City Council
Report
City Council Meeting: September 8, 2026
Agenda Item: 4.E
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Engineering Services Division Subject: Authorization of a Cooperative Agreement with the California Department of Transportation (Caltrans) for Local Improvements and Design and Construction Services for the PCH/Lot 1 North Traffic Signal Project Recommended Action
Staff recommends that the City Council:
1. Adopt findings of categorical exemptions pursuant to Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to negotiate and execute an Agreement with the California Department of Transportation (Caltrans), for Local Improvements and design and construction services for the PCH/Lot 1 North Traffic Signal Project for the Public Works Department. This is for a total amount not to exceed $2,000,000, with future year funding contingent on Council budget approval.
Summary
Caltrans is advancing the Pacific Coast Highway Pavement Rehabilitation - Project II, a pavement rehabilitation and safety improvement project on Pacific Coast Highway (PCH) between the McClure Tunnel in Santa Monica and Cross Creek Road in Malibu (Attachment A). The project will rehabilitate 57 miles of pavement and improve safety and accessibility by upgrading curb ramps, guardrails, lighting, sidewalks, signs, bicycle lanes, and roadway striping. City Council recently funded a capital project to install a new traffic signal on PCH at the exit of City Beach Parking Lot 1 North (Lot 1N), located at 1550 PCH. This parking lot supports access to the Santa Monica Pier, beach, and surrounding recreational and event areas. During periods of heavy use, particularly during busy summer weekends, vehicles attempting to exit the lot and travel southbound must wait for an acceptable gap in PCH traffic. The City’s project would 2 of 5
install a traffic signal to control southbound PCH traffic and assist vehicles in the parking lot to turn right and travel southbound on PCH. This traffic signal would not impact or change northbound PCH and would not facilitate left turns out of the lot onto northbound PCH. The City’s and State’s projects complement each other, and to efficiently execute the design and construction of the City’s project, staff is proposing to incorporate the City’s project into Caltrans’ larger project.
A Cooperative Agreement for Local Improvements would define each party’s responsibilities and allow the City to reimburse Caltrans for design, permitting, and construction. Staff recommends that the City Council authorize the City Manager to negotiate and execute a cooperative agreement with Caltrans in an amount not to exceed $2,000,000.
Discussion
Within the City of Santa Monica, Pacific Coast Highway (PCH), designated as State Route 1 (SR-1), is under the jurisdiction of the California Department of Transportation (Caltrans) from the McClure Tunnel to the City’s northern boundary. Caltrans is currently in the design phase for a PCH Pavement Rehabilitation Project which includes improvements between the McClure Tunnel to just south of Cross Creek Road in the cities of Santa Monica, Los Angeles, and Malibu.
City Council recently approved the FY2026-28 Capital Improvement Program Biennial Budget, which included a Project to construct a new traffic signal at the Lot 1N exit as a complementary local safety improvement (See Figure 1). The signal would provide a controlled break in southbound PCH traffic so vehicles exiting Lot 1N could turn right and travel southbound. By creating controlled gaps in southbound PCH traffic, the proposed signal is intended to improve egress from Lot 1N, reduce bottlenecking within the parking lot, improve parking turnover, and support traffic operations associated with increased use of the Pier and Lot 1N for major events. This improvement would enhance safety and mobility, consistent with the goals of Caltrans’ PCH Pavement Rehabilitation Project and the City’s Vizion Zero policy. 3 of 5
Figure 1. Project Location Map
The City’s proposed traffic signal complements Caltrans’ PCH Pavement Rehabilitation Project and provides an opportunity to effectively deliver both projects through a coordinated design and construction effort. To facilitate this approach, the City and Caltrans have negotiated a Cooperative Agreement for Local Improvements that establishes each agency’s responsibilities for delivery of the project.
Under the proposed agreement, Caltrans would obtain the necessary permits, prepare the Plans, Specifications, and Estimate, administer right-of-way activities, manage the construction contract, and oversee construction of the traffic signal improvements as part of the larger Caltrans project. Caltrans would separately track the construction costs attributable to the City-requested improvement and provide a final accounting upon completion of the work. The City would reimburse Caltrans for eligible project costs in accordance with the cooperative agreement, which establishes an estimated City obligation not-to-exceed $2,000,000.
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Approval of this cooperative agreement would allow Caltrans to continue incorporating the City-requested signal into their overall project design schedule.
Environmental Review
The proposed traffic signal improvement is part of the California Department of Transportation's (Caltrans) Pacific Coast Highway Pavement Rehabilitation Project. As the lead agency for the project, Caltrans is responsible for complying with the California Environmental Quality Act (CEQA), including completing the appropriate environmental review and making all required determinations prior to construction. The City Council's action authorizes the City Manager to execute a Cooperative Agreement with Caltrans for the design and construction of the project and does not alter Caltrans' lead agency responsibility for environmental review. The City, as a responsible agency, has determined that the project is exempt from CEQA pursuant to Section 15301 (Existing Facilities) and Section 15311 (Accessory Structures) of the CEQA Guidelines. Section 15301 provides an exemption for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. This includes the addition of safety devices for use during construction or in conjunction with existing structures, facilities, mechanical equipment, or topographical features including navigational devices. Section 15311 provides an exemption for construction or placement of minor structures accessory to existing facilities, including traffic control devices. The project involves installation of a new traffic signal at the existing Lot 1 North driveway on Pacific Coast Highway, which would enhance operation and improve safety and would not expand use of the roadway network. Therefore, the project is categorically exempt from CEQA pursuant to Section 15301 and Section 15311 of the CEQA Guidelines.
Financial Impacts and Budget Actions
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Staff seek authority to approve available funding from the General Fund to execute an agreement with Caltrans for design, permitting, and construction of the PCH/Lot 1 North Traffic Signal Project. Future year funding is contingent on Council budget approval.
Contract Request
FY 2026-27
Request Amount Future Years CIP Account # Total Contract Amount $200,000 $1,800,000 C0109360. 689000 $2,000,000
Prepared By: Matthew Hoffman, Civil Engineering Associate Approved Forwarded to Council
Attachments:
A. Caltrans: Pacific Coast Highway Pavement Rehabilitation - Project II (Weblink) B. Caltrans: Pacific Coast Highway Pavement Rehabilitation - Project II (PDF version of attachment A weblink)