The URL can be used to link to this page

Home My WebLink AboutNovember 17, 2014 Agenda Packet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¶VFRPSUHKHQVLYHSODQ$VVXFKWKH&RXQFLOKHUHE\ GLVSHQVHVZLWKWKHUHTXLUHPHQWRI0LQQHVRWD6WDWXWH6HFWLRQ6XEGWKDW PLJKWUHTXLUHWKH&LW\3ODQQLQJDQG=RQLQJ&RPPLVVLRQWRSHUIRUPD FRPSUHKHQVLYHSODQFRPSOLDQFHUHYLHZRIWKHDFWLRQGHVFULEHGE\WKLVUHVROXWLRQ DQGWKDWWKH&RPPRQ&RXQFLOGHWHUPLQHVWKHSXUFKDVHDQGVDOHRIWKHUHDO SURSHUW\FRYHUHGE\WKLVUHVROXWLRQZRXOGSURPRWHWKHSXEOLF¶VKHDOWKVDIHW\RU ZHOIDUH 3DFNHW3J 'D 5HJXODU0HHWLQJ1RYHPEHU '52&2*&RRSHUDWLYH$JUHHPHQW $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJDFRRSHUDWLYHDJUHHPHQWZLWKWKH 5RFKHVWHU2OPVWHG&RXQFLORI*RYHUQPHQWVIRUWUDQVSRUWDWLRQSODQQLQJVHUYLFHVIRU ',WHPZDVPRYHGWR3XOOHG)URP&RQVHQW$JHQGD 'WORWWKDWZDVUHSODWWHGDVSDUWRI7KH*DUGHQV)RXUWK6XEGLYLVLRQFRQGLWLRQHG RQIXOOH[HFXWLRQRIWKHDJUHHPHQWE\WKHGHYHORSHU '0RWRU*UDGHUV:KHHO/RDGHU6HDVRQ/HDVH 3DFNHW3J 'D 5HJXODU0HHWLQJ1RYHPEHU $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJDORDGHUDQGJUDGHUUHQWDODJUHHPHQW ZLWK=LHJOHU&$7 '6WDWH7UDQVLW*UDQW(OHFWURQLF)DUH6\VWHP $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJDQDJUHHPHQWZLWKWKH0LQQHVRWD 'HSDUWPHQWRI7UDQVSRUWDWLRQLQWKHDPRXQWRIRUXSWRRIWKHSULFH IRUWKHSXUFKDVHRIDQHOHFWURQLFIDUHV\VWHPWKURXJK-XQH '$33/,&$7,216)25<($567$7(75$16,7$66,67$1&( $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJDQDJUHHPHQWZLWKWKH6WDWHRI 0LQQHVRWDWRSURYLGHSXEOLFWUDQVSRUWDWLRQVHUYLFHLQ5RFKHVWHU0LQQHVRWDIRU &<UHJXODUURXWHWUDQVLW $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJDQDJUHHPHQWZLWKWKH6WDWHRI 0LQQHVRWDWRSURYLGH=,36',$/$5,'(SXEOLFWUDQVSRUWDWLRQVHUYLFHLQ5RFKHVWHU 0LQQHVRWDIRU&<'LDO$5LGHWUDQVLW ',WHPZDVPRYHGWR3XOOHG)URP&RQVHQW$JHQGD 38//(')520&216(17$*(1'$ $SSURYDORI2FWREHU&RXQFLO0HHWLQJ0LQXWHV ,WHP'ZDVSXOOHGIURPWKH&RQVHQW$JHQGDIRUIXUWKHUGLVFXVVLRQ &RXQFLOPHPEHU+UXVNDWKDQNHG&LW\&OHUN5HHYHVIRUKLVH[FHOOHQWPLQXWHVDQG WKDWWKH\DUHQRZLQFOXGHGLQWKHSDFNHWV+HDOVRFRPPHQWHGWKDWDVKHZDV DEVHQWIURPWKHODVWPHHWLQJKHZLOODEVWDLQIURPYRWLQJRQWKHPLQXWHV 