That the City Council approve and authorize the City Manager to execute the Cooperative Agreement with the Cities of Fullerton and Brea for the Palm Street Rehabilitation Project.

In 2024, the City of Fullerton initiated discussions with the City of Brea and City of La Habra to pursue a collaborative effort to repave Palm Street, from Imperial Highway to La Habra Boulevard. The portion of roadway within the City of La Habra's jurisdiction, spanning from Lambert Road to La Habra Boulevard, is partially shared with the City of Brea. City staff have worked collaboratively with both cities to develop a cooperative agreement for the project. The Agreement outlines the project’s scope, including engineering design and construction, as well as the roles, responsibilities, terms, and conditions for each participating agency. 

Under the Agreement, the City of Fullerton will serve as the lead agency for the Project. The Palm Street Rehabilitation Project will include the repaving of approximately 394,000 square feet of roadway from Imperial Highway to La Habra Boulevard. La Habra's portion will cover approximately 95,500 square feet, from Lambert Road to Skywood Street.

Staff recommends that the City Council approve the Cooperative Agreement for the Palm Street Rehabilitation Project and authorize the City Manager to execute the Agreement on behalf of the City. If approved, construction is anticipated to begin in Summer 2026.

Funding for the Palm Street Rehabilitation Project is included in the approved Fiscal Year 2025-2026 CIP Budget. The City's share of the project costs, including design and construction, is estimated at $935,000. The project is being funded through Measure M2 Fair Share Funds, and sufficient funds have been budgeted; therefore, no additional appropriations is required at this time.