Increased labor and building materials, along with changed spillway design to blame, engineers say
Contractors use a floating barge in August 2023 to dredge sediment in order to create a firm, stable base for the new diversion tunnel’s intake at Anderson Reservoir. An earthquake safety project to rebuild the 1950-era Anderson Dam has increased in price to $2.3 billion. The cost to bring Anderson Dam, which holds back the largest reservoir in Santa Clara County, up to modern earthquake standards has increased to $2.3 billion, water officials said Monday.
In 2020, federal dam safety officials ordered the reservoir along Highway 101 between San Jose and Morgan Hill drained and its dam rebuilt to modern seismic standards. They feared its 240-foot-high earthen dam, built in 1950, could collapse in a major earthquake on the nearby Calaveras Fault, putting the lives of thousands of residents at risk.
“Costs are escalating,” Varela said. “We have no way to slow it down. Do we pause our projects, put them on hold, until costs go down? We have to move forward.” On Monday, engineers in charge of the Anderson project pointed to two factors for the jump in cost: First, they said, state and federal officials overseeing their work from the state Division of Safety of Dams, and the Federal Energy Regulatory Commission, are requiring the concrete spillway to be longer and deeper than their original proposal, which will add about $75 million.
The trend of higher construction costs is happening on other public works projects around the Bay Area. The price tag to bring BART to San Jose has tripled in price in recent years to $12.2 billion — some of which planners attribute to rising construction materials and labor costs. “Labor rates have gone up,” he said. “Engineering costs have gone up. Demand is higher. People are vying for limited resources.”Cause of oil sheen off California coast still undetermined, but contained, Coast Guard says
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