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For the 4.D-lc area (intersection improvements): The cost for the easement area within the intersection improvements is $1,023,998. 50% of the costs totaling $511,99 will be reimbursed to Costco by returning 40% of sales tax revenue once the store is operational. For the 4.D-1d area (westbound Stoneridge Drive): The cost for the easement area for the Stoneridge Drive is $274,742 and fully the responsibility of the City. Costco will be reimbursed following the completion of the project through the Johnson Drive Economic Zone, CIP 18531. BACKGROUND The City initiated the JDEDZ in 2014 to spur investment in 40 acres of underutilized land primarily fronting Johnson Drive near Interstate 680 and Stoneridge Drive. The City subsequently executed a Transportation Improvement and Cost Allocation Agreement with Costco in 2018 to fund needed roadway improvements on Johnson Drive, Stoneridge Drive, and the northbound 1-680 freeway on-ramp. The improvements will address expected traffic growth from development within the JDEDZ as well as regional growth within the community. The costs for these improvements will be shared between the City and Costco, with additional outside funding allocated by the Alameda County Transportation Commission. DISCUSSION The proposed road widening along Stoneridge Drive and Johnson Drive for the JDEDZ will encroach onto DSRSD's biosolids land treatment facility. The compensation amount to be paid to DSRSD for the Grant of Easement was based on an appraisal prepared by Associated Right-of-Way Services (ARWS). ARWS determined the fair market value of the land to be $1,148,000. In addition, DSRSD required compensation for "loss of utility" based on biosolids land taken out of service. The biosolids land will eventually be converted to a different system for dewatering and disposal. DSRSD determined the percentage of biosolids land taken out of service and applied this percentage to the capital cost of the future dewatering and disposal system which equated to a loss of utility of$150,740 or 0.04%. The land value plus loss of utility therefore totals $1,298,740. Submitted y: Fiscal Review: Approv by: 46,/ Brian Dolan Tina Olson Nelson Fialho Assistant City Manager Director of Finance City Manager Page 2 of 3