Rochester City Council Regular Meeting – March 17, 2025

The Rochester City Council met on March 17, 2025, at 6:00 p.m. in the Government Center Council Chamber. The meeting covered a consent agenda, six public hearings, and several discussion items, including a $600,000 AV system upgrade and a $3.29 million contract amendment for the Downtown Link Rapid Transit project. The council approved most items, with one dissenting vote on the AV RFP.

Consent Calendar

• Approved minutes of the March 3, 2025 meeting.
• Approved accounts payable of $20,720,644.26, including investment purchases of $9,999,455.06 and accounts payable of $10,721,189.20.
• Approved appointments: George Boayue to Citizens Advisory on Transit (term ending 2027), Casey McQuade to Sustainability and Resiliency Commission (term ending 2026).
• Approved multiple resolutions, contracts, and authorizations as listed in items F.1–F.7 and F.9–F.26, with no further discussion.
• Councilmember Miller noted that contract awards in items F.14, F.18, F.19, and F.21 came in a combined $1.2 million under estimates.
• Items F.8 (Council Chambers AV RFP) and F.13 (SRF contract amendment) were pulled by Councilmember Wall for separate discussion.

Public Comments & Testimony

• John Menning expressed frustration that the city does not plow, repair potholes, or sweep his street; he pays a townhouse association for those services and objected to being classified as a non-resident in a city letter.
• Molly Dennis requested a response to her February 3 transparency request, criticized Councilmember Doring for alleged slander of a civilian during the March 3 meeting, and urged the council to account for taxpayer spending publicly.

Public Hearings

G.1 – Mayo Clinic Conduit Financing ($500 million)

• Staff (Brian Anderson) explained conduit financing allows tax-exempt bonds with no liability to the city; Mayo Clinic has a double-A bond rating. The funds will support the Bold Forward Unbound project.
• Todd Heather (Mayo Clinic) and Paul Gorman emphasized the partnership and noted Mayo paid $7.8 million in property taxes in 2024 (7.7% of the city’s levy).
• Outcome: Resolution adopted unanimously.

G.2 – Reconstruction of 17½ St NW (Project J7855)

• Staff (Amy Krofsky) presented the assessment roll; maximum assessments are based on 2023 policy, with construction summer 2025 and assessments appearing in 2026.
• Councilmember Wall commended lower assessments due to school property value.
• Outcome: Resolution levying assessments and authorizing bids adopted unanimously.

G.3 – Right-of-Way Vacation (TD Bulldog Investments LLC)

• Staff (Jace Pater) presented a 130-foot right-of-way vacation no longer in use; condition approved by planning commission.
• Outcome: Resolution adopted unanimously.

G.4 – Utility Easement Vacation (Rochester Title)

• Staff (Jace Pater) described an 8-foot utility easement where a home was built in 1956; condition for replacement easement has been fulfilled.
• Applicant Sarah Batsloff (Rochester Title) confirmed replacement easement recorded.
• Councilmember Palmer inquired about the property’s sale history; applicant noted it sold many times without detection.
• Outcome: Resolution adopted unanimously; condition deemed satisfied.

G.5 & G.6 – Zone Change and Comprehensive Plan Amendment (Build Wealth MN)

• Staff (Desmond McGill) explained request to change land use from Low Density Residential to Medium Density Residential and rezone 1.07 acres from R-2 to R-3 for a 12-unit apartment complex. Original 8-acre request reduced after neighbor concerns. Applicant Mark Welch (GCUBED Engineering) confirmed neighborhood meetings occurred.
• Councilmember Keene noted the developer responded to neighbor concerns about environmentally sensitive areas.
• Outcome: Comprehensive Plan Amendment (G.6) adopted unanimously (requires supermajority). Zone Change (G.5) adopted unanimously; city attorney directed to prepare ordinance.

Discussion Items

H.1 – Council Chambers AV Implementation RFP (Item F.8)

• Staff (Deputy Administrator Parrish, Jeremiah Bauman, Jess Schuler) presented a $600,000 estimate for new AV equipment, noting current system is largely 2014 vintage and failing. Funding comes from PEG (cable franchise fees) with about $400,000 fund balance. County is a partner, contributing slightly less.
• Councilmember Wall expressed concern about cost, advocating for value engineering and reuse of serviceable items.
• Councilmember Palmer moved an amendment to direct staff to bring back multiple options (e.g., good/better/best) when awarding the contract.
• Councilmember Keene supported the amendment but warned against piecemeal upgrades.
• After discussion, the amendment passed. The main motion to authorize the RFP passed 6-1 (Councilmember Wall dissenting). Staff will include options and a recommendation showing cost impacts of cable broadcast vs. streaming.

H.2 – SRF Contract Amendment for Downtown Link Rapid Transit (Item F.13)

• Staff (Steve Samson Brown, Ms. Steinhauser) presented a $3,288,210.01 increase to a total of $20,217,865 for architectural and engineering design and construction administration. About $700,000 is due to rebidding after bids were rejected; the remainder covers construction management services (originally in Task 8, but funds were absorbed by design changes).
• Councilmember Wall noted the increase is 19.4% and requested public transparency.
• Councilmember Palmer expressed disappointment about repeated rebidding and timing.
• Staff confirmed this should be the final amendment if the project proceeds as planned.
• Outcome: Motion adopted unanimously.

Key Outcomes

• Consent Agenda: Approved with two items pulled for discussion.
• Mayo Clinic Bonds: $500 million conduit financing resolution adopted unanimously.
• 17½ St NW Reconstruction: Assessments levied and bids authorized.
• Right-of-Way and Utility Easement Vacations: Both approved with conditions.
• Build Wealth MN Zoning: Comprehensive plan amendment and zone change approved for 1.07 acres (12-unit apartment).
• Council Chambers AV RFP: Approved (6-1) with direction to bring cost options including cable vs. streaming analysis.
• SRF Contract Amendment: $3.29 million increase approved unanimously.
• Ordinance First Reading: Pill Hill Historic District designation received and filed.
• Ordinance Second Readings: Three annexation/rezoning ordinances (K.1, K.2, K.3) all adopted.
• Other: Seasonal parking requirements suspended; snow emergency contingency plans noted. Meals on Wheels Month proclaimed.

Adjournment

The meeting adjourned at approximately 7:45 p.m.