Sometimes, property lines are not where they ‘should’ be. Visit the planning dept. They will show you on their maps the general property line. If you are close to correct setbacks, then you need to be exact and thus, call a surveyor.
Any chance of loosing the driveway turnabout? That seems like you might gain the necessary distance.
Can’t comment re the elevation difference reducing setback requirement. Again, need to hear it and better yet, read it from the horses mouth. ( city code and planner)
Plus, your diagram need to show full lot and existing structure. Maybe you could pursude city to consider the front yard set back where your driveway enters from the south, instead of the east. Long shot, but worth a try.