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- 3.14.23 Updated Council Packet Agenda packet · 172k chars
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AGENDA
CITY COUNCIL REGULAR SESSION
March 14, 2023
7:00 PM
I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
IV. CONSENT AGENDA
**All items listed with asterisks (**) are considered routine and non-controversial by the
Council and will be approved by one motion. There will be not separate discussion of these
items unless a Council member, City staff or citizen so requests, in which case the item will be
removed from the Consent Agenda and considered in its normal sequence on the agenda.
V. APPROVAL OF MINUTES and APPOINTMENTS
V.A Approval of Minutes and Appointments
Summary Report
2-14-23 Minutes.doc
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
VI.A Public Hearing: Plan and Issuance of the Bonds to Finance the Cost of Street
Reconstruction
Summary Report
Resolution 2023-04 Calling a Public Hearing Relating to Street Reconstruction Plan
and the Issuance of Bonds Thereunder.DOCX
VI.B Annual Municipal Prosecution Report – David Jacobsen, Attorney
Summary Report
2022_Annual Prosecution Report_Kenyon.pdf
VII. ENGINEERING
VII.A Pearl Creek Sanitary Sewer Improvements
Summary Report
02.1_Pearl Creek Sewer Project Update.pdf
VII.B Update on project costs – George Eilertson – Northland Public Finance & Derek
Olinger City Engineer.
Summary Report
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
1
VII.C 2023 Street Reconstruction Plan
1. Resolution 2023:05 Approving a Street Reconstruction Plan and
Authorizing the Issuance of General Obligation Street Reconstruction
Bonds
Summary Report
Resolution 2023-05 APPROVING_STREET_RECONSTRUCTION_PLAN.DOCX
01.2_Street Reconstruction & Overlay Plan_Final.pdf
01.1_2023 Street Improvements Summary.pdf
VIII. LEGAL
VIII.A Nuisance Property Violation – 1 Langford Avenue Update
Summary Report
VIII.B 2023 Agreement with Luis Tellez - Taco Express
Summary Report
Tellez Limited Use Agreement 2023.doc
IX. FINANCIAL
X. OLD BUSINESS
X.A City Hall Roof Replacement
Summary Report
Est_1501_from_LM_Construction_Co._840.pdf
XI. NEW BUSINESS
XI.A Review Quotes for Payroll Services
Summary Report
Abdo Services Proposal.pdf
ADP Proposal.pdf 3-23.pdf
Paychexx Payroll proposal 3-23.pdf
XI.B On-Sale Liquor License Renewal- Kenyon Country Club
Summary Report
DOC031023.pdf
XI.C Approve Request for Liquor at Depot Park – Savannah Bleess, May 20, 2023
Summary Report
DOC031023-001.pdf
XI.D Update on Finance Director Hiring.
Summary Report
XII. F.Y.I. - Department Updates
XII.A FYI
Summary Report
3-14-23 FYI.pdf
2
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
3
AGENDA ITEM NO. V.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: Minutes
AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS
SUBJECT: Approval of Minutes and Appointments
SUGGESTED ACTION: See attached minutes of February, 2023
ATTACHMENTS:
2-14-23 Minutes.doc
4
Pursuant to due call and notice thereof, a City Council Meeting was duly held in the City Council chambers
at 7:00 p.m. on the 14th day of February 2023. The meeting was called to order by Acting Mayor Ryan.
The following members were present: Council Members Kim Helgeson, Lee Sjolander, and Molly Ryan
Via Zoom: Mayor Doug Henke (unable to vote on motions until later in meeting due to no voice connection)
Absent: Mary Bailey
Also, present: City Administrator Mark Vahlsing, Administrative Assistant Holli Gudknecht, Police Chief
Jeff Sjoblom, Engineer Derek Olinger, City Attorney Scott Riggs, Officer Brian Homeier, Linda Bean
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
None
ADOPT AGENDA
Motion by Helgeson second by Sjolander to approve the agenda.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson - Aye
Motion carried 3-0-0.
CONSENT AGENDA
Motion by Sjolander second by Ryan to approve the Consent Agenda, which includes payment of check
numbers, 74480 through 74577; 4416E through 4471E; 6E through 7E; and temporary pay increase for
Deputy Clerk/Administrative Assistant.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson - Aye
Motion carried 3-0-0.
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
Motion by Helgeson second by Sjolander to adopt Resolution 2023-04.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson - Aye
Motion carried 3-0-0.
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
Motion by Sjolander second by Ryan to approve Resolution 2023-03 establishing procedures relating to
compliance with reimbursement bond regulations under the internal revenue code.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson - Aye
Motion carried 3-0-0.
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.
Motion by Helgeson second by Sjolander to adopt Policy #234 for Kenyon Police Department Body Worn
Cameras.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson – Aye, Henke - Aye
Motion carried 4-0-0.
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.
Motion by Sjolander second by Helgeson to approve a rate increase of $100 per month for Jacobson Law
effective January 1, 2023.
Roll Call Vote: Sjolander – Aye, Ryan – Aye, Helgeson – Aye, Henke - Aye
Motion carried 4-0-0.
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
Motion by Helgeson second by Henke to adjourn the meeting at 7:45 p.m.
Roll Call Vote: Henke- Aye, Sjolander – Aye, Ryan – Aye, Helgeson - Aye
Motion carried 4-0-0.
Holli Gudknecht, Administrative Assistant Molly Ryan, Acting Mayor
7
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
8
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
12
Kenyon Prosecution
Report - 2022
MARCH 1, 2023
Jacobsen Law Firm, P.A.
Authored by: David W. Jacobsen
13
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
17
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
18
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
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Page: 2
20
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.
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22
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).
23
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
27
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
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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
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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
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Review of City of Kenyon’s Existing Debt
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5 31
Review of City of Kenyon’s Existing Debt
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Review of City of Kenyon’s Existing Debt
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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
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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)
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Current Infrastructure CIP
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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
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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
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Water Fund
*O&M expenses assume 3% increase annually
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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.
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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.
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Sewer Fund
RED BOX INDICATES
APPROX SEWER INCREASE
*O&M costs assume 3% increase annually
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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.
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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.
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Stormwater Fund
*O&M costs assume 3% increase annually
19 45
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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
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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.
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2450
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2551
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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%
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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%
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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%
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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
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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
58
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
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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
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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
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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
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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
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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
64
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:
65
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
66
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
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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
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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
70
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
71
AGENDA ITEM NO. XI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Review Quotes for Payroll Services
SUGGESTED ACTION: Staff has been discussing options for payroll processing for some
time. With the finance position opening up it is a good time to look
at options for contracting payroll processing. Utilizing a payroll
service would take some of the load off of the new Finance Director.
Both Kathy Flikke and Sue Dodds feel that it would be a good idea
for the city use a payroll service. I order to cover the costs the hours
that the city pays toward the PD/City Administrative position could
be reduced. The personnel committee has reviewed the concept and
is supportive. Further information is contained in the attached
quotes.
After checking with several companies that do payroll processing,
the city has received three quotes.
Vendor Annual Cost One Time Cost
Paychex Inc, $7655
Abdo $20,820 $9500
ADP $5032
The Paychex and ADP quotes would include timekeeping software.
