you need to work with a pro who has a little creativity because your objections really shouldn't be a big deal. To keep the p/t lumber from being visible, use a stainless steel grommet in the ipe post trim with a hole bigger than the one holding the cable in the p/t post. for the cap rail, do a metal cap rail to meet code, then router a channel in the ipe and mount it to that. Done. It'll take a little bit of design time to ensure that all your proportions are right and everything ties together appropriately and structurally, but there are definitely ways to get the look you want while satisfying the permit store. Obviously not dimensionally accurate or really thought through in terms of attachments, but here's the gist.

The post I mentioned would not be at the bottom tread so the design of a continuous handrail would have to bypass the post to get to a newel at the bottom tread and there would need to be a guard at the new opening whether it be solid, balusters, etc. At first glance it seems a potentially messy solution. Perhaps the handrail could be at the other side and the guard could terminate at the post. The bottom tread should have had returns at each side. Its looks like a abasement stair in the entryway.

OK, you all have convinced me to eliminate the oak look of the risers. While I'm too conservative to paint them, I'm thrilled with the many options for stick on riser decals that can be readily removed, including one with the pattern I've been nuts about for ages! It's called Astra, here. BUT -- back to the newel post/handrail for the upper section of this stairway.....previous comments were that we don't have the open wall for the spindles and we have no place for a newel post. I need to understand if the change I want to make isn't feasible, when it seems to me like it should be...please helps!

So, the county plans to pave the space? Do they have a timeframe? I'd talk to the County Planner and ask for his suggestions. You can put forward the position that creating public parking will create more hazard for your property then leaving it garden. And this means you'll going to incure greater expense for the railing. See if they can help or add the railing to their portion of the property.