for its system. The Authority will provide the meters for these installations. As part of the new 24-inch main, the Authority will furnish a meter installation approximately at 87th Terrace and Byron Avenue. The Authority will provide the meter for this installation. This meter will initially be utilized to measure water used for emergency purposes by Miami Beach through inter-connections between the 75th Street and 87th Terrace meters. The cost of all meters and meter installations specified in this Section to be provided by - the Authority will be included in the total cost of the new 24-inch main. 2. The new main will be constructed by the Authority along a route which will be the shortest route, consisting solely of permissable, existing public right-of-ways, between the 75th Street pump house and the 96th Street connection. The Authority may vary the route at its discretion but the cost of any deviation from the shortest route will - not be at the cost of Bal Harbour and BHI. For , example, if the Authority wants to construct any portion of the new main on Collins Avenue, the added cost of using a longer route will not be chargeable to Bal Harbour and BHI when the surcharge is computed for the purpose of setting future rates. The reason is 3 _ that the deviation from the shortest route would be for the benefit of the Town of Surfside and not for the benefit of Bal Harbour or BHI . A portion of the new main will be located within the municipal limits of Miami Beach. The Authority will provide tees in said main during construction at points mutually agreeable to the parties hereto to allow interconnections to Miami Beach ' s distribution system for future use. Cost of such interconnections will be borne by Miami Beach. Those interconnections may be used only on an emergency basis with approval by the Authority except as noted below. The Authority will install a back flow prevent'er and remote reading pressure recorder in the new main approximately at 87th Terrace, which devices will be an integral component of the new 24- inch main. 3. The total water flow of the Authority for Bal Harbour and BHI has been estimated, but is not limited to be, as follows: Maximum Day Flow Average Daily Flow (million gallons) (million gallons) 1980 4 . 236 2. 405 1985 4.410 2. 550 1990 4. 530 2.650 7 1995 4.620 2.725 2000 4.680 2.775 2005 4.740 2.825 2010 4.770 2.850 The Maximum Day Flow as used herein shall mean the,- maximum flow in any one day or 24-hour period during the year. Average Daily Flow as used herein shall mean the total water flow during the year divided by 365 days. Year as used herein shall mean the fiscal year starting October lst and ending on September 30th. 4. All water delivered by the Authority hereunder shall be of good and potable quality satisfactory for domestic use and shall have received the same treatment and be of the same quality as that furnished to Miami Beach. 4 - 5. The water furnished by Miami Beach hereunder shall be delivered to the Authority at the point of delivery at the pressure which Miami Beach, in the operation of its transmission and distribution facilities, endeavors to maintain at such point of delivery for the purpose of rendering adequate water service in the City of Miami Beach. Miami Beach shall have no responsibility to maintain beyond such point of connection such water pressures and storage facilities as may be required to meet fire flow requirements as they may exist from time to time. The Authority shall have the responsibility to maintain at its 96th Street meters serving Bal Harbour and BHI , and not beyond that point, such water pressure as may be required to meet fire flow requirements as they may exist from time to time of Bal Harbour and BHI . In the event that, despite all reasonable diligence exercised by Miami Beach in maintaining adequate storage and transmission facilities, there should at any time be an insufficient supply of water , to supply the total requirements of the Authority, due to causes beyond Miami Beach ' s control, Miami Beach shall be deemed to have fully performed its duties and to have discharged 'its obligations hereinunder if, in such circumstances, it shall furnish and deliver to the Authority its pro rata share of such supply. Similarly, if despite all reasonable diligence exercised by the Authority in constructing and maintaining adequate transmission and metering facilities, there should at any time be an insufficient supply of water to supply. the total requirements of Bal Harbour and BHI, due . to causes beyond the Authority' s control, the Authority shall be deemed to have fully performed its duties and to have discharged its obligations hereunder if, in such circumstances, it shall furnish and deliver to Bal Harbour and BHI their pro rata share of such supply. 