City Council

7. APPROVAL OF COST-SHARING AGREEMENT WITH COSTCO WHOLESALE CORPORATION FOR THE EL CAMINO REAL / AUTO CENTER DRIVE TRAFFIC SIGNAL IMPROVEMENT PROJECT Staff is recommending that the City Council approve a Traffic Signal Cost-Sharing Agreement with Costco Wholesale Corporation. The agreement establishes shared financial responsibilities for the Traffic Signal Improvement Project at the intersection of El Camino Real and Auto Center Drive. This agreement has been reviewed and approved as to form by Costco and the City Attorney’s Office. The total estimated project cost is $250,000 and per the agreement, Costco would reimburse the City for 50% of the actual project cost up to $125,000. Recommendation: It is recommended that the City Council: 1. Approve the Traffic Signal Cost-Sharing Agreement between the City and Costco Wholesale Corporation for the Traffic Signal Improvement Project at El Camino Real /Auto Center Drive intersection; and 2. Authorize the City Manager or his designee, the Director of Public Works, and the City Clerk to execute the agreement on behalf of the City. Fiscal Impact: Sufficient funds in the amount of $100,000 for the project design phase have been appropriated in the Fiscal Year 2025-26 Capital Improvement Program Budget. Funding for the construction phase will be requested through a future City Council action as part of the Fiscal Year 2026-27 budget process.