DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend 2024 Byllesby Dam Capital Improvement Program To Utilize 2024 Environmental Legacy Fund And Authorization to Execute Second Contract Amendment With The Boldt Company For Construction Manager/General Contractor Services For Phase II Of Byllesby Dam Water-To-Wire Development Project
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PURPOSE/ACTION REQUESTED
Authorize amendment to the 2024 Byllesby Dam Capital Improvement Program budget to utilize 2024 Environmental Legacy Fund and execution of a second contract amendment with The Boldt Company for Phase II of the Byllesby Dam Water-To-Wire Development Project.
SUMMARY
Dakota County owns the Byllesby Dam and operates its high-hazard hydroelectricity facility under the Federal Energy Regulatory Commission (FERC) safety regulations. Over the past decade, the Dakota County Board of Commissioners has approved significant capital investments into the project for FERC-required dam safety improvements. By Resolution No. 15-532 (October 20, 2015), the Dakota County Board of Commissioners authorized staff to execute a contract for preliminary design tasks on a turbine upgrade project to replace the existing century-old equipment in the dam.
To complete this project, County staff developed a team including an engineering consultant to provide project design, a turbine manufacturer to provide turbine and generation equipment in a complete package (e.g., water-to-wire equipment), and a general contractor for installation of the equipment and modification to the powerhouse structure.
Due to the complexities in the design, construction, and installation of the water-to-wire facilities, including new turbines and generators to maximize the electric power output of the dam in the future, staff concluded that the standard low bid methodology of awarding the construction contract was not appropriate and was unlikely to provide the best value to the County. By Resolution No. 18-538 (October 23, 2018), in accordance with the authority granted in Minn. Stat. § 130G.535, the County Board approved utilizing a special type of contractor relationship that provides both construction management and general contractor services on the project and allows staff to develop and solicit a request for qualification for services.
By Resolution No. 19-773 (October 29, 2019), the Dakota County Board of Commissioners authorized the execution of a contract with The Boldt Company to perform Construction Manager/General Contractor Services related to the redevelopment of the site for the project. By Resolution No. 21-368 (July 20, 2021), the County Board authorized the execution of a contract with The Boldt Company to perform Construction Manager/General Contractor Services for Phase II of the development project. By Resolution No 22-286 (July 19, 2022), the County Board authorized the first amendment to the contract, bringing the total contract value to a not-to-exceed amount of $22,652,875.42.
The requested contract amendment with The Boldt Company in the amount of $3,682,626.59 is necessary to cover costs associated with dam safety, electrical and mechanical supporting components, and high voltage interconnection work associated with selling power on the open market to increase dam revenues and reduce the project payback period.
RECOMMENDATION
recommendation
Staff recommends authorization to amend the 2024 Byllesby Dam Capital Improvement Budget and authorize execution of a second contract amendment with The Boldt Company bringing the total contract amount to $26,335,502.01, subject to approval by the County Attorney’s Office as to form.
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EXPLANATION OF FISCAL/FTE IMPACTS
Since the most recent project budget amendment by Resolution No. 23-524 (November 28, 2023), the scope of the electrical connection components on the project have increased as agreements have been developed with Xcel Energy, including additional components for protection of equipment in the Xcel Energy substation and dam resulting from an increase in size of the transformer from 13kV to 69kV.
This proposed budget amendment includes the substation-related costs within the change order for The Boldt Company as well as the cost of additional equipment related to the substation and the requirements of interconnection. The November 28, 2023, budget amendment covers a portion of the requested contract amendment with The Boldt Company. The total amount of requested additional funding needed to cover to the substation and interconnection requirements is $1,550,500 using 2024 Environmental Legacy Fund dollars.
Revenue
Environmental Legacy Fund $1,550,500
Total Revenue $1,550,500
Expense Byllesby Dam Upgrade BD00008 $1,550,500
Total Expense $1,550,500
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, by Resolution No. 15-532 (October 20, 2015), the Dakota County Board of Commissioners authorized staff to execute a contract for preliminary design tasks on a turbine upgrade project to replace the existing century-old equipment in the dam; and
WHEREAS, to complete this project, County staff developed a team including an engineering consultant to provide project design, a turbine manufacturer to provide turbine and generation equipment in a complete package (e.g., water-to-wire equipment), and a general contractor for installation of the equipment and modification to the powerhouse structure; and
WHEREAS, due to the complexities in the design, construction, and installation of the water-to-wire facilities, including new turbines and generators to maximize the electric power output of the dam in the future, staff concluded that the standard low bid methodology of awarding the construction contract was not appropriate and was unlikely to provide the best value to the County; and
WHEREAS, by Resolution No. 18-538 (October 23, 2018), in accordance with the authority granted in Minn. Stat. 130G.535, the County Board approved utilizing a special type of contractor relationship that provides both construction management and general contractor services on the project and allows staff to develop and solicit a request for qualification for services; and
WHEREAS, by Resolution No. 19-773 (October 29, 2019), the Dakota County Board of Commissioners authorized the execution of a contract with The Boldt Company to perform Construction Manager/General Contractor Services related to the redevelopment of the site for the project; and
WHEREAS, by Resolution No. 21-368 (July 20, 2021), the County Board authorized the execution of a contract with The Boldt Company to perform Construction Manager/General Contractor Services for Phase II of the development project; and
WHEREAS, by Resolution No 22-286 (July 19, 2022), the County Board authorized the first amendment to the contract, bringing the total contract value to a not-to-exceed amount of $22,652,875.42; and
WHEREAS, the current amendment in the amount of $3,682,626.59 is necessary to cover costs associated with dam safety, electrical and mechanical supporting components, and high voltage interconnection work associated with selling power on the open market to increase dam revenues and reduce the project payback period; and
WHEREAS, staff recommends execution of a second contract amendment with The Boldt Company bringing the total contract amount to $26,335,502.01.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute a second contract amendment with The Boldt Company to provide Construction Manager/General Contractor services for Phase II of the Byllesby Dam Water-To-Wire Redevelopment Project in the amount not to exceed $26,335,502.01, subject to the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby amend the 2024 Byllesby Dam Capital Improvement Program Budget as follows:
Revenue
Environmental Legacy Fund $1,550,500
Total Revenue $1,550,500
Expense
Byllesby Dam Upgrade BD00008 $1,550,500
Total Expense $1,550,500
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PREVIOUS BOARD ACTION
15-532; 10/20/15
18-538; 10/23/18
19-773; 10/29/19
20-319; 07/14/20
21-368; 07/20/21
22-286; 07/19/22
23-524; 11/28/23
ATTACHMENTS
None.
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Nikki Stewart
Author: Mark Ryan