Public Meetings - Rochester, Minnesota

The Rochester City Council held a study session on September 4, 2025, to continue discussions on the 2026-2027 operating budget. The meeting focused on follow-up items from the initial study session, including debt service, decision packages, library staffing, parking subsidies, community building fund, 311 services, council budget, arborist staffing, facility maintenance, and environmental stewardship, including a potential natural gas franchise fee. No formal votes were taken; the session was for discussion and direction. Discussion Items - Budget Overview and Tax Levy Reduction: Administrator Zelms presented the recommended 2026-2027 budget, noting a total levy increase of just under $6.6 million (5.9%), a reduction from the earlier projected 10.68%. The levy remains below 50% of net tax capacity. Operational costs are stable, but debt service and power purchase agreements cause fluctuations in total budget (approximately $664 million in 2026 and $636 million in 2027). - Debt Service: Brian Anderson presented the city's debt portfolio, totaling $359 million in principal as of year-end 2024. The city has significant borrowing capacity (2% debt limit of $378 million, with current debt at 0.23%). The proposed regional sports and recreation complex would be funded by sales tax revenue bonds, not affecting the debt limit. - Decision Packages: Administrator Zelms reviewed 2026 recommended decision packages, emphasizing reductions to keep the levy low. Council members discussed prioritization, fleet strategy (including EV transition), and the need for equipment revolving fund sustainability. A deeper dive on fleet and EV is scheduled for the next study session. - Library Services: Director Karen Lemke proposed converting four part-time positions (18.5 hours/week) to full-time roles to improve efficiency and service, funded by reducing temporary part-time hours. The net cost is $192,000. Council members expressed support for the conversion and opposed closing the library on Sundays, citing high usage and community need. The library master plan update is expected in October/November. - Evening and Weekend Parking: Director Zhang presented data on free parking in ramps, estimating $1.88 million in value (based on guesstimates for free one-hour, weekday evenings, and weekends). Councilmember Keene noted this supports downtown businesses but did not seek immediate changes. - Community Building Fund: Director Martella reported on the fund, currently budgeted at $50,000 annually (with a one-time $50,000 addition in 2025 from contingency). Council members proposed increasing the base to $100,000, with a $10,000 cap for large grants, and exploring a tiered structure. Staff will return with a proposal. - 311 Service: Administrator Zelms discussed cost allocation for 311, noting it is not yet applied but will be reviewed annually. Councilmember Palmer inquired about extending hours, but staff noted it would require significant resources. A decision package for an additional call taker is included. - City Council Budget: Mr. Nigber reviewed the council budget, including salaries, travel, and training. Councilmember Palmer expressed concern about increasing travel and training, while Mayor Norton raised the issue of salary adjustments tied to median income, noting past council direction not to bring it forward unless requested. The travel and training budget was restored to 2024 levels. - Arborist Decision Package: Mr. Nigber presented the need for two additional arborists (one in 2026, one in 2027) to address a 20-year pruning cycle, storm response, and liability. Council members expressed support, noting the city's growth and the cost-effectiveness of in-house staff versus contractors. - Maintenance Service Center and BRT Facility: Zach Woodward requested four FTEs for the new maintenance center and BRT stations. The new facility adds 90,000 sq ft and complex systems. Staffing is below industry standards. The BRT is expected to offset 25% of the cost. Council discussed timing and budget impact. - Environmental Stewardship and Natural Gas Franchise Fee: Mr. Parrish presented a framework for a potential natural gas franchise fee, with options (flat fee, per therm, percentage of revenue). Estimated revenue could be $1-2.4 million annually. Council members expressed varied views: Councilmember Wall opposed as regressive; Councilmember Palmer supported to offset property tax; Councilmember Miller supported to fund energy efficiency programs; Councilmember Keene remained open but cautious; Councilmember Doring was in favor. Direction was given to continue discussions and bring back a process for engagement. The fee would not affect the 2026 budget. Key Outcomes - Council directed staff to explore a process for implementing a natural gas franchise fee, with further discussion expected. - For the library, council expressed support for the full-time conversion and opposition to reducing hours. - For the Community Building Fund, council indicated intent to increase the base to $100,000 with a $10,000 cap for large grants, pending a formal proposal. - The next study session on September 15, 2025, will cover fleet/EV, equipment revolving fund, collaboration with RCTC, RPU fee proposals, and public music. The preliminary levy must be set by September 22, 2025. - No formal votes were taken; all discussed items are subject to future action.