For Abdo there would be a one-time cost of $9500 for the
timekeeping software. This Software would take the place of
timecards.
*Abdo does payroll Le Sueur, Independence, Nerstrand, Vermillion,
and Claremont, and Northfield Fire. In order
MOTION NEEDED
ATTACHMENTS:
Abdo Services Proposal.pdf
72
ADP Proposal.pdf 3-23.pdf
Paychexx Payroll proposal 3-23.pdf
73
SERVICE PROPOSAL FOR
Proposed by
City of Kenyon
Leah Davis, CPA 709 Second Street, Kenyon, Minnesota 55946
Partner | Abdo
leah.davis@abdosolutions.com
P 507.524.2347
February 22, 2023 abdosolutions.com | Mankato, MN - Edina, MN - Scottsdale, AZ
74
Mark Vahlsing, City Administrator
City of Kenyon
709 Second Street
Kenyon, Minnesota 55946
February 22, 2023
Dear Mark,
Thank you for the opportunity to submit this proposal to City of Kenyon for full-service payroll processing and
support. Based on our past experience with government clients of comparable size and complexity, we believe the
following scope of services and company investment will provide your organization with outstanding, reliable, and
comprehensive payroll processing, filing and support.
We understand that the City of Kenyon is currently seeking support for payroll processing based on your current
needs and values:
• You have had transition and turnover in your HR/payroll staff and are exploring alternative options that
improve processing continuity, consistency, and compliance for your essential payroll functions.
• It is appealing to your organization to ensure that you’re never left with a staff vacancy in the payroll role
• Your organization values HR/payroll automation and is open to leveraging technology to improve payroll
efficiency, information management, and the overall employee experience.
We are confident that we can provide you with the high-level financial reporting and compliance with all applicable
local, state and federal requirements to allow you to focus on critical City operations while we execute your payroll
strategies, manage your payroll deadlines, and support your employees. Our proposal is based on the needs of your
City and the experiences we have had working with other local government clients of your size.
Unless terminated in accordance with the terms of the Agreement, the term of our contract shall be for twelve (12)
months from the date of the Agreement.
Investment by the Organization for services to be provided by Abdo is indicated in the Value section of this proposal
as well as the Agreement in Appendix A.
Abdo would like to thank City of Kenyon for this opportunity, and we look forward to exceeding your expectations and
developing a long-term partnership.
Sincerely,
Abdo
Leah Davis, CPA
Partner | Abdo
1 75
LIGHTING THE PATH FORWARD
The Abdo Difference
At Abdo, we believe in the importance of relationships. This core value is the foundation of our approach to delivering
the best experience and outcomes for our clients. It’s inherent in our people and the way we work. We know that for our
clients to be successful, it takes more than having experience and credentials – we take the time to listen to their
unique motivations, goals, and challenges. We truly care about their journey and where their path leads.
Our process is built around a deep commitment to every client:
We light the path forward so you can proceed with confidence.
We're the partner you can trust to help you along the way.
We're the catalyst who empowers you to reach your goals.
2 76
Your Team
Based on our ability to provide the requested services, our shared core values, and
an understanding of your unique needs, we firmly believe we would be a great
partner for the City of Kenyon. We have the resources, knowledge, people and
services to light the path forward for your city.
We have assembled a team with relevant experience who are committed to working
with you to ensure success. Payroll Team Leaders are briefly profiled below, and full
biographies can be found in Appendix C.
KEAH DAVIS, CPA
Partner
leah.davis@abdosolutions.com
P 507.524.2347
ANN PETROWIAK, CPA
Senior Manager
ann.petrowiak@abdosolutions.com
P 507.524.2349
3 77
Payroll Experience
Our talented payroll team members recognize that our primary focus must always be providing outstanding service to
your most valuable resource – your people. Our team is comprised of 12 HR and payroll industry experts with over 75
combined years of service, including two Certified Public Accountants. Beyond having a deep knowledge of payroll tax,
compliance, and processes, our team also understands that payroll is a critical piece of a much larger strategic objective
- attracting and retaining the workforce necessary to drive your city's goals.
As your payroll partner, we bring the experience and expertise to offer payroll support that reduces stress and ensures
deadlines and compliance requirements are met. We provide proactive and value-added suggestions for improvement to
our valued clients and will do the same for you and your team. We’re not just gathering data and completing a
transaction, we’re committed service-providers who understand the payroll process and its impact on your city. Your
people are your biggest asset and there will always be someone to help you each time you call.
In addition to payroll support, Abdo is a full-service firm with over 160 experienced experts in areas ranging from
accounting, audit, taxation, human resources, business valuation, and estate planning. Our team is here to help bring
your city to the next level of success.
PROCESS
From the start, you will experience the difference working with Abdo, as we begin our relationships by getting to know
your city. We focus on learning your unique payroll timing, policies, processes, challenges, and opportunities. During this
phase, we transition your city to an integrated software platform to streamline confidential payroll communication and
information sharing, while allowing us to stay connected to your management team and employees. Through this
process, we will uncover opportunities to improve compliance, employee experience, and payroll process efficiencies for
your team. Upon completion of set-up, we provide the necessary process and software training to you and your staff.
With our experience and commitment to quality service, you can be confident that we're the right payroll partner for your
city. Let us help you take the stress and anxiety out of payroll to allow you to focus on what you do best.
OUR PAYROLL EXPERTS PROVIDE:
• Integrated payroll software options that keep you • Employee-friendly self-service access and
connected with management and employees information updating
• Guaranteed on-time payroll processing and • Integrated time and PTO tracking, approval,
employee pay delivery and scheduling
• Proactive and expert payroll compliance support • No-hassle accounting entries and general
to keep you out of trouble ledger integration
• Worry-free tax and regulatory reporting and filing • Integrated software support and utilization
with anytime access to management and labor • Specialized labor cost analysis and reporting
reports
• Multi-department labor cost allocation
4 78
Technology
We believe technology should enhance our service offerings, making our work less intrusive, our time with you more
productive and everyone’s data more secure. The use of technology in our HR and payroll services enables us to
streamline our processes and helps to automate certain functions of our work so we are able to spend more time
analyzing our results and working directly with you.
Through the outbreak of COVID-19, our team has been able to seamlessly move to a completely remote work
environment with no loss of productivity, cooperation, or communication. Since March 17, 2020, our staff has been
successfully conducting remote HR and payroll services using the latest video conferencing and secure file sharing
technology. Through Zoom, Microsoft Teams, or whatever technology your city may use, our team will continue to
work through normal procedures, including regular meetings with you during the engagement to ensure effective
collaboration with your team.
We take the security of our client's data - and our own - very seriously. A number of systems are in place to ensure the
safety of your city’s data. We operate on a remote distributed infrastructure leveraging Microsoft’s Cloud Platform
Azure. This not only allows our staff to securely work from any computer, anywhere, any time, but also provides large-
scale, cutting-edge technology and security for your data. Your data is housed in secure data centers that reside
exclusively in the U.S. and not on laptops or local servers which could be stolen or misplaced. We continually provide
security awareness training to our staff members to ensure they are good digital stewards of your data. In addition to
this, we also consult bi annually with 3rd party security experts to conduct risk assessments and conduct annual
penetration tests.
