Regular meeting

Kenyon City Council, May 9, 2023

The Kenyon City Council met May 9, 2023 with all five members present, though Council Member Molly Ryan left at 7:45 p.m. Citizen Ed Doyle opened by arguing the owner of the 1 Langford property had met the conditions of the city's abatement order.

10motions
10 unanimousno split votes
5present, absent: None
4resolutions
$3,000,000largest figure
Yesrecording posted

Watch the meeting

Meeting video, from the city's YouTube channel · open on YouTube
PresentDoug Henke mayorKim HelgesonLee SjolanderMary BaileyMolly Ryan (left at 7:45 pm)
AbsentNone
street improvements sanitary sewer chickens ordinance solid waste fair housing accommodation liability insurance right-of-way parade permit

What happened

  1. Resolution 2023-09 approving plans/specs and ordering bid advertisement for 2023 Street Improvements adopted 5-0-0
  2. Resolution 2023-10 approving plans/specs and ordering bids for 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements adopted 5-0-0
  3. Consent agenda approved including check numbers 74760 through 74858 and 4502E through 4533E
  4. Council authorized City Administrator and City Attorney to develop a reasonable accommodation ordinance (roll call 5-0-0) after a request for a 6-foot front-yard fence versus the 3 1/2-foot code maximum
  5. Council authorized drafting a chicken ordinance and application; the recorded roll call showed Henke voting Nay, motion carried 4-1-0
  6. Three-year solid waste hauling agreement with Flom Disposal approved 4-0-0; current agreement expires June 30, 2023
  7. Spring clean-up day scheduled Saturday, May 20, 9:00 a.m. to 12:00 p.m. at the pool parking lot, open to City residents
  8. Memorial Day parade permit approved for May 29, 2023, traveling down 2nd Street to a cemetery ceremony
  9. Council voted 4-0-0 not to waive LMCIT state liability limits of $500,000 per claimant and $1,500,000 per occurrence
  10. Police Chief Sjoblom reported the city had been awarded a grant for new defibrillator units; Administrator Vahlsing welcomed new Finance Director Kelly Perry
  11. Molly Ryan left the meeting at 7:45 p.m.; meeting adjourned at 8:05 p.m.

What was asked 20 raised · 11 settled

Every question, assignment, pending figure and unsourced claim from this meeting, quoted from the record, each checked against the county, census, listing, bid and budget data we hold.

11 what happened next4 partly answered5 we hold no data
Action itemCouncilman Sjolander (motion), seconded by Baileyfrom the minutes
Motion by Sjolander second by Bailey to authorize the City Administrator and City Attorney to develop a draft application and ordinance.

Old business discussion on allowing chickens in the city, with council divided over enforcement concerns.

At the meetingMotion carried on a roll call vote with Mayor Henke voting nay (4-1-0).

What happened next

The ordinance was drafted. By July 11 2023 Administrator Vahlsing reported that the city attorney had produced a chicken ordinance for Kenyon requiring a permit to keep chickens. It did not open residential areas to chickens, and when a resident asked the council to revise it in June 2025, the fourth such request since 2015, the council voted the idea down on a roll call of Bailey aye, Kirchmann aye, Brunner nay, Sjolander nay and Helgeson nay.

7-11-23_Council_Packet; 6-10-25_COUNCIL_PACKET_Updated · taken up again 2025-06-10

RequestAttorney Scott Riggs, relaying request of Jeff and Ann Traxlerfrom the packet
Jeff and Ann Traxler are asking for the City to conduct a land swap of right-of-way area that abuts their property to the west.

The Traxlers want the alley/ROW relocated for a commercial building project and are also seeking a variance.

At the meetingNo action taken; Riggs noted a planning commission meeting on the variance will be held in late May.

What happened next

The swap advanced to deed preparation within three months. Rapp Surveying completed the new survey showing the relocated alley by July 11 2023, the city received the legal description by August 8 2023, and Attorney Riggs began preparing the deeds for the exchange. No recorded deed appears in our holdings, so the closing itself is unconfirmed. Traxler is a repeat city vendor on the other side of the ledger, winning the 2022 Toro mower contract and a 60-inch Toro at a net $2,459 in 2024.

7-11-23_Council_Packet; 8.8.23_Council_Packet__Agenda; KENYON_BIDS.md · taken up again 2023-08-08

PendingAttorney Scott Riggsfrom the minutes
They are also applying for a variance related to the proposed building project. A planning commission meeting to consider the variance will be held in late May.

The variance is tied to the requested alley/ROW relocation and business expansion.

What happened next

The planning commission approved the setback variance for the Traxlers' new commercial building, as Attorney Riggs reported to the council on July 11 2023. Our holdings do not contain the commission's findings or any conditions attached to the approval.

7-11-23_Council_Packet · taken up again 2023-07-11

PendingEngineer Derek Olingerfrom the minutes
Update on Easements for Project Engineer Olinger updated the council on the progress of gaining easements for the project.

Olinger gave a progress update on easement acquisition while plans were approved for bid advertisement.

At the meetingOnly a status update was given; no easements were presented for approval.

What happened next

Easements came to the council as Resolution 2023-17 on August 8 2023, adopted on a motion by Bailey seconded by Helgeson, carried 5-0-0, with the city still waiting on signatures from one property owner at that point. Getting there required several minor plan revisions to accommodate owner requests during the negotiation. The acquisition did not delay bidding, which opened the same week at prices below projection.

6.13.23_Council_Packet_and_Agenda; 8.8.23_Council_Packet__Agenda · taken up again 2023-08-08

PendingCouncilman Bailey (motion adopting Resolution 2023-09)from the minutes
Resolution 2023-09: Approving Plan and Specifications and Ordering Advertisement for Bids 2023 Street Improvements Motion by Bailey, second by Ryan to adopt Resolution 2023-09.

Council approved plans and specifications and ordered advertisement for bids on the street project.

At the meetingResolution adopted 5-0-0; bid amounts unknown at the time of the meeting.

What happened next

Bids opened June 8 2023 with three bids received and pricing well below the engineer's estimates. Bituminous Materials won at $450,693.95, ahead of Crane Creek at $463,585.62 and SL Contracting at $535,437.60, against an estimate of $547,705. The low bid came in $97,011 under estimate, 17.7% below.

6.13.23_Council_Packet_and_Agenda; KENYON_BIDS.md · taken up again 2023-06-13

PendingCouncilman Helgeson (motion adopting Resolution 2023-10), seconded by Henkefrom the minutes
Resolution 2023-10: Approving Plan and Specifications and Ordering Advertisement for Bids 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements Motion by Helgeson second by Henke to adopt Resolution 2023-10.

Council approved plans and specs and ordered advertisement for bids on the Pearl Creek sewer project.

At the meetingResolution adopted 5-0-0; bid results not yet known.

What happened next

Three bids opened June 8 2023 and BCM Construction won at $1,241,494.22, ahead of Minger at $1,327,721.90 and Heselton at $1,385,155.00, against an engineer's estimate of $1,536,065. That is $294,571 under estimate, 19.2% below. The award specified Alternate 1, the lift station driveway paving.

6.13.23_Council_Packet_and_Agenda; KENYON_BIDS.md · taken up again 2023-06-13

Unsourced claimAttorney Scott Riggsfrom the minutes
In this case the property owner is requesting approval to construct a 6-foot-high fence in the front yard. City Code only allows a maximum height of 3 1/2 feet.

Explaining why the requested 6-foot front yard fence requires an accommodation.

At the meetingStated as fact with no citation to a code section.

What happened next

The 3.5 foot figure is right for the front but wrong as a general maximum. The city's fence standards, set out in the July 2026 staff report, allow up to 6 feet in the rear yard and half of the rear and side yards, with 3.5 feet applying only to the front half of the side yard. So the code already permitted the 6-foot height the applicant wanted, just not in the location requested.

The council was told City Code allows a maximum fence height of 3.5 feet, but the code permits 6 feet in the rear yard and half the rear and side yards, and limits only the front portion to 3.5 feet.

7.14.26_Council_Packet_Updated · taken up again 2026-07-14

Unsourced claimCity Attorney Scott Riggsfrom the minutes
State statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence.

Explaining the LMCIT liability coverage waiver decision before the council vote.

At the meetingCouncil voted 4-0-0 not to waive the statutory limits.

What happened next

The statutory limits are stated correctly and consistently across four years, $500,000 per claimant and $1,500,000 per occurrence, applying whether the claim runs against the city, an individual officer or employee, or both. The additional coverage figure is the outlier. Every later presentation of the same decision, in May 2024, May 2025 and May 2026, puts the optional purchased coverage at $2,000,000 annually rather than $3,000,000. The council declined to waive the limits every year, 4-0-0 in 2023, 3-0-0 in 2024, 4-0-0 in 2025 and 5-0-0 in 2026.

The council was told in 2023 that cities can purchase additional coverage up to $3,000,000 annually, but the same item in 2024, 2025 and 2026 states the figure as $2,000,000.

6.13.23_Council_Packet_and_Agenda; 5-14-24_AGENDA(1); 5-13-25_council_packet_updated · taken up again 2024-05-14

To look upfrom the minutes
NEW BUSINESS Approve Memorial Day Parade Permit for May 29, 2023 Mayor Henke stated that the annual Memorial Day parade is going to go down 2nd Street ending with a 10 ceremony at the cemetery. Motion by Henke, second by Bailey to approve the Memorial Day Parade permit for May 29, 2023.

Mayor Henke described the parade route down 2nd Street ending with a ceremony at the cemetery.

At the meetingCouncil approved the permit for May 29, 2023 by a 4-0-0 vote despite the agenda listing May 31.

What happened next

May 29 2023 is the operative date. The council approved the Memorial Day parade permit for May 29 2023 on a motion by Henke seconded by Bailey, carried 4-0-0, and the May 31 date on the agenda appears nowhere else in the record. The route ran down 2nd Street ending with a ceremony at the cemetery, and the following year's permit describes the parade starting at 10:30 AM and running from Speedway to the cemetery.

6.13.23_Council_Packet_and_Agenda; 5-14-24_AGENDA(1); 6.11.24_Council_Packet_and_Agenda · taken up again 2023-06-13

Action itemCity Administrator Mark Vahlsingfrom the minutes
Motion Carried 4-0-0 Solid Waste Clean-up Day Update Administrator Vahlsing stated that a spring clean-up day is scheduled at for Saturday, May 20 from 9:00am to 12:00 pm. at the pool parking lot.

Update on the spring clean-up day under old business.

At the meetingInformational update only; no council action taken.

What happened next

No participation or disposal cost report for the May 20 2023 event appears in our holdings, but the program continued and changed in two ways. For 2024 the council set the clean-up for Saturday April 27 from 9 am to noon at the same pool parking lot, a month earlier in the year and now expressly for city residents for a fee, on a motion by Helgeson seconded by Sjolander carried 3-0-0, with Flom Disposal participating again. A post-event report would settle the 2023 turnout and cost.

6.13.23_Council_Packet_and_Agenda; 3.12.24_Council_Packet__Agenda · taken up again 2024-03-12

PendingCouncilman Kim Helgesonfrom the minutes
COUNCIL AND STAFF GENERAL COMMENTS Councilmen Sjolander thanked Public Works Superintendent Ehrich and Police Chief Sjoblom for their recent work. Councilmen Helgeson discussed the upcoming Farmers Market.

Council and staff general comments.

What happened next

The market ran and did well. On August 8 2023 Mayor Henke reported that the Farmers Market had a good turnout and thanked Councilman Helgeson, Bailey Ament and the Park Board for their work on it. No schedule, location or city permit action for the market appears in our holdings.

8.8.23_Council_Packet__Agenda · taken up again 2023-08-08

Action itemCouncilman Sjolander (motion), seconded by Ryanfrom the minutes
Adopt Reasonable Accommodation Ordinance Motion by Sjolander second by Ryan to authorize the City Administrator and City Attorney to develop a reasonable accommodation ordinance.

A property owner requested a reasonable accommodation to exceed the city fence height limit, and the city has no ordinance governing such requests.

