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- 7-11-23 Council Packet packet · 306k chars
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AGENDA
CITY COUNCIL REGULAR SESSION
July 11, 2023
7:00 PM
I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
III.A Adopt Agenda
Summary Report
7-11-23 Agenda Council Meeting.docx
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
6-13-23 Minutes.doc
V.B
Change $2.00 per hour temporary wage increase for Deputy Clerk/Administrative
Assistant to permanent.
Summary Report
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
VII. ENGINEERING
VII.A Pearl Creek Sanitary Sewer Improvement project
-Resolution 2023-17 Approving Project Easements.
-Construction Engineering proposal
Summary Report
02.1_2023 Pearl Creek Sewer Project.pdf
02.3_Pearl Sanitary_Construction Eng Proposal.pdf
1
02.2_2023 Pearl Creek Sewer Easements.pdf
Resolution 2023-17 Accepting_Easements.DOCX
VII.B 2023 Street Maintenance project
-Construction Engineering proposal
Summary Report
01.1_2023 Street Improvement Project.pdf
01.2_2023 Street Project_Construction Eng Proposal.pdf
VIII. LEGAL
VIII.A Review of Ordinance 102 (interim ordinance) Cannabis.
Summary Report
DOCSOPEN-#881560-v1-Memo_Cannabis_Act_Summary.DOCX
DOCSOPEN-#881565-v1-MEMO_Immediate_Changes_to_Law_(Cannabis
Act).DOCX
ORDINANCE 102 Cannabis Business Interim.docx
VIII.B Jeff and Ann Traxler – Request for City to vacate alley/ROW
Summary Report
DOC040723-005.pdf
IX. FINANCIAL
X. OLD BUSINESS
X.A Review Ordinance 101 - Allowing Chickens within City Limits
- (If adopted) Ordinance 2023-15 Approving Summary Publication of Ord. 101.
Summary Report
ORDINANCE 101 Kenyon_Chicken_Ordinance.DOCX
Chicken Survey Results.jpg
Results of Chicken Survey.pdf
Resolution 2023-15
Approving_publication_of_Ordinance_No__101_by_title_and_summary.DOC
X.B Review Quotes for Payroll Services
Summary Report
Updated Payroll processing quotes.xlsx
XI. NEW BUSINESS
XI.A City/KMU Compensation Study update.
Summary Report
XI.B Therapy and Consulting Services Agreement – Police Department
2
Summary Report
Therapy Agreement.pdf
XI.C Pearl Creek Sewer Main and Street Improvement Projects Bond Sale–George
Eilertson- Northland Public Finance
-Resolution 2023-16 Awarding the sale of General Obligation Bonds
Summary Report
Resolution 2023-16 Kenyon_GO_Bonds_2023A_AWARD_RESOLUTION.DOCX
Pearl Creek-Sewer Street Project Bond sale OS.docx 5-23.docx
RatingsDirect_SummaryKenyonMinnesotaGeneralObligation_55274111_Jun-30-
2023.PDF
XII. F.Y.I. - Department Updates
XII.A FYI- Department Updates
Summary Report
DOC070723-001.pdf
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
3
AGENDA ITEM NO. III.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Agenda
AGENDA SECTION: ADOPT AGENDA
SUBJECT: Adopt Agenda
SUGGESTED ACTION: See July agenda attached below.
ATTACHMENTS:
7-11-23 Agenda Council Meeting.docx
4
AGENDA
CITY COUNCIL MEETING
July 11, 2023
Recite Pledge of Allegiance
7:00. 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 no 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
A. City Council Meeting Minutes of June 13, 2023
B. Change $2.00 per hour temporary wage increase for Deputy Clerk/Administrative
Assistant to Permanent Increase.
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
VII. ENGINEERING
A. Pearl Creek Sanitary Sewer Improvements
1. Approve Resolution 2023-17 Project Easements
2. Construction Engineering proposal
B. 2023 Street Maintenance Improvement Project
1. Construction Engineering Proposal
VIII. LEGAL
A. Review of Ordinance No. 102 (interim ordinance) Cannabis
B. Request for City to relocate alley/ROW Jeff and Ann Traxler
IX. FINANCIAL
**A. June 2023 Treasurer’s Report
**B. Payment of Claims
X. OLD BUSINESS
A. Review Ordinance 101 Allowing Chickens within City Limits
B. Review Quotes for Payroll Services
C. Therapy and Consulting Services Agreement – Police Department
XI. NEW BUSINESS
A. City and KMU Compensation Study
B. Pearl Creek Sewer Main and Street Improvement Projects Bond Sale–George
Eilertson- Northland Public Finance
5
1. Resolution 2023-16: Awarding the Sale of General Obligation Bonds
XII. OTHER BUSINESS
A. Schedule of Upcoming Meetings
1. KMU Meeting: Tuesday, July 18th @ 4:00 p.m.
2. EDA Meeting: Tuesday, August 1st @ 8:00 a.m.
3. City Council Meeting: Tuesday, August 8th @ 7 p.m.
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
6
AGENDA ITEM NO. V.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Minutes
AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS
SUBJECT: Approval of Minutes and Appointments
SUGGESTED ACTION: See attached closed and regular minutes of 5-9-2023.
-Change $2.00 per hour temporary wage increase for Deputy
Clerk/Administrative Assistant to permanent.
ATTACHMENTS:
6-13-23 Minutes.doc
7
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 13th day of June 2023. The meeting was called to order by Mayor Henke.
The following members were present: Mayor Doug Henke, Council Members Kim Helgeson, Lee
Sjolander, Mary Bailey, Molly Ryan
Absent: None
Also, present: City Administrator Mark Vahlsing, Police Chief Jeff Sjoblom, Attorney Scott Riggs, Public
Works Director Wayne Ehrich, Administrative Assistant Holli Gudknecht, Cal Bean, Linda Bean, Ed Doyle,
Mrs. Doyle
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
ADOPT AGENDA
Motion by Ryan second by Bailey to approve the agenda. Motion carried 5-0-0.
CONSENT AGENDA
Motion by Sjolander second by Bailey to approve the Consent Agenda, which includes payment of check
numbers, 74859 through 74958; 4534E through 4553E.
Motion carried 5-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
ENGINEERING
2023 Street Maintenance Project
Engineer Olinger
Approve Quote of Corrective Asphalt Materials $34,935
Motion by Bailey, second by Ryan to approve the quote of $34,935 from Corrective Asphalt Materials for
the 2023 street maintenance project. 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.
Approve Resolution 2023-12 Accepting Bid for 2023 Pearl Creek Sewer Project
Motion by Helgeson second by Henke to adopt Resolution 2023-10. Motion carried 5-0-0.
8
2023 Street Improvement Summary
Approve Resolution 2023-13 Accepting Bid for 2023 Street Improvement Projedt
Motion by second by to adopt Resolution 2023-13. Motion Carried 5-0-0.
LEGAL
Request for City to relocate alley/ROW - Jeff and Ann Traxler
Attorney Riggs stated that the new survey showing the new location of the alley on the Traxler property
has been completed by Rapp Surveying. Once the new legal description is completed, the deeds for the
land exchange can be completed. The planning commission did approve the setback variance for
Traxler’s new commercial building.
Review New Legalized Cannabis Law
Attorney Riggs stated that
Adopt Interim Ordinance No. 102
Motion by Sjolander second by Ryan to adopt interim Ordinance No. 102 authorizing a study and imposing a
moratorium on the operation of cannabis businesses.
Motion carried 5-0-0
Resolution 2023-11 Approving Summary Publication of an Ordinance Authorizing a Study and
Imposing a Moratorium of the Operation of Cannabis Business
Motion by second by to adopt Resolution 2023-11. Motion carried 5-0-0.
OLD BUSINESS
Request for Chickens within City Limits
Administrator Vahlsing stated that the city attorney had drafted a chicken ordinance for the city of Kenyon.
The ordinance does require a permit to keep chickens.
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
9
Motion carried 4-1-0
NEW BUSINESS
Juneteenth
Administrator Vahlsing stated that the Governor signed a new law making Juneteenth a holiday to be
observed on Monday, June 19 starting in 2023. No city business can be transacted on this day.
Motion by Henke, second by Bailey to approve adding the Juneteenth holiday to the Kenyon personnel
policy. Motion carried 5-0-0.
Request to Change Police Department Holiday Pay
Administrator Vahlsing stated that Police Chief Sjoblom requested changing the holiday pay practices for
police officers. Sjoblom is requesting that the officers be paid 1 ½ times for the hours they work on the
holiday plus be paid for the eight hours of holiday pay at straight time. The eight hours of holiday pay would
also apply to officers who have days off that fall on holidays.
Motion by Sjolander seconded by Helgeson
Motion carried 5-0-0.
New On-Sale Liquor License - Angies
Motion by Bailey second by Helgeson to approve Angies Restaurant’s liquor license.
Motion carried 5-0-0.
Snowdrifter’s Donation to Police Dept. for Body Cameras
Administrator Vahlsing reported that the Snowdrifters would like to donate $12,600 to the police
department for body cameras.
Motion by second by to accept a donation of $12,600 from the Snowdrifters for new police
department body cameras. Motion carried 5-0-0.
Request to Remove Sidewalk – David Stenbakken – 712 Home St
Administrator Vahlsing presented a request from David Stenbakken to remove the sidewalk from the front of
his property at 712 Home Street. The sidewalk does not continue to either end of the block that his house is
located on.
Motion by second by to approve the removal of the sidewalk from the property located at 712
Home Street. Motion carried 5-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, June 20th @ 4:00 p.m.
City Council Meeting: Tuesday, July 11th @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Councilmen Sjolander
10
Councilmen Helgeson
City Administrator Vahlsing
Motion by Helgeson second by Bailey to adjourn the meeting at 8:05p.m.
Motion carried 4-0-0.
Holli Gudknecht, Administrative Assistant Douglas Henke, Mayor
11
AGENDA ITEM NO. V.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Appointments
AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS
SUBJECT:
Change $2.00 per hour temporary wage increase for Deputy
Clerk/Administrative Assistant to permanent.
SUGGESTED ACTION: Request to make $2.00-hour interim raise that was started during the
Finance Director vacancy period permanent for the Deputy
Clerk/Administrative Assistant.
ATTACHMENTS:
12
AGENDA ITEM NO.
VII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Engineering
ITEM TYPE: Engineering
AGENDA SECTION: ENGINEERING
SUBJECT: Pearl Creek Sanitary Sewer Improvement project
-Resolution 2023-17 Approving Project Easements.
-Construction Engineering proposal
SUGGESTED ACTION: The City Engineer will provide an update on the status of the project.
Resolution 2023-17 Approving Project Easements. Approve
easements needed for new sewer main installation.
Pearl Creek Construction Engineering proposal. Approving
engineering, and inspection costs related to the project. See attached
memo and resolution below.
MOTION NEEDED
ATTACHMENTS:
02.1_2023 Pearl Creek Sewer Project.pdf
02.3_Pearl Sanitary_Construction Eng Proposal.pdf
02.2_2023 Pearl Creek Sewer Easements.pdf
Resolution 2023-17 Accepting_Easements.DOCX
13
2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements
Contracts for this project are currently out for signatures and should be finalized soon. The prime contractor, BCM
Construction, has a tentative work start date in late august or early September, but they are still reviewing their schedule.
A preconstruction meeting may be scheduled in the next few weeks to review the project in more detail.
Easements – Pearl Creek Sanitary Sewer
Final easement documents have been drafted and sent to all property owners. In total 12 parcels split amongst 6 property
owners will require easements. Please take note that monetary compensation will be required for 7 parcels (3 owners).
Following negotiations with property owners, the total compensation requested is $77,200. The majority of compensation
is for easement on the lift station site, which will be heavily impacted by the construction. We have evaluated the
requested compensation against similar project scenarios and have found that the amounts are justified, reasonable and
recommended for approval.
Easements are attached for review. We are requesting approval for these easements and related compensation. Acceptance
can be made by approving the attached resolution.
Construction Engineering Proposal
We have attached a proposal for the remainder of the engineering services needed to complete this project. Engineering is
included in the overall project budget. Financing for the project will be discussed separately at the meeting.
Council Actions:
Approval of attached resolution approving easements
Motion approving Proposal for Construction Engineering Services (2023 Pearl Creek San & Gates Ave Utility
Improvements)
H:\KENYON_CI_MN\_General\Council Meetings\2023\07 - July 2023\02.1_2023 Pearl Creek Sewer Project.docx
14
July 6th, 2023
Mr. Mark Vahlsing
City Administrator
City of Kenyon
RE: Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements
Proposal for Construction Services
BMI Project No: 0H1.126462
Mr. Vahlsing:
This proposal includes scope and fee information for construction engineering services related to the 2023
Pearl Creek Sanitary Sewer and Gates Avenue Utility Improvement project base bid and alternate 1,
awarded last month.
1. Scope of Work
A. Final Easement and Design Modifications
During the course of design for this project, there were some changes to the project which
resulted in additional time. First, the route of the forcemain was modified to its current location to
meet downstream sewer capacity constraints. This change decreased construction cost; but
additional survey was required. Lastly, multiple additional meetings and subsequent layout
revisions were made to accommodate owner requests as part of the easement negotiation process.
This resulted in additional engineering time.
15
Pearl Creek Sanitary Improvements July 2023
Proposal for Construction Services Page 2
B. Contract Administration
Prepare and review final contract documents following project award
Coordinate and attend preconstruction and regular construction meetings with city and
contractor
Prepare and review contractor’s pay applications or contract amendments, as needed.
Provide monthly progress updates for city council
Communications between the City and Contractor
Coordination with agencies for permits (DNR, MnDOT)
Project closeout documentation
C. Construction Observation/Field work
Review construction material submittals and shop drawings
Construction staking and marking of work limits
Field engineering as required to meet project goals with on-site conditions
Field Observation and documentation and handling contractor questions
Construction material testing and other quality assurance activities
Maintain regular communication with residents or property owners with easements
Coordinate Resident Requests with contractor or city
2. Fees
A summary of the fees associated with the scope is provided below
Item Cost
Project Management $ 11,550
Final Easement & Design Modifications $ 9,546
Contract Administration (Meetings, Reviews, Close-out) $ 21,752
Construction Observation, Testing and Survey $ 161,406
Total $ 204,254
The fees noted above are estimated, based on the scope noted above and schedule assumptions below.
A breakdown of these fees is attached. Costs will be billed on an hourly basis. The terms of the work
performed under this proposal would be in accordance with the existing Agreement for Professional
Services between the City of Kenyon and Bolton & Menk.
3. Schedule
Based on early conversations with the contractor, work will likely start in September this year. Based
on the availability of parts, work throughout the entire project will be intermittent and isn’t required
to be completed until August 2024. Collectively, we estimate that the work will be active for roughly
half of this time (6 months) over the next year.
We value our relationship with the City of Kenyon as your City Engineer and appreciate the opportunity
to assist the City with this project. If there are any questions related to this proposal, please contact us.
Sincerely,
Bolton & Menk, Inc.
Derek P. Olinger, P.E. Brian P. Malm, P.E.
