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RES 2012-17 - 14903RESOLUTION NO. 2012-17 A RESOLUTION APPROVING RESIDENTIAL CURBSIDE RECYCLING SERVICE CONTRACT WITH ALLIED WASTE SERVICES WHEREAS, Minnesota Statutes 115A.552 requires that Minnesota residents be given the opportunity to recycle; and WHEREAS, the City of Fridley has committed to Anoka County by agreement to provide basic recycling services to Fridley residents in exchange for State SCORE funds; and WHEREAS, the City of Fridley solicited proposals from licensed recycling contractors for curbside recycling services; and WHEREAS, two proposals were received by the deadline and the proposal from Allied Waste Services of North America, LLC, a Delaware limited liability company, d/b /a Allied Waste Services of the Twin Cities - Blaine ( "Allied Waste" )was determined by the City Council to offer the best level of service for the price; and WHEREAS, accepting the Proposal from Allied Waste should allow the City of Fridley to sustain residential recycling services for the next seven years; NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Fridley hereby approves the contract for curbside recycling services attached as Attachment A and authorizes the Mayor and City Manager to execute such document on behalf of the City. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 13TH DAY OF FEBRUARY, 2012. A � � Scott J. Lund, Mayor ATTEST: 4L_41�� Debra A. Skagen, C Clerk Resolution No. 2012 -17 Page 2 Attachment A Fridley Curbside Recycling Service Agreement This Agreement is made on the 13th day of February, 2012, between the City of Fridley, a municipal corporation organized and existing under the laws of the State of Minnesota, hereinafter called the "City" and Allied Waste Services of North America, LLC, a Delaware limited liability company, d /b /a Allied Waste Services of the Twin Cities - Blaine, herein called the "Contractor ". 1 Purpose of Agreement The purpose of this Agreement is to define the requirements of the City of Fridley's Curbside Recycling Program to all residential Certified Dwelling Units, which includes single and multi- unit dwellings up to and including buildings containing 12 dwelling units. The goal of both parties is to provide quality, convenient recycling service to Fridley residents that will aid the City's goal of achieving maximum participation in the recycling program. As of January, 2012, City utility billing records list 9,202 residential dwelling units that qualify to receive recycling service under this contract Agreement. This unit count does not include additional municipal facilities that need to be serviced under this Agreement, which are listed under Section 6. 2 Definitions Minnesota Statute definitions shall be the primary legal basis for all contract definitions. Other definitions included herein are for purposes of ease of communication. However, if a contract definition is in conflict with the Minnesota Statutes, the Minnesota Statutes shall take precedence. Collection District: means a specific geographic area of the City established for the purpose of having Curbside Recycling collection for all DU's and other City designated recycling collection stops in the district on the same day. Collection Route: means a contiguous geographic area within a Collection District determined by the Contractor that will be serviced by one collection vehicle and which may be used to measure collection progress. These routes and changes to the routes must be approved by the City. Dwelling Unit (DU): means a single family home and each residential unit in a building up to a twelve -plex, manufactured home park, or townhouse complex. Residential units in structures (other than townhouses) containing more than twelve dwelling units, may be designated as DU's upon mutual agreement by the City and the Contractor. Two manufactured home parks are included in the municipal service contract. One townhouse complex, Black Forest, is not included in the municipal service contract. Education Tag: means an information tag notifying residents about unacceptable materials set out for collection. The tag will also contain information regarding preparation requirements. Fridley Recycling Service Agreement Page 1 of 14 The tag must be left at the residence (placed between the recycling cart top and lid) if any portion of the recycling set out is not taken. Material Recovery Facility (MRF): Specialized plant that receives, separates and prepares recyclable materials for marketing to end -user manufacturers. Multi - Family Dwelling (MFD): Households in larger multi - family buildings generally with five (5) units or more per structure. These households of 5 -12 dwelling units per building are provided the same type of wheeled carts as single family homes unless mutually agreed upon by the City, the Contractor, and the property owner. Recycling Materials Report: A monthly report supplied by Contractor with the monthly invoice for recycling services which outlines the recyclable materials collected by commodity and the rates of participation citywide each collection week. Residuals: Materials collected and delivered to the MRF facility, and removed from the recyclable materials for composting, incineration or land fill disposal prior to or during processing. Single Stream Recycling: Rigid containers and fibers collected and processed together. 