Kenyon City Council, February 14, 2023

The meeting opened with the Pledge of Allegiance.

Citizen Comment

None

Adopt Agenda

Consent Agenda

Presentations / Public Hearings / Recognitions / Prolamations

School Bus Driver Appreciation Day Proclamation

Acting Mayor Ryan read and signed the "School Bus Driver Appreciation Day" proclamation.

Engineering

General Project Update

Pearl Creek Sanitary Sewer Improvements Engineer Olinger stated that the construction plans for the Pearl Creek Sanitary Sewer improvements are complete. The original forcemain route has been modified due to capacity issues, but the change will not increase project costs. Currently, easements with property owners are being worked on.

2023 Street Improvements Summary City Engineer Olinger reviewed the draft street reconstruction and overlay plan for 2023-2027. A public hearing relating to financing this project with general obligation street reconstruction bonds will need to be held.

Resolution 2023-04: Calling a Public Hearing Relating to Street Reconstruction Plan and the Issuance of Bonds Thereunder

Legal

Nuisance Property Violation – 1 Langford Ave. Update

Attorney Riggs updated the council on the 1 Langford Avenue nuisance. A citation was issued on January 10 5 to the property owner and arraignment is scheduled for February 23. OLD BUSINESS Continued discussion on Future of Depot Park Administrator Vahlsing reviewed an estimate from L&M Construction for improvements to the depot park shelter. There would also need to be a few other improvements made to bring the total costs in the range of $25,000. The Park Board recommended repairing the depot and seeking donations to assist with the cost.

New Business

Resolution 2023-03: Establishing Procedures Relating to Compliance with Reimbursement Bond

Regulations Under the Internal Revenue Code

Kenyon PD Body Worn Camera Policy

Chief Sjoblom reviewed the proposed body worn camera policy. The police department is looking at options for the purchase of the cameras.

Discuss Solid Waste Hauler Agreement

Administrator Vahlsing stated that the current agreement for solid waste hauling will expire June 30, 2023. The contract can either be extended or staff can be authorized to advertise for quotes. The council was in consensus to continue with the current hauler. Vahlsing will contact the current hauler concerning our desire to extend their contract.

Discuss Board of Adjustment Hearing

Administrator Vahlsing stated that the annual Board of Appeal and Equalization meeting is scheduled for Thursday, April 20 at 6:00 pm. The City of Kenyon no longer has any trained council members, so the County will conduct an open book meeting instead of this meeting being run by the city. In the future, the council may need to decide if they want to continue with the open book concept.

Jacobson Law office – Request for increase to fees for Criminal Prosecution contract. Administrator Vahlsing stated that Prosecuting Attorney Jacobson requested a $100 monthly increase to their contract effective January 1, 2023. The annual cost would increase from $12,600 to $13,800.

Schedule of Upcoming Meetings

KMU Meeting: Tuesday, February 21st @ 4:00 p.m. City Council Meeting: Tuesday, March 14th @ 7 p.m. Board of Appeal & Equalization: Thursday, April 20th @ 5:00 p.m.

Council And Staff General Comments

None 6

Holli Gudknecht, Administrative Assistant Molly Ryan, Acting Mayor

AGENDA ITEM NO. VI.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Administration

ITEM TYPE: Miscellaneous

Agenda Section: Presentations / Public Hearings

RECOGNITIONS/PROCLAMATIONS

SUBJECT: Public Hearing: Plan and Issuance of the Bonds to Finance the

Cost of Street Reconstruction

SUGGESTED ACTION: The public hearing is required as part of the bond sale. for Pearl Creek Sewer Main replacement and 2023 Street projects. There has been no comment received prior to the public hearing. See resolution attached below that was passed in February for more information on the public hearing.

Attachments:

Resolution 2023-04 Calling a Public Hearing Relating to Street Reconstruction Plan and the Issuance of Bonds Thereunder.DOCX

RESOLUTION NO. 2023-04

City Of Kenyon

COUNTY OF GOODHUE

STATE OF MINNESOTA

Resolution Calling A Public Hearing Relating

TO STREET RECONSTRUCTION PLAN AND THE

ISSUANCE OF BONDS THEREUNDER

BE IT RESOLVED by the City Council ("Council") of the City of Kenyon, Goodhue County,

Minnesota ("City"), as follows:

Section 1. Background; Findings.

1.01. The Council has found and determined that certain streets in the City are in need of reconstruction, repair and improvement.

1.02. The City is authorized by Minnesota Statutes, Section 475.58, subdivision 3b (the "Act"), to prepare a plan for reconstruction or overlay of streets in the City over the next five years, including a description of the affected streets and estimated costs (the "Plan"), and to issue general obligation bonds to finance the cost of street reconstruction activities described in the Plan.

1.03. Pursuant to the Act, the City is required to hold a public hearing regarding the Plan and issuance of the bonds thereunder.

1.04. The City now finds that it is necessary to prepare a Plan setting forth proposed street reconstruction projects in the City for the years 2023-2027, and to provide for the issuance of general obligation bonds thereunder in an aggregate principal amount not to exceed $650,000 (the "Bonds"), to finance certain costs of the Plan, and further finds and determines that it is in the best financial interests of the City that the City hold a public hearing on the Plan and the issuance of Bonds as provided in the Act.

Section 2. Public Hearing Authorized.

2.01. The City hereby authorizes its staff and consultants to prepare the Plan for street reconstruction projects in the City over the five-year period in accordance with the Act, and to place a copy of the Plan on file with the City Administrator by no later than the date of publication of the hearing notice.

2.02. As required by the Act, a public hearing on the Plan and the issuance of the Bonds to finance the cost of street reconstruction activities described therein will be conducted at City Hall on March 14, 2023, commencing at 7:00 P.M. The City Administrator is authorized and directed to

KE200\204\855423.v1 9 cause notice of the hearing to be published in substantially the form attached hereto as Exhibit A not less than ten (10) nor more than twenty-eight (28) days prior to the date of the hearing.

2.03. City staff and consultants are authorized to take all other actions needed to bring the Plan and issuance of the Bonds before the City Council.

Sec. 3. Miscellaneous.

3.01. As provided in the Act, the Bonds, in an aggregate principal amount not to exceed $650,000, will not be issued without the approval of a majority of the voters at a special election if within thirty (30) days after approval of the Plan and authorization of the issuance of the Bonds, a petition requesting such an election signed by a number of voters equal to five percent (5%) of the votes cast in the last previous City general election, is filed with the City Administrator.

