Committee approves $2.5 million Minn Kota substation cash increase and $20 million from P3 contingency into 2025 cash budget

The Metro Flood Diversion Authority Finance Committee on July 23 approved two budget change requests that together increase the 2025 cash budget by about $22,500,000. Paul Barthol, presenting the requests, said the first request adds $2,500,000 to the 2025 cash budget to cover the final construction task order for Minn Kota Power’s relocation of the Oxbow substation. "This is the final construction, task order for Minn Kota," Barthol said, listing equipment, maintenance, concrete and construction costs for the new site north of Oxbow. He added that one additional task order will follow for decommissioning the old site. Barthol described the second request as moving $20,000,000 from the P3 program contingency into the 2025 cash budget to cover P3 milestone payments required by the P3 developer agreement and the Statement of Principles (SOP). Barthol said $10,000,000 is required within the first 30 days per the SOP and another $10,000,000 is payable when the developer closes out specified non-compliance items; adding the two transfers would push the 2025 cash budget to "over $447,000,000" for the year. Mayor Mary Mahoney moved to approve items A and B; Commissioner Grinberg seconded. The committee voted unanimously in favor on a roll-call vote. Barthol told the committee that the increases do not change the program budget because other utility projects closed under budget and that staff expect WIFIA draws and other revenues to cover milestone payments as they accelerate. The committee approved both budget change requests as presented.