5(68/7$'237('>72@ 029(5 0LFKDHO:RMFLN 6(&21'(5 0DUN+LFNH\ $<(6 6WDYHU6Q\GHU%LOGHUEDFN:RMFLN+LFNH\0HDQV $%67$,1 +UXVND &XUIHZ2UGLQDQFH ,WHP'ZDVSXOOHGIURPWKH&RQVHQW$JHQGDIRUIXUWKHUGLVFXVVLRQ 0D\RU%UHGHFRPPHQWHGRQWKHWHUPVRIWKHFXUIHZRUGLQDQFHDQGDVNHGLILWV HQIRUFHG &RXQFLOPHPEHU+UXVNDFRPPHQWHGWKDWKHKDVZLWQHVVHGLWEHLQJHQIRUFHGDQG XVHGDVDWRROWRDGGUHVVVRPHLVVXHV+HDOVRTXHVWLRQHGZK\WKLVNHHSVJHWWLQJ EURXJKWEDFNHYHU\WZR\HDUVLILWVHIIHFWLYHDQGLWZRUNV&LW\$WWRUQH\$GNLQV VWDWHGWKDWEHFDXVHRIFRXUWUXOLQJVLWPXVWEHUHYLHZHGRQDUHJXODUEDVLV $SSURYHGDXWKRUL]LQJWKH&LW\$WWRUQH\WRSUHSDUHDQ2UGLQDQFH$0(1',1*$1' 5((1$&7,1*6(&7,21$2)7+(52&+(67(5&2'(2) 25',1$1&(65(/$7,1*727+(5($'237,212)7+(&,7<¶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¶VXQLODWHUDOUHORFDWLRQRI3(*$FFHVVFKDQQHOVZLWKRXWWKH&LW\¶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¶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¶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¶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¶VGRFXPHQWPDQDJHPHQWV\VWHPE\WKH&LW\&OHUNDQG VHUYHGXSIRUYLHZLQJE\WKH&RXQFLOLQHOHFWURQLFIRUPDW 7KHUHVROXWLRQIXUWKHUUHTXLUHVGHSDUWPHQWKHDGVFRPSO\ZLWK6WDWHPXQLFLSDOFRQWUDFWLQJODZVDQG VSHFLILHVWKDWWKHUHVROXWLRQVKDOOQRWGHWUDFWIURPFRQWUDFWDXWKRULW\GHOHJDWHGE\FKDUWHUWRWKH YDULRXVERDUGVDQGFRPPLVVLRQVRIWKH&LW\ &281&,/$&7,215(48(67(' ŐƌĂŶƚŝŶŐĚĞƉĂƌƚŵĞŶƚŚĞĂĚƐĂŶĚƚŚĞŝƌĚĞƐŝŐŶĂƚĞĚĚŝǀŝƐŝŽŶŚĞĂĚƐ $GRSWWKHDWWDFKHGUHVROXWLRQ ĂƵƚŚŽƌŝƚǇƚŽĂƉƉƌŽǀĞĐŽŶƚƌĂĐƚƐŽŶďĞŚĂůĨŽĨƚŚĞŝƚǇŽĨZŽĐŚĞƐƚĞƌ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¶VSULPDU\ RYHU GXW\LVWRHQIRUFHWKHJHQHUDOFULPLQDO ODZVRIWKHVWDWH 6DLGSRVLWLRQFKDUJHVWKLVHPSOR\HHZLWKWKHSUHYHQWLRQDQGGHWHFWLRQRI FULPH 6DLGSRVLWLRQJLYHVWKLVHPSOR\HHWKHIXOOSRZHURIDUUHVWDQG 6DLGSRVLWLRQLVDVVLJQHGWRWKH5RFKHVWHU3ROLFH'HSDUWPHQW %(,75(62/9('WKDWWKLVJRYHUQLQJERG\KHUHE\UHTXHVWVWKDWWKHHPSOR\HHV DVVLJQHGWRWKHKDOIWLPHSDWURORIILFHUSRVLWLRQEHDFFHSWHGDVDPHPEHURIWKH3XEOLF (PSOR\HHV3ROLFHDQG)LUH3ODQHIIHFWLYHWKHGDWHRIWKHHPSOR\HH¶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·VFRQWULEXWLRQWR