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Jonathan Lowell, Esq. December 24, 2013 Page 3 of 4 of an appropriate portion of the cash deposit. The Reddys may submit invoices, inspection records, and other relevant information to assist the Director of Community Development or his or her designee in making decision regarding release of funds. Upon completion of all modifications undertaken to comply with the City's final design review decision, as determined by the Director of Community Development, or his or her designee, the City shall issue the Reddys a permanent certificate of occupancy. The City failed to adhere to the Agreement—through its actions, including, but not limited to, the issuance of the Planning Commission's Staff Report, dated December 11, 2013 (the "Staff Report"). The Staff Report provided the City with three options: 1. Find the Reddy Residence conforms to the Ruby Hill Architectural Design Guidelines (the "RHADG") and require the Reddys to correct their home according to the City's recommendations, allowing the RHADC to conduct final review of the building colors, garage door design and the gazebo design. 2. Find that the Reddy Residence does not conform to the RHADG, and require that the Reddys correct the Reddy Residence to comply with RHADG, as administered by the RHADC. 3. Find that the Reddy Residence conforms to the RHADG. Of these recommendations, the Planning Commission elected to proceed with Option 2 of the Staff Report. The City is now on notice that there are several errors, omissions, and misstatements contained within.the Staff Report, including, but not limited to: • The statement that the applicants applied for and were denied a permit for Temporary Occupancy is false and that the Reddys appealed to the City Manager. Should the City continue to maintain this position, it must furnish any evidence of said denial. • The Staff Report represents that the requirement for a final approval letter is the requirement of the City and not the Ruby Hill Owners' Association. Both the City and the Ruby Hill Owners' Association have consistently taken the position that the final approval letter is the Ruby Hill Owners' Association's requirement. See e.g. Defendants Memorandum of Points and Authorities ISO Notice of Demurrer("Yet, the Plaintiffs have failed to allege that they exhausted their administrative remedies with the City of Pleasanton. For example, where is there an allegation that the Plaintiffs went directly to the City Planning Department for a Certificate of Occupancy?"). DHILLON&SMITH LLP 177 POST STREET,SUITE 700 I SAN FRANCISCO,CA 94108 1 415.433.1700 1 415.520.6593(F)