Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
City Council - Regular Meeting - Jun 15, 2015
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±3XEOLF,PSURYHPHQWVWR6HUYHWKH6SULQJVDW6RXWK%URDGZD\± - ,WHP'DQGUH QXPHURXV&LW\2ZQHUFRQWUDFWVDURXQGWKH&LW\ZKHUHLVVXHVKDYHFRPHXS $SSURYHG 5HJXODU$GMRXUQHG0HHWLQJ-XQH $GRSWHG5HVROXWLRQ1RDSSURYLQJ&LW\2ZQHU&RQWUDFWIRU3URMHFW1R- 3XEOLF,PSURYHPHQWVWRVHUYH$OSKD6XEGLYLVLRQZLWK$OSKD5HDOW\RI 5RFKHVWHU//&(OFRU&RQVWUXFWLRQ,QF$QG:6% $VVRFLDWHV,QF 5(68/7$'237('>81$1,0286@ 029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN+LFNH\&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV 2ZQHU&RQWUDFW±6DQLWDU\6HZHU0DQKROHDQG6WRUP6HZHU0DQKROHWR6HUYHWKH &DVFDGH$SDUWPHQWV±- $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH&LW\2ZQHU&RQWUDFWIRU3URMHFW1R -6DQLWDU\6HZHU0DQKROHDQG6WRUP6HZHU0DQKROHWRVHUYLFHWKH &DVFDGH$SDUWPHQWVZLWK3DWLQD5RFKHVWHU/DQG//&+HDUWODQG([FDYDWLQJ,QF $QG:6% $VVRFLDWHV,QF 5(68/7$'237('>81$1,0286@ 029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN+LFNH\&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV 2ZQHU&RQWUDFW±3XEOLF,PSURYHPHQWVWR6HUYH&UHHNVLGH6XEGLYLVLRQ±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òEORFNZHVWRI$YH WK 6:WR$YH6:EHWZHHQWKHKRXUVRI$0WR$0DQG30WR 300RQGD\WKURXJK)ULGD\ 5(68/7$'237('>81$1,0286@ 029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN+LFNH\&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV )9DFDWLRQ3HWLWLRQ59$&E\3RKRFRJR//& &RXQFLO3UHVLGHQW6WDYHURSHQHGWKHSXEOLFKHDULQJ 0DUN:HOVK*&XEHG(QJLQHHULQJUHSUHVHQWLQJWKHRZQHUVWDWHGWKH\DUHLQ DJUHHPHQWZLWKWKHRQHFRQGLWLRQ &RXQFLO3UHVLGHQW6WDYHUFORVHGWKHSXEOLFKHDULQJ 5HJXODU$GMRXUQHG0HHWLQJ-XQH $GRSWHG5HVROXWLRQ1RDSSURYLQJ9DFDWLRQ3HWLWLRQ5E\ 3RKRFRJR//&WRYDFDWHDXWLOLW\HDVHPHQWGHGLFDWHGLQWRDOORZIRUWKH FRQVWUXFWLRQRIDEXLOGLQJORFDWHGDWWK6WUHHW1: 