Adopted by the City Council of the City of Kenyon, Minnesota, this 14th day of February 2023.

Molly Ryan, Acting Mayor

Attest:

Mark Vahlsing, City Administrator

KE200\204\855423.v1 10 EXHIBIT A

City Of Kenyon

GOODHUE COUNTY, MINNESOTA

Notice Of Public Hearing

NOTICE IS HEREBY GIVEN that the City Council of the City of Kenyon, Minnesota will conduct a public hearing at the City Hall, 709 2nd St, Kenyon, Minnesota on Tuesday, March 14, 2023, commencing at 7:00 P.M to consider a proposal concerning: (1) the adoption of a five-year street reconstruction plan (the "Plan"); and (2) the issuance of general obligation street reconstruction bonds (the "Bonds") to finance the reconstruction of certain streets in the City, all pursuant to Minnesota Statutes, Section 475.58, subdivision 3b. The Bonds will be issued in an aggregate principal amount not to exceed $650,000. A draft copy of the Plan is on file with the City Administrator and is available for public inspection at City Hall during regular business hours. The City may accept an offer to purchase the Bonds, and the City may sell the Bonds, at a price that results in the receipt of original issue premium in any amount.

The Bonds will not be issued without approval of the voters at a special election if within thirty (30) days after adoption of the resolution approving the Plan and authorizing issuance of the Bonds, a petition requesting such an election is signed by a number of voters equal to five percent (5%) of the votes cast in the last previous general City election and is filed with the City Administrator.

At the time and place fixed for the public hearing, the City Council will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may direct any questions or file written comments respecting the proposal with the City Administrator, at or prior to said public hearing.

By Order Of The City Council Of

THE CITY OF KENYON, MINNESOTA

/s/ Mark Vahlsing City Administrator

Published: March 1, 2023.

KE200\204\855423.v1 11 AGENDA ITEM NO. VI.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Legal

ITEM TYPE: Legal

Agenda Section: Presentations / Public Hearings

RECOGNITIONS/PROCLAMATIONS

SUBJECT: Annual Municipal Prosecution Report – David Jacobsen,

Attorney

SUGGESTED ACTION: Attorney David Jacobson will review the 2022 prosecuting activities. See attached prosecution report for more information.

Attachments:

2022_Annual Prosecution Report_Kenyon.pdf

Kenyon Prosecution Report - 2022

March 1, 2023

Jacobsen Law Firm, P.A. Authored by: David W. Jacobsen

Kenyon Prosecution Report

Background & 2022 Changes

This written report is to apprise the City Administrator and the Kenyon City Council of the municipal prosecution services provided by Jacobsen Law Firm, P.A. ("Law Firm") for 2022. The City of Kenyon has a statutory obligation to provide for prosecution of adult misdemeanor, certain designated gross misdemeanor, and petty misdemeanor offenses within the city limits. The City of Kenyon has contracted with the Law Firm since September 2011. The current rate was raised effective January, 2023 for services to $1,150 per month.

Currently, the Law Firm has one full-time attorney (David), two (2) semi-retired attorneys (Mike and Steve), one (1) paralegal (Suzy), and one (1) legal assistant (Karter). Attorney AJ Lindell assisted in prosecution services in 2022 but left employment with the Law Firm in December 2022. David Jacobsen and legal assistant Karter Lemcke are primarily responsible for handling prosecution services to the City of Kenyon.

Prosecuted Offenses

Prosecuted offenses include all charged offenses that required prosecutorial action before Goodhue County District Court. For the purposes of this year's report, prosecuted offenses do not include payable citations paid in lieu of a court appearance. It is likely that all citations were included in 2021's report. These citations require minimal prosecutorial resources. The Kenyon Police Department would be able to provide the number of citations issued for payable offenses in the City of Kenyon. Prosecuted offenses also exclude matters that were reviewed for prosecution but where no charges were filed. There were approximately 10-15 cases reviewed for prosecution but were declined due to lacking evidence, lacking jurisdiction (e.g., Juvenile matters, felony matters, outside of Kenyon city limits), or other extenuating circumstances.

Total Prosecuted Offenses: 55

Traffic Offenses

Of these offenses, thirty-three (36) or consist of traffic offenses. Traffic offenses prosecuted consist of the following: driving while impaired (2), with the remainder consisting of no current registration, driving after withdrawal/no driver's license violations, failure to provide proof of insurance/insurance card not in effect, careless

Kenyon Prosecution Report 2022 | 2

14 driving, and speeding. As compared to 2021, the total in prosecuted traffic offenses has decreased.

Total Traffic Offenses: 36

Community Offenses

Of the prosecuted offenses, nineteen (19) consist of community offenses. Community offenses prosecuted consist of the following: hazardous conditions (13) with the remainder consisting of disorderly conduct, theft, and trespass. As compared to 2021, community offenses have decreased. The decrease is likely due to how all citations were included as prosecuted offenses in 2021's report.

Total Community Offenses: 19

Dispositions For the above-mentioned offenses, eighty-seven percent (87%) have reached disposition and are closed. Dispositions ranged from dismissals with a fine to executed jail sentences based upon the severity of the offense and the defendant's driving and criminal history. Of those cases that reached disposition, dispositions occurred at various stages in the criminal prosecution process. Many cases were resolved at arraignment or the defendant's first court appearance and others were resolved at a pre-trial court appearance, or omnibus hearing. There were no jury trials conducted on behalf of Kenyon in 2022. As of December 31, 2022, seven (7) matters or twelve percent (12%) remain open.

Case Disposition Total: 48/55

Prosecution Resources

The Law Firm tracks attorney and staff time devoted to the City of Kenyon's prosecution services. In 2022, the Law Firm average amount of monthly hours spent toward prosecution services is approximately (10) hours in 2022 which is similar to the previous year. Please note, not all attorney in staff time is reflected and the actual time is likely higher. Kenyon Prosecution Report 2022 | 3 15 The Law Firm makes court appearances on the second and fourth Thursday of each month and other appearances scheduled outside those days. In addition to court appearances, the Law Firm prepares criminal complaints, communicates with defense counsel and crime victims, processes discovery requests, prepares discovery and pleadings, and communicates with law enforcement officers and records staff. The most time intensive of these out-of-court services is communication with law enforcement officers and self-represented defendants.

