Santa Cruz County Seeks Clarity on Local Costs for Passenger Rail Project

WATSONVILLE – Although the comprehensive report outlining the steps needed to introduce commuter train services to Santa Cruz County was made available nearly seven days ago, Thursday provided the initial insight into the opinions of the regional lawmakers who hold the key to the project’s future. It also shed light on their intended course of action moving forward.

The Regional Transportation Commission gathered in Watsonville for their regular monthly meeting, where they reviewed a comprehensive analysis of the Zero Emission Passenger Rail and Trail Project Concept Report’s 19-page executive summary. Although this information was primarily meant to inform rather than decide, the ten voting members at hand focused closely on the project’s anticipated cost of approximately $4.28 billion along with its forecasted yearly operational costs ranging from $34 million to $41 million.

Although the commission members had differing opinions about the project’s general viability, they unanimously believed it was essential to present county residents with a clear picture of the substantial financial commitment—amounting to $22 million for the 22-mile initiative—that would be required to make it happen.

A proposal put forth by Commissioner Fred Keeley was approved with unanimous consent from the others present at the meeting. The commission then instructed their team to prepare a comprehensive financial assessment outlining the required local contribution for both building the initiative and covering its future operational and upkeep expenses.

The analysis, which relies on projections regarding the extent of financial responsibility expected to fall under federal grant initiatives, details four potential situations: local matching fund stipulations set at 20%, 30%, 40%, and 50% for capital expenditures. Additionally, staff were instructed to presume complete local financing covering operation and maintenance charges, as these costs generally do not receive support from grant funds.

In every situation, employees were requested to present a chart illustrating the degree of tax hike—the commission’s primary means of generating public funding—needed to be approved by voters in order to maintain the initiative on schedule.

Keeley stated that the motivation behind his proposal was to initiate a “facts-based, earnest discussion” regarding expenses.

I believe that this motion would achieve two things: first, it would bring more transparency to discussions about costs; second, it could shed light on potential funding mechanisms,” stated Keeley. “It’s high time we brought these issues into the open.

The commission requested that the financial summary be published at the same time as the detailed final concept report, which is scheduled to be reviewed by the commission for approval on Aug. 7. According to Executive Director Sarah Christensen’s statement to the Sentinel, both of these documents will be made available prior to the August meeting; however, she could not provide an immediate timeframe for their release.

Going on record

After approximately one hour of discussion devoted to this agenda item, the motion was passed. Throughout this timeframe, multiple commissioners posed clarifying queries regarding the report and shared their thoughts—varying widely in how openly they expressed themselves—on whether the project would succeed.

The initiative aims for an emission-free commuter train connecting Pajaro in northern Monterey County to Natural Bridges in Santa Cruz. The plan features trains running every half hour with journey times not exceeding 45 minutes start-to-finish. Additionally, this proposal encompasses building out 12 miles of the Coastal Rail Trail project.

Commissioner Manu Koenibg, known for expressing doubts regarding passenger rail within the county, found the executive summary conclusive. After performing his computations, he concluded that the county needs between $104 million and $148 million annually from sales taxes to cover capital expenses. According to him, this would require increasing the current sales tax rate by approximately 2% to 2.75%.

In my opinion, the main objective of this whole study process was to ascertain the feasibility of this project,” stated Koenig. “I believe we now have our answer: it isn’t feasible.

Other individuals were not prepared to concede defeat just yet. Actually, Commissioner Justin Cummings expressed his continued optimism regarding the initiative, citing the commendable history of the commission staff in obtaining state and federal grants, along with the potential benefits the passenger rail could bring to future generations.

This is an ongoing endeavor intended as a long-term commitment, essentially a marathon project designed not just for our generation but for those yet to come—a railway set to endure over the next century,” he stated. “It’s crucial that we approach this with innovation and advocacy because history has shown us that when you’re a dedicated advocate, funds often thought unavailable may magically materialize.

Remarks made by Commissioner Felipe Hernandez, who works alongside Koenig and Cummings on the Board of Supervisors, echoed similar sentiments and indicated that forming collaborative partnerships with various transportation entities might be a wise approach.

I view this as an initiative for our children and their grandchildren,” stated Hernandez. “It would be unfortunate to be the one who terminated a project crucial in 35 or 40 years from now, leaving us with the exact traffic issues we’re experiencing today.

However, Koenirg similarly found several commissioners who shared his views. Kim De Serpa expressed doubt about whether federal agencies would commit sufficient funds and was reluctant to divert local finances from much-needed road enhancements in her district.

“I don’t believe it’s practical at these prices,” stated De Serpa, also mentioning her interest in exploring alternatives to maintain the rail corridor for upcoming times.

Commissioner Steve Clark highlighted that the overall expense of the project exceeded the sum of the yearly budgets allocated to the county’s five governing bodies.

However much they might have been tempted to outline the ultimate endpoint, several commissioners opted to keep their options close to their chest. They chose not to make judgments until the final reports were presented and thoroughly examined.

“Every single person up here, in the room or in this county can see that price tag and feel a knot in their stomach,” said Commissioner Monica Martinez. “I think it’s important for us as commissioners to really look at the numbers, look at the options, look at the scenarios that have been presented and have some discussions about that.”

Keeley mentioned that he believes the financial report and the all-encompassing conceptual report scheduled for August should significantly aid both the community and the commission in determining whether they are prepared to take on the required financial responsibilities for this controversial initiative.

I believe it wouldn’t be too bold to say that everyone desires certain things in their lives. Some of these things we possess the means to afford, whereas others we wish for but cannot finance,” stated Keeley. “I also don’t think this distinction changes when we consider our roles within public agencies.

The commissioners were not alone in their discussions about the feasibility of the project. Although the commission’s staff naturally follows the directives provided by the decision-making body, De Serpa apologized for asking Christensen directly but questioned whether she believed the initiative could be successfully executed based on the current cost estimates.

I would argue that any project can be achieved with sufficient funds and adequate community backing,” responded Christensen. “Indeed, this is a bold initiative. While the project imposes significant financial strain on our community, prioritizing it above other requirements and committing ourselves fully to its execution means our team will find a way to make it happen.