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Kaiser Improvement Agreement 2 June 20, 2011 Analysis Kaiser submitted plans, specifications, and an estimate for work within the public right of way on Merced Street and Fairway Drive. The City drafted an agreement regarding the work shown on the plans and specifications, setting forth the responsibilities of each party with respect to the work, including that Kaiser provide a performance bond for the value of the work to ensure its completion. The proposed work includes: 1) moving overhead utilities underground; 2) widening Merced Street from 550 feet north of Republic Avenue to 500 feet south of Fairway Drive; 3) widening Fairway Drive from 200 feet west of Merced Street to Miller Street; installing new traffic signals at Fairway Drive /Miller Street, Fairway Drive /Kaiser entrance (700 feet east of Merced Street) and Republic Avenue /Merced Street; and 4) replacing the existing signal at Merced Street/Fairway Drive. Changes to the roadway include the following: 1) Fairway Drive will have two lanes westbound and one lane eastbound with left turn pockets at signals and driveways from Merced Street to Miller Street. 2) One of the westbound lanes on Fairway Drive will become a right turn lane as it approaches Merced Street. 3) Merced Street will have two travel lanes northbound and southbound from Fairway Drive to Marina Boulevard, which is the same number of lanes that currently exists. 4) Two left turn lanes will be installed from southbound Merced Street into the Kaiser development at Republic Avenue. 5) A left turn lane from northbound Merced Street to Republic Avenue will be installed. 6) A right turn lane will be installed from northbound Merced Street to the Kaiser entrance at Republic Avenue. The public improvements are estimated to cost $9,000,000. Kaiser anticipates completing these improvements by October, 2013. Work of limited scope such as sidewalk replacement or utility work is typically done under an encroachment permit without an improvement agreement. Work of a substantial nature such as that described above is typically done with an improvement agreement which formally specifies the responsibilities of each party. Previous City Council Action(s) • On May 3, 2010, by Resolution 2010 -043, the City Council adopted the Related California Environmental Quality Act (CEQA) Findings and Statement of Overriding Considerations Certifying the Environmental Impact Report (EIR) and Approving the Mitigation Monitoring and Reporting Program for the Kaiser Permanente San Leandro Medical Center and Mixed - Use Development Project • On May 3, 2010, by Resolution 2010 -044, the City Council amended the General Plan Land Use Designation Pursuant to PLN2009 -00030 for the Kaiser Permanente San Leandro Medical Center/ Mixed -Use Retail Development Project Permits and /or Variances Granted Planned Development PLN2009 -00030 has been approved for this project. GA — Council Items In Process\JUN 201Kaiser Improv Agrmt\Kaiser Merced - Fairway Improv Agrmt - MEM.Doc