Loading...
HomeMy WebLinkAbout02_Zak Residence Modification Permit_PA2025-0051CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT May 29, 2025 Agenda Item No. 2 SUBJECT: Zak Residence (PA2025-0051) ▪Modification Permit SITE LOCATION: 34 Castaways North APPLICANT: Oscar Almendaraz OWNER: Pete Zak PLANNER: Melinda Whelan, Assistant Planner 949-644-3221 mwhelan@newportbeachca.gov LAND USE AND ZONING •General Plan Land Use Plan Category: Single Unit Residential Detached (RS-D) •Zoning District: PC43 (Upper Castaways) •Coastal Land Use Plan Category: Single Unit Residential Detached (RSD-A) (0.0 - 5.9 DU/AC) •Coastal Zoning District: PC43 (Upper Castaways) PROJECT SUMMARY The applicant requests a modification permit to allow an addition to an existing single-unit dwelling that is greater than 10% of the existing square footage. The existing single-unit dwelling is nonconforming due to the dimensions of the existing garage. Title 20 (Planning and Zoning) of the Newport Beach Municipal Code (NBMC) limits additions to a maximum of 10% of the existing gross floor area when a residence has nonconforming parking. The addition includes 390 square feet on the first floor and 710 square feet on the second floor (1,100 square feet total), which is a 24% addition. The addition otherwise complies with all applicable development standards and no other deviations are requested. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Article 19 of Chapter 3, Guidelines for Implementation of the California Environmental Quality Act) under Class 1 (Existing Facilities) of the Guidelines for CEQA, because it has no potential to have a significant effect on the environment; and 3)Adopt Draft Zoning Administrator Resolution No. _ approving the Modification Permit filed as PA2025-0051 (Attachment No. ZA 1). 1 Zak Residence Modification Permit (PA2025-0051) Zoning Administrator, May 29, 2025 Page 2 Tmplt: 01/18/23 DISCUSSION Land Use and Development Standards • The subject property is in the Upper Castaways Planned Community Zoning District (PC 43), which provides for single unit residential development and is consistent with the City’s General Plan and Zoning Code. The property is developed with a two- story, 4,640-square-foot single-unit dwelling, including an attached two-car garage and a one-car garage. PC 43 does not limit the maximum allowed square footage but includes a height limit and minimum setbacks. The project includes an addition of 1,100 square feet for a total gross floor area of 5,740 square feet. • PC 43 requires a minimum of two garage parking spaces per unit, with the size of the garage specified by the residential parking standards of the Newport Beach Municipal Code (NBMC) Section 20.40.090.A (Parking Standards for Residential Uses). The subject lot is greater than 40 feet wide and requires a two-car garage with minimum dimensions of 20 feet wide by 20 feet deep or two one-car garages that are 10 feet wide by 20 feet deep. • The existing interior clear dimensions of the two-car garage is 20 feet, 1 inch wide by 18 feet 10-inches-deep; and the one-car garage is 10 feet wide by 17 feet, 3 inches deep. These interior clear dimensions were approved with the original construction of the dwelling. However, due to the updated Zoning Code development standards of 20 feet wide by 20 feet deep interior clear dimensions (two-car garage) and 10 feet wide by 20 feet deep interior clear dimensions (single-car garage), the existing dwelling is legal nonconforming. Neither garage meets the minimum depth requirement. • The property currently consists of one legal lot developed with a single-unit dwelling. The neighborhood is predominantly developed with one- and two-story, single-unit dwellings. The addition on the first floor will allow for a new butler’s pantry and a new lounge area off of the kitchen. The addition on the second floor includes bathrooms, an office, a new laundry room and a closet. The project complies with all applicable development standards, including height, setbacks and floor area (no maximum floor area within the PC regulations). The proposed design, bulk, and scale of the development will not appear out of character from the surrounding properties within the neighborhood. • NBMC Subsection 20.38.030(C) (Determination of Nonconformity) defines a “legal nonconforming structure” as any structure that was lawfully erected but does not conform with the current development standards for the zoning district in which it is located by reason of adoption or amendment of the Zoning Code. The existing 2 Zak Residence Modification Permit (PA2025-0051) Zoning Administrator, May 29, 2025 Page 3 Tmplt: 01/18/23 structure is considered legal nonconforming as it was legally permitted, but is now nonconforming due to the substandard interior garage dimensions. At the time of construction in 1997, there were no minimum size requirements for parking spaces. • NBMC Subsection 20.38.060(A)(2) (Nonconforming Parking - Residential) limits additions to residential structures with nonconforming parking dimensions to 10% of the existing gross floor area within any 10-year period. Larger additions may be permitted subject to the approval of a modification permit. The applicant proposes a 1,100 square foot addition (24% of the existing gross floor area) and leaving the garage dimensions unchanged. Therefore, a modification permit is required for this request. • The proposed parking configuration will continue to accommodate the parking of two vehicles within the garage and fulfills the intent of the Zoning Code. Additionally, although a substandard space, the existing one-car garage does provide an additional parking space for a smaller vehicle. PC 43 also requires two guest spaces be provided on driveways with a minimum depth of 20 feet. The existing driveway is 20 feet in depth by 20 feet wide and provides two uncovered guest spaces. Demand for on-street parking in the neighborhood is not anticipated to increase as a result of the project. • An alternative to this proposal is to reduce the size of the addition to no more than 10% of the existing gross floor area of the structure as authorized under NBMC Section 20.38.060(A) (Nonconforming Parking - Residential) or extend the existing garage walls. Modifying the garage wall of the two-car garage is not feasible because it will require removing the powder bathroom and reframing the garage, which is not part of the project scope. Modifying the one-car garage is restricted as the garage is oriented perpendicular to the side property line with the existing exterior wall already abutting the setback