This was the first of three study sessions on the recommended 2026-2027 operating budget. City Administrator Alison Zelms presented the high-level budget overview, highlighting efforts to reduce the originally projected 10.68% tax levy increase to 5.9%. The session also included a presentation from Rochester Public Utilities (RPU) General Manager Tim McCullough on utility rate proposals. No formal votes were taken; the next study session is scheduled for September 3, 2025 at RPU. Discussion Items - Budget Reduction and Levy Increase: Staff worked to lower the levy from an initial projection of over 11% to a recommended 5.9% increase, equivalent to $6.589 million in new tax levy dollars (total recommended levy $118.2 million). The total recommended budget, including RPU, is $663.85 million. Administrator Zelms emphasized that the reduction was achieved through departmental optimization, baseline adjustments, and careful review of decision packages. - Property Tax and Growth Drivers: The estimated 2026 property tax rate is approximately 49.7%. Total estimated market value growth is just above 6.5%, with 1.77% from new construction and 4.8% from valuation adjustments. The residential share of property tax has been increasing, while commercial share has decreased. Councilmember Palmer noted that the bulk of the value increase comes from valuation adjustments, not new construction. - Local Government Aid (LGA): Discussion centered on Rochester's relatively low LGA compared to similar cities like Duluth and St. Paul. Administrator Zelms stated that the formula is unlikely to change significantly, and the city focuses on other state funding sources. Councilmember Keene expressed that making LGA a legislative priority would not be a good use of time, while Councilmember Palmer questioned whether the city could do more to secure additional aid. - Franchise Fees and Right-of-Way Charges: Councilmember Keene raised concerns about declining cable franchise fees and the inability to charge internet-only providers. Administrator Zelms noted that a natural gas franchise fee could raise between $500,000 and $2 million, but it would ultimately be paid by residents. Councilmember Miller expressed interest in exploring that option further. - Decision Packages for 2026: The recommended budget includes a number of new investments aligned with the city's strategic priorities. Key items include: - Four library customer service support assistants (transition from part-time to full-time) - Personal protective equipment for fire (two sets of turnouts per firefighter) - Snowplow sweeping software ($32,000 ongoing) - Maintenance service center operations - Development services contracted positions - Shelter restrooms, playground, and parks activation (seasonal CSO and park activation) - Management analyst focused on ADA accessibility - Digital content assistant (reduced from full-time to two part-time for cost savings) - Arborist position (first added in decades) - Two community service officers (with vehicles) - Community connectors (10-hour/week positions, funding made permanent) - Technology forensic detective (child crimes focus) - 311 customer service specialist - Reclassification of transit project manager to operations manager - Artificial intelligence implementation strategist (reprioritized existing FTE) - Building inspector (roofing, windows, siding) - Council Feedback on Decision Packages: Councilmember Palmer questioned several items, including the digital content assistant and the need for four library assistants without corresponding part-time reductions. He expressed interest in lowering the levy further by considering library closure on Sundays or Mondays and contracting snow removal. Councilmember Keene opposed library hour reductions, stating it was "penny wise pound foolish." Councilmember Fredericks advocated for using contracted workers where possible to avoid full-time benefit costs. Councilmember Miller noted that many items classified under "environmental stewardship" seemed stretched and suggested reclassifying them. - 2027 Decision Packages: Staff presented preliminary requests for 2027, including two community service police officers for homeless outreach, a GIS technician, a custodial position for parks and forestry, two transit attendants, an additional arborist (bringing total to eight), and IT support for the new ERP system. Councilmember Doring asked about including a full-time social worker instead of police officers for homeless outreach, and Chief Franklin indicated the social worker pilot is still being evaluated and may be a future request. - RPU Enterprise Funds: Tim McCullough presented the water and electric utility budgets. Water rates are proposed to increase by 9% (about $2/month), and electric rates by 6% (about $5.78/month in 2026, $6.12/month in 2027). Key drivers include the advanced metering project ($16-17 million each for water and electric), lead service line replacement (externally funded but requiring cash flow), and major capital investments like the Mount Simon station ($175 million, with $240 million debt issuance planned in 2027). The electric rate increase is due to power supply costs, SIMPA debt retirement, and the need to build generating capacity. Councilmember Keene emphasized the impact on low-income residents and questioned the debt's effect on bond ratings. Councilmember Miller requested a deeper dive on renewable energy planning and environmental responsibility. - Cost Allocation and In Lieu Payments: The budget introduces a new central service cost allocation for overhead costs (HR, IT, etc.) to enterprise funds, spreading $2.1 million in 2027. In lieu of taxes payments from utilities were adjusted after years of no increases, adding about $40,000 for stormwater in 2026. - Employee Costs: Personnel costs are the largest driver of the levy increase, with 19 bargaining units and 8 contracts under negotiation. Health and dental costs are projected to increase by 8% and 1.5% respectively. The increase in police and fire costs accounts for $3 million of the $5.4 million general fund increase. - Outside Agency Requests: Outside agencies requested a 21% increase, but the recommendation provides about 5% in 2026 and 3% in 2027. Councilmember Palmer expressed interest in increasing the Community Building Fund from $50,000 to $100,000, with a cap of $10,000 per grant. Key Outcomes - No votes taken: This was a study session; the next formal action is the preliminary levy hearing on September 22, 2025. - Next study session: Wednesday, September 3, 2025 at RPU, approximately 9 days later. - Staff will follow up: Administrator Zelms noted that they will provide additional details on items raised, including natural gas franchise fee estimates, library cost savings scenarios, and information on parks and recreation scholarship programs. The second study session agenda will be published on Friday, August 29 to allow staff time to prepare responses. - Council direction: Several councilmembers signaled they would like to see the levy increase lower than 5.9%, with Councilmember Palmer suggesting options like reducing library hours or contracting services. Councilmember Keene stated he could support 5.9% for 2026 but not the projected 7.9% for 2027. - RPU resources: A more detailed discussion on RPU's long-term resource planning and renewable energy will be held at a separate study session in late September.