In addition to the services mentioned above, the Law Firm devotes time to collaborating with other stakeholders (i.e., judges, other prosecutors, and defense counsel, and court staff) in Goodhue County, reviewing court opinions that impact the City of Kenyon and attend continuing legal education to stay current on changes in the law and court procedures post-pandemic. This is time necessary to competently advise and represent the City of Kenyon but is not solely for the benefit of the city so is not reflected in the Law Firm's time toward Kenyon's prosecution services.

Total Hours for Prosecution Services: 120 (estimate)

Fine Revenue

When a defendant is convicted of an offense, unless waived, the defendant is ordered to pay a base fine which ranges based upon the level of offense plus a court surcharge ($75) and library fee ($13). By statute, the City of Kenyon receives two-thirds of the base fine and certain late fees while the remainder is directed to Goodhue County and the State of Minnesota. The total fine revenue for 2022 was $33,428.39 with $11,989.04 remitted back to the City of Kenyon. This is a significant increase from just under $7,000 in 2021.

Total Fine Revenue: $11,989.04

Post COVID-19 Effects on Legal System

The COVID 19 global pandemic has pushed the Minnesota Judicial Branch to leverage technology for efficiencies. This has impacted the delivery of prosecution services to the City of Kenyon. Currently, first appearances and traffic calendars are conducted via zoom remote technology. Pre-trials and trials are conducted in-person at the

Kenyon Prosecution Report 2022 | 4

16 courthouse in Red Wing. On the one hand, this has created considerable efficiencies with attorneys and defendants not required to travel to some court appearances. However, the remote hearings themselves are not as effective and cases that might have settled are not due to the expedited nature and docket volume of the zoom hearings. Certainly, technology has allowed for cost savings to the Minnesota Judicial Branch (i.e. interpreters, court reporters, clerks, etc. so the video hearings are likely permanent.

In 2022, the Minnesota Judicial Branch rolled out a new electronic evidence submission system called MNDES. MNDES is a cloud-based repository aimed to allowed for electronic evidence to be submitted and used in hearings and trials. I did have the opportunity to use this system recently on a jury trial for another municipality.

Closing It has been my pleasure serving the City of Kenyon as its city prosecutor and I look forward to continuing that public service in 2023. If you have questions, please feel free to contact me at (507) 786.9090 or by email at david@jacobsen-law.com. I welcome additional suggestions and questions from city staff, city council members, and the public.

Respectfully submitted,

Jacobsen Law Firm, P.A.

David W. Jacobsen

Kenyon Prosecution Report 2022 | 5

AGENDA ITEM NO. VII.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: Pearl Creek Sanitary Sewer Improvements

SUGGESTED ACTION: The City Engineer will provide an update on the project. See attached memo below.

Attachments:

02.1_Pearl Creek Sewer Project Update.pdf

Pearl Creek Sanitary Sewer Improvements Easements Over this past month, we have been in touch with property owners regarding easements. For the most part those discussions have been going smoothly.

As you may recall, the project will require an extensive amount of easement and grading work for the Barrett Property at the east end of Pine Street. An illustration of the proposed project within this property is provided on the next page. At this time, we believe we have reached a mutually agreeable location for the new infrastructure on this property. Our surveyors are currently drafting easement descriptions and we'll be working with the City Attorney to prepare final agreements.

Over the next month, we'll be negotiating with property owners to acquire the easements. All negotiations and related agreements will be subject to final approval by the City Council. Such agreements will be provided to the council for consideration of approval as they become available.

Requested Action: None – for information only.

H:\KENYON_CI_MN\_General\Council Meetings\2023\03 - Mar 2023\02.1_Pearl Creek Sewer Project Update.docx

Page: 2

AGENDA ITEM NO. VII.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: Update on project costs – George Eilertson – Northland Public

Finance & Derek Olinger City Engineer.

SUGGESTED ACTION: They will provide an update on current cost estimates for the Pearl Creek and Street costs. See memos on revised project costs and financing impacts attached below.

Attachments:

01.1_2023 Project Costs.docx Kenyon Scenarios 2023 project 030823.pdf Capital Planning - Sewer Fund 3.9.03.pdf NSI Presentation Kenyon CIP and Debt Planning v2 - Update_revised.pptx

21 2023 Project Cost Estimate Update We have recently updated estimates for this project and we believe costs for the project are going to come in higher than previously expected. Previous and current estimates are provided below.

Component Original Estimate Updated Estimate Change

Sewer Project $1,395,000 $1,885,000 +$490,000 Water Project $127,000 $190,000 +$63,000 Utility Total $1,522,000 $2,075,000 +553,000 Street Project $514,000 514,000 No Change Overall Total $2,036,000 $2,589,000 +$553,000

The original sewer project estimate was completed in summer 2022. In general, we typically prepare estimates based on pricing seen from other similar scoped projects in the area plus typical inflation rates. Given the specialized nature of this project, we have been discussing this project with contractors in an effort gain more pricing information.

The contractor pricing we've received over the past few months has indicated that some project components were underestimated: mainly the lift station itself and the segment of sanitary sewer needed to cross Pearl Creek. More recently, we have received soil boring information indicating that bedrock depths are shallower than originally anticipated, which will result in additional rock excavation costs.

While the anticipated bedrock and inflationary costs are significant, the majority of the cost increase is a result of better pricing information received from a contractor. Although these costs are only estimates, it would be appropriate for the City to re-evaluate the funding plan for the project and related utility rate/fund impacts. Ultimately, the final cost of the project used for the bond sale will be determined after bids are received this spring.

Impacts We have provided this information to the City's financial advisor and he will be providing a summary of the fiscal impacts at the upcoming meeting.

Following the presentation, we can discuss options for moving forward.

