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HomeMy WebLinkAbout2003-01RESOLUTION NO. 2003-01 RECOMMENDING THAT THE TOWN COUNCIL ADOPT A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL SIGNIFICANCE AND APPROVE REZONING REQUEST RZ 2002-01 AND SUBDIVISION REQUEST SD 8641 ALLOWING THE DEVELOPMENT OF AN 8-LOT SINGLE FAMILY RESIDENTIAL DEVELOPMENT (APN: 196-330-034 --- 150 HILL ROAD) WHEREAS, Charles and Marie O'Brien have requested approval of a Major Subdivision request to rezone the site from a R-20; Single Family Residential District to an R-15; Single family Residential District and to subdivide the 4.61 +/- acre site to allow development of site into 8 single family lots; and WHEREAS, the subject site is a parcel located west of the intersection of Diablo Road and Green Valley Road, and is further identified as Assessor's Parcel Number 196-330-034; and WHEREAS, the Town of Danville Rezoning Ordinance requires approval of a Rezoning request prior to the approval of a Major Subdivision application; and WHEREAS, the Town of Danville requires approval of a Subdivision request prior to recordation of the final map; and WHEREAS, the Planning Commission did review the project at a noticed public hearing on January 7, 2003; and WHEREAS, a Mitigated Negative Declaration of Environmental Significance has been prepared for the project indicating that, as modified through project revisions or recommended conditions of approval, no significant environmental impacts are anticipated to be associated with the project; and WHEREAS, the public notice of this action was given in all respects as required by law; and WHEREAS, a staff report was submitted recommending that the Planning Commission approve the request; and WHEREAS, the Planning Commission did hear and consider all reports, recommendations, and testimony submitted in writing and presented at the hearing; now, therefore, be it RESOLVED that the Planning Commission of the Town of Danville recormnends the Town Council adopt the Mitigated Negative Declaration of Environmental Significance and approve Rezoning request RZ 2002-01 and Subdivision request SD 8641, per the conditions contained herein, and makes the following findings in support of this action: Rezoning: The proposed Rezoning will substantially comply with the Danville 2010 General Plan since the proposed use is residential and the General Plan land use designation allows residential uses. The uses authorized or proposed in the land use district are compatible within the district and to uses authorized in adjacent districts. 3. Residential use is a demonstrated community need. There is no evidence before the Town that the proposed project will have potential for an adverse effect on wildlife resources or the habitat upon which the wildlife depends. The proposed Rezoning is in conformance with the Danville 2010 General Plan goals and policies. The Rezoning will constitute a residential environment of sustained desirability and stability, and will be in harmony with the character of the surrounding existing neighborhood and the ultimate development planned for the subject area. Subdivision: The proposed subdivision is in substantial conformance with the goals and policies of the Danville 2010 General Plan because the site allows residential use. The design of the proposed subdivision is in substantial conformance with the applicable zoning regulations because the site is being rezoned to allow development which is consistent with the underlying General Plan land use designation; Residential - Single Family - Low Density (1-3 units per acre). The design of the subdivision and the type of associated improvements will not likely cause serious public health problems because water and sanitary utility services will be available to the 7 new parcels. The density of the subdivision is physically suitable for the subject site and surrounding neighborhood because the density proposed is less that the allowed density for a parcel of this size and as allowed under the 2010 General Plan. The design of the proposed subdivision and improvements are not likely to cause substantial environmental damage or subsequently injure fish or wildlife or their PAGE 2 OF RESOLUTION NO. 2003-01 habitat because this project will be conditioned to include mitigation measures against any potential impact to water or biological resources. The design of the proposed subdivision and proposed improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision because the proposed development would create new easements for the public to gain a potential future access through the project which currently does not exist. CONDITIONS OF APPROVAL Conditions of approval with an asterisk ("*") in the left-hand column are standard project conditions of approval. Conditions of approval typed in italicized text are mitigation measures derived from the Mitigated Negative Declaration of Environmental Significance prepared for the project. Unless otherwise specified, the following conditions shall be complied with prior to the Town Council approval of the initial final map for the project. Each item is subject to review and approval by the Planning Division unless otherwise specified. A. GENERAL * 1. This approval is for Rezoning request RZ 2002-01 and Major Subdivision request SD 8641, rezoning the site from R-20; Single Family Residential District to R-15; Single Family Residential District and