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Mr. Mull stated that it is right there in black and white with Lt. Knox. He added that they do not have a difference of opinion in terms of how important it is to change this. He reiterated that there has been a history of operation at this location for 22 years, and his client has an operational history of a year and a half. He asked the Commission not to let somebody else hijack their business, in which where they have invested half -a- million dollars, and basically shut it down, take a large portion of the Hacienda Business Park and turn it into an empty space, and have 40 or 50 people lose their jobs because some folks came from Oakland without being invited. He indicated that they would like these folks to go away also, and they think the way to do this is to allow the business to switch to a different format rather than reacting as if the club is going to have that same group there for the next year, which they do not want that to happen either. Commissioner Pearce inquired if her understanding is correct that on the night of the incident in question, the fight broke out in the VIP area where the bottle service is located. Mr. Mull replied that he thinks it broke out in several areas and not just in that area. Commissioner Pearce requested verification that it included the bottle service area. Mr. Mull said yes. Commissioner Pearce recalled Mr. Mull's earlier statement that if people appear inebriated in the bottle service area, the waitresses cut them off. Mr. Mull said that was correct. Commissioner Pearce commented that this goes against all the information she has on bottle service. She asked Mr. Mull to describe how that area works because her understanding is that it is different from the regular bar area. Mr. Mull stated that the waitresses bring the bottles and the mixtures that are used in those bottles, so they have the opportunity to see whether or not anybody is inebriated. He indicated that they have not had an issue that these incidents happen because of heavy inebriation. He noted that it is a strange thing with this crowd, which is not a heavy drinking crowd, as the club receive monies at the door for cover charges, but the amount of bar sales is really low in comparison to the number of people there. Commissioner Pearce inquired if it is true that in a bottle service area, entire bottles of alcohol are purchased ahead of time. Mr. Mull said yes, for groups of ten. Commissioner Pearce pointed out that it is for groups of ten at a premium price as this is a VIP area. PLANNING COMMISSION MINUTES, February 8, 2012 Page 14 of 23