C:\Users\EASYPD~1\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@BC09325A\@BCL@BC09325A.docx

City of Kenyon, Minnesota Issuance of General Obligation Bonds, Series 2023 (based upon interest rates as of 3/6/23)

Scenario 1 Scenario 2

G.O. Sewer & Water Revenue Bonds, G.O. Street Combined Issue, A+ State Enhanced Reconstruction Rated (A+/AAA) Bonds, A+ Rated Total BOND OVERVIEW

Net Project Fund Amount $ 2,588,750 $ 2,075,000 $ 513,750 $ 2,588,750 Add Costs of Issuance and Rounding $ 71,218 $ 55,000 $ 30,280 $ 85,280 Add Capitalized Interest $ 10,032 $ - $ 10,970 $ 10,970 Bond Amount $ 2,670,000 $ 2,130,000 $ 555,000 $ 2,685,000

Bond term (Years) 15 15 15 15 Avg. Interest Rate 3.49% 3.46% 3.73% Total Net Debt Service $ 3,522,598 $ 2,803,522 $ 744,950 $ 3,548,472 Average Annual Debt Service $ 234,840 $ 186,901 $ 49,663 $ 236,565 105% Statutory Annual Debt Service $ 246,582 $ 196,247 $ 52,146 $ 248,393 Add Paying Agent Fees over Bond Term $495/Yr. $ 7,425 $ 7,425 $ 7,425 $ 14,850 Total Paying Agent plus Debt Service $ 3,530,023 $ 2,810,947 $ 752,375 $ 3,563,322

Projects Sewer - Rerouting of sewer. Water - Connect Gates Avenue to Engel Drive water main. Street Reconstruction - 7th, State, 8th, Washington, Bullis (10-11 blocks).

Northland Securities 3/8/2023 RC 18-

Sewer Fund

 Plan anticipates the issuance of debt to finance future sewer capital improvements  Years 2023, 2025, 2028, and 2031, in the approximate principal amounts of $1,940,000, $860,000, $265,000, and $109,000 respectively

 New sewer bond annual debt service payable from revenues of the Sewer Fund will average approximately $203,000 between 2024-2043  Future increases to Sewer rates are necessary to cover depreciation expense, annual capital outlay, and future debt service costs.

15 24 RC 18-

Sewer Fund

RED BOX INDICATES APPROX SEWER INCREASE

*O&M costs assume 3% increase annually

16 25 RC 18-

Sewer Fund Utility Rates

 New Sewer Bond annual debt service = 203,000 (2023-'32) (formerly 169,000)  Increases in sanitary utility rates expected (also expected during Jan. 2023 update)  Base Rate = +27% (formerly 22%)  User Rate = +23% (formerly 16%)  Note (majority of increase by 2026, remainder by 2032)

Typical 3,500 residential user Current Bill = ~$47/mo.  2032 Bill = ~$58/mo. (formerly $55/mo.)

 Additional rate increases will be needed to fund depreciation expense and capital outlay.

17 26 RC 18-

Capital And Debt Planning

City Council Meeting January 24, 2023

George Eilertson, Northland Public Finance

RC 18-

Background  Northland prepared a financial management plan for the City in 2021. Developed around identified key assumptions, including project cost estimates and source of funds presented in the 2020 Infrastructure Management Plan (IMP Plan) by Bolton & Menk.  This presentation provides an update of the financial impacts based on Bolton & Menk's 2022 IMP Plan updates  Plan is intended to serve as a guide for the management of the City's capital improvement and replacement plans  Plan contains information on estimated property taxes for debt service and impact on utility revenues related to capital spending and debt service

2 28 Review of City of Kenyon's Existing Debt RC 18-

City of Kenyon, Minnesota Outstanding Debt as of December 1, 2022

Original Outstanding Coupons on Callable

Bond Issue Dated Date Call Date Final Maturity Callable Principal Comments Principal Principal Maturities

G.O. Improvement Finance street and water

5/1/2012 N/A 2/1/2023 $575,000 $65,000 N/A .85-2.75% Bonds, Series 2012A improvements

G.O. Sewer Revenue

9/25/2013 N/A 2/1/2033 $1,908,286 $1,068,000 N/A 1.00% Finance sewer utility improvements Bonds, 2013 (PFA)

Fire Truck Lease 2014 11/17/2014 N/A 12/15/2022 $330,000 $25,840 N/A 2.90% Lease to purchase fire truck

G.O. Improvement Finance street and water

6/1/2016 2/1/2024 2/1/2036 $620,000 $475,000 N/A 1.15 - 3.00% Bonds, Series 2016A improvements

Vactor Truck 7/5/2017 N/A 8/1/2023 $165,064 $25,160 N/A N/A Lease to purchase vactor truck

2017 USDA Note Finance Governmental Fund capital 8/28/2017 N/A 8/28/2057 $450,000 $423,259 N/A 2.88% (Direct Borrowing) equipment

3 29 Review of City of Kenyon's Existing Debt RC 18-

City of Kenyon, Minnesota Outstanding Debt as of December 1, 2022

Original Outstanding Coupons on Callable

Bond Issue Dated Date Call Date Final Maturity Callable Principal Comments Principal Principal Maturities

2017 USDA Bond Finance Governmental Fund capital 8/28/2017 N/A 8/28/2057 $2,120,000 $1,994,023 N/A 2.88% (Direct Borrowing) equipment

Ford F150 7/2/2019 N/A 7/1/2023 $29,412 $6,509 N/A N/A Lease to purchase Ford F150

Plow Truck 10/8/2019 N/A 7/20/2026 $228,860 $135,961 N/A N/A Lease to purchase Plow Truck

Sweeper 3/15/2020 N/A 2/1/2026 $110,000 $75,737 N/A N/A Lease to purchase Sweeper

G.O. Improvement Finance street and water

7/21/2020 2/1/2028 2/1/2041 $5,240,000 $5,080,000 N/A 2.00 - 3.00% Bonds, Series 2020A improvements

4 30 Review of City of Kenyon's Existing Debt RC 18-

5 31 Review of City of Kenyon's Existing Debt RC 18-

6 32 Review of City of Kenyon's Existing Debt RC 18-

7 33 RC 18-

Infrastructure Management

Plan Summary  Inventory of street, sewer, and water needs throughout city (2020)

 Planning level cost estimates for each street/utility segment in town

 Use for Data-Based Project Selection in CIP

 Living Document  Update with each major project  Improved data over time

8 34 RC 18-

Street Maintenance

Infrastructure - Maintain Good Streets ($45K Annual) Goals - Rehab Moderate Streets (5-10 Yrs) - Reconstruct w/ Util. Condition in Mind

Sanitary Sewer

- Prioritize I & I Reduction Projects - Pearl Creek, Forest Street, 8th Street Downtown Roof Drains - Other Areas: Replace/rehab clay pipe

Watermain - Replace Small Diam. Cast Iron Pipe - 6th Street, Bullis Street

State/County Projects

- Partnering = Cost & Flexibility - CSAH 12 (2025) & Hwy 60 (2030)