The Rochester City Council convened on August 18, 2025, for a regular session. The agenda included multiple public hearings, an update on the Destination Medical Center (DMC) plan, a detailed discussion on the future of transit services, and a resolution to improve public meetings. Several items pulled from the consent calendar were debated separately. Consent Calendar - The council approved routine items including the Fiscal Year 2026 DWI/Traffic Safety Grant, a donation of a refrigerator to the fire department, various public works contracts (West End watermain, Mayo Clinic parking structures), a master broker contract with Dialect Real Estate Advisors, and a settlement agreement regarding Transportation Improvement District fees. Items F3 (SRF Consulting Group) and F8 (ICMA Subaward Agreement) were pulled by council members for separate discussion later in the meeting. Public Comments & Testimony - Casey McGregor: Stated the City Council should investigate Mayor Norton for a conflict of interest related to her husband's role in the group Indivisible 507. Expressed strong opposition to proposed Ordinance J1, arguing it shrinks due process rights by removing judicial involvement in enforcement. Also criticized Contract F7, asserting that a real estate broker for city property removes direct public financial oversight and has potential for abuse. - Molly Dennis: Advocated for government transparency and due process. Asked for a follow-up on the promised replanting of trees downtown and requested information on the number of accessible parking spots. - Patrick Cresel: Argued that citizens feel unheard by DMC personnel and requested formal public hearings. Regarding the ICMA grant (F8), advocated for broader community involvement and suggested the city prioritize restoring the Chateau Theater. Mayor's Report & Presentations - ESGR Award: Mayor Norton accepted the "Above and Beyond" award on behalf of the city for its exceptional support of a Staff Sergeant in the Army National Guard. - Rochester Visioning: The Mayor presented housing data from the community visioning survey, noting that affordable housing, homelessness, and the need for family-sized units were the highest-priority topics raised by residents. - RPD Achievements: Four officers were recognized for making the DWI Enforcer All-Star team, having made a combined 230 DUI arrests in the prior year. The summer "Safe City Nights" events drew an estimated 5,000 attendees. - ROYCE Youth Council: The Mayor announced recruitment for the youth council program. Public Hearings - Zone Change G1 (Veldco): The council held a hearing on rezoning a 5.48-acre site from MXS to MXC to accommodate a 94-unit apartment complex. - Public Testimony: A resident expressed concerns over noise and light pollution. Another resident opposed the rezoning, arguing site layout issues are not a valid legal criterion for rezoning and expressing concern about increased height allowances on elevated topography. - Outcome: Passed unanimously. The council directed the City Attorney to prepare an ordinance for first reading. - Transit Program G2: The council held the annual hearing on the 2025 FTA Program of Projects. Staff emphasized that Rochester Public Transit does not receive city levy funds. - Outcome: Resolution adopted 6-1. Councilmember Palmer was the lone dissenting vote, criticizing the system's declining ridership and lack of cost-cutting measures. Discussion Items - H1 - DMC Development Plan Update: Staff presented the mid-point update of the 20-year initiative, proposing three strategic drivers: Health Innovation as an Economic Engine, Health Excellence as an Attractor, and Health in the Built Environment. - Council Positions: Councilmember Miller expressed support for the initiative as an opportunity to build preventive health into public policy. Councilmember Doring expressed appreciation for the expanded definition of "health" beyond Mayo Clinic. Councilmember Keene cautioned against framing health innovation solely as an economic driver. Councilmember Wall supported the approach of leveraging the city's existing strengths. - Outcome: Informational presentation only. Staff will return in November with the near-final plan. - H2 - Transit Services RFP: A significant debate occurred regarding the upcoming RFP for transit operations, maintenance, and the new BRT Link. Staff noted ridership is projected at 650,000 for 2025, down from a pre-COVID peak of 2 million. - Council Positions: Councilmember Palmer expressed strong opposition to combining BRT with other services in one contract, criticized current system efficiency, and stated the transit system must never rely on property tax revenue. Mayor Norton voiced concern that the council lacked an opportunity to weigh in on the RFP structure before it is published, warning that service gaps on the BRT would be unacceptable. Councilmember Keene analyzed the funding model as an enterprise fund. Councilmember Miller requested more detailed ridership data and benchmark comparisons. - Outcome: No formal action on the RFP. Staff acknowledged the concerns and agreed to bring additional information back to the council before the RFP is finalized. - H3 - Democracy Innovations for Public Meetings Project: Mayor Norton introduced a resolution to partner with the National Civic League, funded by a grant, to assess and improve public engagement, public comments, and boards and commissions. - Council Positions: Councilmember Miller strongly supported the project, citing low community engagement scores. Councilmember Wall expressed hope for more robust public input. Councilmember Keene supported the goal but voiced concerns over staff time and maintaining council control over the process. Councilmember Palmer was skeptical about the project's effectiveness. - Outcome: A motion to table the item failed (5-2, with Fredericks and Palmer voting to table). The main resolution passed 6-1, with Councilmember Fredericks voting in opposition. - H4 - SRF Consulting Group Contract (Pulled F3): Councilmember Palmer pulled this item to object to hiring the firm that made a design error on 65th St NW. - Council Positions: Palmer objected, arguing the consultant should not receive additional city work after a mistake. Director Niemar clarified the error was an 18-foot sight distance issue and that SRF was providing approximately $200,000 in additional services at no cost. - Outcome: Contract authorized 6-1. Palmer voted nay. - H5 - ICMA Subaward Agreement (Pulled F8): Councilmember Fredericks pulled the item for clarity on data privacy language and termination rights, which the City Attorney confirmed were updated. - Outcome: Approved (no recorded opposition). The $416,500 grant will support economic mobility initiatives. Ordinances - J1 - Ordinance First Reading (Administrative Enforcement Procedures): Received and filed. Key Outcomes - G2 (Transit Program): Resolution adopted 6-1 (Palmer dissenting). - G1 (Zone Change): Passed unanimously. - H3 (Democracy Project): Resolution adopted 6-1 (Fredericks dissenting). - F3/H4 (SRF Contract): Contract authorized 6-1 (Palmer dissenting). - F8/H5 (ICMA Grant): Grant agreement authorized (no opposition). - H2 (Transit RFP): Council directed staff to bring additional information addressing concerns about the RFP structure before its release.

