Santa Cruz County Transit and Transportation Agency Meetings - Audio Tracks

Q&A - part 1 - Coastal Trail Project Delivery

The same as Part 5 but without the long introduction and project background.

Overview

• Coastal Rail Trail Segments 8-11 face significant funding and delivery challenges.
• Escalating costs and funding gaps threaten project timelines and scope.
• Multiple phasing and scope reduction options analyzed; none fully close the funding gap.
• $19.5M federal RAISE grant and $20.5M Safe Streets for All grant (pending) are key funding sources.
• Measure D sales tax is critical for leveraging state and federal funds, but is insufficient for full buildout.
• Project delivery is at risk due to strict grant deadlines and limited new funding opportunities.

Project Introduction and Recusal for Conflict of Interest

• Coastal Rail Trail Segments 8-11 project delivery discussed.
• Chair Montecito recused due to conflict of interest.
• Planning grant for Watsonville circulation pursued, supporting previous Reconnecting Communities grant application.
• Focus on future project planning in City of Watsonville.

Project Overview, Funding Success, and Challenges

• Coastal Rail Trail is a 32-mile multi-use path from Davenport to Pajaro.
• Project divided into segments; current focus on segments 8–11 (Santa Cruz to Aptos).
• Project approval and environmental phase began in 2020; construction scheduled for 2027.
• Construction expected to take 2–4 years; significant time spent on environmental review and design.
• Recent efforts focus on cost reduction and project delivery strategies due to funding shortfalls.

Cost Escalation, Funding Gaps, and Phasing Options

• Value engineering analysis and MOU with Roaring Camp completed to reduce track relocation costs.
• Secured $19.5M federal RAISE grant; City of Santa Cruz applied for $20.5M Safe Streets for All grant.
• Coastal Rail Trail segments 8–11 require additional funding for final design and construction by 2027.
• Existing grants do not cover cost increases; new state and federal funding is scarce and competitive.
• Project phasing and scope reduction options analyzed, but even minimal reductions exceed available Measure D revenues.

Financial Scenarios, Grant Assumptions, and Feasibility Analysis

• Future project phases require funding; no identified source yet.
• Assumed minimum local match is 20% of project cost; higher match increases competitiveness.
• Option C funds 1.5 of 6.5 miles with Measure D, leaving ~$20–21M for future phases or matching.
• Financial analysis excludes potential $20M Safe Streets for All grant.
• Ongoing cost tracking; current funding gap addressed via Consolidated Grant Program application, with decisions expected in November.

Distribution of Funds and Project Wrap-Up

• Majority of funds distributed to city and county of Santa Cruz.
• Significant portion allocated to corridor maintenance.
• Some funding dedicated to city of Watsonville.
• Project concept report used for trail alignment development in Watsonville.
• Regional portion of North Coast Trail under development.

Overview

• Coastal Rail Trail Segments 8-11 face significant funding and delivery challenges.
• Escalating costs and funding gaps threaten project timelines and scope.
• Multiple phasing and scope reduction options analyzed; none fully close the funding gap.
• $19.5M federal RAISE grant and $20.5M Safe Streets for All grant (pending) are key funding sources.
• Measure D sales tax is critical for leveraging state and federal funds, but is insufficient for full buildout.
• Project delivery is at risk due to strict grant deadlines and limited new funding opportunities.

Project Introduction and Recusal for Conflict of Interest

• Coastal Rail Trail Segments 8-11 project delivery discussed.
• Chair Montecito recused due to conflict of interest.
• Planning grant for Watsonville circulation pursued, supporting previous Reconnecting Communities grant application.
• Focus on future project planning in City of Watsonville.

Project Overview, Funding Success, and Challenges

• Coastal Rail Trail is a 32-mile multi-use path from Davenport to Pajaro.
• Project divided into segments; current focus on segments 8–11 (Santa Cruz to Aptos).
• Project approval and environmental phase began in 2020; construction scheduled for 2027.
• Construction expected to take 2–4 years; significant time spent on environmental review and design.
• Recent efforts focus on cost reduction and project delivery strategies due to funding shortfalls.