line. Furthermore, the entry of the one- car garage could not be pushed out because it would obstruct the existing entrance to the dwelling. Additionally, the intent of the project is to provide more living area for the residents. A redesign to reduce the size of the addition to 464 square feet (i.e. 10% addition) or extend the garage walls significantly impact the objectives of the project and would not provide similar benefits to the applicant. • The project is exempt from requiring a coastal development permit because it includes an addition located on a property greater than 300 feet from the inland extent of any beach or the mean high tide line of the sea. 3 Zak Residence Modification Permit (PA2025-0051) Zoning Administrator, May 29, 2025 Page 4 Tmplt: 01/18/23 ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. The exemption includes additions to existing structures up to 50% of the floor area before the addition, or 2,500 square feet, whichever is less. The proposed project includes a 1,100 square-foot addition and remodel to an existing single-family residence with nonconforming interior parking dimensions in a developed neighborhood with no potential impact on the environment. PUBLIC NOTICE Notice of this application was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways), including the applicant, and posted on the subject property at least 10 days before the scheduled hearing, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development within 14 days following the date of the action. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: LAW/msw Attachments: ZA 1 Draft Resolution ZA 2 Vicinity Map ZA 3 Project Justification Letter from Applicant ZA 4 Project Plans 4 Attachment No. ZA 1 Draft Resolution 5 RESOLUTION NO. ZA2025-### A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, CALIFORNIA APPROVING A MODIFICATION PERMIT FOR AN ADDITION GREATER THAN 10% TO A SINGLE-UNIT DWELLING WITH A LEGAL NONCONFORMING GARAGE LOCATED AT 34 CASTAWAYS NORTH (PA2025-0051) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1.An application was filed by Oscar Almendarez, concerning property located at 34 Castaways North, and legally described as Lot 44 in Tract 15012 requesting approval of a modification permit. 2.The applicant requests a modification permit to allow an addition to an existing single-unit dwelling that is greater than 10% of the existing square footage. The existing single-unit dwelling is nonconforming due to the dimensions of the existing garage. Title 20 (Planning and Zoning) of the Newport Beach Municipal Code (NBMC) limits additions to a maximum of 10% of the existing gross floor area when a residence has nonconforming parking. The addition includes 390 square feet on the first floor and 710 square feet on the second floor (1,100 square feet total), which is a 24% addition. The addition otherwise complies with all applicable development standards and no other deviations are requested. 3.The subject property is designated Single Unit Residential Detached (RS-D) by the General Plan Land Use Element and is located within the PC43 (Upper Castaways) Zoning District. 4.The subject property is located within the coastal zone. The Coastal Land Use Plan category is Single Unit Residential Detached (RSD-A) (0.0 - 5.9 DU/AC) and it is located within the PC43 (Upper Castaways) Coastal Zoning District. The project is exempt from requiring a coastal development permit because it includes an addition located on a property greater than 300 feet from the inland extent of any beach or the mean high tide line of the sea. 5.A public hearing was held on May 29, 2025, online via Zoom. A notice of the time, place, and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1.This project is exempt from the California Environmental Quality Act (CEQA) under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of 6 Zoning Administrator Resolution No. ZA2025-### Page 2 of 7 07-29-24 Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 2. The exemption includes additions to existing structures up to 50% of the floor area before the addition, or 2,500 square feet, whichever is less. The proposed project includes a 1,100 square-foot addition and remodel to an existing single-family residence with nonconforming interior parking dimensions in a developed neighborhood with no potential impact to the environment. SECTION 3. REQUIRED FINDINGS. In accordance with Section 20.52.050(E) (Modification Permits – Required Findings) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: A. The requested modification will be compatible with existing development in the neighborhood. Facts in Support of Finding: 1. The surrounding neighborhood is comprised of one- and two-story single-unit dwellings. The Modification Permit will allow an addition to the existing two-story, single-unit dwelling, which is compatible with other properties in the neighborhood. The Project includes an addition on the first floor for a butler’s pantry and a lounge area off the kitchen. The addition on the second floor includes bathrooms, an office, a laundry room and a closet. The density or intensity does not change as a result of the Project. 2. The proposed addition will result in a total floor area of 5,740 square feet (including the 687-square-foot garage). The resulting bulk and scale of the Project is compatible with other single-unit dwellings within the neighborhood. Finding: B. The granting of the modification is necessary due to the unique physical characteristic(s) of the property and/or structure, and/or characteristics of the use. Facts in Support of Finding: 1. The existing interior clear dimensions of the property’s two-car garage is approximately 20 feet, 1 inch wide by 18 feet 10-inches-deep; and the one-car garage is 10 feet wide by 17 feet, 3 inches deep. These interior clear dimensions were approved with the original construction of the dwelling. However, due to the updated Zoning Code development standards of 20 feet wide by 20 feet deep interior clear dimensions (two- car garage) and 10 feet wide by 20 feet deep interior clear dimensions (single-car garage), the existing dwelling now has nonconforming parking spaces. Neither garage meets the minimum depth requirement. 7 Zoning Administrator Resolution No. ZA2025-### Page 3 of 7 07-29-24 2. NBMC Subsection 20.38.030(C) (Determination of Nonconformity – Nonconforming Structure) defines a “legal nonconforming structure” as any structure that was lawfully erected but does not conform with the current development standards for the zoning district in which it is located by reason of adoption or amendment of the Zoning Code. The existing structure is considered legal nonconforming as it was legally permitted but is now nonconforming due to the substandard interior garage dimensions. At the time of construction in 1997, there were no minimum size requirements for parking spaces. 