CITY COUNCIL AGENDA REPORT Date: September 15, 2015 TO: FROM: BY: Honorable City Council Michael J. Egan, City Manager Kurt H. Anderson, Director of Community Development Jessica Serrano, Senior Planner SUBJECT: PUBLIC HEARING - ADOPTION OF A NEGATIVE DECLARATION; TEXT AMENDMENT NO. 308 A REQUEST TO AMEND THE NORWALK MUNICIPAL CODE TO ESTABLISH REGULATIONS AND ALLOW THE SALE OF ALCOHOL FOR ON-SITE CONSUMPTION AT A MOVIE THEATER AS A CONDITIONALLY PERMITTED USE WITHIN THE SPECIFIC PLAN AREA NO. 1 (SPA NO.1) ZONE; AND CONDITIONAL USE PERMIT NO. 973 A REQUEST TO APPROVE A CONDITIONAL USE PERMIT TO MODIFY THE EXISTING FLOOR PLAN AND ALLOW FOR THE SALE OF ALCOHOL FOR ON-SITE CONSUMPTION AT A MOVIE THEATER Background: The American Multi-Cinema ( AMC ) is proposing to conduct extensive interior renovations to the existing motion picture theater located at 12300 Civic Center Drive ( subject property ) within the Norwalk Entertainment Center in Specific Plan Area No. 1 ( SPA No.1 ) zone. Like many industries, the movie theater industry is experiencing significant changes in consumer demand. Theaters across the country have been testing new business models with the goal of being more competitive in today s marketplace. This proposal is the result of AMC s nationwide strategic business initiative. As part of these renovations, they are proposing to add a bar within the lobby to serve general alcohol for on-site consumption. Victor De la Cruz with Manatt, Phelps & Phillips, LLP on behalf of AMC ( Applicant ) filed Text Amendment (TA) No. 308 to amend the Norwalk Municipal Code to allow the sale of alcohol for on-site consumption at a movie theater as a conditionally permitted use within SPA No.1 and a Conditional Use Permit (CUP) No. 973 to allow the sale of general alcohol for on-site consumption at the existing AMC Theater.
City Council September 15, 2015 Negative Declaration Page No. 2 Text Amendment No. 308 and Conditional Use Permit No. 973 The AMC Theater was approved as part of a conceptual master plan for SPA No. 1 through the approval of CUP No. 661 in 1994. Precise Development Plan (PDP) No. 1540 was approved in 1995 for the construction of a 20 screen motion picture theater. The theater has remained largely the same since it was first built over 20 years ago, except for permits which were issued in 2011 to incorporate an IMAX screen. The Planning Commission reviewed the Applicant s request on August 12, 2015. Staff recommended approval of the project and provided the Planning Commission with resolutions recommending City Council approval. At that meeting, the Planning Commission voted to recommend denial of the project with a 5 to 0 vote. The minute excerpt from that meeting is attached to this report. Within SPA No. 1, the Planning Commission s action is advisory and the City Council s determination is final. Subsequent to the August 12, 2015 Planning Commission meeting, the City Manager, Directors of Community Development and Public Safety, Norwalk Sheriff s Lieutenant, and respective staff, met with the Applicant, and AMC s Director of Alcohol Sales and Director of Security to obtain additional information regarding staffing, operations, and security measures. The AMC representatives expressed a willingness to work with the City to address any issues that may arise with the introduction of alcohol sales at the theater and indicated that AMC has been serving alcohol in their theaters for over 10 years, at approximately 100 locations throughout the country, 15 of which are in California. Based on their experience, alcohol sales at their theaters have not resulted in an increase in the number of incidents of crime or disturbances. The AMC representatives indicated that the existing AMC Theater has an annual attendance of approximately 544,000 persons. Therefore, millions of attendees have gone through the theater since its opening and it is now in need of repairs, renovations, and upgrades. In recent years, there has been an overall decline in movie theater attendance and movie theater chains, including AMC, are providing more amenities to entice audiences to return to the theaters. Since teenage attendance at movie theaters has gone down and the bulk of movie goers are adults, the proposed amenities are aimed at providing a more adult experience at movie theaters. The impetus for the proposed renovations comes from competition from new theaters or existing theaters offering added amenities, including luxury recliners and alcohol sales in the nearby communities of Pico Rivera, Downey, and Bellflower. The AMC representatives indicated that once customers choose to attend other theaters, it is difficult to get them to return. They are intending to complete the construction within 90 days of approval in order to have the renovations completed before the opening of new theaters currently under construction nearby. In an effort to keep up with new technology and to enhance the adult movie going experience, AMC, together with the landlord of the subject property, is proposing to
City Council September 15, 2015 Negative Declaration Page No. 3 Text Amendment No. 308 and Conditional Use Permit No. 973 invest $9 million to conduct a comprehensive interior remodel of the existing theater to update the design and provide upgraded amenities for patrons such as: new luxury recliner seats in the auditoriums, reserved seating, new equipment, a new bar area, an expanded food menu and updated finishes, signage, flooring and lighting throughout the theater. With the installation of the new recliner seats, the seat count is being reduced from 4,273 to 1,843 seats, which is a 57% reduction in seats. Additionally, they will increase their average staffing level from 28 to approximately 63, which is a 125% increase in staff. The following is a list of the improvements that are being proposed to the existing theater: On the exterior, remove existing signage and replace it with new signage on the sides of the building; In the auditoriums, install new recliner seats, signage, doors, hardware, carpet, lighting, handrails, guardrails, and clean and replace tile; At the box office, install new signage and tile; Within the lobby, install new carpet, tile, finishes, signage, lighting and bar area, and patch and paint walls; In the guest services desk, remove existing countertop and finishes and relocate LCD monitors with times and titles to this area and provide new equipment and signage; In the corridors, replace the carpet and finishes, install new signage, relocate existing illuminated poster cases, and patch and paint walls; In the concession area, replace existing equipment, menu boards, tile finishes, walls, and signage and install new walls, doors, hardware, countertops, menu boards, equipment, tile, carpet, lighting, and patch and paint walls; Restrooms are going to be updated to include new signage, tile, decorative mosaic tile behind lavatories, countertops, individual mirrors with wood frames, automatic soap dispensers, paper towel dispensers, waste receptacles, hand dryers, baby changing stations, urinal screens, toilet accessories, lighting, and patch and paint walls. According to AMC, they have been doing renovations at their existing theaters throughout the country and have found that the enhancements have increased their attendance and sales, even with the reduction of seats, and they expect similar increases at this location after the renovations are completed. AMC indicated that the additional food and beverage sales will help offset the cost of the renovations, reduction in seating, and added staff.
City Council September 15, 2015 Negative Declaration Page No. 4 Text Amendment No. 308 and Conditional Use Permit No. 973 After the meetings with AMC representative, Captain Curtis Jensen, from the Norwalk Sheriff s Station, provided a memo to the City Manager indicating that although they had previously recommended that additional security be provided as part of the CUP, they do not see a need to increase security in light of the information that was presented by AMC s Director of Security. Additionally, the Captain conducted research as it pertains to problems, disturbances, or increases in crime at theaters which serve alcohol and he did not find any data which supports any negative impact. The memo has been attached to this report. A CUP is required for the establishment of all uses with SPA No. 1. In addition, Section 17.02.210 of the NMC requires that the Planning Commission impose conditions as deemed necessary on a CUP to protect the best interest of the surrounding properties and to ensure compliance with the General Plan. Since alcohol sales within a motion picture theater are not permitted in SPA No. 1, a Text Amendment application was submitted per NMC Section 17.02.260.B to amend the language in SPA No. 1 to allow this use. Pursuant to Section 17.09.160, revisions to SPA No. 1 are authorized per the Text Amendment process contained in Section 17.02.260. Text Amendment: The proposed TA is necessary because, under the permitted uses listed in Section 17.09.110 and prohibited uses listed in Section 17.09.120 in SPA No. 1, bars and lounges are only allowed within a bona fide restaurant and hotel. The Applicant is proposing to establish a bar area within the existing AMC Theater, which is not expressly permitted within SPA No. 1. Currently, bars and cocktail lounges may only be permitted with a CUP at a bona fide restaurant and within a hotel. Although the Applicant is pursuing a Type 47 (sale of general alcohol for on-site consumption) which is the same type of alcohol license typically used by restaurants, a motion picture theater does not serve meals with the same mode of operation as defined in the NMC as a bona fide restaurant. A Type 47 alcohol license includes the on-site sale of beer, wine, liquor, or distilled spirits. The language in italics below is the amended language contained in Ordinance No. 15- XXXX. Please note that the language in bold represents added language and language with strikeouts represents deleted language: 17.09.110 Permitted uses. On-sale alcoholic beverage establishments Bars and cocktail lounges provided such uses are part of a bona fide eating place, or conducted within a hotel or motion picture theater, subject to the requirements of
City Council September 15, 2015 Negative Declaration Page No. 5 Text Amendment No. 308 and Conditional Use Permit No. 973 Section 17.04.140, except subsection (E)(1)(distance requirement) of that section shall not apply, 17.09.120 Prohibited uses. Off-sale alcoholic beverage establishments On-sale alcoholic beverage establishments Bars and cocktail lounges which are not part of a bona fide eating place, or conducted within a hotel or motion picture theater; The proposed language will make the following changes: 1. Revises the permitted uses and prohibited uses in SPA No. 1 to allow on-sale alcoholic beverage establishments at a motion picture theater. 2. Off-sale alcoholic beverage establishments and On-sale alcoholic beverage establishments were used in place of bars and cocktail lounges to be consistent with the language contained in Section 17.04.140, Alcoholic beverage establishments. 3. Indicates that on-sale alcoholic beverage establishments at a bona fide restaurant, hotel, or motion picture theater are subject to the requirements of Section 17.04.140, Alcoholic beverage establishments, but excludes these establishments from having to comply with distance requirements between onsale alcoholic beverage establishments and residential uses and other consideration points. According to Section 17.04.140.E.1, on-sale alcoholic beverage establishments must be a minimum of 300-feet from specific consideration points such as, residential uses, schools, churches, clinics, etc. Further discussion of this requirement as it relates to the AMC Theater is discussed below. Conditional Use Permit: 1. Operations The AMC Theater is proposing to sell general alcohol for on-site consumption with a Type 47, On Sale General Eating Place, alcohol license. A Type 47 alcohol license allows for general alcohol sales in establishments where there are substantial sales of meals for on-site consumption. The State Department of Alcoholic Beverage Control (ABC) has issued other AMC Theaters a Type 47 alcohol license. In conjunction with this request, AMC is also proposing to expand their food options. A sample menu has been included for City Council s review.
