City Council OKs next‑step design work for Prado Interchange, directs further milestones and regional outreach

The San Luis Obispo City Council voted 4‑1 to advance the Prado Interchange to the plans, specifications and estimate (PS&E) phase, moving the long‑discussed project closer to construction while directing staff to report back at multiple milestones and pursue regional funding.

The council’s approval allows the city to award the PS&E design contract to the consultant CONSORT and to appropriate $9.9 million in San Luis Ranch bond proceeds to the project account. Council also authorized staff to issue a request for proposals for lobbying services to help close the remaining funding gap. Councilmember Boswell recorded the lone no vote.

The approval starts a multi‑year design effort that staff estimates will take about 4 years to produce construction‑ready documents. Engineering staff told the council the PS&E phase will include value‑analysis recommendations (to reduce cost and complexity), utility coordination, right‑of‑way initiation and a third‑party constructability review. CONSORT’s unsealed design fee for PS&E is about $9 million; added contingencies and related tasks bring the PS&E budget estimate to about $16 million.

City staff and the consultant described the interchange as a “tight diamond” overcrossing of U.S. 101 that will elevate the northbound ramps and provide a bridge structure on columns rather than earthen ramps to avoid impounding flood flows. The design includes four through lanes, protected bicycle and pedestrian facilities and realignment of Elks Lane to maintain access to the city corporation yard and 40 Prado homeless shelter.

Staff estimated a 2023 construction cost estimate of about $85 million; escalated to a mid‑construction year that accounts for inflation, the total project cost was presented to the council as roughly $148 million, including construction management and inspection. That figure, staff said, assumes cost sharing from the San Luis Ranch developer, San Luis Obispo Council of Governments (SLOCOG) and the county, plus pursuit of state and federal grants. Staff emphasized the project’s regional character and said additional outside funding is essential to avoid large city debt service impacts.

Council members pressed staff on alternatives and contingencies if federal or regional funds are not available. Staff said the PS&E phase will include a formal value analysis and noted there are natural breakpoints in the contract (near completion of the value analysis and again near final PS&E) when council will be able to reassess and, if needed, redirect or pause the effort. Staff also described a narrower “overpass‑only” alternative that would carry pedestrians, bikes and possibly transit/emergency lanes; staff said that option would likely still be expensive and would restart Caltrans review, adding years to the schedule.

The council’s motion authorized the city manager to amend the design contract as necessary during the PS&E phase, and instructed staff to return to council at least twice during the PS&E phase (at natural milestone points) with updates that explicitly lay out decision points, funding prospects and alternatives.

The council vote was recorded by roll call: Vice Mayor Shorzman Yes; Councilmember Francis Yes; Councilmember Marx Yes; Councilmember Boswell No; Mayor Mary Erica A. Stewart Yes.

The council discussion included repeated references to the project’s long history in local planning documents (first in the general plan in 1994) and to the concentration of regional travel the interchange is intended to serve. Several council members urged intensified outreach to SLOCOG, the county and state partners to secure regional dollars before the city would shoulder major debt obligations.

If the PS&E proceeds as scheduled, staff estimated the city would be in a stronger position to apply for and obtain major state and federal construction grants because the project would be closer to “shovel ready.” The council directed staff to return at agreed milestones and to pursue additional funding vigorously before any later decision to advertise the project for construction.

Ending: Staff said construction would still require many years of additional effort and that the city’s ability to proceed to construction will depend on securing grants or other regional contributions; the PS&E award lets the city refine the price, the schedule and the funding strategy necessary to reach that point.