At the meetingMotion carried 5-0-0 by roll call vote.

Partly answered

The authorization passed 5-0-0 on a roll call with Henke, Sjolander, Bailey, Ryan and Helgeson all aye, but no drafted or adopted reasonable accommodation ordinance appears anywhere in our holdings. The city was still handling fence height requests through the variance process in 2026 rather than through an accommodation ordinance. The adopted ordinance, or a council record showing the draft was never returned, would settle it.

6.13.23_Council_Packet_and_Agenda; 7.14.26_Council_Packet_Updated

RequestAttorney Scott Riggs, reporting the requestfrom the minutes
In this case the property owner is requesting approval to construct a 6-foot-high fence in the front yard. City Code only allows a maximum height of 3 1/2 feet.

City Code caps front yard fence height at 3 1/2 feet and the owner seeks an exception for a disability accommodation.

At the meetingCouncil did not decide on the fence; it instead directed drafting of a reasonable accommodation ordinance.

Partly answered

No decision on the individual fence request appears in our holdings. The code was not changed to accommodate it: the city's fence standards as stated in July 2026 still allow up to 6 feet in the rear yard and half the rear and side yards, and only 3.5 feet in the front half of the side yard. A separate 2026 request, for an 8-foot fence around a licensed childcare program, was being processed as a variance. The council minutes granting or denying the 2023 accommodation would settle it.

6.13.23_Council_Packet_and_Agenda; 7.14.26_Council_Packet_Updated

Unsourced claimCity Administrator Mark Vahlsingfrom the minutes
The new agreement contains increased rates based on CPI increases for the last two years and higher tipping fees at the Red Wing Land Fill.

Presenting the replacement solid waste hauling agreement before the current one expires June 30, 2023.

At the meetingCouncil approved the 3-year agreement 4-0-0 without the specific rate figures being stated in the minutes.

Partly answered

The three-year agreement was approved 4-0-0 on a motion by Henke seconded by Bailey, but no rate schedule, CPI figure or Red Wing tipping fee appears in our holdings. The same thing happened at the next renewal: the agreement expired June 30 2026 and the council approved another three-year Flom Disposal contract with increased rates 4-0-0 on August 6 2026, again with no price in the record. The signed agreements would settle both rate schedules.

Six years of solid waste hauling were contracted across two agreements without a single rate figure entering the council record at either approval.

6.13.23_Council_Packet_and_Agenda; 8-6-26_Council_Packet_Updated · taken up again 2026-08-06

To look upfrom the minutes
Motion carried 5-0-0 Roll Call Vote: Henke- Nay, Sjolander – Aye, Bailey – Aye, Ryan – Aye, Helgeson - Aye Motion carried 4-1-0 Molly Ryan left the meeting at 7:45 pm Solid Waste Hauler Agreement Administrator Vahlsing stated that the current agreement for Solid Waste hauling with Flom Disposal expires on June 30, 2023.

Recording of the vote authorizing the draft chicken ordinance and application.

Partly answered

The error was never corrected. The same double tally, a line reading motion carried 5-0-0 followed immediately by a roll call of Henke nay with four ayes and a line reading motion carried 4-1-0, is reproduced verbatim in the July 11 2023 packet and again in the May 13 2025 packet. The roll call is the more reliable of the two because it names every member and its total matches its own names, so the vote was 4-1-0 with Henke against. Corrected minutes or the meeting recording would settle it formally.

The minutes record two different results for the same motion, and the uncorrected 5-0-0 line conflicts with the named roll call showing Mayor Henke voting nay.

7-11-23_Council_Packet; 5-13-25_council_packet_updated

Pending
Discussion was held on the property abatement enforcement action of 1 Langford Avenue.

A closed session was held the same evening on the property abatement enforcement action after a citizen spoke on it.

At the meetingNo public decision recorded; the closed session adjourned at 8:26 pm.

We hold no data

No council decision on the 1 Langford Avenue abatement appears anywhere in our holdings, in open or closed session. The only later document using the word abatement concerns something else entirely, a property tax abatement granted to Kenyon Sunset Home in connection with TIF District No. 4-4 and recorded in Goodhue County in 2003, which the city moved to terminate in 2023. The closed session minutes or a code enforcement file for 1 Langford Avenue would settle whether enforcement proceeded.

6.13.23_Council_Packet_and_Agenda; 8.8.23_Council_Packet__Agenda · would settle it: A recorded council decision on whether abatement conditions were met and what enforcement follows

Unsourced claimEd Doyle, citizenfrom the minutes
CITIZEN COMMENT Ed Doyle addressed the Council on his opinion on the clean-up and the abatement order on the 1 Langford property. He felt that the property owner had met the conditions of the abatement order.

Citizen comment on the clean-up and abatement order at 1 Langford.

At the meetingNo response recorded in open session.

We hold no data

We hold neither the conditions of the abatement order nor any city inspection report, so whether the owner complied cannot be assessed. Nothing in the record responds to Ed Doyle in open session. The abatement order and a compliance inspection would settle it.

6.13.23_Council_Packet_and_Agenda · would settle it: The abatement order conditions and a city inspection report on compliance

Unsourced claimMayor Doug Henkefrom the minutes
Mayor Henke also had concerns with enforcement but he had seen more communities on League of Minnesota Cities Mayors forum that did allow chickens then didn't.

Discussion of whether to allow chickens within city limits and enforcement concerns.

At the meetingNo source or count provided; Henke still voted nay on drafting the ordinance.

We hold no data

We hold no tally of Minnesota cities' chicken ordinances and nothing from the League of Minnesota Cities mayors forum, so the comparison cannot be checked. Our statewide small-city datasets cover website spending and legal notice spending across all 856 Minnesota cities, not animal ordinances. A League survey or the forum thread itself would settle it. The mayor voted nay on drafting the ordinance regardless of what he had seen.

6.13.23_Council_Packet_and_Agenda; /Users/casa/mn-small-towns · would settle it: A tally of Minnesota cities' chicken ordinances from the LMC or the forum thread itself

To look upPolice Chief Jeff Sjoblomfrom the minutes
City Administrator Vahlsing welcomed new Finance Director Kelly Perry and thanked Deputy Clerk/administrative assistant Holli Gudknecht, Administrative Assistant Linda Bean and Sue Dodds for their work in the interim of the hiring of a new finance director. Chief Jeff Sjoblom stated that the city had been awarded a grant for new defibrillator units.

Department update during council and staff general comments.

At the meetingNo further details given.

We hold no data

We hold no amount, funder, timeline or conditions for the defibrillator grant, and nothing in the later record returns to it. The grant award letter would settle all four. The city's general grant practice does appear elsewhere in the record, with staff noting that the applicant is responsible for administering a grant and meeting its terms and conditions.

6.13.23_Council_Packet_and_Agenda · would settle it: The grant award letter showing amount, source, and conditions

To look up
Motion by Ryan seconded by Houglum to adjourn the closed session at 8:26 pm.

Closed session on the 1 Langford Avenue nuisance abatement following the regular meeting.

We hold no data

No corrected closed session minutes exist in our holdings, so the actual movers and the attendance that night cannot be established. Houglum appears in our entire record only once, as one of three people added as signers on the city's bank account at Security State Bank in June 2025, never as a council member, which is consistent with the minutes being in error rather than with an unrecorded attendee. The city does produce attendance-explicit minutes elsewhere, listing members present and absent by name for the June 20 2024 work session. Corrected minutes or the recording would settle it.

6.13.23_Council_Packet_and_Agenda; 7.9.24_Council_Packet__Agenda; 6-10-25_COUNCIL_PACKET_Updated · would settle it: Corrected closed session minutes identifying the actual movers and attendance

Decisions 10 motions

Who did what

PersonAt this meeting
Doug Henke
Mayor
Called the meeting to order, seconded Resolution 2023-10, moved approval of the Flom Disposal agreement and the Memorial Day parade permit, and voted Nay on the chicken ordinance roll call while noting more communities allow chickens
Kim Helgeson
Council Member
Moved adoption of Resolution 2023-10, seconded the LMCIT waiver motion, discussed the upcoming Farmers Market, and moved to adjourn
Lee Sjolander
Council Member
Moved the consent agenda, the reasonable accommodation ordinance, the chicken ordinance draft and the motion not to waive LMCIT limits; thanked Ehrich and Sjoblom for recent work
Mary Bailey
Council Member
Moved Resolution 2023-09, seconded multiple motions, and stated support for allowing chickens with restrictions and permitting
Molly Ryan
Council Member
Moved to approve the agenda, seconded motions, raised enforcement concerns about chickens, and left the meeting at 7:45 pm
Mark Vahlsing
City Administrator
Reported on the expiring Flom Disposal agreement and spring clean-up day; welcomed new Finance Director Kelly Perry and thanked interim staff
Scott Riggs
City Attorney
Explained the Traxler right-of-way swap request, the Federal Fair Housing Act reasonable accommodation request, chicken ordinance options, and the LMCIT liability waiver decision
Derek Olinger
City Engineer, Bolton & Menk
Updated the Council on completed final plans for the street improvement and Pearl Creek sewer projects and on easement acquisition progress
Jeff Sjoblom
Police Chief
Reported the city had been awarded a grant for new defibrillator units
Wayne Ehrich
Public Works Director
Attended the meeting; thanked by Council Member Sjolander for recent work
Ed Doyle
Citizen
Addressed the Council on the clean-up and abatement order at the 1 Langford property
Jeff Traxler
Property owner/applicant
Requested, with Ann Traxler, a right-of-way land swap to support a planned business expansion
Ann Traxler
Property owner/applicant
Requested, with Jeff Traxler, a right-of-way land swap and a related variance
Kelly Perry
New Finance Director
Welcomed by the City Administrator
Linda Bean
Administrative Assistant
Present at the meeting; thanked for interim work before the finance director hire
Holli Gudknecht
Deputy Clerk/administrative assistant
Thanked for interim work before the finance director hire
Sue Dodds
Staff
Thanked for interim work before the finance director hire

Organizations named: City of Kenyon, Flom Disposal, Bolton & Menk, Inc., League of Minnesota Cities, LMCIT (League of Minnesota Cities Insurance Trust), Red Wing Land Fill, Kenyon Municipal Utilities (KMU)

Figures

AmountWhat
$500,000State statutory tort liability limit per claimant
$1,500,000State statutory tort liability limit per occurrence
$3,000,000Additional insurance coverage cities may purchase annually

Said at the meeting

He felt that the property owner had met the conditions of the abatement order.

Ed Doyle, citizen · minutes, verbatim

Councilmen Bailey stated that she supported allowing Chickens in the City with restrictions and permitting.

Council Member Mary Bailey · minutes, verbatim

Councilmen Ryan has concerns with enforcement.

Council Member Molly Ryan · minutes, verbatim

Mayor Henke also had concerns with enforcement but he had seen more communities on League of Minnesota Cities Mayors forum that did allow chickens then didn't.

Mayor Doug Henke · minutes, verbatim

Councilmen Sjolander stated that the City Attorney and administrator should write a draft Chicken ordinance.

Council Member Lee Sjolander · minutes, verbatim

A reasonable accommodation is exception or adjustment to regulations or policies to give persons with disabilities equal opportunity to use their property.

City Attorney Scott Riggs · packet, verbatim

Resolutions and ordinances

  • Approving PlanSpec Street project-Ordering Bid AdvertisementRes. 2023-09
  • Approving Plan and Specifications and Ordering Advertisement for Bids 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements MotionRes. 2023-10
  • Pearl Creek_Accepting BidRes. 2023-12
  • Summary_Publication_Resolution_for_Cannabis_MoratoriumRes. 2023-11
  • MOTION NEEDED Resolution 2023-11 MOTION NEEDED ATTACHMENTS: DOCSOPEN-#881560-v1-Memo_Cannabis_Act_SummaryOrd. 102

Agenda

Each item links to where it appears in the packet.

