11 - Laserfiche WebLink

11 THE CITY OF "' 1112°. '"' CITY COUNCIL AGENDA REPORT PLEASANTON. June 21, 2022 Engineering TITLE: PUBLIC HEARING TO APPROVE THE TRAFFIC MITIGATION MEASURES IMPROVEMENT PLANS FOR THE JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE, REVIEW THE FINAL COST ESTIMATE FOR THE TRAFFIC MITIGATION MEASURES, APPROVE AMENDMENT ONE TO THE TRANSPORATION IMPROVEMENT AND COST ALLOCATION AGREEMENT, AND APPROVE SIX PURCHASE AGREEMENTS TO ACQUIRE THE PUBLIC RIGHT-OF-WAY NECESSARY TO CONSTRUCT THE TRAFFIC MITIGATION MEASURES SUMMARY The Johnson Drive Economic Development Zone (JDEDZ) is a project to encourage investment in approximately 40 acres of underutilized land fronting Johnson Drive near Stoneridge Drive and 1-680. The environmental documentation for the JDEDZ Project identified traffic mitigation measures to reduce the impact of traffic from the new land uses proposed in the JDEDZ Project. Costco is a landowner within the JDEDZ Project area and is seeking approvals to construct a new store on its property. The City entered an agreement with Costco in February 2018 wherein Costco committed to design and construct the required traffic mitigation measures and the City agreed to reimburse a portion of the design and construction costs with traffic impact fees and a portion of the sales tax revenues generated by the proposed Costco store. Costco prepared the improvement plans necessary to construct the traffic mitigation measures, but implementation was delayed due to legal challenges associated with the City's JDEDZ Project approval process. Those challenges concluded and the JDEDZ Project cleared to proceed to construction, in April 2022 Costco requested qualified contractors bid on the City -approved improvement plans. As expected, due to the time elapsed since the agreement was executed, the bids received were significantly higher than the "Planning Level Estimate" discussed within the agreement. With the low winning bid amount, a "Final Cost Estimate" has now been prepared as required by the agreement. The difference between the Final Cost Estimate and the Planning Level Estimate is defined within the agreement as "Cost Overruns" which are reimbursable to Costco 60 -days following Costco's submission of the final project cost certification after completion of construction. Since the Cost Overruns are significantly higher than anticipated when the agreement was executed in 2018, if Council is in favor of moving forward with construction at the