5 - 6. Miami Beach shall deliver the water provided for under this Contract to the Authority at a rate as nearly uniform as practicable throughout each 24-hour period during December , January, February, March and April of each winter season and at all such other times when the daily quantity of water delivered hereunder shall exceed 80 percent of the average daily quantity delivered hereunder during the preceding winter season. Miami Beach shall have the right to make such tests as it shall deem to be necessary, and at such times as it shall deem appropriate to determine to what extent the maximum 60-minute sustained demand imposed upon the facilities of Miami Beach by the requirements of the Authority hereunder between the hours of 8 :00 A.M. and 9 :00 P.M. is exceeding the average hourly demand, based upon the 24-hour day, for and during the same month. Such tests shall apply to each of the five (5) winter months set forth above and to any other month in which the average hourly demand is equal to or greater than the average hourly demand for said five (5) winter months, considered collectively. For the purpose of making each such ,test and of ascertaining and utilizing the result thereof to give effect to this provision, Miami Beach shall use a recording flow meter installed at the point of delivery provided for herein. In the event that the maximum 60-minute sustained demand between the hours of 8 :00 A.M. and 9 :00 P.M. , as shown by such recording flow meter , shall exceed 160 percent of the average hourly demand, based upon the 24-hour day, for and during the same month, Miami Beach shall have the right to increase the rate per thousand (1,000) gallons of water , developed in accordance with the provisions of Section 9 herein, for all water delivered hereunder during the month in which such tests are made, by 1 percent of rate for each 4 percent or major fraction thereof by which said maximum 60-minute sustained demand shall exceed 150 percent of said average hourly demand. No increase in rate provided for in this provision shall be applied - 6 - during any period or time when any of the transmission, storage or pumping facilities of the Authority, Bal Harbour, or BHI are not available for service clue to reasons beyond the control of those parties. 7. The Authority will , in the presence of representatives of the other parties if so desired, test and calibrate on the day of meter readings each month , all master meters referred to - herein. In addition, once each year in place of the regular monthly tests , the Authority will require the manufacturer of the meter (s) or his agent to submit certified calibration tests to all concerned parties hereto. If any monthly test report or an annual report shows meter errors in excess of plus or minus two percent (2%) of full scale there will be an appropriate adjustment by Miami Beach or the Authority, depending on the meter (s) involved, for the last month ' s billing. Such adjustment will appear as a charge or credit on the next monthly service bill rendered to the Authority or to Bal Harbour and BHI . Registration of meters) when maintained as above shall be binding upon all concerned parties hereto as a basis for all water flow charges. Access to meters) shall be available to all concerned parties herein upon request and in the presence of a representative of the Authority. In case of meter failure, each successive monthly charge shall be based on the last available monthly meter reading. Meter readings shall occur as nearly as possible on the twenty-eighth day of each month. The Authority will, upon request from any of the other parties hereto, order a certified calibration test in addition to the annual report on the meter and, in the event the test shows meter error in excess of plus or minus two percent (2%) , there will be an appropriate adjustment by Miami Beach or the Authority, depending on the meter (s) involved, of the recorded flow since the time of - 7 - o the* last monthly reading , or date of request, of the meters and shall be included in the next monthly service bill rendered by Miami Beach or the Authority. Such adjustment will appear as a charge or credit on the next monthly service bill rendered to the Authority or to Bal Harbour and BHI . If Bal Harbour or BHI requests such test and/or calibration and the test shows meter error to be two percent (2%) or less , the cost of such test and calibration will be reimbursed in full by those parties to the Authority in the next monthly service bill. If Miami Beach requests such test and calibration and the tests shows meter error to be two percent (2%) or less , the cost of such test and calibration will be credited in full to the Authority by Miami Beach in the next monthly, service bill . Any party hereto may install , maintain and operate, at no expense to the Authority, such check measuring equipment as it shall desire, provided the equipment shall be so installed as not to interfere with the operation of the meter (s) . The ' parties hereto shall have the right to be present at the time of, and the Authority shall serve reasonable prior written notice of, any installing , cleaning, changing, repairing , calibrating or adjusting done in connection with the meter (s) described herein. 