3. Modifying the garage wall of the two-car garage is not feasible because it will require removing the powder bathroom and reframing the garage, which is not part of the project scope. Modifying the one-car garage is restricted as the garage is oriented perpendicular to the side property line with the existing exterior wall already abutting the setback line. Furthermore, the entry of the one-car garage could not be pushed out because it would obstruct the existing entrance to the dwelling. These changes would significantly impact the objectives, costs and scope of the project without benefit to the applicant. 4. The granting of the modification permit is necessary to allow a reasonable addition to an existing dwelling that was constructed in compliance with garage standards in effect at the time of original construction, and that are adequate in width for the parking of two vehicles. Finding: C. The granting of the modification is necessary due to practical difficulties associated with the property and that the strict application of the Zoning Code results in physical hardships that are inconsistent with the purpose and intent of the Zoning Code Facts in Support of Finding: 1. Facts in Support of Finding B are hereby incorporated by reference. 2. Relocating the interior walls 14 inches to achieve the 20-feet clear depth would eliminate the existing powder bathroom that is part of the original construction of the single-unit dwelling. Modifying the one-car garage depth is restricted due to the orientation of the existing garage that is perpendicular and abutting the minimum side setback. The one- car garage entrance is also adjacent to the existing entrance to the dwelling, leaving no space to push out. 3. A redesign to reduce the size of the addition to 464 square feet (i.e. 10% addition) or extend the garage walls significantly impact the objectives of the project and would not provide similar benefits to the applicant. These alternatives would be contrary to the purpose of the Project and would be costly to implement. Finding: 8 Zoning Administrator Resolution No. ZA2025-### Page 4 of 7 07-29-24 D. There are no alternatives to the modification permit that could provide similar benefits to the applicants with less potential detriment to surrounding owners and occupants, the neighborhood, or to the general public. Facts in Support of Finding: 1. Fact 2 of Finding C is hereby incorporated by reference. 2. The intent of the Project is to provide additional living areas on the first level towards the middle and rear of the existing structure; and on the second level second floor reorienting and adding bathrooms and adding an office and laundry room. A redesign to reduce the size of the addition to 464 square feet will significantly impact the objectives of the Project and would not provide similar benefits to the homeowner. Finding: E. The granting of the modification would not be detrimental to public health, safety, or welfare, to the occupants of the property, nearby properties, the neighborhood, or the City, or result in a change in density or intensity that would be inconsistent with the provisions of this Zoning Code. Facts in Support of Finding: 1. The Project conforms to all applicable development standards, including floor area limit, setbacks, and height, and will provide adequate protection for light, air, and privacy. The Project is consistent in scale with other dwellings in the neighborhood. 2. The Project maintains more than the minimum three-foot side yard for emergency access in accordance with NBMC Section 20.30.110 (Setbacks Regulations and Exceptions), Subsection A(1)(c). 3. The approval of this Project is conditioned such that the Applicant is required to obtain all necessary permits in accordance with the Building Code and other applicable Codes. 4. The Property includes a driveway adequate in size which measures 20 feet wide by 20 feet deep to accommodate parking for the two guest parking spaces per unit pursuant to the PC 43 regulations, thereby minimizing demand for on-street parking. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 9 Zoning Administrator Resolution No. ZA2025-### Page 5 of 7 07-29-24 2. The Zoning Administrator of the City of Newport Beach hereby approves the Modification Permit filed as PA2025-0051, subject to the conditions outlined in Exhibit A, which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or a call for review is filed with the Community Development Director by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 29th DAY OF MAY 2025. _____________________________________ Benjamin M. Zdeba, AICP, Zoning Administrator 10 Zoning Administrator Resolution No. ZA2025-### Page 6 of 7 07-29-24 EXHIBIT “A” CONDITIONS OF APPROVAL Planning Division 1. The development shall be in substantial conformance with the approved site plan, floor plans, and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. The project is subject to all applicable City ordinances, policies, and standards unless specifically waived or modified by the conditions of approval. 3. The applicant shall comply with all federal, state, and local laws. A material violation of any of those laws in connection with the use may cause the revocation of this Modification Permit. 4. This Modification Permit may be modified or revoked by the Zoning Administrator if determined should they determine that the proposed uses or conditions under which it is being operated or maintained are detrimental to the public health, welfare, or materially injurious to property or improvements in the vicinity or if the property is operated or maintained to constitute a public nuisance. 5. The project shall require the approval of a building permit for the proposed construction. 6. Any change to the approved plans shall require review by the Planning Division. An amendment to or the processing of a new modification permit may be required. 7. A copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans before issuance of the building permits. 8. Each parking space within the garage shall be permanently available and maintained for parking purposes. The interior clear dimensions (20 feet 1 inch wide by 18 feet 10 inches deep) shall be kept clear of obstructions including cabinets, shelving, or similar that may impact the ability to adequately park two vehicles. 