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Supervisor Ferrero and Supervisor Turnboo recommending the Board direct County Counsel and the Chief Administrative Officer to identify methods to assure that if the proposed Costco is approved and begins operation in El Dorado Hills, a portion of the revenue be deposited in a special account dedicated to road improvements and maintenance in El Dorado Hills, 95762 (District 1, 2 & 4). The account will be in addition to any other available funds for general road maintenance.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
Summary of Need: Dedicated Infrastructure Funding (EDH Costco)
While the proposed El Dorado Hills Costco will provide county-wide economic benefits, the primary infrastructure impacts are concentrated within the 95762 ZIP code (Districts 1, 2, and 4). Establishing a special revenue account is essential to address the following critical concerns:
• Unmitigated Traffic Volume: The 2026 Draft Environmental Impact Report (DEIR) confirms that the project will generate significant traffic impacts that standard mitigation measures cannot fully offset.
• Regional Impact: As a 165,000-square-foot regional hub with a 32-position fuel facility, the site will attract high-volume regional traffic to the Silva Valley Parkway and US 50 interchange, far exceeding local use.
• Infrastructure Maintenance: Although current capacity exists, the projected 10,000 to 14,000 daily trips-including heavy fuel truck deliveries-will cause accelerated deterioration of local roads and internal infrastructure.
• Fiscal Responsibility: Given the county’s declining road revenues, a dedicated account ensures that tax revenue generated by this specific project is reinvested directly into the impacted 95762 corridors rather than being absorbed into the General Fund.
Proposed Use of Funds
Dedicated funding will support the intensive rehabilitation and long-term maintenance of high-traffic arterials, specifically Silva Valley Parkway, Bass Lake Road, Green Valley Road, and surrounding residential collector streets impacted by increased commercial cut-through traffic.
ALTERNATIVES
The Board could decide not to allow the road funding.
PRIOR BOARD ACTION
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OTHER DEPARTMENT / AGENCY INVOLVEMENT
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FINANCIAL IMPACT
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CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
CONTACT
Cindy Munt 5650