  1. I. CALL TO ORDER AND ROLL CALL
  2. II. CITIZEN COMMENTS
  3. III. ADOPT AGENDA
  4. III.A Adopt Agenda
  5. IV. CONSENT AGENDA
  6. V. APPROVAL OF MINUTES and APPOINTMENTS
  7. V.A Approval of Minutes and Appointments
  8. VI. PRESENTATIONS/PUBLIC HEARINGS
  9. VII. ENGINEERING
  10. VII.B Pearl Creek Sanitary Sewer Improvements
  11. VIII. LEGAL
  12. VIII.A Request for City to adjust alley/ROW location - Jeff and Ann Traxler
  13. VIII.B Request for Reasonable Accommodation – Fence
  14. IX. FINANCIAL
  15. X. OLD BUSINESS
  16. X.A Request for Chickens within City Limits
  17. X.B Solid Waste Hauler Agreement
  18. X.C Solid Waste Clean-up day update
  19. XI. NEW BUSINESS
  20. XI.A Approve Memorial Day Parade for May 31, 2023
  21. XI.B LMCIT Liability Coverage Waiver
  22. XII. F.Y.I. - Department Updates
  23. XIII. COUNCIL AND STAFF GENERAL COMMENTS
  24. XIV. ADJOURNMENT
  25. A. City Council Meeting Minutes of March 28, 2023
  26. B. City Council Special Meeting Minutes of April 11, 2023
  27. C. Appoint Municipal Swimming Pool Employees
  28. B. Pearl Creek Sanitary Sewer Improvements
  29. A. Request for City to relocate alley/ROW Jeff and Ann Traxler
  30. B. Request for Reasonable Accommodation – Fence
  31. A. Request for Chickens within City Limits
  32. B. Solid Waste Hauler Agreement
  33. C. Solid Waste Clean-up Day Update
  34. A. Approve Memorial Day Parade for May 31, 2023
  35. B. LMCIT Liability Coverage Waiver
  36. XII. OTHER BUSINESS
  37. A. Schedule of Upcoming Meetings

Full packet text (270k characters)

The minutes

Official minutes as adopted, from 6.13.23 Council Packet and Agenda; text extracted from the PDF.

Council Meeting was duly held in the City Council chambers at 7:00 p.m. on the 9th day of May 2023. The meeting was called to order by Mayor Henke.

Present
Mayor Doug Henke, Council Members Kim Helgeson, Lee Sjolander, Mary Bailey, Molly Ryan (left at 7:45 pm)
Absent
None
Also present
City Administrator Mark Vahlsing, Police Chief Jeff Sjoblom, Attorney Scott Riggs, Administrative Assistant Linda Bean, Public Works Director Wayne Ehrich, Cal Bean, Ed Doyle, Mrs. Doyle

The meeting opened with the Pledge of Allegiance.

Citizen Comment

Ed Doyle addressed the Council on his opinion on the clean-up and the abatement order on the 1 Langford property. He felt that the property owner had met the conditions of the abatement order.

Adopt Agenda

Motion

Motion by Ryan second by Bailey to approve the agenda. Motion carried 5-0-0.

Consent Agenda

Motion

Motion by Sjolander second by Bailey to approve the Consent Agenda, which includes payment of check numbers, 74760 through 74858; 4502E through 4533E.

Motion carried 5-0-0

Presentations / Public Hearings / Recognitions / Prolamations

Engineering

2023 Street Improvement Summary Engineer Olinger provided on update on the status of the Street Improvement Project. He reported that the 2023 street improvement final plans are complete and have been reviewed with public works. The plans are ready to advertise for bids.

Resolution 2023-09: Approving Plan and Specifications and Ordering Advertisement for Bids 2023 Street Improvements

Motion

Motion by Bailey, second by Ryan to adopt Resolution 2023-09. Motion carried 5-0-0.

Pearl Creek Sanitary Sewer Improvements

Engineer Olinger provided on update on the status of the stated that plans for the Pearl Creek Sewer project are complete and ready to advertise for bids.

Update on Easements for Project

Engineer Olinger updated the council on the progress of gaining easements for the project.

Resolution 2023-10: Approving Plan and Specifications and Ordering Advertisement for Bids 2023

Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements

Motion

Motion by Helgeson second by Henke to adopt Resolution 2023-10. Motion carried 5-0-0.

Legal

Request for City to relocate alley/ROW - Jeff and Ann Traxler

Attorney Riggs stated that Jeff and Ann Traxler are asking for the City to conduct a land swap of right- of-way area that abuts their property to the west. They are requesting the land area to be traded with the 9 City to help with a planned expansion project of their business. They are also applying for a variance related to the proposed building project. A planning commission meeting to consider the variance will be held in late May.

Request for Reasonable Accommodation – Fence

Attorney Riggs stated that the city received a request for Reasonable Accommodation under the Federal Fair Housing Act (FHA). He stated that under this act the cities are required to make reasonable accommodations for individuals with disabilities. A reasonable accommodation is exception or adjustment to regulations or policies to give persons with disabilities equal opportunity to use their property. In this case the property owner is requesting approval to construct a 6-foot-high fence in the front yard. City Code only allows a maximum height of 3 1/2 feet.

Adopt Reasonable Accommodation Ordinance
Motion

Motion by Sjolander second by Ryan to authorize the City Administrator and City Attorney to develop a reasonable accommodation ordinance.

Roll Call Vote: Henke- Aye, Sjolander – Aye, Bailey – Aye, Ryan – Aye, Helgeson - Aye

Motion carried 5-0-0

Old Business

Request for Chickens within City Limits

The City Attorney provided examples of Chicken ordinances and applications from neighboring communities. City Attorney Riggs reviewed some options for ordinances. Councilmen Bailey stated that she supported allowing Chickens in the City with restrictions and permitting. Councilmen Ryan has concerns with enforcement. Mayor Henke also had concerns with enforcement but he had seen more communities on League of Minnesota Cities Mayors forum that did allow chickens then didn't. Councilmen Sjolander stated that the City Attorney and administrator should write a draft Chicken ordinance.

Motion

Motion by Sjolander second by Bailey to authorize the City Administrator and City Attorney to develop a draft application and ordinance. Motion carried 5-0-0

Roll Call Vote: Henke- Nay, Sjolander – Aye, Bailey – Aye, Ryan – Aye, Helgeson - Aye

Motion carried 4-1-0

Molly Ryan left the meeting at 7:45 pm

Solid Waste Hauler Agreement

Administrator Vahlsing stated that the current agreement for Solid Waste hauling with Flom Disposal expires on June 30, 2023. Attorney Riggs developed a new 3-year agreement with Flom Disposal. The new agreement contains increased rates based on CPI increases for the last two years and higher tipping fees at the Red Wing Land Fill.

Motion

Motion by Henke, second by Bailey to approve 3-year solid waste hauling agreement with Flom Disposal. Motion Carried 4-0-0

Solid Waste Clean-up Day Update

Administrator Vahlsing stated that a spring clean-up day is scheduled at for Saturday, May 20 from 9:00am to 12:00 pm. at the pool parking lot. The event is open to City residents.

New Business

Approve Memorial Day Parade Permit for May 29, 2023

Mayor Henke stated that the annual Memorial Day parade is going to go down 2nd Street ending with a 10 ceremony at the cemetery.

Motion

Motion by Henke, second by Bailey to approve the Memorial Day Parade permit for May 29, 2023.

Motion carried 4-0-0
LMCIT Liability Coverage Waiver

City Attorney Riggs stated that the City Council is required to decide whether to waive the liability insurance limits. State statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. Cities can choose to waive the state liability limits. Cities can purchase additional insurance coverage up to $3,000,000 annually.

Motion

Motion by Sjolander seconded by Helgeson not to waive the LMCIT State Liability limits.

Motion carried 4-0-0
Schedule of Upcoming Meetings

KMU Meeting: Tuesday, May 16th @ 4:00 p.m. City Council Meeting: Tuesday, June 13th @ 7 p.m.

Council And Staff General Comments

Councilmen Sjolander thanked Public Works Superintendent Ehrich and Police Chief Sjoblom for their recent work.

Councilmen Helgeson discussed the upcoming Farmers Market.

City Administrator Vahlsing welcomed new Finance Director Kelly Perry and thanked Deputy Clerk/administrative assistant Holli Gudknecht, Administrative Assistant Linda Bean and Sue Dodds for their work in the interim of the hiring of a new finance director. Chief Jeff Sjoblom stated that the city had been awarded a grant for new defibrillator units.

Motion

Motion by Helgeson second by Bailey to adjourn the meeting at 8:05p.m.

Motion carried 4-0-0
Mark Vahlsing, City Administrator Douglas Henke, Mayor

AGENDA ITEM NO. VI.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: June 13, 2023
SUBMITTED BY: Mark Vahlsing, Engineering
ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: 2023 Street Maintenance (Sealing) project
Approve quote of Corrective Asphalt Materials. $34,935

Motion Needed

SUGGESTED ACTION: Street maintenance is conducted projects annually consisting of chip sealing or crack filling of paved streets. This maintenance work is performed on street in good condition. Fort 2023 the City Engineer is proposing a different type of street maintenance with a product called "Reclamite". This process has been utilized by other cites in Minnesota. Further information from the City Engineer is attached.

Attachments:

01.1_2023 Street Maintenance Project.pdf 01.2_CAM Proposal.pdf

12 2023 Street Maintenance Project The city budgets for street maintenance projects annually. Most commonly, these projects consist of chip sealing or crack filling of asphalt streets. This type of maintenance work is performed on good condition streets and the work helps to ensure that life cycle costs of streets are maximized.

This year, we are proposing a slightly different form of street maintenance. The attached proposal is for the application of a product called "Reclamite". This is a proprietary product from Corrective Asphalt Materials, out of South Roxanna, IL. Each year, this contractor mobilizes to the Minnesota to perform this same work for several larger cities near the metro.

Reclamite works by rejuvenating the flexible characteristics of asphalt and sealing the surface from moisture. This product can only be used on pavements less than 5 years old; therefore, the project area consists of recent projects (Red Wing Ave, Engel Drive, Centennial Drive, etc. – See attached map). Although this product is new to Kenyon, it has been tried and true for a decade or more for many cities in Minnesota with good results. In comparison to more traditional chip sealing, long term maintenance costs appear to be 20%-30% less for Reclamite. Supplemental information is attached.

We solicited for quotes on the work and one proposal was received, as expected when using a proprietary product. The attached proposal from Corrective Asphalt Materials in the amount of $34,935 is recommended for approval. The city budgeted approximately $45,000 for maintenance in 2023 – the savings will be used by public works to perform some additional pavement repairs in town.

Requested Action: Motion approving Proposal from Corrective Asphalt Materials for the 2023 Street Maintenance Project.

H:\KENYON_CI_MN\_General\Council Meetings\2023\06 - June 2023\01.1_2023 Street Maintenance Project.docx

13 2023 2023 Street Street Maintenance Rejuvenator Project

Project Location

May 11, 2023 1:7,200

Estimated Quantities

0 0.05 0.1 0.2 mi Goodhue County Roads 0 0.07 0.15 0.3 km CEM; ; OCTY; OCRLN; CTRLN CSAHP; CRP SHWY City of Kenyon, MN Page 1 of 3 Derek Olinger 14 May 17, 2023

Derek Olinger, P.E. Bolton & Menk, Inc. Derek.Olinger@bolton-menk.com

Re: City of Kenyon

709 2nd St. Kenyon, MN. 55946

Corrective Asphalt Materials, LLC, (CAM) thanks you for the opportunity to bid the City of Kenyon Asphalt Preservation Project. Please accept the following as our formal proposal to apply Reclamite Maltene Based Rejuvenating Agent to selected asphalt pavement.

 Apply Reclamite to 29,000 SY of selected asphalt pavement  CAM's responsibilities: o Furnish and apply Reclamite o Furnish and apply lime screenings o All traffic control and signs related to project o Street Sweeping post application o Posting of no parking signs as needed o Handle any complaints or issues that may arise from application

 Unit Price: $1.13 SY Price: $32,770.00

 Mobilization Add: $1,165.00 Total = $34,935 Mike Sumrall, Operations Manager will be contacting you to schedule the project. Info: mike@cammidwest.com Cell: 630-465-4142

Billing Information (please fill out upon acceptance)

Name : ____________________________ Address: _________________________________
Phone Number: _____________________ _________________________________

Again, thank you for the opportunity. We look forward to providing our professional services.