IT ALSO MEANS:
All firm staff use dual All data is saved on All data is backed up All incoming emails,
authentication to ensure redundant servers and continually which means attachments, and
that every login to our data centers so if one we always have an extra embedded links are
remote environment is server fails, another copy for safe-keeping. scanned for viruses
secure and authorized. immediately takes over prior to landing in our
with no data lost. inbox, which allows us
to operate with more
Our cloud platform, Azure, is globally trusted by companies and governments and protection from phishing
has numerous security compliance standard they adhere to. Reports of these can emails, malware attacks,
be provided as requested. and other digital threats.
5 79
Value Overview
SERVICE GUARANTEE
Our work is guaranteed to the complete satisfaction of the client. If you are not
completely satisfied with the services performed by Abdo, we will, at your discretion,
either refund the price or accept a portion of said price that reflects the level of value
received. Upon payment of each of your scheduled payments, we will judge you have
been satisfied.
PRICE GUARANTEE
Furthermore, if you ever receive an invoice without first authorizing the service,
payment terms, and price, you are not obligated to pay for the unauthorized service.
Please understand, however, that the price we have quoted considers and relies upon
the following:
• The information you agree to provide is on time and complete to the degree
indicated in our agreement.
• Your key management, finance, or human resources team members don’t
change during our service period.
• No undisclosed or newly arising complexities, claims, or significant
transactions, occur that impact our service period. This includes emergence of
yet unspecified revisions to any prior period work that would need to occur
before we can perform our agreed services.
• No new tax, regulatory, or other reporting requirements are introduced
between now and the end of our service period.
A full scope of services, including estimated hourly charges, is listed on the following
page. These pages include both ADP RUN and Paylocity breakdowns.
ADDITIONAL SERVICES
Should you request services in addition to the Contracted Services, we will provide you
with proposed fees for the services to be provided. You shall be required to sign a
written or electronic confirmation of your request for additional services prior to
implementation.
66 80
Value Comparison
FULL-SERVICE PAYROLL SUPPORT ABDO SERVICE FEES
$1,350/MONTH *
$16,200/ANNUALLY
$385/Month
Estimated Paylocity Software Fees $4,620/Annually
(Includes Web Timekeeping)
(in addition to Abdo Service Fees)
One-time Payroll Setup/Implementation fee $9,500
(Includes Web Timekeeping Setup)
Guaranteed on-time payroll processing and Bi-weekly processing for 35 employees
employee delivery, including direct deposit
(annual average including seasonal/
Counci/Fire)
Enhanced HR Features Optional - Additional Software Fees
may apply
Post-Payroll submission of employee Included
garnishments, PERA/retirement, and HSA
contributions and matches
Proactive and expert payroll compliance support Included
to keep you out of trouble
Worry-Free tax and regulatory reporting with Included
anytime access to management and labor
reports
Employee benefit updates and changes related to Included
payroll earnings and deductions
On-call access to Abdo experts Responsive access for management or
supervisor questions
No hassle accounting entries Simple reporting or integration
customized to your general journal
Integrated software support & utilization Basic support for payroll system
Employee friendly self-service portal access and Included
information updating
*Items that may affect your contracted monthly amount
• Changes in employee headcount
• Additional state/jurisdiction filing requirements
• New child support submissions
• New 401(k)/IRA/PERA/HSA/AFLAC submissions
• New garnishments/levy calculation and submissions
7 81
ADDITIONAL SERVICES BILLED AS NEEDED
Employee self-service login support Billed hourly
Changes to company policies or payroll set-up that require Billed hourly
system reconfiguration (i.e. PTO accrual changes, general
ledger set-up, etc.)
W2 Reprints Billed hourly + software fees
(if any)
Special / historical reporting or analysis Billed hourly
Work comp audit reporting Billed hourly
Verification of employment reporting Billed hourly
1095c / 1094c reporting Billed hourly + software fees
(if any)
Special/Additional payroll Runs and Corrections (due to Billed hourly + software fees
client error or changes) (if any)
Client payroll bank account changes Billed hourly
Payroll Filing Amendments (due to client errors or changes) Billed hourly + software fees
(if any)
Expedited Processing Fee Due to Late Submission of $95.00 per applicable check
Payroll Information (Payroll information is due by 12:00 date
p.m. CST, four business days prior to your check date)
88 82
What Our
Clients Say
CLIENT REFERENCES
One of the things we enjoy most about our work is
developing long-term relationships with our clients
and watching their city thrive as we help them to
evolve and grow. Our clients listed below serve as a
sample of references of those we partner with for
full-service payroll support. Additional references are
available upon request.
CITY OF LE SUEUR CITY OF
Joe Roby INDEPENDENCE
City Administrator Mark Kaltsas
P 507.593.8315 City Administrator
P 763.479.0527
9 83
Why Partner
with Abdo
LIGHTING THE PATH FORWARD
In a world of ever-changing complexity, people need caring, empathetic and
highly skilled professionals they can depend on to provide the right advice and
solutions for them. Our clients seek growth and success, but also want security
and confidence. For nearly 60 years, Abdo has provided insights for our clients to
help them achieve their goals.
That same innovative spirit is also what has earned us the title of being one of
the top accounting firms in the Midwest. Abdo is a better firm today because of
the efforts we made to support a culture driven by our core values of growth,
relationships, and teamwork.
With this foundation in place, we have successfully helped our clients identify
and break through their own growth barriers. Every challenge they face is an
opportunity for us to listen, understand and empower them with solutions and a
plan to achieve their goals. It’s fulfilling to serve as the catalyst that helps them
overcome obstacles that block their progress.
When it comes to our working relationships, we are partners. We’re confidants.
We’re the catalyst that sparks true business growth, providing guidance through
every challenge and opportunity along the way.
ABOUT ABDO
Abdo is a full-service accounting and consulting firm that delivers customized
strategies and innovative solutions to help businesses, governments and
nonprofits succeed. With more than 180 professionals and nearly six decades of
experience, Abdo is ranked as one of the top accounting firms in the Midwest. It
is a licensed CPA firm with offices located in Minneapolis and Mankato,
Minnesota, and Scottsdale, AZ. Abdo’s commitment to its clients is to gain in-
depth knowledge of their unique challenges, opportunities, and needs. Through
this consultative approach, Abdo partners with organization leaders to light the
path forward to confidently reach their goals.
“Listening to our clients’ needs, understanding their challenges,
and adjusting how we work together is key to our partnership with
the people we serve.”
-- Steve McDonald, CPA | Managing Partner
10 84
At Abdo, we recognize the need for continuous
improvement in diversity, equity and inclusion initiatives
61%
throughout our firm and the accounting industry at
large. We believe that when we understand each other
better, we grow better together.
of our employees
are female
Over the past year, we have increased our efforts to
promote diversity, equity, and inclusion within our firm
and community through implicit/unconscious bias, anti-
harassment, and interview training. Our Diversity, Equity,
and Inclusion Committee looks continues to implement
51%
new ideas, projects, and initiatives to move our firm
forward through learning, understanding, and improving
on these issues.
of our management
level employees are We continue to increase our number of women at the
female highest leadership level. We strive for continued growth
in our ability to attract and retain women and people of
color within our firm and we are working towards
greater equity and diversity for all within our industry.