9 35 RC 18-

Current Infrastructure CIP

10 36 RC 18-

Street Improvement Capital Projects Fund

 City does not have sufficient cash available to cash flow planned street improvements, including special assessment portion of project costs  City will need to issue debt to finance street improvements  Debt service on bonds to be issued will be structured around the special assessment revenue and existing debt to manage the City's total tax levies  Total 20-year average tax levy for all levy supported debt service is estimated at approximately $435,000 annually See table 3  Compares to total debt service levy of $265,000 for year 2022

11 37 RC 18-

Water Fund

 Plan includes the issuance of debt to finance future water capital improvements  Years 2023, 2025, and 2028, in the approximate principal amounts of $195,000 $379,000, $232,000, respectively

 Plan includes annual debt service payable from net revenues of the Water Fund  New water revenue bond annual debt service is estimated to average approximately $50,600 between 2024-2043.  Future increases to water rates may be necessary - any increases should be minimal

12 38 RC 18-

Water Fund

*O&M expenses assume 3% increase annually

13 39 RC 18-

Water Fund

 O&M and debt service costs are estimated to be $398,000 by 2032 and current rates are estimated to cover these expenses.

 Rates may need to increase minimally to cover depreciation expense and capital outlay.

14 40 RC 18-

Sewer Fund

 Plan anticipates the issuance of debt to finance future sewer capital improvements  Years 2023, 2025, 2028, and 2031, in the approximate principal amounts of $1,940,000, $860,000, $265,000, and $109,000 respectively

 New sewer bond annual debt service payable from revenues of the Sewer Fund will average approximately $203,000 between 2024-2043  Future increases to Sewer rates are necessary to cover depreciation expense, annual capital outlay, and future debt service costs.

15 41 RC 18-

Sewer Fund

RED BOX INDICATES APPROX SEWER INCREASE

*O&M costs assume 3% increase annually

16 42 RC 18-

Sewer Fund Utility Rates

 New Sewer Bond annual debt service = 203,000 (2023-'32) (formerly 169,000)  Increases in sanitary utility rates expected (also expected during Jan. 2023 update)  Base Rate = +27% (formerly 22%)  User Rate = +23% (formerly 16%)  Note (majority of increase by 2026, remainder by 2032)

Typical 3,500 residential user Current Bill = ~$47/mo.  2032 Bill = ~$58/mo. (formerly $55/mo.)

 Additional rate increases will be needed to fund depreciation expense and capital outlay.

17 43 RC 18-

Stormwater Fund

 Plan anticipates the issuance of debt to finance future stormwater capital improvements  Years 2025, 2028, and 2031 in the approximate principal amounts of $560,000, 203,000 and $86,000, respectively

 New Stormwater bond annual debt service payable from revenues of the Stormwater Fund will average approximately $60,000 between 2026-2043  Future increases to Storm Water rates will be necessary to cover depreciation expense, annual capital outlay, and future debt service costs.

18 44 RC 18-

Stormwater Fund

*O&M costs assume 3% increase annually

19 45 RC 18-

Stormwater Fund – Utility Rates

 O&M and debt service expenses are estimated to be $128,000 by 2032  Rates will need to increase 8% (from 2023 current rates) by 2032 to cover cash expenses. Units Total Residential $10.90 706 $7,693 Non-Residential $21.80 141 $3,073 Multi-Unit $5.45 12 $65 Monthly Total $10,831 Annual Total $130,000

 Additional rate increases will be needed to fund deprecation expense and capital outlay 2046 RC 18-

Capital Improvement Plan and Debt Service

Capital Improvement Projects

Use and Source of Funds

Use of Funds Source of Funds

Street Total Project Street Improvemen Water Plus Cost of Use of Cash Sanitary Sewer Storm Sewer Total Project Costs and Cost Bond Total Source Year Improvement t Special Improvement Issuance of or Other Improvements Improvements Costs of Issuance of Proceeds of Funds City Portion Assessment s Bonds Funds Bonds Portion 2023 553,750 - 190,000 1,885,000 - 2,628,750 76,250 2,705,000 2,665,000 40,000 2,705,000 2024 45,000 - - - - 45,000 - 45,000 - 45,000 45,000 2025 690,240 161,310 372,075 842,750 549,750 2,616,125 78,875 2,695,000 2,650,000 45,000 2,695,000 2026 45,000 - - - - 45,000 - 45,000 - 45,000 45,000 2027 45,000 - - - - 45,000 - 45,000 - 45,000 45,000 2028 799,860 188,715 227,550 259,825 199,125 1,675,075 44,925 1,720,000 1,675,000 45,000 1,720,000 2029 45,000 - - - - 45,000 - 45,000 - 45,000 45,000 2030 45,000 - - - - 45,000 - 45,000 - 45,000 45,000 2031 2,279,405 63,840 - 106,400 84,000 2,533,645 71,355 2,605,000 2,560,000 45,000 2,605,000 2032 45,000 - - - - 45,000 - 45,000 - 45,000 45,000

2033 4,593,255 413,865 789,625 3,093,975 832,875 9,723,595 271,405 9,995,000 - 445,000 445,000

Note: 1. All figures are estimated and stated in present value (today's dollars) estimates. 2. Bond proceeds includes both bonds issued to finance city portion of project costs and special assessment portions. 3. City anticipates assessing benefiting property for a portion of certain utility improvements. Collection of special assessments for utility improvements will be a source of revenue for deposit into the respective enterprise (utility) funds. Special assessments collected for street improvements shall be deposited into the governmental debt service fund.

21 47 22 RC 18-

2248 RC 18-

2349 RC 18-

2450 25 RC 18-

2551 26 RC 18-

2652 RC 18-

Tax Impact on Residential Homestead Property

2020 IMP Plan Name 2023 Street Projects Name 2025 Street Projects Bond size 440,000 Bond size 425,000 Average Levy $39,274 Average Levy $29,993 Fiscal Year 2023 Fiscal Year 2025 Classification Residential Homestead Classification Residential Homestead

Estimated Estimated

Market Value Est. Tax Increase % Increase Market Value Est. Tax Increase % Increase 150,000 48.32 3.88% 150,000 36.90 2.96% 250,000 80.53 3.88% 250,000 61.50 2.96% 350,000 112.74 3.88% 350,000 86.10 2.96% 450,000 144.96 3.88% 450,000 110.70 2.96%

2022 IMP Plan Name 2023 Street Projects Name 2025 Street Projects Bond size 530,000 Bond size 830,000 Average Levy $47,110 Average Levy $59,067 Fiscal Year 2023 Fiscal Year 2025 Classification Residential Homestead Classification Residential Homestead