WKHSUHPLXPVZLOOEHRQHKDOI RIWKHDPRXQWRXWOLQHGLQWKHFXUUHQW&%$ /LIHLQVXUDQFHEHQHILWVPD\EHSURYLGHGDVGHILQHGLQWKH&L W\·VLQVXUDQFHSROLF\ (PSOR\HHVDUHHOLJLEOHWRSDUWLFLSDWHLQWKH3XEOLF(PSOR\HH·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rial]] [[837,2163,896,2177][12][,I,][Arial]] $ ' ( &+%& \ FRPSHQVDWRU\KRXUVEH\RQGWKHODVWSD\GDWHLQWKHFDOHQGDU SHUGD\NDDZRUNGD\ ´+RXUVZRUNHGµ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ó 'D 3DFNHW3J RQO\ZKHQWKH\H[FHHGWKHZRU ´+RXUVZRUNHGµZLOOLQFOXGHSDLGWLPHIRUVLFNOHDYHY $FDSRIRQHKXQGUHGWZHQW\ KRXUVRIFRPSHQV E\WKH3ODQW0DQDJHURUKLVRUKHUGHVLJQHHWRSHUIRUPVRPHDGGLWLRQDOUHVSRQVLELOLWLHVLQWKHD EDFNSD\SUDFWLFHV6KLIWH[WHQVLRQVGRQRWDSSO\WRWKHWKUHH 3DJH_ VWDUWWLPHLIWKHUHTXHVWHGVWDUWWLPHLVPRUHWKDQRQHKRXUSULRUWRWKHUHJXODUVKLIWVWDUWWLPH KRXUV WRZRUNWZHOYH KRXUVDQGZKRZRUNLQH[FHVVRIIRUW\ KRXUVSHUZHHN WKHLUUHJXODUO\VFKHGXOHG SUH DWWLPHDQGRQH KDOI ó UDWHRIUHJXODUSD\ 7REHSDLGIRUWKHVHKROLGD\VLWVKDOOEHQHFHVVDU\IRUWKHHPSOR\HHWRZRUNRUEHRQ HLJKW HDFKFDOHQGDU\HDU HPSOR\HHV ,WVKDOODSSO\WRDQ ZRUNHGLQH[FHVVRI SD\SHULRG DIWHUWKHHQGRIWKHLUVKLIW KDOI ó WR (PSOR\HHV ZKRUHTXHVWDIOH[LEOHZRUNVFKHGXOHZLOOEHHOLJLEOHIRURYHUWLPH 6KLIWHPSOR\HHV 3ODQW2SHUDWRUVDQG ZKRZRUNLQH[FHVVRI WRU\WLPHZLOOEHDSSOLHGDIWHUWKHODVWSD\GDWHLQ'HFHPEHURI ZHHN VKLIWH[WHQVLRQ DWWLPHDQGRQH SDLGRUWRWDNHFRPSHQVDWRU\WLPHDWWKHWLPHDQGRQH KDOI ó UDWHRIUHJXODUSD\ @KRXUVSHU VKLIWHPSOR\HHV DQGKROLGD\V VKLIWHPSOR\HHVZRUNPRUHWKDQ SULRUWRWKHGHVLJQDWHGVWDUWWLPH PLQLPXP EHFDXVHWKHHPSOR\HHKDVQRWOHIWWKH VHQFHRID:DWHU5HFODPDWLRQ3ODQWVXSHUYLVRU« Q\ ZKRDUHFDOOHGEDFNWRZRUN HGLQWKHQHZVFKHGXOH DQGKROLGD\V KRXUPLQLPXPGRHVQRWDSSO\WRD > $PLQLPXPRIWKUHH KRXUVVKDOOEHSDLG FRPSHQVDWRU\WLPH E\QRQ HLJKW\ IRUW\ SHUZHHN PRUHWKDQRQHKXQGUHGWZHQW UHIOHFWFXUUHQWFDOO WKHUHJXODUVFKHGXOHGVKLIW FRPSHQVDWRU\WLPH WLPHDQGRQH KRXUV QRQ PRUHWKDQRQHKRXU VLFNOHDYHYDFDWLRQ GD\KRXUVLGHQWLIL KLJKHUFODVVLILFDWLRQ $OOKRXUV \HDUWKHUHDIWHU DQGIRUW\ QWKHLUGD\VRII WKH 0RGLILFDWLRQV VFKHGXOHG FDWLRQ :KHQ 7KLVWKUHH SDLGDW \HDU IRU WKH RI ' [[691,2183,750,2197][12][,I,][Arial]] R ( ** + KDOI ó WLPHVWKHLUSD\3HUPLVVLRQIRUXVHRIVLFNOHDYHIRU $OO´VDYHGµYDFDWLRQHDUQHGE\VDU\H[SHQVHVQ 7KRVHVKLIWHPSOR\HHVQRWVFKHGXOHGWRZRUNDQGZKRGRQRWZRUNRQDKROLGD\VKDOOUHFHLYHHLJKW9DFDWLRQZLOODFFUXHIURPDQHOLJLEOHHPSOR\HH·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·VRUJDQL]DWLRQDOSROLF\RQWKHGHILQLWLRQRILPPHGLDWHIDPLO\PHPEHU VLFNOHDYH H\GHSRVLWHGLVWD[GHIHUUHGDQGSD\RXWVDUHWD[IUHHIRUPHGLFDOO\UHODWHGH[SHQVHVWKDWWKH+&63 3DJH_ OLHX LRQDOKRXUVRISD\DWWKHLUUHJXODUKRXUO\UDWHRUWKH\PD\EDQNHLJKW KRXUVLQ JUDQWHGDQ\YDFDWLRQXQWLOWKH\KDYHEHHQHPSOR\HGIRUVL[ PRQWKV KRXUVZLOOEHJLYHQLQ GHILQHGLQWKH&LW\·V2UJDQL]DWLRQ6LFN/HDYH3ROLF\ LVDGGUHVVHGLQ$UWLFOH6HQLRULW\6HFWLRQ$3UREDWLRQDU\3HULRG DQGVKDOOEHIRUWKHDFWXDOWLPHUHTXLUHGEXWQRWWRH[FHHGWKUHH ZRUNGD\V DFFRXQWFDQEHXVHGWRFRYHUPHGLFDOO\QHFHV 3ODQW2SHUDWRUVDQG ZKRZRUNVKDOOEHFRPSHQVDWHGDWWZRDQGRQH RDGLIIHUHQWWRSLF HSODFH 'HFHPEHUDQGDIWHUWKHODVWSD\GDWHHDFK'HFHPEHUWKHUHDIWHU KRXUO\UDWHIRUDOOKRXUVZRUNHG(LJKW KRXUVRIEDQN ODVWSD\GDWHLQ YDFDWLRQRUVLFNOHDYHWKHGD\EHIRUHDQGDIWHUWKHKROLGD\ µDQGU VSRXVHFKLOGUHQSDUHQWVEURWKHUVVLVWHUVDQGVSRXVH VSDUHQWV DVLWUHODWHVW ,QVXUDQFH DQGWKHUHPDLQGHUZLOOEHSDLG6HHH[DPSOHLQ& WLFLSDQWLQFXUVVXEMHFWWRWKHUXOHVDSSOLHGE\WKH0656 HPSOR\HH·VDFFUXDOUDWHZLOOEHDSSOLHGIROORZLQJWKH 5HWLUHH DVWVHQWHQFHIURPWKLV6HFWLRQ+ $+&63LVDWD[IUHHVDYLQJVDFFRXQW7KH 5HPRYHXQQHFHVVDU\ODQJXDJHDVIROORZV 0RGLI\WKHWLWOHRIWKLVDUWLFOHWRUHDG´ 0HPEHUVRIWKHLPPHGLDWHIDPLO\DUH DQGSD\KHDOWKFDUHDQGORQJ WKLVODQJXDJHDVLW (PSOR\HHVVKDOOQRWEH VDYHGµDIWHU HSDUDWHWKHO SD\PHQW DGGLW DWWHQGDQFH UHJXODU DSSURYHG 'HOHWH [[350,2159,409,2173][12][,I,][Arial]] + [[577,2180,636,2194][12][,I,][Arial]] , ´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·VVSRXVHWXUQVDJHSULRUWRWKHUHWLUHHDQGLVHOLJLEOHIRUDQGHQUROOHGLQ0HG 3DJH_ (IIHFWLYH-DQXDU\ LQVXUDQFH HIIHFWLYHWKHILUVWRIWKHPRQWKIROORZLQJ &LW\·V0RQWKO\&RVW ELUWKGD\ WZR LQGLYLGXDOVXQGHUWKH&LW\·VSODQLIQRRWKHUGHSHQGHQWVUHTXLUHFRYHUDJH