Sincerely,

Michael Sumrall Colleen West

Operations Manager Business Development

Approved By:

Sign Date

15 orrective The Science of Proactive Asphalt Rejuvenation

sphalt Airports • Roadways Utilities • Parking Areas aterials Reclamite® Petroleum Maltene-Based Rejuvenating Agent What is Reclamite? According to the National Center for Pavement Preservation "a true asphalt rejuvenator is a maltene-based petroleum product which has the ability to absorb or penetrate into an asphaltic concrete pavement and restore those reactive components (maltenes) that have been lost from the asphalt cement binder due to the natural process of oxidation." Reclamite comprises the same maltene fractions as the asphalt binder. Reclamite is refined from a naphthenic (wax free) base that seals and preserves the surface "in-depth".

How does it work? Reclamite has been used for more than 50 years and is proven to add 5-7 years service life to pavements. It penetrates, rejuvenates and seals the surface by replenishing the lost maltene fraction in the asphalt binder. Maltene is necessary to make the surface durable and flexible. Reclamite fluxes with the asphalt binder, restoring the aggregate/asphalt bond. When should Reclamite be used? Reclamite prevents raveling and stripping and, by densifying Reclamite is a "top-of-the-curve" application. Apply to newer the pavement's surface, it helps address compaction issues, pavement (less than six years old in northern climates, less reduces surface permeability, and prevents air and moisture than ten years old in southern climates) that shows minimal intrusion. It adjusts viscosity and penetration values. It does signs of surface deterioration. not contain degreasers, solvents or creosotes.

Pavement Treated with Reclamite
Road treated with Reclamite

Road with no Maintenance Road with microsurface or chip seal Serviceability

Major Rehabilitation Needed
Service Life Added
Pavement Lifetime

Main Office (800) 374-5560 • CorrectiveAsphalt.com How is Reclamite applied? Reclamite is sprayed like a fog seal. The emulsion is diluted with water to 60 percent Reclamite. Application rates average between .05-.08 gallons per square yard. It is applied in one pass, has a 20-45 minute cure time and leaves no surface coating. Then a light coating of sand or limestone screening is applied (1-2 pounds per square yard). The screenings are swept between 1-2 days after application. Striping is not compromised and remains visible throughout the application process.

Application of Reclamite
Cost Comparison Over Time

$500,000 $450,000 HMA Seal Maintenance $400,000 HMA Overlay 39% Cost $350,000 Traditional Savings

Cost

$300,000 Method Cost $250,000 $200,000 $150,000 $100,000 Reclamite $50,000 Method Cost $0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61

Source: Town of Avon, Indiana Preservation Study. Schneider Engineering Case Study

Presented at Purdue University www.youtube.com/watch?v=dYlDAA2Ey4k

Avon Paser Avg. 1999-2013

7.8 Paved in 2008 Paved in 2007. Treated with 7.7 No treatment Reclamite in 2007 7.6 7.5 7.4 7.3 7.2 7.1 7 6.9 1999 2004 2008 2013

Paser Avg.

Untreated vs.Treated Chart shows average Paser ratings increasing after Reclamite program was initiated

Photo taken in November 2015

Main Office (800) 374-5560 • CorrectiveAsphalt.com Lakeville Reclamite Demo-8/20/2019 Innsbrook @ Ipava Ave Paved 2018 & Appled at .06 gal/sy

Application 5 Minutes

Minutes 18 Minutes Sanded at 18 Minutes

18 2 Weeks Post Treatment 8 Weeks Post Treatment

Edina Reclamite- 4 Weeks Post Treatment Bush Lake Road

Treated

Untreated Untreated Treated

Rejuvenator – Lombard, IL Year 7 vs. Year 9

Photo taken in 2015 Photo taken in 2015

• Village of Lombard – paved in 2008, treated in 2009

Photo taken in 2017 Photo taken in 2017 21 AGENDA ITEM NO. VI.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: June 13, 2023
SUBMITTED BY: Mark Vahlsing, Engineering
ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: Pearl Creek Sanitary Sewer Improvements

1. Update on Easements for project 2. Approve Resolution 2023- Approving low bidder for Pearl Creek Sewer project

SUGGESTED ACTION: The city received three bids for the project. The low bidder was BCM Construction of Faribault. Their bid was $1,222,220.22. The engineer's estimate was $1,510,165. A summary of the bids received and the resolution approving the low bidder is attached. Due to the low bid received staff would also recommend approving the low bid and Alternate 1. MOTION NEEDED

Attachments:

02.3_Pearl Creek Bid Recommendation Letter.pdf 02.1_2023 Project Summary.pdf Resolution 2023-12 Pearl Creek_Accepting Bid.docx

June 8, 2023

Mark Vahlsing

City Administrator City of Kenyon 709 2nd Street Kenyon, MN 55946

RE: Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements

City of Kenyon, MN BMI Project No. 0H1.126462

Dear Mark:

Bids were received and opened at City Hall on Thursday, June 8, 2023 at 10:00am for the project referenced above. Three bids were received and the results of the bids are tabulated below:

Total Base and

Bidder Base Bid Amount Alternate 1 Amount Alternate 1 Amount: BDM Construction C $1,222,222.22 $19,272.00 $1,241,494.22 Minger Construction Co $1,306,427.90 $21,294.00 $1,327,721.90 Heselton Construction LLC $1,362,495.00 $22,660.00 $1,385,155.00

Engineer's Estimate $1,510,165.00 $25,900.00 $1,536,065.00

A detailed bid abstract of all the bids is enclosed. If deemed financially feasible, we recommend awarding the contract to BCM Construction.

Please feel free to contact me if you have any questions.

Sincerely, Bolton & Menk, Inc.

Derek Olinger, PE

City Engineer Enclosures

H:\KENYON_CI_MN\0H1126462\6_Plans-Specs\C_Bids Received\126462 Recommendation Letter for Bid Award 06-08-2023.docx

ABSTRACT OF BIDS 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVEMENTS CITY OF KENYON, MINNESOTA BMI PROJECT NO. 0H1.126462

Bid Date: 6 / 8 / 2023

TIME: 10:00 AM

Engineer's Estimate BCM Construction Minger Construction Co Inc Heselton Construction LLC ITEM MnDOT APPROX. Bolton & Menk, Inc. Faribault, MN Jordan, MN Faribault, MN NO. SPEC NO ITEM QUANT. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT

Section A - Site Improvements & Restoration

1 2021.501 MOBILIZATION 1 LS $ 85,000.00 $ 85,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 65,000.00 $ 65,000.00

2 2101.501 CLEARING AND GRUBBING 1 LS $ 5,000.00 $ 5,000.00 $ 13,125.00 $ 13,125.00 $ 15,000.00 $ 15,000.00 $ 22,500.00 $ 22,500.00

3 2104.507 REMOVE RIPRAP (P) 75 CY $ 20.00 $ 1,500.00 $ 21.00 $ 1,575.00 $ 20.00 $ 1,500.00 $ 45.00 $ 3,375.00

4 2106.601 SITE GRADING 1 LS $ 25,000.00 $ 25,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 46,000.00 $ 46,000.00

5 2108.504 GEOGRID TYPE 1 1130 SY $ 3.00 $ 3,390.00 $ 1.75 $ 1,977.50 $ 3.80 $ 4,294.00 $ 2.50 $ 2,825.00

6 2118.509 AGGREGATE SURFACING CLASS 2 630 TON $ 30.00 $ 18,900.00 $ 25.00 $ 15,750.00 $ 28.00 $ 17,640.00 $ 24.00 $ 15,120.00

7 2531.501 PAVEMENT/CURB/DRIVEWAY PATCHING 1 LS $ 52,000.00 $ 52,000.00 $ 26,500.00 $ 26,500.00 $ 57,000.00 $ 57,000.00 $ 100,000.00 $ 100,000.00

8 2531.504 6" CONCRETE DRIVEWAY (REINFORCED) 160 SY $ 90.00 $ 14,400.00 $ 114.00 $ 18,240.00 $ 95.00 $ 15,200.00 $ 120.00 $ 19,200.00

9 2540.602 BOLLARD 4 EA $ 200.00 $ 800.00 $ 252.00 $ 1,008.00 $ 920.00 $ 3,680.00 $ 1,650.00 $ 6,600.00

10 2563.601 TRAFFIC CONTROL 1 LS $ 5,000.00 $ 5,000.00 $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 4,000.00 $ 4,000.00

11 2575.601 EROSION & SEDIMENTATION CONTROL 1 LS $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 10,500.00 $ 10,500.00 $ 16,000.00 $ 16,000.00

12 2575.601 STABILIZE & REESTABLISH TURF 1 LS $ 36,300.00 $ 36,300.00 $ 15,000.00 $ 15,000.00 $ 34,000.00 $ 34,000.00 $ 26,000.00 $ 26,000.00

13 2123.610 EXPLORATORY EXCAVATION 10 HOUR $ 500.00 $ 5,000.00 $ 400.00 $ 4,000.00 $ 750.00 $ 7,500.00 $ 450.00 $ 4,500.00

CONSTRUCTION ALLOWANCE 35000 UNIT $ 1.00 $ 35,000.00 $ 1.00 $ 35,000.00 $ 1.00 $ 35,000.00 $ 1.00 $ 35,000.00

Section B - Sanitary Sewer Improvements

15 2104.502 HWY 60 MH & PIPE DISCONNECTIONS 1 LS $ 8,500.00 $ 8,500.00 $ 8,000.00 $ 8,000.00 $ 11,000.00 $ 11,000.00 $ 11,000.00 $ 11,000.00

16 2104.502 REMOVE MANHOLE (SANITARY) 3 EACH $ 650.00 $ 1,950.00 $ 1,500.00 $ 4,500.00 $ 1,825.00 $ 5,475.00 $ 5,400.00 $ 16,200.00

17 2106.507 EXCAVATION - ROCK 180 CY $ 150.00 $ 27,000.00 $ 84.00 $ 15,120.00 $ 91.00 $ 16,380.00 $ 150.00 $ 27,000.00

18 2106.601 DEWATERING 1 LS $ 100,000.00 $ 100,000.00 $ 20,000.00 $ 20,000.00 $ 2,500.00 $ 2,500.00 $ 13,000.00 $ 13,000.00

19 2503.602 CONNECT TO EXISTING SANITARY SEWER MAIN 2 EACH $ 2,000.00 $ 4,000.00 $ 875.00 $ 1,750.00 $ 3,795.00 $ 7,590.00 $ 1,500.00 $ 3,000.00

20 2503.602 CONNECT TO EXISTING SANITARY SEWER SERVICE 2 EACH $ 500.00 $ 1,000.00 $ 600.00 $ 1,200.00 $ 2,555.00 $ 5,110.00 $ 1,500.00 $ 3,000.00

21 2502.602 6" PVC PIPE DRAIN CLEANOUT 3 EACH $ 550.00 $ 1,650.00 $ 400.00 $ 1,200.00 $ 865.00 $ 2,595.00 $ 2,300.00 $ 6,900.00

22 2503.603 8" PVC PIPE SEWER (CREEK CROSSING) 157 LF $ 900.00 $ 141,300.00 $ 1,400.00 $ 219,800.00 $ 900.00 $ 141,300.00 $ 260.00 $ 40,820.00

23 2503.603 8" PVC PIPE SEWER 280 LF $ 150.00 $ 42,000.00 $ 90.00 $ 25,200.00 $ 157.50 $ 44,100.00 $ 110.00 $ 30,800.00

24 2503.603 6" PVC SANITARY SERVICE PIPE 304 LF $ 100.00 $ 30,400.00 $ 102.00 $ 31,008.00 $ 110.50 $ 33,592.00 $ 112.00 $ 34,048.00