23% In order to build a more inclusive work environment, the
firm has implemented diversity and inclusion education
through partnering with expert speakers and trainers.
of our interns this year Please let us know if you have any ideas on how we can
were people of color improve diversity, equity, and inclusion at Abdo.
11 85
Value Added Services
When you partner with Abdo, you get access to our entire catalog of services. Below is
a selection of the services that we believe could be of great value to your city. If you
have need of these services, please reach out to us so we can help! Our additional
service offerings can be found at www.abdosolutions.com.
HR & PAYROLL SERVICES
We help employers better support their most valuable resource... their people.
Having clear and consistent HR practices that best suit the individuality of your city is
key, even more so in today’s tight employment environment. And because the right
policies are just as important, we lend our HR expertise to help you strategically plan
for your future.
We help cities with:
• Employee management and development
• Regulatory compliance
• Benefits analysis and administration, including the Affordable Care Act (ACA)
and workers’ compensation
• HR/Payroll software implementation and management
• Advisory services such as specialized labor cost analysis, compensation
studies, and HR process development and implementation
LONG TERM PLANNING
How will you fund your city’s Capital Improvement Plan? Part of establishing a capital
improvement program is determining how to pay for it. Will you issue debt? Raise
property taxes? Reorganize your capital budget? A long-term plan can help you answer
these questions and more. Depending on your needs, our approach to long term
planning may include:
• Preparing projections to gauge future revenue streams
• Conducting a debt management study
• Reviewing reserve and fund balance policies
• Implementing plans to achieve pay-as-you-go financing
THIRD PARTY AUDIT PREP & RESPONSE
Need help getting ready for your audit? We can help. We are experienced in helping
clients get ready for their audit, whether a financial statement audit, IRS audit, or other
regulatory audit.
12
12 86
Appendix A
AGREEMENT FOR SERVICES
13 87
Agreement for Services
THIS AGREEMENT, is made and entered into on February 22, 2023, by and between City of Kenyon (hereinafter
referred to as the “Client”), and Abdo LLP (hereinafter referred to as “Abdo” or the “Contractor”).
Articles of Agreement & Recitals
WHEREAS, the Client is authorized and empowered to secure from time to time certain professional services
through contracts with qualified consultants; and
WHEREAS, the Contractor understands and agrees that:
The Contractor will act as an Independent Contractor in the performance of all duties under this Agreement.
Accordingly, the Contractor shall be responsible for payment of all taxes, including federal, state and local taxes and
professional/business license fees related to its own operations and arising out of the Contractor’s activities;
The Contractor shall have no authority to bind the Client for the performance of any services or to obligate the
Client. The Contractor is not an agent, servant, or employee of the Client and shall not make any such
representations or hold itself out as such;
The Contractor shall be the exclusive outsourced payroll resource service provider for the Client during the term of
this Agreement;
The Contractor shall perform all professional services in a competent and professional manner, acting in the best
interests of the Client at all times.
The Contractor may make recommendations and/or perform services on behalf of the Client but the Client is
responsible for all final management decisions and for setting and administering any organizational policies,
procedures, or other guidance that result in the services being performed. Further, with respect to the payroll
services that are being provided, the Client is responsible for all originating documents (i.e. salary or hourly wage
amounts, hours worked, benefits, premium pay policies, etc.) that affect payroll processing, and the Client will
review and approve the payroll before or after its processed. The Contractor will not hold or have access to any
Client funds as part of the services being provided.
If applicable, the Client will approve all general ledger setup and mapping related to payroll journal entries provided
or initiated by the Contractor. The Contractor will be responsible for notifying the Contractor of any changes to the
general ledger or journal entry and all changes will be approved by the Client.
The Contractor shall not accrue any continuing contract rights for the services performed under this contract.
NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, it is agreed as follow
ARTICLE I
INCORPORATION OF RECITAL
The recitals and agreement set forth above are hereby incorporated into this Agreement.
ARTICLE II
LIABILITY INSURANCE
Section 1 Liability Insurance: The Contractor shall obtain professional liability insurance, at its expense with liability
insurance coverage minimums in the amount of $2,000,000, which Contractor must secure and maintain during the
term of this Agreement. Contractor will provide the Client with proof of liability insurance coverage under this
Agreement in writing upon request by the Client.
14 88
Agreement for Services Continued
ARTICLE III
DURATION OF THE AGREEMENT
Section 1 Duration: This Agreement shall commence upon date of execution by all parties and will remain in effect for
UP TO 90 DAYS, or upon the completion of the consulting engagement, whichever is longer, unless earlier terminated
as provided in Subsections 2 and 3.
Section 2 Client’s Termination Rights: The Client may terminate this Agreement upon sixty (60) days written notice in
the event the Client determines in its sole discretion that it is not in the Client’s best interest to continue using
Contractor’s services. The Client may terminate upon ten (10) days written notice of the Contractor fails to perform its
obligations under this Agreement.
Section 3 Contractor’s Termination Rights: Contractor may terminate this Agreement upon thirty (30) days written
notice to the Client in the event the Client does not pay Contractor compensation as required under Article 5, Section 9
within fifteen (15) days after invoice is received by the Client. In the event of non-payment within thirty (30) days,
Contractor shall give the Client an opportunity to cure the default by giving a notice of such non-payment and an
additional five (5) days after the Client’s receipt of the notice to remit such payment, prior to giving a notice of
termination. Contractor can also terminate the Agreement with sixty (60) days written notice.
ARTICLE IV
RENEWAL OF THE AGREEMENT
Section 1 Renewal Period: Not less than ninety (90) days prior to the expiration of the term of this Agreement, the
Client may provide written notice of its intent to renew this Agreement for an additional term of up to three years upon
terms and conditions agreed upon by both parties to the Agreement. If no such renewal agreement is executed by the
parties, the Agreement terminates without further action of either party on the one year anniversary date, or the
completion of the consulting engagement, whichever is longer.
ARTICLE V
GENERAL
Section 1 Authorized Client Agent: The Client’s authorized agent for the purpose of administration of this Agreement
is the Client Operations Manager. Said agent shall have final authority for approval and acceptance of the Contractor’s
services performed under this Agreement and shall further have responsibility for administration of the terms and
conditions of this Agreement. All notices under this Agreement shall be sent to the person and address indicated
below on the signature lines.
Section 2 Amendments: No amendments or variations of the terms and conditions of this Agreement shall be valid
unless in writing and signed by the parties.
Section 3 Assignability: The Contractor’s rights and obligations under this Agreement are not assignable or
transferable, but the Client’s rights and obligations may be assigned to any successor entity upon ten (10) days notice.