8. Miami Beach hereby agrees to provide emergency service to the Authority for the facilities defined above in the event of a line break. Such work will be handled as any break in the Miami Beach system and will be done without a written work order or written request from the Authority. Such emergency work will be paid for in the manner as provided hereinafter. Miami Beach will, to the best of its ability, have the necessary repair sleeves and other parts in stock and will provide the necessary equipment and personnel required to make emergency repairs. The Authority will obtain an initial inventory of repair items for the 24-inch main and include the cost of these items in the total cost of the new 24- 8 - inch main. Miami Beach will be responsible for reordering items as needed. In the event the repairs are temporary, permanent repairs will be made as soon as practical in the same manner as though the facility to be repaired was located within Miami Beach. The Authority may cancel at any time said emergency service provision by written notification to Miami Beach of such intent to cancel. Charges for emergency maintenance services provided to the Authority by maintenance crews of Miami Beach will be billed to the Authority and rebilled by the Authority to Bal Harbour and BHI under the provisions of Section 9B (c) based on time charges and any direct expenses incurred. Charges shall be computed as follows : A. For all labor , including a foreman in direct charge of the work, the charge shall be each individual ' s actual gross hourly rate plus ten (10%) percent for every hour recorded for such work. Gross hourly rate as used herein shall include the individual ' s hourly wage plus the respective Social Security Taxes, Unemployment Insurance , Workmen ' s Compensation, Holidays, Vacations, Pension Contributions and other fringe benefits as may be provided to the individual by Miami Beach and shall be based on the actual wages paid to such individual. B. For all materials used, the charge shall be the actual documented cost of such materials, including freight charges, storage, insurance, damages, etc. . to which cost shall be added an amount equal to ten (10%) percent thereof. C. For any machinery or equipment, including fuel and lubricants, maintenance, insurance and all other related operating costs required for the, economical performance of the work, the charge shall be based on the same cost Miami Beach pays to its mechanical maintenance fund plus ten (10%) percent for every hour that such 9 _ i machinery or equipment is in use or in transit to the Authority' s transmission facilities. D. For any miscellaneous costs or services required for the completion of the work for the Authority, the charge shall be the actual charge plus ten (10%) percent thereof. Miami Beach .may elect to hire a subcontractor to perform portions of such work. In that event, the charge to the Authority shall be the subcontractor ' s billed and verified costs. At the end of each day in which work has been completed by maintenance crews of Miami Beach on facilities of the .Authority, the project foreman shall submit to the Director of the Miami Beach Public Works Department a work report indicating the work completed, personnel, parts, and equipment used and the time each was used plus any direct or miscellaneous charges. Monthly charges for emergency maintenance service by Miami Beach on Authority facilities as provided herein or in an addendum hereto shall be billed when the work is complete. Interim billings for work in progress may be submitted by Miami Beach. Payment by the Authority shall be made within 30 days of the Authority' s receipt of the aforesaid interim or final bills . 