WKHGHQWDOFRYHUDJHWREHHIIHFWLYHWKHILUVWRIWKHPRQWKIROORZLQJWKHGDWHRIKLUH DQGOLIH WK ILIWK ELUWKGD\ GHQWDO &LW\RI5RFKHVWHU%HJLQQLQJRQWKHUHWLUHH·VVL[W\ 'HOHWHWKHVHFRQGSDUDJUDSKSHUWKHUHFHQWO\DSSURYHGPHGLFDOSODQ DQGDPD[LPXPRIWKHDPRXQWRIFRYHUDJHDYDLODEOH ILIWK ZLQJUHFHQWO\DSSURYHGPHGLFDO FRYHUDJH LIDQ\ LV FRYHUDJH IRUHOLJLEOHQHZHPSOR\HHVZLOOEH LVDQ\DPRXQWLQWKRXVDQG %DVLF0HGLFDO3ODQ7LHU )RUWKHUHWLUHHXQWLODJHVL[W\ HQUROOVLQGHSHQGHQWKHDOWK 7KH&LW\ZLOOSD\HLJKW\ WK $IWHUWKHUHWLUHH·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·V2UJDQL]DWLRQDO3ROLF\SXUS RVHRIZKLFKLVWRLPSURYHWKHHPSOR\HH RUPDOZRUNKRXUVPD\EHDGMXVWHGWRDYRLGRYHUWLPHSD\PHQWVZKLFKPD\ :KHQDQHPSOR\HHWKURXJKPXWXDODJUHHPHQWZLWKPDQDJHPHQWDWWHQGVDVFKRRORUFRQIHUHQFHWKH 'D 3DFNHW3J FHVWRVSHFLILFWUDLQLQJHYHQWV 3DJH_ [[180,447,239,461][12][,I,][Arial]] [[237,447,296,461][12][,I,][Arial]] [[520,447,579,461][12][,I,][Arial]] 'HGXFWLEOH+HDOWK3ODQFRYHUDJH RQJRLQJRSHUDWLRQDOQHHGVRIWKH:DWHU5HFODPDWLRQ3ODQW &RQWULEXWLRQWR+6$ HPSOR\HH HOHWHUHIHUHQ VXSSRUWV :DWHU5HFODPDWLRQ3ODQWRQDGD\KHVKHZRXOGQRUPDOO\EH $QQXDO µ ' [[180,1076,239,1090][12][,I,][Arial]] [[237,1076,296,1090][12][,I,][Arial]] [[520,1076,579,1090][12][,I,][Arial]] 7KH&LW\ HYHQWV 8SGDWHWRUHIOHFWUHYLVLRQVWRRUJDQL]DWLRQDOSROLF\ 7UDLQLQJDQG&RQIHUHQFHV HOLJLEOHHPSOR\HHVVHOHFWLQJWKH+LJK 'HGXFWLEOH0HGLFDO3ODQ UHJXODUUDWHRISD\XSWRHLJKW KRXUV WKHVHHGXFDWLRQDO (PSOR\HH&KLOG UHQ (PSOR\HH6SRXVH (PSOR\HH2QO\ 'HGXFWLEOH0HGLFDO3ODQ ::2$6HFWLRQDO0HHWLQJV WKHLU03&$FHUWLILFDWHV /HDYH RZHYHUQ )DPLO\ UHVXOWIURPDWWHQGDQFHDW (PSOR\HH&KLOG UHQ (PSOR\HH&KLOG UHQ PHQGWKHWLWOHWRUHDG´ +LJK FRPSHQVDWHGIRUWKHLU (PSOR\HH6SRXVH(PSOR\HH6SRXVH )XQHUDO WKH (PSOR\HH2QO\ PDQDJHPHQW+ ZLWK %HUHDYHPHQW IRUDOOEHQHILW )DPLO\)DPLO\ HG +LJK EDODQF [[2222,2129,2281,2143][12][,I,][Arial]] $ 6HFWLRQ 1HZ Q 6FKRROVDQG&R )XQHUDO/HDYH ,QVXUDQFH IHUHQFHV 6HFWLRQPHHWLQJVDVUHTXLUHGWRLPSURYHWKHLUTXDOLILFDWLRQVDQGPDLQWDLQWKHLUFHUWLILFDWLRQ DQGIURP\HDUWR\HDUWKHUHDIWHUXQOHVVHLWKHUSDUW\VKDOOQRWLI\WKHRWKHULQZULWLQJE\0D\RI 7HFKQLFDO6HPLQDUVDQGRU