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what level of reserves is kept, i.e. one year's operating budget. The Committee will report their findings to the Council in January or early February 2004. OPENED PUBLIC HEARING CLOSED PUBLIC HEARING Mayor Pro Tem -O'Malley explained that the New Town Hall project budget is $3,764,924. MOTION SECONDED AND CARRIED: Moved by Kerr, seconded by Fenwick and passed unanimously to approve the New Town Hall budget of $3,764,924. and to determine the financing vehicle for the project at a later date. 11.3 Request for a Conservation Easement Agreement with exceptions to allow for any structure or use, which would not otherwise violate the provisions of the Zoning Law of the Town, in certain areas of the existing Conservation Easement; Lands of Kerns, 11888 Francemont Drive (Upper Parcel) (File#130-03-ZP-SD) (Continued 11-06-03) Planning Director Carl Cahill introduced this item to Council. He proceeded with a power point presentation for background information. The property parcel that is being considered was originally owned by Stephen Gaither. As part of the subdivision in 1989, 12 acres were conveyed to the Town in a conservation easement on 11888 Francemont • Drive. Future development of the property was limited to the lower portion of the property and an approximate 1.68 acre site on the ridge top. In August, 2000, after considerable public debate, the City Council granted the applicants' (Lands of Kerns) request for a Site Development permit to construct a new residence on the upper site of the 21 acre property and an exception to allow a driveway to encroach within the conservation easement. In November, 2002, the City Council repealed a previous Council condition that prohibited further subdivision of the .property and granted the applicants' (Kerns) request to subdivide their property into two parcels subject to implementing certain conditions and environmental mitigation measures including a requirement that the applicants were to convey a 28,000 square foot conservation easement to the Town on the lower 7.55 gross acre parcel. The land within this easement contains an average slope in excess of 55%, heavy tree coverage and areas of geological instability. Cahill reviewed the State Subdivision Map Act Section 66474 and pertinent Town General Plan sections with the Council. Cahill noted that in July, 2003 the applicants submitted an application request to vacate a 19,300 square foot portion of conservation easement west of the new residence and an 8,700 square foot portion along the driveway. Contrary to the applicants claim that their conveyance of the conservation easement for the subdivision obligates the Town to vacate the upper backyard area easement and a portion of the easement, the Town is not obligated. Cahill added that at no time has staff indicated that the conservation easement on the upper property could be successfully vacated at a later date. Upon receipt of the 13 City Council Meeting Minutes November 20,2003