Cost Escalation, Funding Gaps, and Phasing Options

• Value engineering analysis and MOU with Roaring Camp completed to reduce track relocation costs.
• Secured $19.5M federal RAISE grant; City of Santa Cruz applied for $20.5M Safe Streets for All grant.
• Coastal Rail Trail segments 8–11 require additional funding for final design and construction by 2027.
• Existing grants do not cover cost increases; new state and federal funding is scarce and competitive.
• Project phasing and scope reduction options analyzed, but even minimal reductions exceed available Measure D revenues.

Financial Scenarios, Grant Assumptions, and Feasibility Analysis

• Future project phases require funding; no identified source yet.
• Assumed minimum local match is 20% of project cost; higher match increases competitiveness.
• Option C funds 1.5 of 6.5 miles with Measure D, leaving ~$20–21M for future phases or matching.
• Financial analysis excludes potential $20M Safe Streets for All grant.
• Ongoing cost tracking; current funding gap addressed via Consolidated Grant Program application, with decisions expected in November.

Distribution of Funds and Project Wrap-Up

• Majority of funds distributed to city and county of Santa Cruz.
• Significant portion allocated to corridor maintenance.
• Some funding dedicated to city of Watsonville.
• Project concept report used for trail alignment development in Watsonville.
• Regional portion of North Coast Trail under development.

Overview

• Caltrans announced the 2026-27 Sustainable Transportation Planning Grant Program is open for applications, with $17.5M available for sustainable communities planning, $1.5M for strategic partnership planning, and $3M for transit partnerships.
• Multiple emergency and planned infrastructure projects are underway, including drainage repairs, retaining wall replacements, and erosion control, with key completion dates in December 2025 and Spring 2026.
• Ongoing efforts to improve temporary traffic signals and minimize disruption for travelers and cyclists.
• RTC is preparing grant applications for corridor planning and resiliency studies, including updates to the Comprehensive Multimodal Corridor Plan and potential bus-on-shoulder studies.

Caltrans Grant Program Announcement and Details

• Caltrans 2026-27 Sustainable Transportation Planning Grant Program applications open; due September 21.
• Total funding: $17.5M for Sustainable Communities, $1.5M for Strategic Partnership Planning, $3M for Strategic Partnerships in Transit.

Project Updates: Emergency Repairs and Traffic Management

• Drainage repair and retaining wall emergency project underway between Prospect and Lorenzo, south of Boulder Creek.
• Temporary signal initially caused delays due to fixed timing and extra cyclist time; reprogrammed with traffic sensor and push button for cyclists.
• Construction completion anticipated December 2024.
• Drainage and erosion control project on Highway 9 at 17 locations between Bin Le Mans and near 935 intersection.
• Second temporary signal for Highway 9 project planned for spring 2026; signals will not operate simultaneously.

Commissioner Q&A: Ramp Closures and Design Issues

• Bay Porter off-ramp closure dates unavailable; follow-up pending.
• Paper Avenue ramps have a design issue under review with Caltrans.
• Unidentified elements in design plans caused a pause and redesign consideration.
• Ramp closure delayed to avoid unnecessary closure without a solution.

RTC Grant Applications and Corridor Planning Discussion

• RTC plans to submit a Caltrans Sustainable Planning Grant application to update the Comprehensive Multimodal Corridor Plan.
• Plan update covers Soquel Drive/Freedom Boulevard, Highway 1, and Santa Cruz Branch Rail Line.
• Bus-on-shoulder extensions and other improvements may be included in the plan update.
• RTC previously awarded $128.7 million from the Solutions for Congested Corridors Program in June.
• Additional planning grants under consideration include studies on branch line resiliency at more locations.

Public Engagement, Town Hall, and Closing Remarks

• Public town hall on state of roads scheduled for November 13th, 6 p.m., focusing on District 5, Santa Cruz County, San Lorenzo Valley, Highway 9.
• Commissioner Keaton requested a briefing on PRT and offered to help coordinate a meeting with Carl Gardena from CTC regarding ongoing issues.

These podcasts were taken from Community TV's original video. It is available here:

https://communitytv.org/watch/government-demand/

Director's report.

These podcasts were taken from Community TV's original video. It is available here:

https://communitytv.org/watch/government-demand/

The RTC’s appointments to the Coastal Rail Council.