City Engineer Principal Engineer
Attachments: Engineering Fee Breakdown
16
Pearl Creek Sanitary Improvements July 2023
Proposal for Construction Services Page 3
Engineering Fee Breakdown
Project: Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements
Principal
City Engr
Eng
Total Reimb
Proj
RPR
Engr/Srvy
Design AA Total Labor Total
Hr Expense
Engr
Survey Cr
Chief
Survey
Tech
1.3 Project Management 70 70 $ 11,550.00 $ - $ 11,550.00
6.1 Final Easement & Design Modifications 10 34 11 5 60 $ 9,546.00 $ - $ 9,546.00
6.2 Contract Admin (Meetings, Reviews, Closeout) 68 8 24 100 $ 16,752.00 $ 5,000.00 $ 21,752.00
6.3 Construction Observation, Testing and Survey 121 35 9 80 72 60 49 650 1076 $ 159,406.00 $ 2,000.00 $ 161,406.00
Subtotal Hours 269 35 51 80 72 60 60 679 1306 $ 197,254.00 $ 7,000.00 $ 204,254.00
Reimbursible Expense Breakdown (Included in Totals Above)
* Sub Consultant Submittal Reviews $ 5,000.00
** Sub Consultant Construction Material Testing $ 2,000.00
17
PID # 66.660.0090 (Reserved for Recording) Abstract
PERMANENT UTILITY EASEMENT
THIS PERMANENT UTILITY EASEMENT (the “Easement”) is made by Cemstone
Concrete Materials, LLC, an Iowa limited liability company, Grantor (“Owner”) in favor of the
City of Kenyon, a Minnesota municipal corporation, Grantee (“City”).
Recitals
A. The Owner is the fee owner of certain real estate located in Goodhue County, Minnesota,
legally described on the attached Exhibit A (the “Property”).
B. City has offered and the Owner has accepted the City’s offer of payment of $1,000 for
the easement contained herein.
C. In furtherance of a utility improvement project, the City desires to obtain from the
Owner, and the Owner desires to convey to the City a permanent, non-exclusive utility
easement according to the terms and conditions contained herein.
Terms of Easement
1. Recitals. The above recitals are hereby incorporated into this Easement.
2. Grant of Easement. For good and valuable consideration including the receipt of $1,000
from the City, receipt of which is acknowledged by the Owner, the Owner grants and conveys to the
City a permanent utility easement, which is legally described on Exhibit B, and further depicted on
Exhibit C attached hereto (the “Easement Area”).
3. Scope of Easement. The above-described Easement includes the rights of the City, its
contractors, agents, and employees to enter the Easement Area at all reasonable times for the
purposes of locating, constructing, reconstructing, installing, operating, maintaining, inspecting,
altering, and repairing sanitary and storm sewer and overhead electrical facilities and other
improvements not inconsistent with electrical or sewer utilities within the Easement Area.
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DOCSOPEN\KE200\203\873956.v5-6/28/23
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The Easement granted herein also includes the right to cut, trim, or remove any landscaping,
improvements, or vegetation within the Easement Area that in the City’s judgment unreasonably
interferes with the easement or the City’s facilities thereon.
4. Warranty of Title. The Owner warrants that it is the fee owner of the Property, and it has the
right, title, and capacity to convey the Easement herein to the City.
5. Environmental Matters. The City shall not be responsible for any costs, expenses, damages,
demands, obligations, including penalties and reasonable attorneys’ fees, or losses resulting from
any claims, actions, suits, or proceedings based upon a release or threat of release of any hazardous
substances, pollutants, or contaminants that may have existed on, or that relate to, the Easement
Area or the Property prior to the date of this instrument.
6. Binding Effect. This Easement granted herein shall run with the land and shall be binding
on the Owner, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this ____ day of _________, 2023.
GRANTOR:
CEMSTONE CONCRETE MATERIALS,
LLC
By:
Its: _____________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ___ day of _____________,
2023, by _________________________________, the ___________________________ of
Cemstone Concrete Materials, LLC, an Iowa limited liability company, on behalf of the
company, as Grantor.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
2
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A-1
DOCSOPEN\KE200\203\873956.v5-6/28/23
20
B-1
DOCSOPEN\KE200\203\873956.v5-6/28/23
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C-1
DOCSOPEN\KE200\203\873956.v5-6/28/23
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PID # 66.660.0380 (Reserved for Recording) Abstract
& PID # 66.660.0390
PERMANENT UTILITY EASEMENT
THIS PERMANENT UTILITY EASEMENT (the “Easement”) is made by Wilstor
LLC, a Minnesota limited liability company, Grantor (“Owner”), in favor of the City of
Kenyon, a Minnesota municipal corporation, Grantee (“City”).
Recitals
A. The Owner is the fee owner of certain real estate located in Goodhue County,
Minnesota, legally described on the attached Exhibit A (the “Property”).
B. The City has offered and the Owner has accepted the City’s offer of payment of
$1,200 for the easement contained herein.
C. In furtherance of a utility improvement project, the City desires to obtain from the
Owner, and the Owner desires to convey to the City a permanent, non-exclusive utility
easement according to the terms and conditions contained herein.
Terms of Easement
1. Recitals. The above recitals are hereby incorporated into this Easement.
2. Grant of Easement. For good and valuable consideration including the receipt of $1,200
from the City, receipt of which is acknowledged by the Owner, the Owner grants and conveys to
the City a permanent utility easement, which is legally described on Exhibit B, and further
depicted on Exhibit C attached hereto (the “Easement Area”).
3. Scope of Easement. The above-described Easement includes the rights of the City, its
contractors, agents, and employees to enter the Easement Area at all reasonable times for the
purposes of locating, constructing, reconstructing, installing, operating, maintaining,
inspecting, altering, and repairing sanitary and storm sewer and overhead electrical facilities
1
DOCSOPEN\KE200\203\873963.v5-6/26/23
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and other improvements not inconsistent with electrical or sewer utilities within the Easement
Area.
The Easement granted herein also includes the right to cut, trim, or remove any landscaping,
improvements, or vegetation within the Easement Area that in the City’s judgment
unreasonably interferes with the easement or the City’s facilities thereon.
4. Warranty of Title. The Owner warrants that it is the fee owner of the Property, and it has
the right, title, and capacity to convey the Easement herein to the City.
5. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants that may have existed on, or that relate
to, the Easement Area or the Property prior to the date of this instrument.
6. Binding Effect. This Easement granted herein shall run with the land and shall be
binding on the Owner, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this ____ day of _________, 2023.
GRANTOR:
WILSTOR LLC
By:
Its: _____________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF ____________ )
The foregoing instrument was acknowledged before me this ___ day of
_____________, 2023, by _________________________________, the
___________________________ of Wilstor LLC, a Minnesota limited liability company, on
behalf of the company, Grantor.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
2
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EXHIBIT A
Legal Description of the
Property
A-1
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A-2
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EXHIBIT B
Legal Description of the Easement Area
B-1
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EXHIBIT C
Depiction of Easement Area
C-1
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_______________________________________________________________________________
PID # 66.140.0090 (Reserved for Recording) Abstract
PERMANENT SANITARY SEWER EASEMENT
THIS PERMANENT SANITARY SEWER EASEMENT (the “Easement”) is made by
Donald S. Skillestad and Vicki Skillestad, spouses married to each other, Grantors, (“Owners”) in favor
of the City of Kenyon, a Minnesota municipal corporation, Grantee (“City”):
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County, Minnesota,
legally described on the attached Exhibit A (the “Property”); and
B. The Owners desire to grant to the City a permanent sanitary sewer easement, according to the
terms and conditions contained herein.
Terms of Easement
1. Recitals. The above recitals are hereby incorporated into this Easement.
2. Grant of Permanent Sewer Easement. For good and valuable consideration, receipt of which is
acknowledged by the Owners, the Owners grant and convey to the City a permanent sanitary sewer
easement, which is legally described on Exhibit B, and further depicted on Exhibit C attached hereto
(the “Easement Area”).
3. Scope of Easement. The above-described Easement includes the rights of the City, its
contractors, agents, and employees to enter the Easement Area at all reasonable times for the purposes
of locating, constructing, reconstructing, installing, operating, maintaining, inspecting, altering, and
repairing sanitary sewer facilities and improvements within the Easement Area.
The Easement granted herein also include the right to cut, trim, or remove any landscaping,
improvements, or vegetation within the Easement Area that in the City’s judgment unreasonably
interferes with the easement or the City’s facilities thereon.
The Owners will not erect, construct, or create any building, improvement, obstruction or
structure of any kind within the Easement Area, either above or below the surface or change the grade
thereof without the express written permission of the City.
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4. Warranty of Title. The Owners warrant that they are the fee owners of the Property, and they
have the right, title, and capacity to convey the Easement herein to the City.
5. Environmental Matters. The City shall not be responsible for any costs, expenses, damages,
demands, obligations, including penalties and reasonable attorneys’ fees, or losses resulting from any
claims, actions, suits, or proceedings based upon a release or threat of release of any hazardous
substances, pollutants, or contaminants that may have existed on, or that relate to, the Easement Area
or the Property prior to the date of this instrument.
6. Binding Effect. This Easement granted herein shall run with the land and shall be binding on
the Owners, their heirs and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this ______ day of ____________, 2023.
OWNERS
By:
Donald S. Skillestad
By:
Vicki Skillestad
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of _____________,
2023, by Donald S. Skillestad and Vicki Skillestad, spouses married to each other, Owners, as
Grantors.
______________________________
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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_______________________________________________________________________________
PID # 66.140.0030 (Reserved for Recording) Abstract
PERMANENT SEWER EASEMENT
THIS PERMANENT SEWER EASEMENT (the “Easement”) is made by Phillip C. Breidall and
Brandie M. Breidall, spouses married to each other, Grantors, (“Owners”) in favor of the City of Kenyon, a
Minnesota municipal corporation, Grantee (“City”).
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County, legally described
on the attached Exhibit A (the “Property”); and
B. The Owners desire to grant to the City a permanent, non-exclusive sewer easement, according to
the terms and conditions contained herein.
Terms of Easement
1. Recitals. The above recitals are hereby incorporated into this Easement.
2. Grant of Permanent Sanitary Sewer Easement. For good and valuable consideration, receipt of
which is acknowledged by the Owners, the Owners grant and convey to the City a permanent sewer
easement, which is legally described on Exhibit B, and further depicted on Exhibit C attached hereto (the
“Easement Area”).
3. Scope of Easement. The above-described Easement includes the rights of the City, its
contractors, agents, and employees to enter the Easement Area at all reasonable times for the purposes
of locating, constructing, reconstructing, installing, operating, maintaining, inspecting, altering, and
repairing sanitary and storm sewer facilities and improvements within the Easement Area.
The Easement granted herein also include the right to cut, trim, or remove any landscaping,
improvements, or vegetation within the Easement Area that in the City’s judgment unreasonably
interferes with the easement or the City’s facilities thereon.
The Owners will not erect, construct, or create any building, improvement, obstruction or
structure of any kind within the Easement Area, either above or below the surface or change the grade
thereof without the express written permission of the City.
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4. Warranty of Title. The Owners warrant that they are the fee owners of the Property, and they
have the right, title, and capacity to convey the Easement herein to the City.
5. Environmental Matters. The City shall not be responsible for any costs, expenses, damages,
demands, obligations, including penalties and reasonable attorneys’ fees, or losses resulting from any
claims, actions, suits, or proceedings based upon a release or threat of release of any hazardous
substances, pollutants, or contaminants that may have existed on, or that relate to, the Easement Area or
the Property prior to the date of this instrument.
6. Binding Effect. This Easement granted herein shall run with the land and shall be binding on the
Owners, their heirs and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this ______ day of ____________, 2023.
OWNERS:
By:
Phillip C. Breidall
By:
Brandie M. Breidall
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of _____________, 2023,
by Phillip C. Breidall and Brandie M. Breidall, spouses married to each other, Owners, as Grantors.
______________________________
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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PID # 66.640.0191 (Reserved for Recording) Abstract
PERMANENT SEWER EASEMENT
AND
TEMPORARY CONSTRUCTION EASEMENT
THIS INSTRUMENT is made by Phillip C. Breidall and Brandie M. Breidall, spouses
married to each other, Grantors (“Owners”), in favor of the City of Kenyon, a Minnesota
municipal corporation, Grantee (“City”):
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County,
Minnesota, legally described on the attached Exhibit A (the “Property”).
B. In furtherance of a utility improvement project, the City desires to obtain from the
Owners, and the Owners desire to convey to the City a permanent, non-exclusive
storm sewer easement (the “Permanent Easement”) and a temporary construction
easement (the “Temporary Easement”) (collectively, the “Easements”), according to
the terms and conditions contained herein.
Easements
1. Recitals. The recitals above are hereby incorporated herein and made part of this
instrument.
2. Grant of Easements. For good and valuable consideration, the receipt of which is
acknowledged by the Owners, the Owners hereby grant and convey to the City, its
successors and assigns, the following Easements:
A. A permanent, non-exclusive storm sewer easement over, under, across and
through that part of the Property legally described on the attached Exhibit B
and shown on the attached Exhibit C (collectively, the “Permanent Easement
Area”).
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B. A temporary construction easement over, under, across and through that part of
the Property as described on the attached Exhibit D and shown on the attached
Exhibit E (collectively, the “Temporary Easement Area”).
3. Scope of Permanent Easement. The above-described Permanent Easement includes
the rights of the City, its contractors, agents, and employees the right to enter the
Permanent Easement Area at all reasonable times for purposes of constructing,
operating, inspecting, maintaining, altering, grading, repairing, replacing, or removing
subsurface sanitary sewer, storm sewer, watermain, or other subsurface utilities and
drainage ways or other subsurface public improvements within the Easement Area
The Easement granted herein also includes the right to cut, trim, or remove from
within the Permanent Easement Area trees, shrubs, or other vegetation, and to prohibit
obstructions and grading alterations now or in the future as in the City’s judgment
unreasonably interfere with the use or maintenance of the Permanent Easement Area,
or the function of the facilities located therein.
4. Scope of Temporary Easement. The above-described Temporary Easement includes
the rights of the City, its contractors, agents, and employees to enter the Temporary
Easement Area at all reasonable times for the purpose of grading, stockpiling,
drainage and other general construction purposes.
The Temporary Easement granted herein also includes the right to cut, trim, or remove
from within the Temporary Easement Area trees, shrubs, or other vegetation, and to
prohibit obstructions and grading alterations now or in the future as in the City’s
judgment unreasonably interfere with the use or maintenance of the Temporary
Easement Area, or the function of the facilities located therein.
The Owners shall not erect, construct, or create any building, improvement,
obstruction, or structure of any kind within the Temporary Easement Area during the
Term of the Temporary Easement, defined below, either above or below the surface or
change the grade thereof without the express written permission of the City.
5. Warranty of Title. The Owners warrant that they are the fee owners of the Property
and have the right, title, and capacity to convey to City the Easements herein.
6. Reasonable Access of City. The City and its authorized employees, agents, and
contractors, including personnel and equipment, are granted reasonable access over
other areas of the Property as may be needed to construct the improvements within the
Permanent Easement Area and the Temporary Easement Area.
7. Restoration of Temporary Easement Area. Upon completion of construction or the
expiration of the Term of the Temporary Easement, defined below, whichever occurs
sooner, the City shall restore the Temporary Easement Area pursuant to the City’s
standard specifications for construction.
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8. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or
losses resulting from any claims, actions, suits, or proceedings based upon a release or
threat of release of any hazardous substances, pollutants, or contaminants which may
have existed on, or which relate to, the Temporary Easement Area, the Permanent
Easement Area, or the Property prior to the date of this Instrument.
9. Binding Effect. The Permanent Easement shall run with the land and be binding on
Grantors, their heirs and assigns.
10. Term of Temporary Easement. The Temporary Construction Easement shall expire on
December 31, 2025.
STATE DEED TAX DUE HEREON: NONE
Dated this ____ day of _________, 2023.
