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BEST BEST 6 KRIEG! LLP Tom Thanopolous Olympia Grill & Lounge, Inc. March 16, 1999 Page 3 all parking areas used by customers of your club. We agreed that at least one guard would use the golf cart to patrol the parking areas and that he would pay particular attention to the walkways adjoining the more distant parldng areas. We agreed that you would pay for a portion of the administrative costs incurred by the City with respect to monitoring the guards that you use for security and for occasional visits to the club to see that security is properly functioning. We agreed that you would pay for up to 15 hours per month for such administrative costs. The hourly rate for recovery would be that rate which is set for the top operating officer position. That current amount is less than $23.00 per hour. We agreed that you would pay this sum on the date on which you first open the club and on that same date for each month thereafter. We agreed that after your club has been in operation or at least six hill months, representatives of the Police Department would meet with you to discuss whether the administrative costs should be adjusted. We asked whether your liquor license from the Department of Alcoholic Beverage Control permits you to serve or allow people to consume alcohol in the patio area where you recently installed security bars. We agreed that if your permit authorizes alcohol in this area, you would use Your guards and other measures (such as placing metal screening on the bars surrounding the patio area) in order to ensure that no alcohol is passed to people (especially underage persons) in the parking lot or standing in line to gain entrance to the club. You confirmed that you have agreed not to use the club property for an adult business use as such use is defined in the Colton Municipal Code. You also agreed that you would permit certain covenants to be recorded against your property, if feasible, to ensure that the property is not used for such adult business purposes. We aro pleased that we have all been able to work together to resolve these issues that the Planning Commission directed us to look into. As you know, we informed the Planning Commission at its meeting on March 9, 1999 of our successful progress on these matters, and we indicated that the City Council will consider your dance permit at its meeting on March 16, 1999. In the meantime, we understand that Mr. Ragels has arranged a meeting of the Development Review RVPUB%SR0M16