Estimated Estimated

Market Value Est. Tax Increase % Increase Market Value Est. Tax Increase % Increase 150,000 57.62 4.53% 150,000 72.25 5.68% 250,000 96.04 4.53% 250,000 120.42 5.68% 350,000 134.45 4.53% 350,000 168.58 5.68% 450,000 172.87 4.53% 450,000 216.75 5.68%

2753 RC 18-

Tax Impact on Residential Homestead Property

2020 IMP Plan Name 2028 Street Projects Bond size 805,000 Average Levy $58,232 Fiscal Year 2028 Classification Residential Homestead

Estimated Market Value Est. Tax Increase % Increase 150,000 71.64 5.76% 250,000 119.40 5.76% 350,000 167.16 5.76% 450,000 214.93 5.76%

2022 IMP Plan Name 2028 Street Projects Name 2031 Street Projects Bond size 970,000 Bond size 2,365,000 Average Levy $68,204 Average Levy $163,564 Fiscal Year 2028 Fiscal Year 2031 Classification Residential Homestead Classification Residential Homestead

Estimated Estimated

Market Value Est. Tax Increase % Increase Market Value Est. Tax Increase % Increase 150,000 83.43 6.56% 150,000 200.07 15.72% 250,000 139.04 6.56% 250,000 333.45 15.72% 350,000 194.66 6.56% 350,000 466.83 15.72% 450,000 250.28 6.56% 450,000 600.20 15.72%

2854 Historical/Projected Tax Rate RC 18-

Net Tax Tax

Year City Name Tax Rate Capacity (After FD Certified Levy and TIF)

Kenyon 3 % Growth

Est. 2032 104.97 1,697,504 1,781,954 Est. 2031 94.53 1,648,062 1,557,884 Est. 2030 95.41 1,600,060 1,526,667 Est. 2029 96.85 1,553,457 1,504,480 Est. 2028 91.55 1,508,210 1,380,790 Est. 2027 91.85 1,464,282 1,344,891 Est. 2026 91.44 1,421,633 1,299,957 Est. 2025 90.56 1,380,226 1,249,961 Est. 2024 91.80 1,340,025 1,230,179 Est. 2023 90.95 1,300,995 1,183,301 Est. 2022 87.72 1,263,102 1,107,960 Act. 2021 84.84 1,226,313 1,040,355 Act. 2020 82.97 1,219,232 1,011,620 Act. 2019 95.93 989,819 949,573 Act. 2018 94.75 939,632 890,265 Assumptions: Annual operating levy increase from 2023 preliminary levy - 3% Annual Net Tax Capacity increase - 3%

2955 Summary RC 18-

 Purpose of the Plan is to provide a strategy to fund planned capital improvements – for capital paid from tax levies and utility revenues  City will need to make annual decisions on tax levies and any issuance of bonds to finance improvements

3056 RC 18-

Thank you

Northland Public Finance

The public finance group of George Eilertson Northland Securities, Inc. 612-851-5906 150 South Fifth Street, Suite 3300 geilertson@northlandsecurities.com Minneapolis, Minnesota 55402 800-851-2920 www.northlandsecurities.com/public_finance

Member of FINRA and SIPC | Registered with SEC and MSRB

31 57 AGENDA ITEM NO. VII.C

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: 2023 Street Reconstruction Plan

1. Resolution 2023:05 Approving a Street Reconstruction Plan and Authorizing the Issuance of General Obligation Street Reconstruction Bonds

SUGGESTED ACTION: Resolution approving the Street reconstruction plan and calling for the sale bonds to finance the project. George Eilertson of Northland Public Finance will provide more information at the Council meeting. See attachments below for more information. MOTION NEEDED

Attachments:

Resolution 2023-05 APPROVING_STREET_RECONSTRUCTION_PLAN.DOCX

01.2_Street Reconstruction & Overlay Plan_Final.pdf 01.1_2023 Street Improvements Summary.pdf

RESOLUTION NO. 2023-05

City Of Kenyon

COUNTY OF GOODHUE

STATE OF MINNESOTA

Resolution Approving A Street Reconstruction

PLAN AND AUTHORIZING THE ISSUANCE OF GENERAL

OBLIGATION STREET RECONSTRUCTION BONDS

BE IT RESOLVED by the City Council of the City of Kenyon, Goodhue County, Minnesota (the

"City"), as follows:

Section 1. Background.

1.01. The City Council has found and determined that certain streets in the City are in need of reconstruction, repair and improvement.

1.02. The City is authorized under Minnesota Statutes, Section 475.58, subdivision 3b, as amended (the "Act") to prepare a plan for street reconstruction in the City over the next 5 years that will be financed under the Act, including a description of the proposed work and estimated costs. Pursuant to the Act, the City may issue general obligation bonds to finance the cost of street reconstruction activities described in the plan.

1.03. Before the approval of the street reconstruction plan and the issuance of any bonds under the Act, the City is required to hold a public hearing on the plan and the issuance of bonds thereunder.

1.04. Pursuant to the Act, the City, in consultation with its City engineer, has caused preparation of its Street Reconstruction and Overlay Plan: 2023 - 2027 (the "Plan"), describing certain street reconstruction and overlay activities and the estimated costs of the Plan over the five-year period covered by the Plan. The reconstruction activities described in the Plan include, but are not limited to, reconstruction and overlay work on roads within the City, including Bullis Street, Washington Street, State Street, 7th Street, 8th Street, County State Aid Highway 12, Langford Avenue, and 5th Street, as described in more detail in the Plan (collectively, the "Project").

1.05. The City has determined that it is in the best interests of the City to authorize the issuance and sale of one or more series of general obligation street reconstruction bonds pursuant to the Act in a maximum principal amount of $650,000 (the "Bonds"). The purpose of the Bonds is to finance the costs of the Project as described in the Plan.

1.06. On the date hereof, the City Council held a public hearing on the Plan and the issuance of the Bonds, after publication in the City's official newspaper of a notice of public hearing at least 10 days but no more than 28 days before the date of the public hearing.

Section 2. Plan Approved; Bonds Authorized.

2.01. The City Council finds that the Plan will improve the City's system of public roads, which serves the interests of the City as a whole, and approves the Plan in the form presented at the public hearing and on file at City Hall.