subdividing the 4.61 +/- acre site, allowing an eight lot residential development. The site is located on a parcel with one existing single family residence west of the intersection of Green Valley and Diablo Road (APN: 196-330-034). Development shall be substantially as shown on the project drawings as follows, except as may be modified by conditions contained herein; Vesting Tentative Map, Rezoning Map, Preliminary Grading Plan, Site Sections, Tree Survey Plan, Proposed and Existing Easements, and Improvements labeled "Subdivision 8641," as prepared by Aliquot and dated received by the Planning Division on August 6, 2002. The applicant shall pay or be subject to any and all Town and other related fees that are applicable due to the development of the site. These fees shall be based on the current fee schedule in effect at the time the relevant permits are secured, and shall be paid prior to issuance of said permit and prior to any Town Council final approval action. Notice PAGE 3 OF RESOLUTION NO. 2003-01 should be taken specifically of the Base Map Revision Fee ($48/lot), Engineering Inspection Fee (5 % of cost estimate), Excavation Mitigation Fee ($10,400), Map Checking Fee ($2,871), North East Benefit District Fee ($106,267), Town's Child Care Facilities ($335/lot), Tri-Valley Transportation Fee ($1,711/lot), Storm Water Pollution Program Fee ($39/lot), and Grading Plan check, Inspection & permit (To be determined) (Note: Fee amounts shown reflect fee schedule in place as of the date of approval. Actual fee amounts to be paid may be higher, depending on the timing of the recordation of the final map and the issuance of building permits for the project). Prior to the recordation of the initial final map for the project, the applicant shall reimburse to the Town costs incurred to supply project notification to surrounding neighboring residents. The reimbursement shall be $144.00, covering the costs associated for two mailed notices sent to 192 addresses. (2 mailings X 192 notices X $0.75 per notice). Prior to the issuance of grading or building permits, the applicant shall submit written documentation that all requirements of the San Ramon Valley Fire Protection District (SRVFPD) and the San Ramon Valley Unified School District have been, or will be, met to the satisfaction of these respective agencies. The SRVFPD's initial comments on this project are summarized in their memorandum dated April 17, 2002. In the event that subsurface archeological remains are discovered during any construction or pre-construction activities on the site, all land alteration work within 100 feet of the find shall be halted, the Town Planning Division notified, and a professional archeologist, certified by the Society of California Archeology and/or the Society of Professional Archeology, shall be notified. Site work in this area shall not occur until the archeologist has had an opportunity to evaluate the significance of the find and to outline appropriate mitigation measures, if they are deemed necessary. If prehistoric archaeological deposits are discovered during development of the site, local Native American organizations shall be consulted and involved in making resource management decisions. Unless otherwise authorized by the Town once construction commences, construction activity shall be restricted to weekdays between the hours of 8:00 p.m. and 6:00 p.m. Deviation from the work hour restrictions must be approved in writing by the City Engineer for general construction activity and the Chief Building Official for building construction activity. Prior to any construction work on the site, including grading, the applicant shall PAGE 4 OF RESOLUTION NO. 2003-01 install a sign with minimum dimensions of 4' x 4' at the project entry which specifies the allowable construction work days and hours, and lists the name and contact person for the overall project manager and all contractors and sub-contractors, as found appropriate/necessary by the Town. The applicant shall provide security fencing, to the satisfaction of the City Engineer and/or the Chief Building Official, around the site during construction of the project. The applicant shall require their contractors and subcontractors to fit all internal combustion engines with mufflers that are in good condition, and to locate stationary noise-generating equipment as far away from existing residences as feasible. A watering program which incorporates the use of a dust suppressant, and which complies with Regulation 2 of the Bay Area Air Quality Management District shall be established and implemented for all on and off-site construction activities. Equipment and human resources for watering all exposed or disturbed soil surfaces shall be supplied on weekends and holidays as well as work days. Dust-producing activities shall be discontinued during high wind periods. 10. All physical improvements shall be in place prior to occupancy of any structure in the project. If occupancy within the project is requested to occur in phases, all physical improvements shall be required to be in place prior to occupancy except for items specifically excluded in a construction- phases occupancy plan approved by the Planning Division. No structure shall be occupied until construction activity in the adjoining area is complete and the area is safe, accessible, provided with all reasonably expected services and amenities, and appropriately separated from remaining additional construction activity. A temporary vehicular turnaround shall be provided at the end of the completed section of loop roadway to allow separation of resident traffic and construction traffic. 