DEPARTMENT: Parks
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contract Amendment With Xcel Energy For Utility Relocations For Minnesota River Greenway, Project P00127
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PURPOSE/ACTION REQUESTED
Authorize contract amendment with Xcel Energy to include updated costs for construction of a new transmission line structure to facilitate the construction and operation of the Minnesota River Greenway.
SUMMARY
The Dakota County Board of Commissioners adopted the Minnesota River Greenway Plan by Resolution No.11-516 (October 18, 2011), with several segments and trailheads constructed in fulfillment of the plan. A 3.26-mile trail and a 0.32-mile pedestrian bridge through Fort Snelling State Park are the remaining segments needed to complete the greenway (Attachment: Project Map). Construction of the trail portion of the project began in November 2023 and is ongoing. Design and permitting of the bridge portion of the project were completed in 2024, with construction commencing in April 2025.
The bridge design is contingent on the relocation of a nearby transmission line structure owned by Xcel Energy. By Resolution No. 21-118 (March 9, 2021), Dakota County executed a relocation agreement with Xcel Energy to participate in the cost of constructing a single-pole steel structure with a concrete foundation as a replacement to the existing three-pole timber structure; the steel structure is necessary to allow for a narrower profile and to eliminate the need for guy wires at the location of the bridge. Through this agreement, Dakota County has paid for 80 percent, or $390,000, of the estimated cost for this structure replacement. Replacement of the structure was completed in May 2025 and allows for construction work in the immediate area to proceed. Xcel Energy has submitted an updated cost estimate for the replacement that is $131,771 higher than the initial estimate, due to higher labor and material costs, for a new total cost of $619,771. Dakota County’s additional estimated cost obligation for this increase following previous payments is $229,771.
RECOMMENDATION
recommendation
Staff recommends execution of an amendment to the original relocation agreement to reflect actual costs incurred in Xcel Energy’s construction process.
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EXPLANATION OF FISCAL/FTE IMPACTS
Approved Parks Capital Improvement Plans (CIP) include a total project budget of $24,516,106, including expenditures for the trail portion of the project. The current breakdown of the funding sources in the Parks CIP is provided below. There is an uncommitted fund balance of $1,790,694 available to execute the proposed contract amendment.
|
Funding Source |
Approved Budget |
Available Budget |
|
Sales and Use Tax |
$3,784,226 |
$654,866 |
|
Regional Railroad Authority Fund |
$2,610,131 |
$933 |
|
County Park Fund |
$186,358 |
$0 |
|
State of Minnesota |
$5,093,794 |
$0 |
|
Parks & Trails Legacy Funds |
$4,090,569 |
$34,721 |
|
Levy |
$914,001 |
$0 |
|
Federal Award |
$3,508,000 |
$0 |
|
County Program Aid |
$1,058,719 |
$0 |
|
Environmental Legacy Fund |
$2,099,285 |
$0 |
|
Transportation Funds |
$70,849 |
$0 |
|
Total |
$23,415,932 |
$690,520 |
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Minnesota River Greenway (MNRGW) runs along the south side of the Minnesota River in Eagan and Burnsville, extending from I-35W in Burnsville to Lilydale Regional Park in Saint Paul; and
WHEREAS, by Resolution No. 11-516 (October 18, 2011), the Dakota County Board of Commissioners adopted the MNRGW Master Plan (Master Plan); and
WHEREAS, by Resolution No. 20-163 (March 24, 2020), the Dakota County Board of Commissioners approved schematic design for the Project, including the relocation of several power line structures owned by Xcel Energy; and
WHEREAS, by Resolution No. 21-118 (March 9, 2021), the Dakota County Board of Commissioners authorized execution of a contract with Xcel Energy to replace and relocate a transmission line structure to enable construction of the MNRGW bridge for an amount not to exceed $471,000; and
WHEREAS, Xcel Energy has submitted an updated cost of $619,771 for construction of the new structure, driven by labor and material cost increases over the past four years; and
WHEREAS, staff has reviewed the costs submitted by Xcel Energy and accepts the revised cost estimate due to labor and material inflation.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Parks Director to execute a contract amendment with Xcel Energy for the design and construction of a transmission line structure required for the Minnesota River Greenway Fort Snelling Segment project in an amount not to exceed $619,771, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
11-516; 10/18/11
20-163; 3/24/20
21-119; 3/9/21
ATTACHMENTS
Attachment: Project Map
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Niki Geisler
Author: Joe Morneau