15 89
Agreement for Services Continued
ARTICLE V - CONTINUED
GENERAL (CONTINUED)
Section 4 Data: Any data or materials, including, but not limited to, reports, studies, photographs or any and all other
documents prepared by the Contractor or its outside consultants in the performance of the Contractor's obligations
under this Agreement shall be the exclusive property of the Client, and any such data and materials shall be remitted to
the Client by the Contractor upon completion, expiration, or termination of this Agreement conditioned upon Client’s
payment of all fees and expenses due to Contractor pursuant to this Agreement. Further, any such data and materials
shall be treated and maintained by the Contractor and its outside consultants in accordance with applicable federal,
state and local laws. Further, Contractor will have access to data collected or maintained by the Client to the extent
necessary to perform Contractor's obligations under this Agreement. Contractor agrees to maintain all data obtained
from the Client in the same manner as the Client is required under the Minnesota Government Data Practices Act,
Minnesota Statutes Chapter 13 or other applicable law (hereinafter referred to as the "Act"). Contractor will not release
or disclose the contents of data classified as not public to any person except at the written direction of the Client. Upon
receipt of a request to obtain and/or review data as defined in the Act, Contractor will immediately notify the Client. The
Client shall provide written direction to Contractor regarding the request within a reasonable time, not to exceed fifteen
(15) days. The Client agrees to indemnify, hold harmless and defend Contractor for any liability, expense, cost,
damages, claim, and action, including attorneys' fees, arising out of or related to Contractor's complying with the
Client’s direction. Upon termination and/or completion of this Agreement, Contractor agrees to return all data to the
Client, as requested by the Client.
Section 5 Entire Agreement: This Agreement is the entire agreement between the Client and the Contractor and it
supersedes all prior written or oral agreements. There are no other covenants, promises, undertakings, or
understandings outside of this Agreement other than those specifically set forth. Any term, condition, prior course of
dealing, course of performance, usage of trade, understanding, or agreement purporting to modify, vary, supplement, or
explain any provision of this Agreement is null and void and of no effect unless in writing and signed by representatives
of both parties authorized to amend this Agreement.
Section 6 Severability: All terms and covenants contained in this Agreement are severable. In the event any provision
of this Agreement shall be held invalid by any court of competent jurisdiction, this Agreement shall be interpreted as if
such invalid terms or covenants were not contained herein and such holding shall not invalidate or render
unenforceable any other provision hereof.
Section 7 Contractor Fiscal Decision Waiver: Contractor is responsible for providing the Client with timely and accurate
human resource recommendations and information that allows the Client the ability to make final human resource
decisions. Contractor will provide final human resource recommendations, but Contractor is not responsible for the
final decisions made regarding human resource matters and Client shall indemnify and hold Contractor harmless from
the same.
16 90
Agreement for Services Continued
ARTICLE V - CONTINUED
GENERAL (CONTINUED)
Section 8 Client Employment of Contractor’s Employees: The Client acknowledges and agrees that Contractor’s
workforce, including employees assigned to staff the engagement provided for under this Agreement, constitutes an
important and vital aspect of Contractor’s business. In recognition of the foregoing and the harm that Contractor will
suffer in the event of the loss of one or more of its employees, the Client agrees that during the Term of this Agreement
and for a period of six (6) months following the termination of this Agreement for any reason (the “Restrictive Time
Period”) the Client shall not, directly or indirectly, on behalf of itself or any person, firm, corporation, association or other
entity, (a) recruit, solicit, or assist anyone else in the recruitment or solicitation of, any of Contractor’s employees to
terminate their employment with Contractor and to become employed by or otherwise engaged with or by the Client in
any capacity independent of Contractor; (b) hire or engage any Contractor employee; or (c) otherwise encourage or
induce any of Contractor’s employees to terminate their employment with Contractor.Notwithstanding the foregoing,
Contractor may (but shall not be obligated to) consent to the Client’s recruitment, solicitation, employment or other
engagement of a Contractor employee otherwise prohibited by this paragraph provided that (a) the Client discloses to
Contractor in writing its desire to recruit, solicit, employ or otherwise engage the Contractor employee independent of
Contractor before engaging with the Contractor employee regarding any such potential relationship; (b) the Client
agrees to pay Contractor a Restrictive Covenant Exception Fee (as hereafter defined) in the event the Contractor
employee becomes employed by or otherwise engaged with the Client independent of Contractor; and (c) Contractor
provides written consent to the Client to engage with the Contractor employee regarding any such relationship. For
purposes of this Agreement, the Restrictive Covenant Exception Fee shall be the greater of: (i) 200% of the annual
contracted cost of Contractor’s services under this Agreement in addition to the annual contracted cost paid or due
Contractor hereunder; or (ii) 200% of the fees paid or due Contractor for services provided under this Agreement during
the twelve (12) month period immediately prior to the termination of this Agreement or, in the event the Agreement has
not been terminated, during the twelve (12) month period immediately prior to Contractor’s provision of written consent
to the Client to engage in the recruitment, solicitation, employment or other engagement of a Contractor employee
otherwise prohibited by this paragraph.
Section 9 Compensation: The parties agree that the Contractor shall be paid compensation for the services provided
hereunder, based on the fees indicated in the proposed client investment schedule and under the attached scope of
services. Additional fees will not be incurred without prior approval of the Client.
Initial invoice for anticipated first month fees will be sent within 10 days of the execution of this agreement. Monthly
installment fees will be invoiced throughout the remainder of this contract. If the contract is for an hourly fee basis,
invoices will be sent monthly.
Section 10 Additional Services: Should the Client request additional services in addition to the Contracted Services, the
Contractor will provide the Client with proposed fees for the additional services to be provided. The Client shall provide
a written or electronic confirmation prior to the proposed services implementation.
Section 11 Outside Contractors: It shall be the responsibility of Contractor to compensate any other outside
consultants retained or hired by Contractor to fulfill its obligations under this Agreement and shall be responsible for
their work and Contractor, by using outside contractors, shall not be relieved of its obligations under this Agreement.
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Agreement for Services Continued
ARTICLE V - CONTINUED
LIMITATION OF LIABILITY
Section 1 Disputes: If any dispute arises between Abdo and the Client under this Agreement, the dispute shall first be
submitted to mediation. The costs of mediation shall be shared equally by the parties. All disputes between Abdo and
the Client arising out of this Agreement which cannot be settled directly or through mediation shall be resolved through
binding arbitration in Mankato, Minnesota in accordance with the rules for resolution of commercial disputes then in
effect of the American Arbitration Association, and judgment upon the award may be entered in any court having
jurisdiction thereof. It is further agreed that the arbitrator may, in its sole discretion, award attorneys’ fees and costs to
the prevailing party.
Section 2 Limitation of Liability: Abdo’s entire liability, and the Client’s exclusive remedy, for Abdo’s performance or
non-performance under this Agreement shall be for Abdo to reimburse the Client the total charges for related services
provided during the previous twelve months. ABDO WILL NOT, UNDER ANY CIRCUMSTANCES, BE LIABLE FOR ANY
INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR FOR LOST PROFITS, SAVINGS OR REVENUES
WHICH THE CLIENT MAY INCUR AS A RESULT OF ABDO’S FAILURE TO PERFORM ANY TERM OR CONDITION OF THIS
AGREEMENT (EVEN IF IT HAS BEEN SPECIFICALLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES). The Client
shall indemnify Abdo against, and hold each of them harmless from, any and all liabilities, claims, costs, expenses and
damages of any nature (including reasonable attorney’s fees and costs) in any way arising out of or relating to disputes
or legal actions with Client’s employees or any third parties concerning the provision of the services under this
Agreement. The Client’s obligations under the preceding sentence shall survive termination of this Agreement.