GRANTORS
By:
Phillip C. Breidall
By:
Brandie M. Breidall
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of
_____________, 2023, by Phillip C. Breidall and Brandie M. Breidall, spouses married to
each other, Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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EXHIBIT A
Legal Description of the Property
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EXHIBIT B
Legal Description of Permanent Easement Area
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EXHIBIT C
Depiction of Permanent Easement Area
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EXHIBIT D
Legal Description of Temporary Easement Area
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EXHIBIT E
Depiction of Temporary Easement Area
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PID # 66.640.0200 (Reserved for Recording) Abstract
PERMANENT SEWER EASEMENT
AND
TEMPORARY CONSTRUCTION EASEMENT
THIS INSTRUMENT is made by Jerald L. Barrett and Diane K. Barrett, spouses
married to each other, Grantors (“Owners”), in favor of the City of Kenyon, a Minnesota
municipal corporation, Grantee (“City”).
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County,
Minnesota, legally described on the attached Exhibit A (the “Property”).
B. The City has offered, and the Owners have accepted the City’s offer of payment in the
sum of $24,000 for the easement contained herein.
B. In furtherance of a utility improvement project, the City desires to obtain from the
Owners, and the Owners desire to convey to the City a permanent, non-exclusive
utility easement (the “Permanent Easement”) and a temporary construction easement
(the “Temporary Easement”) (collectively, the “Easements”), according to the terms
and conditions contained herein.
Easements
1. Recitals. The recitals above are hereby incorporated herein and made part of this
instrument.
2. Grant of Easements. For good and valuable consideration including the receipt of
$24,000 from the City, receipt of which is acknowledged by the Owners, the Owners
hereby grant and convey to the City, its successors and assigns, the following
Easements:
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A. A permanent, non-exclusive storm and sanitary sewer easement over, under,
across and through that part of the Property legally described on the attached
Exhibit B and shown on the attached Exhibit C (collectively, the “Permanent
Easement Area”).
B. A temporary construction easement over, under, across and through that part of
the Property as described on the attached Exhibit D and shown on the attached
Exhibit E (collectively, the “Temporary Easement Area”).
3. Scope of Permanent Easement. The above-described Permanent Easement includes
the rights of the City, its contractors, agents, and employees the right to enter the
Permanent Easement Area at all reasonable times for purposes of constructing,
operating, inspecting, maintaining, altering, grading, repairing, replacing, or removing
subsurface sanitary sewer, storm sewer, watermain, or other subsurface utilities and
drainage ways or other subsurface public improvements within the Easement Area
The Easement granted herein also includes the right to cut, trim, or remove from
within the Permanent Easement Area trees, shrubs, or other vegetation, and to prohibit
obstructions and grading alterations now or in the future as in the City’s judgment
unreasonably interfere with the use or maintenance of the Permanent Easement Area,
or the function of the facilities located therein.
4. Scope of Temporary Easement. The above-described Temporary Easement includes
the rights of the City, its contractors, agents, and employees to enter the Temporary
Easement Area at all reasonable times for the purpose of grading, stockpiling,
drainage and other general construction purposes.
The Temporary Easement granted herein also includes the right to cut, trim, or remove
from within the Temporary Easement Area trees, shrubs, or other vegetation, and to
prohibit obstructions and grading alterations now or in the future as in the City’s
judgment unreasonably interfere with the use or maintenance of the Temporary
Easement Area, or the function of the facilities located therein.
The Owners shall not erect, construct, or create any building, improvement,
obstruction, or structure of any kind within the Temporary Easement Area during the
Term of the Temporary Easement, defined below, either above or below the surface or
change the grade thereof without the express written permission of the City.
5. Warranty of Title. The Owners warrant that they are the fee owners of the Property
and have the right, title, and capacity to convey to City the Easements herein.
6. Reasonable Access of City. The City and its authorized employees, agents, and
contractors, including personnel and equipment, are granted reasonable access over
other areas of the Property as may be needed to construct the improvements within the
Permanent Easement Area and the Temporary Easement Area.
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7. Restoration of Temporary Easement Area. Upon completion of construction or the
expiration of the Term of the Temporary Easement, defined below, whichever occurs
sooner, the City shall restore the Temporary Easement Area pursuant to the City’s
standard specifications for construction.
8. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or
losses resulting from any claims, actions, suits, or proceedings based upon a release or
threat of release of any hazardous substances, pollutants, or contaminants which may
have existed on, or which relate to, the Temporary Easement Area, the Permanent
Easement Area, or the Property prior to the date of this Instrument.
9. Binding Effect. The Permanent Easement shall run with the land and be binding on
Grantors, their heirs and assigns.
10. Term of Temporary Easement. The Temporary Construction Easement shall expire on
December 31, 2025.
STATE DEED TAX DUE HEREON: NONE
Dated this ____ day of _________, 2023.
GRANTORS:
By:
Jerald L. Barrett
By:
Diane K. Barrett
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of
_____________, 2023, by Jerald L. Barrett and Diane K. Barrett, spouses married to each
other, Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
3
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PID # 66.540.0020 (Reserved for Recording) Abstract
PERMANENT UTILITY AND ACCESS EASEMENT
AND
TEMPORARY CONSTRUCTION EASEMENT
THIS INSTRUMENT is made by Jerald L. Barrett and Diane K. Barrett, spouses married to each
other, Grantors (“Owners”), in favor of the City of Kenyon, a Minnesota municipal corporation, Grantee
(“City”):
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County, Minnesota,
legally described on the attached Exhibit A (the “Property”).
B. The City has offered and the Owners have accepted the City’s offer of payment of $39,750 for
the easement contained herein.
C. In furtherance of a utility improvement project, the City desires to obtain from the Owners, and
the Owners desire to convey to the City a permanent, non-exclusive storm sewer easement (the
“Permanent Easement”) and a temporary construction easement (the “Temporary Easement”),
according to the terms and conditions contained herein.
Easements
1. Recitals. The recitals above are hereby incorporated herein and made part of this instrument.
2. Grant of Easements. For good and valuable consideration including the receipt of $39,750 from
the City, the receipt of which is acknowledged by the Owners, the Owners hereby grant and
convey to the City, its successors and assigns, the following easements:
A. A permanent, non-exclusive storm sewer easement over, under, across and through that
part of the Property legally described on the attached Exhibit B and depicted on the
attached Exhibit C (collectively, the “Permanent Easement Area”).
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B. A temporary construction easement over, under, across and through that part of the
Property as described on the attached Exhibit D and depicted on the attached Exhibit E
(collectively, the “Temporary Easement Area”).
3. Scope of Permanent Easement. The above-described Permanent Easement includes the rights of
the City, its contractors, agents, and employees the right to enter the Permanent Easement Area
at all reasonable times for purposes of constructing, operating, inspecting, maintaining, altering,
grading, repairing, replacing, or removing subsurface sanitary sewer, storm sewer, watermain, or
other subsurface utilities and drainage ways or other subsurface public improvements within the
Easement Area
The Permanent Easement granted herein also includes the right to cut, trim, or remove from
within the Permanent Easement Area trees, shrubs, or other vegetation, and to prohibit
obstructions and grading alterations now or in the future as in the City’s judgment unreasonably
interfere with the use or maintenance of the Permanent Easement Area, or the function of the
facilities located therein.
4. Scope of Temporary Easement. The above-described Temporary Easement includes the rights
of the City, its contractors, agents, and employees to enter the Temporary Easement Area at all
reasonable times for the purpose of grading, stockpiling, drainage and other general construction
purposes.
The Temporary Easement granted herein also includes the right to cut, trim, or remove from
within the Temporary Easement Area trees, shrubs, or other vegetation, and to prohibit
obstructions and grading alterations now or in the future as in the City’s judgment unreasonably
interfere with the use or maintenance of the Temporary Easement Area, or the function of the
facilities located therein.
The Owners shall not erect, construct, or create any building, improvement, obstruction, or
structure of any kind within the Temporary Easement Area during the Term of the Temporary
Easement, defined below, either above or below the surface or change the grade thereof without
the express written permission of the City.
5. Warranty of Title. Grantors warrant that they are the fee owners of the Property and have the
right, title, and capacity to convey to City the easements herein.
6. Reasonable Access of City. The City and its authorized employees, agents, and contractors,
including personnel and equipment, are granted reasonable access over other areas of the
Property as may be needed to construct the improvements within the Permanent Easement Area
and the Temporary Easement Area.
7. Restoration of Temporary Easement Area. Upon completion of construction or the expiration of
the Term of the Temporary Easement, defined below, whichever occurs sooner, the City shall
restore the Temporary Easement Area pursuant to the City’s standard specifications for
construction.
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8. Environmental Matters. The City shall not be responsible for any costs, expenses, damages,
demands, obligations, including penalties and reasonable attorneys’ fees, or losses resulting from
any claims, actions, suits, or proceedings based upon a release or threat of release of any
hazardous substances, pollutants, or contaminants which may have existed on, or which relate
to, the Temporary Easement Area, the Permanent Easement Area, or the Property prior to the
date of this Instrument.
9. Binding Effect. The Permanent Easement shall run with the land and be binding on Grantors,
their heirs and assigns.
10. Term of Temporary Easement. The Temporary Construction Easement shall expire on December
31, 2025.
STATE DEED TAX DUE HEREON: NONE
Dated this ____ day of _________, 2023.
GRANTORS:
By:
Jerald L. Barrett
By:
Diane K. Barrett
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of _____________, 2023,
by Jerald L. Barrett and Diane K. Barrett, spouses married to each other, Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
3
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_______________________________________________________________________________
PID # 66.540.0230 (Reserved for Recording) Abstract
PERMANENT SANITARY AND STORM SEWER EASEMENT
THIS PERMANENT SANITARY AND STORM SEWER EASEMENT (the “Easement”) is
made by Jerald L. Barrett and Diane K. Barrett, spouses married to each other, Grantors (“Owners”), in
favor of the City of Kenyon, a Minnesota municipal corporation, Grantee (“City”).
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County, Minnesota,
legally described on the attached Exhibit A (the “Property”).
B. The City has offered and the Owners have accepted the City’s offer of payment of $1,500 for
the easement contained herein.
C. The Owners desire to grant to the City a permanent, non-exclusive storm and sanitary sewer
easement, according to the terms and conditions contained herein.
Terms of Easement
1. Recitals. The recitals above are hereby incorporated herein and made part of this instrument.
2. Grant of Permanent Storm Sewer Easement. For good and valuable consideration including the
receipt of $1,500 from the City, receipt of which is acknowledged by Owners, Owners grant and convey
to the City a permanent sanitary and storm sewer easement, which is legally described on Exhibit B, and
further depicted on Exhibit C attached hereto (the “Easement Area”).
3. Scope of Easement. The above-described Easement includes the rights of the City, their
contractors, agents, and employees to enter the Easement Area at all reasonable times for the purposes
of installing, operating, inspecting, repairing, improving, maintaining, replacing, and removing storm
and sanitary sewer improvements on the Property (the “Work”).
The Easement granted herein also include the right to cut, trim, or remove any landscaping,
improvements, or vegetation within the Easement Area that in the City’s judgment unreasonably
interferes with the easement or its facilities thereon.
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The Owners will not erect, construct, or create any building, improvement, obstruction or
structure of any kind within the Easement Area, either above or below the surface or change the grade
thereof without the express written permission of the City.
4. Warranty of Title. The Owners warrant that they are the fee owners of the Property, and they
have the right, title, and capacity to convey the Easement herein to the City.
5. Environmental Matters. The City shall not be responsible for any costs, expenses, damages,
demands, obligations, including penalties and reasonable attorneys’ fees, or losses resulting from any
claims, actions, suits, or proceedings based upon a release or threat of release of any hazardous
substances, pollutants, or contaminants that may have existed on, or that relate to, the Easement Area
or the Property prior to the date of this instrument.
6. Binding Effect. This Easement granted herein shall run with the land and shall be binding on
the Owners, its successors and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this ______ day of ____________, 2023.
OWNERS:
By:
Jerald L. Barrett
By:
Diane K. Barrett
STATE OF MINNESOTA )
) SS.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of _____________,
2023, by Jerald L. Barrett and Diane K. Barrett, spouses married to each other, Owners.
______________________________
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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PID # 66.540.0100 (Reserved for Recording) Abstract
PERMANENT ACCESS EASEMENT
AND
TEMPORARY ACCESS EASEMENT
THIS INSTRUMENT is made by Jerald L. Barrett and Diane K. Barrett, spouses
married to each other, Grantors (“Owners”), in favor of the City of Kenyon, a Minnesota
municipal corporation, Grantee (“City”):
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County,
Minnesota, legally described on the attached Exhibit A (the “Property”).
B. The City has offered and the Owners have accepted the City’s offer of payment of
$9,750 for the easement contained herein.
C. In furtherance of a utility improvement project, the City desires to obtain from the
Owners, and the Owners desire to convey to the City a permanent, non-exclusive
access easement (the “Permanent Easement”) and a temporary access easement
(the “Temporary Easement”), according to the terms and conditions contained
herein.
Easements
1. Recitals. The recitals above are hereby incorporated herein and made part of this
instrument.
2. Grant of Easements. For good and valuable consideration including the receipt of
$9,750 from the City, the receipt of which is acknowledged by the Owners, the
Owners hereby grant and convey to the City, its successors and assigns, the
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following easements:
A. A permanent, non-exclusive access easement for ingress and egress
purposes over, under, across, and through that part of the Property legally
described on the attached Exhibit B and shown on the attached Exhibit C
(collectively, the “Permanent Easement Area”).
B. A non-exclusive, temporary access easement for ingress and egress
purposes over, under, across and through that part of the Property as
described on the attached Exhibit D and shown on the attached Exhibit E
(collectively, the “Temporary Easement Area”).
3. Scope of Permanent Easement. The above-described Permanent Easement
includes the rights of the City, its contractors, agents, and employees the right to
enter upon and cross the Permanent Easement Area at all reasonable times,
including with construction vehicles and equipment, for the purpose of accessing
the City’s drainage and utility easements on adjacent property.
The Permanent Easement granted herein also includes the right to cut, trim, or
remove from within the Permanent Easement Area trees, shrubs, or other
vegetation, and to prohibit obstructions and grading alterations now or in the
future as in the City’s judgment unreasonably interfere with the use or
maintenance of the Permanent Easement Area, or the function thereof.
4. Scope of Temporary Easement. The above-described Temporary Easement
includes the rights of the City, its contractors, agents, and employees to enter the
Temporary Easement Area at all reasonable times with construction vehicles and
equipment, for the purpose of accessing the City’s drainage and utility easements
on adjacent property.
The Temporary Easement granted herein also includes the right to cut, trim, or
remove from within the Temporary Easement Area trees, shrubs, or other
vegetation, and to prohibit obstructions and grading alterations now or in the
future as in the City’s judgment unreasonably interfere with the use or
maintenance of the Temporary Easement Area, or the function thereof.
The Owners shall not erect, construct, or create any building, improvement,
obstruction, or structure of any kind within the Temporary Easement Area during
the Term of the Temporary Easement, defined below, either above or below the
surface or change the grade thereof without the express written permission of the
City.
5. Warranty of Title. Grantors warrant that they are the fee owners of the Property
and have the right, title, and capacity to convey to City the Easements herein.
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6. Restoration of Temporary Easement Area. Upon completion of construction or
the expiration of the Term of the Temporary Easement, defined below, whichever
occurs sooner, the City shall restore the Temporary Easement Area pursuant to
the City’s standard specifications for construction.
7. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’
fees, or losses resulting from any claims, actions, suits, or proceedings based upon
a release or threat of release of any hazardous substances, pollutants, or
contaminants which may have existed on, or which relate to, the Temporary
Easement Area, the Permanent Easement Area, or the Property prior to the date of
this Instrument.