11. As part of the initial submittal for the grading permit plan check, the final map plan check, the improvement plans plan check and the building permit plan check, the applicant shall submit a written compliance report detailing the status of compliance with project conditions of approval. This report shall list each condition of approval followed by a description of what the applicant has provided as evidence of compliance with that condition. The applicant shall sign the report. The report is subject to PAGE 5 OF RESOLUTION NO. 2003-01 review and approval by the City Engineer, the Chief of Planning, or the Chief Building Official, as applicable, and may be rejected by the Town if it is not compliant with the conditions of approval. Additionally, the compliance report shall be forwarded to the Plam~ing Commission for review. 12. The applicant shall create a construction staging plan that addresses the ingress and egress location for all construction vehicles, parking and material storage area. The applicant shall verify the weight limit of Hill Road Bridge; construction equipment related to this development which exceeds the weight limit of the bridge shall not use the Hill Road Bridge. This plan shall be reviewed and approved by the Chief of Planning prior to the issuance of a grading permit. 13. Planning Division sign-off is required prior to the completion of a Final Building Inspection. B. SITE PLANNING * 1. Any on-site wells and septic systems shall be destroyed in accordance with Contra Costa County Health Services Department - Environmental Health Division regulations. Environmental Health Division permits and inspections for this work shall be obtained. Development of the site shall comply with ail zoning standards contained within the R-15; Single Family Zoning District. Land uses and conditional uses shall also be consistent with the uses outlined in the Single Family Residential District section of the Danville Municipal Code. A pedestrian bridge shall be constructed to span Green Valley Creek and parallel to Hill Road Bridge as part of this project. A public access easement shall be recorded over the full length of the pedestrian bridge and shall be contiguous with the existing trail easements. The pedestrian bridge that spans Green Valley Creek shall be constructed with minimal disturbance to the creek and creek bank. The applicant shall secure permits from California Department ofFish and Game, Contra Costa County Flood Control District and any other agencies that govern biological resources of Green Valley Creek. The applicant shall be required to comply with any and all recommendations to minimize creek impacts to the satisfaction of the Town. Documentation of compliance shall be submitted to the Town prior to recordation PAGE 6 OF RESOLUTION NO. 2003-01 of the final map. C. LANDSCAPING * 1. Final landscape and irrigation plans (with planting shown at 1' =20' scale) shall be submitted for review and approval by the Planning Division. The plan shall include common names of all plant materials and shall indicate the size that various plant materials will achieve within a five year period of time. This plan shall be subject to review and approval Town's Landscape Architect and the Planning Division prior to the issuance of a building permit. All plant material shall be served by an automatic underground irrigation system and maintained in a healthy growing condition. Irrigation shall comply with Town of Danville Landscape Ordinance #91-14 and landscape guidelines and shall be designed to avoid runoff and overspray. Proposed common maintenance lawn areas within the project shall not exceed a maximum of 25 percent of proposed common landscaped areas. All trees shall be a minimum of 15 gallon container size. Ali trees shall be properly staked. All remaining shrubs used in the project, which are not used as ground cover, shall be a minimum of five gallons in size. All landscaped areas not covered by shrubs and trees shall be planted with live ground cover. All proposed ground cover shall be placed so that they fill in within two years. An average of two street trees per lot (not counting "small accent trees") shall be incorporated into the final landscape and irrigation plan for the project. Prior to the issuance of a grading permit and prior to removal of any trees, the applicant shall submit to the Planning Division a current report from a certified arborist which recommends tree preservation measures and the size, location, species and condition of all existing trees. In addition, the arborist report shall evaluate the feasibility of transplanting all trees proposed for removal and the applicant's proposal to plant replacement trees off-site along the Green Valley Creek Trail. The applicant shall plant on-site replacement trees (location to be determined by the Town) which are of the same species and a cumulative diameter necessary to equal the diameter of the tree(s) which are approved for removal. As a guarantee of the preservation of the protected trees as identified in the Arborist Report, a cash deposit shall be posted on a per tree basis as required by the Town's PAGE 7 OF RESOLUTION NO. 2003-01 Tree Protection Ordinance. For