CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: CONSENT CALENDAR Account Number: 26-4662 File ID: 26-10902 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: March 16, 2026
SUBJECT:
Villa Terrace Closure Project Funding — Agreement
RECOMMENDATION:
Adopt a Resolution to approve a Section 130 funding agreement with the California Department of Transportation for the railroad crossing closure project at Villa Terrace and appropriate $1,128,000 in Section 130 funding to the Capital Project Fund and authorize the City Manager to execute the agreement in substantially the form presented and any future amendments and grant documents.
BACKGROUND:
To meet City Council priorities related to safety, the City proposes to permanently close Villa Terrace at the railroad crossing (Project). Project improvements in City right-of-way include, but are not limited to, the construction of two cul-de- sacs, fencing on both sides of the tracks, new roadway pavement, signage and striping. The closure will prohibit pedestrians and bicycle and vehicular traffic from crossing the tracks, reducing the risk of rail-related collisions.
In January 2025, City staff presented the Project as a safety improvement to the California Public Utilities Commission (CPUC) to coordinate on potential funding opportunities. CPUC identified the Railroad-Highway Grade Crossing Program - Section 130 (Section 130) as a funding opportunity for the Project, which is led by CPUC and implemented by the California State Department of Transportation (Caltrans) in cooperation with local agencies and railroads.
During the same period that discussions with CPUC and Caltrans were underway regarding Section 130 funding, City staff advanced the design using local funds. While some Section 130 funds can be allocated to preliminary engineering, such as design, Section 130 funding will primarily be utilized for the construction phase of the Project. The total City right-of-way preliminary engineering and construction cost eligible for reimbursement by Caltrans under the funding agreement is $1,128,000.
Project improvements located in the Peninsula Corridor Joint Powers Board (PCJPB/Caltrain) railroad right-of-way will also be funded by Section 130 through a separate agreement between Caltrans and PCJPB/Caltrain. Each agency is responsible for implementing the improvements within their right-of-way. City staff anticipates construction of the Project in City right-of-way will start by the end of 2026.
The Section 130 Agreement with Caltrans is required to authorize the City to receive reimbursement of federal funds for Project improvements within the City’s right-of-way. Therefore, staff recommends approval of a Section 130 funding agreement with Caltrans for the railroad crossing closure project at Villa Terrace.
BUDGET IMPACT:
There are sufficient funds in the Project #462205 budget to support staff and design costs. The appropriation of these
CITY OF SAN MATEO
Section 130 funds will primarily cover costs in the construction phase.
ENVIRONMENTAL DETERMINATION:
This Resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Proposed Agreement
STAFF CONTACT
Karen Cornejo, Assistant Engineer
[email protected]
(650) 522-7576
Jimmy Vo, Senior Engineer
[email protected]
(650) 522-7319