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approval to construct a new Costco store. The Agreement provides the process to fund, design, and construct the traffic mitigation measures identified by the CEQA documentation as necessary for the JDEDZ Project. In short, Costco is to pay all costs to design and construct the traffic mitigation measures and the City is to pay all costs to acquire the needed right-of-way, with the balance of the Agreement specifying the reimbursement process and other legal requirements. In May 2018, City Council adopted the JDEDZ Transportation Fee, applicable to the approximately 20 acres of "non -Costco" properties in the JDEDZ Project Area to fund their share of the required traffic mitigation measures. The creation of the JDEDZ Transportation Fee was a requirement of the Agreement. When the Agreement and the JDEDZ Transportation Fee were approved in 2018, construction of the public street improvements was expected to begin as soon as the JDEDZ Traffic Mitigation Measures Improvement Plans (improvement plans) were complete. However, CEQA challenges to the JDEDZ Project approval process ensued which kept construction of the traffic mitigation measures from moving forward as quickly as expected. Over the last four-plus years, there has been litigation, a rescission and reapproval of various JDEDZ Project documents, and most recently, the denial of an appeal challenging an earlier court ruling in favor of the JDEDZ Project. For the purposes of this agenda report, it is not necessary to review the history in detail, but throughout the extended delay City staff and Costco have continued the efforts as outlined within the Agreement to implement the JDEDZ Project. City staff worked with Costco representatives to prepare the biddable improvement plans to construct the traffic mitigation measures. The improvement plans consist of the Stoneridge Drive and 1-680 Project (as named in the Agreement) and the JDEDZ Street Improvements (as also named in the Agreement), which together include the five traffic mitigation measures identified as necessary in the CEQA documentation. Costco and City staff have obtained the necessary permits to construct the traffic mitigation measures in accordance with the improvement plans. Purchase agreements for the right-of-way and temporary construction easements necessary to construct the traffic mitigation measures have been negotiated. Finally, Costco issued a request for bid package to publicly bid on the improvement plans in late March 2022, and bids were publicly opened on April 29, 2022. Although the work required to construct the traffic mitigation measures has not changed, the bids received on April 29, 2022, were significantly higher than the "Planning Level Estimate" prepared in 2017 and discussed within the Agreement. Higher costs were expected as construction prices have increased significantly from what they were five years ago. The 2017 estimate of the total cost of constructing the traffic mitigation measures was $21,470,000. Of this amount, $7,110,000 was for the Stoneridge Drive and 1-680 Project, $12,860,000 was for the JDEDZ Street Improvements, and $1,500,000 was for the right-of-way needed to construct the JDEDZ Street Improvements. The Planning Level Estimate represented the total cost of constructing the traffic mitigation measures including design, construction, right-of-way acquisition, Page 3 of 11