DATE:
November 18, 2025
CATEGORY:
New Business
DEPT.:
Public Works
TITLE: Rengstorff Avenue Grade Separation,
Design and Right-of Way, Project 22-27 –
Cost Reduction Measures
RECOMMENDATION
Approve the recommended cost -reduction measures for Rengstorff Avenue Grade Separation, Design and Right of Way, Project 22- 27, reducing total costs by approximately $58.1 million through construction methods, modification and elimination of non- roadway elements, and reduced construction duration, without changing the alignment and intent of the project.
Approximately 6% of the total costs from preliminary engineering through construction for the Rengstorff Grade Separation Project will be funded by the Shoreline Regional Park Community Fund.
BACKGROUND
The Peninsula Corridor Joint Powers Board (JPB) is the owner and operator of Caltrain, a commuter rail service, which provides transportation for communities on the Peninsula between San Francisco and Gilroy. Caltrain currently operates 104 trains per weekday, resulting in 17 minutes of gate downtime per peak hour at Rengstorff Avenue and significant backups on Rengstorff Avenue. These backups directly impact community access to schools, services, Rengstorff Park, the Community Center, and other facilities along Rengstorff Avenue. Gate downtimes are expected to increase as service levels are anticipated to increase over time.
Grade-separating Rengstorff Avenue from the Caltrain tracks has several benefits , including increasing accessibility for pedestrians and bicyclists crossing the tracks, increasing operational efficiency for the train system as well as drivers, improving traffic safety and traffic flow, and eliminating the need for the trains to sound their horns as a warning system.
The City has spent over 20 years planning for the design, construction, and implementation of this significant infrastructure project.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Delivery of the Rengstorff Avenue Grade Separation Project (Project) is a partnership between the following agencies:
• Caltrain—Lead agency for designing and constructing the Project;
• Santa Clara Valley Transportation Authority (VTA) —Funding partner providing Measure B Grade Separation Program funds and technical oversight; and
• City of Mountain View —Project sponsor responsible for coordinating with Caltrain, acquiring any right -of-way needed, conducting community outreach, and providing a minimum 10% match in non -Measure B funds toward the full project costs. The City also determines the scope of the project and is responsible for ensuring the project has the necessary funding for the project and the public art included within the project.
On January 23, 2024
, the City Council received an update from Caltrain on the status and cost estimates for the two grade separation projects in the City: Castro Street and Rengstorff Avenue.
Prior to starting the designs for the grade separations, the City believed that there was enough funding for both projects. Both projects increased significant unexpected cost increases. With limited funding, Council selected to prioritize the Rengstorff Project and move to forward with the Castro Interim Improvements Project. At that time, the estimated funding gap was $31 million for the Rengstorff Project , even after u tilizing the bulk of the City’s funding previously allocated for the Castro Grade Separation project.
In October 2024, at the 35% submittal stage, staff received a revised estimate from the Caltrain design team for the Rengstorff project. The funding gap increased from $31 million to $159 million. Staff immediately worked t o understand Caltrain’s new estimated cost. The increased project cost was a result of bringing on the Construction Manager General Contractor (“CMGC,” which is an alternative delivery process to traditional hard -low bid). The January 2024 cost estimate was based on the Caltrain design team’s expected costs, as the CMGC was not yet hired by Caltrain. Caltrain’s design team greatly underestimated construction costs and contingency needed for the project. The revised estimate was from the CMGC, bringing construction cost estimating from a contractor’s practical perspective with respect to sequencing and construction project delivery while evaluating the design for efficiencies that can be realized into construction. Recognizing that the funding gap had grown significantly, value engineering efforts between the City, Caltrain, and VTA were initiated at the end of 2024 and into 2025.
In August 2025, City Managers from nine regional cities, including Mountain View, with planned grade separation projects , met with Caltrain leadership to share the cities’ concerns about the significant cost increases for our grade separation projects, project management, and the lack of progress by Caltrain in delivering the se projects. Discussion points focused on strategies to deliver the projects as quickly as possible, minimize cost increases, and identify new funding opportunities. This meeting marked the beginning of an ongoing collaboration process between Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
the regional City Managers and Caltrain leadership, which will include quarterly meetings to discuss current challenges and potential solutions, as well as to strengthen communication.