3 Compensation to Contractor 3.1 PER DU PRICE The City shall pay the Contractor the following rates over the seven year term of the contract: $2.35 per DU per month, May $2.39 per DU per month, May $2.43 per DU per month, May $2.47 per DU per month, May $2.51 per DU per month, May $2.56 per DU per month, May $2.61 per DU per month, May 1, 2012 through April 30, 2013 1, 2013 through April 30, 2014 1, 2014 through April 30, 2015 1, 2015 through April 30, 2016 1, 2016 through April 30, 2017 1, 2017 through April 30, 2018 1, 2018 through April 30, 2019 3.2 METHOD OF PAYMENT The Contractor shall submit monthly itemized invoices to the City. Invoices so submitted shall be paid within thirty (30) days of receipt by City. 3.3 CERTIFIED DWELLING UNIT (DU) COUNT AND SET OUT RATE The Contractor may request that the City re- certify the number of DUs existing in the City of Fridley at any time throughout the term of this Agreement. Likewise, the City may request that the number of DUs serviced be adjusted within 30 days of notification to the Contractor in the event that housing units are added or removed from the City. Fridley Recycling Service Agreement Page 2 of 14 3.4 COLLECTION DAYS FOR CURBSIDE RESIDENTIAL RECYCLING Contractor must collect recyclables according to the existing collection districts on Monday, Tuesday, Wednesday, and Thursday per the Residential Curbside Recycling Collection Map contained in Exhibit A. The parties of this Agreement may mutually agree to change the collection districts with the initiating party bearing the cost of direct mail notification to all property owners and residents of the changed district. 3.5 FREQUENCY The collection frequency will be every other week with the first week of collection beginning Monday, May 7, 2012. 3.6 CURRENT CONTAINERS The Contractor will coordinate with the City to staff and provide containers for a one -day drop off location on a Saturday in May 2012 for the collection of the City - supplied, City -owned 18- gallon blue bins currently used for residential recycling collection, after the new wheeled carts are in use. The Contractor will be responsible for removing the Contractor - supplied, Contractor -owned wheeled carts currently used for recycling collection by all 5 -12 DU households currently serviced by the City contract. Recycling and reuse options for old bins and carts will be pursued and documented by the Contractor. Evidence of the weight of any containers recycled will be supplied to the City before the end of the 2012 calendar year, allowing the City to receive tonnage credit for the containers recycled. 3.7 PROPOSED CONTAINERS The Contractor will purchase, own, provide, inventory, and distribute, sturdy curbside 65- gallon wheeled carts to each property in Fridley serviced by this Agreement. Thereafter, during the entire term of the Agreement, Contractor shall maintain and replace carts as necessary. The carts shall be uniform and consistent in color and design. Each DU will be provided one 65- gallon cart or alternate size upon request by the resident following initial distribution. Cart distribution will occur at least two weeks prior to the first week of single sort collection. The Contractor shall maintain sufficient cart inventory of the proper size and color to meet supply and demand needs for the entire term of the Agreement. The proposer shall be prepared to deliver all service containers to households upon request within two weeks of a request. 3.8 CURBSIDE RECYCLING COLLECTION TIMES Contractor must not begin residential recycling collection service prior to 7:OOa.m. Collection routes must be complete by 8:30 p.m. 3.9 HOLIDAY SCHEDULE During a week when the holidays listed fall on a collection day (Monday — Thursday), recycling collection will be one day late. The six holidays where this will occur are: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas Day. Fridley Recycling Service Agreement Page 3 of 14 3.10 SEVERE WEATHER Except as otherwise provided herein, recycling collection may be postponed due to severe weather at the sole discretion of the City. The Contractor shall consult with the City before postponing collection. Collection will be postponed to a day mutually agreed upon. Recycling collection may be postponed by the Contractor if the temperature in Fridley at 6 a.m. is minus 20 degrees Fahrenheit or colder without the wind -chill factor. 3.11 POINT OF COLLECTION Single family through three -unit DUs, including manufactured homes, will be serviced curbside unless noted in Exhibit B, the map of DUs accessible by alley or alternative means, as qualifying for alleyside or alternative collection as mutually agreed upon by the City and Contractor. The curbside point of collection is at the edge of the curb along the respective public or private street from which the DU gains its access. Apartment buildings four (4)- twelve (12) DU in size will be supplied an adequate number of wheeled carts that will be emptied by the Contractor every other week. Carts at these buildings will not be required to be placed curbside. Contractor will service carts at 4 -12 unit multi- family buildings where they are stored, typically next to garbage enclosures. Contractor and City may mutually agree upon alternate collection arrangements for multi -unit buildings where space constraints or other limitations to normal servicing methods exist. 