The Rochester City Council held a study session on August 18, 2025, to discuss the 2025 Action Plan Realignment, which outlines goals, tactics, and key performance indicators for the city's five strategic priorities. The council also received an update on the Regional Sports and Recreation Complex and reviewed the upcoming study session schedule. Discussion Items 2025 Action Plan Realignment Mr. Aaron Parrish presented the action plan, covering each strategic priority and inviting council feedback. - Economic Resilience: Goals include developing a cohesive economic development strategy, a tourism strategy (including evening and weekend activities), and optimizing city services. Councilmember Palmer asked about timing for clarifying the city's economic development role and streamlining permitting. Mayor Norton expressed strong support for focusing on economic development. Councilmember Keene cautioned that some language could imply project commitments, stressing the need for clarity. Councilmember Miller suggested highlighting the historic district as part of the tourism strategy. - Housing Access: Goals include promoting owner-occupied homes, supporting infill and accessible housing, and supporting county/nonprofit efforts for housing stability. Councilmember Miller suggested evaluating financing barriers for ADUs and infill development. Councilmember Palmer noted that the ADU incentive program has not generated interest and discussed disincentives to lot development due to tax policies. - Inclusive Growth Management: Goals integrate active transportation, strategic infrastructure investments, and infill/transit-oriented development. Councilmember Palmer questioned the timing of a traffic study during downtown construction and requested infill location maps. Councilmember Wall suggested incorporating artificial intelligence into city operations. Councilmember Miller stressed the need for clear communication of long-term fiscal impacts of development. - Responsible Environmental Stewardship: Goals focus on reducing emissions from transportation and buildings, enhancing natural resources, and optimizing city services. Councilmember Doran urged integrating environmental goals with land management. - Transformational Capital Projects: Goals emphasize project delivery excellence and preparation for future major projects. Councilmember Keene stressed the need for heightened personal responsibility among staff and honoring past commitments. Councilmember Doran requested communication tools beyond semi-annual reports. Mayor Norton advised maintaining flexibility to adapt to changing circumstances, citing examples where long-range plans become outdated. Regional Sports and Recreation Complex Mr. Parrish provided a detailed history of the project, from a $65 million outdoor-focused concept in 2022 to the current $130–140 million combined indoor/outdoor project with an estimated $1 million annual operating deficit. He outlined next steps: October 6, 2025 for bond sale and bid authorization, and November 17, 2025 for awarding contracts. Councilmembers expressed divergent views. Council President Shebring urged exploring partnerships with RCTC and the Rec Center to enhance community recreation access and address resident dissatisfaction. Mayor Norton called for a pause to realign the project with community expectations, citing frequent "bait and switch" complaints from residents. Councilmember Palmer defended the project, emphasizing the factual history and prior council votes. Councilmember Miller noted the need for a broader conversation on how to meet recreational needs. Key Outcomes - The council provided extensive feedback on the 2025 Action Plan Realignment. Staff will refine the plan and present it for formal approval at a city council meeting in September 2025. - Regarding the Regional Sports and Recreation Complex, the council will continue discussions at the October 6 study session. Staff will also evaluate partnerships with RCTC and the Rec Center to address community recreation needs. - The study session schedule for the upcoming budget season was previewed; Councilmember Wall will preside over the next study session due to Mayor Norton's absence.

The Rochester Economic Development Authority (EDA) met on August 11, 2025, following the regular City Council meeting. The sole substantive agenda item was a proposed Development Assistance Agreement for the Restoration Glen affordable housing project, which was presented and approved unanimously. Consent Calendar - Approved the minutes of the June 16, 2025, EDA meeting (unanimous). Discussion Items - Presentation by Brent Fenby (Community Development): Fenby introduced the Restoration Glen project, a 48-unit apartment building with 12 units restricted to 30% Area Median Income (AMI) or less and 36 units to 60% AMI or less. The project is a partnership between Three Rivers Community Action and Bear Creek Development Center. The EDA is proposed to provide $285,000 as a mortgage loan from pooled Tax Increment Financing (TIF) funds, repayable in 2057 (30 years from 2027). Fenby noted that the pooled TIF comes from six or seven existing TIF districts, with approximately $900,000 available for Destination Medical Center (DMC) activities and $800,000 for affordable housing. The EDA previously provided $310,000 for a similar project (Mailwood) across the street. - Councilmember Questions: - Councilmember Palmer asked why the assistance was structured as a loan rather than a grant. Fenby responded that the developers requested a loan, as required by Minnesota Housing financing. - Councilmember Keene inquired about the funding stack. Fenby explained that in addition to the EDA loan, the project uses housing tax credits (awarded in 2023), a deferred loan from Minnesota Housing, and support from the Rochester Housing Coalition. Keene noted that the per-unit cost of the EDA assistance (approximately $5,938) is very low compared to typical requests, and that the project’s 4D tax classification (automatically applied to housing tax credit projects) limits its own TIF generation—estimated at $250,000 over 25 years if it were a TIF district. Keene expressed support, stating the project is an effective use of pooled TIF for affordable housing. - Councilmember Wall added that Bear Creek Development Center is a reliable organization likely to repay the loan. Key Outcomes - Resolution Adopted: The EDA unanimously approved the resolution authorizing the Development Assistance Agreement between the Rochester EDA and Restoration Glen LLLP, providing a $285,000 mortgage loan from pooled TIF funds for the Restoration Glen project. Motion by Councilmember Keene, seconded by Councilmember Fredericks, passed by voice vote (all ayes). - Adjournment: The meeting was adjourned on a motion by Councilmember Wall, seconded by Councilmember Fredericks.