9A. (a) The Authority will -pay Miami Beach for the right to use Miami Beach' s 79th Street, Causeway main, 75th Street pump house and 75th Street storage tanks on the basis of per thousand gallons for the water destined_ for Bal Harbour and BHI at a rate equal to 140% of the rate per thousand gallons payable by Miami Beach to the Authority for the water purchases pursuant to the contract of June 24 , 1957 . However , the flows for which the Authority will pay Miami Beach as indicated hereinabove will be reduced by Miami Beach ' s emergency usage of the new 24-inch main as determined by the difference in the 75th Street and 87th Terrace meter readings. (b) It is contemplated that a 30-inch main ' to be constructed by the Authority and referred to elsewhere in this agreement will be placed in service no later. than June 24 , 1987 . In the event it 10 - is not, for reasons other than force majeure, commencing with the first billing period after June 24 , 1987 , an additional charge computed as set forth hereafter shall be paid to Miami Beach by the Authority for each - and every month until said line is placed into service. Said charge shall be equal to one twelfth of the annual principal and interest payment required to, support a general obligation bond issue, bearing interest at the same rate the bonds of Dade County last sold prior to June 24 , 1987 shall bear , having a maturity of 20 years, and in the aggregate amount computed by adjusting the amount of one million dollars by the increase or decrease in the cost of construction for the period from the. effective date of this Contract through June 24 , 1987 as computed by using the index from the Engineering News Record. Said sum shall be placed in a separate interest bearing escrow account to be held by the Authority and may be drawn upon only for the actual costs of constructing said 30-inch main. All interest earned on said separate account shall belong to Miami Beach and may be drawn at will by it . The sums required to be paid pursuant to this paragraph are in addition to the sums required to be paid by other portions of this agreement but shall not be included in determing any charge made by the Authority to Bal Harbor or BHI under section 9B (a) herein. 9B. Bal Harbour and BHI shall pay to the Authority on a pro. rata basis as established by the relative flows measured by the 96th Street meters for water delivered to Bal Harbour and BHI an amount consisting of and equal to the following components: t (a) A charge computed by multiplying the rate established by Miami Beach for the water sold to the Authority as described in Section 9A (a) herein, by the flows measured by the 75th Street meter less any flows used by Miami Beach for emergency purposes as indicated by the difference in the 75th Street and 87th Terrace water meter readings. - 11 - (b) A charge ,per monthl for interest and depreciation in -an amount equal to seven - tenths of one percent (0 .7%) of the actual investment of the Authority in the new 24-inch main, spare parts and appurtenances. The Authority' s actual investment will be the difference between actual costs and the total of all contributions from the Town of Surfside toward the costs of said main, spare parts and appurtenances. In the event that the Authority is required by the proper Authorities to relocate any portion of the new 24- inch main, the cost of any such relocation shall be added to the Authority' s actual investment in said main for the purpose of computing the interest and depreciation charge in accordance with this Subsection. In the event that the Authority determines that an additional pump or an emergency power generator at Miami Beach ''s 75th Street pump house are necessary to meet the demands of Bal Harbour and BHI , the Authority will have such facilities installed. The cost of those facilities, not to exceed fifty thousand dollars ($50 ,000.00) , without receiving specific approval from Bal Harbour and BHI, shall be added to the actual cost of the new 24-inch main. Even though this Contract will terminate when the aforesaid Broad Causeway 30-inch main is in service, a charge for interest and depreciation of the new 24-inch main, spare parts and appurtenances will be included in the rate provisions of any new contract negotiated between the Authority, Bal Harbour and BHI for volume water service, but in no case shall the total reimbursement exceed the actual cost including a reasonable allowance for financing charges. 12 - (c) All actual operating and maintenance costs, including but not limited to billing, meter reading and meter calibration costs, associated with the new 24-inch main and appurtenances thereto. (d) A charge as described in Section 9A (b) herein if the delay in commencing operation of the Broad Causeway water service is attributable to unreasonable delay by either Bal Harbour or BHI to provide timely funding or contractual commit)tments to the Authority. The Authority will bill Bal Harbour and BHI based on their separate meters , but will consider them as a collective customer for the volume rate. In conjuction with the amounts to be paid as described herein- above, Bal Harbour and BHI shall pay (or be credited) any adjustments on the monthly water service bills submitted by Miami Beach to the Authority for water supplied to Bal Harbour and BHI . Such adjustments are necessary because the rate to be applied against any given month' s flows is not available until a succeeding month. a 10. Until the new 24-inch