5(68/7$'237('>81$1,0286@ 029(5 0DUN%LOGHUEDFN&RXQFLOPHPEHU 6(&21'(5 (G+UXVND&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV ))LQDO3ODW5ULQJ 5LFN&OXQ([HFXWLYH'LUHFWRURI&HQWHU&LW\+RXVLQJPDGHKLPVHOIDYDLODEOHIRU TXHVWLRQV 5HJXODU$GMRXUQHG0HHWLQJ-XQH &RXQFLOPHPEHU0HDQVTXHVWLRQHGDORWOLQHLVVXH.LP%UHWKHUQ:6%VWDWHGWKDW WKH\KDYHDGGUHVVHGWKHFRQFHUQZLWK%XLOGLQJ6DIHW\ &RXQFLO3UHVLGHQW6WDYHUFORVHGWKHSXEOLFKHDULQJ $GRSWHG5HVROXWLRQ1RDSSURYLQJ)LQDO3ODW5DORQJWKHVRXWKVLGHRIWK6WUHHW6:DQGHDVWRIQG$YH6: &RXQFLO3UHVLGHQW6WDYHURSHQHGWKHSXEOLFKHDULQJ -DVRQ:RRGKRXVH&5:$UFKLWHFWXUH 'HVLJQ*URXSSURYLGHGDEULHIVXPPDU\ RIWKHSURMHFW 5HJXODU$GMRXUQHG0HHWLQJ-XQH %DUEDUD8SWRQFRPPHQWHG &RXQFLOPHPEHU&DPSLRQFRPPHQWHGWKDWKHZDVFULWLFDORIWKLVSURMHFWDQGWKDW WKHFRQGLWLRQVVWDUWWRDGGUHVVKLVFRQFHUQV&RXQFLOPHPEHU:RMFLNVWDWHG WKHUHKDVEHHQSURJUHVVEXWKHVWLOOFDQQRWVXSSRUWLW &RXQFLO3UHVLGHQW6WDYHUFORVHGWKHSXEOLFKHDULQJ $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH7\SH,,,3KDVH,,,,QFHQWLYH 'HYHORSPHQW)LQDO3ODQ5E\VW//&WRFRQVWUXFWDILYHVWRU\ XQLWPL[HGXVHGHYHORSPHQWORFDWHGVRXWKRIWK6WUHHW6:DQGHDVWRIQG $YHQXH6: 5(68/7$'237('>72@ 029(5 0DUN%LOGHUEDFN&RXQFLOPHPEHU 6(&21'(5 1LFN&DPSLRQ&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN+LFNH\0HDQV 1$<6 :RMFLN )6SHFLDO'LVWULFW56'&KDWHDX&LUFOH &RXQFLO3UHVLGHQW6WDYHUUHDGLQLWHPV)WRJHWKHUDVWKH\DOOUHODWHWRWKH VDPHSURMHFW &RXQFLO3UHVLGHQW6WDYHURSHQHGWKHSXEOLFKHDULQJ 'DYH0DUULVDSSOLFDQWUHYLHZHGWKHFXUUHQWVWDWXVRIWKHSURMHFW&RXQFLOPHPEHU 0HDQVTXHVWLRQHGLIWKHVLJQZLOOEHIODVKLQJDQGLWVVL]H0U0DUULVVWDWHGLWZLOO QRWEHIODVKLQJDQGZLOOEHRQHRIWKHVLJQVKHVKRZHGLQWKHSUHVHQWDWLRQ %LOO7RLQWRQ:6% $VVRFLDWHVUHYLHZHGWKHDSSURYDOIRUWKH7UDIILF$QDO\VLVDV ZHOODVWKHGHWDLOVRIWKH6SHFLDO'LVWULFW &RXQFLOPHPEHU+LFNH\VWDWHGWUDIILFHQWHULQJIURPWKHHDVWLVDFRQFHUQIRU QHLJKERUV3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWWUDIILFIURPORW)ZRXOGEHLQ FRQIOLFWZLWKWKHRULJLQDOORFDWLRQVRLWZDVUHTXLUHGWREHPRYHG&RXQFLOPHPEHU +LFNH\TXHVWLRQHGWKHWUDIILFFDOPLQJEHLQJUHFRPPHQGHG3XEOLF:RUNV'LUHFWRU )UHHVHVWDWHGWKDWVSHHGWDEOHVDQGQDUURZLQJZRXOGEHRSWLRQVIRUWKLVDUHD &RXQFLOPHPEHU&DPSLRQTXHVWLRQHGWUDIILFUHTXLUHPHQWVDVGHWDLOHGLQ3ODQQLQJ V PHPR3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWWKLVURDGLVQRWFRQVLGHUHGVWULFWO\ UHVLGHQWLDOVRUHVLGHQWLDOVSHFLILFWUDIILFQXPEHUVGRQRWDSSO\&RXQFLOPHPEHU &DPSLRQTXHVWLRQHGLIWKHWULSVFDSDSSOLHVEHFDXVHWKH\PXVWH[LWWKURXJKD UHVLGHQWLDOQHLJKERUKRRG3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGKHGLGQRWEHOLHYH WKDWWREHFRUUHFWDQGZDVQRWWKHLQWHQWRIWKHUHTXLUHPHQW 7KHUHVD:RRGVWDWHGWKDWVKHZDWFKHVHPHUJHQF\YHKLFOHVGHOD\HGDWWKLV LQWHUVHFWLRQHYHU\GD\DQGLIPRUHFRPPHUFLDOWUDIILFLVDGGHGLWZLOOFRVWOLYHVLQ GHOD\HGUHVSRQVHWLPHV6KHVWDWHGWKDWWKHZKROHDUHDLVUHVLGHQWLDO 5HJXODU$GMRXUQHG0HHWLQJ-XQH $O=LRONRZVNLVWDWHGWKDWWKHFXUUHQWOD\RXWZLOOHQFRXUDJHFXWWKURXJKWUDIILF WKURXJKWKHUHVLGHQWLDODUHDV %DUE9LUQLJVWDWHGKHUFRQFHUQVZLWKZDWHUUXQRIIDQGIORRGLQJLQWKHSURSRVHG JDUGHQDUHD6KHDOVRUHYLHZHGKHUIXOOSHWLWLRQDJDLQVWWKHSURMHFW 6KHUU\5RFDPSVWDWHGWKDWWKH3ODQQLQJ&RPPLVVLRQKDVVDLGQRWZLFHQRZWRWKLV SURMHFW7KHSURSRVHG6SHFLDO'LVWULFWLVDSRRUO\ZULWWHQDQGLWPXVWEHUHZULWWHQWR DGGUHVVWKHQHLJKERUKRRGFRQFHUQV7KH\KDYHPDQ\TXHVWLRQVWKDWDUHVWLOO XQDQVZHUHG6KHH[SUHVVHGFRQFHUQVZLWKWKHWUDIILFSDWWHUQVDQGVDIHW\ %RE5RQQLQJHQFRPPHQWHGWKDWWKH'HYHORSHUKDVQRWPHWZLWKDOOWKHQHLJKERUV $OORI9LOOD5RDGPXVWEHUHEXLOWWRFROOHFWRUVWDQGDUGVWRGHDOZLWKWKHQHZWUDIILF ,QDGGLWLRQZDWHUUXQRIIZLOOEHDQLVVXHIRUDQXPEHURIQHLJKERUVDQGQHHGVWREH DGGUHVVHG %ULDQ1RUGLNHSURYLGHGKLVFRQFHUQVDERXWWUDIILFUHODWHGWRWKHSURMHFW -HDQ'DQLHOVH[SUHVVHGKHUFRQFHUQVZLWKWUDIILFVDIHW\QRLVHSHGHVWULDQ ZDONZD\VDQGWKH6SHFLDO'LVWULFWXVHLQWKLVVLWXDWLRQ %RE1RUGPDQH[SUHVVHGLVVXHVZLWKWKH6SHFLDO'LVWULFWDVSURSRVHGDQG