Rochester City Council Study Session - November 25, 2024

The Rochester City Council held a study session on November 25, 2024, at 3:30 PM in the Government Center Council Chamber. The meeting covered several items: the 2024 National Community Survey (postponed), the P2S Comprehensive Plan Five-Year Update, proposed changes to the Olmsted County General Land Use Plan (GLUP), the Fire Service Contract with surrounding townships, and the 2025 study session schedule. No votes or formal decisions were taken; the session was for discussion and feedback.

2024 National Community Survey Results (Postponed)

• Brandon Barnett from Polco was scheduled to present the survey results via Zoom but experienced technical difficulties. The item was postponed to a future study session in January 2025.

P2S Comprehensive Plan Five-Year Update

• City Planner Elliott Mohler presented the progress on the five-year update, awarded to Bolton & Menk in June 2024. The update focuses on industrial land inventory, residential/mixed-use land analysis, emerging trends post-COVID, priority evaluation, and data updates.
• Public engagement is limited to inform and consult, as the plan is a technical update rather than an overhaul. Key themes from existing plans include diversification of transportation, expansion of amenities, placemaking, housing diversity, fiscal responsibility, and health in all policies.
• Councilmembers discussed the need for the plan to reflect the 2020 Census, the importance of including an equity analysis map and a development constraints map, and the overlap with the Mayor's Vision 2050. Councilmember Dennis raised concerns about accessible transportation for people with disabilities. Mayor Norton noted that rail (Amtrak) discussions are not in the plan and suggested a future study session on that topic.

Olmsted County General Land Use Plan (GLUP) Changes

• Assistant City Administrator Ryan Yetzer presented the proposed amendment to the county's GLUP, which would remove the city's veto power over property removals from the Urban Service Area (USA). Currently, a property owner needs a resolution of support from the city; the proposed change would allow the county board to make the final decision after the city provides a recommendation (with findings) within 60 days.
• Yetzer outlined the importance of the USA for housing affordability, infrastructure investment (sewer, water, roads, fire stations), environmental protection, and coordinated growth. He noted that the city’s investments (e.g., sewer extensions, water towers, substations) are at risk if the county can overrule city decisions.
• Councilmembers expressed strong concerns about losing control over growth management, the potential for increased costs to the city, and the negative impact on housing development. Councilmember Dennis urged a joint meeting with county commissioners before the December 17 county board hearing to find a collaborative solution. Councilmember Keene questioned who benefits from the change, concluding it may benefit individual property owners at the expense of broader planning.
• Mayor Norton and others emphasized the importance of maintaining the city-county relationship and urged staff to send a letter or formal comment reflecting the council’s position before the December 17 deadline. No formal action was taken.

Fire Service Contract

• Fire Chief Eric Kerska and Ryan Yetzer presented the proposed renewal of the fire protection contract with the townships of Rochester, Marion, Cascade, and the west half of Haverhill. The current 10-year contract expires at the end of 2025.
• Proposed changes include a simplified 4.5% annual increase (instead of the current formula or 4% option), a specified list of services (e.g., fire suppression, vehicle extrication, hazmat), and a coordination clause tying the contract to growth decisions. The chief noted that RFD's operational costs have increased ~4.72% annually on average, and the 4.5% is a compromise.
• Councilmembers debated whether the city is subsidizing township fire services. Councilmember Keene argued that without a detailed cost analysis, the city may be undercharging. Councilmember Wall asked about the cost difference for a $300,000 house in the city vs. township; a past analysis showed township residents paid slightly less, but the gap may have grown. Councilmember Dennis noted that Mayo Clinic calls may disproportionately use city resources, complicating subsidy arguments.
• The chief noted that if growth in townships increases call volume, the city may need to withdraw from the contract to protect coverage for Rochester residents. The council directed staff to continue negotiations with townships, consider a shorter-term contract (e.g., 2-year), and explore a property-value-based fee structure to better align costs with growth. No vote was taken.

Study Session Schedule

• City Administrator Alison Zelms presented the tentative 2025 study session calendar. The next study session is scheduled for January 15, 2025, and will include training on city council governance with Tierney and Whitmore.

Key Outcomes

• No formal votes were taken on any agenda item.
• The 2024 National Community Survey presentation will be rescheduled for January 2025.
• Staff will refine the comprehensive plan update based on council feedback and return for another study session in February/March 2025.
• Regarding the GLUP amendment, staff will prepare a formal comment letter reflecting council concerns and continue discussions with county staff before the December 17 county board meeting. Council expressed a desire for a joint meeting with county commissioners.
• For the fire service contract, staff will continue negotiations with the townships, aiming to bring a revised contract for council consideration in Q1 2025. Options include a shorter term, a property-value-based formula, and revised coordination language specific to fire services.