Builder for $6B CA Reservoir Faces Local Hiring Concerns

Builder for $6B CA Reservoir Faces Local Hiring Concerns

In a state perpetually grappling with the specter of drought, a colossal engineering feat is taking shape in Northern California, promising to rewrite the region’s water future. The Sites Reservoir Project, a monumental infrastructure initiative with a price tag exceeding $6 billion, represents one of California’s most ambitious efforts to secure its water supply. However, as the project moves from blueprint to reality, a contentious debate has erupted, not over the need for water, but over who will build it. The selection of a Montana-based firm to lead the construction has ignited concerns among local labor groups, questioning whether the economic benefits of this massive public investment will flow to the very communities it is designed to serve.

This conflict places the promise of regional water security in direct tension with the demand for local job creation, raising a critical question for the state’s largest water storage project in decades. At the heart of the matter is whether an out-of-state contractor, despite its qualifications, can truly connect with and commit to the Northern California workforce. The outcome of this dispute will not only shape the future of the Sites Reservoir but could also set a precedent for how major public works projects balance expertise with local economic empowerment across the state.

As California Bets Over $6 Billion on a New Reservoir is its Montana-Based Builder Leaving Local Workers Behind

The controversy began when the Sites Project Authority selected Bozeman, Montana-based Barnard Construction for the critical role of Construction Manager-at-Risk (CMAR). This project delivery method brings the construction manager into the design process early, a collaborative approach intended to optimize efficiency and cost. Barnard was awarded an initial $1 million pre-construction contract to begin the first of a two-phase planning process, which includes conducting constructibility reviews and engaging in community workshops. As the CMAR, the firm is positioned to ultimately oversee a staggering $3 billion reservoir and roads construction package.

The decision, however, was immediately met with skepticism from local labor organizations. The Nor Cal Carpenters Union publicly challenged the selection, voicing doubts about an out-of-state company’s ability to fulfill the project’s stringent local hiring requirements. The union’s primary concern centers on Barnard’s perceived lack of deep-rooted connections to the regional labor force, a factor they argue is essential for meeting ambitious employment mandates designed to benefit the local economy.

The Stakes a Massive Solution to an Enduring Drought

To understand the weight of this dispute, one must appreciate the sheer scale of the Sites Reservoir. This is not simply another dam but a sophisticated, 1.5 million acre-foot off-stream storage facility. Located west of Maxwell in the Sacramento Valley, its mission is to capture and divert high water flows from the Sacramento River during wet years, storing a critical reserve that can be deployed during California’s increasingly frequent and severe droughts. This stored water will provide a vital supply for cities, farms, and ecosystems when other sources run dry.

The project’s scope is immense, with a total estimated cost ranging from $6.2 billion to $6.8 billion. The engineering plan involves constructing two large dams, nine smaller embankments, and major infrastructure, including an inlet/outlet structure and a new bridge. When completed, the reservoir will increase Northern California’s water storage capacity by up to 15%, representing a generational investment in the state’s water resilience infrastructure.

A Contentious Contract the Dispute Over Local Jobs

The disagreement over the contract illuminates a fundamental divide in perspective. The Nor Cal Carpenters Union, led by Executive Officer Jay Bradshaw, has been the most vocal critic, arguing that Barnard’s Montana headquarters makes it an outsider ill-equipped to navigate the local labor market. The union’s position is that a firm without established local relationships will struggle to recruit the skilled craftspeople necessary to meet the hiring goals, potentially leading to a workforce sourced from outside the region.

Barnard Construction forcefully refuted these claims. In a letter to the Sites Project Authority, company Vice President Mike Fuller labeled the union’s statements as “misinformation.” He emphasized Barnard’s extensive history in California, citing nearly four decades of work and hundreds of completed projects within the state. Fuller also noted a crucial detail from the bidding process: the other two finalists for the CMAR contract were also headquartered out-of-state, suggesting that Barnard’s selection was based on merit, not its address.

Voices from the Divide Perspectives on the Hiring Mandate

Amid the back-and-forth, the Sites Project Authority has remained steadfast in its decision. JP Robinette, the authority’s engineering and construction manager, publicly affirmed his confidence in the selection process, describing it as “exceptionally stringent.” He stated that the evaluation committee ranked Barnard as the highest-rated proposer, concluding it offered the best overall value. A formal report later confirmed that a review of the union’s concerns did not alter the staff’s recommendation.

This official stance underscores the authority’s belief that Barnard can and will meet the project’s specific employment mandates. These rules are not suggestions but contractual obligations: at least 20% of the labor must be sourced from the immediate local counties of Colusa, Glenn, and Yolo, with a wider mandate requiring 50% of the workforce to reside within the greater Sacramento Valley region. The authority’s defense rests on the conviction that its rigorous vetting process correctly identified a partner capable of delivering both the physical reservoir and the promised local jobs.

The Path Forward Mandates Milestones and a 2027 Start Date

With the contractor in place, the project is rapidly moving toward its groundbreaking. Significant regulatory and financial hurdles have already been cleared. The federal government issued a “record of decision,” finalizing the environmental review process and authorizing a federal contribution of up to 25% of the total cost. Furthermore, the state of California has already allocated $1.1 billion toward construction, signaling strong governmental support.

The timeline is now solidifying. The two-phase preconstruction process is underway, setting the stage for major physical work to begin next year, in early 2027. If this schedule holds, the Sites Reservoir is expected to be fully constructed and operational by 2033, marking a new chapter in California’s long and complex water story. The success of this monumental undertaking will be measured not only in acre-feet of water stored but also in the fulfillment of its promise to the local workforce.

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