25 2503.603 4" FORCE MAIN PIPE 1274 LF $ 75.00 $ 95,550.00 $ 37.00 $ 47,138.00 $ 46.75 $ 59,559.50 $ 98.00 $ 124,852.00

26 2503.604 4" INSULATION 25 SY $ 30.00 $ 750.00 $ 65.00 $ 1,625.00 $ 61.60 $ 1,540.00 $ 78.00 $ 1,950.00

27 2506.502 CONST DRAINAGE STRUCTURE DES 4007 (MH A) 1 EACH $ 10,200.00 $ 10,200.00 $ 7,000.00 $ 7,000.00 $ 17,615.00 $ 17,615.00 $ 17,000.00 $ 17,000.00

28 2506.502 CONST DRAINAGE STRUCTURE (MH B - AIR/VAC RELEASE) 1 EACH $ 33,200.00 $ 33,200.00 $ 5,500.00 $ 5,500.00 $ 13,850.00 $ 13,850.00 $ 11,500.00 $ 11,500.00

29 2506.502 CONST DRAINAGE STRUCTURE DES 4007 (MH C) 1 EACH $ 11,500.00 $ 11,500.00 $ 8,200.00 $ 8,200.00 $ 9,575.00 $ 9,575.00 $ 13,750.00 $ 13,750.00

Abstract 6/8/2023, 11:19 AM Bolton & Menk, Inc. Page 1 of 2

ABSTRACT OF BIDS 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVEMENTS CITY OF KENYON, MINNESOTA BMI PROJECT NO. 0H1.126462

Bid Date: 6 / 8 / 2023

TIME: 10:00 AM

Engineer's Estimate BCM Construction Minger Construction Co Inc Heselton Construction LLC ITEM MnDOT APPROX. Bolton & Menk, Inc. Faribault, MN Jordan, MN Faribault, MN NO. SPEC NO ITEM QUANT. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT

30 2506.502 CONST DRAINAGE STRUCTURE DES 4007 (MH D) 1 EACH $ 11,100.00 $ 11,100.00 $ 8,000.00 $ 8,000.00 $ 9,330.00 $ 9,330.00 $ 11,250.00 $ 11,250.00

31 2506.502 REPLACE & ADJUST CASTING 1 EACH $ 1,100.00 $ 1,100.00 $ 1,350.00 $ 1,350.00 $ 2,350.00 $ 2,350.00 $ 1,750.00 $ 1,750.00

32 2506.502 CONSTRUCT 8" INSIDE DROP (MH C) 1 EACH $ 12,000.00 $ 12,000.00 $ 4,500.00 $ 4,500.00 $ 4,390.00 $ 4,390.00 $ 6,500.00 $ 6,500.00

33 2506.502 CONSTRUCT 8" INSIDE DROP (MH D) 1 EACH $ 7,000.00 $ 7,000.00 $ 4,500.00 $ 4,500.00 $ 4,390.00 $ 4,390.00 $ 6,500.00 $ 6,500.00

34 2506.601 SANITARY SEWER TRACER SYSTEM 1 LS $ 2,500.00 $ 2,500.00 $ 3,000.00 $ 3,000.00 $ 925.00 $ 925.00 $ 1,500.00 $ 1,500.00

35 2503.601 LIFT STATION & VALVE VAULT 1 LS $ 415,000.00 $ 415,000.00 $ 235,090.22 $ 235,090.22 $ 288,775.00 $ 288,775.00 $ 270,000.00 $ 270,000.00

36 2545.601 ELECTRICAL (POWER EXTEN, BACKUP GEN, CONTROL, LIGHT, CONCRETE PADS) 1 LS $ 140,000.00 $ 140,000.00 $ 200,000.00 $ 200,000.00 $ 210,000.00 $ 210,000.00 $ 182,000.00 $ 182,000.00

GAS SERVICE ALLOWANCE 8000 UNIT $ 1.00 $ 8,000.00 $ 1.00 $ 8,000.00 $ 1.00 $ 8,000.00 $ 1.00 $ 8,000.00

Section C - Water & Electrical System Improvements

38 2504.602 DISCONNECT EXISTING WATER MAIN 1 EACH $ 1,500.00 $ 1,500.00 $ 500.00 $ 500.00 $ 2,955.00 $ 2,955.00 $ 2,000.00 $ 2,000.00

39 2504.602 CONNECT TO EXISTING WATER MAIN 5 EACH $ 700.00 $ 3,500.00 $ 1,000.00 $ 5,000.00 $ 2,130.00 $ 10,650.00 $ 2,000.00 $ 10,000.00

40 2504.602 HYDRANT (9' BURY) 1 EACH $ 7,000.00 $ 7,000.00 $ 6,500.00 $ 6,500.00 $ 6,895.00 $ 6,895.00 $ 6,800.00 $ 6,800.00

41 2504.602 4" GATE VALVE AND BOX 1 EACH $ 2,600.00 $ 2,600.00 $ 2,000.00 $ 2,000.00 $ 2,160.00 $ 2,160.00 $ 2,400.00 $ 2,400.00

42 2504.602 6" GATE VALVE AND BOX 2 EACH $ 2,800.00 $ 5,600.00 $ 2,250.00 $ 4,500.00 $ 2,530.00 $ 5,060.00 $ 2,750.00 $ 5,500.00

43 2504.602 8" GATE VALVE AND BOX 1 EACH $ 3,600.00 $ 3,600.00 $ 3,000.00 $ 3,000.00 $ 3,880.00 $ 3,880.00 $ 3,600.00 $ 3,600.00

44 2504.603 4" WATERMAIN 16 LF $ 65.00 $ 1,040.00 $ 100.00 $ 1,600.00 $ 81.25 $ 1,300.00 $ 195.00 $ 3,120.00

45 2504.603 6" WATERMAIN 20 LF $ 70.00 $ 1,400.00 $ 100.00 $ 2,000.00 $ 85.75 $ 1,715.00 $ 200.00 $ 4,000.00

46 2504.603 8" WATERMAIN 615 LF $ 75.00 $ 46,125.00 $ 70.00 $ 43,050.00 $ 55.80 $ 34,317.00 $ 95.00 $ 58,425.00

47 2504.608 WATERMAIN FITTINGS 654 LB $ 15.00 $ 9,810.00 $ 13.25 $ 8,665.50 $ 12.60 $ 8,240.40 $ 15.00 $ 9,810.00

48 2504.601 WATERMAIN TRACER SYSTEM 1 LS $ 1,500.00 $ 1,500.00 $ 2,500.00 $ 2,500.00 $ 675.00 $ 675.00 $ 1,500.00 $ 1,500.00

49 2545.503 6" NON-METALLIC CONDUIT 650 LF $ 30.00 $ 19,500.00 $ 57.00 $ 37,050.00 $ 40.50 $ 26,325.00 $ 56.00 $ 36,400.00

50 2545.602 ELECTRICAL VAULT MANHOLE 1 EACH $ 2,000.00 $ 2,000.00 $ 10,500.00 $ 10,500.00 $ 11,500.00 $ 11,500.00 $ 10,500.00 $ 10,500.00

TOTAL BASE BID AMOUNT: $ 1,510,165.00 $ 1,222,222.22 $ 1,306,427.90 $ 1,362,495.00

Alternate 1 - Ls Site Paving

1.01 2021.501 PAVING MOBILIZATION 1 LS $ 2,500.00 $ 2,500.00 $ 1,800.00 $ 1,800.00 $ 1,950.00 $ 1,950.00 $ 1,600.00 $ 1,600.00

1.02 2360.509 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) (SINGLE 3" LIFT) 156 TON $ 150.00 $ 23,400.00 $ 112.00 $ 17,472.00 $ 124.00 $ 19,344.00 $ 135.00 $ 21,060.00

TOTAL ALTERNATE 1 BID AMOUNT: $ 25,900.00 $ 19,272.00 $ 21,294.00 $ 22,660.00

TOTAL BASE AND ALTERNATE 1 BID AMOUNT: $ 1,536,065.00 $ 1,241,494.22 $ 1,327,721.90 $ 1,385,155.00

Abstract 6/8/2023, 11:19 AM Bolton & Menk, Inc. Page 2 of 2

CITY OF KENYON, MINNESOTA CONSTRUCTION PLANS FOR 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVEMENTS FORCEMAIN & GRAVITY SANITARY SEWER, WATERMAIN, LIFT STATION, GRADING, EROSION CONTROL & TURF ESTABLISHMENT, PAVEMENT PATCHING

May 2023

RESOURCE LIST UTILITIES

City Of Kenyon Gas

Minnesota Energy Resources

City Hall Tom Livingston 6 TH 60 SHEET NUMBER SHEET TITLE 709 Second Street Kenyon, MN 55946 507-529-5129 TH 5 GENERAL Northern Natural Gas Phone: 507-789-6415 Kay Klemmer G0.01 - G0.02 TITLE SHEET & LEGEND 507-456-1137 City Administrator: R G1.01 STATEMENT OF ESTIMATED QUANTITIES IVE Mark Vahlsing TELEPHONE R G2.01 LOCATION & TRAFFIC CONTROL PLAN BRO Mayor: Doug Henke Frontier Communications

ZUM Richard Schrantz (Mi-Tech) 612-368-9068 ORK City Council Members: Kim Helgeson NF 0 CIVIL /6 Molly Ryan CenturyLink

David Haedtke Mary Bailey C0.01 - C0.03 EXISTING CONDITIONS & REMOVAL PLAN TH Lee Sjolander 769-786-0750 EK City Engineer: Jaguar Communications LC RE C1.01 LIFT STATION DETAILS Derek Olinger, P.E. Michael S. Broadwater Bolton & Menk, Inc. 507-214-0236 AR C1.02 SANITARY SEWER DETAILS 2900 43rd St NW, Suite 100 C1.03 WATER SYSTEM DETAILS T SLEE S Rochester, MN 55901 CABLE PE 507-525-2685 Mediacom derek.olinger@bolton-menk.com Paul Cousineau C1.04 SURFACE & RESTORATION DETAILS 507-456-1745 Utility Superintendent (Electric & C1.05 EROSION & SEDIMENT CONTROL DETAILS REET PROJECT LOCATION Water): Randy Eggert C1.06 - C1.08 TRACER WIRE DETAILS 507-838-6023 utility@cityofkenyon.com C2.01 - C2.05 SWPPP, EROS & SEDIMENT CONTROL PLAN ET S STRE C3.01 GRADING & SITE PLAN CROS Public Works Director (Street & Sewer): Wayne Ehrich C4.01 - C4.04 PEARL CREEK SANITARY SEWER PLAN & PROFILE 507-273-1953 MART STREET C4.05 GATES AVE UTILITY PLAN & PROFILE publicworks@cityofkenyon.com

Electrical

T S TREE E1.01 ELECTRICAL SYMBOLS AND ABBREVIATIONS PINE STREET PINE E1.02 LIFT STATION ELECTRICAL PLAN E1.03 - E1.04 ELECTRICAL DETAILS

Red Wing Ave Langford Ave

NOTE: EXISTING UTILITY INFORMATION SHOWN ON THIS

PLAN HAS BEEN PROVIDED BY THE UTILITY OWNER. THE CONTRACTOR SHALL FIELD VERIFY EXACT LOCATIONS PRIOR TO COMMENCING CONSTRUCTION AS REQUIRED BY STATE PEA THIS PLAN SET CONTAINS 30 SHEETS. LAW. NOTIFY GOPHER STATE ONE CALL, 1-800-252-1166 OR

Gates Ave

651-454-0002. RL THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS CRE UTILITY QUALITY LEVEL D UNLESS OTHERWISE NOTED. THIS EK UTILITY LEVEL WAS DETERMINED ACCORDING TO THE TH 60 2ND STREET GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF CSAH 12 0 250 500 EXISTING SUBSURFACE UTILITY DATA." R SCALE FEET

Kenyon

c Bolton & Menk, Inc. 2023, All Rights Reserved MAP LEGEND CS BUSINESS AH PARK MAP OF THE CITY OF KENYON TH 12 GOODHUE COUNTY, MN PROJECT LIMITS CITY HALL 56 PUBLIC WORKS SHOP HOME STREET PROJECT DATUM: RECORD DRAWING INFORMATION

H:\KENYON_CI_MN\0H1126462\CAD\C3D\126462G001.dwg 5/26/2023 7:53:18 PM

OBSERVER:

Horizontal:

2011 Goodhue County Coordinate System CONTRACTOR:

Vertical: Date:

NAVD 1988 in Feet

City Of Kenyon, Minnesota

DESIGNED NO. ISSUED FOR DATE

I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED DPO SHEET BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED 2900 43RD STREET NW, SUITE 100 1 BID 05/27/2023 PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. DRAWN ROCHESTER, MINNESOTA 55901

Derek P. Olinger

Phone: (507) 208-4332 Email: Rochester@bolton-menk.com CHECKED LW DPO 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVEMENTS G0.01 54287 05/09/2023 R www.bolton-menk.com CLIENT PROJ. NO. TITLE SHEET LIC. NO. DATE 0H1.126462 26 2023 Project Summary 2023 Street Improvements and 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements

Easements – Pearl Creek Sanitary Sewer

Over this past month, we have continued negotiations with property owners to acquire easements. Several minor plan revisions have been made to accommodate owner requests to date. Some additional modifications may still be required before we have agreements ready for council consideration.

