HomeMy WebLinkAboutDAVID M. GRIFFITH & ASSOCIATES - Assistance to City in Filing Claims for State-Mandated Cost Reimbursements 11/18/96 - 1996-11-18U,
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE.BROCKWAY
CITY CLERK
November 20, 1996
David M. Griffith and Associates, Ltd.
4320 Auburn Boulevard, Suite 2000
Sacramento, California 95841
Dear Mr. Griffith:
The City Council of the City of Huntington Beach at the regular meeting held
November 18, 1996, approved execution of the enclosed agreement between the
city and David M. Griffith and Associates, Ltd., for a professional services
contract for preparation and filing of claims for state mandated cost
reimbursements.
Enclosed is a duly executed copy of the agreement for your records
Sincerely,
Connie Brockway
City Clerk
Enclosure: Agreement
G: fol loivup: agrmtltr/Gri f196: jc
( Telephone: 714-536-5227 )
Council/Agency Meeting Held: 189b
Deferred/Continued to:iG
UrApp oved Con itionall proved ❑Denied
ity Clerk's Sign re
Council Meeting Date: November 18, 1996
Department ID Number: AS 96-055
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Admini
PREPARED BY: ROBERT J. FRANZ, Deputy City Admin
SUBJECT: ASSISTANCE TO CITY IN FILING CLAIMS FOR STATE-MANDA
COST REIMBURSEMENTS
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: For the past several years, the City has contracted with the firm of
David M. Griffith and Associates to assist in State Mandated Costs Claim Preparation. The
City has been successful in retrieving nearly 100% of the claimed costs, including all of the
expense incurred for the cost of this contractual service. Once again, the City is faced with
several complex and potentially significant revenue -generating claims. Therefore, we feel it
appropriate to recommend entering into a similar agreement with the same firm and ensuring
the maximization of the City's return.
Funding Source: General Fund Non -Departmental Contingency
Recommended Action: Approve the agreement with David M. Griffith and Associates and
waive Insurance Requirements as approved by Settlement Committee.
Alternative Action(s): File the particular claims without the use of outside assistance.
Analysis: The League of California Cities recently reminded Cities to pay attention to this
potentially significant funding resource and specifically endorsed the services of Griffith and
Associates for their expertise and in-depth assistance available to Cities. It has become
increasingly more difficult to forecast the timing and/or the dollar amount of requested claims
to be reimbursed. When there are shortfalls in anticipated State revenues, Mandated Claim
Reimbursements to Cities are often reduced. Governmental entities generally receive 80%
of a claim within twelve months of filing, considering that there have been no "adjustments"
by auditors. Any deviations from "acceptable claim format" are very likely to be the subject
of substantial reductions in reimbursement. It is recommended that the City utilize the firm of
David M. Griffth to assist, us in the current claim filing process. Their many years of
t
&UEST FOR COUNCIL AC*N
MEETING DATE: November 18, 1996 DEPARTMENT ID NUMBER: AS 96-055
experience in this highly specialized field has ensured their clients of the maximum return in
requested claim reimbursement. Also, their assistance can be invaluable in the event of an
audit.
The only City obligation under the recommended contract would be a fixed fee of $5,000
which would be payable within 30 days following -submission of the Claims to the State
Controller -due November 30, 1996.
Environmental Status: Not applicable.
Attachment(s):
RCASB90.DOC -2- 11/12/96 11:43 AM
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND DAVID M. GRIFFITH AND ASSOCIATES, LTD. FOR
PREPARATION AND FILING OF CLAIMS FOR STATE
MANDATED COST REIMBURSEMENTS.
Table of Contents
1
Work Statement........................................................................................................1
2
City Staff Assistance.................................................................................................1
3
Time of Performance................................................................................................2
4
Compensation...........................................................................................................2
5
Extra Work................................................................................................................2
6
Method of Payment...................................................................................................2
7
Disposition of Plans, Estimates and Other Documents
............................................4
8
Indemnification and Hold Harmless............................................................. :........... 4
9
Workers' Compensation............................................................................................4
10
Insurance...................................................................................................................4
11
Certificates of Insurance..........................................................................................4
12
Independent Contractor..............................................................0.............................4
13
Termination of Agreement.......................................................................................5
14
Assignment and Subcontracting..............................................................................5
15
Copyrights/Patents...................................................................................................5
16
City Employees and Officials..................................................................................5
17
Notices.....................................................................................................................5
18
Immigration..............................................................................................................6
19
Entirety.....................................................................................................................7
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AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND DAVID M. GRIFFITH AND ASSOCIATES, LTD. FOR
PREPARATION AND FILING OF CLAIMS FOR STATE
MANDATED COST REIMBURSEMENTS.