3.12 WALK -UP SERVICE The Contractor at the start of this Agreement has certified to the City that fourteen (14) DU have been receiving walk -up service in the curbside recycling collection program. The walk- up service is door -side collection of recyclables at designated DU's upon request from the City or upon request from the resident for anyone who is unable to convey recyclables to the curb. Up to 30 walk -up service accounts may exist on the Contractor's list without additional financial compensation to the Contractor from the City. If the number of walk -up service accounts exceeds 30 DU, the City and Contractor shall negotiate the terms of the financial compensation, if any, to be provided to Contractor for walk -up service accounts in excess of the 30 initial walk -up service accounts and memorialize their mutual agreement to those terms through amendment of this Agreement. 4 Liquidated Damages The City shall send a formal written letter or electronic notice outlining the issue and notifying the Contractor of the violation. After such notice, the Contractor shall be liable, and the City shall charge the Contractor accordingly, for liquidated damages at the following rates, upon a determination by the City that performance has not occurred consistent with the provisions of the Agreement. 4.1 MISSED COLLECTION The penalty is five hundred dollars ($500) per individual occurrence for missed collections in any collection district not picked up by 5 p.m. the next business day. Either the City or a resident shall provide notice by noon the same scheduled day of the missed collection. The Fridley Recycling Service Agreement Page 4 of 14 resident shall have stated that their recyclable materials were properly placed at the curb by 7:00 a.m. on collection day. 4.10.1 Missing Entire Block or Neighborhood The penalty will be one thousand dollars ($1,000) per each incident. A missed block is defined as a block where residents from at least three households within two intersections of that block or cul -de -sac report that their recycling bin and material was set out before 7:00 a.m., the material was not picked up the following business day by 5 p.m. and the addresses did not appear on the driver's records as unacceptable setouts. 4.10.2 District -wide Collection Not Completed The penalty shall be two thousand dollars ($2,000) per incident of failure to complete collection on the scheduled collection day when the City did not, or does not retroactively, approve an extension of collection hours. 4.10.3 Failure to Complete a Majority (50 %) of the Collection District The penalty shall be three thousand dollars ($3,000) per occurrence of failure to complete a majority (50% or more) of collections within the Collection District on the scheduled collection day without following proper notification procedure. 4.10.4 Exceptions If City staff approves a delay prior to 4 p.m. on the scheduled collection day, the Contractor shall be deemed not liable for damages where the Contractor's inability to perform recycling collection service is the result of conditions beyond its control such as acts of God or severe weather, civil disorder, significant road construction, changes in statutes, regulations and ordinances and other acts beyond the control of the Contractor. When the City and the Contractor have mutually agreed that the Contractor may safely return to the City, the Contractor shall have five (5) days (excluding Saturdays, Sundays, and holidays) to provide such service. In the event of a continuing failure beyond said period, the Contractor shall not be entitled to payment for any DU not serviced. In the event that the City has approved a delay beyond the five (5) days the Contractor will not be assessed penalties as specified above. 5 Customer Service The Contractor shall provide customer service and an office equipped with phone, email access and a web site to receive calls and emails between the hours of 7:30 a.m. and 5:00 p.m. on weekdays, except holidays as listed in Section 3.9. The Contractor shall make the telephone number, web site address and email address readily available and known to City residents in education materials. The Company name and a truck number shall be printed in large print on the collection vehicles. 5.1 24 HOUR SERVICE The Contractor shall have a 24 hour answering service or voice mail system available to Fridley customers and the City. Fridley Recycling Service Agreement Page 5 of 14 5.2 MONTHLY REPORT The Contractor shall keep a customer service log of all contacts, including type of contact, subject matter, date and the time received, the vendor's response, and the date and time of response. The Contractor shall provide the City verbal reports of recorded customer service contacts and written documentation upon request. 