main is in operation, Bal Harbour will pay directly to Miami Beach at a rate equal to 140% of the rate per thousand gallons payable by Miami Beach to the Authority pursuant to the contract of June 24 , 1957 . BHI will pay its share in accordance with present practice. All parties to this contract agree that such a rate is fair and equitable and hereby waive any review of this rate. 11. Upon the commencement of operation of the 30-inch trans- mission main across Broad Causeway, 'the ownership of that portion of the 24-inch main lying within the municipal limits of Miami Beach will be conveyed to Miami Beach. Upon receipt of title to the 24-inch main by appropriate bill of sale, Miami Beach may use such interconnections as it desires on a full time basis. Such transfer of title shall constitute full and complete satisfaction of any - 13 - unamortized costs incurred by Miami Beach in water facilities existing as of the date of this Contract necessary for providing service to the Authority, Bal Harbour and BHI . 12. The Authority, Bal Harbour and BHI - hereby covenant and agree at all times while this Contract is in full force and effect that they will continuously own, control, operate and maintain their water and sewer utility systems in an efficient and economical manner and on a revenue-producing basis and will at all times establish, fix, maintain and collect, rates, fees and other charges for water service at all times to provide for and make payments required in accordance with the terms of this Contract. 13. Payment of the sums provided for in this Contract shall be on a monthly basis. The time of month and the place of payment shall be specified in writing by the parties hereto upon execution of this Contract. 14. In settlement of all prior litigation regarding water rates between Bal Harbour , Bay Harbor Islands and the City of Miami Beach, Bal Harbour and Bay Harbor Islands shall collectively caused to be paid to Miami Beach the sum of $355 ,209 from the now existing escrow funds established in connection with the aforesaid litigation. The parties hereto agree to cause their respective counsel to take such action as may be .necessary to cause said funds to be released f rom escrow in order that Miami Beach may be paid the sums set forth above and remaining funds in said escrow disbursed to Bal Harbour and BHI in accordance with their interests in said escrow funds. 15. Should any party hereto be delayed in or prevented,' in whole or in part, from performing any obligation (including but! not limited to water service) or conditions hereunder or from exercising its rights by reason of or as a result of any force majeure, such party shall be excused from performing such obligations or conditions. The term "force majeure" as used herein - 1'4 - means Acts of God, strikes, lockouts, or other industrial disturbances; acts of public enemy, blockades, wars, insurrections, or riots ; necessary maintenance work, breakdown of or damages to machinery, pumps or pipelines; epidemics, landslides, earthquakes, fires ,• storms , floods, or washouts; arrests , title disputes , or other litigation; governmental restraints by either federal or state agencies having ' jurisdiction or by local regulation applicable county-wide and based on federal or state agency action, civil or military; civil disturbances; explosions; inability to obtain necessary materials, supplies, labor , or permits whether due to existing or future rules, regulations, orders , laws, or proclamations, either federal or state, civil or military; or otherwise and other causes beyond the control of such party, whether or not specifically enumerated herein. 16 . Disputes under this Contract shall be decided by the Florida courts of appropriate jurisdiction. All parties to this Contract have an interest in the resolution of any dispute. 17. This Contract shall inure and be binding upon the successors of each of the parties hereto. 18 . In the event that any section, paragraph, clause or provision of this Contract shall be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any or the remaining provisions of this Contract. 19. In the event any party to this agreement determines to issue Bonds and a nationally recognized Bond Counsel certifies that amendments to this agreement, which in the opinion of such Bond Counsel, and Counsel for the parties, are minor or non-substantive, would enhance the marketability of such bonds, the parties hereto shall modify this agreement accordingly unless by reason of contract or law one or more of the parties ar unable to do so. 15 - e THE MIAMI-DADE WATER & SEWER AUTHORITY (AUTHORITY) By ' CITY OF MIAMI BEACH (MIAMI BEACH) ATTEST: bQ� �_J BY' . City Clerk Mayor TOWN OF BAL HARBOUR VILLAGE (BAL HARBOUR) By: MAIOR TOWN OF BAY HARBOR ISLANDS (BHI) By. JA&' Xi ` 11 o ° 16 -