18 92
Appendix A
AGREEMENT FOR THE PROVISION OF
PROFESSIONAL SERVICES
19 93
Agreement for the Provision
of Professional Services
WHEREFORE, this Agreement was entered into on the date set forth below and the undersigned, by execution hereof,
represent that they are authorized to enter into this Agreement on behalf of the respective parties and state that this
Agreement has been read by them and that the undersigned understand and fully agree to each, all and every provision
hereof, and hereby, acknowledge receipt of a copy hereof.
City of Kenyon
709 Second Street
Kenyon, Minnesota 55946
SIGNATURE
Signee 1
Abdo, LLP
100 Warren Street, Suite 600
Mankato, Minnesota 56001
Leah Davis, CPA
Partner | Abdo
February 22, 2023
20 94
Appendix C
TEAM BIOS
21 95
TEAM MEMBER BIO
Leah Davis
CPA
Parter, HR and Payroll Services
leah.davis@abdosolutions.com
Direct Line 507.524.2347
Leah joined the firm as Partner of the Firm's HR and Payroll Service segment. She spends her time helping
employers find creative ways to overcome their HR and payroll challenges. As an active CPA and after owning and
operating an outsourced HR and payroll consulting business for nearly a decade, Leah has worked with employers
across all industries and has several years of experience in public accounting, focusing on business tax and
financial institutions. This variety of experiences equip Leah with a unique perspective on the complex HR, financial,
and strategic planning issues that employers face every day.
EDUCATION
• Bachelor of Science in Accounting and Business Administration, Minnesota State University, Mankato
• Continuing professional education
PROFESSIONAL MEMBERSHIPS
• American Institute of Certified Public Accountants
Minnesota Society of Certified Public Accountants
Society for Human Resource Management (SHRM)
QUALIFICATIONS
• Human Resources Management, Consulting, and Compliance, including a focus on leveraging technology to
maximize employee experience and streamline administrative HR workflows
• HR and Leadership Team Coaching and Training, focused on building technical and practical skills to
improve overall performance and operational effectiveness
• Employee Benefit Plan Administration and Analysis, including Affordable Care Act (ACA) compliance,
benefit workflow optimization, and evaluation of benefit plan design options to evaluate costs and maximize
employee value recognition
• Employee Incentive and Compensation Plan Development, including position classification and
compensation plan design and total compensation analysis
• Complex State and Federal employment tax and regulatory compliance consulting, including wage and hour
analysis and tax agency amendments and negotiations
abdosolutions.com | Edina, MN - Mankato, MN - Scottsdale, AZ
22 96
TEAM MEMBER BIO
Ann Petrowiak
CPA
Senior Manager
ann.petrowiak@abdosolutions.com
Direct Line 507.524.2349
Ann joined the Firm in 2016 as a Payroll Manager. She brings over 10 years of experience in payroll and accounting
services working with clients of various sizes and industries, including business, city government, agriculture, and
non-profit.
EDUCATION
• Bachelor of Arts in Accounting, Saint Mary’s University
• Continuing professional education
PROFESSIONAL MEMBERSHIPS
• American Institute of Certified Public Accountants
Minnesota Society of Certified Public Accountants
American Payroll Association
QUALIFICATIONS
• Experience in payroll processing, reporting and tax filing, timeclock and payroll database implementation,
maintenance and training, departmental labor allocations and costing/ledger reporting, affordable care act
reporting, benefit administration, and accounting
• Experience in payroll process assessments to help leaders leverage payroll systems and evaluate efficient
of current processes
• Works extensively with ADP HR/Payroll system, Paylocity HR/Payroll system, and multiple other payroll,
timeclock and accounting systems
abdosolutions.com | Edina, MN - Mankato, MN - Scottsdale, AZ
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RUN POWERED BY ADP®
Proposal
For City of Kenyon
ADP PROPRIETARY AND CONFIDENTIAL 98
Solution Detail for City of Kenyon*:
Employees 30
Payroll Frequency Bi-Weekly
Start Date 03-16-2023
Payroll HR
• Payroll Processing • State and Federal Resources
• Tax Filing • HR Checkups
• Electronic Reports • Tip of the Week
• Employee Access • Quarterly HR Newsletter
• ADP Mobile Payroll • HR Dictionary
• General Ledger Interface • New Hire Paperwork
• Pay Option: FSDD Only • Zip Recruiter (includes 1 job slot, 50
• Delivery resume views)
• New Hire Reporting • Background Checks (5 per year)
• Pay Options • Employment Verification
• FSDD • Lifemart
• TotalPay • Small Business Marketing Toolkit
• Check Stuffing/Signing
• Poster Compliance Update Service
• General Ledger Interface
• Garnishment Payment Service
• State Unemployment Service
Processing Investment
Product Billing Frequency Per Processing Fee *
ADP Enhanced Payroll Bi-Weekly $148.80 **
Timekeeping Software Monthly $75.00
**In the event of additional jurisdictions, there will be a $8.95 charge per month/jurisdiction.
Annual W2 Fees
Y/E Information Stmt, W2 30 W2's Annually $249.95
Base price ($54.95) + Price per W2 ($6.50)
W-2 Delivery Annually $13.95
Promotions
6701 - 5 Mnt Free - 4, 5, 6 - IBP only (5+ pays)
6701 - 5 Mnt Free - 4, 5, 6 - IBP only (5+ pays)
6702 - 5 Mnt Free - 10, 11 - IBP only (5+ pays)$$6702 - 5 Mnt Free - 10, 11 - IBP only (5+
pays)
Total Savings with Promos: $1612.00 (First Year)
*This is a Proposal only. Fees are estimates and are subject to change based on variation in payroll details, frequency, features, number of
employees, etc. Additional fees may be incurred if other services are purchased or for additional tax filings including, but not limited to,
additional states or ‘applied for’ statuses. Please consult with your sales representative for further details. The information contained in this
proposal is confidential and proprietary and should not be shared with anyone outside your company.
Total Annual Cost $5032.70
ADP PROPRIETARY AND CONFIDENTIAL
ADP, the ADP Logo and RUN Powered by ADP are registered trademarks, and ADP A more human resource. is a service mark, of ADP, Inc. Copyright © 2016 ADP, Inc. ALL RIGHTS RESERVED.
99
RUN Powered by ADP®
Enhanced Payroll
Enhanced Payroll delivers a comprehensive set of easy-to-use payroll tools, all backed
by ADP’s small business expertise.
With Enhanced Payroll, you can:
Run Payroll Calculate, Deduct
the way you want – online, and Pay Taxes
via our mobile app or by phone automatically
Get Answers 24/7 Pay Your People
from experienced payroll the way they want – paper
professionals by online checks or direct deposit
chat or over the phone
Plus, benefit from these enhanced features:
+
• View, export or print detailed reports • Launch a Google Ads campaign in minutes.
online, instantly Reach more customers across Google to
help grow your business.
