The URL can be used to link to this page

Home My WebLink AboutJanuary 8, 2018 Agenda Packet &,7<2)52&+(67(5 &LW\&RXQFLO$JHQGD &RXQFLO%RDUG&KDPEHUV WK6WUHHW6( 5HFHVVHG0HHWLQJ-DQXDU\ 30 $23(1&200(173(5,2' [[375,1064,392,1131][14][B,I,][Arial]] [[391,1064,408,1131][14][B,I,][Arial]] [[450,1064,2125,1131][14][B,I,][Arial]] 7KH2SHQ&RPPHQW3HULRGZDVFRQVLGHUHGDWWKHUHJXODUO\ [[375,1136,1116,1203][14][B,I,][Arial]]VFKHGXOHG-DQXDU\ [[1115,1136,1132,1203][14][B,I,][Arial]] [[1131,1136,1600,1203][14][B,I,][Arial]]&RXQFLO0HHWLQJ [[1601,1136,1618,1203][14][B,I,][Arial]] %&$//7225'(5 &&,7<$'0,1,675$7255(3257 '/(77(56$1'3(7,7,216 (&216(17$*(1'$25*$1,=$7,21$/%86,1(66 )5(32576$1'5(&200(1'$7,216 *+($5,1*6 *&RQVLGHUDWLRQRI0DVVDJH7KHUDS\%XVLQHVV/LFHQVHIRU+DUPRQ\/LX//& GED+DUPRQ\$VLDQ0DVVDJH +&281&,/,1,7,$7('$&7,216 ,5(62/87,216$1'25',1$1&(6 -7$%/(',7(06 .27+(5%86,1(66 .(PSOR\PHQW$JUHHPHQW-/RRV[[1306,2490,1391,2543][11][,I,][Arial]]$GG [[1388,2490,1403,2543][11][,I,][Arial]] [[1403,2490,1465,2543][11][,I,][Arial]]2Q [[1464,2490,1477,2542][11][,,][Arial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imes New Roman]]'RQJID=KRX [[1404,359,1416,416][12][B,I,][Times New Roman]] [[1425,359,1437,416][12][B,I,][Times New Roman]] [[1575,359,1587,416][12][B,I,][Times New Roman]] [[1956,363,1968,415][11][B,I,][Times New Roman]] [[975,419,1006,466][10][B,I,][Times New Roman]] [[1004,419,1524,466][10][B,I,][Times New Roman]]$WWRUQH\ &RXQVHORUDW/DZ [[1524,419,1535,466][10][B,I,][Times New Roman]] %UDXQ&W3KRQH QHLQFLGHQWRIQRQOLFHQVHG SUDFWLFHE\DQHZHPSOR\HHRFFXUUHGDQGWKHUHZDVQRFKDUJH$1'FRQYLFWLRQIRU SURVWLWXWLRQDJDLQVWWKDWHPSOR\HH,QDGGLWLRQWKHVXVSHQVLRQLWVHOIVKRXOGQRWIRUPWKHEDVLV IRUGHQ\LQJWKHQHZEXVLQHVVDSSOLFDWLRQHVSHFLDOO\FRQVLGHULQJWKDWWKHFRXQFLOKDVKDGQR RSSRUWXQLW\WRFRQVLGHUWKHPHULWVRIWKHEXVLQHVVDSSOLFDWLRQLWVHOI 2QHYLRODWLRQXQGHUWKHVXSHUYLVLRQRIP\FOLHQWVKRXOGQRWEHXVHGWRGHSULYHP\ FOLHQW¶VOLYHOLKRRGDQGSXUVXLWRIJDLQIXOHPSOR\PHQW 5RFKHVWHU&LW\2UGLQDQFH&KDSWHU$VXESURYLGHV 3DFNHW3J *F 7KHDFWRIDQ\HPSOR\HHRIWKH/LFHQVHHLVGHHPHGWREHWKHDFW RIWKH/LFHQVHH7KH/LFHQVHHVKDOOEHUHVSRQVLEOHIRUDOODFWV DQGFRQGXFWDWWULEXWDEOHWRDQGLQFRQQHFWLRQZLWK0DVVDJH 7KHUDS\6HUYLFHVSURYLGHGE\WKH/LFHQVHHRURFFXUULQJRQWKH /LFHQVHG3UHPLVHV+RZHYHUWKH/LFHQVHH¶VJRRGIDLWKDFWLRQV WDNHQLQWKHRSHUDWLRQRIWKH0DVVDJH7KHUDS\%XVLQHVVDQGLQ UHVSRQVHWRWKHDFWVRUFRQGXFWRI/LFHQVHH¶VHPSOR\HHVVKDOOEH FRQVLGHUHGLQGHWHUPLQLQJZKHWKHUWKH/LFHQVHHKDVDFWHG UHVSRQVLEO\ +HUHLQP\FOLHQW¶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¶VDFWLRQ VKRXOGEHWDNHQLQWRFRQVLGHUDWLRQDQGWKH&LW\&RXQFLOVKRXOGQRWGHQ\KHUDSSOLFDWLRQ EDVHGRQWKDWRQHLQFLGHQW7KHJRRGIDLWKDFWLRQVDQGVXEVHTXHQFHDFWLRQVWDNHQE\P\ FOLHQWVKRXOGDOVREHFRQVLGHUHGLQWKHILQDOGHFLVLRQ 0\FOLHQW¶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imes New Roman]]+HDUQY&LW\RI:RRGEXU\ [[1611,2487,2076,2544][12][,,][Times New Roman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¶VDSSOLFDWLRQLVWRGHSULYHP\FOLHQW¶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imes New Roman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¶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¶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