City Council September 15, 2015 Negative Declaration Page No. 6 Text Amendment No. 308 and Conditional Use Permit No. 973 As shown on the floor plan, the Applicant is proposing to add a MacGuffins branded bar area with bar seating within the lobby, in addition to overall renovations to the theater. The new bar area will contain six stools and will cover an approximately 252 square foot area in the lobby area. With the proposed alcohol sales, the average number of staff members will increase from 28 to approximately 63. AMC is proposing to have alcohol sales between 10:30 a.m. and 1:30 a.m. The proposed alcohol sales will be incidental and complementary to the concession sales at the theater and will only be sold to patrons of the theater who have purchased movie tickets. Patrons will be able to order their beverages and either consume them while seated at the bar, lobby, or while in the auditoriums. No service of alcohol or food will be provided within the auditoriums. The Applicant has provided a description of the various operational alcohol policies proposed with the sale of alcohol in the attached narrative, which are outlined as follows: Associates must check proof of age from all guests purchasing alcohol, regardless of age; Patrons with an alcoholic beverage, who appear to be under the age of 21 will be required to show proof of age; If minors are caught with an alcoholic beverage, law enforcement will be called; Alcoholic beverages will be served in distinctive cups to differentiate from cups containing non-alcoholic beverages; Sixteen ounce cups will be used for beer and cocktails and 10 ounce cups will be used for wine. The amount of alcohol relative to the non-alcoholic cocktail mix significantly reduces the risk of intoxication; Every employee will undergo Training for Intervention Procedures (TIPS), which is a program for alcohol servers. Therefore, all employees will be responsible for supervising the consumption of alcohol throughout the theater; A mystery shopper program, conducted by an outside firm, will be utilized to ensure that AMC employees are following company alcohol control policies. Employees who are found to violate the policies will be terminated; AMC security personnel or staff will monitor the auditoriums every 30 minutes. Every employee who monitors the auditoriums is required to undergo TIPS training which provides them with the skills necessary to deal with underage drinking or inappropriate behavior; A manager will be responsible for overseeing bar operations whenever the MacGuffins bar is open. No non-alcoholic beverages will be sold at the bar; Specific measures will be taken if there is an intoxicated guest which include: guest is removed from auditorium; guest is asked to not leave the building; guest
City Council September 15, 2015 Negative Declaration Page No. 7 Text Amendment No. 308 and Conditional Use Permit No. 973 will be given food and water to diffuse the situation; alternative arrangements will be made for the guest to get home; guest s location will be monitored; and law enforcement will be called if the guest insists on leaving; As part of the alcohol license issued by ABC, the following conditions are typically included: o All sales and service of alcohol for consumption shall be made only from concession stands, portable stands or bars, or fixed bars, and shall not be delivered to customers. o No more than 2 alcoholic beverages shall be sold or served to any 1 person during any transaction. AMC s policy is stricter in that each patron may only purchase 1 alcoholic beverage during any transaction. Additionally, security officers are currently present during the following days and times: Friday: 1 security officer from 6:00 p.m. to 1:00 a.m. Saturday: 1 security officer from 3:00 p.m. to 11:00 p.m.; 1 security officer from 7:00 p.m. to 3:00 a.m. Sunday: 1 security officer from 2:00 p.m. to 10:00 p.m. 2. Proximity to Residential Properties According to Section 17.04.140.E.1, on-sale alcoholic beverage establishments must be a minimum of 300-feet from specific consideration points such as, residential uses, schools, churches, clinics, etc. The distance to the nearest residential property located to the east, which is developed with a condominium complex, from the rear exit of the AMC Theater, along the nearest path of travel is approximately 120-feet. The main entrance/exit into the AMC Theater is approximately 400-feet from the property line of the adjacent condominium complex. The distance from the rear exit does not satisfy the requirement that on-sale alcoholic beverage establishments must be a minimum of 300- feet from specific consideration points such as, residential uses. With the proposed, the AMC Theater, in addition to on-sale alcoholic beverage establishments within a bona fide restaurant and hotel, will be exempt from this distance requirement. Staff had previously prepared conditions of approval for CUP No. 973 to mitigate potential impacts onto the adjacent residential uses. After the meetings with AMC representatives, Captain Jensen from the Norwalk Sheriff s Station indicated that the existing level of security was found to be acceptable. Therefore, condition g below was modified to no longer request additional security. Below is the list of safety related conditions of approval, which have been included in the attached resolution:
City Council September 15, 2015 Negative Declaration Page No. 8 Text Amendment No. 308 and Conditional Use Permit No. 973 a. Sales of alcohol shall not be permitted between the hours of 1:30 a.m. and 10:30 a.m. Monday through Sunday. Ticketed theater guests may only purchase alcohol during the hours for alcohol sales allowed on the day they purchased their ticket. b. Gross monthly sales of alcohol shall not exceed gross monthly sales of food and other non-alcohol items within the same period. c. Sales and service of alcohol shall not be permitted in any theater or auditorium area, hallway, or from any concession stand, fixed or mobile, that sells nonalcohol items. d. No more than two (2) alcoholic beverages shall be sold or served to any one (1) person during any transaction. e. All alcoholic beverages shall be served in a plastic cup that is significantly different than containers used to serve non-alcoholic beverages. Containers for alcoholic beverages shall not exceed 16 ounces. f. Applicant is required to conduct a visual inspection and monitor activity of each theater auditorium no less than every 30 minutes. g. Original Condition: A minimum of one (1) security guard shall be on duty 10:30 a.m. to 3:00 a.m. Monday through Sunday. A minimum of three (3) security guards shall be on duty 7:00 p.m. to 3:00 a.m. Thursday through Saturday. The city may require additional security guards or law enforcement officers be hired for any special engagement, premiere, or other special event that is likely to increase the number of patrons. Revised Condition: If, at any time, the number of security-related incidents increases, the City of Norwalk may require additional management and/or security personnel at the Applicant s expense during such hours and in such number as are deemed necessary by the City. h. All employees are to complete a Responsible Beverage Server training course approved by the California Department of Alcohol Beverage Control and City of Norwalk, Department of Public Safety within six months of approval of Conditional Use Permit No. 973 or an employee s start date, whichever occurs later. i. A surveillance camera plan shall be submitted to the Public Safety and Community Development Departments for review and approval prior to the sale of alcoholic beverages. The plan shall contain the following elements: 1. Provision of access to the surveillance system by the Norwalk Sheriff s Station; 2. Provision of any required software, licenses, user ID s or passwords to the Norwalk Sheriff s Station; 3. Video feed of sufficient quality to permit the Sheriff s Station to utilize the feed for law enforcement purposes, whether emergency or investigatory;
City Council September 15, 2015 Negative Declaration Page No. 9 Text Amendment No. 308 and Conditional Use Permit No. 973 4. Camera Surveillance System to be maintained at all times, including during non-business hours; 5. Establishment of a minimum maintenance period for all video recordings/feeds; 6. Provision of copies of recorded videos at the request of the Norwalk Sheriff s Station without a warrant or court order; 7. The placement of cameras within the facility to provide coverage of public areas; and 8. Other elements at the direction of the Director of Public Safety. j. The business shall participate in the Department of Public Safety s Business Watch program. k. Business owner/employees must refrain from engaging in business transactions with those individuals loitering and/or panhandling, so as to discourage them from frequenting the area. Additionally, the Applicant had previously submitted revisions to Public Safety s recommended conditions regarding the required surveillance system for CUP No. 973. The Public Safety Department found the revisions to be acceptable. Therefore, the attached conditions of approval incorporate the Applicant s changes as follows: 3. Concentration of Alcoholic Beverage Establishments The subject property is located in Census Tract No. 5523.01. ABC recommends that not more than four on-sale alcoholic beverage licenses should be permitted in the theater s Census Tract. Based on the information provided by ABC, Census Tract No. 5523.01 is considered to be under-concentrated since there are currently two existing on-sale alcoholic beverage licenses issued within the same Census Tract. The following is a table listing the two other existing off-sale alcoholic beverage establishments within Census Tract No. 5523.01: Existing establishments within Census Tract No. 5546 Business Name Address License Type Outback Steakhouse* 12850 Norwalk Blvd 47 (General Alcohol) Doubletree Hotel* 13111 Sycamore Dr 47 (General Alcohol) *These establishments are within the same commercial center. Should City Council approve the Applicant s request, the total number of establishments within the census tract with licenses for the on-site sale of alcohol will be three, which is below the maximum of four recommended by ABC.
