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seeks approval to construct a new Costco store. The 2018 Agreement provides the process to fund, design, and construct the traffic mitigation measures identified as necessary by the JDEDZ Project CEQA documentation. 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 2018 Agreement specifying the final cost-sharing arrangement, the cost reimbursement process, as well as 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. Payment of the JDEDZ Transportation Fee is due when a "non-Costco" property owner in the JDEDZ Project area chooses to develop or redevelop. The JDEDZ Transportation Fee is the mechanism by which "non-Costco" properties in the JDEDZ Project area pay their share towards the design and construction of the traffic mitigation measures required for their development. The creation of the JDEDZ Transportation Fee was a requirement of the 2018 Agreement. When the 2018 Agreement and the JDEDZ Transportation Fee were approved, 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 this agenda report, it is not necessary to review the JDEDZ Project approval history in detail, but throughout the extended delay City staff and Costco have continued the efforts as outlined within the 2018 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 2018 Agreement) and the JDEDZ Street Improvements (as also named in the 2018 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 bid package based upon California Public Contract law and ACTC requirements requesting interested general contractors bid on the improvement plans in late March 2022. Bids were received and 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 2018 Agreement. Higher costs Page 3 of 12