9. Before the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 10. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or leasing agent. 11. Construction activities shall comply with Section 10.28.040 (Construction Activity – Noise Regulations) of the Newport Beach Municipal Code, which restricts hours of 11 Zoning Administrator Resolution No. ZA2025-### Page 7 of 7 07-29-24 noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Sundays, or Holidays. 12. This approval shall expire and become void unless exercised within 24 months from the actual date of review authority approval, except where an extension of time is approved in compliance with the provisions of Title 20 Planning and Zoning of the Newport Beach Municipal Code. 13. To the fullest extent permitted by law, the applicant shall indemnify, defend and hold harmless the City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs, and expenses (including without limitation, attorney’s fees, disbursements, and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of Zak Residence including, but not limited to, Modification Permit filed as PA2025-0051. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit, or proceeding whether incurred by the applicant, City, and/or the parties initiating or bringing the such proceeding. The applicant shall indemnify the City for all the City's costs, attorneys' fees, and damages that which City incurs in enforcing the indemnification provisions outlined in this condition. The applicant shall pay to the City upon demand any amount owed to the City under the indemnification requirements prescribed in this condition. Building Division Requirements 14. The building permit plans shall comply with the California Residential Code 2022. 12 Attachment No. ZA 2 Vicinity Map 13 VICINITY MAP Modification Permit PA2025-0051 34 Castaways North Subject Property 14 Attachment No. ZA 3 Project Justification Letter from Applicant 15 March 14th 2025 PROJECT DESCRIPTION AND JUSTIFICATION To Whom It May Concern, On behalf of homeowners Pete and Kimberly Zak, residing at 34 Castaways North, I, Oscar Almendarez, client representative, am submitting an application for a Coastal Development Permit and a Modification Permit. Coastal Development Permit This project involves the expansion of the existing living space over two floors, adding a total of 1,100 square feet to the building. The new construction is intended to improve the functionality and layout of the space, incorporating dedicated areas for media, storage, and personal living. The project is not located on a coastal bluff, nor does it impact any views. ● Lower Floor Addition: 390 sq.ft. ● Upper Floor Addition: 710 sq.ft. Modification Permit The proposed modification pertains to an existing two-car garage that does not currently meet the required zoning standards for clear dimensions of 20' x 20'. The issue is due to an existing powder room sink that encroaches into the garage area, occupying approximately 1'–10" by 3'–4" (a total of 6 square feet). This minor encroachment results in a slight reduction of the garage’s usable area, causing it to no longer meet the current zoning standard for a two-car garage. The applicant seeks a modification to allow the garage to remain as-is, maintaining its current dimensions and functional layout. The financial cost to expand the garage to meet the zoning standard is deemed prohibitive. Thank you for your consideration of this request. Please feel free to contact me if you require further information or clarification. Sincerely, Oscar Almendarez Applicant 951-990-4834 oz.almendarez@gmail.com 16 Attachment No. ZA 4 Project Plans 17 5DQ J H $5($2)$'',7,21833(5)/225 $5($2)$'',7,21/2:(5)/225 3523(57</,1( 3/ 3/ 3/ )5217<$5' 6(7% $&. 5($ 5  < $ 5 '  6(7 % $ & . 6,'(<$5' 6(7%$&. 6,'(<$5'6(7%$&. 3523(57</,1(  3/ 35 2 3 ( 5 7 <  / , 1 (         3523(57</,1(  3523(57</,1( 3523(57</,1(       6,'(<$5'6(7%$&.        $'-$&(175(6,'(1&($'-$&(175(6,'(1&( $'-$&(175(6,'(1&( 6,7( 6,7( &217$&7,1)2 352-(&76&23( /(*$/'(6&5,37,21 $31/27 2&&83$1&<58 7<3(2)&216758&7,219% ),5(635,1./(5672%()8//<635,1./(5('3(51)3$' 2)6725,(6 *(1(5$/3/$186(56'6,1*/(81,75(6,'(17,$/'(7$&+(' =21,1*',675,&73&833(5&$67$:$<6 3529,'('3$5.,1* *(1(5$/127(69,&,1,7<0$3 $(5,$/0$3 /27,1)2&$/&8/$7,216 7+,6%8,/',1*,62&&83$1&<57<3(9%72%()8//<635,1./(5(' $//:25.6+$//%(3(5)250(',1$&&25'$1&(:,7+352&('85(66(7)257+%<&25325$7(67$1'$5'663(&,),&$7,216$6$33529('%<2:1(5:+(16(3$5$7(/<%281'63(&,),&$7,216$&&203$1<7+(6('5$:,1*67+(<6+$//%(&216,'(5('3$572)7+(6(&216758&7,21'2&80(176 ,167$//$//0$18)$&785(',7(060$7(5,$/6$1'(48,30(17,1675,&7$&&25'$1&(:,7+7+(0$18)$&785(5663(&,),&$7,216 &2175$&725,65(63216,%/()25(;$0,1,1*$//&2175$&7'2&80(176),(/'&21',7,216$1'&21),50,1*7+$7:25.,6%8,/'$%/($66+2:1%()25(352&((',1*:,7+&216758&7,21,)&225',1$7,2148(67,2162&&857+(&2175$&725,65(63216,%/()252%7$,1,1*$&/$5,),&$7,21)5207+('(6,*1(5$1'257(1$17&216758&7,21&225',1$725%()25(352&((',1*:,7+:25.,148(67,2125%(/$7(':25. &2175$&725)257+(352-(&76+$//%(5(63216,%/()252%7$,1,1*$//5(48,5('%8,/',1*3(50,76 7<3,&$/$686(',17+(6('2&80(1766+$//0($17+$77+(&21',7,21,67+(6$0(255(35(6(17$7,9()256,0,/$5&21',7,2167+528*+28781/(6627+(5:,6(127(' '(7$,/6$5(868$//<.(<('$1'127('7<3,&$/21/<21&(:+(17+(<),5672&&85$1'$5(5(35(6(17$7,9()256,0,/$5&21',7,2167+528*+28781/(6627+(5:,6(127(' &2/801&(17(5/,1(6 $/625()(55('72$6*5,'/,1(6 $5(6+2:1)25',0(16,21,1*385326(6 5(%$6(%8,/',1*'5$:,1*6(;$&7/2&$7,21  '21276&$/('5$:,1*6',0(16,21/,1(6*29(51/$5*(6&$/('(7$,/6*29(5129(560$//6&$/('(7$,/6 $//:25.3(5)250('%<7+(&2175$&7256+$//&21)250727+((;,67,1*%8,/',1*&21',7,216 6((127(12)25$/7(51$7,9(6 &2175$&7256+$//3$7&+$1<(;,67,1*:$//6$1'25&(,/,1*6$61(('('725()85%,6+7+(63$&($1'5(3$,5$//'$0$*(6 &2175$&7256+$//0$,17$,17+(-2%6,7(,1$&/($1$1'25'(5/<&21',7,21)5((2)'(%5,6$1'/,77(5($&+68%&2175$&725,00(',$7(/<8321&203/(7,212)($&+3+$6(2):25.