trees located within the identified creek improvement and commonly owned areas, the Town shall retain the deposit for a period of two full growing seasons afler completion or site development activity. The deposit will be returned upon verification or the trees' continued good health. The applicant shall make a diligent effort to preserve Tree #210, an 11-inch Valley Oak, and Tree #228, a 15-inch Coast Live Oak, and Tree #225, an 11-inch Valley Oak, subject to the review and approval or the Planning Division prior to issuance ora grading permit. D. ARCHITECTURE * 1. * 2. * 4. All ducts, meters, air conditioning and/or any other mechanical equipment whether on the structure or on the ground shall be effectively screened from view with landscaping or materials architecturally compatible with the main structures. The street numbers for each structure in the project shall be posted so as to be easily seen from the street at all times, day and night. Samples of final materials, proposed color palette, final architectural elevations, details and revisions shall be submitted for review and approval by the Design Review Board under a separate Development Plan application and prior to issuance of building permits for the project. If signing for the development is desired, in addition to any signs approved as part of this application, a comprehensive sign program shall be submitted to the Town for consideration under a separate application. E. PARKING * 1. Regulatory signage/curb painting for the roadway shall be provided, if deemed necessary, to the satisfaction of the San Ramon Valley Fire Protection District and the City Engineer. F. GRADING * 1. Any grading on adjacent properties will require prior written approval of those property owners affected. PAGE 8 OF RESOLUTION NO. 2003-01 At least one week prior to commencement of grading, the applicant shall post the site and mail to the owners of property within 300 feet of the exterior boundary of the project site, to the homeowners' associations of nearby residential projects and to the Town of Danville Development Services Department, a notice that construction work will commence. The notice shall include a list of contact persons with name, title, phone number and area of responsibility. The person responsible for maintaining the list shall be included. The list shall be kept current at all times and shall consist of persons with authority to initiate corrective action in their area of responsibility. The names of individuals responsible for dust, noise and litter control shall be expressly identified in the notice. Development shall be completed in compliance with a detailed soils report and the construction grading plans prepared for this project. The engineering recommendations outlined in the project specific soils report shall be incorporated into the design of this project. The report shall include specific recommendations for foundation design of the proposed buildings and shall be subject to review and approval by the Town's Engineering and Planning Divisions. Where soils or geologic conditions encountered in grading operations are different from that anticipated in the soil report, a revised soils report shall be submitted for review and approval by the City Engineer. It shall be accompanied by an engineering and geological opinion as to the safety of the site from settlement and seismic activity. Ail development shall take place in compliance with the Town Erosion Control Ordinance (Ord. 91-25). Restrictions include limiting construction primarily to the dry months of the year (i.e. May through October) and, if construction does occur during the rainy season, the applicant shall submit an Erosion Control Plan to the City Engineer for review and approval. This plan shall incorporate erosion control devices such as, the use of sediment traps, silt fencing, pad berming and other techniques to minimize erosion. All new development shall be consistent with modern design for resistance to seismic forces. All new development shall be in accordance with the Uniform Building Code and Town of Danville Ordinances. Ail cut and fill areas shall be appropriateIy designed to minimize the effects of ground shaking and settlement. PAGE 9 OF RESOLUTION NO. 2003-01 * 8. Stockpiles of debris, soil, sand or other materials that can be blown by the wind shall be covered. If toxic or contaminated soil is encountered during construction, all construction activity in that area shall cease until the appropriate action is determined and implemented. The concentrations, extent of the contamination and mitigation shall be determined by the Contra Costa County Health Department. Suitable disposal and/or treatment of any contaminated soil shall meet all federal state and local regulations. If deemed appropriate by the Health Department, the applicant shall make provisions for immediate containment of the materials. Runoff from any contaminated soil shall not be allowed to enter any drainage facility, inlet or creek. 10. All grading activity shall address National Pollutant Discharge Elimination System (NPDES) concerns. Specific measures to control sediment runoff, construction pollution and other potential construction contamination shall be addressed through the Erosion Control Plan (ECP) and Storm Water Pollution Prevention Plan (SWPPP). A NPDES construction permit may be required, as determined by the City Engineer. 