City Council September 15, 2015 Negative Declaration Page No. 10 Text Amendment No. 308 and Conditional Use Permit No. 973 In addition to the concentration of on-sale alcohol sales establishments within the same census tract, there are a total of six existing establishments within ¼ mile radius which offer the sale of alcohol for on-site consumption. Existing establishments within a quarter mile Business Name Address License Type Outback Steakhouse* 12850 Norwalk Blvd 47 (General Alcohol) Doubletree Hotel* 13111 Sycamore Dr 47 (General Alcohol) Kung Pao Bowl 12331 Imperial Hwy 41 (Beer and Wine) El Taco Loco 12341 Imperial Hwy 41 (Beer and Wine) So Cal Pizza 12253 Imperial Hwy 47 (General Alcohol) Applebee s 12129 Norwalk Blvd 47 (General Alcohol) *These establishments are within the same commercial center. Although there are two other establishments in the same commercial center in which the theater is located and a total of six other establishments within a quarter-mile radius which sell alcohol for on-site consumption, the census tract in which the theater is located is not over concentrated. The proposed alcohol sales at the theater will not be excessive for the surrounding neighborhood. 4. Neighborhood Crime Statistics The subject property is located within the Los Angeles County Sheriff s Department Reporting District No. 454. According to a report issued by ABC, the number of offenses in the Reporting District is 1,092, which is above the average of 316.1 for the City of Norwalk. Since a high crime district is any area with 20% above average (379.4) Part I crime rate, the reporting district in which the theater is located is considered to be a high-crime reporting district. There are 16 Reporting Districts within the City of Norwalk. It should be noted that 6 of the Reporting Districts are specific County Facilities, while the seventh and eighth are the Metropolitan State Hospital and Cerritos College.
City Council September 15, 2015 Negative Declaration Page No. 11 Text Amendment No. 308 and Conditional Use Permit No. 973 Conclusion: Attached to this report are two resolutions to deny Text Amendment No. 308 and Conditional Use Permit No. 973, respectively, as recommended by the Planning Commission. Should City Council determine that the request merits approval, an ordinance has been prepared and may be introduced for first reading to approve Text Amendment No. 308 and the prepared resolution may be adopted for approval of Conditional Use Permit No. 973. Please note that the attached conditions of approval incorporate changes in regard to security levels and surveillance equipment. Fiscal Impact: N/A Citizens Advised: Notice of this public hearing was posted at the three designated City posting places and published in the Los Cerritos Community Newspaper on September 4, 2015. The public comment period on the Negative Declaration began on July 10, 2015 and ended on July 29, 2015. Strategic Action Plan Implementation: N/A Recommended Action: The Planning Commission recommends City Council consider: a. adopting Resolution No. 15-XX denying Text Amendment No. 308; and b. adopting Resolution No. 15-XX denying Conditional Use Permit No. 973. Please note that a CEQA determination is not required for a project which is denied. Alternatively, City Council may consider: a. adopting the Initial Study and Negative Declaration prepared for Text Amendment No. 308 and Conditional Use Permit No. 973; b. introducing Ordinance No. 15-XXXX approving Text Amendment No. 308 by title only and waiving further reading; and c. adopting Resolution No. 15-XX approving Conditional Use Permit No. 973. Attachments: 1. Resolution No. 15-XX denying Text Amendment No. 308 2. Resolution No. 15-XX denying Conditional Use Permit No. 973 3. Ordinance No. 15-XXXX approving Text Amendment No. 308
City Council September 15, 2015 Negative Declaration Page No. 12 Text Amendment No. 308 and Conditional Use Permit No. 973 4. Resolution No. 15-XX approving Conditional Use Permit No. 973, including Exhibit A 5. Location and Zoning map 6. On-Sale Alcohol Licenses within Census Tract Map 7. Quarter-mile Radius Map 8. Sheriff s Department Memorandum, dated August 25, 2015 9. Public Safety Memorandum, dated August 6, 2015 10. Norwalk Municipal Code - Title 17 Zoning Specific Plan Area No. 1 11. Sample menu and Applicant s Narrative 12. Planning Commission Agenda Report, dated August 12, 2015 with resolutions of approval only 13. Planning Commission meeting minute excerpt, dated August 12, 2015 14. Negative Declaration and Initial Study prepared for Text Amendment No. 308 and Conditional Use Permit No. 973
RESOLUTION NO. 15-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK DENYING TEXT AMENDMENT NO. 308 WHEREAS, the City Council has received Text Amendment (TA) No. 308, a request from Victor De la Cruz with Manatt, Phelps & Phillips, LLP for American Multi- Cinema (AMC) ( Applicant ), 12300 Civic Center Drive; to modify the existing floor plan and allow for the sale of alcohol for on-site consumption at a motion picture theater; and WHEREAS, TA No. 308 was submitted in conjunction with Conditional Use Permit (CUP) No. 973; and WHEREAS, Section 17.02.260.B of the Norwalk Municipal Code (NMC) authorizes the City Council or Planning Commission to initiate an amendment to the Norwalk Zoning Ordinance for purpose of imposing, modifying or removing a regulation or development standard; and WHEREAS, Section 17.02.260.C of the NMC authorizes the Planning Commission to hold at least one public hearing upon the initiation of a Zoning Ordinance Text Amendment; and WHEREAS, Section 17.02.260.D of the NMC stipulates that the Planning Commission render its recommendation on a Zoning Ordinance Text Amendment, including the reasons for the recommendation, to the City Council; and WHEREAS, Section 17.02.260.F of the NMC stipulates that the decision of the Planning Commission recommending approval or denial of a Text Amendment shall be automatically reviewed by the City Council at a public hearing; and WHEREAS, Section 17.02.260.I of the NMC stipulates that the City Council may approve, modify or disapprove the recommendation of the Planning Commission; and WHEREAS, Section 17.09.160 of the NMC authorizes revisions to SPA No. 1 per the Text Amendment process contained in Section 17.02.260; and WHEREAS, a Negative Declaration has been prepared for the project pursuant to the requirements of the California Environmental Quality Act (CEQA) and as adopted in the City's 1998 local CEQA guidelines to ensure that all potentially significant, adverse, environmental impacts associated with the project will be reduced to a level of "less than significant" or "no impact;" and WHEREAS, on July 22, 2015, the Planning Commission continued the public hearing for TA No. 308 to the meeting of August 12, 2015; and