$1'6+$//5(029($//75$6+$1''(%5,6&5($7('$6$5(68/72)7+(,523(5$7,21 &2175$&7256+$//%(5(63216,%/()257+(*(1(5$/&/($1,1*832)$-2%$)7(5,76&203/(7,21&/($1,1*6+$//,1&/8'(,17(5,252)7+(%8,/',1*$1'3$7+2)75$9(/727+(-2%6,7($1'6+$//,1&/8'(7+('5,9(:$<67$,56$1'3523(57<*5281'6 $//'5$,1$*(,6(;,67,1*$1'725(0$,1821 3529,'(&+(0,&$/72,/(7)25352-(&7'85$7,21 3529,'(3/$67,&29(5)/225,1* 352-(&772%(6:(37'$,/< 68%&2175$&72561$0( 5()(5(1&(672%(3529,'(':,7+%,' 68%&2175$&7256725(029( ',6326(2)$//'(%5,6 3529,'(+286(675((7180%(5  9,6$%/( /(*,%/()520675((7 7+(',6&+$5*(2)32//87$17672$1<67250'5$,1$*(6<67(0,6352+,%,7('1262/,':67(3(752/(80%<352'8&7662,/3$57,&8/$7(&216758&7,21:$67(0$7(5,$/625:$67(:$7(5*(1(5$7('21&216758&7,216,7(625%<&216758&7,21$&7,9,7,(66+$//%(3/$&('&219(<('25',6&+$5(',1727+(675((7*877(52567250'5$,16<67(0 $//6(7%$&.60($685(')5203523(57</,1(72)$&(2)%8,/',1*),1,6+21/<67(0:$//)227,1*$//2:(',1726(7%$&.6((6758&785$/'(7$,/ ,668$1&(2)%8,/',1*3(50,7%<7+(&,7<2)1(:3257%($&+'2(61275(/,(9($33/,&$1762)7+(/(*$/5(48,5(0(176722%6(59(&29(1$176&21',7,216$1'5(675,&7,216:+,&+0$<%(5(&25'('$*$,1677+(3523(57<25722%7$,13/$16<286+28/'&217$&7<285&20081,7<$662&,$7,21635,2572&200(1&(0(172)$1<&216758&7,21$87+25,=('%<7+,63(50,7 $&$/26+$3(50,7,65(48,5(')25(;&$9$7,216'((3(57+$1 $1')256+25,1*$1'81'(53,11,1* 7+(0$;,0807,0(72&20/(7(&216758&7,2121$352-(&7,6/,0,7('727+5((<($56)5207+('$7(2)7+(3(50,7)25$//3(50,76,668('$)7(5$8*867$65(48,5('%<1%0&6(&7,21 2:1(5=DN5HVLGHQFH.LPEHUO\DQG3HWH=DN&DVWDZD\V1RUWK1HZSRUW%HDFK&$3+ .LP 3+ 3HWH (0$,/NLPEHUO\]DN#JPDLOFRP(0$,/S]DN#QFDUHFRP /(*(1' &$6 7 $:$<6 1257+ 1 ( &21&'5,9(:$< ( &21& 6,'(:$/. ( 3/$17(5 ( 5(6,'(1&( ( &$5*$5$*( 3/$1635(3$5('%<2+$&RQVWUXFWLRQ9LD(VFRULDO0LVVLRQ9LHMR&$3+&217$&72]$OPHQGDUH](0$,/2]DOPHQGDUH]#JPDLOFRP/,&(16(% $%%5(9,$7,216 )6),1,6+6/$% ))),1,6+)/225 *))*$5*(),1,6+)/225 7:7232):$// 7*:7232)*/$66:$// (*(;,67,1**5$'( 767232)67(3 1 1(: ( (;,67,1* &/&(17(5/,1( 737233/$7( 3/3523(57</,1( 3+(,*+7&$/&8/$7,2132,17 6,06,0,/$5 7<37<3,&$/ 82181/(6627+(5:,6(127(' &21&&21&5(7( 757232)522) (;7(;7(5,25 ,17,17(5,25 (/(9(/(9$7,21 )/)/2:/,1( 7'7232)'(&. 1*1$785$/*5$'( )/5)/225 (97 (/(&75,&$/9$8/7 ),1),1,6+ :0 :$7(50(7(5  (/(9$7,21 5(45(48,5(' 0,10,1,080 0$;0$;,080 $&29(56+((76,7(3/$1 $&,7<127(6'225$1':,1'2:6&+('8/( $&,7<127(6 $(;,67,1*)/2253/$1 $'(02/,7,213/$1 $/2:(5)/225&216758&7,213/$1 $833(5)/225&216758&7,213/$1 $(/(&75,&$/3/$16 $522)3/$1 $(;7(5,25(/(9$7,216 $%8,/',1*6(&7,216 $'(7$,/6 ''5$,1$*(3/$1 76+((7&550)57,7/(0$1'$725<5(4 76+((7&550)57,7/(0$1'$725<5(4 76+((7&550)57,7/(0$1'$725<5(4 76+((7&550)57,7/(0$1'$725<5(4 616758&785$/127(6 616758&785$/2%6(59$7,216 6)281'$7,213/$1 6522))5$0,1*3/$1 6'6758&785$/'(7$,/6 6'6758&785$/'(7$,/6 6'6758&785$/'(7$,/6 +);+$5'<'(7$,/6 +);+$5'<'(7$,/6 &2'(6 &$/,)251,$5(6,'(17,$/&2'( &5& &$/,)251,$%8,/',1*&2'( &%& &$/,)251,$3/80%,1*&2'( &3& &$/,)251,$0(&+$1,&$/&2'( &0& &$/,)251,$(/(&75,&$/&2'( &(& %8,/',1*(1(5*<()),&,(1&<67$1'$5'6 %((6 &$/,)251,$*5((1%8,/',1*67$1'$5'6&2'( &$/*5((1 &+$3(52)7+(1(:3257%($&+081,&,3$/&2'( 1%0& 38%/,&:25.6127(6$38%/,&:25.6'(3$570(17(1&52$&+0(173(50,7,163(&7,21,65(48,5('%()25(7+(%8,/',1*'(3$570(17),1$/&$1%(,668('$77+(7,0(2)38%/,&:25.6'(3$570(17,163(&7,21,)$1<2)7+((;,67,1*38%/,&,03529(0(1766855281',1*7+(6,7(,6'$0$*('1(:&21&5(7(6,'(:$/.&85%$1'*877(5$1'$//(<675((73$9(0(17:,//%(5(48,5('$'',7,21$/<,)(;,67,1*87,/,7,(6,1)5$6758&785($5('((0('68%67$1'$5'$1(:,1&+:$7(56(59,&(:$7(50(7(5%2;6(:(5/$7(5$/$1'25&/($1287:,7+%2;$1'/,':,//%(5(48,5('2)7+(&2676+$//%(%251(%<7+(3523(57<2:1(5 081,&,3$/&2'(6$1' 6$,''(7(50,1$7,21$1'7+((;7(172)7+(5(3$,5:25.6+$//%(0$'($77+(',6&5(7,212)7+(38%/,&:25.6,163(&725&2175$&725,65(63216,%/(720$,17$,17+(38%/,&5,*+72):$<$7$//7,0(6'85,1*7+(&216758&7,21352-(&7$6723:25.127,&(0$<%(,668(')25$1<'$0$*(25810$,17$,1('3257,212)7+(38%/,&5,*+72):$< $1$33529('(1&52$&+0(173(50,7,65(48,5(')25$//:25.$&7,9,7(6:,7+,17+(38%/,&5,*+72):$< $//35,9$7(,55,*$7,21635,1./(5+($'66+$//%(,167$//('$1'326,7,21(',1$0$11(57+$7:,//127&$86(,55,*$7,2129(5635$<21727+(38%/,&5,*+72):$< $//:25.5(/$7('72:$67(:$7(5,17+(38%/,&5,*+72):$<6+$//%(3(5)250('%<$&/,&(16('6$1,7$7,216(:(5&2175$&72525$1$/,&(16('*(1(5$/(1*,1((5,1*&2175$&725 35,25723(5)250,1*$1<:25.,17+(&,7<5,*+72):$<$1(1&52$&+0(173(50,70867%(2%7$,1('%<7+(38%/,&:25.6'(3$570(17 $1(&52$&+0(17$*5((0(17,65(48,5(')25$//12167$1'$5',03529(0(176$1'6+$//&203/<:,7+&,7<&281&,/32/,&</ (526,21&21752/0$,17(1$1&( 35,2572($&+5$,1672507+((526,21&21752/6<67(06+$//%(,163(&7('$1''(),&,(1&,(6&255(&7(' $)7(5($&+5$,1672506,/7$1''(%5,66+$//%(5(029(')520&+(&.%(506$1''(6,/7,1*%$6,16$1'7+(%$6,1638036'5<21/<&/($1:$7(5)5207+(%$6,16&$1%(3803('727+(67250'5$,16 ),/7(50$7(5,$/0$<%(86(' $)7(5($&+5$,1675207+(3(5)250$1&(2)7+((526,21&21752/6<7(06+$//%((9$/8$7('$1'5(9,6('$1'5(3$,5('$61(&(66$5< '(9,&(66+$//127%(029('2502',),(':,7+2877+($33529$/2)7+(&,7<(1*,1((5$1''(6,*1(( 7+(&2175$&7256+$//%(5(63216,%/($1'6+$//7$.(1(&(66$5<35(&$87,2167235(9(1738%/,&75(63$662172$5($6:+(5(,03281'(':$7(5&5($7(6$+$=$5'286&21',7,21 7+(&2175$&725$1'3(50,77((25352-(&72:1(56+$//%(5(63216,%/()25&217,18$/0$,17(1$1&(2)7+('(9,&(6,17+((9(172))$,/85(255()86$/%<7+(&2175$&7253(50,77((25352-(&72:1(5723523(5/<0$,17$,17+('(9,&(67+(&,7<(1*,1((50$<&$86((0(5*(1&<0$,17$1$1&(:25.72%('21(723527(&7$'-$&(1735,9$7($1'38%/,&3523(57<7+(&2676+$//%(&+$5*('727+(2:$1(5$1'6+$//,1&/8'($1,1,7,$/02%,/,=$7,21&2673/867+(&2672)'2,1*7+(:25. 6+((7,1'(; '()(55('68%0,77$/6 $&/2&$7,216$1'12,6(/(9(/$5(1273$572)7+,63/$1&+(&.$1'3(50,73529,'(3/$167+$7'(021675$7(7+(6281'/(9(/'2(6127(;&(('GED GED:,7+7,0(5GED:,7+7,0(5$1'1(,*+%25 6&216(17 3(56(&7,212)7+(1%0&35,2572528*+3/80%,1*$1'(/(&75,&$/,167$//$7,21/2&$7,212)0($685(0(1772%($7$'-$&(173523(57<3$7,22523(1,1* ),5(635,1./(562%7$,1),5(635,1./(53(50,735,2572&$//,1*)25522)6+($7+,1*,163(&7,21 '()(55('68%0,77$/672%(5(9,(:('%<352-(&7$5&+,7(&725(1*,1((52)5(&25'$1'&(57,),('35,257268%0,77$/)253/$1&+(&.25$33529$/%<7+(&,7< 648$5()227$*(&$/&8/$7,216 (;,67,1*1(:727$//,9,1*63$&(/2:(5)/22564)764)764)7/,9,1*63$&(833(5)/22564)764)764)7727$/64)764)764)7 *$5$*(64)764)764)7 &29(5('(175<64)764)764)7 $5($2)5(02'(/64)7 )5217<$5'6(7%$&. /()75,*+76(7%$&. 5($56(7%$&.   ( &21&'5,9(:$<$3352$&+ ( *5$66 $'-$&(175(6,'(1&( 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (  $VLQGLFDWHG                3 0 $ &2 9 ( 5  6 + ( ( 7   6 , 7 (  3 / $ 1    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU 6,7(3/$1.(<127(6/2&$7,212)(;,67,1*:$7(5+($7(5/2&$7,212)(;,67,1**$60(7(5/2&$7,212)(;,67,1*(/(&75,&$/3$1(//2&$7,212)(;,67,1*$&81,76/2&$7,212)1($5(67(;,67,1*),5(+<'5$17(;,67,1* &08%/2&.:$//678&&2),1,6+(;,67,1* :22')(1&(/2&$7,212)(;,67,1*%8,/7,1%%4$%29(),1,6+685)$&(/2&$7,212)(;,67,1* *$7(6(/)/$7&+,1*$1'6(/)&/26,1*   6,7(3/$1 ( &$5*$5$*( ( *5$66 ( 3$5.:$< $'-$&(175(6,'(1&( $'-$&(175(6,'(1&(      ,668( &2175$&7257%' 1 322/81'(56(3(5$7(3(50,7 1 63$81'(56(3(5$7(3(50,7 62,/6(1*,1((56$*HRWHFKQLFDO,1&1&RDVW+Z\6XLWH/DJXQD%HDFK&D3+(0$,/SDQGHUVRQ#6$JHRWHFKQLFDOFRP$QWKRQ\=HSHGD 3URMHFW*HRORJLVW /,&(16(&(*5H]D6DEHUL 3ULQFLSDO(QJLQHHU /,&(16(*( 6758&785$/(1*,1((5,1*%$,&+(1*,1((5,1*%5(1'21%$,&+063(32%2;$/7$/20$&$3+(0$,/EDLFKHQJLQHHULQJ#JPDLOFRP/,&(16(&H[S 1(:/2:(5)/225/,9,1*63$&($'',7,2164)772,1&/8'(0(',$50%87/(563$175</281*( 1(:833(5)/225/,9,1*63$&($'',7,2164)772,1&/8'(2)),&(0$67(5&/26(7%$7+/$81'5<%$7+$1'%$7+ 1(:(;7(5,25:,1'2:6$1''22567+528*+287 1(:(;7(5,256,',1*7+528*+287 1(:&/$66$&21&5(7(7,/(522)7+528*+287 5(02'(/(;,67,1*/2:(5)/225)2<(5%('5220',1,1*50*5($7503:'5/$81'5<.,7&+(1 5(02'(/(;,67,1*833(5)/225+$//%('5220%$7+%('5220%$7+%('5220%('5220%$7+%('5220 1(:),5(635,1./(5672%($''('81'(56(3(5$7(3(50,7 1(:322/$1'63$81'(56(3(5$7(3(50,7 7,7/((1(5*<&$/&63HUIHFW'HVLJQ 'HYHORSPHQW,QF'HVLJQ &RQVXOWLQJ:9$//(<%/9'$/+$0%5$&$(0$,/3(5)(&7$$$#$2/&203+/,&(16(0 /2:(5)/5)) *)) *)) 18 '2256&+('8/( '2255()'2256,=(:[+7<3(0$18)$&785(02'(/0$7(5,$/),1,6+7(03(5('(*5(66 6+*&8)$&725 $ [ <(6 12 47< /,*+767$,17%' %<(6 12  7%' 1$1$ &  [ <(6 12 ' [   :,1'2:6&+('8/( :,1'2:5():,1'2:6,=(:[+7<3(0$18)$&785(02'(/0$7(5,$/),1,6+7(03(5('(*5(66 6+*&8)$&725  [ <(6 12 47< -HOG:HQ 6,7(/,1(&/$'(;7:22',17      [ 1212 -HOG:HQ 6,7(/,1(&/$'(;7:22',17  [ ),;('12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 )(1(675$7,2160867+$9(7(0325$5<$1'3(50$1(17/$%(/6 3$1(/08/,7,6/,'(32&.