City Council

City Council Agenda City Council - Regular Session December 8, 2025 6:00 p.m. Attending and Viewing the Meeting: Attend the Meeting in Person: Government Center Council Chamber, 151 4th Street SE View Meeting: Cable TV on Channels 180 or 188 Watch & Listen via YouTube: City of Rochester, MN - YouTube If you require a reasonable accommodation to fully participate in the City Council meeting, please complete our reasonable accommodations form at least 2 business days prior to the Council meeting. You can also reach the City Clerk's Office via email (cityclerk@rochestermn.gov), telephone (507-328- 2900), or TTY/TDD (507-328-2900) to discuss your accessibility needs. Pledge of Allegiance Vision, Principles, and Priorities for the City of Rochester A. Open Comment Period View the open comment period guidelines online. A.1. Sign-up In Person 30 Minutes before the meeting. View Open Comment guidelines for additional ways to participate. Virtual participation is not available at this time. B. Call to Order/Roll Call C. City Administrator's Report D. Mayor's Report E. Order of Agenda F. Consent Agenda F.1. Accounts Payable for December 8, 2025 Approving the listing of total disbursements for December 8, 2025, in the amount of $16,537,822.64, including investment purchases of $0 and accounts payable of $16,537,822.64. 1 F.2. Appointments to Boards and Commissions Approving the Mayoral appointments of: 1. Ken Baerg to the Citizens Advisory on Transit, effective January 1, 2026, to their first three-year term ending December 31, 2028 (replacing T. Schramm). 2. Aleida Koestler to the Heritage Preservation Commission, effective immediately, to fill the unexpired term of S. Cunningham ending December 31, 2026. 3. Emily Soltis to the Library Board, effective January 2, 2026, to their first three-year term ending January 1, 2029 (replacing T. Waldof). 4. MaryBeth Sancomb-Moran to the Library Board, effective January 2, 2026, to their first three-year term ending January 1, 2029 (replacing B. Hopkins). 5. Gary Jones to the Music Board-Ward 3, effective January 1, 2026, to their first three-year term ending December 31, 2028 (replacing A. Tackmann). 6. Jens Boyum to the Planning and Zoning Commission, effective immediately, to fill the unexpired term of Z. Pagel ending December 31, 2027. 7. Kelsey Vaszily to the Public Utility Board, effective January 13, 2026, to their first four-year term ending January 8, 2030 (replacing M. Graner Johnson). 8. Loring Stead to the Zoning Board of Appeals, effective January 1, 2026, to their first three- year term ending December 31, 2028 (replacing J. Boyum). 9. Nicholas Abbott to the Zoning Board of Appeals, effective January 1, 2026, to their first three-year term ending December 31, 2028 (replacing K. Wayne). F.3. Enterprise Resource Planning Contracts Approving execution of the following agreements related to the Enterprise Resource Planning Software Project allowing the City Administrator and City Attorney to approve minor modifications for final form including: 1. Executing finalized agreement for SAP / HCL Tech's Proposal for Enterprise Resource Planning software and related services including Sodales and Euna; 2. Executing agreements with Abdo Financial Services for Chart of Accounts and Implementation Support; 3. Authorizing the RPU Budget amendment contingent on RPU Board Approval and overall City investment outlined in the Fiscal and Resource Impact Section. F.4. Contract Amendment for 2025 Pedestrian Ramps in Various Locations - Project No. J4738 1. Approving an increase of $3,072.93 in Developer Contributions (J8209) and adding $9,341.04 in Sidewalk Gap Fill Funding (J4649), resulting in a total project budget of $103,209.87 and; 2. Amending the contract with Legends Concrete, Inc. for a new total construction contract of $97,696.36, for additional pedestrian ramps and sidewalk constructed. F.5. Contract Amendment with Short Elliot Hendrickson for Professional Engineering Design Services for Reconstruction of Center St E - Project No. J7348 1. Authorizing a Contract Amendment with Short Elliot Hendrickson (SEH) Inc. in the amount of $151,475 for Reconstruction of Center St E from the Zumbro River Bridge to 11th Ave E- Project No. J7348. 2. Adopting a Resolution accepting the plans and specifications and ordering the advertisement for bids for the Reconstruction of Center Street E from the Zumbro River Bridge to 11th Ave NE/SE - Project No. J7348 F.6. Revocable Permit and Agreement with E & K Funk Properties LLC - Private Storm Pipe in Easement Authorizing a revocable permit and agreement ("the agreement") with E & K Funk Properties LLC for placement of private storm pipe within a drainage and utility easement. 