Capitola council pauses roundabout plan, directs staff to pursue near‑term safety fixes and clarify PG&E undergrounding credits

The Capitola City Council on May 14 paused plans to install single‑lane roundabouts at two Bay Avenue intersections and directed staff to return with a package of near‑term safety measures and additional information about utility undergrounding credits.

The council’s action followed a detailed technical presentation by consultants from Kimley‑Horn and a lengthy public comment period in which residents and business owners were sharply divided. The consultant’s analysis described collision trends on Bay Avenue from 2014–2025 and presented models showing how roundabouts can shorten pedestrian crossing distances, lower speeds and reduce severe crash rates. Staff and consultants also flagged a time‑sensitive funding opportunity — “Rule 28” undergrounding credits managed by PG&E — that are tied to an existing undergrounding district around Bay & Capola Avenue.

Despite staff’s recommendation to continue coordinating corridor improvements with undergrounding work, a majority of council members said they needed additional details and broader community buy‑in before committing to roundabouts. Mayor Margaret Morgan moved the substitute motion directing staff to withhold construction of roundabouts “at this time,” return with a corridor safety plan that includes upgraded lighting and a new crosswalk and rapid‑flashing beacon at Center Street, and provide clear documentation about the Rule 28 funds and the district boundaries. The motion passed unanimously among members present; Vice Mayor Jensen had recused himself from the item due to a potential residency conflict and was absent for the vote.

Residents who opposed the roundabout design cited prior local experience with lane reductions and a pilot quick‑build that they said increased congestion. “I live on Bay Avenue; I chose it because it was walkable,” one resident said, describing difficulties getting out of driveways and urging visible speed‑limit signage and lighting. Other speakers urged a longer view. Supporters of roundabouts pointed to national research and consultant findings showing lower rates of fatal and severe injury crashes after converting to roundabouts, and urged the city to pursue the opportunity to coordinate construction with PG&E undergrounding credits to reduce long‑term cost.

Staff said the city currently has $500,000 from the Regional Transportation Improvement Program and $250,000 in federal funding that could support design, right‑of‑way and some construction activities, but most of the construction work would require additional grant funding. Staff also told council that Rule 28 credits are limited, tied to a specific undergrounding district and subject to redistribution timelines; that urgency motivated staff to seek council direction about whether to pursue coordination now.

The council’s direction asks staff to return at a future meeting with: (1) a Bay Avenue corridor safety plan emphasizing lighting, markings and an elevated/rapid‑flashing crossing at Center Street; (2) a clear map and timeline showing what undergrounding credits remain under Rule 28 and what is required to secure them; and (3) refined design and cost options so council and the public can revisit roundabouts with updated information. Staff indicated they will attempt to schedule the follow‑up at the next regular council meeting but will also take care not to forfeit any time‑sensitive credits in the meantime.

The council’s deliberation highlighted three recurring tradeoffs: near‑term pedestrian safety vs. long‑term intersection redesigns; coordinating construction to capture utility undergrounding credits vs. flexibility to pursue less‑disruptive measures first; and the city’s constrained capital budget. The decision effectively pauses a multi‑year plan while preserving staff’s ability to pursue funding and engineering work on undergrounding and near‑term safety improvements.

The council’s final action was procedural: it did not authorize construction but set a path for staff to return with a package of improvements and funding options, including the status of Rule 28 credits tied to the Bay & Capola undergrounding district.