The August 11, 2025 City Council meeting covered a broad range of agenda items, including consent calendar approvals, public comments, public hearings on a final plat and a sign variance, and several reports and recommendations on parking policy, comprehensive plan update, grants, traffic studies, and property acquisition. Key votes included approval of a sign height variance (5-1), acceptance of a $416,500 economic mobility grant (5-1), and authorization for property acquisitions for the 6th Street Bridge project (4-2). Consent Calendar - Approved minutes of the July 21, 2025 meeting. - Approved accounts payable of $30,664,295.98. - Received and filed the 2025 Second Quarter Investment Performance Report. - Approved appointments to boards and commissions. - Adopted resolutions for Oktoberfest 2025 community festival, annual gambling permit for Rochester Elks Lodge, 2025-27 collective bargaining agreement with Rochester Supervisory Association, realignment of three Parks and Recreation positions, campus and building naming convention framework, ordinance amendments to administrative enforcement procedures (directing first reading), paratransit vehicle purchase, emergency management joint powers agreement, Mayo Civic Center projector replacements contract, pavement markings contract, Elton Hills Dr traffic study contract (pulled for discussion), Fire Station 3 mechanical upgrades design services, Stonebrooke Sixth Addition city-owner contract, 37th St NE stormwater facility design services, Zumbro Riverfront Trailhead Plaza grant agreement (pulled for discussion), 6th Street Bridge property acquisition resolution (pulled for discussion), property conveyance, and pedestrian facilities agreements. Public Comments & Testimony - Craig Martins (Rochester resident): Stated the previous sports complex vote violated Minnesota local sales tax law (no detailed description, no regional significance). Urged the council to hold a new vote with proper legal description and to hire legal team. Expressed concern about taxpayer risk and maintenance costs. - Loringstead (four-generation resident): Opposed the economic mobility grant due to Article 16, which restricts dissemination of reports and data. Called it a “muzzle clause” that could outsource decision-making; urged council to prioritize local governance. - Barry Skolnick (frequent speaker): Criticized the grant for lack of transparency, closed co-designer meetings, and confidentiality provisions. Recommended amending the document before approval. - Zenab Hassan (Somali community member): Spoke about lack of youth funding, selective justice, and exclusion of minority voices in projects like the sports complex. Called for intentional inclusion and prioritization of youth and marginalized communities. - Yahya Ahmed (first-time attendee): Shared personal story of arriving in Rochester with $25; highlighted the importance of youth spaces like the YMCA. Urged inclusive development and voiced support for youth engagement. Discussion Items - Final Plat (G1) – Harvestview Eighth: Presented by Desmond McGill (Community Development). 38 single-family lots on 11.8 acres, consistent with approved GDP. Conditions: compliance with stormwater, street continuation, and grading. Applicant agreed. Approved unanimously. - Appeal Sign Variance (G2) – CD14 LLC: Variance to increase freestanding sign height from 15 to 25 feet in special industrial district. Applicant cited unique topography (site is lower than highway, surrounded by berm and flood wall). Staff recommended approval despite Zoning Board of Appeals’ earlier denial. Council discussion: Councilmember Wall opposed, citing need to respect ZBA and UDC; others noted uniqueness. Motion carried 5-1 (Councilmember Wall dissenting). - Developer Parking Agreement Policy (H1): Presented by Nolan Shield (Parking System Administrator). Draft policy aims to standardize terms for new development parking agreements. Key updates: initial term of 7 years plus optional 3 years; fee discussion (current $168/space vs. cost-based $242). Council feedback: debated policy vs. guidelines, equity, transparency, and impact on existing agreements. Staff directed to refine and return for a future vote. - P2S Comprehensive Plan Five-Year Update (H2): Presented by Terran Eidens. Focused technical update: no change to seven foundational principles. Key highlights: industrial land need (40+ acres), residential land analysis (ample supply), emerging trends (hybrid work, short-term rentals, bold forward unbound). Public hearing set for September 8, 2025. No action taken; council requested executive summary of changes. - Economic Mobility Grant (H3) – $416,500 from ICMA: Presented by Cindy Steinhauser. Grant funds a 30-month position and program implementation to improve economic mobility. Debate over confidentiality concerns (Article 16) and lack of specific work plan. City Attorney noted Minnesota data practices law would override; 30-day cancellation clause. Motion carried 5-1 (Councilmember Palmer dissenting). - Elton Hills Dr Traffic Study (H4) – F15 pulled: Contract with Alliant Engineering ($59,015). Councilmember Palmer questioned necessity given 2019 study, but staff cited changed travel patterns post-COVID. Approved. - Zumbro Riverfront Trailhead Plaza (H5) – F19 pulled: Grant from MPCA and design contract ($71,240). Councilmember Palmer raised concerns about stormwater treatment, shelter duplication, and lack of competitive bidding. Staff explained grant timing and project goals. Approved 5-1 (Palmer dissenting). - 6th Street Bridge & Riverfront Improvements Property Acquisition (H6) – F20 pulled: Authorized direct purchase and eminent domain if necessary for 27 parcels (mostly easements, one residential partial). Council discussion: concerns about neighborhood impact, tree removal (net gain of trees), mini-roundabout safety, communication with residents, and potential traffic increase. Motion carried 4-2 (Councilmembers Fredericks and Schubring dissenting). Key Outcomes - Consent Calendar: Approved with voting block (items not pulled). - Final Plat Harvestview Eighth: Approved unanimously. - Appeal Sign Variance (CD14 LLC): Approved 5-1. Supported ZBA override; motion directed staff to prepare findings. - Economic Mobility Grant: Authorized acceptance 5-1. Final agreement to be brought next week with Minnesota data practices language. - Elton Hills Dr Traffic Study: Approved $59,015 contract. - Zumbro Riverfront Trailhead Plaza: Approved grant acceptance and $71,240 design contract 5-1. - 6th Street Bridge Property Acquisition: Approved resolution authorizing acquisition including eminent domain 4-2. - Developer Parking Agreement Policy: Feedback provided to staff; policy to be refined and brought back for formal adoption. - Comprehensive Plan Update: No action; staff directed to provide executive summary of changes; public hearing scheduled September 8, 2025. - Recessed to EDA: Approved EDA consent agenda and findings.

