Labor, materials and permitting costs send price tag skyrocketing on major water project.
In the latest setback for a project that has been fraught with delays and cost overruns for more than a decade, the price tag to rebuild Anderson Dam — Santa Clara County’s largest — to improve earthquake safety is nearly doubling, from $648 million to $1.2 billion.
The district drained it a year ago under orders from federal dam safety regulators. Crews broke ground in July on the first part of the repair job, building a huge new outlet tunnel, which is scheduled to be completed in 2024. The entire job to rebuild the dam and spillway won’t be finished until 2030.
When the district built the dam in 1950, scientists thought the nearby Calaveras Fault was inactive. And water district officials believed that the dam was anchored in bedrock. At first, in 2011, the district planned to strengthen the existing dam. Then, district officials said the cost would be $193 million, with construction beginning in 2017 and taking three years. But new trace faults found in the area required a new dam to be constructed, doubling the price by 2016 to $400 million.“The money we spend now is going to be a drop in the bucket compared to what we would have spent if we fixed it later,” Hakes said. “Or if there was an emergency.
Breaking the project into two segments — the tunnel and the dam rebuilding afterward — increased the timeline from 5 to 10 years, he said, which has further raised the price tag.
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