DEPARTMENT: Facilities Management
FILE TYPE: Regular Action
TITLE
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Authorization To Execute Contract With McKinstry Essention, LLC, For Energy Improvements Project Phase Two
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PURPOSE/ACTION REQUESTED
Authorize execution of a contract with McKinstry Essention, LLC, for the Energy Improvements Project Phase Two.
SUMMARY
Dakota County operates over 1.6 million square feet of buildings, including 10 libraries, three service centers, detention and 911 centers, maintenance facilities, and dozens of park buildings and structures. These facilities consume electricity and natural gas, totaling the taxpayers $2.25 million in annual expenses in 2023.
The Phase One Energy Improvements project converted over 14,000 lights to LED, added approximately one megawatt of solar across four sites, and completed HVAC retrocommissioning work at the Northern and Western Service Centers. The lighting and HVAC work was completed over the course of 2024 with the solar coming online in February and March 2025. Countywide facilities energy data from 2023 to 2024 showed a decrease in consumption of 7.7 percent and a cost reduction of $263,000 equaling 12 percent. The completed work in 2025 added another $227,000 in savings, reducing total electricity and natural gas expenses to $1.76 million for 2025. Note these numbers are total expenses countywide and have some consideration for the variability in overall energy market pricing.
Building on the success of Phase One, staff has continued the partnership with McKinstry to explore options to maximize the County's return on investment in additional energy projects. By Resolution No. 25-457 (September 23, 2025), McKinstry performed an Investment Grade Audit in which they reassessed all County facilities for energy savings potential. The Phase Two project will save an additional 10 to 12 percent on top of Phase One savings. Note that these savings are based on buildings where the work is performed, and the bills specifically associa...
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