9/4/25 SCCRTC P6 - Hwy1 State Park to Bay-Porter Cost Overruns Summary

Overview

• Highway 1 Segment 2 construction is about 45-50% complete.
• $7.7 million in additional costs identified; $1.5 million in savings found.
• Contingency fund increased from 5% to 10% due to unforeseen issues.
• Major cost drivers: design changes, unforeseen site conditions, tree removal, and public safety measures.
• Commissioners raised concerns about cost overruns, transparency, and future funding impacts.

Highway 1 Project Status and Partnerships

• RTC delivered Highway 1 corridor improvements, including Bus and Shoulder Auxiliary Lanes.
• Segment 1 (Soquel Drive to 41st Avenue) is nearly complete; Segment 2 (Bay Porter to State Park Drive) is under construction.
• Caltrans administers both segments; strong partnerships with public, county, and cities.
• Unforeseen in-field conflicts in Segment 2 since April 2024 required additional contingency funds.
• Segment 2 is approximately 50% complete; projected completion in fall 2026.

Detailed Review of Project Challenges, Risks, and Savings

• Revised stage construction 1A to avoid full Bay Porter Ave interchange closure; ramps built piecemeal to reduce public impact.
• Mar Vista pedestrian overcrossing alignment changed due to unmarked sewer lines; bridge relocated, affecting 25 of 45 plan sheets, avoiding 1+ year delay.
• Retaining wall construction required more tree removal than estimated, causing environmental hurdles, project delays, and added costs.
• Unforeseen site conditions (unsuitable materials, buried objects, utility conflicts) led to change orders and increased risk for stage 1B.
• Total additional work cost: $7.7M; project cost savings: $1.5M; original contingency: $4.1M; remaining work: $44M; 10% contingency needed.

Commissioner Q&A: Cost Overruns, Design, and Accountability

• Original contingency was 5% (Caltrans standard), but future projects will use at least 10% due to increased risk and lessons learned.

Further Commissioner Discussion: Environmental, Funding, and Public Concerns

• Tree removal cost: $679,000 due to additional access needs and unplanned trees.
• Ramp inefficiencies at Bay and Porter Street: $500,000; total related change order: $1.9 million; combined: $2.4 million.
• Current projected cost overruns: $7.7 million (gross), net after savings: $6.5 million; represents nearly 10% of original $80 million budget.
• Bridge landing shifted 5 feet inward to avoid utility conflict, causing design and construction impacts but minimal perceptible change for pedestrians.
• Vegetation removal mitigated by replanting at regulatory ratios (typically 3:1); replanting to occur at project end.