WHEREAS, TA No. 308 has been reviewed by the Planning Commission on August 12, 2015 at which time oral and documentary evidence relative to the application was received and the Planning Commission recommended City Council denial of the project with a 5-0 vote; WHEREAS, TA No. 308 has been reviewed by the City Council on September 15, 2015 at which time oral and documentary evidence relative to the application was received. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS: Section 1. This proposed Text Amendment revises the permitted uses and prohibited uses in SPA No. 1 to allow on-sale alcoholic beverage establishments at a motion picture theater as conditionally permitted uses. Section 17.02.210.M provides that a conditional use permit may be granted if it is consistent with the purpose and intent of Title 17 and the general plan and would serve the public convenience and welfare. The City Council, however, cannot make one of the required findings, namely that the use would serve the public convenience and welfare. The sale of alcohol for on-site consumption at a motion picture theater may pose impacts on the surrounding area considering there are residential uses approximately 400-feet away from the theater and may increase the number of crime incidents within the vicinity. Therefore, the City Council is unable to make the finding that the proposed use will serve the public convenience and welfare. Section 2. The Norwalk City Council hereby denies TA No. 308. APPROVED AND ADOPTED on this 15 th day of September 2015. ATTEST: LEONARD SHRYOCK MAYOR THERESA DEVOY, CMC CITY CLERK Resolution No. 15-XX Page 2 of 2
RESOLUTION NO. 15-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK DENYING CONDITIONAL USE PERMIT NO. 973 WHEREAS, the City Council has received Conditional Use Permit (CUP) No. 973, a request from Victor De la Cruz with Manatt, Phelps & Phillips, LLP for American Multi-Cinema (AMC) ( Applicant ), 12300 Civic Center Drive; to modify the existing floor plan and allow for the sale of alcohol for on-site consumption at a motion picture theater; and WHEREAS, Text Amendment (TA) No. 308 was submitted in conjunction with CUP No. 973; and WHEREAS, the purpose and intent of requiring a CUP is to ensure that compatibility is maintained between a conditional use on a specific site and other existing and future land uses on the adjacent and surrounding properties; and WHEREAS, Section 17.02.210 of the Norwalk Municipal Code (NMC) requires that the Planning Commission impose conditions as deemed necessary on CUP entitlements to protect the best interest of the surrounding properties and to ensure compliance with the General Plan; and WHEREAS, Section 17.02.210.B of the NMC sets forth the required findings that the Planning Commission must make prior to approval of a CUP; and WHEREAS, Section of 17.04.140 the NMC requires the review and approval of a CUP by the Planning Commission for the sale of alcohol for on-site consumption; and WHEREAS, Section 17.09.100.A of the NMC requires that a CUP is required for the establishment of any use within SPA No. 1; and WHEREAS, Section 17.09.100.B.1 of the NMC states that the Planning Commission shall act as a recommending body and the City Council shall conduct a public hearing and assume the decision making responsibility for all CUP s within SPA No. 1; and WHEREAS, a Negative Declaration has been prepared for the project pursuant to the requirements of the California Environmental Quality Act (CEQA) and as adopted in the City's 1998 local CEQA guidelines to ensure that all potentially significant, adverse, environmental impacts associated with the project will be reduced to a level of "less than significant" or "no impact;" and WHEREAS, on July 22, 2015, the Planning Commission continued the public hearing for CUP No. 973 to the meeting of August 12, 2015; and
WHEREAS, CUP No. 973 has been reviewed by the Planning Commission on August 12, 2015 at which time oral and documentary evidence relative to the application was received and the Planning Commission recommended City Council denial of the project with a 5-0 vote; WHEREAS, CUP No. 973 has been reviewed by the City Council on September 15, 2015 at which time oral and documentary evidence relative to the application was received. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS: Section 1. Section 17.02.210.M provides that a conditional use permit may be granted if it is consistent with the purpose and intent of Title 17 and the general plan and would serve the public convenience and welfare. The City Council, however, cannot make one of the required findings, namely that the use would serve the public convenience and welfare. The sale of alcohol for on-site consumption at a motion picture theater may pose impacts on the surrounding area considering there are residential uses approximately 400-feet away from the theater and may increase the number of crime incidents within the vicinity. Therefore, the City Council is unable to make the finding that the proposed use will serve the public convenience and welfare. Section 2. The Norwalk City Council hereby denies CUP No. 973. APPROVED AND ADOPTED on this 15 th day of September 2015. ATTEST: LEONARD SHRYOCK MAYOR THERESA DEVOY, CMC CITY CLERK Resolution No. 15-XX Page 2 of 2
ORDINANCE NO. 15-XXXX AN ORDINANCE OF THE CITY OF NORWALK AMENDING THE NORWALK MUNICIPAL AS IT RELATES TO ALCOHOL SERVED IN MOTION PICTURE THEATERS AND CONDITIONAL USE PERMIT REQUIREMENTS WITHIN THE SPECIFIC PLAN AREA NO. 1 THE CITY COUNCIL OF THE CITY OF NORWALK DOES ORDAIN AS FOLLOWS: Section 1. Section 17.09.110.A.4 is amended to read as follows: 4. Accessory Commercial: On-sale alcoholic beverage establishments provided such uses are part of a bona fide eating place, or conducted within a hotel or motion picture theater, subject to the requirements of Section 17.04.140, except subsection (E)(1)(distance requirement) of that section shall not apply, Delicatessens, Motion picture theaters, excluding drive-in theaters, Museums, Restaurants; Section 2. Section 17.09.120 is amended to read as follows: 17.09.120 Prohibited uses. All uses are prohibited unless provided for and authorized under the specific plan area. Under no circumstances shall the following uses or activities be permitted either as a principal or accessory use: Adult-oriented businesses including books stores, drive-in theaters, indoor theaters, and massage parlors; Automobile parts and accessories, except as an accessory use to a permitted principal use; Automobile repair and service; Bail bonds office; Off-sale alcoholic beverage establishments; On-sale alcoholic beverage establishments which are not part of a bona fide eating place, or conducted within a hotel or motion picture theater; Billboards; Billiard parlor; Christmas tree sales lots; Churches, synagogues, temples and other buildings primarily devoted to religious worship;