8. Binding Effect. The easement shall run with the land and be binding on Grantors,
their heirs and assigns.
9. Term of Temporary Easement. The Temporary Construction Easement shall
expire on December 31, 2025.
---The remainder of this page intentionally left blank---
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Dated this ____ day of _________, 2023.
GRANTORS:
By:
Jerald L. Barrett
By:
Diane K. Barrett
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ___ day of
_____________, 2023, by Jerald L. Barrett and Diane K. Barrett, spouses married to each
other, Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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PID Nos. 66.640.0190, 66.640.0170 (Reserved for Recording) Abstract
TEMPORARY CONSTRUCTION EASEMENT
THIS EASEMENT is made by James R. Gould and Barbara J. Gould, spouses married
to each other, Grantors (“Owners”), in favor of the City of Kenyon, a Minnesota municipal
corporation, Grantee (“City”).
Recitals
A. The Owners are the fee owners of certain real estate located in Goodhue County,
Minnesota, legally described on the attached Exhibit A and Exhibit A-1 (collectively,
the “Property”); and
B. In furtherance of a utility improvement project, the City desires to obtain from the
Owners, and the Owners desire to convey to the City a temporary, non-exclusive
construction easement according to the terms and conditions contained herein.
Easement
1. Recitals. The recitals above are hereby incorporated herein and made part of this
Agreement.
2. Grant of Easement. For good and valuable consideration, the receipt of which is
acknowledged by the Owners, the Owners hereby grant and convey to the City, its successors
and assigns, a temporary easement for construction purposes which is legally described on
Exhibit B and Exhibit B-1, and depicted on Exhibit C and Exhibit C-1 attached hereto
(collectively, the “Easement Areas”).
3. Scope of Easement. The above-described easement includes the rights of the City, its
contractors, agents, and employees to enter the Easement Areas at all reasonable times for
purposes of installation, reinstallation, construction, reconstruction, repairing, altering, and
removing the City’s private sewer utilities, and all purposes ancillary thereto.
The temporary easement granted herein also includes the right to cut, trim, or remove
any landscaping, trees, shrubs, improvements, or vegetation within the Easement Areas that in
the City’s judgment unreasonably interfere with the easement.
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The Owners shall not erect, construct, or create any building, improvement, obstruction,
or structure of any kind within the Easement Areas during the Term of this temporary easement,
defined below, either above or below the surface or change the grade thereof without the express
written permission of the City.
4. Warranty of Title. The Owners warrant that they are the fee owners of the Property and
have the right, title, and capacity to convey to the City the easement herein.
5. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorneys’ fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the Easement Areas or the Property prior to the date of this instrument.
6. Binding Effect. The terms and conditions of this Easement shall run with the land and
be binding on Grantors, their heirs and assigns.
7. Term. The temporary easement granted herein shall expire on December 31, 2025.
STATE DEED TAX DUE HEREON: NONE
Dated this _____ day of ______________, 2023.
GRANTORS:
By:
James R. Gould
By:
Barbara J. Gould
STATE OF MINNESOTA )
) SS.
COUNTY OF _________ )
The foregoing instrument was acknowledged before me this ___ day of
_____________, 2023, by James R. Gould and Barbara J. Gould, spouses married to each other,
Owners, as Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis, MN 55402
(612) 337-9300
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EXHIBIT A
Legal Description of the Property
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EXHIBIT A-1
Legal Description of the Property
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EXHIBIT B
Legal Description of Easement Area
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EXHIBIT B-1
Legal Description of Easement Area
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EXHIBIT C
Depiction of Easement Area
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EXHIBIT C-1
Depiction of Easement Area
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RESOLUTION NO. 2023-17
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
A RESOLUTION ACCEPTING EASEMENTS
WHEREAS, Jerald L. Barrett & Diane K. Barrett, married to each other, Cemstone Concrete
Materials, LLC, an Iowa limited liability company, Wilstor LLC, a Minnesota limited liability company,
James R. Gould & Barbara J. Gould, married to each other, Donald S. Skillestad & Vickie Skillestad,
married to each other, and Phillip C. Breidall & Brandie M. Breidall, married to each other, are each the fee
owners (collectively, the “Owners”) of certain land in the City of Kenyon (the “City”), as identified and
legally described on Exhibit A attached hereto and incorporated herein (collectively, the “Property”); and
WHEREAS, in coordination with a City improvement and reconstruction project, including certain
improvements in connection with the Pearl Creek Sanitary Sewer Improvement Project, the Owners granted
certain sewer, roadway, drainage and utility easements, and certain temporary construction easements in
favor of the City, as legally described on the easements attached hereto, and incorporated herein on
Exhibit B.
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Kenyon as
follows:
1. The Mayor and the City Administrator are hereby authorized to sign and effectuate the intent
of this Resolution.
2. This Resolution shall be recorded in the office of the County Recorder and/or the Registrar
of Titles for Goodhue County, Minnesota, forthwith.
3. The City Council hereby agrees to accept the easements described above, and the terms
thereof.
4. The Mayor, City Administrator, City staff, and City consultants are further authorized and
directed to take any and all further necessary or convenient action in order to accomplish the
intent of this Resolution.
Adopted by the City Council of the City of Kenyon on this 11th day of July, 2023.
_________________________________________
Douglas Henke
Mayor
ATTEST:
___________________________________
Mark Vahlsing
City Administrator
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EXHIBIT A
Legal Description of the Property
1. Jerald L. Barrett & Diane K. Barrett (PID 666400200)
That part of the Northwest 1/4 of the Southwest 1/4 of Section 3, Township 109 North, Range 18
West of the Fifth Principal Meridian, Goodhue County, Minnesota, described as follows:
Beginning at a point 8 rods (132 feet) North of the Southwest corner of the NW 1/4 of the SW 1/4 of
said Section 3; running East 12 rods (198 feet); thence North 26 & 2/3 rods (440 feet); thence West
12 rods (198 feet); thence running South 26 & 2/3 rods (440 feet) to the place of beginning.
2. Jerald L. Barrett & Diane K. Barrett (PID 665400200)
Lots 1, 2, 3 and 4, Block 1, Slee & Langford’s Addition to Kenyon; also the Easterly 1/2 of Water
Street lying Westerly of and adjoining Lots 1, 2, 3 and 4, Block 1, Slee & Langford’s Addition to
Kenyon; also the North 1/2 of Pine Street lying South of and adjoining Lot 1, Block 1, Slee &
Langford’s Addition to Kenyon;
Lots 1, 2, 3 and 4, Block 3, Slee & Langford’s Addition to Kenyon; together with that portion of
Vacated Slee Street which accrued thereto by reason of the vacation thereof.
3. Jerald L. Barrett & Diane K. Barrett (PID 665400230)
Lots 1-9, Block 5, also the South 1/2 of Pine Street lying North of and adjoining Lot 1, Block 5, all
in Slee & Langford’s Addition to Kenyon;
All located in Goodhue County, Minnesota.
4. Jerald L. Barrett & Diane K. Barrett (PID 665400100)
Lots 5, 6, 11 and 12, Block 3; together with that portion of Vacated Slee Street which accrued thereto
by reasons of vacation thereof,
Lots 5, 22-25, Block 1, all in Slee & Langford’s Addition to Kenyon
That part of the Vacated Water Street adjacent to said lots 5, 25, Block 1 and lots 5, 6, Block 3, all in
Slee & Langford’s Addition to Kenyon
That part of the Vacated Alley adjacent to said lots 5, 6, 11 and 12, Block 3, Slee & Langford’s
Addition to Kenyon
All located in Goodhue County, Minnesota.
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5. Cemstone Concrete Materials, LLC (PID 66660090)
That part of the Northeast Quarter of the Southeast Quarter of Section 4, Township 109 North, Range
18 West of the Fifth Principal Meridian, Goodhue County, Minnesota, bounded and described as
follows:
Beginning at a point on the Easterly extension of the South line of the alley in Block 7 in Slee and
Langford’s Addition to Kenyon, distant 9 feet Northeasterly, measured at right angles, from the center
line of the most Southwesterly side track (previously designated I.C.C. #80) of the Chicago and North
Western Railway Company (formerly the Chicago Great Western Railway Company), as said side
track is now located; thence Northeasterly along a line drawn at right angles to the center line of the
main track of said Railway Company, as now located, a distance of 70 feet, more or less, to a point
distant 50 feet Southwesterly, measured at right angles, from said main track center line; thence
Northwesterly parallel with said main track center line a distance of 430 feet, more or less to a point
distant 9 feet Southeasterly, measured radially, from said side, track center line; thence Southwesterly,
Southerly, and Southeasterly parallel with said side track center line to the point of beginning,
EXCEPT THAT PART which lies northwesterly of the following described line: Commencing at the
east quarter corner of Section 4; thence South 89 degrees 09 minutes 17 seconds West, assumed
bearing, along the East-West quarter line of said Section 4, a distance of 768.06 feet to the easterly
right of way line of the land originally acquired by the Minnesota and Northwestern Railroad
Company (later the Chicago, Great Western Railroad Company and then the Chicago and North
Western Railway Company); thence South 14 degrees 42 minutes 15 seconds East, along said easterly
right of way line and along the westerly line of Slee Street, as platted in SLEE & LANGFORD’S
ADDITION, according to the recorded plat thereof, a distance of 740.00 feet; thence South 75 degrees
17 minutes 45 seconds West, a distance of 207.37 feet to the intersection with a line parallel with and
distant 50.00 feet southwesterly, measured at right angles, from the centerline of the main track of the
Chicago and North Western Railway Company, as said main track was located prior to its removal;
thence North 14 degrees 24 minutes 20 seconds West, along said parallel line, a distance of 310.00
feet to the point of beginning of the line to be described; thence South 75 degrees 35 minutes 40
seconds West, to the northwesterly line of the above described property and there terminating.
Surveyor’s Note to the provided Premises Description: the above description is only a portion of the
text from the recorded document A-592192. Portions of the document are not relevant to the
EASEMENT AREA.
6. Wilstor LLC (PID 66660380 & 66660390)
Tract B: That part of the SE 1/4 of the NE 1/4 and that part of the NE 1/4 of the SE 1/4, all in Section
4, Township 109 North, Range 18 West, Goodhue County, Minnesota, described as follows:
Commencing at the East Quarter corner of said Section 4; thence South 89 degrees 09 minutes 17
seconds West, assumed bearing, along the East-West Quarter line of said Section 4, a distance of
768.06 feet to the Easterly right of way line of the land originally acquired by the Minnesota and
Northwestern Railroad Company (later the Chicago, Great Western Railroad Company and then the
Chicago and Northwestern Railway Company) being the point of beginning of the land to be
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described thence South 14 degrees 42 minutes 15 seconds East, along said Easterly right of way line
and along the Westerly line of Slee Street, as platted in SLEE & LANGFORD’S ADDITION,
according to the recorded plat thereof, a distance of 740.00 feet; thence South 75 degrees 17 minutes
45 seconds West, a distance of 207.37 feet to the intersection with a line parallel with and distant
50.00 feet Southwesterly, measured at right angles, from the centerline of the main track of the
Chicago and Northwestern Railway Company, as said main track was located prior to its removal;
thence North 14 degrees 24 minutes 20 second West, along said parallel line, a distance of 715 feet,
more or less, to the Southerly line of Mogren Hill Road, formerly Red Wing Road; thence
Northeasterly along said Southerly right of way line of Mogren Hill Road, to the intersection with a
line bearing North 14 degrees 42 minutes 15 seconds West, from the point of beginning; thence South
14 degrees 42 minutes 15 seconds East, to the point of beginning;
EXCEPT
the following described property: Part of Block 4 and part of vacated Slee Street in the Plat of Slee
and Langford’s Addition to Kenyon, and part of the SE 1/4 of Section 4, Township 109 North, Range
18 West of the Fifth Principal Meridian, in the City of Kenyon, Goodhue County, Minnesota,
described as follows: Beginning at the Southeast corner of Lot 12 in Block 4, Slee and Langford’s
Addition (said point being in the South line of the NE 1/4 of the SE 1/4 of said Section 4), South 89
degrees 54 minutes 54 seconds West, assumed bearing, 255.37 feet from the Southeast corner of said
NE 1/4 of SE 1/4; thence continue South 89 degrees 54 minutes 54 seconds West, along said South
line of Block 4 and along said South line of NE 1/4 of SE 1/4, 216.24 feet; thence South 02 degrees
34 minutes 00 seconds West 157.93 feet; thence Southerly on a tangential curve, concave to the East,
radius 239.97 feet delta angle 10 degrees 07 minutes 00 seconds, an arc distance of 42.27 feet; thence
South 7 degrees 33 minutes 00 seconds, East 117.60 feet to a point in the center line of County State
Aid Highway 12; thence South 88 degrees 18 minutes 35 seconds West, along said highway center
line. 30.16 feet; thence North 07 degrees 33 minutes 00 seconds West 114.52 feet; thence Northerly
on a tangential curve, concave to the East, radius 269.37 feet, delta angle 10 degrees 07 minutes 00
seconds, an arc distance of 47.56 feet; thence North 02 degrees 34 minutes 00 seconds East 157.93
feet;
8. James R. Gould & Barbara J. Gould (PID 666400170 & 666400190)
That part of the Northwest Quarter of the Southwest Quarter of Section 3, Township 109 North, Range
18 West, Goodhue County, Minnesota, described as follows:
Commencing at the southwest corner of said Northwest Quarter of the Southwest Quarter thence
North 00 degrees 20 minutes 16 seconds East (assumed bearing) along the west line of said Northwest
Quarter of the Southwest Quarter, 132.00 feet (8 rods); thence South 89 degrees 39 minutes 44
seconds East 198.00 feet (12 rods) to the point of beginning; thence North 00 degrees 20 minutes 16
seconds East 256.24 feet (15 9/17 rods); thence South 89 degrees 39 minutes 44 seconds East 561.00
feet (34 rods); thence South 00 degrees 20 minutes 16 second West 383.69 feet to the south line of
said Northwest Quarter of the Southwest Quarter; thence South 89 degrees 59 minutes 39 seconds
West, along said south line, 445.15 feet to the east line of the west 313.85 feet of said Northwest
Quarter of the Southwest Quarter; thence North 00 degrees 20 minutes 16 seconds East, along said
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east line of the west 313.85 feet, a distance of 130.12 feet; thence North 89 degrees 39 minutes 44
seconds West 115.85 feet to the point of beginning.
Containing 4.62 acres, more or less.
AND
All that part of the Northwest Quarter of the Southwest Quarter of Section 3, Township 109 North,
Range 18 West of the Fifth Principal Meridian Goodhue County, Minnesota, bounded and described
as follows, to-wit: Beginning at the northwest corner of said Southwest Quarter, and running thence
east 80 rods (1320.00 feet), thence south 56 & 8/17 rods (931.76 feet), more or less to a point 23 &
9/17 rods (388.24 feet) north from the southeast corner of said Northwest Quarter of said Southwest
Quarter, thence west 68 rods (1122.00 feet), thence north 11 & 7/51 rods (183.76 feet), thence west
12 rods (198.00 feet) to the west line of said 40 acre tract, thence north 45 & 1/3 rods (748.00 feet),
more or less, to the point of beginning.
10. Donald S. Skillestad & Vickie Skillestad (PID 661400090)
Part of the Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of Section Three (3),
Township 109 North, Range 18 West, Goodhue County, Minnesota, described as follows:
Beginning at a point 72 rods West of the Northeast corner of said Southwest Quarter (SW1/4) of the
Southwest Quarter (SW1/4) of Section Three (3), also being the Northwest corner of Lot Three (3)
of Auditor’s Subdivision of said Southwest Quarter (SW1/4) of the Southwest Quarter (SW1/4) of
Section Three (3), running thence South 187 1/2 feet, thence East 105 feet, thence North 187 1/2
feet, thence West 105 feet to the place of beginning.
