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RTC moves to cover storm repairs from RSTPX as FEMA reimbursements lag
Summary
After presentations showing roughly $5.0M spent on 2017 repairs and $1.25M on 2023 emergency work, the commission unanimously approved long‑term, interest‑free borrowing from the RSTPX reserve to cover branch line repairs while staff continues appeals and coordination with Cal OES and FEMA.
The Santa Cruz County Regional Transportation Commission voted unanimously Dec. 12 to authorize long‑term, interest‑free borrowing from the Regional Surface Transportation Exchange (RSTPX) reserve to pay for repairs to the Santa Cruz branch rail line while the commission pursues reimbursement from state and federal disaster relief programs.
RTC staff told the commission the agency has spent just over $5 million repairing seven washout sites from the 2017 storms and about $1.25 million on emergency repairs from 2023 atmospheric rivers. Staff said they had submitted complete documentation to Cal OES and FEMA but that, to date, FEMA had only obligated just over $560,000 for the 2017 work and had retained roughly $70,000 as a retention. FEMA issued a determination memo finding one 2023 site — the bridge over the New Brighton State Beach entrance — ineligible for public assistance, citing questions about the rail line’s active use at the incident time.
"We continue to engage with FEMA and Cal OES and have provided the documentation they requested," staff presenter Riley Gerbrandt said. "There has been some positive movement in conversations, but the determinations and timing are uncertain. Long‑term borrowing from RSTPX would help us cover the repairs until reimbursements are received."
Commissioners and staff described a challenging, sometimes opaque, FEMA process. Several commissioners supported hiring specialized consultants or engaging federal representatives to press appeals more effectively. Commissioner Shifrin said experience working with FEMA underscores how slow and nitpicky the agency can be; another commissioner recommended exploring consultants with proven appeal records.
The RTC’s RSTPX fund typically receives about $3–4 million annually and has carried balances in the $7–10 million range; staff reported a current RSTPX balance of about $11 million. Staff said Measure D’s rail fund lacks short‑term pay‑as‑you‑go capacity to absorb the full cost if FEMA and Cal OES ultimately deny reimbursement.
Public commenters urged staff to pursue every avenue to recover federal funds and suggested demonstrating "active use" of the corridor — for example, limited freight moves or pilot service — to bolster FEMA appeals. Other commenters urged rail‑banking or trail conversion where reactivation appears infeasible.
The commission approved the staff recommendation after public comment. The motion (moved by Commission Shifrin; seconded by Commissioner Montesino) passed unanimously. Staff said they will submit an appeal by the stated deadline for the New Brighton determination, continue coordination with Cal OES and FEMA, and return to the commission with updates and any recommended programming changes should reimbursements not be fully awarded.
Authorities and funding details noted during the discussion included the RTC’s prior short‑term borrowing authorization (Resolution 18‑18), Measure D programming constraints, and the FEMA/Cal OES public assistance process. Staff committed to return with updated eligibility and reimbursement status as appeals proceed.
The commission also fielded questions about the longer‑term impact of RSTPX borrowing on future Measure D projects and said staff will present repayment options and programming choices if reimbursements fall short.