Educational institutions; Fireworks sales stands; Game arcade (as a principal use); Gasoline stations; Home occupations, except for office use only, subject to the requirements of Section 17.02.150; Hospitals, sanitariums, child care centers, homes for the aged and other similar uses; Ice sales (from dispensers); Industrial and manufacturing uses; Laundry business; Laundry, self-service; Mobilehome and trailer parks; Outdoor sales establishments; Pawnshops. Section 3. Severability. If any section, clause or phrase of this Ordinance is for any reason held to be unconstitutional, or otherwise invalid, such decision shall not affect the validity of the remaining sections of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared unconstitutional. Section 4. Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance to be published or posted as required by law. PASSED, APPROVED and ADOPTED this day of 2015. ATTEST: LEONARD SHRYOCK MAYOR THERESA DEVOY, CMC CITY CLERK Ordinance No. 15-XXXX Page 2 of 2
RESOLUTION NO. 15-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK APPROVING CONDITIONAL USE PERMIT NO. 973 WHEREAS, the City Council has received Conditional Use Permit (CUP) No. 973, a request from Victor De la Cruz with Manatt, Phelps & Phillips, LLP for American Multi-Cinema (AMC) ( Applicant ), 12300 Civic Center Drive; to modify the existing floor plan and allow for the sale of alcohol for on-site consumption at a motion picture theater; and WHEREAS, Text Amendment (TA) No. 308 was submitted in conjunction with CUP No. 973; and WHEREAS, the purpose and intent of requiring a CUP is to ensure that compatibility is maintained between a conditional use on a specific site and other existing and future land uses on the adjacent and surrounding properties; and WHEREAS, Section 17.02.210 of the Norwalk Municipal Code (NMC) requires that the Planning Commission impose conditions as deemed necessary on CUP entitlements to protect the best interest of the surrounding properties and to ensure compliance with the General Plan; and WHEREAS, Section 17.02.210.B of the NMC sets forth the required findings that the Planning Commission must make prior to approval of a CUP; and WHEREAS, Section of 17.04.140 the NMC requires the review and approval of a CUP by the Planning Commission for the sale of alcohol for on-site consumption; and WHEREAS, Section 17.09.100.A of the NMC requires that a CUP is required for the establishment of any use within SPA No. 1; and WHEREAS, Section 17.09.100.B.1 of the NMC states that the Planning Commission shall act as a recommending body and the City Council shall conduct a public hearing and assume the decision making responsibility for all CUP s within SPA No. 1; and WHEREAS, a Negative Declaration has been prepared for the project pursuant to the requirements of the California Environmental Quality Act (CEQA) and as adopted in the City's 1998 local CEQA guidelines to ensure that all potentially significant, adverse, environmental impacts associated with the project will be reduced to a level of "less than significant" or "no impact;" and WHEREAS, on July 22, 2015, the Planning Commission continued the public hearing for CUP No. 973 to the meeting of August 12, 2015; and
WHEREAS, CUP No. 973 has been reviewed by the Planning Commission on August 12, 2015 at which time oral and documentary evidence relative to the application was received and the Planning Commission recommended City Council denial of the project with a 5-0 vote; WHEREAS, CUP No. 973 has been reviewed by the City Council on September 15, 2015 at which time oral and documentary evidence relative to the application was received. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS: Section 1. The degree of compatibility required by the Zoning Ordinance will be maintained with respect to the use of the site, giving consideration to other existing and potential uses within the general area. The sale of alcohol for on-site consumption at a motion picture theater will not pose any impacts on the surrounding area with the recommended conditions and approval of the proposed Text Amendment because the conditions restrict the mode of operation and hours of sale of alcohol. The Applicant is also required to adhere to the Department of Public Safety s Business Watch program. Section 2. The subject property is located in the Specific Plan Area No. 1 (SPA No. 1) zone and the sale of alcohol for on-site consumption at a motion picture theater will be a conditionally permitted use in such zone with the approval of Text Amendment No. 308. The proposed use is in accordance with the Norwalk General Plan in that the sale of alcohol for on-site consumption at a motion picture theater will be in compliance with the performance standards required for its zoning classification and is consistent with the goals of the City s General Plan with the recommended conditions. Section 3. The proposed use will meet all of the requirements of Section 17.04.140 of the Norwalk Municipal Code, as it relates to the requirements for the onsite sale and consumption of alcohol only, with the adoption of the suggested conditions of approval for CUP No. 973 contained in Exhibit A. Section 4. The proposed on-sale alcoholic beverage establishment within the motion picture theater promote the objectives, policies, standards; regulations, purpose and intent provided for in SPA No. 1, which indicate that the intent is to establish a pattern for the appropriate design of buildings and land uses to achieve a functionally and visually integrated development. The proposed use within the existing motion picture theater will continue to achieve the purpose and intent stated in SPA No. 1 in that safety measures have been incorporated into the conditions of approval to ensure that negligible impacts are experienced by surrounding uses. Section 5. Given that AMC Theater is a major tenant at the Norwalk Entertainment Center, the proposed alcohol sales will preserve the special identity of the area since the use will remain relatively the same and the alcohol sales will be Resolution No. 15-XX Page 2 of 8
incidental to the motion picture theater. The motion picture theater will continue be functionally located and integrated with respect to other uses within this specific plan area. Additionally, sufficient evidence will be provided to assure that no unmitigated adverse environmental effects caused by odor, noise, glare, traffic, vibrations, fumes, smoke, particulate matter or unsafe storage of hazardous materials will occur, with the recommended conditions of approval. Section 6. The Norwalk City Council hereby approves CUP No. 973 subject to the conditions contained in attached Exhibit "A". APPROVED AND ADOPTED on this 15 th day of September 2015. ATTEST: LEONARD SHRYOCK MAYOR THERESA DEVOY, CMC CITY CLERK Resolution No. 15-XX Page 3 of 8