THIS, AGREEMENT, made and entered into this 18th day of November
1996, by and between the City of Huntington Beach, a, municipal corporation of the State of
California, hereinafter referred to as "CITY", and DAVID M. GRIFFITH, LTD., an Illinois
corporation registered in California, hereinafter referred to as "CONTRACTOR."
WHEREAS, CITY desires to engage the services of a consultant to prepare and file
Claims for State Mandated Cost Reimbursement in the City of Huntington Beach; and
Pursuant to documentation on file in the office of.the City Clerk, the provisions of
HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied
with; and
CONTRACTOR has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows:
1. WORK STATEMENT
CONTRACTOR shall provide all services as described CONTRACTOR's
Mandated Cost Claiming Services, hereinafter referred to as Exhibit "A", which is attached
hereto and incorporated into this Agreement by this reference. Said services shall sometimes
hereinafter be referred to as "PROJECT."
CONTRACTOR hereby designates Allen Burdick, or other delegated representative, who
shall represent it and be its sole contact and agent in all consultations with CITY during the
performance of this Agreement.
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONTRACTOR in the
performance of this Agreement.
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Time is of the essence of this Agreement. The services of the CONTRACTOR
are to commence as soon as practicable after the execution of this Agreement and all tasks
specified in Exhibit "A" shall be completed within the filing time requirements established by the
State Controller's office. The time for performance of the tasks identified in Exhibit "A" are
generally to be shown in the Scope of Services on the Work Program/Project Schedule. This
schedule may be amended to benefit the PROJECT if mutually agreed by the CITY and
CONTRACTOR and not in conflict with filing deadlines of the State Controller's office.
4. COMPENSATION
In consideration of the performance of the services specified in Exhibit "A" CITY
agrees to pay CONTRACTOR as described in Section 3 of Exhibit "A," entitled "Costs and
Method of Payment."
In the event CITY requires additional services not included in Exhibit "A," or
changes in the scope of services described in Exhibit "A," CONTRACTOR will undertake such
work after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
A. CONTRACTOR shall be entitled to payments in accordance with the
payment schedules set forth in Exhibit "A".
B. Delivery of work product: A copy of every technical memo and report
prepared by CONTRACTOR shall be submitted to the CITY to demonstrate progress toward
completion of tasks. In the event CITY rejects or has comments on any such product, CITY
shall identify specific requirements for satisfactory completion. Any such product which has not
been formally accepted or rejected by CITY shall be deemed accepted..
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•
•
C. The CONTRACTOR shall submit to the CITY an invoice for each
progress payment due. Such invoice shall:
1) Reference this Agreement;
2) Describe the services performed;
3) Show the total amount of the payment due;
4) Include a certification by a principal member of the
CONTRACTOR's firm that the work has been performed in accordance
with the provisions of this Agreement; and
5) For all payments include an estimate of the percentage of work
completed.
Upon submission of any such invoice, if CITY is satisfied that
CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with
this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made
within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be
unreasonably withheld. If the CITY does not approve an invoice, CITY shall notify
CONTRACTOR in writing of the reasons for non -approval, within seven (7) calendar days of
receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be
suspended until the parties agree that past performance by CONTRACTOR is in, or has been
brought into compliance, or until this Agreement is terminated as provided herein.
D. Any billings for extra work or additional services authorized by CITY
shall be invoiced separately to the CITY. Such invoice shall contain all of the information
required above, and in addition shall list the hours expended and hourly rate charged for such
time. Such invoices shall be approved by CITY if the work performed is in accordance with the
extra work or additional services requested, and if CITY is satisfied that the statement of hours
worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any
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worked and costs .incurred is accurate. Such approval shall not be unreasonably withheld. Any
dispute between the parties concerning payment of such an invoice shall be treated as separate
and apart from the ongoing performance of the remainder of this Agreement.
