Highway 1 work contributes to a backup in Aptos in April. (Stephen Baxter — Santa Cruz Local file)

SANTA CRUZ >> More than two months after Caltrans said it needed $3 million more to finish Highway 1 work, the county’s transportation commission is still searching for an explanation as they foot the bill.

The Santa Cruz County Regional Transportation Commission is set to receive a report on the budget overrun at its Aug. 1 meeting.

• In 2021, the commission contracted with Caltrans for construction support for its project to add new lanes on Highway 1 between Soquel Drive and 41st Avenue, and a pedestrian and bike bridge over the highway at Chanticleer Avenue.
• Construction is expected to finish in 2025.
• The project’s $40.5 million budget includes money from the 2016 countywide Measure D sales tax, the SB 1 state gas tax and federal highway improvement funds.

Caltrans budgeted $3.8 million for construction support, which includes project administration, environmental review and other services. But in May, Caltrans nearly doubled its estimated construction support costs. Transportation commissioners in June approved the use of a federal earmark and more Measure D money to fill the $3 million gap and keep the project on schedule. 

Commission staff requested Caltrans’ contracts with consultants and payroll records that would show the source of the overruns. The state’s response has not yielded concrete answers. With an understaffed Santa Cruz construction office, Caltrans outsourced some of the work at a higher cost and overshot its consultant budget, according to a commission staff report.

The documents the state provided are incomplete and do not verify the cost increase or confirm that Caltrans is sticking to its contract, said Sarah Christensen, a senior transportation engineer for the commission. If the state violated the agreement, the transportation commission would not have to cover the overruns, Christensen said. 

Caltrans has not disclosed how much of the project’s budget goes to overhead. Commission staff have requested more detailed financial documents. The report for the Aug. 1 meeting does not include a recommendation for a vote from commissioners.

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