AND
Beginning at a point 72 rods West and 187 1/2 feet south of the northeast corner of said Southwest
Quarter (SW1/4) of the Southwest Quarter (SW1/4); thence run east 95 feet; thence south 126 feet;
thence west 95 feet; thence north 126 feet to the place of beginning.
11. Phillip C. Breidall & Brandie M. Breidall (PID 661400030)
Lot 2 of Auditor’s Subdivision of the Southwest Quarter of the Southwest Quarter of Section 3,
Township 109, Range 18, Goodhue County, Minnesota.
Together with that part of Lot 1 of Auditor’s Subdivision of the Southwest Quarter of the Southwest
Quarter of Section 3, Township 109, Range 18, Goodhue County, Minnesota, lying Northerly of the
South 188.50 feet thereof.
12. Phillip C. Breidall & Brandie M. Breidall (PID 666400191)
That part of the Northwest Quarter of the Southwest Quarter of Section 3, Township 109, Range 18,
Goodhue County, Minnesota, described as follows:
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Beginning at the Southwest corner of said Northwest Quarter of the Southwest Quarter; thence North
00 degrees 20 minutes 16 seconds East (assumed bearing) along the West line of said Northwest
Quarter of the Southwest Quarter 132.00 feet (8 rods); thence South 89 degrees 39 minutes 44 seconds
East 313.85 feet; thence South 00 degrees 20 minutes 16 seconds West 130.12 feet to the South line
of said Northwest Quarter of the Southwest Quarter, thence South 89 degrees 59 minutes 39 seconds
West, along said South line, 313.86 feet to the point of beginning.
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EXHIBIT B
Easements Given to the City by the Owners
(attached hereto)
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AGENDA ITEM NO.
VII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Engineering
ITEM TYPE: Engineering
AGENDA SECTION: ENGINEERING
SUBJECT: 2023 Street Maintenance project
-Construction Engineering proposal
SUGGESTED ACTION: The City Engineer will provide an update on the status of the Street
Improvement project. He is also requesting approval of the
Construction engineering proposals for the project. See attached
attachments below.
MOTION NEEDED
ATTACHMENTS:
01.1_2023 Street Improvement Project.pdf
01.2_2023 Street Project_Construction Eng Proposal.pdf
92
2023 Street Improvements Project
Contracts for this project are currently out for signatures and should be finalized soon. The prime contractor, BMI,
currently plans to start work in mid-August. Once any pavement removals begin, the contractor will have 30 days to
complete paving work. Any remaining work must be completed by late October/Early November.
We have attached a proposal for the remainder of engineering services needed to complete this project. Engineering is
included in the overall project budget. Financing for the project will be discussed separately at the meeting.
Requested Action:
Approval of Proposal for Construction Engineering Services
H:\KENYON_CI_MN\_General\Council Meetings\2023\07 - July 2023\01.1_2023 Street Improvement Project.docx
93
July 6th, 2023
Mr. Mark Vahlsing
City Administrator
City of Kenyon
RE: 2023 Street Improvements
Proposal for Construction Engineering Services
BMI Project No: 0H1.127340
Mr. Vahlsing:
This proposal includes scope and fee information for construction engineering services related to the 2023
Street improvement project base bid and alternates 1 and 2, awarded last month.
1. Scope of Work
A. Contract Administration
Prepare and review final contract documents following project award
Coordinate and attend preconstruction and regular construction meetings with city and
contractor
Prepare and review contractor’s pay applications or contract amendments, as needed.
Provide monthly progress updates for city council
Communications between the City and Contractor
Project closeout documentation
B. Construction Observation/Field work
Review construction material submittals and shop drawings
Construction staking and marking of work limits
Field engineering as required to meet project goals with on-site conditions
Field Observation and documentation
Construction material testing and other quality assurance activities
Addressing contractor questions
H:\KENYON_CI_MN\_Proposals\2023 Street Improvements\2023 Street Project_Construction.docx
94
2023 Street Improvements July 2023
Proposal for Construction Engineering Services Page 2
C. Public Communications
Prepare and deliver regular construction newsletters/notices/communications to residents
Take resident phone calls/emails from residents
Coordinate resident requests with contractor or city
2. Fees
A summary of the fees associated with the scope is provided below
Item Cost
Project Management $ 5,445
Contract Admin, Construction Observation, Public Communication $ 64,442
Total $ 69,876
The fees noted above are estimated, based on the scope noted above and project schedule
requirements. A breakdown of these fees is attached. Costs will be billed on an hourly basis. The
terms of the work performed under this proposal would be in accordance with the existing Agreement
for Professional Services between the City of Kenyon and Bolton & Menk.
3. Schedule
As we currently understand, construction may start around mid-August. If work progresses as
specified, the majority of construction should be complete within a month. In the month leading up to
construction, some preparation time will be required for the preconstruction meeting, site visit(s),
submittal reviews, and resident communication. Following work, punch list repairs normally take a
month or more of intermittent visits and coordination before the project is ready for close-out.
We value our relationship with the City of Kenyon as your City Engineer and appreciate the opportunity
to assist the City with this project. If there are any questions related to this proposal, please contact us.
Sincerely,
Bolton & Menk, Inc.
Derek P. Olinger, P.E. Brian P. Malm, P.E.
City Engineer Principal Engineer
Attachments: Engineering Fee Breakdown
95
2023 Street Improvements July 2023
Proposal for Construction Engineering Services Page 3
Engineering Fee Breakdown
Project: 2023 Street Improvements
Survey Cr
City Engr Principal
Design Reimb
AA RPR Total Hr Total Labor Total
Engr Expense**
Chief
Phase: Construction
1.2 Project Management 33 0 0 0 0 0 33 $ 5,445.00 $ - $5,445.00
2.1 Contract Admin & Observation, Public Communication 70 8 40 20 33 235 406 $ 60,422.00 $ 4,000.00 $ 64,422.00
Subtotal Hours 103 8 40 20 33 235 439 $ 65,867.00 $ 4,000.00 $ 69,867.00
** Reimbursable Expenses include Construction Material Testing
96
AGENDA ITEM NO.
VIII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Legal
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Review of Ordinance 102 (interim ordinance) Cannabis.
SUGGESTED ACTION: Further discussion on the interim ordinance authorizing a study and
imposing a moratorium of the operation of Cannabis. Summaries of
the new law, and a copy of the interim ordinance are attached. Before
the draft ordinance is completed there is an additional question for the
Council should discuss. That is whether the city also wants to regulate
hemp products (thc edibles and gummies that have been available since last
year). The City attorney will discuss this further at the July Council meeting.
If the Council moves to proceed with the Ordinance a Public Hearing would
be scheduled for the August Council meeting.
ATTACHMENTS:
DOCSOPEN-#881560-v1-Memo_Cannabis_Act_Summary.DOCX
DOCSOPEN-#881565-v1-MEMO_Immediate_Changes_to_Law_(Cannabis Act).DOCX
ORDINANCE 102 Cannabis Business Interim.docx
97
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
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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 delivery service;
lower-potency hemp edible manufacturer;
lower-potency hemp edible retailer;
medical cannabis cultivator;
medical cannabis processor;
medical cannabis retailer; or
medical cannabis combination business.
A license is not required for the sale of hemp-derived topical products.
The provision establishing the OCM has an effective date of July 1, 2023, and it authorizes
expedited state rulemaking. Under the expedited process, an agency publishes notice of its
proposed rule(s) in the State Register and mails notices to those who have requested notice. The
agency must then allow at least 30 days for comment. At the end of the comment period, and after
an administrative law judge approves the form and legality, the agency may adopt the rule(s).
Unlike the customary rulemaking process, there is no opportunity for public hearings under the
expedited process unless the legislature specifically provides for this opportunity. Technically, the
OCM could adopt rules within 30 days and start issuing licenses after that rulemaking is completed.
However, given the scope of the task at hand, it seems apparent that rulemaking will not be
completed for a significant period of time. The State must go through the process of establishing
the OCM and retaining employees before it can even start the rulemaking process. According to
the League of Minnesota Cities’ website, the authors of the Act anticipate that the first retail
licenses for products will be issued sometime in 2024.
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C. Communications with Cities
Cities will be involved, to an extent, in the OCM’s licensing process. Upon receipt of an
application for a license, the OCM is required to contact the City and provide it with 30 days in
which to provide input on the application. Within 30 days of receiving a copy of an application
for a cannabis business license from the OCM, the City shall certify on a form provided by the
OCM whether a proposed cannabis business complies with local zoning ordinances and, if
applicable, whether the proposed business complies with the state fire code and building code. The
City can provide the OCM with any additional information it believes is relevant to the OCM’s
decision on whether to issue a license, including, but not limited to, identifying concerns about the
proposed location of a cannabis business or sharing public information about an applicant.
The OCM will establish an expedited complaint process to receive, review, and respond to
complaints made by cities about a cannabis business. Complaints may include alleged violations
of local ordinances or other alleged violations. At a minimum, the expedited complaint process
will require the OCM to provide an initial response to the complaint within seven days and perform
any necessary inspections within 30 days.
If the City notifies the OCM that a cannabis business (other than a cannabis retailer, cannabis
microbusiness with a retail operations endorsement, cannabis mezzobusiness, lower-potency hemp
edible retailer, medical cannabis retailer, or medical cannabis combination business) poses an
immediate threat to the health or safety of the public, the OCM must respond within one business
day and may take certain enforcement action against said business.
III. Local Control and Obligations
As expected, the degree of local control available to cities is extremely limited. However, there
are a few options in the Act that the City can pursue.
A. General Regulatory and Zoning Authority
The Act expressly provides that a city cannot prohibit the possession, transportation, or use of
cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products authorized under the statutes, and a city may not prohibit the establishment or operation
of a cannabis business licensed under state statute. However, the City may adopt “reasonable
restrictions on the time, place, and manner of the operation of a cannabis business provided
that such restrictions do not prohibit the establishment or operation of cannabis businesses.”
The OCM is tasked with working with local governments to develop model ordinances that
includes these provisions, standardized forms, and procedures for the issuance of retail registration
(see below) and model policies and procedures for compliance checks.
The Act also allows regulation on distances from certain types of buildings/uses through zoning
regulations. Specifically, cities may prohibit the operation of a cannabis business within 1,000 feet
of a school or 500 feet of a day care, residential treatment facility, or an attraction within a public
park that is regularly used by minors, including a playground or athletic field.
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Additionally, cities can limit, by ordinance, the number of cannabis retailers, cannabis
mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a
retail operation to no fewer than one registration for every 12,500 residents. A city may also allow
licensed cannabis retailers in excess of these minimums. It is important to note that the language
of the ordinance must reference “registrations” as opposed to licenses. Furthermore, if a county
has one active registration for every 12,500 county residents, a city within the county is not
obligated to register a cannabis business. The Act does not address when populations don’t exactly
match the 12,500 number or multiples thereof, and whether cities should round up or round down.
The future OCM rules may address this question.
In the zoning context, the Act also requires that prior to the issuance of a cannabis business license,
the OCM “shall request a land use compatibility statement from the city, town, or county that
authorizes the land use. The land use compatibility statement must demonstrate that the requested
license is for a land use that is allowable within the given zoning designation where the land is
located. The OCM may not issue a license if the land use compatibility statement shows that the
proposed land use is prohibited in the applicable zone or if the applicant has failed to meet the land
use requirements of the jurisdiction. A city that receives such a request must act on the request
within 21 days of receipt if the use is allowable and has applied for and received all necessary land
use approvals. Based on the language used in the Act, it is unclear if the OCM will also be
requesting land use compatibility statement for lower potency hemp licenses. Again, that might
be clarified in the OCM rules. As a general rule, structures housing cannabis businesses must also
comply with local building and fire regulations.
B. Interim Ordinance/Moratorium
The Act provides that if a city is “conducting studies or has authorized a study to be conducted or
has held or has scheduled a hearing for the purpose of considering adoption or amendment of
reasonable restrictions on the time, place, and manner of the operation of a cannabis business, the
governing body of the local unit of government may adopt an interim ordinance applicable to all
or part of its jurisdiction for the purpose of protecting the planning process and the health, safety,
and welfare of its citizens.” As part of this interim ordinance, a city may prohibit a cannabis
business from opening in its jurisdictional boundaries until January 1, 2025. Before adopting
the interim ordinance, a city must hold a public hearing. There are no specific provisions regarding
notice or other public hearing guidelines. The City should determine now whether it wants to
adopt a moratorium on cannabis businesses as authorized by the Act, which will provide the City
some time to consider what options are available and what policy direction is most desirable.
Adopting an interim ordinance will also allow the City to consider the not-yet-established rules
and model ordinance the OCM will develop. Given all of the questions and uncertainties
surrounding the Act and its potential impacts, it is recommended that the City adopt such a
moratorium after July 1, 2023.
C. City Cannabis Store/Liquor Store Sales
If a city desires, it may establish, own, and operate a municipal cannabis store subject to the
restrictions in the Act. Liquor stores may also sell edible cannabinoids immediately with the
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passage of the Act. That said, prior to selling any of these products, it is recommended that cities
first confirm with their insurance carrier whether they have adequate liability coverage in place.
D. Retailer Registration
1. General Provisions
The Act requires the following retailers to register with the City prior to making sales to customers
or patients:
A cannabis microbusiness with a retail operations endorsement;
Cannabis mezzobusiness with a retail operations endorsement;
Cannabis retailer;
Medical cannabis retailer;
Medical cannabis combination business; and
Lower-potency hemp edible retailer.
The registration requirement does not apply to other cannabis businesses (manufacturers,
wholesalers, cultivators, transporters, etc.). The City may impose an initial retail registration
fee of $500, or up to half the amount of the applicable initial license fee paid to the State,
whichever is less. The City may also impose a renewal retail registration fee of $1,000, or up
to half the amount of the applicable renewal license fee paid to the State, whichever is less.
The initial license fee includes the fee for initial registration and the first annual renewal.
Therefore, renewal fees must be charged by the City at the time of the second renewal and each
subsequent annual renewal thereafter. The City cannot charge an application fee, and a cannabis
business with a cannabis and medical cannabis retail license for the same location can only be
charged a single registration fee. For reference, the following are the fees charged by the State:
Cannabis microbusiness: initial license fee of $0 and a renewal license fee of $2,000;
Cannabis mezzobusiness: an initial license fee of $5,000 and a renewal license fee of
$10,000;
Cannabis retailer: an initial license fee of $2,500 and a renewal license fee of $5,000;
Medical cannabis retailer: an initial license fee of $0 and a renewal license fee of $0;
Medical cannabis combination business: an initial license fee of $20,000 and a renewal
license fee of $70,000; and
Lower-potency hemp edible retailer: an initial license fee of $250 per retail location and a
renewal license fee of $250 per retail location.
2. Registration Obligations Imposed Upon the City
The City must issue a registration if the business meets certain criteria (valid license, paid fees,
compliant with preliminary check and current on property taxes). Before issuing a retail
registration, the City can conduct a “preliminary compliance check” to ensure that the
cannabis business is in compliance with the applicable operation requirements and the limits
on the types of products that may be sold. When the OCM renews a license, the City must renew
the registration.
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Registration creates additional obligations on the part of the City. The City is required to
“conduct compliance checks of every cannabis business and hemp business with a retail
registration issued by” the City. The checks must assess compliance with age verification
requirements, the applicable operation requirements, and the applicable limits on the types of
products being sold. Checks regarding compliance with operation requirement and the limits on
the types of products sold must be performed at least once each calendar year and may be
performed by a law enforcement officer or another City employee.