11. To address the impact of potential erosion issues along Green Valley Creek in the vicinity of proposed pedestrian bridge construction and the existing flood control easement, the applicant shall provide an appropriate geotechnical analysis, subject to a third party review on behalf of the Town as deemed necessary by the City Engineer. The report shall be subject to review and approval by the City Engineer and the Costa County Flood Control and Water Conservation District, and any other agencies with jurisdiction regarding Green Valley Creek. The geotechnical engineer shall identify any critical areas within this section of the creek, specifically in construction areas, that are subject to bank failures, and make recommendations regarding preventative, bank-stabilizing measures. The pedestrian bridge shall be designed to not cause erosion both during and after construction. 12. The applicant shall confer with the owners of the adjoining property to the west to modify the proposed grading to eliminate the need for retaining walls on Lots 2, 3, 4 and 5. If slope easements cannot be secured, the retaining walls shall be installed with the total height split into two evenly divided segments separated by a minimum 2' terraced section, subject to review and approval by the Planning Division. PAGE 10 OF RESOLUTION NO. 2003-01 G. STREETS * 1. The applicant shall obtain an encroachment permit from the Engineering Division prior to commencing any construction activities within any public right-of-way or easement. Street signing shaI1 be installed by the applicant as may be required by the City Engineer. Traffic signs and parking restriction signs, which may be required to be installed, shall be subject to review and approval by the Transportation Division and the Police Department. All mud or dirt carried off the construction site onto adjacent streets shall be swept each day. Water flushing of site debris or sediment or concrete washing is expressly prohibited. Any damage to street improvements now existing or done during construction on or adjacent to the subject property shall be repaired to the satisfaction of the City Engineer, at full expense to the applicant. This shall include slurry seal, overlay or street reconstruction if deemed warranted by the City Engineer. * 5. All improvements, including curb, gutter, sidewalks, driveways, paving and utilities, shall be constructed in accordance with approved standards and/or plans and shall comply with the standard plans and specifications of the Development Services Department and Chapters XII and XXXI of the Town Code. At the time project improvement plans are submitted, the applicant shall supply to the City Engineer an up-to-date title report for the subject property. * 6. Handicapped ramps shall be provided and located as required by the City Engineer. * 7. A satisfactory private storm drain, v-ditch and surface drainage maintenance agreement shall be submitted for approval of the City Attorney prior to any Town Council final approval action. H. INFRASTRUCTURE * 1. Domestic water supply shall be from an existing public water system. Water supply service shall be from the East Bay Municipal Utility District water system in accordance with the requirements of the district. PAGE 11 OF RESOLUTION NO. 2003-01 All wastewater shall be disposed into an existing sewer system. Sewer disposal service shall be from the Central Contra Costa Sanitary District sewer system in accordance with the requirements of the District. Drainage facilities and easements shall be provided to the satisfaction of the City Engineer and/or the Chief Engineer of the Contra Costa County Flood Control & Water Conservation District. All runoff from impervious surfaces shall be intercepted at the project boundary and shall be collected and conducted via an approved drainage method through the project to an approved storm drainage facility, as determined by the City Engineer. Development which proposes to contribute additional water to existing drainage system shall be required to complete a hydraulic study and make improvements to the system as required to handle the expected ultimate peak water flow and to stabilize erosive banks that could be impacted by additional storm water flow. Roof drainage from structures shall be collected via a closed pipe and conveyed to an approved storm drainage facility in the street curb. No concentrated drainage shall be permitted to surface flow across sidewalks. Any portion of the drainage system that conveys runoff from public streets shall be installed within a dedicated drainage easement, or public street. If a storm drain must cross a lot, or be in an easement between lots, the easement shall be equal to or at least double the depth of the storm drain. The applicant shall furnish proof to the City Engineer of the acquisition of all necessary rights of entry, permits and/or easements for the construction of off-site temporary or permanent road and drainage improvements. Electrical, gas, telephone, and Cable TV services, shall be provided underground in accordance with the Town policies and existing ordinances. Ali utilities shall be located and provided within public utility easements, sited to meet utility company standards, or in public streets, and shall be installed underground. 