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

9/4/25 SCCRTC P6 - Hwy1 State Park to Bay-Porter Cost Overruns SummaryOverviewHighway 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 PartnershipsRTC 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 SavingsRevised 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 AccountabilityOriginal 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 ConcernsTree 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.