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dollars for the new project, he asked what this equates to losses in sales dollars to the existing grocery stores in the City. Ms. Wagner replied that it varies by grocery store. Currently, the average sales per store are above average. Therefore, with above average sales, there is actually room for an additional grocery store. When the analysis is done with the addition of the Safeway Store, it takes that average sale down to "good ". Therefore, one could say the capacity for an additional store has been absorbed once this project is approved. Traffic Engineer Tassano presented traffic analysis, stating that staff covered many alternatives with the project, looked at the AM and PM peak traffic, restricted and full access to Bernal Avenue, a modified full access to Bernal Avenue, near term and build out conditions, and a phased out approach. He said staff settled on a modified full access to Bernal Avenue, which means that Bernal at Koll Center will be full access to the property to the south, but will only contain its existing access to the property to the north. So, while a left turn can be made into the Koll Center to the north and a right turn out, you will not be able to make a left turn or through movement out of there. The full access is to the Safeway location. He shared the phased approach which is what Gateway would like to take with this project. He broke it down in two traffic volumes, both AM and PM peak hours for each of the developments, the Safeway lifestyle traffic volumes, the neighborhood commercial, the gas station and the pharmacy. It totals 683 PM peak hour trip for Phase I. Phase II would include the 588,000 square feet of office which would be an additional 877 PM peak hour trips. Councilmember Sullivan questioned where funding comes from for the two improvements. Mr. Tassano said they are currently funded through the Bernal Interchange Corporation. Mayor Hosterman questioned the opportunity of improving the right turn onto northbound 1 -680 without having to remove trees. Mr. Tassano said instead of creating a free right turn, they would have to shift the lanes to the north which would end up creating a new 12 -foot lane next to the sidewalk where there is a line of trees. He said the previous design had the full 550 feet constructed for the right turn pocket which would shift everything to the north and take out those trees. If staff retains that right turn pocket, instead of building additional capacity they would switch the thru lane to combine thru right hand turn lanes. Councilmember McGovern said the City will have to put more signals on Valley anyway, and at Paseo Santa Cruz and others. Mr. Tassano said this is in the General Plan, although the current direction is to hold off until such a time that it is required for more than just a few minutes in the peak. Mr. Dolan said staff and the Planning Commission also requested the applicant provide visual simulations from various viewpoints, and he presented this from the freeway looking from the first corner, and from two locations from the off-ramp when turning right on Bernal. The landscaping is lush in the area and only small views of the buildings would be seen. Councilmember McGovern confirmed the sidewalk in the area exists and is incorporated into the site plan. Councilmember Sullivan said the City is embarking on looking at other places where residential can be built, and this site has been one of those potentially considered. He asked how the traffic between the proposed office project compares to the 30 unit to the acre residential at Hacienda BART station. Mr. Tassano said in looking at the highest intensity use on the remaining 26 acres which would be assumed to be the 588,000 square feet of office, if converted into City Council Minutes Page 5 of 13 October 19, 2010