UHTXHVWHGWKDWLWEHWDEOHGWRJLYHPRUHWLPHIRUWKH'HYHORSHUVWRDGGUHVV QHLJKERUKRRGFRQFHUQV+HDOVRH[SUHVVHGFRQFHUQVZLWKWKHVL]HRIWKH GHYHORSPHQWDVGHWDLOHGLQWKH*'3DQGWKHDFFXUDF\RIWKHWUDIILFVWXG\0U 1RUGPDQUHYLHZHGWKH)LQGLQJVRI)DFWWRGHQ\WKHDSSOLFDWLRQ /DXUHQH/DIRQWDLQHSDVWRUDW&RPPXQLW\3UHVE\WHULDQ&KXUFKH[SUHVVHG FRQFHUQVDERXWVDIHW\IRUWKHSUHVFKRROWKDWVKDUHVWKHLUIDFLOLW\DVZHOODVWUDIILF DQGSURMHFWVL]H &RXQFLOUHFHVVHGDWSP &RXQFLOUHFRQYHQHGDWVRQRZQHURIRQHRIWKHORWVLQTXHVWLRQH[SUHVVHGKLVVXSSRUWIRUWKH SURMHFW7KLVLVWKHW\SHRIGHYHORSPHQWWKLVDUHDQHHGV 5RQ8SGDKOVWDWHGWKHLPSRUWDQFHRIZULWLQJWKH6SHFLDO'LVWULFWODQJXDJHZHOO+H DOVRH[SUHVVHGFRQFHUQVZLWKWKHKRXUVRIRSHUDWLRQVDQGQRLVH -HII:HLGHUFRPPHQWHGRQLVVXHVLQFOXGLQJWUDIILFFRQWLQXLW\RISHGHVWULDQIDFLOLWLHV DQGFRQQHFWLQJWKHXQGHUGHVLJQHG9LOOD5RDG 5HJXODU$GMRXUQHG0HHWLQJ-XQH 0U7RLQWRQUHVSRQGHGWRWKHYDULRXVLVVXHVUDLVHGE\WKHVSHDNHUVLQFOXGLQJWKRVH UHODWHGWRWKHWUDIILFVWXG\VWRUPVHZHUV\VWHPWKDWFKDQJHVKDYHEHHQPDGHWR WKHSODQLQWKHODVWKRXUVODQGLVVXHVDQGRWKHUV &RXQFLOPHPEHU&DPSLRQTXHVWLRQHGWKHGULYHWKURXJKORFDWLRQVDQGLQWHQVLW\DQG ZKDWW\SHRIUHYLHZLVUHTXLUHG0U7RLQWRQH[SODLQHGZKHQWKH\ZRXOGEHGRQHDV D7\SHRU7\SHUHYLHZ&RXQFLOPHPEHU&DPSLRQTXHVWLRQHGZKHQSXEOLF KHDULQJVZRXOGEHKHOGIRUWKHYDULRXVLWHPV0U7RLQWRQH[SODLQHGWKHYDULRXV KHDULQJVWKDWZRXOGEHKHOG 'DYLG3HGHUVRQDWWRUQH\UHSUHVHQWLQJWKHDSSOLFDQWH[SODLQHGWKDWWKHODWHVW YHUVLRQRIWKH6SHFLDO'LVWULFWZDVLQUHVSRQVHWRDOHWWHUUHFHLYHGIURPWKH QHLJKERUKRRGWKLVPRUQLQJ0U3HGHUVRQUHYLHZHGZKDWLVEHLQJSURSRVHGE\WKH DSSOLFDQWYHUVXVZKDWLVDOORZHGLQD%]RQLQJDQGWKHSURSRVHG6SHFLDO'LVWULFW LVPXFKPRUHUHVWULFWLYH &RXQFLOPHPEHU:RMFLNFRPPHQWHGWKDWKHUHFHLYHGFRPPHQWVIURPQHLJKERUVWKDW WKH\GRQRWZDQWWKHEDFNRIWKHEXLOGLQJV%DQG&WREHEODQNIDFLQJWKH QHLJKERUKRRG+HH[SUHVVHGKLVFRQFHUQWKDWWKHUHZLOOEHDEODQNZDOODQGDFFHVV URDGIDFLQJWKHQHLJKERUKRRG0U0DUULVH[SODLQHGWKDWWKHURDGZDVUHTXLUHGE\ WKH)LUH'HSDUWPHQWDQGWKDWUHWDLOXVHUVQHHGUHDUDFFHVV,QDGGLWLRQWKH\ZRXOG EHZLOOLQJWRORRNDWDGGLQJPRUHZLQGRZVWRWKHUHDU&RXQFLOPHPEHU:RMFLN FRPPHQWHGWKDWPDNLQJWKHEDFNIDFDGHPRUHDWWUDFWLYHZDVDKLJKSULRULW\RIWKH QHLJKERUKRRG0U0DUULVFRPPHQWHGWKDWVRPHFKDQJHVFRXOGEHGRQHWR DGGUHVVWKLVLVVXHDQGDVNHG&RXQFLOPHPEHU:RMFLNZKDWKHZRXOGUHFRPPHQG &RXQFLOPHPEHU:RMFLNSURYLGHGKLVSURSRVHGFKDQJHVWRDGGUHVVWKHLVVXH LQFOXGLQJHOLPLQDWLQJWKHVHUYLFHURDGLQWKHUHDU&RXQFLOPHPEHU+LFNH\ FRPPHQWHGWKDWKHGRHVQ 'DYLG-HUVSUDFRPPHQWHGWKDWWKHWUDIILFVWXG\GRHVQRWPDWFKZKDWWKHFXUUHQW SODQVVKRZ 0U1RUGPDQFRPPHQWHGWKDWWKHQHLJKERUKRRGWRRNWKHWLPHWRZULWHD6SHFLDO 'LVWULFWWKDWDGGUHVVHGDOORIWKHLUFRQFHUQVEXWWKH'HYHORSHUFKRVHQRWWRXVHDOO RIWKHUHFRPPHQGHGFKDQJHV &RXQFLOPHPEHU:RMFLNTXHVWLRQHGLIWKH3ODQQLQJ&RPPLVVLRQGHWHUPLQHGLIDQ\RI WKHWKUHHFULWHULDZHUHPHWWRDOORZD6SHFLDO'LVWULFW6HQLRU3ODQQHU+DUIRUG VWDWHGWKDWWKH3ODQQLQJ&RPPLVVLRQGHWHUPLQHGWKDWQRQHZHUHPHW &RXQFLOPHPEHU:RMFLNTXHVWLRQHGVWDIIRQYDULRXVURDGLVVXHVLQFOXGLQJ9LOOD5RDG FDSDFLW\&RXQFLOPHPEHU:RMFLNTXHVWLRQHGWKHYDULRXVGHILQLWLRQVLQWKH6SHFLDO 'LVWULFW6HQLRU3ODQQHU+DUIRUGVWDWHGWKDWWKHGHILQLWLRQVPDWFKHGZKDWZDVLQWKH &LW\RUGLQDQFHV&RXQFLOPHPEHU:RMFLNFRPPHQWHGWKDWLIDQ\RIWKHURDGVDUH LPSURYHGLQWKHIXWXUHWKH&LW\FDQRQO\DVVHVVWKHDPRXQWRIEHQHILWWRWKH SURSHUW\DQGWKDWVKRXOGDGGUHVVVRPHQHLJKERUVFRQFHUQV &RXQFLOPHPEHU&DPSLRQTXHVWLRQHGLIWKHHOLPLQDWLRQRIWKHULJKWLQWRORW)ZRXOG KDYHDQ\LPSDFWRQWKH7UDIILF6WXG\3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWLW ZRXOGQRW 5HJXODU$GMRXUQHG0HHWLQJ-XQH &RXQFLO3UHVLGHQW6WDYHUFORVHGWKHSXEOLFKHDULQJ &RXQFLOPHPEHU+UXVNDUHTXHVWHGFODULW\RQWKHDOORZDEOHVL]HLQWKH6SHFLDO 'LVWULFW6HQLRU3ODQQHU+DUIRUGFRPPHQWHGWKDWWKHVL]HLQWKH6SHFLDO'LVWULFW VKRXOGEHWLHGEDFNWRWKHRULJLQDOSODQEXWLVEDVHGRQWKHWUDIILFOLPLWDWLRQV LGHQWLILHG&RXQFLOPHPEHU+UXVNDTXHVWLRQHGLI3ODQQLQJZRXOGPRQLWRUWKLV UHTXLUHPHQW6HQLRU3ODQQHU+DUIRUGVWDWHGWKDWLILWZDVLQWKHRUGLQDQFHWKH\ ZRXOG &RXQFLOPHPEHU:RMFLNFRPPHQWHGWKDWZHUHZRXOGEHRWKHUVL]HOLPLWDWLRQV LQYROYHGDVZHOOVXFKDVIORRUDUHDUDWLRSDUNLQJUHTXLUHPHQWVHWF+HDOVRDVNHG LIWKH\KDYHH[FHVVSDUNLQJUHODWHGWRWKHLUXVH6HQLRU3ODQQHU+DUIRUGVWDWHGWKH\ KDYHPRUHWKDQWKHUHTXLUHGSDUNLQJ &RXQFLOPHPEHU&DPSLRQDQG3XEOLF:RUNV'LUHFWRU)UHHVHGLVFXVVHGWKHWUDIILF UHTXLUHPHQWVIRUWKHULJKWWXUQH[LWVRXWRIWKHGHYHORSPHQWDVWKH\OHDGGLUHFWO\LQWR DUHVLGHQWLDOQHLJKERUKRRG3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWWKHURDGLVQR ORQJHUFRQVLGHUHGDUHVLGHQWLDOVWUHHWEXWDFRPPHUFLDORQHFKDQJLQJWKH UHTXLUHPHQWV &RXQFLOPHPEHU0HDQVTXHVWLRQHGLIWKH7UDIILF6WXG\LVVWLOOYDOLGDQGZLOOLWEH PRQLWRUHGE\WKH&LW\3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWLVZDVVWLOOYDOLG DQGLWZRXOGEHWUDFNHGE\VWDII&RXQFLOPHPEHU0HDQVTXHVWLRQHGZKRZRXOGSD\ IRULPSURYHPHQWVWR9LOOD5RDG3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGLWZRXOG GHSHQGRQZKREHQHILWHGIURPWKHLPSURYHPHQW &RXQFLOPHPEHU&DPSLRQUHYLHZHGWKH/'0UHTXLUHPHQWIRUWUDIILFLQFUHDVHVWRD UHVLGHQWLDOQHLJKERUKRRGV3XEOLF:RUNV'LUHFWRU)UHHVHVWDWHGWKDWEHFDXVHD QRQUHVLGHQWLDOFROOHFWRUKDVEHHQFUHDWHGE\WKH&RXQFLO VDFWLRQRQODQGXVH GHVLJQDWLRQWKHRSWLRQVGHWDLOHGLQWKH3ODQQLQJ'HSDUWPHQWPHPRPXVWEH FRQVLGHUHGE\WKH&RXQFLODQGWKDWLQDGGLWLRQLI&OHDUZDWHU5RDGEHFRPHVDULJKW LQULJKWRXWQRWPDQ\YHKLFOHVZLOOJRWRWKHHDVWRXWRIWKLVGHYHORSPHQW &RXQFLOPHPEHU&DPSLRQFRPPHQWHGWKDWWKHUHZDVDFDSRQDYHUDJHGDLO\WULSV ZKHQWKLVILUVWFDPHEHIRUHWKH&RXQFLOEXWWKHUHLVQRWDFDSQRZ+HTXHVWLRQHG LILWLVUHDOLVWLFWRSXWWULSVLQWRDUHVLGHQWLDOQHLJKERUKRRG+HVWDWHGWKDWKH GRHVQRWZDQWWRVHHWKH6SHFLDO'LVWULFWJRDZD\EXWVWLOOKDVPDQ\TXHVWLRQV+H UHTXHVWHGPRUHWLPHWRUHYLHZWKHSURSRVDO &RXQFLOPHPEHU&DPSLRQPRWLRQHGVHFRQGHGE\&RXQFLOPHPEHU:RMFLNWRUHRSHQ WKHSXEOLFKHDULQJDQGWRFRQWLQXHWR-XO\ &RXQFLOPHPEHU:RMFLNFRPPHQWHGWKDWWKHUHZHUHODVWPLQXWHFKDQJHVPDGHDQG PRUHWLPHLVQHHGHGWRFRQVLGHU &RXQFLOPHPEHU+LFNH\VWDWHGKHZRQ WVXSSRUWDFRQWLQXDQFHKHKDVHQRXJK LQIRUPDWLRQWRPDNHDGHFLVLRQ 5HJXODU$GMRXUQHG0HHWLQJ-XQH &RXQFLOPHPEHU%LOGHUEDFNVWDWHGWKDWEHFDXVHWKHUHKDYHEHHQODVWPLQXWH FKDQJHVKHDJUHHVWKDWPRUHWLPHLVQHHGHG &RXQFLOPHPEHU+UXVNDVWDWHGWKDWGHFLVLRQVOLNHWKHVHDUHDOZD\VKDUGDQGWKDW WKH&RXQFLOXQGHUVWDQGVWKLVHIIHFWVSHRSOHEXWWKH\GRWKHLUEHVWWRPDNHWKHEHVW GHFLVLRQ &RXQFLOPHPEHU0HDQVWKDQNHGWKHUHVLGHQWVIRULQYROYHPHQW6KHH[SUHVVHGKHU FRQFHUQVZLWKWKHODVWPLQXWHFKDQJHVEXWWKDWWKLVZLOOEHDQLPSURYHPHQWWRWKH QHLJKERUKRRGDQGVKHGRHVQRWVXSSRUWFRQWLQXLQJWKLV &RXQFLO3UHVLGHQW6WDYHUVWDWHGWKDWKHDOVRFDQQRWVXSSRUWWKHFRQWLQXDQFHWKH &RXQFLOKDVEHHQSURYLGHGZLWKHQRXJKLQIRUPDWLRQWRPDNHDGHFLVLRQ 0RWLRQIDLOHGZLWK&RXQFLOPHPEHUV+LFNH\+UXVND0HDQVDQG6WDYHU YRWLQJQR &RXQFLOPHPEHU:RMFLNFRPPHQWHGWKDWD6SHFLDO'LVWULFWLVDEHQHILWWRWKH QHLJKERUKRRG+HUHYLHZHGZKDWKHOLNHGDQGGLGQRWOLNHLQWKHSODQ+H H[SUHVVHGKLVFRQFHUQVZLWKWKHERXOHYDUGVEHLQJWRRQDUURZWRVXSSRUWDWUHH DXGLRVSHDNHUVOLJKWLQJDQGWKHEODQNZDOOIDFLQJWKHQHLJKERUKRRG &RXQFLOPHPEHU%LOGHUEDFNFRPPHQWHGWKDWWKHQHLJKERUKRRGVKRXOGFRQWLQXHWR ZRUNZLWKWKHGHYHORSHU &RXQFLOPHPEHU&DPSLRQFRPPHQWHGWKDW%LVDZRUVHRXWFRPHWKHQD6SHFLDO 'LVWULFW &RXQFLOPHPEHU:RMFLNPRYHGVHFRQGHGE\&RXQFLOPHPEHU&DPSLRQWRGHOHWH VXEGLYLVLRQ6HFWLRQUHTXLULQJDILUHODQH0RWLRQIDLOHGZLWK &RXQFLOPHPEHUV%LOGHUEDFN+LFNH\+UXVNDDQG6WDYHUYRWLQJQR &RXQFLOPHPEHU&DPSLRQPRYHGVHFRQGHGE\&RXQFLOPHPEHU:RMFLNWRDPHQG WKHKRXUVRIRSHUDWLRQWRPDWFKWKHFORVLQJWLPHIRXQGLQ%&RXQFLOPHPEHU &DPSLRQZLWKGUHZKLVPRWLRQZLWKWKHFRQVHQVXVRIWKH&RXQFLO $SSURYHGWKH6SHFLDO'LVWULFW5IRU&KDWHDX&LUFOHDQGLQVWUXFWHGWKH &LW\$WWRUQH\WRSUHSDUHWKHUHTXLUHG2UGLQDQFHIRUDGRSWLRQ 5(68/7$'237('>72@ 029(5 0DUN+LFNH\&RXQFLOPHPEHU 6(&21'(5 6DQGUD0HDQV&RXQFLOPHPEHU $<(6 6WDYHU+UXVND%LOGHUEDFN+LFNH\0HDQV 1$<6 &DPSLRQ:RMFLN )*HQHUDO'HYHORSPHQW3ODQ5*'37%.