Similar to tobacco licensing, the City is also required to conduct unannounced age
verification compliance checks at least once each calendar year. Age verification compliance
checks must involve persons at least 17 years of age, but under the age of 21, who, with the prior
written consent of a parent or guardian if the person is under the age of 18, attempt to purchase
adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-
derived consumer products under the direct supervision of a law enforcement officer or an
employee of the City.
3. Registration Suspension
If the City determines that a cannabis business or hemp business with a retail registration is
not operating in compliance with the statute or that it poses an immediate threat to the health
or safety of the public, the City may suspend the retail registration of the cannabis business
or hemp business. The City must immediately notify the OCM of the suspension and include a
description of the grounds for the suspension. The OCM will review the suspension and may order
reinstatement of the retail registration or other licensed based penalties or enforcement action. The
retail registration suspension may not exceed 30 days unless the OCM suspends the license and
operating privileges of the cannabis business or hemp business for a longer period or revokes the
license. The City may reinstate the retail registration if the City determines that any violation has
been cured. The City must reinstate the retail registration if the OCM orders reinstatement.
Sales are prohibited without registration, and the City may impose a civil penalty of up to $2,000
for each violation of the registration provisions.
4. Retailer Operation Standards
The Act includes operational standards for retail facilities, which are regulated by the State. A few
standards that the City may want to know about are below:
Cannabis retailers are authorized to sell a variety of other products.
A cannabis retailer may operate up to five retail locations in the state.
A person, cooperative, or business holding a cannabis retailer license may also hold a
cannabis delivery service license, a medical cannabis retailer license, and a cannabis event
organizer license. It cannot hold or operate any other cannabis business.
No person, cooperative, or business may hold a license to own or operate more than one
cannabis retail business in one city and three retail businesses in one county. A restriction
on the number or type of license a business may hold applies to every cooperative member
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or every director, manager, and general partner of a cannabis business. (This is potentially
an issue for current cannabis business that appear to be very interconnected.)
The Act also establishes hours of operation for cannabis retailers, but the City can by ordinance,
further restrict the hours of sale. The Act prohibits sales during the following hours:
On Sundays, except between the hours of 11:00 a.m. and 6:00 p.m.;
Before 8:00 a.m. or after 10:00 p.m. on Monday through Saturday;
On Thanksgiving Day and Christmas Day; and
After 8:00 p.m. on Christmas Eve, December 24.
Any additional reasonable restriction on hours imposed by the City within the Act’s
requirements.
IV. Data Practices Implications
The Act includes data practices provisions that expressly apply to the OCM and indirectly apply
to the City. Application data submitted by an applicant for a cannabis business license or hemp
business license, other than the specific data listed in Minnesota Statutes, section 342.20 is not
public, as is the identity of a complainant who has made a report concerning a license holder or an
applicant that appears in inactive investigative data unless the complainant consents to the
disclosure. Keep in mind, however, that even though the OCM receives the application or may
receive the complaint, the protection travels with the data, so if the City receives any of that data
from the OCM, the applicant, or the complainant, then the protected data classification applies.
Once an applicant for a cannabis business license or hemp business license becomes a license
holder, most of the application data that the license holder previously submitted become public
data with a few exceptions.
V. Local Government Cannabis Aid/Revenue Sharing
The Act includes aid to local governments. With regard to cities, it provides:
Beginning for aid payable in 2024, the amount available for aid to cities equals 50 percent
of the amount certified in that year to the commissioner (balance of the local government
cannabis aid account in the special revenue fund).
The amount available “must be distributed proportionally to each city according to the
number of cannabis businesses located in the city as compared to the number of cannabis
businesses in all cities as of the most recent certification.
Beginning in fiscal year 2025 and annually thereafter, the amount in the local government
cannabis aid account in the special revenue fund is annually appropriated to the
commissioner of revenue to make the aid payments.
The local government cannabis aid account is funded with state sales revenue. Specifically, state
tax revenue is divided as follows: 80 percent to the general fund and 20 percent to the local
government cannabis aid account in the special revenue fund.
VI. Additional Act Highlights
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A cannabis event organizer must receive City approval, including obtaining any necessary
permits or licenses issued by the City, before holding a cannabis event.
Upon City approval, a cannabis event may designate an area for consumption of adult-use
cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived
consumer products, or any combination of those items.
The Act creates a private cause of action for a “nuisance” with relief being limited to
injunctive relief and the “greater of the person’s actual damages or a civil penalty of $250.”
If a landlord or association “fails to enforce the terms of a lease, governing document, or
policy related to the use of adult-use cannabis flower on the premises or property, a person
who is injuriously affected or whose personal enjoyment is lessened by a nuisance . . . as a
result of the failure to enforce the terms may bring an action against the landlord or
association seeking injunctive relief and the greater of the person's actual damages or a
civil penalty of $500.”
The State imposes a sales tax of 10% on sales, in addition to existing taxes that may apply
to sales. Cities are prohibited from imposing a tax on the sale of cannabis products.
The Act includes provisions for certain grants, and cities are eligible participants for many
of the grants.
The Act includes regulatory provisions enforced by the State, including packaging,
labeling, testing, and advertising.
VII. Scope of Personal Adult Use of Cannabis
Under the Act, personal use cannabis for a person 21 years of age or older is allowed as follows
(cities cannot establish stricter regulations):
Use, possess, or transport cannabis paraphernalia;
Possess or transport two ounces or less of adult-use cannabis flower in a public place;
Possess two pounds or less of adult-use cannabis flower in the individual's private
residence;
Possess or transport eight grams or less of adult-use cannabis concentrate;
Possess or transport edible cannabis products or lower-potency hemp edibles infused with
a combined total of 800 milligrams or less of THC;
Give for no remuneration to an individual who is at least 21 years of age:
o two ounces or less of adult-use cannabis flower;
o eight grams or less of adult-use cannabis concentrate; or
o an edible cannabis product or lower-potency hemp edible infused with 800
milligrams or less of THC; and
Use adult-use cannabis flower and adult-use cannabis products in the following locations:
o A private residence, including the individual's curtilage or yard;
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o On private property, not generally accessible by the public, unless the individual
is explicitly prohibited from consuming adult-use cannabis flower, cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products on the
property by the owner of the property; or
o On the premises of an establishment or event licensed to permit on-site
consumption.
Up to eight cannabis plants, with no more than four being mature, may be grown at a
single residence without a license to cultivate cannabis provided cultivation takes place
at the primary residence of an individual 21 years of age or older and in an enclosed,
locked space that is not open to public view.
VIII. Human Resources Considerations
In light of the Act, there are employment/human resources provisions that will trigger amendments
to the City’s personnel policies. Some considerations by cities as employers will include:
Drug testing and how policies are written. The Act redefines the term “drug” to not include
specified cannabis products, separates newly created “cannabis testing” from “drug
testing”, includes limitations to such cannabis testing, and, as confusing as it seems, lists
the instances, based on type of job, when cannabis use can be treated as a “drug” for
purposes of “drug testing” rather than a cannabis product subject to “cannabis testing.”
Impact of the Act with respect to CDL holders and safety-sensitive employees.
Impact of the Act regarding statutory protection of off-duty use of legal products under
Minn. Stat. § 181.938. The Act expands the statutory protections to the newly legalized
products. However, the Act specifically states that section 181.938 does not limit an
employer's ability to discipline or discharge an employee for cannabis flower, cannabis
product, lower-potency hemp edible, or hemp-derived consumer product use, possession,
impairment, sale, or transfer during working hours, on work premises, or while operating
an employer's vehicle, machinery, or equipment, or if a failure to do so would violate
federal or state law or regulations or cause an employer to lose a monetary or licensing-
related benefit under federal law or regulations.
IX. Further Limitations on Use of Cannabis
Use in public is not allowed. Indeed, a city may adopt an ordinance establishing a petty
misdemeanor offense for a person who unlawfully uses cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products in a public place
provided that the definition of public place does not include the following:
o a private residence, including the person's curtilage or yard;
o private property not generally accessible by the public, unless the person is
explicitly prohibited from consuming cannabis flower, cannabis products, lower-
potency hemp edibles, or hemp-derived consumer products on the property by the
owner of the property; or
o the premises of an establishment or event licensed to permit on-site consumption.
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Use in a vehicle is not allowed and operation while impaired is still unlawful.
Use in schools is not allowed.
Use in areas where smoking is prohibited is not allowed.
Cannot “vaporize or smoke cannabis flower, cannabis products, artificially derived
cannabinoids, or hemp-derived consumer products in any location where the smoke,
aerosol, or vapor would be inhaled by a minor.”
“A proprietor of a family or group family day care program must disclose to parents or
guardians of children cared for on the premises of the family or group family day care
program, if the proprietor permits the smoking or use of cannabis flower, cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products on the
premises outside of its hours of operation. Disclosure must include posting on the premises
a conspicuous written notice and orally informing parents or guardians. Cannabis flower
or cannabis products must be inaccessible to children and stored away from food products.”
Extraction of cannabis concentrate using solvents is not allowed without a license.
X. Summary of Key Impacts to the City
On or after July 1, 2023:
o City may adopt an interim ordinance and moratorium through January 1, 2025.
o The City may adopt “reasonable restrictions on the time, place, and manner of the
operation of a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.” There will be model ordinances
prepared, but they likely will not be available for a significant period of time.
o The City can enforce other ordinances. Based on the language of the Act, this would
include public nuisance provisions.
o The City can, by ordinance, limit the number of licensed cannabis retailers,
cannabis mezzobusinesses with a retail operations endorsement, and cannabis
microbusinesses with a retail operations endorsement in the City, but it can go no
lower than one registration for every 12,500 residents. If the county has one active
registration for every 12,500 residents in the county, the City is not obligated to
register a cannabis business.
Once state rulemaking and licensing begins:
o Within 30 days of receipt, the City must certify to the OCM that an applicant’s
proposed business plan complies with local zoning ordinances and, if applicable,
whether the proposed business complies with the state fire code and building code.
o The City can give OCM additional relevant information prior to the issuance of a
license, including concerns about the proposed location of a cannabis business or
sharing public information about an applicant.
o The City can charge limited registration fees for businesses that have to register
with the City. The City has no discretion as to the issuance of the registration or the
maximum amount of the fees.
o The City has limited authority to suspend a registration, but the ultimate license
authority rests with the OCM.
o Before issuing a retail registration, the City can conduct a “preliminary compliance
check” to ensure that the cannabis business is in compliance with the applicable
operation requirements and the limits on the types of products that may be sold.
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o The City must conduct compliance and age verification checks for retailers
registered in the City on an annual basis. The compliance checks must assess
compliance with age verification requirements, the applicable operation
requirements, and the applicable limits on the types of products being sold.
o The Act provides retailer hours of operation, but the City can limit those hours a
little further by ordinance.
o The City may establish, own, and operate a municipal cannabis store subject to the
restrictions in the statutes.
o A cannabis event organizer must receive City approval, including obtaining any
necessary permits or licenses issued by the City, before holding a cannabis event.
XI. Conclusion and Recommendation
As you might glean from the information summarized above, the Act is extensive and contains
numerous provisions, many of which are still being interpreted and reconciled. It is anticipated
that OCM is still many months away from rulemaking and license issuance. That said, due to all
of the uncertainty around potential rules and impacts, it is strongly recommended that the
City adopt an interim ordinance after July 1, 2023 to allow it ample time to establish local
regulations that satisfy any of the City’s potential policy concerns within the extent
authorized. Following the adoption of such an interim ordinance, the City would have until
January 1, 2025 to establish reasonable restrictions on the time, place and manner of the operation
of cannabis businesses. This will also provide time to make important decisions and review model
ordinances as they are made available. The interim ordinance would not necessarily need to remain
in effect through January 1, 2025 should the City determine how it wishes to regulate prior to then.
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Fifth Street Towers
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
MEMORANDUM
TO: City of Kenyon
FROM: Scott Riggs, City Attorney
Joseph Sathe, Assistant City Attorney
DATE: June 9, 2023
RE: Summary of immediately effective changes to Minnesota Statutes, section 151.72
(2022 legalized edible cannabinoid products)
______________________________________________________________________________
I. Introduction
The purpose of this memorandum is to provide guidance on the impact of the recently enacted
cannabis legalization bill (the “Act”) to Minnesota Statutes, section 151.72, which you might recall
was amended in 2022 and resulted in the expanded sales of hemp-derived THC products in
Minnesota. The Governor signed the Act on May 30, 2023. Unlike the majority of the provisions
in the Act, which take effect on July 1, 2023, the provisions amending section 151.72 are effective
immediately. In addition to amending section 151.72, the Act also amends Minnesota Statues,
section 340A.412 to allow edible cannabinoid products to be sold at exclusive liquor stores.
However, before a city decides to sell these products, it should first confirm with its insurance
provider that adequate liability coverage is in place.
II. Regulation for Sales
The Act clarifies what types of products are considered under the two categories of products
created in 2022: 1) nonintoxicating cannabinoids; 2) edible cannabinoid products.
A. Nonintoxicating Cannabinoids
Previous guidance from the Minnesota Board of Pharmacy provided that nonintoxicating
cannabinoids could include a wide range of products that could be ingested by humans and animals
in many ways. The Act limits nonintoxicating cannabinoid products to products that are meant for
external application only, but which do not produce an intoxicating effect when consumed by any
route of administration. The new language explicitly prohibits the sale of nonintoxicating
nonedible products meant for vaping or inhaling of smoke, chewing, drinking, swallowing,
injection, or by application to the mucus membrane.
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B. Edible Cannabinoid Products
The definition of edible cannabinoid products remains the same – a product that is intended to be
eaten or consumed as a beverage by humans, contains a cannabinoids in combination with food
ingredients, and is not a drug – but a number of minor changes contained in the Act impact the
sale edible cannabinoid products.
1. Likeness
In addition to the previous requirements specific to edible cannabinoid products, such as the
requirement that they not bear resemblance to a real or fictional person, animal, or fruit that appeals
to children, be modeled after a brand of products primarily consumed or marketed to children, or
be made by applying an extracted or concentrated hemp-derived cannabinoid to a commercially
available candy or food snack item, they now also must not be substantially similar to a meat food
product; poultry food product, or dairy product (the latter two have statutory definitions elsewhere
in law).
2. Beverage Serving Size
Edible cannabinoid products that are meant to be consumed as a beverage may contain no more
than two servings (5 mg per serving means a beverage may contain no more than 10 mg per
package). The limits for edible cannabinoid products that are not intended to be consumed as a
beverage remain the same – 50 mg of any THC total per package and each serving must be
differentiated by wrapping, scoring or other indicator, and must not contain more than 5 mg of any
THC.
3. Type of THC Allowed
The Act adds new definitions for “artificially derived cannabinoid” and “synthetically derived
cannabinoids.” Artificially derived cannabinoids are cannabinoids derived from hemp that are
changed after extraction and synthetically derived cannabinoids are substances with a similar
chemical structure and have a similar impact to a cannabinoid, but which are not extracted or
derived from hemp plants or parts. The Act clarifies that an edible cannabinoid product may
contain delta-8 or delta-9 cannabinoids that is extracted or derived from the hemp plant or is an
artificially derived cannabinoid but edible cannabinoid products cannot contain a synthetically
derived cannabinoid (not derived or extracted from hemp).
4. Display and Storage
The Act requires that all edible cannabinoid products available for retail sale must be displayed
behind the checkout counter where the public is not permitted or in a locked case. This display
and storage requirement does not apply to edible cannabinoid products meant to be consumed as
beverages.