Rengstorff Avenue Grade-Separation Project Scope
The Project will depress the intersection at Rengstorff Avenue and Central Expressway below grade and leave the Caltrain tracks at existing grade (Figures 1 and 2). With the change in elevation of Rengstorff Avenue, Crisanto Avenue will end in a cul -de-sac, and Leland Avenue’s connection to Rengstorff Avenue will be realigned to the south and will be signalized. A bicycle/pedestrian bridge across Rengstorff Avenue parallel to the rail lines will connect Crisanto Avenue and Leland Avenue.
Figure 1: View from Northeast of the Rengstorff Avenue and Central Expressway Intersection
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Figure 2: View from Southwest of the Rengstorff Avenue and Central Expressway Intersection
The design concept for the Project was selected by the City Council in 2004. It was further refined in 2014 with a focus on pedestrian and bicycle access and connectivity, transitions to adjacent land uses, including residential, commercial, and community facilities such as Rengstorff Park and the Aquatics Center, and incorporating guidance from the City’s Pedestrian Master Plan, the Rengstorff Park Master Plan, and General Plan objectives.
The Project has completed 35% design and obtained both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) clearance and is progressing through 65% design. Table 1 provides additional history of City Council actions and recent milestones for the project.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Table 1: Rengstorff Avenue Grade Separation Project History and Milestones
Date Action/Milestone
November 5, 2004 The City completed the Rengstorff Avenue Underpass and Grade Separation Final Feasibility Study (2004 Study) that evaluated alternatives for a grade-separated crossing. The City Council supported the design concept currently under development.
May 8, 2012 Council directed staff to refine the Council -endorsed alternative from the 2004 Study to better address urban design considerations and pedestrian and bicycle use.
February 11, 2014 Council reviewed the Rengstorff Avenue Grade Separation Design Concepts Final Report (2014 Report) in a Study Session and recommitted support for depressing Rengstorff Avenue and Central Expressway while maintaining the train tracks at its existing elevati
on. Council also
supported bicycle and pedestrian enhancements, including a bicycle and pedestrian overcrossing of Rengstorff Avenue to maintain connectivity on both sides of Rengstorff Avenue.
November 27,
2018
Council approved notifying Caltrain of the City’s grade -separation concept preference and authorized execution of a Memorandum of Understanding (MOU) with Caltrain for the preliminary engineering and environmental clearance of the Rengstorff Avenue Grade Separation Project. The MOU identified C altrain as the lead agency responsible for performing all preliminary engineering and environmental studies and clearance activities, and the City as the project sponsor responsible for funding this work and for community outreach and stakeholder engagement.
2019 to 2022 The MOU was executed on June 10, 2019, and the Preliminary Engineering and Environmental Clearance phase was completed in October 2022.
November 1, 2022 Council authorized execution of a Cooperative Agreement with Caltrain and VTA for Final Design and Right -of-Way Acquisition for the project.
The agreement included roles and responsibilities for each agency and a commitment of $42 million in VTA Measure B funding. The agreement was executed in August 2023.
December 7, 2023 The JPB Board of Directors approved awarding a contract to AECOM to provide final design services for the Rengstorff Avenue Grade Separation. The final design phase of the project started in early 2024 along with starting selection of the Construction Manager/General Contractor (CMGC).
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Date Action/Milestone
January 23, 2024 Council received a report on the status and cost estimates for the Castro Street (Transit Center) and Rengstorff Avenue Caltrain Grade Separation Projects and directed staff to prioritize the Rengstorff Avenue Grade Separation Project. The funding gap for the Rengstorff project was identified as $31 million.
August 2024 Caltrain executed a contract with Atkinson and Clark, a joint venture, to serve as the CMGC for the preconstruction design phase.1 October 2024 Atkinson and Clark collaborated with the project team to provide design feedback and provided an updated construction cost estimate to the City, based on the 35% design plans . The new estimate from Caltrain showed that the City would have a $159 million funding gap.
ANALYSIS
Project Cost Estimates
At the January 2024 Council Study Session, staff shared a total project cost estimate of $325 million for design and construction of the Project. This estimate from the Caltrain design team included $242 million for the construction costs and was an escalated estimate based on the construction market conditions in 2023 and the 35% design plans. With a total cost of $325 million, the Project was anticipated to have a funding shortfall of $31 m illion, which City staff believed could be closed by pursuing fede ral funding opportunities and evaluating existing funding streams that could be shifted from other capital projects to the grade separation project.
