A 0.7-mile rail-trail path from California to Beach streets in Santa Cruz started construction in 2022 and remains unfinished. (Stephen Baxter — Santa Cruz Local) 

Santa Cruz City Council meeting

Editor’s note: This story was updated March 11. 

SANTA CRUZ >> The Santa Cruz City Council on Tuesday allocated $900,000 toward a 0.7-mile rail trail that has been delayed several times and has cost nearly $15.3 million. Construction started in 2022 and it is due to open in spring. 

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The paved path on the Santa Cruz Branch Rail Line runs from California and Bay streets to Beach Street near the Santa Cruz wharf. It is Segment 7.2 of the Coastal Rail Trail

After a bidding process, city staff in April 2022 awarded Santa Clara-based Anderson Pacific Engineering Construction Inc. an $11,395,666 contract that included 5% contingency costs.

Back-to-back years of heavy winter storms and unexpected utility work helped delay construction, a city engineer said in 2023. Rain and groundwater near Neary Lagoon required “removal or stabilization of soils to build the trail and adjacent retaining walls,” according to a Feb. 20 city staff report

“A major unanticipated cost was the construction of a concrete cutoff wall at the eastern end of the project” near Depot Park, the report stated. 

“The wall was required to limit groundwater so the soil could be adequately compacted to sustain the asphalt path. The groundwater, blocked by the cutoff wall, is now routed into a modified storm drain system. This effort required design and construction of elements not originally anticipated in the design contract,” according to the report.

Storms also caused hillside erosion that required fill behind the retaining walls. 

“The additional time required to complete the above unforeseen conditions on the project has also increased the costs of flagging for railroad operations, construction management, and engineering and design support,” the report stated.

In November 2023, the city council approved nearly $3 million more to cover overruns. That money has been “insufficient to cover the high costs of building a new wall and modifying the storm drain system,” the city staff report stated.

Tuesday, project staff asked the city council for another $900,000 to finish the trail this spring. The council approved it. The cost of 15 security cameras to be installed after construction are included.

The $900,000 is expected to come from Measure D sales tax funds set aside for transportation projects.

A map of Segment 7 of the rail trail.

Rail trail Segment 7.2 is in red. (City of Santa Cruz)

A rail-trail path is under construction near Depot Park in Santa Cruz in September 2024. (Nik Altenberg — Santa Cruz Local file)

Rendering of Segment 7 of the rail trail at California and Bay.

Rail trail plans call for paved paths near Bay and California streets in Santa Cruz. (City of Santa Cruz rendering)

segment 7 phase 2 Coastal rail trail city of santa cruz july 2022 retaining walls

Retaining walls run along a path near Neary Lagoon Park and the Santa Cruz Wastewater Treatment Facility in Santa Cruz. (RRM Design Group rendering)

A path nears completion as part of Segment 7 of the rail trail that runs from California Street to Beach Street in Santa Cruz.

A rail trail path near California Street in Santa Cruz is pictured in November 2024. (Stephen Baxter – Santa Cruz Local file)

A paved path and retaining wall are under construction in November 2023 between the Santa Cruz Wastewater Treatment Facility and Bay Street in Santa Cruz. (Tyler Maldonado — Santa Cruz Local file)

This story will be updated.

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Reporter / California Local News Fellow |  + posts

Jesse Kathan is a staff reporter for Santa Cruz Local through the California Local News Fellowship. They hold a master's degree in science communications from UC Santa Cruz.