• Integrate our solutions with your POS
systems and/or accounting programs • You and your employees get discounts on
such as Intuit®, Wave, Xero™ and more brand-name products and daily essentials
• Automatically receive updated labor • Receive up to 5 single-county criminal
law posters to maintain compliance background checks per year
with posting regulations • Post jobs to over 100 of the web’s leading
• Benefit from state unemployment job boards with ZipRecruiter®. 80% of jobs
insurance (SUI) management posted receive a qualified candidate within
the first day*
• Provide employees with easy access
to pay history and up to three years of • With direct deposit, pay is deposited in
W-2s/1099s each employee’s account, or employees
can choose to have funds deposited to a
• Access HR tools and best practices to
Wisely® Direct debit card**
help you put HR strategies in place
*ZipRecruiter® 2021
**Wisely Direct is a prepaid account offered directly to consumers by ADP. It can be used to receive direct deposits as well as income from other sources.
ADP, the ADP logo, RUN Powered by ADP, Wisely, and Always Designing for People are trademarks of ADP, Inc. and its affiliates. ZipRecruiter is a
registered trademark of ZipRecruiter, Inc. All other marks are the property of their respective owners. Copyright © 2021 ADP, Inc. All rights reserved.
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Proposal for Services
Prepared for:
CITY OF KENYON
MARK VAHLSING
Kenyon, MN 55946
mvahlsing@cityofkenyon.com
Prepared by:
Nicole Lane
Mid-Market HCM Consultant
nlane@paychex.com
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MISSING PREPARED BY: SR State City Zip Spacer
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Proposal Overview
On behalf of Paychex, I’d like to thank you for the opportunity to discuss your organizational needs and review
how we may assist in helping you reach your business goals.
The following proposal addresses your organization’s top business initiatives.
Your Business Initiatives
• Develop a strong HR infrastructure to define your company culture and
expectations.
• Engage your employees by implementing a performance appraisal system
that better aligns with your company goals.
• Improve business outcomes with personalized HR support and effective
recommendations.
• Improve productivity by streamlining multiple systems into one integrated
HR, Benefits & payroll platform.
• Implement a strategic hiring and onboarding strategy to attract, hire, and
onboard top talent.
Proposal Content
Solution Service Investment Additional
Overview and Support Summary Information
I'm confident Paychex can help drive meaningful results for your organization given our 50+ year history of
helping customers like you.
Please review the following information and feel free to contact me with any questions or feedback you may
have. I appreciate your consideration and I look forward to discussing next steps.
Nicole Lane
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Your Custom Paychex Solution
Paychex Flex®
Paychex recommends our Paychex Flex® Payroll service to simplify paying and managing employees. More than
just payroll, Paychex offers a scalable suite of HR services and benefit solutions paired with unparalleled service
to help you manage complexity as your business grows. Adding a service is as easy as turning on a new module
within the seamlessly integrated, single sign-on cloud platform. Count on Paychex to support the needs of your
business today and as it grows and evolves in the future.
Business Outcomes
Efficiently Manage Critical Processes Attract and Retain Top Talent
• Run payroll on your schedule: Flexible pay options • Verify candidate backgrounds with Employee
include, check, direct deposit, or paycard Screening Service to help hire the right employees.
• Update and allocate costs in your GL with integrations • New hires can complete onboarding tasks efficiently
to accounting software, QuickBooks®, Sage®, Xero®, via a digital, mobile friendly experience.
and Intacc®
• Gain insight into your business with access to 160+
reports and custom reports
• Organize expenses and determine which departments Engage and Motivate Your Workforce
are most profitable
• Educate, close skill gaps, and accelerate development
• Track and control expenses with Expense with on-demand courses accessible anytime,
Management
anywhere through our Learning Management System
(LMS)
• Track employee hours worked with more accuracy with
Time and Attendance – Choice in punch options.
Increase Employee Productivity Help Reduce Business Risk
• Save administrative time with a streamlined employee • Develop company policies and clarify your culture with
online experience to complete a wide variety of self- the Employee Handbook Builder
service HR tasks
• Help ensure you are offering health insurance in
• Improve the efficiency of benefits administration while compliance with ESR provisions
providing a streamlined employee experience
• Single sign-on platform and mobile app.
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Service and Support
At Paychex, we understand that starting a new partnership or switching providers is a critical time for your
business. But we’re with you every step of the way.
From day one, you’ll always have a dedicated point-of-contact to answer your questions, proactively keep you
informed on progress, and deliver knowledgeable, friendly support throughout your relationship with Paychex.
Who You Will Work With
Paychex Sales Customer Support
Your sales representative will confirm all necessary After your first year with Paychex, your account manager will
agreements and documentation are submitted so we can confirm we're continuing to provide you with the right mix of
get started on your account setup. They will work with solutions and keep you up to date on the latest technology
you throughout your first year with Paychex to identify and service enhancements from Paychex.
any other business needs you may have and
recommend solutions to help your business thrive.
Account Manager
Following implementation, your account will transition to
our expert support team. We'll provide service to match
your business needs, plus the added benefit of our
employee training and development system along with
24/7 support.
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Investment Summary
CITY OF KENYON
Created Date: 02-28-2023
Quote Number: Q-624245
Per Pay Period - Bi-Weekly Units Rate / Unit Total Discount Rate / Unit Net Total
after Discount
Paychex Flex Enterprise
Paychex Flex Payroll Bundle - Per 1 $166.00 $166.00 45.0% $91.30 $91.30
Payrun Fee
Paychex Payroll 30 $5.45 $163.50 45.0% $3.00 $90.00
Flex Time 30 $2.50 $75.00 45.0% $1.37 $41.10
Paychex Flex Time - Per Payrun 1 $28.00 $28.00 45.0% $15.40 $15.40
Fee
Total $237.80
777777
Monthly Fees Units Rate / Unit Total Discount Rate / Unit Net Total
after Discount
Paychex Flex Onboarding 30 $1.50 $45.00 0.0% $1.50 $45.00
Flex Onboarding Base Fee 1 $50.00 $50.00 0.0% $50.00 $50.00
Total $95.00
555555
Annual Fees Units Rate / Unit Total Discount Rate / Unit Net Total
after Discount
YE Processing- Forms W2/1099 - 1 $82.50 $82.50 0.0% $82.50 $82.50
Base
YE Processing- Forms W2/1099 - 30 $7.50 $225.00 0.0% $7.50 $225.00
Per User
YE Handling Fee 1 $25.00 $25.00 0.0% $25.00 $25.00
Total $332.50 /$7655
55
annually
One-time Fees Units Rate / Unit Total Discount Rate / Unit Net Total
after Discount
Paychex Flex Payroll Bundle - Setup 1 $500.00 $500.00 0.0% $500.00 $500.00
Fee
Flex Onboarding Implementation 1 $500.00 $500.00 0.0% $500.00 $500.00
Paychex Flex Time - Setup Fee 1 $1,000.00 $1,000.00 50.0% $500.00 $500.00
Total $1,500.00
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Investment Summary Package
Paychex Flex® Enterprise Paychex Flex® Enterprise
Talent Management Workforce Management
• HR Library • Reporting and Analytics
• Onboarding Tasks • General Ledger Report
• Post Jobs with Indeed®
• New-Hire Reporting
• Paychex Flex HR Administration
• Employment & Income Verification Services
• Employee Handbook Builder
• Paychex Employee Screening Essentials - 15
• Labor Compliance Poster Kit
• Performance Management • Custom Reports and Data Exports
• Document Management • State Unemployment Insurance Service
• Labor Distribution and Job Costing
• Time-Off Accrual (TOA) Reporting
Payroll and Financial Support Employee Experience
• Payroll Processing • Enhanced Employee Mobile Experience
• Payroll Tax Services - Taxpay® • Learning Management System (LMS)
• Flexible Employee Pay Options • Online Reports and Analytics
• Garnishment Payment Service • Corporate Events Calendar
• General Ledger Service • Cashflow Assistance (FinFit®)
• 401(k) Report
• Retirement Plan Summary Report
• 24/7 U.S. Based Expert Support
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Notations
Product / Billing
• Totals displayed do not include sales tax where applicable.