(7 /D&DQWLQD(  [ *$5$*('225 <(6 <(6  7%'  [  :+,7(2$. %27+',5(&7,216 %/$&. <(6 12/D&DQWLQD %/$&. %/$&. %/$&.   %/$&. %/$&.  [ %/$&. )(1(675$7,2160867+$9(7(0325$5<$1'3(50$1(17/$%(/6 3$1(/6/,'(5;2 6/,'(5 '87&+'225    1212 -HOG:HQ 6,7(/,1(  [ $:1,1*12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 [  %/$&.   %/$&. %/$&.),;(' &/$'(;7:22',17  [  &$6(0(17 5 6,1*/()5(1&+'5/D&DQWLQD 6:,1*6,03/(  [ <(6 12 /D&DQWLQD)21(',5(&7,21 %/$&.   <(6 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17  [ %/$&.  [ %/$&.),;(' '28%/(&$6(0(17  [ 1212 -HOG:HQ 6,7(/,1(%/$&.&/$'(;7:22',17  [ <(6 12 '87&+'225*%/$&. 0($162)(*5(66 (PHUJHQF\HVFDSHDQGUHVFXHRSHQLQJUHTXLUHGIRUEHGURRPVDQHPHUJHQF\HVFDSHDQGUHVFXHRSHQLQJVKDOOPHHHWDOORIWKHIROORZLQJ5 D$QHWFOHDURSHQLQJDUHDRIQRWOHVVWKDQVTIW VTIWIRUJUDGHIORRUZLQGRZ E0LQLPXPFOHDURSHQLQJKHLJKWF0LQLPXPFOHDURSHQLQJZLGWKRIG7KHERWWRPRIZLQGRZRSHQLQJVKDOOQRWEHPRUHWKDQIURPWKHIORRUH6KDOORSHQGLUHFWO\LQWRDSXEOLFZD\SXEOLFDOO\\DUGRUFRXUW5  [ <(6 12 +   12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 <(6 -HOG:HQ 6,7(/,1(&/$'(;7:22',17  [ %/$&.  [ %/$&.    <(612 -HOG:HQ 6,7(/,1(  [ 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 <(6 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 [  %/$&.   %/$&. %/$&. &/$'(;7:22',17   12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17 12 12 -HOG:HQ 6,7(/,1(&/$'(;7:22',17  [ %/$&.  [ %/$&. $:1,1*  /,*+767$,17%':+,7(2$. &/$'(;7&/$',17%/$&. &/$'(;7&/$',17&/$'(;7&/$',17 &/$'(;7&/$',17 1$1$*$5$*('225 7%'/,*+767$,17%':+,7(2$. 3$1(/08/,7,6/,'(32&.(7 7%'7%':+,7(2$. ),;(' &$6(0(17 / &$6(0(17 5  [ &$6(0(17 / ),;(' '28%/(&$6(0(17 &$6(0(17 5  [ &$6(0(17 / '28%/(&$6(0(17 &$6(0(17 / '28%/(&$6(0(17 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ &, 7 <  1 2 7 ( 6   6 & + ( ' 8 / ( 6    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU ,668( 19 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                 3 0 $ &, 7 <  1 2 7 ( 6    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & (  $XWKRU &KHFNHU ,668( 20 3/$1/(*(1' (;,67,1*;678':$// :+ 83 )2<(5 +$// +$// /$81'5< *8(67%('5220 %$7+ :,& +$///,9,1*5220 ',1,1*5220 )$0,/<5220 .,7&+(1 %5($.)$67122. 3$175< 3:'5 /,1(1 *$5$*( *$5$*( &29(5('325&+ )3 )3 :' ': 6,1. 6729(723 ,6 / $ 1 ' %8 , / 7 ,1 %8 , / 7 ,1 :,1(&22/(5 '%/29(167$&.('%52,/(5$1'0,&525())5= %8 , / 7 ,1 %8 , / 7  ,1 62 ) 7 1 ( 5                              '1 '1 /$1',1* &/26(7 :,& :,& &/26(7 +(5:$/.,1&/26(7 +,6:$/.,1&/26(7 +$// %('5220 %$7+ %('5220 %('5220%('5220 %$7+ 2)),&( 0$67(5%('5220 0%$7+ +$// 6.</,*+7$77,&$&&(66 %8,/7,1 %8,/7,1 %8,/7,1 %8,/7,1 %8,/7,1 /,1(1 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ (; , 6 7 , 1 *  ) / 2 2 5  3 / $ 1 6    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU   (;,67,1*/2:(5)/2253/$1  (;,67,1*833(5)/2253/$1 ,668( 1 21 3/$1/(*(1' '(02/,7,21 (;,67,1*;678':$// *$5$*( *$5$*( %$7+ *8(67%('5220 &29(5('(175< )2<(5 83 3:'5/$81'5<:,& /,9,1*5220 +$// +$// ',1,1*5220 .,7&+(1 )$0,/<5220 %5($.)$67122. %('5220 :,& %$7+ +$//'1 '1 &/26(7 %('5220 +$// %('5220 %('5220 &/26(7 :,& %$7+ +(5:$/.,1&/26(7 +,6:$/.,1&/26(7 0$67(5%('5220 0%$7+ 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ '( 0 2 / , 7 , 2 1  3 / $ 1 6    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU   /2:(5)/225'(02/,7,213/$1  833(5)/225'(02/,7,213/$1 ,668( 1 22 5DQ J H $ $ $$    0$; 0$; ( )2<(5 ( 9+$// ( /$81'5< ( *8(67%('5220 ( %$7+ +$// ( ',1,1*5220 1 0(',$5220 ( *5($75220 1 %87/(563$175< ( 3:'5 ( *$5$*( *$5$*( ( .,7&+(1 :+ 83 :,& ( )3 %8,/7,1 %8,/7,1 1 /281*(    (   32&.(7   5())5=3$175<0,&52 7$//&$% 87,/,7<&/26(7 6+(/9(6 '%/29(1 %$ 5 1  ' 2 2 5 6 &2$7&/26(7 :,1(72:(5 :,1(72:(5 5() 5() ,&( :,1(%8,/7,1                                               :                                     [ 3$1(/6/,',1*32&.(7'225            [      3 $ 1 ( /  6/,' , 1 *  3 2 & . ( 7  ' 2 2 5 ': 32&.(7                                                                           32&.(7               32&.(7 ' 79                  $  % +  & '   ( )  * (  0$; 0$; 0$; 0$;  1 &29(5('(175< /,1(2))/225$%29( ': 75$6+  $& $&   1(::$//[678'6#2& 1(::$//[678'6#2& '(02:$//6 :,1'2:5()(5(1&(6&+('8/( '2255()(5(1&(6&+('8/( &$%,1(7%8,/7,1&$6(:25. &2/8015()6758&785$/':*6 )851,785()2535(6(17$7,21385326(621/< ),5(3/$&(35()$%*$621/<$33/,$1&( 3/80%,1*),;785(6,1. $66(/(&7(' 3/80%,1*),;785(72,/(7 $66(/(&7(' 3/$1/(*(1' /,*+7,1*),;785(5()(5(1&((/(&75,&$/3/$16 (;,67,1*;678':$//  L ".(<127(7$*5()(5(1&(.(<127(/(*(1'7+,66+7 :,1'2:7$*5()(5(1&(6+((7$ '2257$*5()(5(1&(6+((7$ 602.('(7(&7256((6+((7$ $ &$5%210212;,'(6(16256((6+((7$ $ 6' &0 ;   '(7$,/6+((7%8,/',1*6(&7,21  '(7$,/6+((7(;7(5,25(/(9$7,21 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ /2 : ( 5  ) / 2 2 5  & 2 1 6 7 5 8 & 7 , 2 1 3/ $ 1    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU 3529,'(7+()2//2:,1*0$1'$725<5(48,5(0(176D$9HOHFWULFDOUHFHSWDFOHORFDWHGZLWKLQIHHWRIWKHZDWHUKHDWHUDQGDFFHVVLEOHWRWKHZDWHUKHDWHUZLWKQRREVWUXFWLRQVDQGE$FDWHJRU\,,,RU,9YHQWRUDW\SH%YHQWZLWKVWUDLJKWSLSH QREHQGVRURIIVHWVEHWZHHQWKHRXWVLGHWHUPLQDWLRQDQGWKHVSDFHZKHUHWKHZDWHUKHDWHULVORFDWHGDQGF$FRQGHVDWHGUDLQUXQWRDQDSSURYHGUHFHSWRUORFDWLRQWKDWLVQRPRUHWKDQKLJKHUWKDQWKHEDVHRIWKHZDWHUKHDWHUDOORZLQJQDWXUDOGUDLQDJHZLWKRXWSXPSDVVLVWDQFHDQGG$JDVVXSSO\OLQHZLWKDFDSDFLW\RIWRVXSSO\DWOHDVW%WXKUWRWKHZDWHUKHDWHU 'HGLFDWHGOLQHRUSURYLGHJDVORDGFDOFXODWLRQV 7<3,&$/0(&+$1,&$/3/80%,1*(/(&75,&$/127(6 3529,'(7+()2//2:,1*3,3(,168/$7,215(48,5('0($685(6D7KHILUVWIHHWRIKRWDQGFROGZDWHUSLSHVIURPWKHZDWHUKHDWHURUVWRUDJHWDQNE$OOKRWZDWHUSLSHVRUODUJHUUHTXLUHVIXOODQGFRQWLQXRXVSLSHLQVXODWLRQVHFWLRQ M LLDQG6HFWLRQ M F$OOSLSLQJDVVRFLDWHGZLWKDKRWZDWHUUHFLUFXODWLRQV\VWHPUHJDUGOHVVRIWKHGLDPHWHUG3LSLQJIURPWKHZDWHUKHDWLQJVRXUFHWRDVWRUDJHWDQNDQGRUEHWZHHQWDQNVH3LSLQJEXULHGEHORZJUDGHI$OOKRWZDWHUSLSLQJEHWZHHQWKHKHDWVRXUFHVWRWKHNLWFKHQIL[WXUHV   /2:(5)/225&216758&7,213/$1 $//(;,67,1*725(0$,181/(6627+(5:,6(127('&2175$&725729(5,)<$//',0(16,216',0(16,2167$.