The City Council held a study session on July 28, 2025, to discuss several topics including the recommended operating model for the Rochester Sports and Recreation Complex, the Silver Lake Dam modification and sediment removal project, the Air Quality Alliance (formerly Rochester Air Network), an Electric Vehicle Charging Policy, and the Unified Development Code (UDC) yearly cleanup. No formal votes were taken, but the council provided direction and feedback on each item. Recommended Operating Model for Rochester Sports and Recreation Complex - Ben Bolt (Parks and Recreation) presented an overview of existing park partnerships, highlighting that many programs are delivered through partnerships with local youth sports organizations. Council President Schubering and others questioned how these partnerships ensure access for underserved communities, noting that some residents feel facilities are not accessible for informal use. - The proposed operating model for the new complex involves a private operator (Sports Academy) to manage the facility, with the city retaining oversight. Sports Academy CEO Chad Faulkner and President John Spotts presented a pro forma based on a comparable facility in Franklin, Wisconsin. The projections show a potential operating surplus in year one ($628,000 EBITDA) under a base case, but with sensitivity analysis indicating break-even around 35-40% of stabilized revenue. - Several council members expressed concerns about the focus on baseball/softball tournaments and the lack of community-centered amenities in phase one. Mayor Norton and Council President Schubering emphasized that the community expects a facility that prioritizes local recreational needs, not just sports tourism. Councilmember Keene questioned the risk-sharing arrangement, noting that the city bears the financial risk while the operator receives a management fee. - Councilmember Miller asked about economic generation and potential for community benefit. City Administrator Zelms explained that the sports tourism model is designed to generate lodging and sales tax revenue, which could be reinvested in other community facilities, but cautioned that no guarantees can be made. - No decision was made; the council will continue discussions. The administration will refine the operating agreement for potential bid authorization in October. Silver Lake Dam Modification and Sediment Removal Construction Plan Update - Aaron Luxtein and Matt Crawford (Public Works) presented the updated design, which includes a rock arch rapids fish passage, a north shore trail, sediment dredging, and a pier for a future pedestrian bridge. The dam has been moved 200 feet downstream to address a scour hole, increasing lake area slightly. - Preliminary cost estimates have increased significantly due to longer rock rapids, additional retaining walls for the trail, and the need to fill scour holes. The current estimate is higher than the 2023 estimate, but staff noted that cost-saving measures are being explored. - Councilmember Palmer strongly objected to the planned closure of 7th Street and 11th Avenue intersection during the summer of 2026, coinciding with the opening of the new Silver Lake Aquatic Center. He demanded that construction not occur during June, July, and August. Staff acknowledged the conflict but noted that the sewer siphon project must be done during the lake drawdown in winter 2025-26, and that the road work would extend into summer. They will try to minimize impacts. - The project is on track for a November 2025 start, pending final permits from the Army Corps of Engineers and DNR. Council will be asked to approve bids in October. Air Quality Alliance (formerly Rochester Air Network) - Aaron Luxtein and Kayla Betzold (Sustainability) presented the collaborative air quality monitoring network involving the city, Olmsted County, Mayo Clinic, and DMC. The network has 12 PurpleAir sensors and 5 Vaisala sensors, measuring particulate matter and greenhouse gases. - The group has rebranded to "Air Quality Alliance" and is developing a strategic plan for long-term sustainability, including governance, data access, and future sensor locations. - Council members expressed support for the program and asked for better public access to the data, including prominent placement on city websites and public displays. Councilmember Miller suggested integrating data from citizen sensors. The group will report back on strategic planning. Electric Vehicle Charging Policy 1 - Kayla Betzold presented the need for a formal city-owned EV charging rate policy, as current rates vary by location. Research showed that most Minnesota cities either use per-kilowatt-hour (kWh) or per-hour pricing. Staff recommended adopting a kWh rate, as it is more equitable and aligns with utility billing. - Council members generally supported pursuing a rate policy with a kWh structure. Councilmember Fredericks and Wall advocated for full cost recovery, while Councilmember Keene emphasized the city's role in filling gaps in charging infrastructure, not competing with private providers. Staff provided cost estimates: a competitive rate of 26¢/kWh would cover about 75% of costs; full cost recovery would be 34-40¢/kWh. - Councilmember Palmer suggested keeping charging free to encourage use of parking ramps. Councilmember Miller preferred a simple kWh rate with idle fees to encourage turnover. - The consensus was to proceed with developing a policy based on kWh pricing, with rates set to be competitive and cover a reasonable portion of costs. Staff will bring back a draft policy for approval by end of year. Unified Development Code Yearly Clean-Up Update - Teryn Eidens (Community Development) presented proposed text amendments for the annual UDC update. Key items include: updating cannabis retail spacing to align with state statute (removing trails as a prohibited distance), narrowing cannabis/liquor permitted zoning to mixed-use industrial, extending the neighborhood information meeting application submittal from 30 to 60 days, creating a provision for sandwich board signs in the MXS district (limited to 14 days), and increasing the maximum height in the MXS district from 36 to 56 feet to support density. - Council members provided feedback: Councilmember Fredericks questioned the 14-day limit for sandwich boards, suggesting they could be daily if brought in at night. Mayor Norton noted concerns about congestion on Peace Plaza. Councilmember Keene asked about the MXS height increase and its impact on adjacent residential zones; staff noted that neighborhood protection standards apply. Councilmember Wall requested a map showing where cannabis retail would be permitted under the proposed changes. - The council generally supported the proposed updates, with some suggestions for refinement. The amendments will go to the Planning and Zoning Commission and then return for a public hearing and adoption. Key Outcomes - The council directed staff to continue refining the sports complex operating agreement and bring back bid authorization in October, while also considering community-centered amenities. - The Silver Lake Dam project will proceed toward November 2025 construction start, with staff to explore ways to minimize impacts on the new aquatic center. - The Air Quality Alliance will develop a strategic plan and improve public data access. - Staff will develop an EV charging rate policy using a kilowatt-hour structure, with rates competitive and partially covering costs, and bring it back for approval by end of 2025. - The UDC yearly cleanup amendments will be advanced to the Planning and Zoning Commission, with council feedback incorporated.