• Prices are subject to change with advance notice; promotions are excluded from change.
* Additional training content for Paychex Learning Product offering is purchased through the e-commerce tool site by
authorized users.
• Payroll Delivery: Delivery fees charged only if incurred.
• Quarter/Year End Report Delivery: Quarter/YE Report Delivery fees are not included and will be charged if a package is
delivered. Additional fees will apply.
Implementation
• Check Signing or ReadyChex: ReadyChex
• Worker's Compensation Report or Worker's Compensation Payment Service: Worker's Compensation Payment Service
• General Ledger Report or General Ledger reporting service: General Ledger Report
• Paychex Flex Onboarding - 2023
Year-End Delivery
• Note: Please review your delivery method with your service provider before 12/31 to avoid additional charges.
• Online Only
• You and your employees will receive no physical output.
• W2s are typically available online within the first full week of January.
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Your Custom Paychex Solution - Details
Based on a review of your organization’s initiatives and requirements, we recommend Paychex Flex® solution. Below is an
overview of the services included in this package and any additional solutions we recommend to help you simplify
complexities and realize better business outcomes.
Data Exports
Export many types of reports into spreadsheets that you can customize or import into third-party software.
Direct Deposit
Allows employees to have their pay deposited into their checking or savings account.
Employee Handbook Builder
Minimize the risk of employee liability by communicating compliant regulatory policies, while instilling your company
values, culture, and expectations within a legally-reviewed employee handbook.
Employee Self-Service & Mobile App
Deliver an employee experience that helps your people complete important HR tasks on their own and in compliance with
regulations and company policies. We offer 25 employee self-service actions, enabling client and employee
independence, including the ability to update address info, enter life events, fill out tax forms, report hours, and manage
retirement accounts.
Financial Wellness
Help employees take control of their finances with helpful financial planning resources, including an online personal
wellness assessment, calculators, apps, and other educational tools.
Garnishment Payment Service
Provide Paychex with copies of all garnishment court orders, and we will deduct mandated employee funds and makes
garnishment payments on your behalf.
HR Administration
Reduce turnover and develop your top performers by creating a culture of continuous feedback that empowers
professional growth. Provide them with the feedback they need to excel at your organization. Capture, store, and access
employee documentation and personnel records in the cloud with unlimited storage and accessible 24/7.
HR Events Calendar
Track key milestones and communicate important dates with employees including certification renewals, employee
anniversaries, raise dates, and more.
Indeed.com
Post jobs to the world’s number one job site right from Paychex Flex®. Paychex customers receive a $200 credit to
sponsor their jobs on Indeed to get more quality applicants fast.*
Job Costing and Labor Distribution
Determine how resources and time are spent with greater precision. Create labor assignments or project descriptions to
your specifications to organize expenses to assist in determining what parts of the business are profitable, and integrate
data with your general ledger.
Learning Management
Position your employees to drive better results and reach their career goals by closing skill gaps. Leverage learning
management to train your team, including new hires and tenured veterans with customizable learning plans.
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New Hire Reporting
Each pay period, Paychex electronically notifies the appropriate government agencies of your new and rehired employees,
as per applicable regulations.
Payroll Services
Ability to pay employee via check, direct deposit, or paycard, and remit payments to third-parties for garnishments .
Performance Management
Communicate feedback on any schedule, not just once a year, with templates that you can align with your organizational
goals.
Reporting and Analytics
Gain insight into your business with 160+ reports, create your own custom reports, and access benchmarking tools that
leverage industry data of our 600,000+ customers.
Taxpay®
Federal, state, and local payroll taxes will be automatically calculated and deposited as well as accompanying tax returns
filed on your behalf.
State Unemployment Insurance Service (SUI)
The State Unemployment Insurance Service will save you the time, work, and cost involved with unemployment insurance
administration. This service includes:
• Toll-free help line
• Claims management
• Hearing preparation
• Benefit charge auditing
Time and Attendance
Paychex time and attendance solutions offers a better way to save time, prevent errors and stay compliant by integrating
time and attendance functions with payroll, HR, and other services. Employees have mobile access to punch and transfer
between jobs on the go. Options that help with accuracy and budget requirements include: 1) Employee shift swapping,
Geofencing and geo location capabilities, and 3) Biometric technology to eliminate buddy punching
Workflows and Approvals
Define approval procedures for select self-service activities to ensure proper checks and balances for compensation
changes and other sensitive processes.
*To receive the $200 Indeed, Inc., credit, you must be a Paychex, Inc. client and post a sponsored job through Paychex Flex to Indeed. You must have
the appropriate user access configured in Paychex Flex to post jobs to Indeed. Only new Indeed customers will be eligible to receive the $200 credit. The
$200 credit expires after 12 months. The $200 credit applies to any advertiser in the U.S. who hasn’t received a credit in the past 180 days on
Indeed,and is applicable only for future spend. Terms, conditions and quality standards apply.
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AGENDA ITEM NO. XI.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: On-Sale Liquor License Renewal- Kenyon Country Club
SUGGESTED ACTION: Renewal of annual on-sale and Sunday liquor license. See
attachments below.
MOTION NEEDED
ATTACHMENTS:
DOC031023.pdf
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AGENDA ITEM NO. XI.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Approve Request for Liquor at Depot Park – Savannah Bleess,
May 20, 2023
SUGGESTED ACTION: Savanah Brees is requesting Council approval for a special permit to
serve alcohol at a wedding reception on May 20th at the Depot Park
Building. See attached information below.
ATTACHMENTS:
DOC031023-001.pdf
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AGENDA ITEM NO. XI.D
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Update on Finance Director Hiring.
SUGGESTED ACTION: The city has received 18 applications to date. There are 2 candidates
that have previous municipal finance experience. Interviews have
been scheduled for March 13 and 23. The position is under KMU
and the commission will make the appointment.
ATTACHMENTS:
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AGENDA ITEM NO.
XII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 14, 2023
SUBMITTED BY: Mark Vahlsing, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: F.Y.I. - Department Updates
SUBJECT: FYI
SUGGESTED ACTION: See attached department updates.
ATTACHMENTS:
3-14-23 FYI.pdf
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