6 Municipal Facilities and Other Sites The Contractor will provide every other week recycling collection of the same recyclable materials noted for collection in Section 8.2 at designated municipal facilities at no additional cost. The municipal facilities currently requiring every other week recycling service are: the Fridley Municipal Center, Springbrook Nature Center, the Fridley Public Works Garage, and the two municipal liquor stores. Other facilities may be added upon mutual consent of both parties. 7 Publicity, Promotion, Education The Contractor shall provide the following education, publicity and promotion services without additional compensation unless specified: a. Printing or embossing of recycling content and preparation instructions to customer on each wheeled cart b. Printing and mailing of an informational postcard or brochure at least once per year, including recycling instructions and collection calendar, including each household in the MFD, with the City providing the electronic mailing list. c. Provision of a sample collection cart upon request for the City to use at special events to promote the recycling single sort service. d. Provision of informational sign and up to 2000 copies of extra informational print material to distribute at special City events. e. Provision of one daytime, staffed tour of the Contractor's Material Recovery Facility per year on a weekday with date and time agreed upon by the City and Contractor with the City coordinating reservations and providing transportation for city residents. f. Contractor will cooperate with City staff to create television interviews the promote recycling in the community upon request. g. Contractor will work with City staff to participate in other special City events (particularly during the first year of the contract), such as the 49ers Day parade, Safety Camp, and Nite to Unite, for the purpose of promoting recycling and public safety around Contractor's trucks. The City staff will be permitted review Contractor's promotional materials prior to distribution to customers and be permitted to request changes prior to distribution. 8 Collection and Processing Once the Contractor's recycling collection and processing methods have been accepted and approved by the City, the Contractor shall inform the City of any changes to the agreed upon collection and processing methods. It will be the City's right to refuse changes to the agreed Fridley Recycling Service Agreement Page 6 of 14 upon collection or processing methods. A collection or processing method cannot be changed without the written approval of the City. 8.1 WEIGHING LOADS The Contractor shall weigh and report the City's collected residential 1 -12 unit recyclable material weights separately from other material. These weight slips must be made available to the City upon request. It is recognized that the Contractor may use some means of calculating estimated tonnage amounts based upon test weights conducted in similar situations. 8.2 RECYCLABLE MATERIAL REQUIREMENTS The Contractor shall collect, at a minimum, the material listed 6.2.1 through 6.2.5, which is collected currently in the City's curbside and drop -off center recycling collection program. Other materials may be added if mutually agreed upon by both the City and the Contractor. 8.2.1 Cartons Cartons includes: Carton packaging such as milk, soup, broth, wine cartons and aseptic juice boxes. 8.2.2 Paper Paper includes: office and school paper, mail, magazines and catalogs, old newspapers and inserts, phone books, paperback books, shredded paper in closed paper bags, old corrugated cardboard, and boxboard. 8.2.3 Plastic Plastic bottles and containers with resin type 1 -7, plastic caps on plastic bottles, and plastic shopping bags. 8.2.4 Metal Metal includes food and beverage cans. 8.2.5 Glass Glass includes containers such as bottles and jars used for food and beverages. 9 Clean Up Litter The Contractor shall make reasonable attempt to clean up any material spilled or blown during the course of collection and or hauling operations and any material that is scattered around the recycling container. All collection vehicles shall be equipped with at least one broom and one shovel for use in cleaning up material spills. Designated recyclable materials shall be transported in a covered, properly sealed vehicle so that the materials do not drop or blow during transport. Fridley Recycling Service Agreement Page 7 of 14 10 Estimating Materials Composition The Contractor shall provide the City with documentation of a recent scientific commodity composition study of collected residential recyclables collected in a comparable community upon request. 10.1 OWNERSHIP OF MATERIALS All materials in the recycling container shall remain in the ownership and responsibility of the resident, property owner, tenant or government establishment until emptied into the truck by the Contractor at which point it becomes the responsibility and ownership of the Contractor. 