Dakota County

Physical Development Committee

of the Whole

Minutes

Tuesday, September 16, 2025

9:00 AM

Conference Room 3A, Administration

Center, Hastings

(or following budget workshop)

Call to Order and Roll Call

The meeting was called to order at 9:40 a.m. by Commissioner Holberg.

Commissioner Mike Slavik

Commissioner Joe Atkins

Present

Commissioner Laurie Halverson

Commissioner William Droste

Chairperson Mary Liz Holberg

Commissioner Liz Workman

Absent

Commissioner Mary Hamann-Roland

Also in attendance were Heidi Welsch, County Manager; Tom Donely, First Assistant County

Attorney; Georg Fischer, Physical Development Division Director; Liz Hansen, Administrative

Coordinator.

The audio recording of this meeting is available upon request.

Audience

Commissioner Holberg asked if there was anyone in the audience that wished to address the

Physical Development Committee of the Whole on an item not on the agenda or an item on

the consent agenda. No one came forward and no comments were submitted to

CountyAdmin@co.dakota.mn.us.

Approval of Agenda (Additions/Corrections/Deletions)

3.1

Motion: Mike Slavik

Ayes: 5

Second: Joe Atkins

Consent Agenda

Approval Of Minutes Of Meeting Held On July 22, 2025

Motion: Joe Atkins

4.1

Second: Laurie Halverson

Ayes: 5

Regular Agenda

Authorization To Adopt 2024-2044 Dakota County Solid Waste Management

5.1

Plan

Motion: Joe Atkins

Second: William Droste

Renee Burman, Environmental Initiatives Supervisor, presented this topic and

responded to questions.

Staff and committee members discussed budget constraints and the use of

Environmental Legacy Funds (ELF) for waste management. The plan aims to

reduce reliance on county funds by pursuing external grants, focusing on

strategies like organic curbside collection to divert waste efficiently and

cost-effectively. A key part of this strategy is to explore available external

funding sources. Mr. Fischer emphasized the need to secure additional funding

from the state solid waste management tax (SCORE funding) for essential

county solid waste management activities.

WHEREAS, Minnesota counties are responsible for developing projects and

programs to achieve state goals for waste management; and

WHEREAS, the Minnesota Pollution Control Agency (MPCA) adopted the

2022-2042 Metropolitan Solid Waste Management Policy Plan (Policy Plan) on

January 30, 2024; and

WHEREAS, Minn. Stat. § 473.803 requires each metropolitan county to revise

its current solid waste management plan to implement the revised Policy Plan;

and

WHEREAS, the Policy Plan prescribes strategies that must be incorporated into

county-specific plans, including required strategies and optional strategies that

must meet a minimum point threshold; and

WHEREAS, stakeholder engagement was conducted and comments were

gathered on waste management barriers and opportunities, timing, and needs

for a preliminary set of required and optional strategies from the MPCA Policy

Plan; and

WHEREAS, by Resolution No. 24-368 (July 30, 2024), the County Board

authorized release of the draft 2024-2042 Dakota County Solid Waste

Management Plan (2024-2024 Management Plan) for a 30-day public review

and comment period; and

WHEREAS, the 2024-2044 Management Plan incorporates input from

stakeholder engagement, public review, the Dakota County Planning

Commission, and the County Board; and

WHEREAS, the 2024-2024 Management Plan was developed in accordance

with Minn. Stats. §§ 473.803 and 115A; and

WHEREAS, the 2024-2024 Management Plan communicates Dakota County’s

vision, policies, strategies, and tactics for solid waste management over the next

20 years; and

WHEREAS, the 2024-2024 Management Plan includes Policy Plan required

strategies and optional strategies that meet the minimum point value; and

WHEREAS, tactics and timelines have been included as required by Minn. Stat.

§ 115A.46; and

WHEREAS, revised Metropolitan county master plans must be submitted to the

MPCA Commissioner for review and approval; and

WHEREAS, by Resolution No. 24-514 (October 29, 2024), the County Board

authorized submittal of the draft 2024-2044 Management Plan, dated October

2024, to the MPCA for review and approval; and

WHEREAS, the MPCA Commissioner approved the 2024-2044 Management

Plan on August 22, 2025; and

WHEREAS, staff recommends adoption of the 2024-2044 Management Plan;

and

WHEREAS, implementation and costs will be determined annually as part of the

County Board of Commissioners' work plan priorities and approval of the

Environmental Resources Department budget.

NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of

Commissioners hereby adopts the 2024-2044 Solid Waste Management Plan.

This item was approved and recommended for action by the Board of

Commissioners on 9/23/2025.

Ayes: 4

Commissioner Slavik, Commissioner Atkins, Commissioner Halverson, and

Commissioner Droste

Nay: 1

Chairperson Holberg

Authorization To Execute Contract With McKinstry Essention, LLC, For Energy

Improvements Project Phase Two Investment Grade Audit

5.2

Motion: Mike Slavik

Second: Laurie Halverson

Mike Lexvold, Facilities Management Director, presented this item and

responded to questions.

Staff and commissioners discussed a $155,500 contract for an audit to validate

potential energy projects expected to generate positive cash flow, with savings

from reduced electrical bills covering the debt service. Phase one of energy

improvements, completed in early 2025, is projected to yield about $304,000 in

annual energy savings. A potential second phase could include additional solar

installations on up to five additional facilities, as well as other energy

improvements county-wide. This contract will help determine the feasibility of

those projects. If the project is determined to be feasible, staff will return with a

request to move forward with the identified projects and seek $4 million in capital

through either nonprofit loans backed by energy savings or other financing

options. Commissioners acknowledged the risks of solar projects but noted

current incentives and potential cost savings.