The Rochester City Council met at 6:00 p.m. on July 21, 2025, at the Government Center Council Chamber. The meeting covered consent agenda approvals, public comments, the award of a major Bus Rapid Transit (BRT) construction contract, a professional services contract for downtown active transportation corridor planning, a second-reading annexation ordinance, and an informational update on Rochester Public Utility (RPU) energy and water futures. Consent Calendar - Minutes and Accounts Payable: Approved minutes of July 7 and June 16, 2025, and accounts payable totaling $33,783,323.07 (including $18,105,256.66 in investment purchases and $15,678,066.41 in accounts payable). - Budget and Bids: Received and filed the 2025 Second Quarter Budget Performance Report; authorized bid advertisement for the Lincolnshire Neighborhood Traffic Management Program (Project J8208); awarded a contract to Parkmobile, LLC for electronic parking meter fee software; approved a contract with Pember Companies, Inc. for 4th St SE and 19th Ave SE Intersection Improvements (Project J6064); authorized a contract with Toole Design Group for transportation planning and engineering design services (this item was polled and later discussed separately under H2). - Infrastructure and Agreements: Authorized a city-owner contract for public watermain to serve Forte Senior Housing Phase III (Project J5622) with a professional technical services contract with Widseth ($9,315); approved a parking lease agreement with Fontaine Towers II; authorized a revocable permit with Mayo Clinic for crane pads in 1st St SW and 2nd St SW right-of-way for the new hospital; approved Change Order 1 with SM Hentges & Sons ($406,966.76) for Runway Reconstruction at Rochester International Airport; authorized a permissive use and subordination agreement with Mediacom; accepted the MnDOT Office of Aeronautics Air Service Marketing Grant; and authorized a purchase of digital forensic products from Magnet Forensics ($198,617.28). Public Comments & Testimony - Lori Campbell (Treasurer, International Relations Committee) requested $20,000 in startup funds for sister city programs, citing the committee’s post-COVID restart and examples from Duluth. She mentioned 40 committee members and sister cities in China, Germany, South Korea, and Cambodia. - Roland Chapman and Craig Van Ort described an abandoned house at 1104 6th Avenue NW that has been vacant for 35–40 years, causing property devaluation and safety concerns. They asked the city to address the issue, noting that previous complaints led to notices sent to the owner in California but no further action. - Ethan Schones (RCTC student, Worker Strike Back member) opposed the removal of the free park-and-ride transit pass for RCTC students, effective August 1, 2025. He stated hundreds of students will lose free transit access and called the decision a profit-driven move by Transdev. - David Montequin (public sector worker, member of AFSCME Local 319 and Workers Strike Back) expressed solidarity with RCTC students and ATU 1005 members, criticizing the City Council for cuts affecting working-class and poor residents. - Adam Busby (representative, ATU 1005) reported sexual harassment, sexism, and racism by Transdev management, alleging that reports to higher-ups had not led to disciplinary action. He also criticized the city for not allowing union representatives on property. - Molly Dennis supported students and unions, and criticized the city’s elimination of virtual and phone comments for council meetings, calling it discriminatory against residents without transportation, flexible hours, or internet access. She noted she relied on her 17-year-old daughter for a ride. - Aaron Mead (We Bike Rochester) spoke in strong support of hiring Toole Design Group for the downtown north-south active transportation corridor study, emphasizing health, reduced parking demand, and community connectivity. He noted Mayo Clinic consultants had previously identified 2nd Avenue as a viable route. Discussion Items H1 – Link Bus Rapid Transit (BRT) Contract with Elcor Construction - Presentation: Steve Sampson Brown presented the award of Bid Package Volume C (the largest remaining package) to Elcor Construction, Inc. for $73,174,436.62, covering the pedestrian tunnel at St. Mary’s, station platforms, and amenities. The single bid was approximately $16 million over the engineer’s estimate. Total project cost would rise to $196.7 million, using nearly all of the $175.5 million in current resources and restoring contingency to $22.75 million. - Discussion: Councilmembers asked about contingency use (unforeseen conditions, optimization, business support), tariff-driven cost increases, and lack of competition. Staff noted that tariffs implemented in the five months since previous bidding, a tight Rochester construction market, and higher wages from out-of-town contractors contributed to the higher bid. Value engineering opportunities would be pursued. Funding sources are state and federal transit aid and Destination Medical Center (DMC) funds; the resolutions require DMC board approval on July 22. - Outcome: The three-part resolution (contract award, DMCC budget amendment, and contingency on DMC approval) passed unanimously. H2 – Contract with Toole Design Group for Active Transportation Planning - Presentation: The contract, not to exceed $224,889.66, covers two tasks: (1) reimagining 6th Avenue NW/SW as a multimodal corridor (complete street design, placemaking, public realm) connecting downtown’s east side (Mayo/Unbound project) to western and northern neighborhoods; and (2) restoring a north-south bike lane alignment after the vacation of 3rd and 4th Avenues SW. The work includes conceptual renderings, 10% design, engineering analysis, and stakeholder engagement. Total cost for 6th Avenue improvements is estimated at $13.5 million ($1.5 million per block for eight blocks). - Debate: Councilmember Wall and Palmer polled the item. Wall objected to the cost ($224,000 for a study) and questioned whether the investment matched actual bike usage (citing Minneapolis’s decline from 5% to 1.8% bike commuters). He also challenged the elimination of generalized public engagement, as noted in task 2 of the scope. Staff clarified that “stakeholder” includes residents, downtown workers, and bike groups, and that extensive prior engagement (e.g., Kutsky neighborhood meetings) will be leveraged to avoid over-engagement. Councilmember Miller expressed concern about designating 2nd Avenue for pedestrians only (via pedestrian easement) and asked about broader downtown connectivity and safety. Councilmember Keene confirmed the $224,000 would achieve 10% design for 6th Avenue and the north-south connection, not just a study. Mayor Norton urged use of existing boards and commissions for engagement. - Outcome: The resolution passed 5–2, with Councilmembers Wall and Palmer voting no. Key Outcomes - Consent Calendar: Approved all consent items except F7 (polled; later approved under H2). - Link BRT Contract: Awarded to Elcor Construction for $73,174,436.62; total project budget revised to $196.7 million; contingency set at $22.75 million; DMC board approval still required. - Toole Design Group Contract: Authorized at $224,889.66 for downtown active transportation planning; design will engage stakeholders and leverage prior public input; expected to return with a recommendation by early 2026. - Annexation Ordinance (Second Reading): Adopted for 158.2 acres north of 48th Street SE, with Mixed Use General (MXG) zoning on 21.94 acres and Medium Density Residential (R-3) on 136.27 acres. Unanimous. - Other Business: Councilmember Keene provided an update on RPU’s upcoming decisions on power generation (2030 and beyond), noting federal/state policy changes, carbon-neutral commitments, and energy reliability/rate concerns. He also noted that the Minnesota DNR has signaled limits on new groundwater wells, spurring regional water resource planning with surrounding communities. An RPU board meeting is scheduled for July 22 at 4 p.m. Adjournment The meeting adjourned at approximately 7:45 p.m.