The CRCC is a coalition of transportation agencies and stakeholders along California's Central Coast.

These podcasts were taken from Community TV's original video. It is available here:

https://communitytv.org/watch/government-demand/

Commissioner reports.

These podcasts were taken from Community TV's original video. It is available here:

https://communitytv.org/watch/government-demand/

Action Items

Com. Clark Provide Updated Interim Trail Cost Estimates Pull together updated information on interim trail cost estimates and bring it back to the commission.

Com. Schiffrin Direct Staff to Seek Additional Funding Contact state and federal representatives and the CTC to appeal for necessary additional funding to complete trail segments 8-11.

Com. Schiffrin Schedule Public Discussion on Rail Banking Ensure a report and public discussion on rail banking is included in the December meeting agenda, aligned with the rail feasibility study.

Overview

• Commission debated funding and scope for Coastal Rail Trail segments 8-11.
• Two competing motions: one to stay within current funding, another to seek additional funds.
• Key issues: rail banking, interim trail feasibility, and legal/financial constraints.
• Substitute motion to pursue staff recommendations and additional funding passed 7-4.
• Future public discussion on rail banking and trail options scheduled.

Initial Motion: Funding Within Current Resources

• Motion authorized staff to coordinate with coastal rail trail sponsors and funding partners on segments 8–11.
• Directed staff to align project cost and scope with available funding.
• Instructed staff to work with municipal advisors and public finance to develop a financing plan for current and future expenditures.
• Required staff to present a public discussion on rail banking for the Santa Cruz branch rail line.

Debate: Interim Trail, Legal Barriers, and Funding Gaps

• Commission lacks legal authority to build interim trail without abandoning freight easement.
• Abandonment process could take 6 months to 5 years; strong opposition exists.
• $120 million in grants expire in 2027; timeline for trail construction uncertain.
• Existing funding is insufficient to build the trail; additional funds required.
• Motion to stay within current funding likely prevents trail construction in mid- and south-county.

Substitute Motion: Seek Additional Funding & Staff Recommendations

• Approved staff recommendations for coastal rail trail segments 8-11.
• Directed staff to collaborate with project sponsors and funding partners to reduce costs and deliver segments 8-11, including possible project scope modifications.
• Authorized executive director to initiate financing process for Measure D active transportation funds, including bond council services and a financing plan.
• Added direction for staff to contact state and federal representatives and the CTC to request additional funding for construction of segments 8-11.

Clarifications: Rail Banking, Scope, and Public Discussion

• Commission to receive rail banking report at December meeting.
• Rail banking discussion linked to potential abandonment of passenger rail.
• Interim trail funding likely sufficient, pending updated cost estimates and scope change approval.
• Rail banking process requires abandonment of freight easement; can be initiated by operator or other parties.
• Adverse abandonment and stakeholder agreement (e.g., Roaring Camp) are key issues for rail banking and trail development.

Final Deliberations, Amendments, and Vote

• Rail feasibility study scheduled for December; decision on passenger rail, funding, or rail banking to be made then.

Overview

• Significant funding gap for rail trail segments 8-11, with a shortfall of $17 million (projected cost: $137M + $88M = $225M; grants received: $120M).
• Measure D revenues are nearly fully committed, limiting future borrowing and project capacity.
• Urgency to secure additional funding by June 2027 to avoid losing $120M in outside grants.
• No contingency for litigation costs included in current budgets.
• Scaling back project scope may risk current grant funding and require state approval.

Measure D Borrowing and Revenue Constraints

• Borrowing for active transportation projects uses only Measure D active transportation revenues, not full Measure D revenue.
• Other Measure D program areas remain unaffected and retain borrowing capacity under proposed scenarios.

Project Cost Overruns and Funding Gaps for Segments 8-11

• Segments 10 and 11 over budget by $72 million; only $55 million projected funding, creating a shortfall.
• Measure D revenues cannot fully cover current project cost estimates; borrowing $55 million considered to partially fill gap.
• Future Measure D capacity to leverage state and federal funds will be significantly reduced after current funds are exhausted.
• Ongoing project cost estimates are subject to revision and updates are provided regularly.