If the council elects to award contracts at the upcoming meeting, it will be several months before the contractor will be able to start due to equipment lead-times. No work would actually be allowed to begin until easements are acquired.

Bids Received

On Thursday June 8th, we opened bids for both the 2023 Street Project and the Pearl Creek Sewer Project. Three bids were received for each project and pricing came in well below our previous estimates. The low bid for the projects is provided below:

Project Engineer's Estimate Low Bid

2023 Street Improvements $547,705.00 $450,693.95 (18% less) (Bituminous Materials, Inc - Faribault, MN) Pearl Creek Sanitary/Gates Ave Utility $1,536,065.00 $1,241,494.22 (19% less) (BCM Construction - Faribault, MN) Note: Costs above include base bid and all alternates.

Additional details for all bids received are included in the attached bid recommendation letters.

Funding Total project cost summaries have been updated with the low bid pricing and are provided below.

Project Component Revenue Source

Streets/General Sanitary Sewer Water Electric Construction $451,000 $1,072,000 $122,000 $48,000 Contingency $14,000 $32,000 $2,000 $2,000 Eng, Admin, Easements $125,000 $413,000 $33,000 $5,000 Financing $19,000 $48,000 $5,000 $0 Totals $608,000 $1,566,000 $163,000 $54,000

Total Project Cost $2,390,000

Bond Amount $2,337,000 ~$250,000 less than March 2023 Financing update Notes: Costs rounded to nearest $1,000. Gates Ave electrical work will not be financed. Costs assume all alternates are awarded.

It should be noted that awarding both alternates for the 2023 street project (State St and Washington St in SEMMCRA development) will cause an ~18% increase in street spending, in comparison to previous projections. This is because the state and Washington Street alternates were previously estimated to be beyond the amount approved in the 2022 CIP. The council may consider awarding both alternates given the low pricing and poor condition of those streets.

H:\KENYON_CI_MN\_General\Council Meetings\2023\06 - June 2023\02.1_2023 Project Summary.docx

Page: 2

Sanitary sewer costs will see a ~20% decrease, which will help to bring this project closer to original projections in the 2022 CIP.

The City's financial advisor will be present during the July meeting to review the bond sale for this year's projects. Final bond sizing will depend on the awarded alternates. If the council elects to delay awarding any of the contracts, it would be appropriate to specify the desired alternates so we can continue the project financing process.

Council Actions:  Approve Resolution Accepting Bid: 2023 Street Improvements o Specify award for Alternate 1 (State Street) and Alternate 2 (Washington Street)

 Approve Resolution Accepting Bid: 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements o Specify award for Alternate 1 (Lift Station Driveway Paving)

RESOLUTION 2023-12

City Of Kenyon

COUNTY OF GOODHUE

STATE OF MINNESOTA

Resolution Accepting Bid

2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVEMENTS

WHEREAS, pursuant to an advertisement for bids for the 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements project, including the rerouting of the Pearl Creek sanitary sewer main via lift station and forcemain, and the extension of new watermain and electrical conduit near Gates Avenue, bids were received, opened, and tabulated according to the law, and the following bids were received complying with the advertisement: Alternate 1 (Pave Lift Station Bidder Base Bid Driveway) BCM Construction, Inc. $1,222,222.22 $19,272.00 Minger Construction Co $1,306,427.90 $21,294.00 Heselton Construction LLC $1,362,495.00 $22,660.00

AND WHEREAS, it appears that BCM Construction, Inc. of Faribault, MN is the lowest responsible bidder,

Now Therefore, Be It Resolved By The City Council Of Kenyon, Minnesota:

1. The mayor and city administrator are hereby authorized and directed to enter into the attached contract with BCM Construction, Inc. of Faribault, MN in the name of the city of Kenyon for the 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements project according to the plans and specifications therefor approved by the city council and on file at City Hall. 2. The city council hereby authorizes the following portions of work: Project Component Awarded Base Bid _______ Alternate 1 (Pave Lift Station Driveway) _______

3. Authorization to proceed with Gates Ave utility work is contingent upon KMU approval. 4. The city administrator is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the City Council of the City of Kenyon on this 13th day of June, 2023.

__________________________ Douglas Henke, Mayor ATTEST:

_____________________________ Mark Vahlsing, City Administrator

AGENDA ITEM NO. VI.C

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: June 13, 2023
SUBMITTED BY: Mark Vahlsing, Engineering
ITEM TYPE: Engineering

Agenda Section: Engineering

Subject:

2023 Street Improvement Project

1. Approve Resolution 2023- Approving low bidder for the Street improvement project.

SUGGESTED ACTION: The city received three bids for the project. The low bidder was Bituminous Materials Inc of Faribault in the amount of $344,862. The engineers estimate for the project was $406,591. A summary of the bids received and the resolution approving the low bidder is attached. Due to the low bid received staff would also recommend approving Alternates 1 and 2. MOTION NEEDED

Attachments:

02.2_2023 Streets Bid Recommendation Letter.pdf 02.1_2023 Project Summary.pdf Resolution 2023-09 Approving PlanSpec Street project-Ordering Bid Advertisement.docx

June 8, 2023

Mark Vahlsing

City Administrator City of Kenyon 709 2nd Street Kenyon, MN 55946

RE: 2023 Street Improvements

City of Kenyon, MN BMI Project No. 0H1.127340

Dear Mark:

Bids were received and opened at City Hall on Thursday, June 8, 2023 at 10:00am for the project referenced above. Three bids were received and the results of the bids are tabulated below:

Base Bid Alternate 1 Alternate 2 Total Base Bid &

Bidder Amount State St Washington St Alternates Bituminous Materials Inc $340,862.40 $53,594.20 $56,237.35 $450,693.95 Crane Creek Asphalt $349,839.39 $55,427.62 $58,318.61 $463,585.62 SL Contracting Inc $396,754.10 $67,249.00 $71,434.50 $535,437.60

Engineer's Estimate $406,591.00 $69,816.00 $71,298.00 $547,705.00

A detailed bid abstract of all the bids is enclosed. If deemed financially feasible, we recommend awarding the contract to Bituminous Materials Inc.

Please feel free to contact me if you have any questions.

Sincerely, Bolton & Menk, Inc.

Derek Olinger, PE

City Engineer Enclosures

H:\KENYON_CI_MN\0H1127340\6_Plans-Specs\C_Bids Received\127340 Recommendation Letter for Bid Award 06-08-2023.docx

ABSTRACT OF BIDS 2023 STREET IMPROVEMENTS CITY OF KENYON, MINNESOTA BMI PROJECT NO. 0H1.127340

Bid Date: 6 / 8 / 2023

TIME: 10:15 AM

Engineer's Estimate Bituminous Materials Inc Crane Creek Asphalt SL Contracting Inc ITEM MnDOT APPROX. Bolton & Menk, Inc. Faribault, MN Faribault, MN Rochester, MN NO. SPEC NO ITEM QUANT. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT

Base Bid

1 2021.501 MOBILIZATION 1 LS $ 30,000.00 $ 30,000.00 $ 20,000.00 $ 20,000.00 $ 30,632.00 $ 30,632.00 $ 40,000.00 $ 40,000.00

2 2104.503 SAWING CONCRETE PAVEMENT (FULL DEPTH) 60 LF $ 4.00 $ 240.00 $ 7.00 $ 420.00 $ 5.50 $ 330.00 $ 10.00 $ 600.00

3 2104.503 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) 570 LF $ 4.00 $ 2,280.00 $ 4.00 $ 2,280.00 $ 1.80 $ 1,026.00 $ 4.00 $ 2,280.00

4 2104.503 REMOVE CURB AND GUTTER OR VALLEY GUTTER 465 LF $ 8.00 $ 3,720.00 $ 9.50 $ 4,417.50 $ 6.00 $ 2,790.00 $ 10.00 $ 4,650.00

5 2104.504 REMOVE CONCRETE DRIVEWAY OR WALK 73 SY $ 8.00 $ 584.00 $ 8.50 $ 620.50 $ 15.00 $ 1,095.00 $ 15.00 $ 1,095.00

6 2104.504 REMOVE BITUMINOUS PAVEMENT 545 SY $ 6.00 $ 3,270.00 $ 6.75 $ 3,678.75 $ 9.00 $ 4,905.00 $ 4.00 $ 2,180.00

7 2106.507 EXCAVATION - SUBGRADE 180 CY $ 20.00 $ 3,600.00 $ 19.00 $ 3,420.00 $ 33.00 $ 5,940.00 $ 17.00 $ 3,060.00

8 2106.507 STABILIZING AGGREGATE (CV) 180 CY $ 50.00 $ 9,000.00 $ 31.50 $ 5,670.00 $ 45.00 $ 8,100.00 $ 45.00 $ 8,100.00

9 2106.619 MINOR GRADING & EXCAVATION 11.32 ROAD STA $ 1,500.00 $ 16,980.00 $ 600.00 $ 6,792.00 $ 750.00 $ 8,490.00 $ 595.00 $ 6,735.40

10 2118.509 AGGREGATE SURFACING CLASS 2 45 TON $ 30.00 $ 1,350.00 $ 23.25 $ 1,046.25 $ 50.00 $ 2,250.00 $ 30.00 $ 1,350.00

11 2211.504 AGGREGATE BASE REGRADE/REPAIR 80 SY $ 50.00 $ 4,000.00 $ 20.50 $ 1,640.00 $ 50.00 $ 4,000.00 $ 10.00 $ 800.00

12 2231.604 BITUMINOUS PATCH SPECIAL 545 SY $ 60.00 $ 32,700.00 $ 36.90 $ 20,110.50 $ 29.00 $ 15,805.00 $ 32.00 $ 17,440.00

13 2232.504 MILL BITUMINOUS SURFACE (2") 3570 SY $ 3.00 $ 10,710.00 $ 2.25 $ 8,032.50 $ 3.95 $ 14,101.50 $ 2.20 $ 7,854.00

14 2232.504 MILL BITUMINOUS SURFACE (FULL DEPTH) 3480 SY $ 8.00 $ 27,840.00 $ 2.00 $ 6,960.00 $ 4.15 $ 14,442.00 $ 1.59 $ 5,533.20

15 2301.602 DRILL AND GROUT DOWEL BAR 98 EACH $ 15.00 $ 1,470.00 $ 18.00 $ 1,764.00 $ 16.00 $ 1,568.00 $ 20.00 $ 1,960.00

16 2357.506 BITUMINOUS MATERIAL FOR TACK COAT 489 GAL $ 3.00 $ 1,467.00 $ 3.60 $ 1,760.40 $ 0.01 $ 4.89 $ 8.50 $ 4,156.50

17 2360.509 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) 1595 TON $ 115.00 $ 183,425.00 $ 97.50 $ 155,512.50 $ 92.00 $ 146,740.00 $ 115.00 $ 183,425.00

