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Chair Harms asked for clarification of the setback from the curb to the building. There is 25-27 feet of distance from curb to building. Dave Seaberg said he originally owned most property in this area. He asked if a PUD had to account for all run-off. (Rate control will help). A sidewalk on the north side would help also. Member Olson asked for details on impervious surface and ponding; staff explained the policy on commercial impervious surfaces. Chair Harms asked if conditions could be attached to the PUD. Motion: Member Rhody moved, seconded by Member Cunningham, to recommend approval of the concept P.UD. development plan for a 3,800 s.f. office building planned unit development at the southeast corner of the intersection of County Road D and Fairview Avenue, based on the findings outlined in Section 3 of the staff report of January 13, 1999. It is understood that the effective date of such a planned unit development will not occur until after the submission and approval of the vacation of the needed portion of County Road D; and, after the submission and final approval of the planned unit development agreement and publication of the PUD ordinance. No new construction may occur before the effective date of the ordinance. Motion carried 7-0. Ayes: Olson, Harms, Mulder, Klausing, Rhody, Cunningham, Wilke Nays: None Gb. Planning File 3093. John and Jan Carlson and WF Bauer Homes are requesting a variance from Section 1016.26(B) of the City Code to increase the impervious surface coverage of a parcel in the shoreland management district of Lake Josephine from 25% to 35% and a variance from Section 1 004.02(D) to reduce the rear yard setback to 27 feet for the purpose of constructing a single family residence on an undeveloped parcel. The property is located at 1240 Belair Circle. Chair Harms opened the hearing and asked Dennis Welsch to present of overview of the request. Daryl Locosio, 2933 Merrill, asked that a smaller house on the property be designed to meet the setback requirements of the Code. He asked why the driveway couldn't be more sloped. There is water in his basement. Is there water running toward the south from this site? The drainage will not be drained directly to the street. Member Klausing asked if the house and design could be altered to not need a variance. Jan Sullimen, 1244 Belair Circle, expressed concern regarding the location of the driveway. Phil Bechect, 2977 Merrill, suggested a two-story building to reduce coverage and drainage. Steve Zawotski, Bauer Homes, explained the design of the home. Bauer Homes will take responsibility for site drainage. A redesign of the structurecould be done if no other alternative is available. Member Klausing asked for details on the design process. Bauer expected that the coverage variance could be justified, but recognized the need for a setback variance and assumed the commission could approve it. Daryl Locosio, 233 Merrill, asked if the house was moved forward 3 feet, what impact would there be on the driveway. A general discussion of driveway slope ensued. Chair Harms closed the hearing and noted she has a hard time understanding the physical hardship for the setback. Member Olson suggested a possible redesign or movement to the north. Member Rhody explained this was a good plan. Motion~ Member Rhody moved, seconded by Member Wilke, to recommend approval of variances to reduce the rear setback (by 3 feet to 27 feet) and increase the impervious surface coverage of a parcel in a shore land management district to 35% for the purpose of regrading the site and constructing a single family residence on a pre-existing undeveloped parcel at 1240 Belair Circle, based on the findings in the January 13, 1999 staff report, and with the following