KE200\204\856815.v4 1 59 2.02. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Council, by at least a two- thirds vote of all of its members, finds that the Plan and the improvements to be financed with the Bonds do not impact and do not have a relationship to the City's comprehensive plan; the Plan and improvements are consistent with the City's comprehensive plan; therefore, the Council dispenses with the requirements of Minnesota Statutes, Section 462.356, subd. 2 relating to planning commission review of the Plan and the improvements.

2.03. The City Council authorizes the issuance of the Bonds in accordance with the Plan. City staff and consultants are authorized to take all actions necessary to negotiate the sale of the Bonds, subject to the contingency described in Section 2.03 hereof.

2.04. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to 5% of the votes cast in the last municipal general election, is filed with the City Administrator within 30 days after the date of the public hearing, the City may issue the Bonds under Minnesota Statutes, Section 475.58, subdivision 3b only after obtaining approval of a majority of voters voting on the question at an election. The authorization to issue the Bonds is subject to expiration of the 30-day period without the City's receipt of a qualified petition under the Act, or if a qualified petition is filed, upon the approving vote of a majority of the voters voting on the question of issuance of the Bonds.

2.05. City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution.

Section 3. Official Reimbursement Intent.

3.01. The Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met. The City expects to incur certain expenditures with respect to the Project that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of tax-exempt bonds.

3.02. The City has determined to make this declaration of official intent (the "Declaration") to reimburse certain costs with respect to the Project from proceeds of the Bonds in accordance with the Reimbursement Regulations.

3.03. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations.

3.04. This Declaration has been made not later than sixty (60) days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of the Bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or five percent (5%) of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of twenty percent (20%) of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction.

KE200\204\856815.v4 2 60 3.05. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the Bonds described herein are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of the Bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such expenditures.

3.06. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations.

Approved by the City Council of the City of Kenyon, Minnesota, this 14th day of March, 2023.

Molly Ryan, Acting Mayor

ATTEST:

Mark Vahlsing, City Administrator

KE200\204\856815.v4 3 61 City of Kenyon

Street Reconstruction and Overlay Plan: 2023-2027

Introduction

The City of Kenyon has a Street Reconstruction and Overlay Plan which is updated with each major street and/or utility project undertaken, and was last updated and approved in August 2022. Part of this plan includes the maintenance, rehabilitation and reconstruction of streets, generally consisting of Seal coating and crack filling, pavement patching, milling/reclaiming and repaving, full street reconstructions, and repair of items incidental to street work (curbs, sidewalks, castings).

The purpose of this Street Reconstruction and Overlay Plan: 2023-2027 (the "Plan") is to satisfy funding requirements of the project under Minnesota Statutes , Section 475.58, subdivision 3b (the "Act") for the use of street reconstruction bond(s).

As defined in the Act, street reconstruction and bituminous overlays include but are not limited to: utility replacement and relocation and other activities incidental to the street reconstruction; the addition or reconstruction of turn lanes, bicycle lanes, sidewalks, paths, and other improvements having a substantial public safety function; realignments and other modifications to intersect with state and county roads; and the local share of state and county road projects. Except in the case of turn lanes, bicycle lanes, sidewalks, paths, and other safety improvements; realignments; intersection modifications; and the local share of state and county road projects, street reconstruction and bituminous overlays does not include the portion of project costs allocable to widening a street or adding curbs and gutters where none previously existed.

Justification

Pavement management and projects are generally recommended based on the following:

Good or better Condition Streets: Maintenance (crack filling and seal coating) on 7-year rotation Medium Condition Streets: Overlay within 5-10 years of initial assessment Poor Condition Streets: Reconstruction as financially feasible

Additional considerations for pavement management are also taken into account, as described in the current infrastructure management plan.

Proposed Capital Improvements & Cost Estimates

The Plan includes priority street rehabilitations and reconstructions. It is anticipated that the 2023 project will be funded using general obligation street reconstruction bonds. Annual street maintenance projects are not listed since this work is typically funded out of the annual budget and not financed. Financing for other projects beyond 2023 will be determined on a case-by-case basis and will likely include additional general obligation bonds and additional capital fund spending.

Year Street Type Est. Costs

Bullis St (1st – 2nd), Washington St (2nd – 3rd, 4th – 5th, 7th – S. End), 2023 Overlay1 $650,0002 State St (7th – S. End), 7th St (6th – Spring), 8th St (Bullis – Forest) 2024 - - - CSAH 12 (2nd Street – Old Tressel), Langford Ave (Pine – Mogren 2025 Reconstruction $1,780,000 Hill), 5th St (Spring – Bullis) 2026 - - - 2027 - - - 1 Overlay work generally consisting of patching, reclaiming/milling & repaving, and incidental work 2 Includes an estimated $135,000 of alternate street work. Costs do not include unrelated utility work planned for 2023. 3 Costs include planned utility & drainage work for streets listed. Total costs are reported in present value 2023 dollars. Stand-alone utility

improvements are not reported. H:\KENYON_CI_MN\0H1127340\2_Preliminary\C_Reports\Street Reconstruction & Overlay Plan_v2.docx 1 of 2 62 City of Kenyon – Street Reconstruction and Overlay Plan: 2023 - 2027

The City reserves the right to delay reconstruction projects until subsequent years of this Plan and postpone the issuance of general obligation bonds (the "Bonds") in more than one series, so long as the Bonds so issued do not exceed $650,000.

The estimated costs reported above include construction, engineering, administration and financing costs. This plan is intended to be updated on a regular basis, as needed for future financing.

Professional Engineer

I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota.

Derek P Olinger License No. 54287 Date: 02/13/2023

2 of 2 63 2023 Street Improvements Summary Following the public hearing, the street reconstruction and overlay plan may be considered for approval by resolution.

To summarize, this approval satisfies statutory requirements for the issuance of Street Reconstruction bonds, which are planned for funding this year's street project.

Requested Action:  Approval of Resolution Approving a Street Reconstruction Plan and Authorizing the Issuance of General Obligation Street Reconstruction Bonds

H:\KENYON_CI_MN\_General\Council Meetings\2023\03 - Mar 2023\01.1_2023 Street Improvements Summary.docx

AGENDA ITEM NO. VIII.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Legal

ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: Nuisance Property Violation – 1 Langford Avenue Update

SUGGESTED ACTION: The City Attorney will provide an update at the Council meeting.