Grant Funding Risks, Deadlines, and Local Responsibilities

• Received $120 million in outside funding for rail trail segments 8–11.
• Funding deadline for construction is June 2027; must achieve 100% design and full funding by then.
• California Active Transportation Program does not cover cost overruns; local sponsors responsible for extra costs.
• Failure to meet deadlines risks loss of $120 million in grants.
• Additional construction funding needed to complete segments 8–11 and future segments 13–20.

Efforts to Secure Additional Funding and Grant Competitiveness

• Applied for two additional federal grants in 2023; received BUILD/RAISE grants in 2024.
• City of Santa Cruz submitted $20.5M Safe Streets for All grant for segments 8 and 9; decision expected December.
• Grant construction allocation request required by June 27, 2027; construction start not required by that date.
• Current Active Transportation Program cycle has significantly less funding than previous cycle.
• Projects are over budget; limited options and time remain to secure additional funding.

Project Scope, Grant Compliance, and Feasibility Concerns

• California Transportation Commission approval required for scope changes.
• Total cost for segments 8–11: $225 million (8–9: $88M, 10–11: $137M).
• Total grants received for segments 8–11: $120 million.
• Measure D revenue capacity estimated at $174–175 million; about $40 million obligated.
• No contingency funding allocated for litigation costs.
• No requirement to repay state design funds if projects not constructed.

9/4/25 SCCRTC P7a - Measure D Active Transportation Expenditures and Financing

Options Summary

Overview

• Measure D active transportation projects are progressing faster than pay-as-you-go funding allows, necessitating new financing options.
• Over $150 million in state and federal funds have been leveraged for the coastal rail trail.
• Recent project completions include segment 7 to the Santa Cruz Wharf and new funding for segment 12.
• Cost estimates have increased due to material and escalation costs, creating a significant funding gap.
• Three financing scenarios were presented, with borrowing needs ranging from $12.5 million to $55 million.
• The commission will revisit recommendations and programming in November.

Project Delivery Pace and Funding Needs for Coastal Rail Trail

• Provided update on coastal rail trail project funding needs.
• Measure D active transportation funds enable earlier project delivery but require financing options.
• Local Measure D funds leveraged over $150 million in state and federal funds for the 32-mile trail.
• Current discussion is informational; further recommendations expected in November.

Project Updates, Segment Status, and Recent Funding Awards

• RTC refines project cost estimates with sponsors for next five-year plan update.
• Coastal Rail Trail aims for full public access; segment 7 completed to Santa Cruz Wharf.
• SB1 grant awarded for Highway 1 State Park, Freedom Auxiliary Lane, and segment 12; construction funded.
• Segments 8-9 led by City of Santa Cruz; segments 10-11 led by County of Santa Cruz; segment 5 under construction, completion expected summer 2026.
• Segments 17-19 received $4.8M pre-construction funding; construction funding not yet identified.

Cost Estimates, Funding Gaps, and Value Engineering

• Project cost estimates for segments 8 and 11 updated in August 2025.
• Funding gap increased due to higher material unit costs, escalation, and schedule shifts.
• Value engineering analysis achieved cost savings, but escalation offset most savings.
• Secured additional $19.5 million funding; funding gap remains.

Financing Scenarios, Borrowing Models, and Cash Flow Analysis

• Presented three funding scenarios for Measure D active transportation: current, near-term, long-term.
• Current scenario based on adopted five-year plan, updated annually and as needed.
• Near-term needs include environmental mitigation for North Coast Rail Trail Segment 5 and additional design/right-of-way funding for Santa Cruz projects.
• Long-term commitments may require construction funding for Segments 8–11; commission committed to fully fund Segments 10 and 11 in April 2024.

Summary, Next Steps, and Recommendations for Financing and Project Delivery

• Three expenditure scenarios evaluated: current (~$40M), near-term (+$10M), long-term (~$80M).
• Borrowing needs: $12.5M (current), $23M (near-term), $55M (long-term/constrained).
• All scenarios assume ongoing corridor maintenance; trail maintenance only funded through FY28-29.
• Maximum borrowing ($55M) insufficient to fully fund segments 8–11A; multi-pronged funding approach required.
• Next steps: establish legal framework for debt, refine cash flow models, prepare financing plan for commission approval.