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BACKGROUND On June 3, 2014, the City Council approved PUD-101 (Kottinger Gardens) a Planned Unit Development application by MidPen Housing Corporation (MidPen) to construct 185 senior homes and related site improvements located at 240 and 251 Kottinger Drive. Both properties are owned by the City of Pleasanton. The project will be constructed in two phases. Phase 1, which is now complete and located at 240 Kottinger Drive, replaced the existing 50 senior homes of Kottinger Place with one 78,010 square-foot, three-story building and nine separate single-story buildings that will provide a total of 131 senior homes. The improvements also included the installation of a public water main on Kottinger Drive and First Street to serve the development. Phase 2, which is now under construction, will replace the existing 40 senior homes of Pleasanton Gardens, located at 251 Kottinger Drive, with one 31,600 square-foot, two-story building and four separate single-story buildings that will provide a total of 54 senior homes. In March 2016, MidPen entered into two public improvement agreements, one for the installation of the aforementioned public water main and one for the construction of public improvements along the project frontage of 240 Kottinger Drive. The agreements provided for improvement security to ensure the construction of the public improvements. Accordingly, MidPen submitted improvement security in the form of performance bonds and labor and materials bonds, in the total amount of: • $373,500 —for the installation of a public water main on Kottinger Drive and First Street • $114,100 —for the construction of public improvements along the project frontage of 240 Kottinger Drive Subsequently in March 2016, two encroachment permits were issued, one for the public water main and one for the public improvements along the project frontage. Construction started soon thereafter. MidPen has completed the Phase I public improvements and has requested release of the improvement security. Staff inspected the work and determined that the public improvements are complete and ready for acceptance. DISCUSSION The two public improvement agreements provided for the construction of the following Phase I public improvements: Public Water Main • Replaced the existing 16-inch diameter water main that was located on the 240 Kottinger Drive property with a new 16-inch diameter ductile iron water main installed along Kottinger Drive (between the project site and First Street) and First Street (between Kottinger Drive and Vineyard Avenue). The improvements included the replacement of twelve existing water services with meter boxes and one fire hydrant on First Street. See Attachment 1 for the limits of the new water main. Page 2of3