In October 2024, the City received updated construction cost estimates from Caltrain for the Project based on the 35% design plans from the CMGC and a third-party cost estimator. The total cost of the project increased drastically from the previous estimate of $325 million to $453 million. The funding gap increased from $31 million to $159 million. The largest increases were in construction costs and the addition of necessary project contingencies that were previously incorrectly not accounted for by Caltrain (see Table 2).
Staff’s analysis showed that the earlier estimate provided by Caltrain severely underestimated the construction costs, including the construction duration of the project, and did not include necessary contingencies needed to cover unknowns at each major stage of the project. Examples include: design contingency , which is intended to bridge the gap of incomplete plans and final
1 The Construction Manager/General Contractor project delivery method allows the contractor to collaborate with the design team during the preconstruction design phase before the start of construction to incorporate the contractor’s preferred means and methods, deliver early work, and include the contractor’s construction phases approach into the final design solution.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
design completion and construction change order contingency. Contingencies generally decrease as the project progresses and cost certainty is achieved.
Table 2: Rengstorff Avenue Grade-Separation Project Cost Estimate
PROJECT PHASE
JANUARY 2024
ESTIMATED COST
(in millions)
OCTOBER 2024
ESTIMATED COST
(in millions)
Preliminary Engineering Phase 4 4
Final Design and Preconstruction 20 24
Right-of-Way 30 35
Construction 242 312
Construction Soft Cost 29 24
Project Contingency 54
Total Project Cost $325M $453M
Funding Shortfall $31M $159M
Upon receiving the updated project cost from Caltrain, the project team paused progress on the design from 35% to 65% to focus on verifying the assumptions and methodology used in generating the cost estimate and determining if overestimation was occurring. After extensive evaluation of the October 2024 cost estimate, the project team determi ned there were no significant overestimates of construction costs identified from the CMGC and third-party estimate, confirming the new estimate was valid. However, the January 2024 project cost did not include the necessary contingencies required at the 35% design stage, which is a factor in the much higher -than-anticipated updated project cost. Therefore, the project team focused on identifying alternatives for reducing costs through value engineering while proceeding with 65% design for elements not affected by the value engineering cost-saving measures discussed in this report.
Caltrain and City staff continue to explore way s to better manage administrative costs that the City incurs for Caltrain’s staff to provide project management services . These soft costs are included in every project phase and are tied to the duration of each phase. To keep these costs low, City staff actively monitor and track the project schedule, streamline reviews where possible, and continue to request Caltrain to cost-share in their project management costs . These conversations are ongoing, and staff will report back to Council as progress is made.
Cost-Reduction Measures
The project team has conducted an extensive evaluation of potential cost-reduction measures through the value engineering process. The results of this evaluation and staff’s Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
recommendations are discussed below. The cost reduction measures are based on the following three categories of savings:
1. Construction Methods and Sequence —These cost-reduction measures do not change the project design.
2. Design Modifications —These cost -reduction measures will change some of the design details.
3. Eliminating/Deferring Project Elements—These cost-reduction measures will change some of the design details.
The estimated cost savings for each option are presented as an “order of magnitude” and will continue to be refined as the design progresses.
Construction Methods and Sequence
Table 3 lists construction methods and sequence options that could provide cost savings. These are discussed further below.
Table 3: Construction Methods and Sequence Potential Cost Savings
Cost-Saving
Alternative
Savings
(in
millions)
Notes Recommended
Construction staging 12.0 Reduces construction duration. Yes Roadway pavement
section
1.5 Reduces pavement section and
excavation depth using alternative
materials.
Yes, pending approval of
Santa Clara County
Sanitary sewer
relocation
0.5 Reduces pipeline length. Yes, pending confirmation
of utility analysis results
Single-track shoofly 4.4 Reduces construction duration but increases Caltrain operational
impacts.
No
Total Potential
Savings
$18.4M
Recommended
Savings
$14.0M
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
• Construction Staging —The project team has evaluated various modifications to the construction staging developed during the 35% design phase, including minimizing lane widths and shoulder widths to increase available area for construction activities. These modifications result in reduced construction duration and construction cost by approximately $12 million.
