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split the cost of mediation with the Spencer's; however, was informed that Mr. Spencer would not be interested in mediation until the PUD is amended to the new setbacks. Staff notes that the "proposed" global setbacks would still require a PUD modification for the Spencer pool if an application was made to amend the PUD setbacks for all lots. Mr. Besso's a-mail stated his concern on how the approach of global setbacks would start the process over if an application was made for the development as a hole and then mediation for the individual Spencer's modification. Staff contacted Mr. Besso to let him know that the City was informed that there may be other structures within the development that were built/construction/installed without City approval and within the setback requirements and that the City did suggest to the ACC that a modification to the entire development may be best if all of the homeowners and HOA agree to the suggested setbacks. Staff also noted that the setbacks, while provided on staff s map, were still being considered and may not be the "final" setbacks accepted by the City. Staff contacted the applicant on January 10, 2008, please Exhibit D-4, to see if the applicant would be interested in revisiting the idea of a mediator for his application while the HOA/ACC considers a modification to the remaining lots or if he still wanted to move forward with one application of an entire development change to the PUD using his application. Mr. Spencer responded to staff via a-mail (Exhibit D-1) stating that it was his understanding that Mr. Besso has agreed to the global development setbacks proposed by the City if he (Mr. Spencer) would agree to mediation regarding the individual pool modification request. Mr. Spencer said that he would agree to mediation upon the following conditions: ^ That the cost be split evenly; ^ That the PUD be amended prior to the mediation; ^ That the mediation occur within 30 days of the PUD approval; and ^ I [Mr. Spencers will not reapply for an improvement permit until the mediation is conducted. Based on the chain of a-mails from the applicant and HOA members, Mr. Besso did not want to agree to these requests until there was an HOA meeting for all of the homeowners to attend and discuss a global setback change or individual ones. Please see Exhibit D-3. After the HOA meeting, the development voted to have staff come out to the site and review all of the lots and answer questions from the homeowners prior to making a decision; to which staff agreed. Please see Exhibit D-3 for correspondence. PUD-99-01-OS, Steven Spencer Planning Commission 7of11