ValleyLink shifts to phased approach, aims to connect at Vasco Road; cost escalation forces revised funding strategy
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Summary
ValleyLink officials reported cost escalation that raised the 22‑mile estimate from about $1.9 billion to $4.4 billion; the board approved a phased plan to connect ValleyLink with ACE at Vasco Road to reduce near‑term costs and retain a future Mountain House extension. ValleyLink seeks significant state and federal funding to meet a 2028 construction target for Phase 1a pending funding.
ValleyLink Executive Director Kevin Sheridan visited Tracy on Nov. 18 to deliver a project update and explain a shift to a phased delivery approach driven by inflation and federal contingency requirements.
Sheridan said updated estimates pushed the full 22‑mile plan from roughly $1.9 billion to about $4.4 billion, largely because of inflation and required contingency in federal grant programs. "We were in shock at what we're seeing from inflation and other escalation numbers," he told council. Sheridan said the board examined alternatives and that routing ValleyLink to connect with ACE at Vasco Road — creating a cross‑platform transfer — brought the cost estimate back closer to $2.0 billion while preserving service connectivity for ACE riders.
The board also adopted battery‑electric multiple units as the recommended vehicle technology for the initial operating segment and said hydrogen‑battery options remain of interest depending on future costs and availability. Sheridan said ValleyLink has targeted completion of the environmental re‑evaluation for Phase 1a by June 2026 and said the project could move to construction by about 2028 if remaining funding needs are met. He identified a state funding shortfall the project is trying to address and said the agency is pursuing federal and state sources and coordination with Caltrans and SJCOG for environmental and right‑of‑way steps.
Tracy councilmembers pressed for local engagement on station siting and coordination with the 205 managed‑lanes project; Sheridan and staff agreed to return for public meetings in Tracy during the forthcoming environmental work. Council voted to receive the informational update.