• Roadway Pavement—Use of alternative materials for the roadway pavement section was also evaluated. These materials will result in reduced pavement section thickness and roadway excavation, thereby reducing the project cost by approximately $1.5 million if also applied on Central Expressway, a Santa Clara County roadway.
• Sanitary Sewer Relocation —Another cost- saving alternative is the relocation of the City sanitary sewer pipeline. Modifications to the pipeline realignment reduces the overall length and minimizes impact to private properties, resulting in a cost saving of $0.5 million.
• Single-Track Shoofly —A shoofly is a pair of temporary rail lines built to bypass a construction site, allowing trains to continue operating while the main track is being repaired or replaced. A shoofly maintains continued normal operations in both directions.
A single-track shoofly is only one rail line for both directions, allowing only one direction to proceed at a time, temporarily affecting service and potentially ridership. This alternative required several months of analysis by Caltrain including a modeling report describing assumptions, methodology, and results of a single -track analysis of the Caltrain line at Rengstorff Avenue. The report also identified potential impacts to the passenger service schedules and operations. Caltrain analyzed several scenarios for safety, construction cost, operational cost, and ridership impacts. None of the scenarios were found feasible by Caltrain primarily due to unacceptable operational impacts and other concerns; therefore, a single-track shoofly is not a recommended cost-saving measure.
The total potential cost savings from this category of modifications is approximately $18.4 million. However, as the single -track shoofly was found infeasible by Caltrain, the total potential cost savings that can be realized in this category of Construction Methods and Sequence is approximately $14 million.
Design Modifications
Several design alternatives have been evaluated to determine potential cost savings. Staff reviewed the community impact of these design modifications and found there were various benefits in addition to the cost savings for the measures recommended. Table 4 lists the alternatives, which are described more fully below.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Table 4: Design Modifications Potential Cost Savings
Cost-Saving Alternative
Savings
(in
millions)
Notes Recommended
Eliminate meandering
pedestrian pathway at
Rengstorff Park
0.8 Replace pathway from Rengstorff
Avenue to Rengstorff Park with a
retaining wall and preserve park space
and trees.
Yes
Replace retaining wall
adjacent to Central
Expressway with sloped
embankments
4.0 Eliminates high retaining walls, which
improves aesthetics, sight lines, and
better integrates the rail corridor and
the expressway.
Yes
Total Potential Savings $4.8M
• Meandering Pathway at Rengstorff Park—The 35% design included a meandering pathway (see magenta area in Figure 3) connecting Rengstorff Park and Crisanto Avenue on the east side of Rengstorff Avenue to the lowered Rengstorff Avenue. As there is an existing pathway connecting Crisanto Avenue to the lowered Rengstorff Avenue, elimination of the meandering pathway from Crisanto Avenue is a practical cost-saving alternative that avoids losing park space, has fewer tree impacts, and is less disruptive to the park. The alternative pathway would use the existing pathway going through the park and provide a new connection to the north side of Rengstorff Avenue (see purple line in Figure 4). Though not shown in the revised Figure 3 rendering, the stairway connecting the end of Cristano Avenue to Rengstorff Avenue would remain in the project scope and is discussed further below. Elimination of the meandering pathway design element allows Rengstorff Park to retain the portion of the park between the skate park and Rengstorff Avenue, installs a retaining wall along Rengstorf Avenue, and results in cost savings of approximately $0.8 million.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Figure 3: View from Southwest of the Rengstorff Avenue and Central Expressway Intersection – 35% Design and Cost Saving Design
Rengstorff Park
35% DESIGN
Rengstorff Park
COST SAVING
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Figure 4: Existing Pathway Connection to Rengstorff Avenue
• Retaining Wall Adjacent to Central Expressway —The 35% design included retaining walls up to 22’ high along the Caltrain right -of-way and Central Expressway (shown in orange in Figure 5). The retaining walls had been included to provide space initially expected to be needed for additional rail lines for a future double tracking by Caltrain. Caltrain determined that planning for future double tracking is no longer required for Rengstorff Avenue.
Consequently, the retaining walls along Central Expressway can be modified to slope d embankments and would re sult in potential cost savings of approximately $4 million.
