1. Sites Reservoir Project Faces Labor Controversy That Could Affect Timeline and Costs The Sites Project Authority selected Barnard Construction as the construction manager at risk (CMAR) for the ~$3 billion reservoir package, but two of the largest construction trade unions—the NorCal Carpenters (30,000+ members) and the California State Council of Laborers (80,000 members)—said they were not meaningfully included in Project Labor Agreement (PLA) discussions and raised serious concerns about Barnard's qualifications and California experience. Governor Newsom sent a letter emphasizing the need for labor stability. The Authority board directed staff to make significant progress on a PLA within about 30 days (by their February board meeting), and one commissioner requested a written update after that meeting and asked that the authority return in March to report on progress. Any unresolved labor disputes could delay this critical surface storage project, currently estimated at $6.2–$7.5 billion with a target operational date of October 1, 2033.
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