EXHIBIT "A" CONDITIONS OF APPROVAL CONDITIONAL USE PERMIT NO. 973 The following Conditions of Approval shall be complied with prior to the sale of general alcohol for on-premise consumption: A. Standard Conditions of Approval 1. Conditional Use Permit No. 973 is approved for the sale of alcohol for on-site consumption (i.e., a Type 47 Alcoholic Beverage Control license) at 12300 Civic Center Drive. 2. Approval of this Conditional Use Permit shall not become final and effective until the ten (10) calendar day appeal period has lapsed. 3. Approval of this Conditional Use Permit shall be valid for one (1) year from the date of final approval and shall become null and void unless the use has been established within this time period or an extension of time is granted pursuant to a written request received prior to the expiration date. The Director of Community Development may grant two (2) one-year extensions. The Planning Commission may grant a final one-year extension. Prior to the granting of the final extension request, notice shall be given in the same manner as required for the original application. 4. The Planning Commission reserves the right to hold a public hearing to consider the revocation of this permit, or the imposition of additional conditions, if the Commission determines that such action is warranted. 5. Conditional Use Permit No. 973 shall be subject to revocation in the manner provided by Section 17.02.210 of the NMC if any of the conditions of approval listed herein are not complied with at any time. 6. The approved use shall be in substantial conformance with the application as described in the Agenda Report to the Planning Commission and as approved by the Planning Commission. The Director of Community Development shall determine whether a modification is in substantial conformance. 7. Any change in the approved alcoholic beverage licensure type (i.e., Type 47, on-premise general alcohol) for this site shall require the prior review and approval of a new Conditional Use Permit by the Planning Commission. 8. A copy of the conditions of approval for Conditional Use Permit No. 973 shall be kept on the premises of the establishment at all times and shall be presented to any peace officer or any authorized City official upon request. Resolution No. 15-XX Page 4 of 8
9. The applicant shall be in strict compliance (at all times) with Section 17.04.140 (Alcoholic Beverage Establishments) of the Norwalk Municipal Code to the satisfaction of the Director of Community Development. 10. Should any conflict arise between these conditions of approval and any City, County, State and/or Federal requirements, the more restrictive requirement(s) shall apply in all cases. 11. The applicant shall comply with all applicable provisions of the Norwalk Municipal Code (at all times) to the satisfaction of the Director of Community Development. 12. Compliance with all conditions of approval specified herein shall be accomplished prior the commencement of any alcohol sales. 13. There shall be no exterior advertising of any kind or type, including advertising directed to exterior from within, promoting or indicating the availability of alcoholic beverages. 14. No outdoor dining areas may be established without the filing of a Precise Development Plan and review and approval by the Planning Commission. 15. The sale of alcohol for consumption off the premises is prohibited. 16. The premises shall be maintained as a motion picture theater and shall provide a menu containing an assortment of food as offered in such theaters. 17. No employee or agent shall solicit or accept any alcoholic or non-alcoholic beverage from any customer while in the premises. 18. No pay phone will be maintained on the interior or exterior of the premises or subject property. 19. The rear doors of the premises shall be equipped on the inside with an automatic locking device and shall be closed at all times, and shall not be used as a means of access by patrons to the licensed premises. A secondary means of egress as required by the building code, shall be maintained unobstructed at all times. Temporary use of these doors for delivery of supplies does not constitute a violation. Further, the doors and associated locking hardware shall comply with all building code requirements. 20. The licensee/petitioner shall not maintain or construct any type of enclosed room intended for use by patrons or customers for any purpose. Resolution No. 15-XX Page 5 of 8
21. Prohibited signs, including A-frame, vehicle supported, and roof signs shall not be placed on the property. Permits for banners and pennants shall be obtained from the Community Development Department prior to installation. 22. All improvements on the property will be continuously maintained, including repairs to structures and replacement of dead or diseased plant material. 23. Exterior storage of any kind shall be prohibited. 24. Litter and trash receptacles shall be located at convenient locations inside and outside of the establishment. All areas under control of the licensee shall be swept or cleaned, either mechanically or manually, on a regular basis to control trash and debris. No Littering signs shall be posted on the subject property. 25. The subject property and area under applicant/property owner s control shall be regularly monitored in an effort to prevent the loitering of persons about the premises. 26. The licensee/petitioner shall post and maintain a professional quality sign facing the premises parking lot that reads as follows: NO LOITERING, NO LITTERING. NO DRINKING OF ALCOHOLIC BEVERAGES. 27. Any graffiti painted or marked upon the premises shall be removed or painted over to match the color of the surface to which it is applied within 24 hours of the discovery thereof. 28. Applicant will cooperate with the prosecution of offenders who engage in unlawful activity on-site. 29. Any change to the exterior color of the building shall be approved by the Community Development Director, or his designee, prior to painting. 30. No alcohol may be sold or served outside the building. 31. The owner, manager, or person in charge of the establishment shall be 21 years or older. At least one (1) such person shall be present on the premises at all times. No person under the age of 18 shall sell alcoholic beverages. 32. Gross monthly sales of alcohol shall not exceed gross monthly sales of food and other non-alcohol items within the same period. 33. The Applicant shall indemnify, defend and hold harmless the City of Norwalk, its officers, agents, employees, and volunteers (collectively, the City ) from any and all claims, lawsuits or actions arising from the granting of, or the exercise of the rights permitted by this approval, or any other related land use entitlement or Resolution No. 15-XX Page 6 of 8