7. DISPOSITION OF DOCUMENTS
CONTRACTOR agrees that all materials prepared hereunder shall be turned over
to CITY upon termination of this Agreement or upon PROJECT completion, whichever shall
occur first. In the event this Agreement is terminated, said materials may be used by CITY in the
completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the CITY
upon payment of fees determined to be earned by CONTRACTOR to the point of termination or
completion of the PROJECT, whichever is applicable. CONTRACTOR shall be entitled to
retain copies of all data prepared hereunder.
8. INDEMNIFICATION AND HOLD HARMLESS
CONTRACTOR hereby agrees to indemnify, defend, and hold and save harmless
CITY, its officers and employees from any and all liability, including any claim of liability and
any and all losses or costs arising out of the negligent performance of this Agreement by
CONTRACTOR, its officers or employees.
•��—• M
Waived by Settlement Committee on November 12, 1996.
ffl� Q�YiL -QCOLO
Waived by Settlement Committee on November 12, 1996.
11. CERTIFICATES OF INSURANCE} ADDITIONAL INSURED
ENDORSEMENTS
Waived by Settlement Committee on November 12, 1996. payment hereunder.
CONTRACTOR is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be
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responsible for any and all payment of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for CONTRACTOR
and its officers, agents and employees and all business licenses, if any, in connection with the
services to be performed hereunder.
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate CONTRACTOR's services hereunder at any time with or without
cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by
CITY shall be made in writing, notice of which shall be delivered to CONTRACTOR as
provided herein.
14. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work hereunder
shall not be delegated by CONTRACTOR to any other person or entity without the consent of
CITY.
CONTRACTOR shall not apply for a patent or copyright on any item or material
produced as a result of this Agreement, as set forth in 41 CFR 1-9.1.
16. CITY EMPLOYEES AND OFFICIALS
CONTRACTOR shall employ no CITY official nor any regular CITY employee
in the work performed pursuant to this Agreement. No officer or employee of CITY shall have
any financial interest in this Agreement in violation of California Government Code §§1090, et
seq.
17. NOTICES
Any notice or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to CONTRACTOR's agent (as designated
in Section 1 hereinabove) or to CITY's Director of Administrative Services as the situation shall
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warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same
in the United States Postal Service, addressed as follows:
TO CITY: TO CONTRACTOR:
Robert Franz, Deputy City Administrator David M. Griffith and Associates, Ltd.
City of Huntington Beach 4320 Auburn Blvd., Suite 2000
2000 Main Street Sacramento, CA 95841
Huntington Beach, CA 92648
18. IMMIGRATION
CONTRACTOR shall be responsible for full compliance with the immigration
and naturalization laws of the United States and shall, in particular, comply with the provisions
of the 8 U.S.C. § 1324 regarding employment verification.
Rest of page not used
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19. ENTIRETY
The foregoing, and Exhibit "A": attached hereto, set forth the entire Agreement
between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized offices the day, month and year first above written.
DAVID M. GRIFFITH & ASSOCIATES, CITY OF HUNTINGTON BEACH, A
LTD., municipal corporation of the State of
California
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print name
ITS: (circle one) Chainnan/Presiden ice President
By:
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print name
ITS: (circle one Secret Chief Financial
fficer/Asst- S�ry -Treasure
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RLS 96-773
Mayor .
ATTEST:
City Clerk
W W " • -01 . w•]w•�.
City Attorney tb I Z s�f`
INITIATED AND A$PR04D:
Administrator
•
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Exhibit "A"
Mandated Cost Claiming Services
The -City of Huntington Beach (hereinafter "City") and David M. Griffith & Associates, Ltd.
(hereinafter "Consultant") jointly agree as follows:
1. Scope of Services
The Consultant shall prepare claims for reimbursable state mandated costs as provided
herein.
A. Annual State Mandated Cost Reimbursement Claims ,
The Consultant shall prepare and file applicable actual annual state mandate cost
reimbursement claims for the 1995-96 fiscal year, and estimated claim(s) for the 1996-97
fiscal year. The following is a list of eligible claims:
.(1) Open Meetings Act as specified in Chapter 641, Statutes of 1986.
(2) Business License Tax Reporting as specified in Chapter 1490, Statutes of 1984.
(3) Absentee Ballots as specified in Chapter 77, Statutes of 1978.
(4) Mandate Reimbursement Process as specified in Chapter 486, Statutes of 1975
and Chapter 1489, Statutes of 1984.
(5) Firefighter Cancer Presumption as specified in Chapter 1568, Statutes of 1982.
(6) Peace Officer Cancer Presumption as specified in Chapter 1171, Statutes of 1989.