10.2 PROCESS FACILITIES, MATERIALS PROCESSING, MARKETING The City expects the Contractor to market collected recyclables to the highest and best use of the recyclable materials (glass to glass bottles and jars, aluminum cans to aluminum cans). Adequate recyclable material processing capacity must be provided for material collected. The Contractor shall ensure that the percentage of collected residuals does not exceed the percentage permissible by State Statute of material (by weight) processed in the Contractor's MRF in a given month. The Contractor shall provide written notice to the City at least sixty (60) days in advance of any substantial change in these or subsequent plans for receiving and processing recyclable materials collected from the City. Upon collection, the Contractor shall deliver the designated recyclable materials to a recyclable material processing center, an end market for sale or reuse, or to an intermediate collection center for later delivery to a processing center or end market, according to Minnesota Statutes (M. S. 115A.95). 10.3 END MARKET CERTIFICATION Upon request by the City, the Contractor shall provide written certification to the City that all recyclable commodities identified will continuously be recycled and not disposed. Upon request, the Contractor shall provide the City with adequate documentation of end markets for each recyclable commodity. 11 Reports The Contractor will provide the City with monthly reports, in a mutually agreed upon format, on participation rates and weight of material collected by commodity. 11.1 MONTHLY REPORTS These reports shall be submitted monthly by the 15th day of the following month. Reports may be submitted electronically, but invoices must be submitted in paper form. a. Monthly reports must include weekly participation rates by route and date. b. Monthly reports must include total weight of recyclables collected monthly for all customers serviced and a calculation of average weight per stop. c. Monthly reports must include an estimated weight breakdown per recycling commodity. d. Monthly reports must include a calculation of residual percentage for the month. e. Invoices shall be submitted monthly, be complete and unabbreviated. Fridley Recycling Service Agreement Page 8 of 14 f. The monthly report shall alert the City to any pending conditions that may affect the City's recycling programs. 11.2 ANNUAL REPORTS The Contractor is encouraged to provide the City with an annual report that includes some of the following information: a. Trends in recovery rates and participation. b. Efforts the Contractor has made to expand recyclable markets. c. Summary of market trends in prices, technology advancements, specifications, and implications for municipal curbside recycling programs. d. Review Contractor's performance based on feedback from residents to City staff e. Review Contractor's recommendations for improvement in the City's recycling program, including enhanced public education and other opportunities for expansion. f. Review staff recommendations for improving Contractor's service. g. Opportunities for improvement with the remaining years under the current Agreement. 12 Meetings The City and the Contractor shall meet as needed to review educational and promotional materials, the recycling program, collection and customer service issues, reports and other items as necessary. The City may call meetings as needed to coordinate planning, development and implementation of new or changing program elements. The Contractor may request meetings as needed to help provide for more expeditiously resolution of program implementation issues. 13 Term of Agreement The term of this seven (7) year Agreement shall be from May 7, 2012 through April 30, 2019, the date of signature by the parties notwithstanding. This Agreement is renewable, upon the written mutual consent of the parties. 14 Insurance Prior to the commencement of any agreement, the Contractor shall submit certificates of insurance required on a form approved by the City Clerk, signed by an authorized representative of the insurance carrier, stating that all provisions of the specified requirements are satisfied. The certificates shall be submitted directly to the City for review and approval by the City Attorney. The Contractor shall not begin any work until the City has reviewed and approved the insurance certificates and has so notified the Contractor directly in writing. Any notice to proceed that is issued shall be subject to such approval by the City. The Contractor shall provide the City thirty (30) days written notice in the event the Contractor changes insurance. The City's acceptance of the insurance provided by the Contractor does not in any way relieve or decrease the liability of the Contractor hereunder. The liability insurance policy or policies shall be a standard form policy provided by a carrier authorized to do business in the State of Minnesota and shall not contain any exclusion that will restrict coverage on any operations performed by the Contractor or any subcontractors thereof. Fridley Recycling Service Agreement Page 9 of 14 The policy or policies shall afford contractual liability coverage to provide coverage for the specified indemnification requirements contained herein. 