WHEREAS, Dakota County operates over 1.6 million square feet of buildings,

consuming $2,300,000 in annual energy expenses in 2023; and

WHEREAS, the Phase 1 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; and

WHEREAS, the lighting and HVAC work was completed over the course of

2024, with the solar coming online in February and March 2025; and

WHEREAS, countywide facilities’ energy data from 2023 to 2024 showed a

decrease in consumption of 7.7 percent and a cost reduction of 18 percent; and

WHEREAS, building on the success of Phase 1, staff have continued the

partnership with McKinstry to explore options to maximize the County's return on

investment in additional energy projects; and

WHEREAS, McKinstry reassessed all County facilities and another set of

projects estimated to save an additional 10 to 15 percent on top of Phase 1

savings; and

WHEREAS, these include solar at five sites, mechanical upgrades at eight to 10

buildings, HVAC retrocommissioning at more than 15 buildings, and building

envelope sealing at 15 to 20 buildings; and

WHEREAS, this scope is estimated to cost between $4,000,000 to $4,500,000

and represents the best value to the County for the work to be performed; and

WHEREAS, the next step in the process is to sign a contract for an Investment

Grade Audit with McKinstry Essention, LLC to position the project to seek utility

rebates and state and federal funding sources, which will shorten the project

return on investment and increase the net present value.

NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of

Commissioners hereby authorizes the Facilities Management Director to

execute a contract in an amount not to exceed $155,500 with McKinstry

Essention, LLC, to perform an Investment Grade Audit for Phase 2, subject to

approval by the County Attorney’s Office as to form.

This item was approved and recommended for action by the Board of

Commissioners on 9/23/2025.

Ayes: 5

Approval Of 2026 Proposed Eligible Projects List To Be Released For County

Transportation Sales And Use Tax Funds Public Hearing

5.3

Motion: Mike Slavik

Second: Joe Atkins

Jake Chapek, Assistant County Engineer, presented this item and responded to

questions.

Staff and commissioners reviewed the proposed project list for eligible

Transportation Sales and Use Tax proceeds. The list includes transportation

maintenance facilities, county highway projects, trunk highway projects that

impact county roads, transit service expansion, and regional trail projects.

Current cost estimates were also provided. Based on the current draft Capital

Improvement Program and the eligible list, staff estimate that the balance of

Sales and Use funds will drop to roughly $500,000 in 2030 before rebounding to

around $17.5M by the end of the ten-year project list. The draft project list

maintains a Sales and Use Tax balance well above the County Board’s

established threshold (-$100,000,000) to trigger further discussion on potentially

increasing the Sales and Use Tax.

WHEREAS, Minn. Stat. § 297A.993 (the Act) authorizes the Dakota County

Board to levy up to one-half of one percent sales and use tax and an excise tax

of $20 per motor vehicle to fund statutorily defined transportation and transit

projects; and

WHEREAS, by Resolution No. 17-364 (June 20, 2017), the Dakota County

Board enacted a quarter-cent sales tax and $20 excise tax on new vehicle sales

starting October 1, 2017, to fund identified transitway, transit expansion, regional

County highway, trail, and trunk highway transportation projects; and

WHEREAS, staff has identified a proposed updated list of transportation

projects eligible for Transportation Sales and Use Tax funds based on the needs

identified in the Draft 2040 Transportation Plan and through the development of

the 2026-2030 Draft Capital Improvement Program; and

WHEREAS, Board approval of the proposed eligible list for utilization of the

Transportation Sales and Use Tax will allow for a public hearing to be

scheduled; and

WHEREAS, the Act allows the County Board to dedicate the proceeds of the

Transportation Sales and Use Tax to a new enumerated project or projects by

resolution after a public hearing; and

WHEREAS, staff recommends approval of the proposed eligible project list to be

released for Dakota County’s Transportation Sales and Use Tax Funds public

hearing; and

WHEREAS, the Transportation Sales and Use Tax Funds public hearing will be

held on December 2, 2025.

NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of

Commissioners hereby approves the proposed eligible project list to be released

for the Dakota County’s Transportation Sales and Use Tax Funds public

hearing.

This item was approved and recommended for action by the Board of

Commissioners on 9/23/2025.

Ayes: 5

Physical Development Director's Report

Mr. Fischer noted two key items from the Division Director’s report: the accessible kayak

launch at Miesville Ravine Park Reserve is no longer feasible due to budget issues, and there

was a detailed discussion on regional park destinations managed by the Metropolitan Council,

focusing on size limitations and potential exceptions. These points relate to the Capital

Improvement Program (CIP) and regional park planning.

Future Agenda Items

Chair, Commissioner Mary Liz Holberg, asked the Committee if anyone had a topic they

would like to hear more about at an upcoming Physical Development Committee of the

Whole. No Commissioners requested topics for future meetings at this time.

Adjournment

Motion: William Droste

8.1

Second: Mike Slavik

On a motion by Commissioner William Droste, seconded by Commissioner Mike

Slavik, the meeting was adjourned at 10:15 a.m.

Ayes: 5

Respectfully submitted,

Liz Hansen

Administrative Coordinator