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MINUTES Page 8 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-Apri17, 2008 the interchange improvements is estimated to be $27 million. A portion of the financial obligation will be borne by the surrounding properties, which will be assessed a fee for future development. TJKM Traffic Consultants will work with City staff to determine the assessment values for the various properties. This fee would be in addition to the DFSI. Councilmember Starosciak commented that, as a member of the CMA, it is timely that the City is able to utilize this fair share funding to accomplish the planning work for the interchange. She asked whether the necessary improvements to Merced Street and Fairway Drive, such as utility undergrounding and street widening, would be included as part of this action. Mr. Jermanis indicated that those types of improvements would be an additional obligation. M/S/C Prola and Souza. Ayes: 7; Noes: 0 8.H. Resolution No. 2008-036, Resolution Authorizing the City Manager to Enter into a Memorandum of Understanding Between the City of San Leandro and Kaiser Permanente Relating to the Interstate 880/Marina Boulevard Interchange Project and the Medical-Retail Complex (provides acceptance of Kaiser's fair share for the cost of improving the I-880/Marina Boulevard Interchange). (3098) Councilmember Prola referred to the cost estimate of the project, asking how it had been refined downward from $33 million to $27 million, as noted on page 3 of the Memorandum on Understanding (MOU). City Engineer Ken Joseph stated that the $33 million was a preliminary estimate. Based on additional information, a further refinement of the project estimate was made. Councilmember Prola pointed to the provision on page 5 of the MOU, exempting Kaiser from future costs related to the project in exchange for the timely payment of the Medical-Retail Contribution, and asked if this arrangement is common to this type of agreement. Mr. Joseph indicated that the amount was based on the estimate of Kaiser's impact to the traffic at the interchange, and so should not change. Mr. Jermanis noted that the exception allows the City to use the funds to advance the project so that the work is underway when the hospital opens. Councilmember Gregory commended all the parties for planning for the improvements to accommodate the traffic generated by the hospital. M/S/C Prola and Souza. Ayes: 7; Noes: 0 10. ACTION ITEMS Public comments are limited to 3 minutes per speaker per item, subject to adjustment by the Mayor. A. Report on Closed Session Actions Taken