14.1 COMPREHENSIVE / GENERAL INSURANCE The Contractor shall provide comprehensive general liability insurance including premises - operations coverage, completed operations coverage, independent Contractor's coverage and contractual liability coverage meeting the indemnification requirements specified in Section 16. Indemnification, with limits not less than $5,000,000 combined single limit, including personal injury liability, bodily injury liability and property damage liability. 14.2 WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY The Contractor shall provide workers' compensation insurance and employers' liability insurance as required by law, with limits of at least $5,000,000 for any claim. 14.3 AUTO, BODILY INJURY, AND PROPERTY The Contractor shall provide automobile, bodily injury and property damage liability insurance, including coverage for all owned, hired, vehicles and employers' non - ownership liability coverages. Limits of liability should be for not less than $5,000,000 combined single limit for bodily injury and property damage liability. The policy or policies shall provide full insurance to cover all of the Contractor's operating exposure including but not limited to the picking up of the materials and the operation of vehicles. All responsibility for maintaining property insurance on any premises or structures owned or operated by the Contractor remains solely with the Contractor, who may at its option insure against any perils, and such responsibility shall remain with the Contractor until such time as this Agreement is terminated. 14.4 ERRORS AND OMISSIONS The Contractor shall have in force for any coverage provided by this Agreement an Errors and Omissions Coverage with limits of not less than $1,500,000 per occurrence and $4,500,000 aggregate. 14.5 CITY AS ADDITIONAL INSURED The Comprehensive /General, Auto, Bodily Injury and Property Insurance policies shall provide for the City as an additional insured party. 14.6 NOTICE OF CANCELLATION OR NON - RENEWAL All insurance policies shall provide that the City shall be given at least thirty (30) days prior written notice of any cancellation, termination or material modification of the required coverage. In no event shall the Contractor operate within the City without all insurance required by the City. The City reserves the right to cancel the Agreement upon ten (10) days written notice, in the event the Contractor is unable to secure insurance as required by the City. Fridley Recycling Service Agreement Page 10 of 14 14.7 DEDUCTIBLES All responsibility for payment of any sums resulting from any deductible provisions of self - insured retention conditions of the policy or policies shall remain with the Contractor. 15 Assignment Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 15.1 SUBCONTRACTOR The Contractor shall not enter into subcontracts for any of the services provided for in this Agreement without the express written consent of the City. 15.2 INDEPENDENT CONTRACTOR At all times and for all purposes hereunder, the Contractor is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find Contractor an employee of the City. 16 Indemnification The Contractor shall indemnify and hold harmless the City, its employees and agents, for all claims, damages, losses, and expenses, including, but not limited to, attorneys' fees, which they may suffer or for which they may be held liable, as a result of negligence or fraud of the Contractor, Contractor's employees, or subcontractors in the performance of this Agreement. 17 Employment and Nondiscrimination The proposer must agree to comply with all of the provisions of Minnesota Statute Section 181.59, which relate to civil rights and discrimination and all State and Federal Statutes regarding employment and discrimination. Service shall be provided without regard to race, color, creed, religion, national origin, and without regard to sex, age, disability, public assistance status, or sexual orientation. The proposer must agree to comply with employment practices whereby no applicant for employment or employee hired shall be discriminated against with respect to that person's hire, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment by reason of race, color, creed, religion, national origin, age, sex, disability, public assistance status, or sexual orientation, except as may be based upon bona fide occupational qualifications. 18 Entire Agreement The entire Agreement of the parties is contained therein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreement presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement Fridley Recycling Service Agreement Page 11 of 14 shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. Executed as of the day and year first above written. CITY OF FRIDLEY ALLIED WASTE SERVICES By Its Mayor and By 3 Its 3 Its City Manager Its Fridley Recycling Service Agreement Page 12 of 14 Exhibit A: Fridley Residential Curbside Recycling Collection Map Fridley Recycling Service Agreement Page 13 of 14 Exhibit B: Map of Alley and Manufactured Home Park Collection Sites c Fridley Recycling Service Agreement Page 14 of 14