2  F.7. Utility Connection Agreement with Jose R. Navarro & Gina Ramirez - 1239 11th Ave SE Authorizing the following: 1. Utility Connection Agreement with Jose R. Navarro & Gina Ramirez to allow connection of their property to the municipal sanitary sewer system and; 2. Certification with the Olmsted County Auditor for the collection of unpaid associated charges and interest as outlined in the agreement. F.8. Local Road Improvement Program Grant Application - Project No. J7336 Adopting a Resolution in support of funding engineering, right-of-way acquisition, inspections, and other non-Local Road Improvement Program (LRIP) eligible costs, as well as LRIP-eligible items in excess of the LRIP grant amount, for construction of 64th St NW between 37th Ave NW and 34th Ave NW - Project No. J7336. F.9. Engagement for Property Management Services at the Minnesota Bio Business Center Building Authorizing Dialect to seek proposals from qualified property management firms to provide property management services at the Bio Business Center. F.10. Energy Efficiency and Conservation Block Grant Agreement with First Homes Adopting a Resolution authorizing the Energy Efficiency and Conservation Block Grant Agreement with First Homes to support the installation of air source heat pumps at Center Street Village Apartments. F.11. Minnesota Pollution Control Agency Local Climate Action Implementation Grant Program Approving an application to the Minnesota Pollution Control Agency Local Climate Action Implementation Grant Program for $50,000 to support the 2026 Rochester Healthy Air & Homes Initiative. F.12. Essex Place Apartments Agreement Authorizing execution of an Assignment, Assumption, Modification and Release Agreement regarding the Essex Place Apartments F.13. Land Lease and Development Agreement Authorizing a land lease agreement for construction of a hangar and infrastructure development between the City of Rochester, the Rochester Airport Company, and United Therapeutics Corporation. F.14. Terminal Space Lease - Mayo Clinic Authorizing a lease agreement between the City of Rochester, the Rochester Airport Company, and Mayo Clinic. F.15. Replacement of Air Conditioning System and Addition of Equipment to Mitigate Higher Humidity Levels in the Federal Aviation Administration (FAA) Air Traffic Control Tower Cab which is located in a City-Owned Building under Lease to the FAA Amending the City's 2025 budget to include these purchases and authorize the airport to execute the proposal with Metropolitan Mechanical Contractors for $77,811 and the proposal with Johnson Controls for $49,889. Public Hearing Guidelines View the public hearing guidelines online. Sign-up In Person 30 Minutes before the meeting. View Public Hearing guidelines for additional ways to participate. Virtual participation is not available at this time. G. Public Hearings 3  G.1. Conditional Use Permit No. CD2025-008CUP by the City of Rochester Adopting a Resolution approving Conditional Use Permit No. CD2025-008CUP, by the City, with six conditions, to permit a parking garage use in the MXT-NOD zoning district. G.2. Final Plat No. CD2025-040PLAT by Farmland LLC. - Mercy Hill Third Final Plat Adopting a Resolution approving Final Plat No. CD2025-040PLAT, by Farmland LLC., to be known as Mercy Hill Third, with three conditions, for the subdivision of 13.8 acres of land into 50 residential lots. G.3. Comprehensive Plan Amendment No. CD2025-004CPA by Enclave Development, LLC Adopting a Resolution approving Comprehensive Plan Amendment No. CD2025-004CPA, by Enclave Development, LLC., consisting of a change of Land Use Classification on a 2.04-acre site, from Medium Density Residential to High Density Residential. G.4. Zone Change No. CD2025-005ZC by Enclave Development, LLC Approving Zone Change No. CD2025-005ZC, by Enclave Development, LLC., amending the zoning designation on a 2.04-acre site from R-2x (Low Density Residential Infill) to R-4 (High Density Residential) and directing the City Attorney to prepare an Ordinance for First Reading. G.5. Utility Easement Vacation No. CD2025-009VAC by Kramer Properties, LLC Adopting a Resolution approving Utility Easement Vacation No. CD2025-009VAC, by Kramer Properties, LLC, to vacate an approximate ten-foot-wide public utility easement and a twenty- foot-wide utility easement. H. Reports and Recommendations H.1. Report from Rochester Olmsted Youth Council (ROYC) Member's Trip to Japan Receiving a report and presentation from Rochester Olmsted County Youth Member's Trip to Japan. H.2. 2025 Experience Rochester Annual Update 1. Receiving and filing the 2025 Experience Rochester and Mayo Civic Center Corporation "Year in Review" Report. 2. Accepting the 2026 budget for Experience Rochester and Mayo Civic Center Corporation. H.3. Contract Award: Rochester Sports and Recreation Complex - Project No. J2870 1. Authorizing Amendment No. 1 Guaranteed Maximum Price (GMP) in the amount of $27,978,635 to Knutson Construction for the Rochester Sports and Recreation Complex - Project No. J2870; and 2. Authorizing a budget of $24,207,087 for City and CMAR purchases of tax-exempt materials for the Rochester Sports and Recreation Complex - Project No. J2870; and 3. Authorizing staff to look for Value Engineering and additional funding opportunities to add back into the project selected deducts and add alternates up to the $65,000,000 allocation; and 4. Authorizing interim financing in the amount of $1,772,000 from Economic Vitality fund to cover the property purchase and 50% of the road, utilities, grading etc. serving the south remnant lots to allow addition of the recommended alternates and deducts. H.4. Rochester Sports and Recreation Complex Operator Agreement Approving the Rochester Sports and Recreation Complex Operator Agreement with Sports Academy. H.5. Recreation Programming Access Funding Request Approving up to $80,000 from the 2025 contingency fund for recreational programming initiatives 4  H.6. Authorization for Battery Energy Storage Agreements Adopting a Resolution authorizing the Energy Storage Service Agreements with Lightshift Energy SPV, LLC. I. Council Initiated Actions J. Ordinance First Readings K. Ordinance Second Readings L. Tabled Items M. Other Business N. Adjournment 5