(7) Stolen Vehicle Notification as specified in Chapter 337, Statutes of 1990.
(8) Rape Victim Counseling Center Notices as specified in Chapter 999, Statutes of
1991.
(9) Law Enforcement Inmate AIDS Testing as specified in Chapter 1579, Statutes of
1988 and Chapter 768, Statutes of 1991.
(10) Misdemeanors: Booking and Fingerprinting as specified in Chapter 1105,
Statutes of 1992.
Exhibit "A"
Page 1 of 4
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(11) Other claims: The Consultant may also file additional claims if any such eligible
claims remain.
The fiscal year 1995-96 actual claims to be filed are claims that are included in the State
Controller's Claiming Instructions that provide for timely filed claims to be submitted by
November 30, 1996.
B. All Other Claims for Which Claiming Instructions Are Issued in FY 1996-97
With the exception of the claims in Scope of Services I.A. above,, the Consultant shall
prepare, submit and file on the City's behalf, all other applicable actual and estimated
State mandated cost reimbursement claims for which State Controller Claiming
Instructions are issued in the 1996-97 fiscal year. These claims include the following:
(1) 1996 Annual Claims Bill claims - These include all applicable eligible claim(s)
authorized or funded by SB 91 (Thompson) of the 1996 California Legislative
Session and/or any other 1996 California legislation containing an appropriation
for state mandated cost reimbursement claims.
(2) Other New State Mandated Cost Reimbursement Claims - With the exception of
the claims contained in Scope of Services I.A. and 1.B.(1) above, these claims
include all eligible actual and estimated reimbursement claims authorized for
filing pursuant to State Controller Claiming Instructions which are issued during
the 1996-97 fiscal year.
2. Consultant Claim Filing Requirements
The Consultant shall file these claims to the extent that appropriate documentation is
available and verifiable. The City explicitly acknowledges that the Consultant does not
warrant under Scope of Services that claims will be filed for all of the applicable
mandates listed.
3. Costs and Method of Compensation
A. Scope of Services LA. - Annual State Mandated Cost Reimbursement
Claims
For all of the above services provided pursuant to Scope of Services LA., the
City agrees to pay the Consultant upon submission of the claims to the State
Controller, a fixed fee of five thousand dollars ($5,000.00). The fixed fee shall
be due upon receipt of Consultant's invoice following submission of such claims.
B. Scope of Services 1.11. - Annual Claims Bill Claims and All Other New
Claims for Which Claiming Instructions are Issued in FY 1996-97
Exhibit "A"
Page 2 of 4
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9 . 0
At its discretion, the City shall at the time of contract execution, select either of
the two methods of compensation described below. Selection of the preferred fee
and payment arrangement shall be made by checking the appropriate box
adjacent to the preferred option.
OPTION 1: Fixed Fee Arrangement
For all the above services provided pursuant to Scope of Services 1.B.(1)
and (2), the City agrees to pay the Consultant upon submission of the
claims to the State Controller, a fixed fee of four thousand five hundred
dollars $4,500.00).. The fixed fee shall be due upon receipt of
Consultant's invoice following submission of such claim(s).
OPTION 2: Contingent Fee Arrangement
For all of the above services provided pursuant to Scope of Services
1.B.(1) and (2), the City agrees to pay the Consultant a fee equal to thirty
percent (30%) of all claim(s) filed and paid by the State to a maximum of
five thousand dollars ($5,000.00). If the amount of Consultant filed
claims is less than one thousand six hundred and sixty-seven dollars
($1,677.00), the City shall pay the consultant a fixed fee of five hundred
dollars ($500.00). Payment for contingent claiming shall be made from
monies actually received from the State resulting from the Consultant's
efforts. Monies received shall be defined as actual payments resulting
from the Consultant's filing of actual and estimated state mandated cost
reimbursement claim(s) listed in Scope of Services 1.B.(1) and (2). The
fee, which in no case shall exceed the maximum amount, is due within
thirty days of City receipt of reimbursement from the State.