Sloped embankments with landscaping will be more aesthetically pleasing, enhance the corridor experience, and better integrate the rail corridor with the expressway.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Figure 5: View from Northwest of the Rengstorff Avenue and Central Expressway Intersection – 35% Design and Cost Saving Design
The potential cost savings from this category of Design Modification measures is approximately $4.8 million.
COST SAVING
35% DESIGN
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Eliminating or Deferring Scope Elements
Further near-term cost reductions can be realized by reducing the project scope and eliminating items from the project scope and deferring them to be potentially constructed in the future.
Table 5 lists the cost savings from these alternatives, which are more fully discussed below.
Table 5: Eliminate/Defer Project Elements Potential Cost Savings
Cost-Saving Alternative
Savings
(in
millions)
Notes Recommended
Retaining walls at Shell gas
station 1.3 Reduces height of retaining walls
and eliminates need for stairs. Yes
Bicycle/pedestrian bridge 2.0 Defer bicycle/pedestrian bridge and eliminate stairs. No
Total Potential Cost
Savings $3.3M
Recommended Savings $1.3M
• Retaining Wall at Shell Gas Station —The 35% design included retaining walls and stairs around the Shell gas station (shown in yellow in Figure 6 ). As it is infeasible for the gas station to remain with the proposed lowering of the Rengstorff Avenue and Central Expressway intersection, this property will need to be acquired for the project. Use for this parcel remains undetermined, and deferring th e construction of walls and stairs at this property can result in potential cost savings of $1.3 million. Regrading and any needed retaining walls can be designed and constructed as part of any future development of the site.
• Bicycle/Pedestrian Bridge —The 35% design included a bicycle/pedestrian bridge connecting Crisanto Avenue and Rengstorff Park to La Plaza Market and the neighborhood on the west side of Rengstorff Avenue (shown in blue in Figure 6). Deferring the bicycle/pedestrian bridge and eliminating the stairway can result in cost savings of approximately $2 million. However, the bike and pedestrian bridge and stairway maintains valuable connectivity to Rengstorff Park amenities and La Plaza market, providing connection to the community and encouraging active transportation. Staff does not recommend moving forward with this measure given the marginal cost savings and substantial community benefits.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Figure 6: View from Northwest of the Rengstorff Avenue and Central Expressway Intersection – 35% Design and Cost Saving Design
The total potential savings for the recommended Elimination/Deferral measures category is $1.3 million.
COST SAVING
35% DESIGN
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Construction Duration, Indirect Costs, Contingencies, and Fees
During the value engineering efforts, staff also worked with Caltrain to review the Project construction schedule to determine if the construction phase duration can be condensed. This resulted in reducing the construction time period from 36 months to 30 month s, which also reduces the indirect costs associated with construction duration such as contractor staffing, field office, yards and shops, vehicle costs, and safety-related costs.
In addition, contingencies and fees have been adjusted to reflect their proportional relationship to the total construction cost. Approximately $ 38.0 million in cost savings were identified and included in the revised costs. There is no action needed by Council to realize these savings due to a reduction in indirect costs.
Revised Project Cost and Funding Shortfall
The recommended cost -reduction measures will provide a total of $ 58.1 million in savings as summarized in Table 6.
Table 6: Recommended Cost-Reduction Measures and Caltrain Cost Savings
Category Savings
(in millions)
Construction Methods and Sequence 14.0
Design Modifications 4.8
Eliminate/Defer Project Elements 1.3
Construction Duration, Indirect Costs,
Contingencies and Fees 38.0
Total Potential Cost Savings $58.1M
These savings result in a project cost estimate reduced from $453 million to $395 million. A s shown in Table 7, a total of $296 million in funding has been secured or is anticipated, resulting in a new project funding shortfall of $99 million if the City Council approves the recommended cost-reduction measures.