QW·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rial]] [[350,2125,409,2139][12][,I,][Arial]] [[520,2125,579,2139][12][,I,][Arial]] [[684,2129,743,2143][12][,I,][Arial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¾¾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«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rial]] [[464,2160,523,2174][12][,I,][Arial]] [[294,2161,353,2175][12][,I,][Arial]] [[917,2164,976,2178][12][,I,][Arial]] '* % ( ¾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ŝƐƚŽƌŝĐĂůĂƚĂ ŝŶϬϬϬΖƐ ϮϬϭϮϮϬϭϯϮϬϭϰ&ϮϮϬϭϱϮϬϭϲϮϬϭϳ ZWhZĂƚĞ/ŶĐƌĞĂƐĞϬ͘ϬйϬ͘Ϭйϯ͘Ϭйϯ͘ϱйϭ͘ϳйϭ͘ϳй ZĞǀĞŶƵĞ &ŝŶĂŶĐŝŶŐΘKƚŚĞƌEŽŶͲKƉĞƌĂƚŝŶŐ/ƚĞŵƐ͗ ŽŶĚΘ/ŶƚĞƌĞƐƚZĞůĂƚĞĚǆƉĞŶƐĞƐ;Ψϯ͕ϳϲϯͿ;Ψϯ͕ϱϱϮͿ;Ψϯ͕ϮϭϬͿ;Ψϯ͕ϰϳϯͿ;Ψϰ͕ϳϰϰͿ;Ψϰ͕ϱϬϱͿ D 'D 52&+(67(538%/,&87,/,7,(6 (/(&75,&87,/,7< 0DQDJHPHQW5HSRUWLQJ3 / ,ŝƐƚŽƌŝĐĂůĂƚĂϮϬϭϰϮϬϭϱsĂƌŝĂŶĐĞ й ϮϬϭϱƚŽKƌŝŐ ŝŶϬϬϬΖƐ ϮϬϭϮϮϬϭϯKƌŝŐĚŐƚϮϬϭϰ&ϮϮϬϭϱKƌŝŐĚŐƚĚŐƚsĂƌŝĂŶĐĞ ZĞǀĞŶƵĞ ZĞƚĂŝůůĞĐƚƌŝĐΨϭϮϵ͕ϰϴϬΨϭϮϴ͕ϴϲϰΨϭϯϯ͕ϬϴϴΨϭϯϭ͕ϭϯϴΨϭϯϳ͕ϰϯϳΨϭϯϵ͕ϱϭϯ;ΨϮ͕ϬϳϳͿͲϭ͘ϱй ;Ψϭ͕ϰϭϯͿ;Ψϭ͕ϯϲϭͿ;ΨϱϮͿϯ͘ϴй dŽƚĂůKƉĞƌĂƚŝŶŐǆƉĞŶƐĞƐΨϯϱ͕ϬϯϱΨϯϱ͕ϴϱϯΨϯϴ͕ϮϬϰΨϯϳ͕ϳϵϮΨϰϬ͕ϯϭϳΨϯϵ͕ϱϳϭΨϳϰϱϭ͘ϵй EĞƚKƉĞƌĂƚŝŶŐ/ŶĐŽŵĞ;>ŽƐƐͿΨϭϰ͕ϴϳϴΨϭϭ͕ϵϯϯΨϭϮ͕ϯϯϰΨϭϬ͕ϵϰϭΨϭϰ͕ϭϯϰΨϭϱ͕ϱϯϱ;Ψϭ͕ϰϬϮͿͲϵ͘Ϭй &ŝŶĂŶĐŝŶŐΘKƚŚĞƌEŽŶͲKƉĞƌĂƚŝŶŐ/ƚĞŵƐ͗ ŽŶĚΘ/ŶƚĞƌĞƐƚZĞůĂƚĞĚǆƉĞŶƐĞƐ;Ψϯ͕ϳϲϯͿ;Ψϯ͕ϱϱϮͿ;Ψϰ͕ϭϲϬͿ;Ψϯ͕ϮϭϬͿ;Ψϯ͕ϰϳϯͿ;Ψϯ͕ϱϯϲͿΨϲϯͲϭ͘ϴй /ŶƚĞƌĞƐƚ/ŶĐŽŵĞΨϯϱϱ;ΨϴϬͿΨϱϭϳΨϯϱϲΨϰϳϬΨϰϱϳΨϭϯϮ͘ϵй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ŝƐƚŽƌŝĐĂůĂƚĂ ŝŶϬϬϬΖƐ ϮϬϭϮϮϬϭϯϮϬϭϰ&ϮϮϬϭϱϮϬϭϲϮϬϭϳϮϬϭϴϮϬϭϵ ZWhZĂƚĞ/ŶĐƌĞĂƐĞϬ͘ϬйϬ͘Ϭйϭ͘ϱйϯ͘ϱйϯ͘ϬйϮ͘ϬйϮ͘ϬйϮ͘Ϭй ZĞǀĞŶƵĞ ƚĞŵƐΨϱϬΨϯϲΨϲϱΨϰϮΨϮϵΨϭϯ;ΨϭͿ;ΨϯϭͿ /ŶĐŽŵĞĞĨŽƌĞdƌĂŶƐĨĞƌƐŽƌĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϰϳϳ;ΨϯϲϴͿ;ΨϯϭϳͿ;ΨϰϴϮͿ;ΨϱϯϯͿ;ΨϯϱϭͿ;ΨϰϬϱͿ;ΨϮϲϵͿ dƌĂŶƐĨĞƌƐ;/Ŷ>ŝĞƵŽĨdĂǆĞƐͿ;ΨϯϳϰͿ;ΨϯϰϲͿ;ΨϯϱϯͿ;ΨϯϲϰͿ;ΨϯϳϮͿ;ΨϯϴϭͿ;ΨϯϵϭͿ;ΨϰϬϮͿ ĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϵϬϱΨϭ͕ϳϲϮΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬ 'DD 52&+(67(538%/,&87,/,7,(6 :$7(587,/,7< 0DQDJHPHQW5HSRUWLQJ3 /$OWHUQDWLYH5DWH6FHQDULR ,ŝƐƚŽƌŝĐĂůĂƚĂ ŝŶϬϬϬΖƐ ϮϬϭϮϮϬϭϯϮϬϭϰ&ϮϮϬϭϱϮϬϭϲϮϬϭϳϮϬϭϴϮϬϭϵ ZWhZĂƚĞ/ŶĐƌĞĂƐĞϬ͘ϬйϬ͘Ϭйϭ͘ϱйϬ͘ϬйϬ͘ϬйϬ͘ϬйϬ͘ϬйϬ͘Ϭй