Adopting a Resolution authorizing the advertisement for bids for the Wood Waste Management Site - Project No. J3070 and authorizing the transfer of $350,000 from the 2026 Contingency Fund to J3070.

Staff is nearing completion of the engineering plans and specifications for the wood waste management site, Project J3070. Relocation of commercial wood waste receiving and processing operations from its current location at Hathaway Tree Service to the northeast portion of the KR3 reservoir site is being planned due to proximity to the newly planned housing developments. Residential brush drop-off would remain at the existing Hathaway location, with Hathaway transporting residential material to KR3 for processing one to two times per week or as needed. 

The target budget for this relocation work is $700,000; however, final project costs will not be known until the final permits and construction bids are received. City staff has been working with Kalmar Township on the zoning and permitting requirements. The preliminary funding plan is for 50% to come from internal budgets between impacted departments and divisions. Council preliminarily supported use of up to $350,000 in contingency funds for the remaining 50% cost of this work at the August 17, 2026 Council meeting. 

The construction bids will be brought back to council for consideration and for awarding the bid. Engineering design is being completed in-house with City Engineering team members, and a micro-contract with TSP was executed for structure design for setting the donated shed from Olmsted County and supplying the shed with electricity. 

The relocation of commercial operations to KR3 and continuing residential services at its current location will: 

• Maintain reliable and affordable wood waste services for residents, contractors, and City operations
• Eliminate the nuisance conditions caused by commercial-scale deliveries and the processing of wood waste near growing residential development
• Provide a practical and cost-effective long-term solution

Awarding the construction contract is anticipated in quarter four of 2026, with work occurring in 2026 and 2027. City staff is seeking approval to transfer $350,000 from the 2026 contingency fund to J3070 to cover up to 50% of the project cost. If the project comes in under a total of $700,000, the remaining funds will be transferred back to the City’s general reserve. 

The proposed relocation and continued operation of wood waste management aligns with City, County, and State policies. It supports the City of Rochester’s Sustainability & Resiliency Community Work Plan by advancing solid waste diversion, organics processing, and environmentally responsible municipal operations. It is consistent with the P2S 2040 Comprehensive Plan, which emphasizes sustainable land use, environmental stewardship, and minimizing nuisance impacts near residential areas.

At the County level, the strategy aligns with Olmsted County’s 2022–2032 Solid Waste Management Plan, which prioritizes resource recovery, organics programs, and a comprehensive waste system. It also conforms to Minnesota’s waste management hierarchy and regulatory framework, which prioritize reduction, recycling, and composting—including yard and wood waste.

Finally, the recommendation supports state and local environmental justice commitments by reducing impacts on growing residential neighborhoods and ensuring equitable, environmentally sound service delivery.

August 17, 2026 Council Meeting: Preliminary approval to relocate operations to KR3 and preliminary approval of $350,000 in 2026 contingency funds.

August 31, 2026 Council Meeting: Mayor Norton vetoed the August 17th council approval. Council upheld the August 17th decision.

The target project budget for this work is $700,000. The recommendation is for 50% of the funding source to come from internal sources within existing budgets from departments and divisions that regularly utilize the wood waste management site. The remaining 50%, up to $350,000, is being requested in contingency funding pending a future final council approval. 

No alternative actions recommended at this time.