To fill the funding gap, staff will continue to pursue regional, state, and federal grants as opportunities arise. In addition, staff is monitoring the potential for a new regional transportation revenue measure and will identify opportunities for the City to advocate for the Rengstorff Project to receive funding. Lastly, the City is exploring its own 2026 local revenue measure, which could include prioritizing funding to complete this important project.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
Table 7: Rengstorff Project Cost at 35% Design and Funding Sources (Updated)
Funding Source Amount
(in millions) Status
Preliminary Engineering Phase—$4.0 million
City Funds (Construction/Conveyance Tax, San
Antonio Public Benefit) 4 Fully Expended
Final Design, Right-of-Way Acquisition, and Preconstruction—$59 million City Funds (Transportation Reserve, Shoreline
Regional Park Community (SRPC), San Antonio
Public Benefit)
10 Committed
VTA Measure B 46 Committed
Construction—$289 million
City Funds (Transportation Impact Fee, SRPC,
Transportation Reserve) 30 Planned
VTA Measure B 171 Planned
California State Transportation Agency Transit
and Intercity Rail Capital Program (TIRCP) 20 Awarded
CPUC Grade Separation Program Grant 15 Planned
Project Contingency—$43 million
Total Estimated Project Cost $395M
Total Funding Secured/Planned $296M
Funding Shortfall $99M
Strategies to Minimize Further Cost Increases
The greatest risk of additional significant increases in project costs is delay. The current estimate of $395 million assumes the project will begin full construction by 2027. It is estimated that costs will increase between $9 million and $14 million for each year construction is delayed beyond this.
Final design and right -of-way acquisition are fully funded and will take 18 to 24 months to complete. The City can minimize the impact of cost escalation by completing the design and right- of-way phases while continuing to identify additional funding. In a ddition, there is enough funding available to construct certain early delivery phases, such as the realignment of Leland Avenue, in advance of the full construction. Early delivery will minimize the impact of escalation Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
for these phases and continue to position the project for construction as quickly as possible once sufficient funding is available for full construction.
Council Transportation Committee
On September 2, 2025, staff presented the recommended cost reduction measures to the Council Transportation Committee (CTC). The CTC recommends that the City Council approve the cost reduction measures for the Rengstorff Avenue Grade Separation Project.
Next Steps
Staff and Caltrain will incorporate the Council-approved cost-reduction measures into the design and proceed with completing 65% design to continue the project. Staff will continue to work with the Rengstorff Avenue Grade Separation project team to identify and pursue any additional value engineering as a component of design development through final design.
As the project proceeds into final design, the project team will schedule outreach events to keep the community informed about the project.
Staff will proceed with final design and right-of-way acquisition as well as seek out opportunities for delivery of early works packages to minimize future cost escalation.
FISCAL IMPACT
Rengstorff Avenue Grade Separation, Project 22 -27, is fully funded for the design and right -of- way phases, with total funding of approximately $10.2 million from City funds, as shown in Table 7 above. No additional appropriation is requested at this time. The City has an approximate $99 million funding shortfall remaining if Council approves the cost reduction measures.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
EXEMPT FROM THE LEVINE ACT
☒ General policy and legislative actions
CONCLUSION
The City is faced with difficult and time -sensitive decisions regarding the Rengstorff Avenue Grade-Separation project. Since receipt of the updated construction cost estimate based on the 35% design in October 2024, the project team has focused on value e ngineering and has progressed portions of the project toward 65% design. Meanwhile, staff has identified potential measures to reduce costs through construction methods and sequence, design modifications, and phasing project elements that require approval from Council. Staff will continue to explore options to fill the funding gap, such as grant opportunities and potential new revenue measures.
ALTERNATIVES
1. Do not approve the recommended cost-reduction measures and retain design modifications (retaining walls along Central Expressway, meandering pathway at Rengstorff park) and proposed elimination element of retaining walls at Shell gas station.
2. Provide other direction.
Rengstorff Avenue Grade Separation, Design and Right-of Way, Project 22-27 – Cost Reduction Measures November 18, 2025
PUBLIC NOTICING
In addition to the City’s standard agenda and posting requirements, notices were distributed to persons who have signed up for project updates, representatives of VTA, Caltrain, and other interested parties.
Prepared by:
Joy Houghton
Senior Civil Engineer
Reviewed by:
Robert Gonzales
Principal Civil Engineer
Edward Arango
Assistant Public Works Director/
City Engineer
Approved by:
Jennifer Ng
Public Works Director
Kimbra McCarthy
City Manager
cc: PWD, APWD—Arango, APWD—Boyer, CTE, PCE—Gonzales, SCE—Houghton, F (22-27)