Quick Take
The Santa Cruz County Regional Transportation Commission will consider a separation agreement with Progressive Rail in order to avoid a court battle following the RTC’s move to become the common carrier on the rail line. It will also consider entering a new contract with a new rail operator for part of the rail line in South County that still serves freight customers.
The Santa Cruz County Regional Transportation Commission (RTC) seeks to officially part ways with the Santa Cruz Branch Rail Line’s rail operator, and appears to be able to avoid a court battle in doing so.
The commission will also consider entering a new contract with a rail operator for part of the rail line in South County that still serves freight customers.
At its Thursday meeting, the RTC will consider approving a separation agreement and mutual release that allows the commission and the current rail operator, Minnesota-based Progressive Rail, to more easily part ways. Although the commission moved to formally terminate its agreement with Progressive Rail in February, Progressive rejected the termination and threatened to sue. RTC executive director Sarah Christensen told Lookout that this agreement would mark a “mutually agreed-to, amicable end to our relationship,” and keep the parties out of court.
The move would not change any of the current rail or trail plans, and serves to expedite the process to allow the RTC to assume the role of rail operator
The RTC terminated the contract with Progressive Rail following its move to build 8 miles of the Coastal Rail Trail on top of the rails, rather than next to them as initially planned. Progressive Rail had opposed the idea. In doing so, the RTC moved to become the rail operator, and recently formed a nonprofit railway subsidiary called Santa Cruz County Coastal Rail (SCCCR) to serve as the operator. The commissioners will be the nonprofit’s board.
The RTC will be paying Progressive a total of $450,000 as part of the agreement. The contract included a set amount of $300,000 as a buyout for either party, and Christensen said that the extra $150,000 is to “pay them for their troubles,” such as completing administrative work and transferring the rail line’s inoperable portion to SCCCR.
The RTC also requested proposals from other rail operators to continue freight service in Watsonville after moving to terminate the contract with Progressive Rail. Although there is no freight service north of South County, there are still some active freight customers in Watsonville.
A staff report recommends entering a contract with Mississippi-based Chicago, Rock Island & Pacific Railroad to operate the portion of rail with freight customers.
Christensen sees the moves as another step to have more say and autonomy over how the rail is used, putting more of the decision-making power into the RTC’s hands while still preserving freight service.
“This is just all part of the process of taking control of the line that we rightfully own for the community’s interests,” Christensen said. “We want to protect and be able to use the line for what the RTC has always envisioned it for, which is trail in the near term, and rail in the long term.”
Latest news
This week, pay particular attention to:
- Electrical work, tree work and utility work are shutting down one lane of Highway 9 between the Paradise Park Exit and Keystone Way, Hihn Street and San Lorenzo Valley Elementary, Graham Hill/Bennett Street and Fall Creek Bridge, Cascade Avenue and Irwin Way, Riverdale Park and Monaco Lane, Pool Drive and Old County Highway, and McGaffigan Mill Road and Saratoga Toll Road on Monday through Friday between 7 a.m. and 4 p.m.
- Drainage work is causing an overnight closure of the southbound Highway 1 on-ramp at Buena Vista Drive in Watsonville on Monday through Friday between 9 p.m. and 6 a.m.
- Emergency sewer work in Soquel Village could occasionally block access to driveways, sidewalks, on-street parking and interrupt sewer service on weekdays until June 30, on Soquel Drive, Porter Street and Main Street. Work on Soquel Drive will be overnight from 8:30 p.m. to 5:30 a.m. and from 9 a.m. to 3 p.m. on Porter and Main streets. Other, shorter-duration potholing on Porter, Main and Center streets and Daubenbiss Avenue will take place from 8:30 a.m. to 4:30 p.m.
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