The Act adds additional and specific age verification requirements. Retailers must verify that a
client is over the age of 21 before completing a sale. Proof of age can be established only via
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passport, driver’s license, Tribal ID, state ID, or instructional permit. Retailers may seize IDs if
they believe them to be falsified or used in violation of the law but must then deliver the same to
law enforcement within 24 hours of seizure.
5. Exclusive Liquor Store Sales Authorized
In addition to amending Minnesota Statutes, section 151.72, the Act amends Minnesota Statutes,
section 340A.412 to specifically allow exclusive liquor stores to sell edible cannabinoid products.
C. On-Site Consumption – Edible Cannabinoid Products and Nonintoxicating
Cannabinoids
Products may be sold for on-site consumption if the retailer has an on-sale liquor license under
Minnesota Statutes, section 340A. Additionally, products must be served in their original
packaging and cannot be sold to patrons who a retailer knows or should reasonably know is
intoxicated. Retailers cannot permit the products to be mixed with alcohol, and products that are
removed from packaging must be consumed on-site. This change allows the on-site consumption
of both nonintoxicating cannabinoid products and edible cannabinoid products, including both
traditional edibles and products meant to be consumed as beverages.
D. Regulations for Testing
The Act adds a definition for “batch.” A batch is a specified amount of product that must meet
certain manufacturing requirements, a portion of which is then submitted to the testing facility.
Each batch must be tested and each label must identify the batch. The Act also requires additional
testing and disclosure requirements.
Manufacturers must submit a sample of each batch of products for testing to an accredited,
independent laboratory before July 2, 2023. The manufacturer must further disclose to the lab all
known information regarding pesticides, fertilizers, solvents, and other foreign materials applied
or added to the hemp during manufacturing. The commissioner of health is entitled to review test
results at any time.
E. Regulations for Registration
The Act also transitions the state level enforcement of aspects of Minnesota Statutes, section
151.72 to the Minnesota Department of Health. All individuals selling edible cannabinoid products
must register with the Minnesota Department of Health on or before October 1, 2023. Selling
without registration after that date is prohibited.
F. Penalties for Violations
The new legislation makes violating or falsifying records to comply with Minnesota Statutes,
section 151.72 a gross misdemeanor punishable by a $3,000 fine, up to one year imprisonment, or
both.
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III. Termination of Minnesota Statues, section 151.72
Under the Act, Minnesota Statues, section 151.72 will be automatically repealed on March 1, 2025.
The Act also contains regulations for products defined as “lower-potency hemp edibles” which are
defined similarly (but not the same) as edible cannabinoid products, although it is still unclear how
the transition between Minnesota Statues, section 151.72, i.e., edible cannabinoid products, to
lower-potency hemp edibles will occur between now and March 1, 2025.
IV. Conclusions; Next Steps
The amendments to Minnesota Statues, section 151.72 make clarifications to the types of products
that may be sold as edible cannabinoid products, increase testing and labeling requirements, and
provide for additional criteria and requirements related to sales. In addition, changes to Minnesota
Statutes, section 340A.412 allows edible cannabinoid products to be sold in exclusive liquor stores.
That said, if a city wishes to sell these products in, for example, a municipal liquor store, it should
first check with its insurance carrier to confirm that proper coverage is in place. It is my
understanding that, as of the date of this memorandum, the League of Minnesota Cities Insurance
Trust (LMCIT) is still determining how to proceed under the new law.
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ORDINANCE NO. 102
AN INTERIM ORDINANCE AUTHORIZING A STUDY AND IMPOSING A
MORATORIUM ON THE OPERATION OF CANNABIS BUSINESSES
THE CITY COUNCIL OF THE CITY OF KENYON, GOODHUE COUNTY,
MINNESOTA, ORDAINS:
ARTICLE I. Authority and Legislative Findings.
A. The Minnesota Legislature recently enacted, and Governor signed, 2023 Minnesota
Session Laws, Chapter 63 – H.F. No. 100 (“Act”), which is comprehensive legislation
relating to cannabis including, but not limited to, the establishment of the Office of
Cannabis Management (“OCM”), legalizing and limiting the possession and use of
cannabis and certain hemp products by adults, providing for the licensing, inspection, and
regulation of cannabis businesses and hemp businesses, taxing the sale of cannabis flower,
cannabis products, and certain hemp products, establishing grant and loan programs,
amending criminal penalties, providing for expungement of certain convictions and
providing for the temporary regulation of certain edible cannabinoid products.
B. The Act provides local units of government certain authority related to cannabis businesses,
including the authority to (1) require local registration of certain cannabis businesses
operating retail establishments, (2) adopt reasonable restrictions on the time, place, and
manner of the operation of cannabis businesses, provided that such restrictions do not
prohibit the establishment or operation of a cannabis businesses, (3) limit the number of
certain cannabis businesses based on the population of the community, and (4) prohibit the
operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care,
residential treatment facility, or an attraction within a public park that is regularly used by
minors, including a playground or athletic field.
C. The Act requires the OCM, which was established effective July 1, 2023, to work with
local governments to develop model ordinances for reasonable restrictions on the time,
place, and manner of the operation of cannabis businesses. The Act also requires the OCM
to establish additional rules and regulations relating to the operation of cannabis businesses.
The City will benefit from reviewing and analyzing the OCM’s model ordinances, rules
and regulations before making any decisions related to the regulation of cannabis
businesses in the City.
D. The Act (Minnesota Statutes, section 342.13(e)) expressly allows a local unit of
government that is conducting studies or has authorized a study to be conducted or has held
or scheduled a hearing for the purpose of considering adoption or amendment of reasonable
restrictions on the time, place and manner of the operation of cannabis businesses to adopt
an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting
the planning process and the health, safety, and welfare of its citizens. The interim
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ordinance may regulate, restrict, or prohibit the operation of cannabis businesses within the
jurisdiction or a portion thereof until January 1, 2025.
E. Given the uncertainty regarding the model ordinances to be developed by the OCM and
the broad scope of the changes to Minnesota law brought about by the Act, the City desires
to adopt an interim ordinance for the purpose of protecting the planning process and the
health, safety, and welfare of its citizens.
F. The City desires to conduct a study for the purpose of considering the adoption or
amendment of reasonable restrictions on the time, place and manner of the operation of
cannabis businesses as well as the other regulations local units of government may adopt
under the Act.
G. On July , 2023, after providing at least 10 days published notice, the City Council held
a public hearing regarding the consideration and adoption of an interim ordinance
prohibiting the operation of cannabis businesses within the City until January 1, 2025.
ARTICLE II. Definitions. For purposes of this Ordinance, the following terms shall have the
meaning given them in this section.
(a) “Act” means 2023 Minnesota Session Laws, Chapter 63 (H.F. No. 100).
(b) “Cannabis Business” has the meaning given the term in Minnesota Statutes, section
342.01, subdivision 14.
(c) “City” means the City of Kenyon.
(d) “Edible Cannabinoid Product” has the meaning given the term in Minnesota Statutes,
section 151.72, subdivision 1(f).
(e) “OCM” means the Office of Cannabis Management, established as set forth in Minnesota
Statutes, section 342.02, subd. 1.
(f) “Ordinance” means this interim ordinance, which is adopted pursuant to Minnesota
Statutes, section 342.13(e).
ARTICLE III. Study Authorized. The City Council hereby authorizes and directs the City
Administrator/City Manager to have City staff conduct a study regarding the adoption or
amendment of reasonable restrictions on the time, place, and manner of the operation of Cannabis
Businesses, as well as the other potential local regulations allowed under the Act, and report to the
City Council on the potential regulation of Cannabis Businesses. The study must include a review
of the model ordinances the OCM is directed to draft under Minnesota Statutes, section 342.13(d),
an analysis of potential setback regulations allowed under Minnesota Statues, section 342.13(c),
and such other matters as staff may determine are relevant to the City Council’s consideration of
this matter. The report shall include the City staff’s recommendations on whether the City Council
should adopt regulations and, if so, the recommended types of regulations.
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ARTICLE IV. Moratorium. A moratorium is hereby imposed regarding the operation of a
Cannabis Business within the City. During the term of this Ordinance, no business, person, or
entity may establish or operate a Cannabis Business within the jurisdictional boundaries of the
City. The City shall not accept, process, or act on any application, site plan, building permit, zoning
request, or other approval, including any requested confirmation, certification, approval, or other
request from the OCM or other governmental entity requesting City review of any application or
proposal for a business proposing to engage in the operation of a Cannabis Business.
ARTICLE V. Violation. During the term of the moratorium, it is a violation of this Ordinance for
any business, person, or entity to establish or operate a Cannabis Business within the City.
ARTICLE VI. Exceptions. The moratorium imposed by this Ordinance does not apply to: (1) the
continued operation of a business as part of the Medical Cannabis Program administered by the
Minnesota Department of Health that was lawfully operating within the City prior to July 1, 2023;
(2) the lawful sale of Edible Cannabinoid Products in compliance with Minnesota Statutes, section
151.72; or (3) sales of Edible Cannabinoid Products at an exclusive liquor store in accordance with
Minnesota Statutes, section 340A.412, subdivision 14. Nothing in this Article exempts a business,
person, or entity that is selling Edible Cannabinoid Products from having to comply with all
requirements and prohibitions of applicable laws and ordinances.
ARTICLE VII. Enforcement. Violation of this Ordinance is a misdemeanor. The City may also
enforce this Ordinance by mandamus, injunction, or other appropriate civil remedy in any court of
competent jurisdiction. A violation of this Ordinance is also subject to the City’s general penalty
in City Code and may result in the City reporting the violation to the OCM if relevant to OCM
licensing. The City Council hereby authorizes the City Administrator/City Manager, in
consultation with the City Attorney, to initiate any legal action deemed necessary to secure
compliance with this Ordinance.
ARTICLE VIII. Duration. This Ordinance shall become effective on the first day of publication
after adoption and shall remain in effect until January 1, 2025. This Ordinance may be repealed
earlier upon the effective date of an ordinance adopting or amending reasonable restrictions on the
time, place and manner of the operation of a Cannabis Business within the City or by resolution
of the City Council terminating this Ordinance prior to the expiration date.
ARTICLE IX. Severability. Every section, provision, and part of this Ordinance is declared
severable from every other section, provision, and part thereof. If any section, provision, or part
of this Ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall
not invalidate any other section, provision, or part of this Ordinance.
Adopted this 13th day of June, 2023.
ATTEST: Douglas Henke, Mayor
___________________________________
Mark R. Vahlsing, City Administrator
(Published in the Kenyon Leader on ___________, 2023)
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AGENDA ITEM NO.
VIII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Jeff and Ann Traxler – Request for City to vacate alley/ROW
SUGGESTED ACTION: No new information. They are still waiting on the legal description
from Rapp Surveying. Jeff and Ann Traxler are asking for the City to
vacate or do a land swap of right-of-way area that abuts their property
to the west. They are requesting the area to be vacated to help with a
planned expansion project of their business. Further information is
attached below. The alley vacation process would require a survey
of the area and a public hearing.
ATTACHMENTS:
DOC040723-005.pdf
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AGENDA ITEM NO. X.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Legal
ITEM TYPE: Old Business
AGENDA SECTION: OLD BUSINESS
SUBJECT: Review Ordinance 101 - Allowing Chickens within City Limits
- (If adopted) Ordinance 2023-15 Approving Summary
Publication of Ord. 101.
SUGGESTED ACTION: -The revised draft chicken ordinance is attached for Council review.
It was reviewed by Cal Bean. The ordinance would require a permit.
Other requirements include:
1. Chickens shall be kept in a coop or other similar type of
structure. No free range keeping of chickens allowed.
Enclosures shall be located in the rear yard. be at least 10 feet
from any property lines.
2. All keeping of poultry shall be for personal use. Any selling of
eggs shall be prohibited.
3. A maximum of 4 chickens may be kept. No rosters shall be
permitted.
4. The property shall be maintained in neat and sanitary
condition. The construction and use of any enclosures or pens
an storage areas shall comply with all applicable State Building
Codes and Department of Agriculture regulations.
5. Only Chickens are allowed. No keeping of other types of
poultry or birds including Ducks, Geese, Swans, Pheasants,
Pigeons, Peacocks, Turkeys, Emu’s or Ostriches shall not be
allowed. These are listed for discussion and can be revised.
6. From the June council meeting changes were made to Sections
H, I and L removing heating requirements, requirements for elevation
and adding insulation of coops.
7. Cal Bean also requested that up to 6 chickens be allowed. The draft
ordinance has a limit of 4 chickens. I have not changed then allowed
number.
The Council also requested that a survey be conducted asking City
residents if they preferred allowing chickens in residential areas. The
survey was put on the City web site through July 7, 2023.. The
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results were:
Yes to allow chickens: 121
No to allow chickens: 103
Unsure about chickens in residential areas: 17
Total votes: 241
A summary of the survey results is attached below.
If ordinance 101 is adopted Resolution 2023-15 Summary
Publication will also need to be adopted.
MOTION(S) MAY BE NEEDED
ATTACHMENTS:
ORDINANCE 101 Kenyon_Chicken_Ordinance.DOCX
Chicken Survey Results.jpg
Results of Chicken Survey.pdf
Resolution 2023-15 Approving_publication_of_Ordinance_No__101_by_title_and_summary.DOC
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AN ORDINANCE ADDING SECTION 901 OF THE
KENYON CITY CODE PERMITTING BACKYARD CHICKENS AND ESTABLISHING
REGULATIONS OR RULES FOR THE KEEPING OF CHICKENS
THE CITY COUNCIL OF THE CITY OF KENYON, MINNESOTA, ORDAINS:
Section 1. Chapter IX of the Kenyon City Code is hereby amended by adding Section 901, as follows:
SECTION 901 KEEPING OF CHICKENS
901.01. Purpose. To establish rules for the keeping of chickens in residential areas.
901.03. Definitions.
Subdivision 1. “Backyard Chickens” means Chickens, as permitted per City Code, in
residential backyards.
Subd. 2. “Chicken” means a domesticated bird that serves as a source of eggs and meat.
Subd. 3. “Chicken Coop” means structure for the keeping and housing of chickens.
Subd. 4. “Hen” means a female chicken.
Subd. 5. “Rooster” means a male chicken.
Subd. 6. “Run” means an enclosed area attached to a coop where chickens can roam
unsupervised.
901.05. Permit Required. Any person wishing to keep backyard chickens in any district besides the
Agricultural District, shall be required to obtain a permit from the City and shall be subject to the
following requirements:
A. Chickens shall be kept in a coop or other similar type of structure. No free range keeping
of chickens allowed.
B. All keeping of backyard chickens shall be for personal use. Any selling of eggs shall be
prohibited.
C. A maximum of four (4) chicken hens may be kept.
D. Keeping of roosters is prohibited.
E. The property shall be maintained in neat and sanitary condition. The construction and use
of any enclosures or pens and storage areas shall comply with all applicable State Building
Codes, Department of Agriculture regulations, and this Chapter.
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F. Chickens must not be housed in a residential house or in an attached or detached garage,
except chickens under the age of six (6) weeks for brooding purposes.
G. Slaughtering and processing of the chickens on the property is prohibited.
H. No chicken may be kept or raised in a manner as to cause injury or annoyance to persons
or other animals on other property in the vicinity by reason of noise, odor, or filth.
I. Only Chickens are allowed. The keeping of other types of poultry or birds, including
ducks, geese, swans, pheasants, pigeons, peacocks, turkeys, emus, and ostriches, is
prohibited.