18 2504.602 ADJUST VALVE BOX 10 EACH $ 200.00 $ 2,000.00 $ 425.00 $ 4,250.00 $ 550.00 $ 5,500.00 $ 290.00 $ 2,900.00

19 2504.602 REPLACEMENT VALVE BOX TOP SECTION 4 EACH $ 100.00 $ 400.00 $ 760.00 $ 3,040.00 $ 680.00 $ 2,720.00 $ 345.00 $ 1,380.00

20 2506.502 ADJUST FRAME & CASTING (STORM SWR CURB INLET) 1 EACH $ 600.00 $ 600.00 $ 1,150.00 $ 1,150.00 $ 1,250.00 $ 1,250.00 $ 1,400.00 $ 1,400.00

21 2506.502 ADJUST FRAME & CASTING (MH - DONUT CUTOUT) 10 EACH $ 1,000.00 $ 10,000.00 $ 2,725.00 $ 27,250.00 $ 1,650.00 $ 16,500.00 $ 3,240.00 $ 32,400.00

22 2506.502 REPLACEMENT FRAME & CASTING 3 EACH $ 600.00 $ 1,800.00 $ 685.00 $ 2,055.00 $ 1,570.00 $ 4,710.00 $ 1,100.00 $ 3,300.00

23 2506.502 CAST-IN-PLACE CURB INLET REPLACEMENT 1 EACH $ 1,000.00 $ 1,000.00 $ 1,050.00 $ 1,050.00 $ 2,500.00 $ 2,500.00 $ 2,900.00 $ 2,900.00

24 2531.503 CONCRETE CURB AND GUTTER (ALL TYPES) 365 LF $ 40.00 $ 14,600.00 $ 50.00 $ 18,250.00 $ 52.00 $ 18,980.00 $ 57.00 $ 20,805.00

25 2531.618 TRUNCATED DOMES 8 SF $ 60.00 $ 480.00 $ 62.50 $ 500.00 $ 65.00 $ 520.00 $ 70.00 $ 560.00

26 2531.504 6" CONCRETE DRIVEWAY/WALK PAVEMENT 120 SY $ 110.00 $ 13,200.00 $ 89.00 $ 10,680.00 $ 88.00 $ 10,560.00 $ 117.00 $ 14,040.00

27 2531.604 7" CONCRETE VALLEY GUTTER 85 SY $ 135.00 $ 11,475.00 $ 104.50 $ 8,882.50 $ 44.00 $ 3,740.00 $ 70.00 $ 5,950.00

28 2563.601 TRAFFIC CONTROL 1 LS $ 5,000.00 $ 5,000.00 $ 3,800.00 $ 3,800.00 $ 3,600.00 $ 3,600.00 $ 5,000.00 $ 5,000.00

29 2573.502 STORM DRAIN INLET PROTECTION 12 EACH $ 200.00 $ 2,400.00 $ 215.00 $ 2,580.00 $ 170.00 $ 2,040.00 $ 200.00 $ 2,400.00

30 2575.602 MINOR ROADSIDE GRADING & TURF RESTORATION 1 EACH $ 1,000.00 $ 1,000.00 $ 3,250.00 $ 3,250.00 $ 5,000.00 $ 5,000.00 $ 2,500.00 $ 2,500.00

N/A CONSTRUCTION ALLOWANCE 10000 UNIT $ 1.00 $ 10,000.00 $ 1.00 $ 10,000.00 $ 1.00 $ 10,000.00 $ 1.00 $ 10,000.00

BASE BID TOTAL $ 406,591.00 $ 340,862.40 $ 349,839.39 $ 396,754.10

Abstract 6/8/2023, 11:47 AM Bolton & Menk, Inc. Page 1 of 2 32 ABSTRACT OF BIDS 2023 STREET IMPROVEMENTS CITY OF KENYON, MINNESOTA BMI PROJECT NO. 0H1.127340

Bid Date: 6 / 8 / 2023

TIME: 10:15 AM

Engineer's Estimate Bituminous Materials Inc Crane Creek Asphalt SL Contracting Inc ITEM MnDOT APPROX. Bolton & Menk, Inc. Faribault, MN Faribault, MN Rochester, MN NO. SPEC NO ITEM QUANT. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT

Alternate 1 - State Street

1.01 2021.501 MOBILIZATION 1 LS $ 5,000.00 $ 5,000.00 $ 3,400.00 $ 3,400.00 $ 3,210.00 $ 3,210.00 $ 10,000.00 $ 10,000.00

1.02 2104.503 REMOVE CURB AND GUTTER 60 LF $ 8.00 $ 480.00 $ 13.25 $ 795.00 $ 6.00 $ 360.00 $ 10.00 $ 600.00

1.03 2106.507 EXCAVATION - SUBGRADE 85 CY $ 20.00 $ 1,700.00 $ 19.00 $ 1,615.00 $ 33.00 $ 2,805.00 $ 17.00 $ 1,445.00

1.04 2106.507 STABILIZING AGGREGATE (CV) 85 CY $ 50.00 $ 4,250.00 $ 33.00 $ 2,805.00 $ 45.00 $ 3,825.00 $ 45.00 $ 3,825.00

1.05 2106.619 MINOR GRADING & EXCAVATION 4.86 ROAD STA $ 1,500.00 $ 7,290.00 $ 550.00 $ 2,673.00 $ 750.00 $ 3,645.00 $ 700.00 $ 3,402.00

1.06 2232.504 MILL BITUMINOUS SURFACE (FULL DEPTH) 1240 SY $ 8.00 $ 9,920.00 $ 2.25 $ 2,790.00 $ 4.15 $ 5,146.00 $ 1.00 $ 1,240.00

1.07 2301.602 DRILL AND GROUT DOWEL BAR 6 EACH $ 15.00 $ 90.00 $ 18.00 $ 108.00 $ 16.00 $ 96.00 $ 20.00 $ 120.00

1.08 2357.506 BITUMINOUS MATERIAL FOR TACK COAT 62 GAL $ 3.00 $ 186.00 $ 3.60 $ 223.20 $ 0.01 $ 0.62 $ 8.50 $ 527.00

1.09 2360.509 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) 300 TON $ 115.00 $ 34,500.00 $ 97.50 $ 29,250.00 $ 92.00 $ 27,600.00 $ 115.00 $ 34,500.00

1.1 2504.602 ADJUST VALVE BOX 1 EACH $ 200.00 $ 200.00 $ 500.00 $ 500.00 $ 550.00 $ 550.00 $ 290.00 $ 290.00

1.11 2506.502 ADJUST FRAME & CASTING (STORM SWR CURB INLET) 1 EACH $ 600.00 $ 600.00 $ 1,150.00 $ 1,150.00 $ 1,250.00 $ 1,250.00 $ 1,500.00 $ 1,500.00

1.12 2506.502 ADJUST FRAME & CASTING (MH - DONUT CUTOUT) 1 EACH $ 1,000.00 $ 1,000.00 $ 2,650.00 $ 2,650.00 $ 1,650.00 $ 1,650.00 $ 3,400.00 $ 3,400.00

1.13 2531.503 CONCRETE CURB AND GUTTER (ALL TYPES) 60 LF $ 40.00 $ 2,400.00 $ 57.00 $ 3,420.00 $ 52.00 $ 3,120.00 $ 70.00 $ 4,200.00

1.14 2573.502 STORM DRAIN INLET PROTECTION 1 EACH $ 200.00 $ 200.00 $ 215.00 $ 215.00 $ 170.00 $ 170.00 $ 200.00 $ 200.00

1.15 N/A CONSTRUCTION ALLOWANCE 2000 UNIT $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00

ALTERNATE 1 BID TOTAL $ 69,816.00 $ 53,594.20 $ 55,427.62 $ 67,249.00

Alternate

ALTERNATE 2 -2 -WASHINGTON WASHINGTONSTREET STREET $ - $ - $ - $ - $ -

2.01 2021.501 MOBILIZATION 1 LS $ 5,000.00 $ 5,000.00 $ 3,400.00 $ 3,400.00 $ 3,189.00 $ 3,189.00 $ 10,000.00 $ 10,000.00

2.02 2104.503 REMOVE CURB AND GUTTER 80 LF $ 8.00 $ 640.00 $ 10.75 $ 860.00 $ 6.00 $ 480.00 $ 10.00 $ 800.00

2.03 2106.507 EXCAVATION - SUBGRADE 85 CY $ 20.00 $ 1,700.00 $ 18.75 $ 1,593.75 $ 33.00 $ 2,805.00 $ 17.00 $ 1,445.00

2.04 2106.507 STABILIZING AGGREGATE (CV) 85 CY $ 50.00 $ 4,250.00 $ 33.00 $ 2,805.00 $ 45.00 $ 3,825.00 $ 45.00 $ 3,825.00

2.05 2106.619 MINOR GRADING & EXCAVATION 4.73 ROAD STA $ 1,500.00 $ 7,095.00 $ 550.00 $ 2,601.50 $ 750.00 $ 3,547.50 $ 700.00 $ 3,311.00

2.06 2232.504 MILL BITUMINOUS SURFACE (FULL DEPTH) 1210 SY $ 8.00 $ 9,680.00 $ 2.00 $ 2,420.00 $ 4.15 $ 5,021.50 $ 1.00 $ 1,210.00

2.07 2301.602 DRILL AND GROUT DOWEL BAR 15 EACH $ 15.00 $ 225.00 $ 18.00 $ 270.00 $ 16.00 $ 240.00 $ 20.00 $ 300.00

2.08 2357.506 BITUMINOUS MATERIAL FOR TACK COAT 61 GAL $ 3.00 $ 183.00 $ 3.60 $ 219.60 $ 0.01 $ 0.61 $ 8.50 $ 518.50

2.09 2360.509 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) 295 TON $ 115.00 $ 33,925.00 $ 97.50 $ 28,762.50 $ 92.00 $ 27,140.00 $ 115.00 $ 33,925.00

2.1 2506.502 ADJUST FRAME & CASTING (STORM SWR CURB INLET) 3 EACH $ 600.00 $ 1,800.00 $ 1,150.00 $ 3,450.00 $ 1,250.00 $ 3,750.00 $ 1,500.00 $ 4,500.00

2.11 2506.502 ADJUST FRAME & CASTING (MH - DONUT CUTOUT) 1 EACH $ 1,000.00 $ 1,000.00 $ 2,650.00 $ 2,650.00 $ 1,650.00 $ 1,650.00 $ 3,400.00 $ 3,400.00

2.12 2531.503 CONCRETE CURB AND GUTTER (ALL TYPES) 80 LF $ 40.00 $ 3,200.00 $ 57.00 $ 4,560.00 $ 52.00 $ 4,160.00 $ 70.00 $ 5,600.00

2.13 2573.502 STORM DRAIN INLET PROTECTION 3 EACH $ 200.00 $ 600.00 $ 215.00 $ 645.00 $ 170.00 $ 510.00 $ 200.00 $ 600.00

2.14 N/A CONSTRUCTION ALLOWANCE 2000 UNIT $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00 $ 1.00 $ 2,000.00 ALTERNATE 2 BID TOTAL SECTION D - STORM SEWER TOTAL IMPROVEMENTS $ 71,298.00 $ 56,237.35 $ 58,318.61 $ 71,434.50

TOTAL BID AMOUNT BASE BID + ALTERNATES $ 547,705.00 $ 450,693.95 $ 463,585.62 $ 535,437.60

Abstract 6/8/2023, 11:47 AM Bolton & Menk, Inc. Page 2 of 2 33 CITY OF KENYON, MINNESOTA CONSTRUCTION PLANS FOR RESOURCE LIST CITY OF KENYON

City Hall 709 Second Street UTILITIES

GAS Minnesota Energy Resources Tom Livingston 507-529-5129 2023 STREET IMPROVEMENTS Kenyon, MN 55946 BITUMINOUS PATCHING, BITUMINOUS MILL & OVERLAY Phone: 507-789-6415 Northern Natural Gas SHEET City Administrator: Kay Klemmer 507-456-1137 BASE BID: BULLIS ST, WASHINGTON ST, 7TH ST, 8TH ST NUMBER SHEET TITLE Mark Vahlsing TELEPHONE ALTERNATE BID: STATE ST, WASHINGTON ST GENERAL Mayor: Doug Henke Frontier Communications Richard Schrantz (Mi-Tech) MAY 2023 G0.01 TITLE SHEET City Council Members: 612-368-9068 Kim Helgeson CenturyLink G1.01 STATEMENT OF ESTIMATED QUANTITIES Molly Ryan Mary Bailey David Haedtke Lee Sjolander 769-786-0750

Jaguar Communications

CIVIL City Engineer: Derek Olinger, P.E. Michael S. Broadwater 507-214-0236 C1.01 DETAILS Bolton & Menk, Inc. C6.01 - C6.02 7TH STREET

Washington St

2900 43rd St NW, Suite 100 Rochester, MN 55901 CABLE 507-525-2685 Mediacom Paul Cousineau C6.03 8TH STREET derek.olinger@bolton-menk.com 507-456-1745 1ST ST C6.04 WASHINGTON STREET (4TH - 5TH) Utility Superintendent (Electric & Water): C6.05 WASHINGTON STREET (2ND - 3RD) Randy Eggert 507-838-6023 C6.06 BULLIS STREET utility@cityofkenyon.com

2ND ST/TH60 C6.07 STATE STREET (ALT 1) & WASHINGTON STREET (ALT 2) 2ND ST/TH60 2ND ST/TH 60

Public Works Director (Street 2ND ST/TH 60

Bullis St

& Sewer): Wayne Ehrich THIS PLAN SET CONTAINS 10 SHEETS.