4. Services and Materials to be Furnished by the City
The Consultant shall provide guidance to the City in determining the data required for
claims submission. The Consultant shall assume all data so provided to be correct. The
City further agrees to provide all specifically requested data, documentation and
information to the Consultant in a timely manner. Consultant shall make its best effort
to file claims in a timely manner pursuant to Scope of Services. Consultant shall not be
liable for claims that cannot be filed as a result of inadequate data or data provided in an
untimely manner. For purposes of this Agreement, data that is requested by the
Consultant must be provided within three weeks of the request, or three weeks prior to
the filing deadline, whichever would come first, to be deemed to have been received in a
timely manner. It is the responsibility of the City to provide the Consultant with
payment information upon receipt of disbursements from the State for any and all claims
filed pursuant to this agreement.
Exhibit "A"
Page 3 of 4
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5. Not Obligated to Third Parties
The City shall not be obligated or liable hereunder to any party other than the
Consultant.
6. Consultant Liability if Audited
The Consultant will assume all financial and statistical information provided to the
Consultant by City employees or representatives is accurate and complete. Any
subsequent disallowance of funds paid to the City under the claims for whatever reason
is the sole responsibility of the City.
7. Indirect Costs
The cost claims to be submitted by the Consultant may consist of both direct and indirect
costs. The Consultant may either utilize the ten percent (10%) indirect cost rate allowed
by the State Controller or calculate a higher rate if City records support such a
calculation. The Consultant by this Agreement is not required to prepare a central
service cost allocation plan or a departmental indirect cost rate proposal for the City.
8. Consultant Assistance if Audited
If audited, the Consultant shall make workpapers and other records available to the State
auditors. If requested by the City, the Consultant shall provide assistance to the City in
defending claims submitted if an audit results in a disallowance of at least twenty percent
(20%) or seven hundred fifty dollars.($750.00), whichever is greater. Reductions of less
than twenty percent (20%) or seven hundred fifty dollars ($750.00) shall not be
contested by the Consultant.
9. City Contact Person
The City designates the following individual as contact person for this contract:
Name: Arnold Ross Telephone: (714) 536-5228
Title: Senior Accountant Fax: (714) 374-1571
Address: City of Huntington Beach, Dept. of Administrative Services
2000 Main Street, Huntington Beach, CA 92648
Exhibit "A"
Page 4 of 4
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SB 90 State Mandated Claims
Prepared w/Assistance of D. M. Griffith
Recent Historical Experience
Title of
Fiscal
Estimated Amount
Amount
Date of
Claim
Year
or Actual Requested
Received
Receipt
Mandated
93/94
A 15,791
15,791
7/05/96
Claim Costs
94/95
E 12,500
12,500
4/28/95
95/96
E 7,500
7,500
2/06/96
Bus. Tax
92/93
A 41,879
41,879
4/28/95
Reporting
93/94
A 10,149
10,1.49
11/13/95
94/95
E 8,000
8,000
*
3/13/95
95/96
E 9,000
3,389
**
2/06/96
Open Meetings
85/86 thru
89/90
A 96,276
63,647
* * *
7/01 /96
91 /92
A 28,484
8,938
* * *
7/01 /96
92/93
A 30,034
93/94
A 33,909
***
94/95
E 32,366
95/96
E 26,000
Stolen Vehicles
92/93
A 4,663.
2,816
* *
10/09/96
93/94
A 4,847
2,997
**
10/09/96
94/95
A 3,997
2,370
**
10/09/96
_
95/96
E 3,000
1,794
**
10/09/96
* State Controller has yet to complete review and release funds on these 94/95 Actuals
** Incomplete State appropriation has allowed but a partial payment of these Claims
*** City & Consultantsare currently disputing State's.Disposition on these Claims
•
CITY OF HUNTINGTON BEACH
17 INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
,D�vio /r!• G�C/Fr/ rft ��SSOC.
i9,°Pr�av�r� a� 8�910
To Settlement Committee
From Arnie Ross
- Sr. Accountant
Re Request for Insurance Waiver Date 11/12/96
for Professional Services Contract
This matter relates to a Request for Insurance Waiver regarding the Professional Services
Contract with David M. Griffith & Associates. For the past eight or nine years, the City has
contracted with this firm for purposes of assisting the city in the filing of Claims for State -
Mandated Cost Reimbursments . The material is Fed- Expressed to their Office in
Pasadena ........ and the finished product is Fed -Expressed back to us within a week or so. None
of the work they perform is done on City premices.
Due to the lateness of the date and the fact that materials have already been forwarded to them
for their input ( Final copies must be postmarked to the State no later t n j��0/96), it is
essential that we move quickly if we are to avoid doing an expost factoko�yhis item.
Your assistance would be much appreciated!
ioN1
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