approval granted by the City, and from any and all claims or losses occurring or resulting to any person, firm, corporation or property for damage, injury, or death arising out of, or connected in anyway, with the use permitted by the City on the property. Applicant s obligation to indemnify, defend, and hold harmless the City shall include, but not be limited to, paying all legal fees and costs incurred by legal counsel of the City s choice, including expert witness fees, in representing the City in connection with any such claims, losses, lawsuits or actions, and any award of damages, judgments, verdicts, court costs or attorney s fees in any such lawsuit or action. B. Project Specific Conditions of Approval 1. Sales of alcohol shall not be permitted between the hours of 1:30 a.m. and 10:30 a.m. Monday through Sunday. Ticketed theater guests may only purchase alcohol during the hours for alcohol sales allowed on the day they purchased their ticket. 2. Gross monthly sales of alcohol shall not exceed gross monthly sales of food and other non-alcohol items within the same period. 3. Sales and service of alcohol shall not be permitted in any theater or auditorium area, hallway, or from any concession stand, fixed or mobile, that sells nonalcohol items. 4. No more than two (2) alcoholic beverages shall be sold or served to any one (1) person during any transaction. 5. All alcoholic beverages shall be served in a plastic cup that is significantly different than containers used to serve non-alcoholic beverages. Containers for alcoholic beverages shall not exceed 16 ounces. 6. Applicant is required to conduct a visual inspection and monitor activity of each theater auditorium no less than every 30 minutes. 7. If, at any time, the number of security-related incidents increases, the City of Norwalk may require additional management and/or security personnel at the applicant s expense during such hours and in such number as are deemed necessary by the City. 8. All employees are to complete a Responsible Beverage Server training course approved by the California Department of Alcohol Beverage Control and City of Norwalk, Department of Public Safety within six months of approval of Conditional Use Permit No. 973 or an employee s start date, whichever occurs later. Resolution No. 15-XX Page 7 of 8
9. A surveillance camera plan shall be submitted to the Public Safety and Community Development Departments for review and approval prior to the sale of alcoholic beverages. The plan shall contain the following elements: a. Provision of access to the surveillance system by the Norwalk Sheriff s Station; b. Provision of any required software, licenses, user ID s or passwords to the Norwalk Sheriff s Station; c. Video feed of sufficient quality to permit the Sheriff s Station to utilize the feed for law enforcement purposes, whether emergency or investigatory; d. Camera Surveillance System to be maintained at all times, including during non-business hours; e. Establishment of a minimum maintenance period for all video recordings/feeds; f. Provision of copies of recorded videos at the request of the Norwalk Sheriff s Station without a warrant or court order; g. The placement of cameras within the facility to provide coverage of public areas; and h. Other elements at the direction of the Director of Public Safety. 10. The business shall participate in the Department of Public Safety s Business Watch program. 11. Business owner/employees must refrain from engaging in business transactions with those individuals loitering and/or panhandling, so as to discourage them from frequenting the area. 12. Alcohol sales will be restricted to the MacGuffins bar area as indicated on the submitted plans and consumed within bar area and designated theaters. END OF CONDITIONS Resolution No. 15-XX Page 8 of 8
ATTACHMENT NO. 5 LOCATION AND ZONING MAP 12300 CIVIC CENTER DR. C0 PF C C0 PF C1 SPA 1 N SUBJECT PROPERTY
PARK ATTACHMENT NO. 6 ALCOHOL MAP 12300 CIVIC CENTER DR. ON-SALE LICENSES WITHIN CENSUS TRACT 5523.01 CITY HALL LIBRARY RECORDER SUPERIOR COURT SHERIFF SUBJECT PROPERTY 1 2 NORWALK THOMAS B. MOFFITT SCHOOL LEGEND N 1 2
ATTACHMENT NO. 7
ATTACHMENT NO. 8
ATTACHMENT NO. 9 CITY OF NORWALK DEPARTMENT OF PUBLIC SAFETY MEMORANDUM DATE: August 6, 2015 TO: FROM: SUBJECT: Jessica Serrano, Senior Planner Joshua Yordt, Public Safety Manager CUP 973 12300 Civic Center Dr., AMC Theater / MacGuffins Bar Staff has reviewed the application submitted by AMC Theater located at 12300 Civic Center Dr. for CUP 973 to allow on-site alcohol sales. Upon review of the application, the Department of Public Safety recommends the following conditions. Sales of alcohol shall not be permitted between the hours of 1:30 a.m. and 10:30 a.m. Monday through Sunday. Only ticketed theater guests may purchase alcohol on the same day as their ticket. Gross monthly sales of alcohol shall not exceed gross monthly sales of food and other non-alcohol items within the same period. Sales and service of alcohol shall not be permitted in any theater or auditorium area, hallway, or from any concession stand, fixed or mobile, that sells non-alcohol items. No more the two (2) alcoholic beverages shall be sold or served to any one (1) person during any transaction. All alcoholic beverages shall be served in a plastic cup that is significantly different than containers used to serve non-alcoholic beverages. Containers for alcoholic beverages shall not exceed 16 ounces. Applicant is required to conduct a visual inspection and monitor activity of each theater auditorium no less than every 30 minutes. A minimum of one (1) security guard shall be on duty 10:30 a.m. to 3:00 a.m. Monday through Sunday. A minimum of three (3) security guards shall be on duty 7:00 p.m. to 3:00 a.m. Thursday through Saturday. The city may require additional security guards or law enforcement officers be hired for any special engagement, premiere, or other special event that is likely to increase the number of patrons. All employees are to complete a Responsible Beverage Server training course approved by the California Department of Alcohol Beverage Control and City of Norwalk, Department of Public Safety within six months of
approval of modified Conditional Use Permit 973 or an employee s start date, whichever occurs later. A surveillance camera system is to be maintained operational at all times, including during non-business hours. The system features and functions shall be accessible by any employee at all times during normal business hours. The system is to be such that it can be accessed via an Internet connection, as a web based program. Any software and/or licenses required to operate the system shall be provided to Norwalk Sheriff s Station. A unique user ID and password shall be created and provided for Norwalk Sherriff s Station use to access the system at anytime during an emergency or crime in progress incident. The system should provide a minimum of 720x480 picture quality, 2 lux lighting operating capability in color, signal compression of H.264, and be recorded to an internet DVR with a minimum retention of 30 days Cameras shall be placed to provide coverage of all entrances/exits, cash registers/safes, retail sales floor area, beer/wine displays, office/storage areas, and the parking lot area. A surveillance camera plan shall be submitted for review and approval by Public Safety, Community Development, and Norwalk Sheriff s Station. Business owner or employees are to provide recordings upon request by law enforcement, without a warrant or court order. The business shall participate in the Department of Public Safety s Business Watch program. Business owner/employees must refrain from engaging in business transactions with those individuals loitering and/or panhandling, so as to discourage them from frequenting the area. Should you have any questions, please feel free to contact me.
ATTACHMENT NO. 10
ATTACHMENT NO. 11