California’s “once-in-a-generation” reservoir plan runs into a costly complication

California is pushing its most significant new reservoir in decades

I’ve covered plenty of water projects, but Sites Reservoir is being framed as a once-in-a-generation bet on storage. The plan would create a 13-mile-long reservoir in rural Colusa and Glenn counties, about 70 miles northwest of Sacramento.

It would pipe water in from the Sacramento River rather than sit on a major waterway, and it’s positioned as California’s largest new reservoir in nearly 50 years.

The price tag is rising, and the timeline is tight

The total cost of Sites is now estimated at roughly $6.2 billion to $6.8 billion, and the project team wants to break ground this year or early next year.

The main construction contract alone is valued at around $3 billion and includes design assistance, construction of two large and several smaller dams, roads, and bridges. Officials are targeting completion by 2033, leaving little room for surprises.

Choosing a contractor is becoming complicated

Just as the project inches toward construction, a labor dispute is landing at the worst possible time. Montana-based Barnard Construction is expected to be selected as the main contractor following a competitive process that included three finalists.

Project leadership says Barnard scored highest on factors like know-how, understanding of the work, and overall value. But a powerful Northern California union is urging decision-makers to slow down.

Why an out-of-state builder is drawing heat

The Nor Cal Carpenters Union argues Barnard is the wrong fit for one of California’s biggest infrastructure jobs.

Their core claims are that the company has not exclusively employed union labor, lacks sufficient staffing depth, and lacks strong local ties to assemble the thousands of skilled workers this project could demand.

In the union’s view, those gaps increase the risk of delays, quality problems, and cost overruns.

Local hiring rules raise the stakes for labor planning

This controversy isn’t just about pride or politics; it’s also about meeting specific workforce requirements.

The Sites Reservoir Authority would require about 20% of construction hires to come from Yolo, Colusa, and Glenn counties, and about 50% of hires to live in the Sacramento Valley.

Union leaders say relationships and connections are what make those targets achievable, not just a signature on paper.

Project leaders say they vetted the firm and stand firm

Officials at the Sites Project Authority say they have reviewed the union’s concerns and still support Barnard. Their message is simple: the bidding process was competitive, all finalists were qualified, and Barnard ranked highest.

The agency’s engineering and construction manager has also emphasized that the priority is to put Californians to work on the job. From the authority’s perspective, momentum matters if they want to start on schedule.

The union warns that a workforce mismatch can become a cost spiral

Union representatives are blunt that they see trouble ahead. They point to the idea that a contractor without deep California labor connections might rely more on out-of-state workers, making it harder to hit local hiring targets and creating logistical challenges.

They also argue that workforce instability can ripple into slower progress, rework, and change orders. In a megaproject, even small schedule slips can add up to big dollars.

Past performance is being cited as a cautionary tale

To back their case, union leaders highlight Barnard’s role in the Keeyask Generation Project in Manitoba, a major hydropower build criticized for slow progress and cost overruns.

The union is essentially saying this is what can happen when a complex job runs longer than planned. Barnard did not comment directly in the provided reporting, but it has responded in writing to dispute what it calls misinformation.

Barnard counters that it knows California and can partner with the union

In its letter to the Sites authority, Barnard says it has worked in California for nearly 40 years and completed hundreds of projects, stressing safety and quality.

The company points to work such as the Central Subway tunnels in San Francisco and the Los Vaqueros Reservoir expansion.

Barnard also says the State Building Trades Council of California, representing multiple crafts and locals, is committed to supporting and working with it.

The California Water Commission holds a powerful lever

Even if the Sites board approves the contractor, the California Water Commission can influence what happens next because it controls a significant pool of early funding.

Commissioners have said they want assurance that the state’s $1.1 billion in voter-approved startup money supports a workable labor arrangement and a contractor that can deliver.

Commission staff have also signaled they can consider project changes and feasibility concerns when determining final awards.

Funding is a patchwork that depends on confidence

Sites is not just a state project, it’s a financing puzzle. The plan relies on 2014 voter-approved bond money, plus federal funding, plus payments from roughly two dozen urban and agricultural agencies that will receive storage allocations.

The Metropolitan Water District of Southern California is the biggest beneficiary and a major contributor. Some Bay Area agencies are also in the mix. Rising costs make every partner more cautious.

Approvals and opposition still sit between plans and shovel

The contractor fight lands on top of other hurdles. The authority still needs key approvals, including water rights to capture flows from the Sacramento River.

Environmental organizations and tribal groups have opposed the project, warning about ecological impacts from pulling river water, including harm to fish.

At the same time, some water agencies are nervous about the expanding price tag. Sites can be both urgent and controversial at the same time.

If you want a reminder that California’s water story stretches back thousands of years, you can walk on authentic Ice Age hunting grounds at this ancient California lake, which is a fascinating detour.

What I will watch as this mega reservoir moves forward

If you’d like to know whether Sites stays on track, please follow three threads first: whether the labor dispute is resolved with clear commitments that satisfy funders and the union.

Whether the Water Commission signals continued support for the $1.1 billion state investment, and whether the project secures water rights and locks in partner funding. A reservoir this large is built on trust as much as concrete.

If you want a vivid example of what happens when California’s water system breaks down, this California lake is saltier than the Pacific Ocean, kicks up toxic dust, and smells like decay is hard to forget.

What do you think about California’s “once-in-a-generation” reservoir plan running into a costly complication? Please share your thoughts and drop a comment.

This slideshow was made with AI assistance and human editing.

Read More From This Brand:

• Small towns, mirror lakes, and forest roads make this California region worth the detour
• Discover the uber-toxic California lake where boat racers shattered world records
• 5,000 ancient carvings in this California lake tell a still-undecipherable story