On August 11, 2026, East Bay Municipal Utility District staff told the Board's Planning Committee that the 154-million-gallon Central Reservoir in Oakland, built in 1910, will be replaced with three 14-million-gallon concrete tanks through progressive design-build, a method new to the District. The design-build contract is expected to reach the Board in July 2027.
An owner advisor first
The September 8, 2026 Board agenda recommended an agreement with Carollo Engineers worth up to US$9,216,911 for owner advisor services, covering procurement of the design-build team, design review, cost and risk validation and construction support. The request for proposals went to 23 firms and drew three proposals. Staff said the method could cut site and tank construction from about five and a half years to four.
New rules for a new method
On August 11, 2026 the Board adopted Policy 5.02, Conflict of Interest for Design-Build Procurement. The Central Reservoir is the District's first major progressive design-build project for the water system, and the April 28, 2026 owner-advisor agreement with Brown and Caldwell, worth up to US$5,899,843 for the Main Wastewater Treatment Plant dewatering project, follows the same owner-advisor model.
A larger program behind it
The US$2.86 billion Water System capital program planned for FY 2026–FY 2030 is led by US$758.1 million for distribution pipelines and US$472.6 million for water treatment. Most construction and supply contracts are still awarded to the lowest responsive, responsible bidder, with formal bids required for purchases over US$70,000.
Which other projects could follow the design-build route, who already holds EBMUD's major treatment, pipeline and supply contracts, and where suppliers should focus first are set out in the brief. The full report, East Bay Municipal Utility District: Utility Account Brief, is available for USD 499. For a free overview, read the East Bay Municipal Utility District Utility Snapshot.