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BACKGROUND In July, 2000, the City Council approved Kaiser Aluminum and Chemical Corporation's Planned Unit Development (PUD) application for a master plan and design guidelines that allowed for the development of up to 960,000 square feet of office/research and development/light industrial buildings to be located on the subject parcel. Shortly after receiving Council approval, Kaiser sold the property to Applied Biosystems. As part of the off-site mitigation for this project, Applied Biosystems widened Sunol Boulevard between I-680 and Valley Avenue (Junipero Street) including a pavement overlay with sound-attenuating open-graded asphalt and the installation of raised medians with landscaping. This work has been completed and the street improvements have been in use for several years. At this time, Applied Biosystems is asking the City to approve a reimbursement agreement whereby property owners along Sunol Boulevard that benefited from the street widening would pay Applied Biosystems apro-rata share of the cost of the improvements when their properties develop, subdivide or redevelop. DISCUSSION Shortly after the City accepted the street improvements on Sunol Boulevard, Applied Biosystems asked staff to consider entering into a reimbursement agreement whereby other property owners with properties along Sunol Boulevard that directly benefited from the improvements installed by Applied Biosystems would pay a share of those street improvements. At that time, staff asked Applied Biosystems to determine what costs it felt would be eligible for reimbursement, as the street widening project had many contract change orders due to unknown site conditions that were not apparent until construction began. Additionally, it was necessary to segregate change orders according to what property benefited from which improvements. Staff has spent a considerable amount of time working with the Applied Biosystems staff reviewing the invoices and now concurs with the eligible costs for reimbursement. The Reimbursement Agreement provides that the City will collect reimbursements for the widened Sunol Boulevard from those benefited properties that subdivide, redevelop or make substantial improvements to their property (in excess of 50 percent of present day value of the property). As is common with the City's reimbursement agreements, the term of this Agreement will expire 10 years after the City approves this agreement. A summary of proposed reimbursements for each benefiting property is attached as Table I. Page 2 of 3