(1)520)5$0,1*(;7(5,2572&(17(5/,1(2):$//60,1,080$,563$&(5(48,5('%(7:((1,168/$7,21$1'522)6+($7+,1*3529,'(5522),168/$7,21,1$77,&63$&(522)72%(&/$66$0$7(5,$/&21&5(7(7,/(522)6((6+((7$(;7(5,25:22'(1'22566+$//%(2)62/,'&25(&216758&7,21256+$//%(&29(5('217+(,16,'()$&(:,7+*$8*(6+((70(7$/$77$&+(':,7+6&5(:6$721&(17(56$5281'7+(3(5,0(7(5$//6:,1*,1*'22566+$//%((48,33(':,7+$'($'%2/7:,7+$0,1,0807+52:2),1&+$1'$1(0%('0(172)127/(667+$1,1&+$1<*/$667+$7,6/2&$7(':,7+,1,1&+(62)7+(/2&.,1*'(9,&(21$'2256+$//%()8//<7(03(5('$//1(:(;7(5,25:$//672+$9(5%$77,168/$7,21$//1(:522)5$)7(5672+$9(5%$77,168/$7,21)/225-2,675%$776(1*,1((5(':22')/225,1*7+528*+2877,/()/225,1*,1%$7+5220$7%('52206$1'%$6(0(173529,'(21(23(1$%/((6&$3(:,1'2:25'2250((7,1*$//2)7+()2//2:,1*$123(1$%/($5($2)127/(667+$164)7 64)7$7*5$'(/(9(/ $0,1,080&/($5,1&++(,*+7$1',1&+:,'7+$1'$6,//+(,*+712729(5,1&+(6$%29(7+()/225 &5& $'2250$<6:,1*29(5/$1',1*7+$7,6127025(7+$1,1&+%(/2:7+5(6+2/'$1',1&+)256/,',1*'2256&%&3(56(&7,21&$/*5((1$1'&,9,/&2'( F $//121&203/,$173/80%,1*),;785(6:,7+,17+,65(6,'(1&(6+$//%(5(3/$&(':,7+:$7(5&216(59,1*3/80%,1*),;785(6%8,/',1*6),1$/2125$)7(5$5((;&(37)5207+,65(48,5(0(175(3/$&((;,67,1*602.($/$506$)7(5<($56)520'$7(2)0$18)$&785(0$5.('217+(81,725,)'$7(2)0$18)$&785(&$1127%('(7(50,1('3(56(&7,215$//1(:,17(5,25:$//672%('5<:$//$//1(:&(,/,1*'5<:$//72%('5<:$///$1',1*62))/2256$77+(5(48,5('(*5(66'2256+$//127%(025(7+$1,1&+(6/2:(57+$17+(7232)7+(7+5(6+2/'7+((;7(5,25/$1',1*25)/2256+$//127%(025(7+$1,1&+(6%(/2:7+(7232)7+(7+5(6+2/'3529,'('7+('225'2(61276:,1*29(57+(/2:(5/$1',1*25)/225521(+285:$//$66(0%/,(66+$//(;7(1')5207+()281'$7,21727+(81'(56,'(2)522)5602.($/$5066+$//%(,167$//(',16,'($//%('52206217+(&(,/,1*25:$//2876,'(2)($&+%('5220$1',1(9(5<6725<3(56(&7,215602.('(7(&725672%(,17(5&211(&7('+$5':,5('602.($/$50:,7+%$77(5<%$&.83 5 5 $1',167$//('3(51)3$&$5%210212;,'($/$5066+$//%(,167$//(',00(',$7(/<287,6'(2)$//%('52206$1'21(9(5</(9(/3(56(&7,215&$5%210212;,'($/$506+$//%(,17(5&211(&7('+$5':,5(':,7+%$77(5<%$&.83'8&763(1(75$7,1*:$//25&(,/,1*3(1(75$7,216%(7:((1*$5$*($1'':(//,1*81,76+$//%(&216758&7('2)*$8*(0,1,0806+((70(7$/$1'6+$//+$9(1223(1,1*,1727+(*$5$*(3(56(&7,215/$1',1*$7(*5(66'2256+$//127%(025(7+$1/2:(57+$17232)7+5(6+2/' (;&(37,217+5(6+2/'+(,*+7&$1%(0$;,)'225'2(61276:,1*29(57+(/$1',1* 3(56(&7,215$//3/80%,1*),;78(566+$//&203/<,1*:,7+7+(0$;,080)/2:5$7(6,16(&7,21&$/*5((1%8,/',1*67$1'$5'6&2'(:$7(53,3,1*0$7(5,$/6:,7+,1$%8,/',1*6+$//%(,1$&&25'$1&(:,7+6(&2)7+(&$/,)251,$3/80%,1*&2'(3(;&39&$1'27+(53/$67,&:$7(53,3,1*6<67(066+$//%(,167$//(',1$&&25'$1&(:,7+7+(5(48,5(0(1762)6(&2)7+(&3&,167$//$7,2167$1'$5'62)$33(1',;2)7+(&3&$1'0$18)$&785(65(&200(1'(',167$//$7,2167$1'$5'6&39&:$7(53,3,1*5(48,5(6$&(57,),&$7,212)&203/,$1&($663(&,),(',16(& G 2)7+(&3&35,25723(50,7,668$1&($//1(:3,3,1*72%(3(;3,3( 7<3,&$/&216758&7,21127(6 ,668( &216758&7,21.(<127(6 1(:*5$1,7(25(48,9&2817(57231(:833(5$1'/2:(5&$%,1(761(:'((3,6/$1'&$%,1(76:,7+&2817(572329(5+$1*1(:.,7&+(16,1.:,7+)$8&(7 75$6+',6326$/1(:*$65$1*($1'+22'$%29(/2&$/(;+$8676<67(09(17('72287'22566+$//+$9($0,1,080(;+$8675$7(2)FIP%((6 R ([FWR D  $6+5$(VWG':(//,1*81,7)/225$5($!64)71(:',6+:$6+(51(:5()5,*(5$725)5((=(51(:0,&52:$9(1(:75$6+38//2871(:'28%/(29(11(:7$//&$%,1(71(:&2817(5723/2&$7,212)1(:/$81'5<6,1.$1')$8&(7/2&$7,212)5(/2&$7(':$6+(5$1''5<(51(:81'(5&2817(55()5,*(5$7251(:81'(5&2817(5,&(0$.(51(::,1(72:(51(:9$1,7<6,1.:,7+)$8&(71(:72,/(70,1:,'7+&/($5$1&($1'&/($5$1&(,1)52171(::$//&29(5,1*6+$//%(&(0(173/$67(57,/(25$33529('(48$/72,1&+(6$%29('5$,1$76+2:(562578%:,7+6+2:(560$7(5,$/627+(57+$16758&785$/(/(0(176$5(72%(02,6785(5(6,67$17 &5&5 1(:6+2:(5%$7+9$/9( 75,01(:)5$0(/(66*/$666+2:(51(:6+2:(57+5(6+2/'1(:%8,/7,1&$%,1(71(:7$1./(66:$7(5+($7(5:$7(5+($7(5/2&$7,216+$//+$9(%((6 Q $'D$9HOHFWULFDOUHFHSWDFOHWKDWLVIHHWIURPWKHZDWHUKHDWHUE$&DWHJRU\,,,RU,9YHQWRUDW\SH%YHQWZLWKVWUDLJKWSLSHF&RQGHQVDWHGUDLQWKDWLVQRPRUHWKDQLQFKHVKLJKHUWKDQWKHILQLVKVXUIDFHEHORZG$JDVVXSSO\OLQHZLWKDYDLODEOHFDSDFLW\IRUQRWOHVVWKDQD%78KUV\VWHP1(:&21&5(7(/$1',1*0,15 5(;,67,1*),5(3/$&(3527(&7,13/$&(1(:0,1),5(5$7(''2256(/)&/26,1* 6(/)/$7&+,1*1(:259(5,)<,1),(/'(;,67,1*7<3(;*<3%'1(:$&&21'(16(5(;,67,1*67$,56$1'5$,/,1*725(0$,13527(&7,13/$&( 1                                                           23 $ $ $$    ( $77,&$&&(66 5 +$// ( %('5220 1 /$81'5< ( %('5220 ( %('5220 ( 0$67(5%('5220 ( 0%$7+ 1 %$7+ 1 %$7+ ( %('5220 6725$*( 1 2)),&( :$/.,1&/26(7 ( ( ( ( ( ( (   %8,/7,1 %8,/7,1 '1 '1 /$1',1* %8,/7,1'5(66(5        /,1(1                           32 & . ( 7                                        /,1(1           :$/.,1&/26(7          79 79    79 79    ( %$7+:,& 1 %$7+ %8,/7,1'5(66(5 1 :,&                         :,& %8,/7,1   .,1* 48((1 48((1 48((1                     :,&':                                       1(::$//[678'6#2& 1(::$//[678'6#2& '(02:$//6 :,1'2:5()(5(1&(6&+('8/( '2255()(5(1&(6&+('8/( &$%,1(7%8,/7,1&$6(:25. &2/8015()6758&785$/':*6 )851,785()2535(6(17$7,21385326(621/< ),5(3/$&(35()$%*$621/<$33/,$1&( 3/80%,1*),;785(6,1. $66(/(&7(' 3/80%,1*),;785(72,/(7 $66(/(&7(' 3/$1/(*(1' /,*+7,1*),;785(5()(5(1&((/(&75,&$/3/$16 (;,67,1*;678':$//  L ".(<127(7$*5()(5(1&(.(<127(/(*(1'7+,66+7 :,1'2:7$*5()(5(1&(6+((7$ '2257$*5()(5(1&(6+((7$ 602.('(7(&7256((6+((7$ $ &$5%210212;,'(6(16256((6+((7$ $ 6' &0 ;   '(7$,/6+((7%8,/',1*6(&7,21  '(7$,/6+((7(;7(5,25(/(9$7,21 2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ 83 3 ( 5  ) / 2 2 5  & 2 1 6 7 5 8 & 7 , 2 1 3/ $ 1    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU   833(5)/225&216758&7,213/$1 ,668( 1 &216758&7,21.(<127(6 1(:*5$1,7(25(48,9&2817(57231(:9$1,7<6,1.:,7+)$8&(71(:72,/(70,1:,'7+&/($5$1&($1'&/($5$1&(,1)52171(::$//&29(5,1*6+$//%(&(0(173/$67(57,/(25$33529('(48$/72,1&+(6$%29('5$,1$76+2:(562578%:,7+6+2:(560$7(5,$/627+(57+$16758&785$/(/(0(176$5(72%(02,6785(5(6,67$17 &5&5 1(:6+2:(5%$7+9$/9( 75,01(:)5$0(/(66*/$666+2:(51(:6+2:(57+5(6+2/'1(:&/26(7%8,/7,11(:%8,/7,1/2&$7,212)1(:/$81'5<6,1.