Another Caltrain project sees massive cost overrun 

According to a staff presentation during a Caltrain Board of Directors meeting, the largest cost increases are related to the construction — going from about $29 million to $89 million — as well as habitat mitigation and permit and compliance-related fees. 

Caltrain will halt train service starting June 16 between the Tamien and San Jose Diridon stations as the repair work begins on the Guadalupe Bridge.

While general cost escalations, especially in a high-inflation environment, are out of the agency’s control, the severity and frequency of the increases have raised concern by board members over the agency’s approach to how it develops estimates and delivers projects.

Board Chair Steven Heminger said the inaccurate estimates seem to be a concerning pattern, with similar issues occurring during the electrification project. 

“We had this story with electrification … we’ve had similar issues arise with the Broadway grade separation as well. I do see a pattern that is troubling,” Heminger said. “When it’s project after project after project, you’ve got a problem.”

The long-standing grade separation project near Burlingame’s Broadway station — often considered the most dangerous rail crossing in the state — saw updated project estimates more than double from 2022, going from $316 million to $889 million as of 2025. A pared-down version of the project brought down the price tag to about $615 million, but it’s still drawn ire from many elected officials, especially in Burlingame. At one point, the city’s vice mayor said he would’ve “fired” agency staff who presented the original estimate. The increase was due to a variety of factors, a large one being Caltrain’s inaccurate 2022 estimate, which was derived primarily from design, not construction, consultants. The cost has also increased due to the need to work around live electrified infrastructure, which was fully implemented in September 2024.  

“It’s not a fact that we are anywhere near proud of, so understanding that [the Guadalupe River Bridge] project was running into serious trouble we took the decision to change out leadership,” Executive Director Michelle Bouchard said during a board meeting. “We are going through the process of lessons learned not only for this program but also identifying gaps in the delivery division to ensure we are doing better, being more transparent and holding ourselves accountable to the promises we make to the public taxpayers.”

Boardmember Pat Burt said he is still optimistic about the Guadalupe River project, despite previous instances of poor planning.

“With electrification early on, it was not only the right internal and external teams but part of that was a real inadequate risk identification and risk mitigation plan and not enough real extensive design upfront,” Burt said. “I had real serious concerns on the previous project management team and leadership that is no longer with us. … I do have a great deal of confidence in the approach that has now been taken.”

The bridge project is expected to be completed by 2027. 

The board adopted both operating and capital budgets during the board meeting June 5.