That intersection has what I've called a landing area, although perhaps reversed from the ones I typically encounter. It appears to allow bicycles to exit from the traffic lane, line up the approach to the RR track, then re-enter the lane without swinging wildly into the traffic lane.

That is one feature that the Santa Cruz roundabout is lacking. Adding an area for bicycles to recover after crossing the tracks would encroach on the sidewalk, and if that is a problem, then the sidewalk would need to be moved further onto liquor store property.

The City/State likely already exercised eminent domain on building the roundabout, so they could have made it bigger for safety, if they had desired. Of course, it would have had to be designed so cars would not mistake a bicycle pathway around the tracks as the same as a car route, leading them to exit from the road onto the sidewalk or into parked cars.