That the City Council:
A. Approve and authorize the City Manager to execute the Cooperative Agreement with the City of Fullerton for the Las Palmas Drive Street Improvements Project, and;

B. Approve a budget appropriation of $80,000 from available Gas Tax funding.

In 2025, staff from the City of Fullerton initiated discussions with City of La Habra engineering staff to pursue a collaborative effort to repave Las Palmas Drive, from Harbor Boulevard to Puente Street. The portion of roadway within the City of La Habra's jurisdiction spans Las Palmas Drive from Harbor Boulevard to approximately 200 feet east of Harbor Boulevard with portions of the road partially shared with the City of Fullerton. Staff from both cities have collaborated to prepare a cooperative agreement for the project, which 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 terms of the Agreement, subject to City Council approval, the City of Fullerton will serve as the lead agency for the Project. The Las Palmas Drive Street Improvements Project will entail repaving, curb and gutter, sidewalk and driveway replacements from Harbor Boulevard to Puente Street. La Habra's portion will encompass approximately 5,600 square feet, from Harbor Boulevard to the East City Limits.

Staff recommends that the City Council approve the Cooperative Agreement for the Las Palmas Drive Street Improvements Project and authorize the City Manager to execute the Agreement on behalf of the City. If approved, construction is anticipated to begin in Summer/Fall 2026.

The City's share of the project costs, including design and construction, is estimated at $80,000. To ensure full project funding, staff recommends an appropriation of $80,000 from unencumbered Gas Tax funding, which is available and designated for street improvement projects.