9/4/25 SCCRTC P8 - Measure D Expenditures and Financing Q&A

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.