$&KDWHDXFLUFOH $SSURYHG*HQHUDO'HYHORSPHQW3ODQWREHNQRZQDV&KDWHDX&LUFOHZLWK HLJKWFRQGLWLRQVDQGLQVWUXFWHGWKH&LW\$WWRUQH\WRSUHSDUHWKH)LQGLQJVRI)DFW &RQFOXVLRQVRI/DZDQG2UGHU 5HJXODU$GMRXUQHG0HHWLQJ-XQH 5(68/7$'237('>72@ 029(5 0DUN+LFNH\&RXQFLOPHPEHU 6(&21'(5 (G+UXVND&RXQFLOPHPEHU $<(6 6WDYHU+UXVND%LOGHUEDFN+LFNH\0HDQV 1$<6 &DPSLRQ:RMFLN )3UHOLPLQDU\3ODW53/$77%.$&KDWHDX&LUFOH $SSURYHGWKH3UHOLPLQDU\3ODW5WREHNQRZQDV&KDWHDX&LUFOHE\ &KDWHDX&LUFOH//&ORFDWHGQRUWKRIWK6WUHHW1:DQGVRXWKRI9LOOD5RDG1: DQGLQVWUXFWHGWKH&LW\$WWRUQH\WRSUHSDUHWKHUHTXLUHG)LQGLQJVRI)DFW &RQFOXVLRQVRI/DZDQG2UGHU 5(68/7$'237('>72@ 029(5 0DUN+LFNH\&RXQFLOPHPEHU 6(&21'(5 6DQGUD0HDQV&RXQFLOPHPEHU $<(6 6WDYHU+UXVND%LOGHUEDFN+LFNH\0HDQV 1$<6 &DPSLRQ:RMFLN )&RQVLGHUDWLRQRI3RVVLEOH&KDQJHVWR&LW\ &RXQFLO3UHVLGHQW6WDYHURSHQHGWKHSXEOLFKHDULQJ -XOLH:DOOFRPPHQWHGWKDWVKHVSHQGVDORWRIWLPHRQ&LW\WUDLOVDQGSDUNVDQG DVNHGWKDWWKH&RXQFLOVXSSRUWWKH3DUN%RDUGVUHFRPPHQGDWLRQ 1DQF\6ORFXPFRPPHQWHGWKDWVKHVXSSRUWVWKHPHDVXUHGDSSURDFKWKH3DUN %RDUGWRRNLQGHYHORSLQJWKLVRUGLQDQFHDQGDVNVWKH&RXQFLOWRVXSSRUWLW &RXQFLO3UHVLGHQW6WDYHUFORVHGWKHSXEOLFKHDULQJ &RXQFLOPHPEHU:RMFLNPRYHGVHFRQGHGE\&RXQFLOPHPEHU0HDQVWRDPHQGWR PDNHDOO&LW\VLGHZDONVEHRQOHDVKDUHDV$SSURYHG',1$1&(65(/$7,1*725$7(6 5HJXODU$GMRXUQHG0HHWLQJ-XQH 2))$5()257$;,&$%6 $125',1$1&(&5($7,1*$1'(1$&7,1*&+$37(5;$1'$0(1',1* $1'5((1$&7,1*6(&7,21 5HJXODU$GMRXUQHG0HHWLQJ-XQH 5(68/7$'237('>72@ 029(5 0DUN%LOGHUEDFN&RXQFLOPHPEHU 6(&21'(5 1LFN&DPSLRQ&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN0HDQV 1$<6 :RMFLN+LFNH\ ,27+(5%86,1(66 &RXQFLO3UHVLGHQW6WDYHUVWDWHGWKDWWKH&LW\SXUFKDVHGDFUHVRIODQGIRU)LUH 6WDWLRQEXWKDOIRIWKHODQGFDQEHVROGDQGLVVHHNLQJWRGLUHFWVWDIIWREHJLQ PDUNHWLQJWKHSURSHUW\ &RXQFLOPHPEHU0HDQVTXHVWLRQHGLIWKH&LW\VKRXOGQ HSWKHODQGIRUIXWXUH&LW\ QHHGV &RXQFLOPHPEHU:RMFLNPRWLRQHGVHFRQGHGE\&RXQFLOPHPEHU+UXVNDWRDSSURYH GLUHFWLQJVWDIIWREHJLQPDUNHWLQJWKHSURSHUW\IRUVDOH$SSURYHG