Public Works Agency
www.santa-ana.org/pw
Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 21, 2026
TOPIC: Approve Designated Subrecipient Agreement with California Department of Transportation for Santa Ana Boulevard Grade Separation Project
AGENDA TITLE
Approve Designated Subrecipient Agreement with California Department of Transportation to Receive RAISE Grant Funds for the Santa Ana Boulevard Grade Separation Project (No. 26-6718) (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a Designated Subrecipient Agreement with California Department of Transportation to receive RAISE grant funds, in the amount of $25,000,000, for the Santa Ana Boulevard Grade Separation Project (Agreement No. A- 2026-XXX).
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
Background
On January 4, 2011, the City Council approved an agreement with AECOM Engineering Services to prepare a Project Study Report Equivalent (PSRE) and develop conceptual engineering plans for the Santa Ana Boulevard Grade Separation (SAGS) Project. At the time, staff secured $1,500,000 in funding from the Orange County Transportation Authority (OCTA) to complete the PSRE and conceptual engineering phase.
The proposed SAGS project (Exhibit 1) is adjacent to the Santa Ana Regional Transportation Center (SARTC), and will include a new four-lane underpass to replace the existing at-grade rail crossing at the Southern California Regional Rail Authority (SCRRA) double tracks on Santa Ana Boulevard. By eliminating the at-grade crossing, the project will allow for enhanced safety by separating vehicles, pedestrians, and cyclists from trains at the railroad crossing. It will reduce traffic congestion along a busy arterial, encourage a passenger rail mode shift, reduce air and noise pollution, provide unhindered access for emergency vehicles, and provide connectivity across Santa Ana Boulevard to SARTC. The improvements will include a raised median, bike lanes, sidewalks, pedestrian and rail bridges, storm water pump station, space for a transportation opportunity zone, and a pedestrian plaza. The total cost of this project is estimated to be $126,500,000 and can only be realized with grant funding, which is typical for transportation projects of this magnitude.
Approve Designated Subrecipient Agreement with California Department of Transportation for Santa Ana Boulevard Grade Separation Project July 21, 2026
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In 2014, the City Council approved the PSRE and environmental report for the proposed SAGS project. This action transformed SAGS from a concept to a formally identified capital improvement project for the City and allowed staff to pursue grant funding for the project.
To date, the City has been awarded a total of $32,000,000 to fund the project including the following grants:
$7,000,000 grant from the State Transit and Intercity Rail Capital Program (TIRCP)
$25,000,000 grant from the Federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program
Staff will continue to seek additional grants from both State and Federal programs for the unfunded portions of the Right-of-Way and construction phases of the Project.
TIRCP Grant
On May 5, 2026 the City Council approved an appropriation adjustment recognizing the $7,000,000 grant from the TIRCP program to the City to fund the engineering phase and the revalidation of the project’s environmental documentation. The grant will fund the engineering design phase, update the project's environmental documentation, and cover the design services.
RAISE Grant
On June 26, 2024, the City was awarded $25 million through the federal United States Department of Transportation (USDOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Program. The grant funding will support the project's right-of-way acquisition and construction phases. Due to the project's location within an active railroad corridor and its eligibility under state-administered federal transportation programs, the California Department of Transportation (Caltrans) was designated as the primary recipient and administrator of the federal grant funds on behalf of the project.
As part of the grant award process, Caltrans entered into a grant agreement with USDOT establishing the terms, conditions, and requirements for administering the federal funds. The City Council approved the grant agreement between Caltrans and USDOT on May 5, 2026, acknowledging the federal funding award and authorizing participation in the program.
The Designated Subrecipient Agreement (DSA) establishes the formal relationship between Caltrans, as the primary recipient of the federal RAISE funds, and the City of Approve Designated Subrecipient Agreement with California Department of Transportation for Santa Ana Boulevard Grade Separation Project July 21, 2026
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Santa Ana, as the project sponsor and implementing agency. The DSA is required to allow federal funds to be passed through from Caltrans to the City for eligible project activities.
The DSA also defines the responsibilities of both agencies, including project delivery, financial management, reporting requirements, environmental compliance, right-of-way acquisition procedures, procurement standards, and construction administration requirements associated with the use of federal funds.
Approval of the DSA is necessary for the City to access the awarded RAISE grant funding and proceed with future reimbursement requests for eligible project costs.
Without this agreement, the City would be unable to receive federal reimbursement for right-of-way acquisition and construction expenditures associated with the Santa Ana Boulevard Grade Separation Project.
Staff recommends approval of the DSA to allow staff to begin the authorization process to make the funding available for expenditure.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the recommended action. On May 5, 2026, the City Council approved the design phase services for the project, including preparation of a revalidated environmental document to update the previously certified environmental analysis. A revalidated environmental report will be brought to Council for consideration at a future meeting.
FISCAL IMPACT
There is no fiscal impact at this time. Future amendments for Right-of-Way (ROW) Engineering and Construction Support services will be brought forward for City Council consideration and approval as additional grant funding for the project becomes available.
EXHIBIT(S)
1. Location Map
2. Agreement with U.S Department of Transportation (USDOT) and the California Department of Transportation (Caltrans)
3. Designated Subrecipient Agreement with Caltrans
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director of Public Works Agency Approved By: Alvaro Nuñez, City Manager