The City Council held a study session on July 14, 2025, at 3:30 p.m. to receive updates on the Community Building Fund, the Equity in Built Environment program, the disposition of city-owned real estate, and the Comprehensive Surface Water Management Plan. The meeting also included a preview of the upcoming study session schedule. No formal votes were taken; the session was for discussion and feedback. Community Building Fund Program Update - The 2025 Community Building Fund had a total allotment of $100,000. Of 24 applications received, 18 grants were approved (4 large grants of $5,000 or more, and 14 small grants). Six applications were not approved. - The total amount requested by approved applicants was $147,250, exceeding the available funds, so some awards were reduced. - The fund was established from diversity council funding to support grassroots community ideas, especially for individuals and organizations not registered as 501c3 nonprofits. Anyone 15 and older could apply with a mentor. - Large grants required a more extensive application process and took significant staff time. The program is not designed to provide ongoing funding; recipients are expected to seek other sources for sustainability. - Councilmember Palmer expressed support for increasing funding for the program. Councilmember Keene suggested discussing the future of large grants during the upcoming budget process rather than during this session. Equity in Built Environment Update - The program, funded by a $1.75 million combination of a Global Mayor's Challenge grant and federal appropriation, ran for three years and focused on increasing workforce diversity in the built environment (design, construction, maintenance). - Key outcomes: 68 women enrolled in workforce development services, 35 enrolled in program-specific training, 18 completed training, and 12 were employed in built environment careers. Four companies pursued or earned the Inclusive Workplace Employer (IWE) designation. - The program used a co-design approach with community input, including young women of color. Sustainability partners include Workforce Development Inc. (WDI), which now hosts the "Bridges to Built Environment" program. - City staff involvement has ended, but a city internship pilot continues through December 2025. The city's role was to seed the program, which has been adopted by private industry. - Mayor Norton emphasized that systems change takes time and that the program addressed a "wicked problem." Councilmember Keene noted that barriers to entry remain, but small wins are occurring. Disposition of City Real Estate - Staff presented an updated list of 22 city-owned parcels, categorized as near-term (0-3 years), mid-term (4-6 years), and long-term (7+ years). The list revises a 2021 inventory. - Near-term parcels (7) include recommendations for bundling two for single-family development RFP, re-listing a parcel near Fire Station 2, and evaluating a parcel for potential affordable housing. The Foxcroft Access parcel is being surveyed for adjacent property owners. - Mid-term parcels (5) include the Silver Lake Power Plant area, for which a small area plan is proposed to guide future development. - Long-term parcels (6) have significant development constraints (access, environmental issues, legislative requirements). - Councilmembers expressed mixed views: Councilmember Palmer urged faster action on sales, while Councilmember Keene cautioned against flooding the market. Mayor Norton stressed that the city should use land strategically to achieve community goals, not just sell it. Councilmember Doring asked for clearer criteria for the prioritization. Councilmember Miller questioned the zoning for a parcel proposed for single-family housing. - No formal decision was made; staff will incorporate feedback. Comprehensive Surface Water Management Plan Update - The current plan is 30 years old and needs updating to reflect new MS4 permit requirements, total maximum daily load (TMDL) targets, changing weather patterns, and growth projections (e.g., Destination Medical Center). - The new plan promotes an integrated stormwater management approach that mimics natural hydrology, using green infrastructure (rain gardens, bioswales) alongside traditional gray infrastructure. It does not automatically change development standards or fees. - The plan divides the city into 10 drainage districts. Risk-based modeling has been completed for Cascade Creek and King's Run, identifying priority areas for flood reduction and water quality improvements. Example: For the Cascade Creek watershed, an integrated approach could reduce the size of a needed regional pond from 52 acres to 35 acres while providing recreational co-benefits. - The plan will be used to guide capital improvement projects and asset management, using a new scoring system (Envision) to prioritize projects. - Next steps: The final document will be sent to council in August 2025 for approval. Subsequent steps include building remaining drainage district models, updating the asset management plan, and conducting a stormwater utility rate study. - Councilmember Keene supported the plan, emphasizing public safety. Councilmember Wall asked about the timing and praised the city's pond system. Councilmember Palmer asked about funding sources (sales tax vs. stormwater) and noted ongoing maintenance issues (e.g., thistles at ponds). Study Session Schedule - Administrator Zerns noted that a study session on July 28, 2025, will include a topic on the recommended operating model for the Rochester Sports Recreation Complex and review of current parks facilities operating models. Other future topics include the UDC annual update, the Air Quality Alliance (Rochester Air Network), Silver Lake Dam modification and sediment removal, and electric vehicle charging rates (part one of two). Key Outcomes - No formal votes were taken; the session was for discussion and feedback. - Council directed staff to proceed with the finalization of the Comprehensive Surface Water Management Plan for council approval in August. - Staff will incorporate council feedback on the real estate disposition list and bring forward RFPs for near-term parcels as appropriate. - The Equity in Built Environment program has concluded its city-funded phase, with sustainability partners continuing the work.