Attachments:

AGENDA ITEM NO. VIII.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Administration

ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: 2023 Agreement with Luis Tellez - Taco Express

Suggested Action:

Mr. Tellez is again seeking Council approval to lease City owned land east of the Muni to operate a food trailer. A copy of the lease is included in the meeting packet. In 2022 the Taco Express paid $400 in seasonal rent. Staff would recommend an increase in rent to $430 in 2023. The City has also received a schedule of when they will be operating the food truck on the City property this year.

Motion Needed

Attachments:

Tellez Limited Use Agreement 2023.doc

LIMITED USE AGREEMENT

THIS LIMITED USE AGREEMENT (the "Agreement") is entered into as of March 14, 2023 by and between the CITY OF KENYON, a Minnesota municipal corporation (the "City") and MR. LUIS F. TELLEZ (the "Applicant").

Recitals

A. The City of Kenyon is the owner of the Kenyon Municipal Liquor Store (645 2nd Street)

and adjacent vacant lot in the City of Kenyon described as follows: Parcel Number: 66- 520-0380; Lot 009, Block 004; Plat 66520 Overholts Addition (the vacant lot is hereinafter referred to as the "Property").

B. The Applicant desires to use a portion of the Property as designated by the City for the purpose of operating a mobile food unit.

Agreement

1. Offer and Acceptance of Agreement. Subject to the terms and conditions of this Agreement, the City and the Applicant agree that the Applicant may operate a mobile food unit on the Property owned by the City described above.

2. Consideration. In consideration for the right to conduct business on the Property, the Applicant shall pay four hundred dollars ($425.00).

3. Use and Scope of Agreement Premises. Subject to the conditions set forth herein, the non-exclusive limited use of the Property is hereby granted to Luis Tellez for the purpose of operating a mobile food unit. This limited use is subordinate to any and all rights of City in the Property. City reserves the right to the use of the Property herein granted non-exclusively to the Applicant for the City's own purposes.

The non-exclusive limited use of the Property includes the following conditions:

A. The mobile food unit may be on site from 12:00 p.m. Thursdays until 12:00 a.m. Saturdays from May 19, 2023 through October 15, 2023 (does not include Rose Fest Weekend).

B. The mobile food unit must be located on the south-east portion of the lot away from 2nd Street.

C. A Certificate of Liability Insurance must be provided, naming the City of Kenyon

as an additional insured.

D. Applicant agrees to comply with applicable City, County, and/or State Codes.

E. The Property must be kept clear of debris and waste. 351926v2 SJR KE200-1 1 67 F. Applicant is responsible for all costs associated with operation of the mobile food unit.

G. Applicant agrees to remove the mobile food unit immediately at the request of the City.

4. Indemnification. The Applicant shall at all times indemnify and hold harmless the City from any and all claims for damages, including costs and attorney fees, arising from or by the use of the Property or pursuant to this Agreement, provided, however, that nothing in this Agreement shall be construed to waive any rights that the City has against the Applicant under this Agreement. Nothing in this Agreement shall be construed as a waiver by the City of any limitations on liability to which the City is entitled pursuant to Minnesota Statutes Chapter 466 or otherwise.

5. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of the Agreement shall not be binding upon either party except to the extent incorporated in the Agreement.

6. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by any party in connection with this Agreement shall be binding only if evidenced in writing signed by the parties to be affected by said modification or additional obligation.

7. Assignability of Agreement. It is expressly agreed that Mr. Luis F. Tellez shall not have the right to assign any rights under this Agreement except on the prior, express, and written consent of the City.

8. Termination. The City or the Applicant may terminate this Agreement at any time for any reason, or for no reason at all, by providing written notice to the other party. Upon termination of this Agreement, the Applicant shall remove the mobile food unit from the Property.

9. Notice. Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail or delivered personally; and

A. in the case of the Applicant, is addressed or delivered personally to the Applicant at 5407 510th Street Path, Kenyon, MN 55946 and

B. In the case of the City, is addressed or delivered personally to the City at City of Kenyon, 709 2nd Street, Kenyon, MN 55946.

351926v2 SJR KE200-1 2 68 In witness whereof Applicant and City have executed this Limited Use Agreement on this 14th day of March, 2023.

City Of Kenyon

By: Molly Ryan, Acting Mayor

By: Mark Vahlsing City Administrator STATE OF MINNESOTA ) ) ss COUNTY OF GOODHUE )

This instrument was acknowledged before me on the 14th day of March, 2023, by Molly Ryan and Mark Vahlsing, as the Acting Mayor and City Administrator, respectively, of the CITY OF KENYON, a Minnesota municipal corporation on behalf of the said municipal corporation.

Notary Public

Applicant

Luis F. Tellez

State Of Minnesota )

) ss COUNTY OF GOODHUE )

This instrument was acknowledged before me on this ______ day of __________, 2023, by Luis F. Tellez, the Applicant of this Agreement.

Notary Public

351926v2 SJR KE200-1 3 69 AGENDA ITEM NO. X.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: March 14, 2023

SUBMITTED BY: Mark Vahlsing, Administration

ITEM TYPE: Old Business

Agenda Section: Old Business

SUBJECT: City Hall Roof Replacement

SUGGESTED ACTION: This item was previously discussed by the Council on September 13, 2022. The roof of City Hall needs to be replaced. It was inspected after sustaining damage from storms in June 2022 and found to be in poor condition. It was subsequently inspected by Josh Lerfeld of L&M Construction. He also concurs that it needs to be replaced. L&M patched portions of the roof where needed but cannot schedule the replacement project until 2023. We have received an updated written quote from L&M which is attached below.

-50-year steel $53,000 *

At the September meeting the Council concurred with the staff recommendation of the 50-year steel option. Financing for the project could be provided through an interfund loan with KMU. L&M would complete the project in 2023. MOTION NEEDED

Attachments:

Est_1501_from_LM_Construction_Co._840.pdf

L&M Construction Co. 1156 Mantorville Rd Kenyon, MN 55946 Estimate Josh 507-251-4948 lmconstruction89@gmail.com Date Estimate # Greg 507-351-0079 greg.lmconstruction@gmail.com 2/15/2023 1501

License # BC672239

Name / Address City of Kenyon 709 2nd Street Kenyon, MN 55946

Description Total

Re-roof City hall 53,200.00 50 year hidden fastener steel from fabral Tear off and disposal of old shingles Install all new ridge vent Install trims Clean up of job site Permit included

Thanks we look forward to working with you! Total $53,200.00

AGENDA ITEM NO. XI.A

Agenda Item Summary

CITY COUNCIL A