Tustin council approves 50/50 cost share with Costco for El Camino Real traffic-signal safety project

The Tustin City Council voted 5-0 to approve a cost-sharing agreement with Costco Wholesale Corporation to pay half of the costs for traffic-signal safety improvements at El Camino Real and Auto Center Drive.

Councilmember Merrill Fink said he was concerned the traffic problems stemmed largely from the Costco gas station approved in 2019 and worried the city could end up absorbing a significant portion of mitigation costs. “I’m concerned that even though Costco and the city are agreeing to split the cost of this traffic plan, it still seems that the genesis of this is the Costco gas station,” Fink said.

Public Works staff member Mike Grissow told the council that the intersection had seen an uptick in collisions and that the city evaluated the location with partner agencies and Costco’s own traffic engineer. Grissow said traffic movements associated with the Costco gas station represent about 10% of daily traffic at the intersection and that the city’s engineers did not conclude the gas station alone was solely responsible for the collisions. “As a public works department and as a city, our first and foremost consideration is overall city safety,” Grissow said, explaining staff recommended a 50/50 cost-share to achieve a safe outcome for all parties.

Councilmember Aaron Nielsen and Mayor Pro Tem Chanel emphasized the safety rationale and noted the revenue benefit of having two Costco locations in Tustin, with Nielsen calling the company’s offer to pay half the cost “a deal and a half.” Councilmember Gallagher, who served on the planning commission when the Costco was approved, said the proposed changes would improve safety and that the infrastructure could be modified in the future if traffic patterns change.

Councilmembers debated whether to postpone the item for further detail, but after additional comments and staff assurances about design flexibility and review, a motion to move the item was made, seconded and approved by roll call (Yes: Nielsen, Fink, Gallagher, Mayor Pro Tem Chanel, Mayor; Motion passes 5-0).

According to staff, the city will begin a design effort expected to take up to three months; following design and the public bidding process, full construction from start to finish is estimated at roughly six to 12 months depending on the ground-breaking schedule. The council authorized moving forward with the cost-share agreement and directed staff to return with plans, specifications and the bid schedule for future council approval.