ZĞǀĞŶƵĞ ŶŐΘEŽŶͲKƉĞƌĂƚŝŶŐ/ƚĞŵƐΨϱϬΨϯϲΨϲϱΨϰϮΨϮϵΨϭϯ;ΨϭͿ;ΨϯϭͿ /ŶĐŽŵĞĞĨŽƌĞdƌĂŶƐĨĞƌƐŽƌĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϰϳϳ;ΨϯϲϴͿ;ΨϯϭϳͿ;ΨϳϱϭͿ;Ψϭ͕ϬϰϰͿ;Ψϭ͕ϬϯϭͿ;Ψϭ͕ϮϲϬͿ;Ψϭ͕ϯϬϰͿ dƌĂŶƐĨĞƌƐ;/Ŷ>ŝĞƵŽĨdĂǆĞƐͿ;ΨϯϳϰͿ;ΨϯϰϲͿ;ΨϯϱϯͿ;ΨϯϱϲͿ;ΨϯϱϳͿ;ΨϯϱϵͿ;ΨϯϲϭͿ;ΨϯϲϰͿ ĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϵϬϱΨϭ͕ϳϲϮΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬ 'DD 52&+(67(538%/,&87,/,7,(6 :$7(587,/,7< 0DQDJHPHQW5HSRUWLQJ3 / 5HFRPPHQGHG&DVH ,ŝƐƚŽƌŝĐĂůĂƚĂϮϬϭϰϮϬϭϱsĂƌŝĂŶĐĞ й ϮϬϭϱƚŽ ŝŶϬϬϬΖƐ ϮϬϭϮϮϬϭϯKƌŝŐĚŐƚϮϬϭϰ&ϮϮϬϭϱKƌŝŐĚŐƚKƌŝŐĚŐƚsĂƌŝĂŶĐĞ ZĞǀĞŶƵĞ ZĞƚĂŝůtĂƚĞƌΨϳ͕ϴϵϬΨϳ͕ϱϮϴΨϳ͕ϲϵϬΨϳ͕ϳϰϭΨϳ͕ϵϳϱΨϴ͕Ϭϳϰ;ΨϭϬϬͿͲϭ͘Ϯй ĞĨŽƌĞdƌĂŶƐĨĞƌƐŽƌĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϰϳϳ;ΨϯϲϴͿ;ΨϰϵϵͿ;ΨϯϭϳͿ;ΨϰϴϮͿ;ΨϮϴϵͿ;ΨϭϵϮͿϲϲ͘ϰй dƌĂŶƐĨĞƌƐ;/Ŷ>ŝĞƵŽĨdĂǆĞƐͿ;ΨϯϳϰͿ;ΨϯϰϲͿ;ΨϯϱϳͿ;ΨϯϱϯͿ;ΨϯϲϰͿ;ΨϯϲϴͿΨϰͲϭ͘Ϯй ĂƉŝƚĂůŽŶƚƌŝďƵƚŝŽŶƐΨϵϬϱΨϭ͕ϳϲϮΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϭ͕ϭϬϬΨϬϬ͘Ϭй ĂƐŚdƌĂŶƐĨĞƌƐĨƌŽŵŝƚǇΨϬΨϭ͕ϱϬϬΨϭϱϰΨϭϱϱΨϭ͕ϯϬϬΨϬΨϭ͕ϯϬϬϬ͘Ϭй 'DD 52&+(67(538%/,&87,/,7,(6 :$7(587,/,7< 23(5$7,1*%8'*(7 *52660$5*,1 'DD 52&+(67(538%/,&87,/,7,(6 &$3,7$/23(5$7,1*%8'*(76 (/(&75,&$1':$7(55(9(18(&+$1*( 9(5686,1)/$7,21 ,QIODWLRQ(OHFWULF5DWHV:DWHU5DWHV6003$5DWHV <HDU $WWDFKPHQW:DWHU%XGJHWDWWDFKPHQW 'D 3DFNHW3J 'D )25%2$5'$&7,21 ,' 'D 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( V3URMHFW:HKDYHWKRURXJKO\UHYLHZHGWKH7+)LQDO*HRPHWULF/D\RXW3ODQDQG UHFRPPHQGWKH&RXQFLO¶VDSSURYDO 0Q'27VWDIIDQGWKHSURMHFWFRQVXOWDQWZHUHLQDWWHQGDQFHDWWKH1RYHPEHU 'HU)DFLOLW\8VH 0DLQWHQDQFH$JUHHPHQWZLWK .XW]N\3DUN3ODFH//& 3DFNHW3J ' ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7( 'D Z [ ([WHQG 1R3DUNLQJ =RQH Z [ 6( 67 Z [ &LW\RI5RFKHVWHU01 'DWDFRQWDLQHGKDVQRWEHHQILHOGYHULILHGDQG VKRXOGEHXVHGDVUHIHUHQFHRQO\,WLVWKHXVHU¶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³/DWHPRGHO´PHDQVDYHKLFOHZLWKDPDQXIDFWXUHGDWHQRPRUHWKDQHLJKW\HDUV LQWKHSDVW 6XEG0DQLIHVWPHDQVDGDLO\UHFRUGSUHSDUHGE\DWD[LFDEGULYHUVKRZLQJDOOWULSV PDGHE\WKHGULYHUDWWKHWLPHDQGSODFHRIRULJLQGHVWLQDWLRQQXPEHURISDVVHQJHUVDQGWKH DPRXQWRIIDUHRIHDFKWULS 