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November 09, 2023

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Joe

Ooops


Anderson Dam: Cost to rebuild major reservoir rises to $2.3 billion, tripling from two years ago

Increased labor and building materials, along with changed spillway design to blame, engineers say


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. That’s double what was estimated a year ago, triple the price tag from two years ago, and nearly certain to drive water rates higher next year across Silicon Valley.

“It’s very disturbing,” said John Varela, chairman of the Santa Clara Valley Water District, a government agency based in San Jose that owns the dam and is is overseeing the project.

“The cost escalations are just absurd,” he added. “It’s like a taxi cab when you go inside for a cup of coffee and the meter keeps running and your $5 fare goes to $10 and you say ‘Wait a minute.'”
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I'm not sure about the taxi analogy, but no one should be surprised that a public works project has escalating costs--after all we have the Inflation Production Act money flowing all over.

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