$1')$8&(7/2&$7,212)1(::$6+(5$1''5<(51(:6+2:(56+(/9(0,16/23(72'5$,1$3352; $%29(),1,6+)/225(;,67,1*67$,56$1'5$,/,1*725(0$,13527(&7,13/$&(                                         24 522)3/$1/(*(1' /,1(2)(;7(5,25:$// /,1(2)522) $5($2)1(:522))5$0,1*1')/225 $5($2)1(:522))5$0,1*67)/225 $ $ $$    (  5 , ' * ( ( +,3 ( +,3 ( +,3 ( +,3                                         (  5 , ' * ( ( 5,'*( ( 5,'*( ( 9$//(< ( 9$//(< ( 9$//(< (  5 , ' * ( (  5 , ' * ( ( 9$//(< ( 9$//(< ( 9$//(< ( 5,'*( ( 9$//(< 1  5 , ' * ( 1  5 , ' * ( 1  5 , ' * ( 1  5 , ' * ( 1  5 , ' * ( 1  5 , ' * ( 1 5,'*( 1 +,3 1 +,3 1 9$//(< 1 9$//(< 1 9$//(< 1 9$//(< 1 9$//(< 1 9$//(< 1 9$//(< 1 5,'*(   1 9$//(< 1 9$//(<  1 9$//(<(/               (/  (/  (/          (/          (/          (/  (/          (  5 , ' * ( (  5 , ' * ( (  5 , ' * ( (  5 , ' * ( (  5 , ' * ( (  5 , ' * ( ( 5,'*( ( 5,'*( ( 5,'*( ( 9$//(< ( +,3 ( +,3 ( +,3 ( +,3 ( 9$//(< ( 9$//(< ( 9$//(< ( 9$//(< ( 9$//(< ( 9$//(< ( 9$//(< ( 9$//(< ( +,3                            2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ 52 2 )  3 / $ 1    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU   522)3/$1 ,668( 1   (;,67,1*522)3/$1 7<3,&$/522)127(6 $//522)6+($7+,1*3(56758&1(:)/$6+,1*),1,6+720$7&+5$,1*877(567<3,&$/(1&/26('$77,&6$1'5$)7(563$&(66+$//+$9(&52669(17,/$7,21)25($&+6(3$5$7(63$&(7+(727$/1(7)5((9(17,/$7,1*$5($6+$//127%(/(667+$12)7+($5($2)7+(63$&(9(17,/$7('7+(727$/$5($,63(50,77('72%(5('8&('723529,'('$7/($67$1'127025(7+$12)7+(5(48,5('9(17,/$7,1*$5($,6/2&$7(',17+(833(53257,212)7+(63$&(72%(9(17,/$7('$7/($67 $%29(($9(25&251,&(9(176:,7+7+(%$/$1&(2)7+(5(48,5('9(17,/$7,213529,'('%<($9(25&251,&(9(1769(1723(1,1*66+$//%(359,'(':,7+&25526,215(6,67$17:,5(0(6+:,7+0,1,08023(1,1*6$0,1,0802)$,1&+$,563$&(0867%(0$,17$,1('%(7:((17+(,168/$7,21$1'7+(522)6+($7+,1*$77+(/2&$7,212)9(176&5&5,168/$7,216+$//127%/2&.7+()5(()/2:2)$,53529,'(,1&+63$&(%(7:((1,168/$7,21$1'522)6+($7+,1*3(56(&7,215 5(48,5('1)9$VTIW VTIW &219(5772,1&+(6 VTIW[ VTLQ +,*+$1'/2:9(17 VTLQ[ VTLQ 2 +DJHQURRIYHQW VTLQ1)9$+LJK3URILOH0RGHO62 +DJLQH9HQW&DOFXODWRU%HORZ 727$/2)+,*+9(176 VTLQVTLQ  9(17727$/2)/2:9(176 VTLQVTLQ  9(17 3529,'('+,*+9(176 /2:(59(176 1(:522)21/<>9(17&$/&8/$7,216@ 522).(<127(6 1(:522)72%(/,*+7:(,*+7&21&5(7(522)7,/(&/$66$522),$3028(6(5(DJOH/LWH321'(526$6LHUUD0DGUH/%3(564)7%,167$//$7,212)522),1*6+$//%(,1$&&25'$1&(:,7+0$18)$&78(5 663(&,),&$7,2161(:5$,1*877(56$/80,180&2/25%/$&.1(:/2&$7,212)5$,1*877(5'2:163287(;,67,1*&+,01(<&$3:,7+63$5.$55(6725)25',5(&79(17),5(3/$&(*$621/<1(:2+$*,1522)9(177$3(5('/2:352),(6((&$/&8/$7,21%(/2:1(:522)&5,&.(7&/$66$)/$7522)7$1&2/25,&&(650,16/23(67$1',1*6($0$/80,180&2/25522)&/$66$8/3,7&+,&&(65&2/25%/$&.%,167$//$7,212)522),1*6+$//%(,1$&&25'$1&(:,7+0$18)$&78(5 663(&,),&$7,216%(55,'*(0$18)$&785,1*&203$1<*DI9HUD6KLHOG7KHUPDODQGPRLVWXUHSURWHFWLRQXQGHUOD\PHQW,&&(65                                                                                25 )) 73  5RRI  ))  73     $ +        1(:522)12772(;&(('(;,67,1*522)5,'*(+(,*+7   *))                                                      75  75         75  1* )) 73  5RRI  ))  73   (        1(:522)12772(;&(('(;,67,1*522)5,'*(+(,*+7   )*                      )) 73  5RRI  ))  73  %  *                 1(:522)12772(;&(('(;,67,1*522)5,'*(+(,*+7  )*                      75  75  )) 73  5RRI  ))  73   )   '&            )*  2+$&216758&7,219,$(6&25,$/0,66,219,(-2&$3+(0$,/2]DOPHQGDUH]#JPDLOFRP 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ 3/$1635(3$5('%< 5(9'(6&5,37,21'$7( &/, ( 1 7  6+ ( ( 7  1 $ 0 (                    3 0 $ (; 7 ( 5 , 2 5  ( / ( 9 $ 7 , 2 1 6    & $ 6 7 $ : $ < 6  1 2 5 7 + 1( : 3 2 5 7  % ( $ & +   & $       =$ .  5 ( 6 , ' ( 1 & ( $XWKRU &KHFNHU   )5217(;7(5,25(/(9$7,21  5($5(;7(5,25(/(9$7,21 ,668(   6,'((;7(5,25(/(9$7,21   6,'((;7(5,25(/(9$7,21 (/(9$7,21.(<127(6 1(:%2$5'$1'%$77(1(;7(5,25),1,6+:,1'625(21(%$77(1[3$,17('%(1-$0,10225(:+,7('29(6$7,1),1,6+1(:+25,=217$//$36,',1*3$,17('%(1-$0,10225(:+,7('29(6$7,1),1,6+1(:'2253(56&+('8/(6+((7$1(::,1'2:3(56&+('8/(6+((7$1(:*$5$*('2253(56&+('8/($1(:&/$66$67$1',1*6($00(7$/522)&2/25%/$&.1(:$/80,1805$,1*877(56&2/25%/$&.)$6&,$%2$5'$1'75,03$,17('%(1-$0,10225(6,03/<:+,7(6$7,1),1,6+1(:6721(9(1((50$;7+,&.1(661(::22'&25%(/3$,17('%(1-$0,10225(6,03/<:+,7(6$7,1),1,6+1(:(;7(5,25/('6&21&(1(:&+,01(<&$3:63$5.$55(67251(:&/$66$/,*+7:(,*+7&21&5(7(7,/(522)(DJOH/LWH321'(526$6LHUUD0DGUH                                                                                                      26 From: Jim Mosher <jimmosher@yahoo.com> Sent: May 28, 2025 10:26 AM To: CDD Subject: Comments regarding ZA Item 2 (5/29/2025 meeting) Regarding Zak Residence Modification Permit (PA2025-0051) (Item 2 on the May 29, 2025, Zoning Administrator agenda), Statement of Facts 1.4, on handwritten page 6 (the title page of the proposed resolution) says "The project is exempt from requiring a coastal development permit because it includes an addition located on a property greater than 300 feet from the inland extent of any beach or the mean high tide line of the sea." No citation to the code is provided, and although I do not see any Coastal Act issues with the project, I believe the conclusion that a CDP is not required is erroneous. From its wording, I am guessing the quoted part of Statement 1.4 is based on the exemption to CDP requirements for improvements to "Existing Single-Unit Residential Buildings" found in NBMC Subsection 21.52.035.C.1. However, there is a series of exceptions to the exemption. Of relevance here, the exception in Subsection d.i requires a CDP for a greater than 10% addition to structures on "property that is located between the sea and first public road paralleling the sea, or within three hundred (300) feet of the inland extent of any beach or of the mean high tide of the sea where there is no beach, whichever is the greater distance, or in significant scenic resources areas as designated by the Coastal Commission." This is a three part test, with the tests separated by the "or"'s I have placed in bold, above. The resolution correctly states that the property is more than 300 feet from the closest beach or water, so it passes the middle test. It is also, to the best of my knowledge, not in a significant scenic resources area designated by the Coastal Commission, so it passes the third test. However, it quite definitely is "located between the sea and first public road paralleling the sea," so it fails the first test. Failing any one of the three tests means the project requires a CDP, as I believe this one does. Additionally, because the subject property is within a gated community it is not eligible for the Categorical Exclusion. If there is a provision exempting this project from the CDP requirement, the staff report and resolution should state it, so it can be verified. Yours sincerely, Jim Mosher Zoning Administrator - May 29, 2025 Item No. 2a - Additional Materials Received Zak Residence Modification Permit (PA2025-0051) Community Development Department CITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT DEPARTMENT 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment Memorandum To: Benjamin M. Zdeba, AICP, Zoning Administrator From: Melinda Whelan, Assistant Planner Date: May 28, 2025 Re: Zak Residence (PA2025-0051) This memorandum to the Zoning Administrator is to remove Item No. 2 from the Zoning Administrator Agenda for May 29, 2025. The item will be rescheduled for a future agenda and re-noticed. Zoning Administrator -May 29, 2025 Item No. 2b - Additional Materials Received Zak Residence Modification Permit (PA2025-0051)