Washington St

507-273-1953 publicworks@cityofkenyon.com

3RD ST

Spring St Forest St

4TH ST

Red Wing Ave

BULLIS ST

5TH ST MAP OF THE CITY OF KENYON GOODHUE COUNTY, MN 5TH ST

Spring St

NOTE: EXISTING UTILITY INFORMATION SHOWN ON THIS

PLAN HAS BEEN PROVIDED BY THE UTILITY OWNER. THE CONTRACTOR SHALL FIELD VERIFY EXACT LOCATIONS PRIOR TO COMMENCING CONSTRUCTION AS REQUIRED BY STATE LAW. NOTIFY GOPHER STATE ONE CALL, 1-800-252-1166 OR 651-454-0002.

Note: Private Utilities Were Not Located As Part Of 6Th St R

Spring St Forest St

DESIGN. THIS INFORMATION MUST BE LOCATED IN FIELD.

Huseth St / Csah 12

THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS

UTILITY QUALITY LEVEL D UNLESS OTHERWISE NOTED. THIS UTILITY LEVEL WAS DETERMINED ACCORDING TO THE 7TH ST GUIDELINES OF CI/ASCE 38-02, ENTITLED "STANDARD 0 300 600

Washington St

GUIDELINES FOR THE COLLECTION AND DEPICTION OF 7TH ST

State St Bullis St

EXISTING SUBSURFACE UTILITY DATA." SCALE FEET

c Bolton & Menk, Inc. 2023, All Rights Reserved MAP LEGEND 8TH ST PROJECT LIMITS (BASE BID) 8TH ST PROJECT LIMITS (ALTERNATE BID)

Record Drawing

INFORMATION

H:\KENYON_CI_MN\0H1127340\CAD\C3D\127340CG001.dwg 5/19/2023 11:30:07 AM

PROJECT DATUM: OBSERVER:

Horizontal: Contractor:

2011 Goodhue County Coordinate System VERTICAL: DATE: NAVD 1988 in Feet KENYON, MINNESOTA DESIGNED NO. ISSUED FOR DATE I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED DPO SHEET BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED 2900 43RD STREET NW, SUITE 100 1 BID 05/19/2023 PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. DRAWN ROCHESTER, MINNESOTA 55901

Derek P. Olinger

Phone: (507) 208-4332 Email: Rochester@bolton-menk.com CHECKED RLC DPO 2023 STREET IMPROVEMENTS G0.01 54287 R www.bolton-menk.com CLIENT PROJ. NO. TITLESHEET LIC. NO. DATE 05/09/2023 0H1.127340 34 2023 Project Summary 2023 Street Improvements and 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements

Easements – Pearl Creek Sanitary Sewer

Over this past month, we have continued negotiations with property owners to acquire easements. Several minor plan revisions have been made to accommodate owner requests to date. Some additional modifications may still be required before we have agreements ready for council consideration.

If the council elects to award contracts at the upcoming meeting, it will be several months before the contractor will be able to start due to equipment lead-times. No work would actually be allowed to begin until easements are acquired.

Bids Received

On Thursday June 8th, we opened bids for both the 2023 Street Project and the Pearl Creek Sewer Project. Three bids were received for each project and pricing came in well below our previous estimates. The low bid for the projects is provided below:

Project Engineer's Estimate Low Bid

2023 Street Improvements $547,705.00 $450,693.95 (18% less) (Bituminous Materials, Inc - Faribault, MN) Pearl Creek Sanitary/Gates Ave Utility $1,536,065.00 $1,241,494.22 (19% less) (BCM Construction - Faribault, MN) Note: Costs above include base bid and all alternates.

Additional details for all bids received are included in the attached bid recommendation letters.

Funding Total project cost summaries have been updated with the low bid pricing and are provided below.

Project Component Revenue Source

Streets/General Sanitary Sewer Water Electric Construction $451,000 $1,072,000 $122,000 $48,000 Contingency $14,000 $32,000 $2,000 $2,000 Eng, Admin, Easements $125,000 $413,000 $33,000 $5,000 Financing $19,000 $48,000 $5,000 $0 Totals $608,000 $1,566,000 $163,000 $54,000

Total Project Cost $2,390,000

Bond Amount $2,337,000 ~$250,000 less than March 2023 Financing update Notes: Costs rounded to nearest $1,000. Gates Ave electrical work will not be financed. Costs assume all alternates are awarded.

It should be noted that awarding both alternates for the 2023 street project (State St and Washington St in SEMMCRA development) will cause an ~18% increase in street spending, in comparison to previous projections. This is because the state and Washington Street alternates were previously estimated to be beyond the amount approved in the 2022 CIP. The council may consider awarding both alternates given the low pricing and poor condition of those streets.

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Sanitary sewer costs will see a ~20% decrease, which will help to bring this project closer to original projections in the 2022 CIP.

The City's financial advisor will be present during the July meeting to review the bond sale for this year's projects. Final bond sizing will depend on the awarded alternates. If the council elects to delay awarding any of the contracts, it would be appropriate to specify the desired alternates so we can continue the project financing process.

Council Actions:  Approve Resolution Accepting Bid: 2023 Street Improvements o Specify award for Alternate 1 (State Street) and Alternate 2 (Washington Street)

 Approve Resolution Accepting Bid: 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements o Specify award for Alternate 1 (Lift Station Driveway Paving)

RESOLUTION NO. 2023-09

City Of Kenyon

COUNTY OF GOODHUE

STATE OF MINNESOTA

Resolution Approving Plans And Specifications And Ordering

ADVERTISEMENT FOR BIDS

2023 STREET IMPROVEMENTS

WHEREAS, the city engineer has prepared plans and specifications for the 2023 Street Improvements project, the improvement of Bullis St, Washington St, 7th St, 8th St, and also alternate improvements to State St and Washington St for asphalt overlays, patching and repaving and other minor surface repairs and has presented such plans and specifications to the council for approval;

Now Therefore, Be It Resolved By The City Council Of Kenyon,

MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The city administrator shall prepare and cause to be inserted in the official paper and in an online bidding service (Quest CDN) advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 3 weeks, shall specify the work to be done, shall state that bids will be received through the online bidding service until 10:00 a.m. on June 1, 2023, at which time they will be publicly opened in the council chambers of the city hall by the city administrator and engineer, will then be tabulated, and will be considered by the council at 7:00 p.m. on June 13, 2023, in the council chambers of the city hall. Bid opening and consideration times and locations provided above are subject to change if deemed appropriate by the city administrator and engineer, provided that proper notice is provided to bidders. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the council on the issue of responsibility. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the clerk for 5 percent of the amount of such bid. Adopted by the City Council of the City of Kenyon on this 9th day of May, 2023.

__________________________ Douglas Henke, Mayor ATTEST:

_____________________________ Mark Vahlsing, City Administrator

AGENDA ITEM NO. VII.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: June 13, 2023
SUBMITTED BY: Mark Vahlsing, Legal
ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: Request for City to relocate alley/ROW Jeff and Ann Traxler

SUGGESTED ACTION: The survey showing the new location of the alley area has been completed by Rapp Surveying. They are completing the legal description. Once the legal description is received the City attorney can compete the deeds for the land exchange. The planning Commission approved a setback variance for a new commercial building on Traxler's property. A copy of the relocated alley survey is attached.

Attachments:

D2334C.pdf

38 39 AGENDA ITEM NO. VII.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: June 13, 2023
SUBMITTED BY: Mark Vahlsing, Legal
ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: Review of new legalized Cannabis law

-Adopt interim Ordinance 102 -Resolution 2023-11 Approving Summary Publication of an Ordinance Authorizing a Study and Imposing a Moratorium of the Operation of Cannabis Business

SUGGESTED ACTION: The City Attorney will provide an update on the newly passed law legalizing Cannabis. Summaries of the new law, a copy of the interim ordinance and resolution are attached. Ordinance 102 MOTION NEEDED Resolution 2023-11 MOTION NEEDED

Attachments:

DOCSOPEN-#881560-v1-Memo_Cannabis_Act_Summary.DOCX DOCSOPEN-#881565-v1-MEMO_Immediate_Changes_to_Law_(Cannabis Act).DOCX Resolution 2023-11 Summary_Publication_Resolution_for_Cannabis_Moratorium.docx ORDINANCE 102 Cannabis Business Interim.docx

Kennedy & Graven Fifth Street Towers 150 South Fifth Street, Suite 700 Minneapolis, MN 55402

Memorandum

TO: City of Kenyon
FROM: Scott Riggs, city attorney

Jason Hill and Joseph Sathe, attorneys

DATE: June 9, 2023

RE: Summary of cannabis legalization and city roles and regulations ______________________________________________________________________________

I. Introduction

This memorandum provides a summary of the cannabis legalization (the "Act") that Governor Walz signed into law on May 30, 2023, and identifies the potential, although limited, regulatory options available to Minnesota cities, including the ability of the City to adopt a moratorium that would remain in place until January 1, 2025. This memorandum does not include a summary of all provisions of the Act, which is approximately 319 pages long, but rather focuses on key provisions that may impact the City of Kenyon (herein, the "City").

Most provisions of the Act take effect on either July 1, 2023, or August 1, 2023. However, certain changes related to edible cannabinoid products (the products authorized in 2022) went into effect on May 31, 2023, the day after the Act was signed. Those changes are addressed in a separate memorandum to the City, also dated June 5, 2023.

II. State Agency and Licensing
A. Office of Cannabis Management

The stated purpose of the Act includes (1) elimination of the illicit market for cannabis, (2) meeting the market demand for cannabis, (3) promoting a craft industry for cannabis, and (4) prioritizing growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition.

The Act creates the Minnesota Office of Cannabis Management ("OCM"), which will have several very broad powers and duties that include, in general: establishing rules and regulating the industry, promoting economic growth, issuance and renewal of licenses, inspections, and authorizing research and studies. The regulation of medical cannabis, which is already legal in

KE200\1\881560.v1

Minnesota, will also transfer to the OCM effective March 1, 2025. The director of the OCM is appointed by the Governor with the consent of the Senate. The Act also requires the creation of a Division of Social Equity within the OCM to "engage with the community and administer grants to communities that experienced a disproportionate, negative impact from cannabis prohibition and usage in order to promote economic development, improve social determinants of health, provide services to prevent violence, support early intervention programs for youth and families, and promote community stability and safety."

B. State Licensing and Rulemaking

The Act establishes licenses, to be issued by the OCM, and licensing processes, for the following businesses (all of which are expressly defined in the Act):

 cannabis microbusiness;  cannabis mezzobusiness;  cannabis cultivator;  cannabis manufacturer;  cannabis retailer;  cannabis wholesaler;  cannabis transporter;  cannabis testing facility;  cannabis event organizer;  cannabis