10. All street, drainage or grading improvement plans shall be prepared by a licensed civil engineer. PAGE 12 OF RESOLUTION NO. 2003-01 11. The existing above-ground utility pole (s) on Hill Road shall be removed. I. MISCELLANEOUS * 1. The project shall be constructed as approved. Minor modifications in the design, but not the use, may be approved by the Development Services Department. Any other change will require Planning ComnW~ssion approval through the Development Plan review process. Conditions of this approval may require tire applicant to install public improvements on land over which neither the applicant, nor the Town, has easement rights to allow for the installation of the improvements. The applicant shall be responsible for acquisition of said easement rights through private negotiations. If the applicant is unsuccessful in negotiations, the applicant shall apply to the Town for use of eminent domain powers in accordance with Town Resolution No. 78-85. Ail easement rights shall be secured prior to Town Council final approval of any subdivision map. Ail costs associated with such acquisition shall be borne by the applicant. Pursuant to Government Code section 66474.9, the applicant (including the applicant or any agent thereof) shall defend, indemnify, and hold harmless the Town of Danville and its agents, officers, and employees from any claim, action, or proceeding against the Town or its agents, officers, or employees to attack, set aside, void, or annul, the Town's approval concerning this application, which action is brought within the time period provided for in Section 66499.37. The Town will promptly notify the applicant of any such claim, action, or proceeding and cooperate fully in the defense. The project homeowners' association, through project-specific covenants, conditions and restrictions (CC&Rs), shall be responsible for maintenance of the new roads within the subdivision, Hill Road and Hill Road Bridge. Draft project CC&Rs shall be submitted to the Town of Danville for review and approval a minimum of 30 days prior to recordation of the final map. The Town shall be made a third party beneficiary as to the sections of the CC&Rs, which address applicable conditions included in the project conditions of approval. The applicant may request an alternative mechanism, such as a maintenance agreement, rather than a homeowners' association for the project. The alternative may be PAGE 13 OF RESOLUTION NO. 2003-01 acceptable to the Town if it is determined as effective as an established homeowners' association and demonstrates that the new roads within the subdivision, Hill Road and Hill Road Bridge would be permanently maintained. This alternative shall be submitted to the Town for review and is subject to approval by the Town prior to the recordation of the final map. All new private roads within Subdivision SD 8641 shall be maintained solely by the owners of the lots within Subdivision SD 8641. Prior to recordation of the final map, the applicant shall: a. Document that all future property owners within SD 8641 are required to participate in their fair share of the costs associated with maintenance of the Hill Road and Hill Road Bridge; b. Conduct an inspection and document the existing condition of Hill Road Bridge for all parties bound by the maintenance agreement to determine the fair share of the costs to repair any damage now existing or done during construction. Use of a private gated entrance is expressly prohibited. The location, design and number of gang mailbox structures serving the project shall be subject to review and approval by the Planning Division and the local Postmaster. The proposed project shall conform to the Town's Stormwater Management and Discharge Control Ordinance (Ord. No. 94-19) and all applicable construction and post-construction Best Management Practices (BMPs) for the site. For example, construction BMPs may include, but are not limited to: the storage and handling of construction materials, street cleaning, proper disposal of wastes and debris, painting, concrete operations, de-watering operations, pavement operations, vehicle/equipment cleaning, maintenance and fueling and stabilization of construction entrances. Training of contractors on BMPs for construction activities is a requirement of this permit. At the discretion of the City Engineer, a Storm Water Pollution Prevention Plan (SWPPP) may be required for projects under five acres. As a part of the issuance of a demolition permit and/or building permit for the project, the applicant shall submit a recycling plan for building and construction materials and the disposition of green waste generated from land clearing on the site. Prior to obtaining framing inspection approval for the project, the applicant/owner shall provide the Planning Division PAGE 14 OF RESOLUTION NO. 2003-01 with written documentation (e.g. receipts or records) indicting that waste materials created from the demolition of existing buildings and the construction of new buildings were/are being recycled according to their recycling plan, or in an equivalent manner. For lots I and 2, deed restrictions shall be recorded that notify future property owners of the existence of a flood control easement and that no building is allowed in the flood control easement. APPROVED by the Danville Planning Commission at a regular meeting on January 7, 2003 by the following vote: AYES: NOES: ABSTAINED: ABSENT: Graham, Legg, Moran, Storer, Osborn, Combs Condie Jameson APPROVED AS TO FORM: City Attorney / PAGE 15 OF RESOLUTION NO. 2003-01