6XEG5DWHFDUGPHDQVDFDUGLVVXHGE\WKHFLW\FOHUNIRUGLVSOD\LQHDFKWD[LFDE ZKLFKFRQWDLQVWKHUDWHVRIIDUHWKHQLQIRUFH 6XEG³6LJQLILFDQWGHFUHDVHLQFUHDVH´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³WD[L´ ³WD[LFDE´RU³FDE´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¶VSHUPLWZLWKSKRWRDQGQDPHSODWHRQWKHRXWHUPRVWOD\HURIFORWKLQJDWDOOWLPHV ZKLOHRQGXW\$GULYHUVKDOOQRWZHDUDGULYHU¶VSHUPLWZKLOHRIIGXW\ $'ULYHU¶V3HUPLW(DFKSHUVRQZKRGHVLUHVWREHFRPHDWD[LFDEGULYHUVKDOOILUVW REWDLQDSHUPLWIURPWKHFLW\1RGULYHU¶VSHUPLWVKDOOEHLVVXHGWRDSHUVRQ $8QGHU\HDUVRIDJH %:KRGRHVQ¶WSRVVHVVDYDOLGGULYHU¶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imes New Roman]] [[260,1824,272,1876][11][B,I,][Times New Roman]] [[298,1824,2409,1876][11][B,I,][Times New Roman]],IWKH&RXQFLOZLVKHVWRSURFHHGLWVKRXOGLQVWU XFWWKH&LW\$WWRUQH\WRSUHSDUHDUHVROXWLRQHLWKHUDSSURYLQJ [[300,1877,2409,1929][11][B,I,][Times New Roman]]DSSURYLQJZLWKFRQGLWLRQVRUGHQ\LQJWKH&RQGLWLRQDO8VH3HUPLWUHTXHVWEDVHGXSRQWKHFULWHULDLQFOXGHGLQ [[300,1930,592,1982][11][B,I,][Times New Roman]]WKHVWDIIUHSRUW [[592,1930,604,1982][11][B,I,][Times New Roman]] 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J )E 3DFNHW3J ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( )D 3DFNHW3J )D 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J )D 3DFNHW3J 3DFNHW3J )D ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( ) 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( * 5(48(67)25&281&,/$&7,21 0((7,1*'$7( + 5(48(67)25&281&,/$&7,21 0((7,1*'$7( KHVKDUHGFDUVKDOOUHPDLQIRUWKHOLIHRIWKHEXLOGLQJ 0U:DOWHUVVHFRQGHGWKHPRWLRQ7KHPRWLRQFDUULHG &281&,/$&7,215(48(67(' ,IWKH&RXQFLOZLVKHVWRSURFHHGZLWKWKHDPHQGPHQWDVSURSRVHGE\VWDIIRUWKH3ODQQLQJ&RPPLVVLRQLW VKRXOGLQVWUXFWWKH&LW\$WWRUQH\WRSUHSDUHDQRUGLQDQFHWKDWFDQEHDGRSWHG7KH&RXQFLO¶VGHFLVLRQPXVW EHVXSSRUWHGE\ILQGLQJVEDVHGRQWKHFULWHULDOLVWHGLQ3DUDJUDSK RIWKH5RFKHVWHU=RQLQJ 2UGLQDQFHDQG/DQG'HYHORSPHQW0DQXDO VHHDWWDFKHGVWDIIUHSRUW 3DFNHW3J +D 3DFNHW3J +D 3DFNHW3J +D 3DFNHW3J +D 3DFNHW3J +D 3DFNHW3J +D 3DFNHW3J