901.07. Chicken coop requirements.
A. Chickens must be provided a secure and well-ventilated roofed chicken coop in
compliance with this Section. Any chicken coop and run fencing must be consistent with
building and zoning codes.
B. No chicken coop or run shall be constructed on any lot prior to the time of construction of
the principal structure.
D. Chicken coops and runs shall not be in the front or side yard. The chicken coop and run
must be located in the rear yard.
E. Any chicken coop or run shall be set back at least ten feet from the property line and 40
feet from the principal structure on any adjacent lots, as measured in all directions.
Measurement shall be a straight-line distance between the closest points on each structure.
F. The chicken coop must be built in such a manner that it is not considered a nuisance to the
neighboring properties.
G. The chicken coop must be built tall enough to ensure proper cleaning of the structure.
H. The chicken coop must be fully enclosed, insulated wind and weatherproof, and have
sufficient windows for natural light.
I.
J. The chicken coop must be constructed with materials that will prevent rodent and predator
access.
K. Any coop or run shall be screened from view with a solid fence or landscaped buffer with
a minimum height of four feet.
L. All chicken coops must have a minimum two square feet per chicken and the coop must
not exceed a total of 30 square feet (by outside dimensions) and The coop’s floor,
foundation or footings must be constructed in such a manner as to make the coop rodent-
resistant. Fenced-in chicken runs must be a minimum of three square feet per chicken
with a maximum of 30 square feet and fencing must not exceed six feet in total height.
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Chicken runs may be enclosed with wood and/or woven wire materials, and may allow
chickens to contact the ground. Chicken runs must have a protective overhead netting or
be constructed under the coop to keep the chickens separated from other animals. The run
must be constructed in such a manner as to make the run rodent-resistant.
M. Chickens must be secured in a chicken coop from sunset to sunrise each day.
N. Chicken grains and feed must be stored in rodent-proof and racoon-proof containers inside
a structure.
O. Only one chicken coop may be constructed on any lot.
901.09. Duration of Permit. A permit to keep chickens shall be issued to applicant for a period of 1
year, so long as the owner continues to own chickens. The permit is not assignable or transferable. If
the permit holder moves from the property but the chickens remain on the property, the new owner
must apply for a new permit.
901.11. Inspections. Any chicken coop or run for the chickens authorized under this section may be
inspected at any reasonable time by authorized city staff to inspect for compliance with this chapter
and other relevant laws and regulations.
901.13. Revocation of permit. A permit may be revoked by the city council for a violation of any
condition of this section following notice and a hearing as provided for in this code.
901.15. Violations. Violations of this subsection are punishable with a misdemeanor citation or civil
or administrative penalties, as authorized by law.
Section 2. This ordinance shall be in full force and effect upon its passage and publication.
Passed by the City Council of the City of Kenyon, Minnesota, this 13th day of June, 2023.
______________________________
ATTEST: Douglas Henke, Mayor
___________________________________
Mark R. Vahlsing, City Administrator
(Published in the Kenyon Leader on ______, 2023)
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From: Michelle Otte
To: Mark Vahlsing
Subject: Results of Chicken Survey
Date: Friday, July 7, 2023 11:07:21 AM
Hi Mark,
Attached is a screenshot of the results from the community survey regarding proposed
ordinance No. 101. Again, this is not a perfect survey as there was no way to control who
took the survey, so we cannot guarantee all the individuals only voted once or were residents
of the City of Kenyon. However, to vote more than once from the same device, one would
need to clear their cache and delete their cookies. Or they could have used an incognito
window as well, since the survey did use cookies to collect answers. It would take a little
effort to figure out how to vote more than once in this survey.
I was able to track the timeline of results and I do not see any concernable outliers in the
results. There are no strings of yes or no answers in a tight timeframe indicating the possibility
of one passionate individual voting multiple times one way or the other.
Here is the summary of results:
Yes to allow chickens: 121
No to allow chickens: 103
Unsure about chickens in residential areas: 17
Total votes: 241
If you have any other questions or needs concerning the survey regarding proposed ordinance
No. 101, please let me know.
Thank you,
--
Michelle Otte, Director
Kenyon Public Library
709 Second Street
Kenyon, MN 55946
507-789-6821
motte@selco.info
http://kenyon.lib.mn.us/
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RESOLUTION NO. 2023-15
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
A RESOLUTION APPROVING PUBLICATION OF
ORDINANCE NO. 101 BY TITLE AND SUMMARY
WHEREAS, on June 13, 2023, the City Council of the City of Kenyon adopted Ordinance
No. 101 entitled “AN ORDINANCE ADDING SECTION 901 OF THE KENYON CITY
CODE PERMITTING BACKYARD CHICKENS AND ESTABLISHING REGULATIONS
OR RULES FOR THE KEEPING OF CHICKENS”; and
WHEREAS, the ordinance is approximately three pages in length; and
WHEREAS, Minnesota Statutes, section 412.191, subd. 4 allows publication by title and
summary in the case of lengthy ordinances; and
WHEREAS, the City Council believes that the following summary would clearly inform
the public of the intent and effect of the ordinance.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Kenyon that the following summary is hereby approved for official publication:
SUMMARY PUBLICATION
ORDINANCE NO. 101
AN ORDINANCE ADDING SECTION 901 OF THE KENYON CITY CODE
PERMITTING BACKYARD CHICKENS AND ESTABLISHING REGULATIONS OR
RULES FOR THE KEEPING OF CHICKENS
On June 13, 2023, the City Council of the City of Kenyon adopted Ordinance No. 101, the
title of which is stated above. The Ordinance adds a new Section 901 to the Kenyon City Code,
which establishes regulations regarding the keeping of residential backyard chickens within the City
in zoning districts other than the Agricultural District. Section 901 of the Kenyon City Code sets
forth various requirements related to the keeping of backyard chickens, including establishing
various definitions, permit requirements, cleanliness and sanitation standards, chicken coop
standards, as well as City inspection and enforcement provisions. The text of Ordinance No. 101 is
available for inspection at Kenyon City Hall during regular business hours.
NOW, THEREFORE, IT IS HEREBY FURTHER RESOLVED by the City Council of
the City of Kenyon that the City Administrator is directed to publish the above summary in lieu of
publication of the entire ordinance, and is further directed to post a copy of the entire text of the
ordinance at the Kenyon Library and on the bulletin board at Kenyon City Hall for a period of not
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less than 30 days. In addition, a printed copy of the ordinance is available for inspection by any
person during regular office hours at Kenyon City Hall.
Adopted by the Kenyon City Council on this 13th day of June, 2023.
____________________________________
Douglas Henke
Mayor
ATTEST:
___________________________________________
Mark R. Vahlsing
City Administrator
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AGENDA ITEM NO. X.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Old Business
AGENDA SECTION: OLD BUSINESS
SUBJECT: Review Quotes for Payroll Services
SUGGESTED ACTION: Staff has been continuing to review options for contracting payroll
processing. The City has received updated quotes from four firms.
Kelly Perry has met with representatives of all the payroll firms. In
order to cover the costs of the payroll service, 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.
Staff would recommend Payom.
Kelly has worked with that company previously and had a good
experience. Further information is attached below.
Vendor Annual Cost One Time Cost
Paychex Inc, $6540 $1650
Paycom $6515 $2100
ADP $8250*
Paylocity $5758 $1000
*ADP price after one-year promotional price of $6413
MOTION NEEDED
ATTACHMENTS:
Updated Payroll processing quotes.xlsx
128
AGENDA ITEM NO. XI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: City/KMU Compensation Study update.
SUGGESTED ACTION: Just a quick update. Staff is getting quotes for a compensation study
that would compare City pay scales with comparable groups. We are
seeking quotes from several firms and hope to have them ready for
the August City Council and KMU meetings.
ATTACHMENTS:
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AGENDA ITEM NO. XI.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Police
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Therapy and Consulting Services Agreement – Police
Department
SUGGESTED ACTION: Police Chief Sjoblom is requesting Council approval of the
agreement with Lodestar Psychology to provide counseling services
and therapy for the Police Department. A recently approved state law
now requires that law enforcement agencies provide therapy services
for offices. Chief Sjoblom will provide further information at the
Council meeting. See attached Agreement.
MOTION NEEDED
ATTACHMENTS:
Therapy Agreement.pdf
130
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132
133
134
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AGENDA ITEM NO. XI.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Pearl Creek Sewer Main and Street Improvement Projects Bond
Sale–George Eilertson- Northland Public Finance
-Resolution 2023-16 Awarding the sale of General Obligation
Bonds
SUGGESTED ACTION: George Eilertson- Northland Public Finance will review the proposed
bond sale and terms for the 2023 public works projects. As part of
the bond sale Standard and Poors reviewed the City financial
standing and confirmed the A+ rating. See S&P summary attached
below for more information on the bond rating. See attached
resolution for more information on the bond sale. Please note the final
amounts of the bond sale will be provided at the meeting on
Tuesday.
MOTION NEEDED
ATTACHMENTS:
Resolution 2023-16 Kenyon_GO_Bonds_2023A_AWARD_RESOLUTION.DOCX
Pearl Creek-Sewer Street Project Bond sale OS.docx 5-23.docx
RatingsDirect_SummaryKenyonMinnesotaGeneralObligation_55274111_Jun-30-2023.PDF
137
Extract of Minutes of Meeting
of the City Council of the City of
Kenyon, Goodhue County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Kenyon,
Minnesota, was duly held at the City Hall in said City on Tuesday, July 11, 2023, commencing at 7:00 p.m.
The following members were present:
and the following were absent:
*** *** ***
The Mayor announced that the next order of business was consideration of a proposal which had
been received for the purchase of the City’s General Obligation Bonds, Series 2023A, proposed to be issued
in the original aggregate principal amount of $2,320,000.
The City Administrator presented a proposal from Northland Securities, Inc., which had been received
pursuant to the direction of the City Council.
After due consideration of the proposal, Member __________ then introduced the following resolution
and moved its adoption:
KE200\204\886497.v3
138
RESOLUTION NO. 2023-16
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
AWARDING THE SALE OF GENERAL OBLIGATION BONDS,
SERIES 2023A, IN THE ORIGINAL AGGREGATE PRINCIPAL
AMOUNT OF $2,320,000; FIXING THEIR FORM AND
SPECIFICATIONS; DIRECTING THEIR EXECUTION AND
DELIVERY; AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of Kenyon (the “Council”), Goodhue County,
Minnesota (the “City”) as follows:
Section 1. Findings; Sale of Bonds.
1.01. Street Reconstruction Bonds.
(a) Pursuant to Minnesota Statutes, Chapter 475, as amended, specifically
Section 475.58, subdivision 3b (the “Street Reconstruction Act”), the City is authorized to finance
all or a portion of the cost of street reconstruction projects by the issuance of general bonds of the
City payable from ad valorem taxes.
(b) On March 14, 2023, following a duly noticed public hearing, the Council adopted
a five-year street reconstruction plan (the “Street Reconstruction Plan”) describing the streets to be
reconstructed, estimated costs, and any planned reconstruction of other streets in the City and
approved the issuance of obligations by vote of two-thirds of the members thereof, all pursuant to
the Street Reconstruction Act.
(c) Expenditures described in the Street Reconstruction 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 (the “Street Reconstruction”).
(d) The Council has determined that, within thirty (30) days after the hearing, no
petition for a referendum on the issuance of bonds to pay costs of the Street Reconstruction was
received by the City in accordance with the Street Reconstruction Act.
(e) It is necessary and expedient to the sound financial management of the affairs of
the City to issue general obligation bonds in the aggregate principal amount of $_________ (the
“Street Reconstruction Bonds”), pursuant to the Street Reconstruction Act, to provide financing for
the Street Reconstruction.
1.02. Utility Revenue Bonds.
(a) The City engineer has recommended the construction of various improvements to
the City’s water system and sewer system (the “Utility Improvements”), pursuant to Minnesota
Statutes, Chapters 444, and 475, as amended (collectively, the “Utility Revenue Act”).
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(b) It is necessary and expedient to the sound financial management of the affairs of
the City to issue general obligation bonds in the aggregate principal amount of $_________ (the
“Utility Revenue Bonds”), pursuant to the Utility Revenue Act, to provide financing for the Utility
Improvements.
1.03. Issuance of General Obligation Bonds.
(a) The Council finds it necessary and expedient to the sound financial management
of the affairs of the City to issue the Bonds in the original aggregate principal amount of $2,320,000,
pursuant to the Street Reconstruction Act and the Utility Revenue Act (together, the “Act”), to
provide financing for the Street Reconstruction and the Utility Improvements.
(b) The City desires to proceed with the sale of the Bonds by direct negotiation with
Northland Securities, Inc. (the “Purchaser”). The Purchaser will purchase the Bonds in an arm’s
length commercial transaction with the City. The City hereby retains Blue Rose Capital Advisors
(the “Advisor”) to act as an independent municipal advisor for the purpose of reviewing the pricing
fairness associated with the purchase and subsequent reoffering of the Bonds. The Mayor and the
City Administrator are hereby authorized to execute an agreement with the Advisor for an amount
not to exceed $___________. It being thus determined that the City has retained an independent
municipal advisor in connection with such sale, the City is authorized by Section 475.60,
subdivision 2(9) of the Act to negotiate the sale of the Bonds. The actions of the City staff and the
Advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects.
1.04. Award to the Purchaser and Interest Rates. The proposal of the Purchaser to purchase the
Bonds is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being
to purchase the Bonds at a price of $__________ (par amount of $2,320,000, [plus original issue premium
of $__________,] [less original issue discount of $___________,] less underwriter’s discount of
$__________), plus accrued interest, if any, to the date of delivery for the Bonds bearing interest as follows:
Year of Year of
Maturity Interest Rate Maturity Interest Rate
2025 % 2033 %
2026 2034
2027 2035
2028 2036
2029 2037
2030 2038
2031 2039
2032 2040
1.05. Purchase Contract. The execution by the Mayor and the City Administrator of a purchase
contract with the Purchaser on behalf of the City is hereby ratified and confirmed.
1.06. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds
pursuant to the Act in the original aggregate principal amount of $2,320,000, originally dated August 9,
2023, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward,
bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows:
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Year of Year of
Maturity Amount Maturity Amount
2025 $ 2033 $
2026 2034
2027 2035
2028 2036
2029 2037
2030 2038
2031 2039
2032 2040
(a) $_________ of the Bonds (consisting of the Street Reconstruction Bonds), maturing
on February 1 in the years and amounts set forth below, are being used to finance the Street
Reconstruction:
Year of Year of
Maturity Amount Maturity Amount
2025 $ 2033 $
2026 2034
2027 2035
2028 2036
2029 2037
2030 2038
2031 2039
2032
(b) $_________ of the Bonds (consisting of the Utility Revenue Bonds), maturing on
February 1 in the years and amounts set forth below, are being used to finance the Utility
Improvements:
Year of Year of
Maturity Amount Maturity Amount
2025 $ 2033 $
2026 2034
2027 2035
2028 2036
2029 2037
2030 2038
2031 2039
2032 2040
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1.07. Optional Redemption. The City may elect on February 1, 2031, and on any day thereafter to
prepay Bonds maturing on or after February 1, 2032. Redemption may be in whole or in part and if in part, at
the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of
such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such
maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such
maturity to be redeemed. Prepayments will be at a price of par plus accrued interest.
[1.08. Mandatory Redemption; Term Bonds. To be completed if Term Bonds are requested by the
Purchaser.]
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check, draft, or wire
issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available for
payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or
made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii)
the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as
of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year,
commencing August 1, 2024, to the registered owners of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the “Registrar” and “Paying Agent”). The effect of registration and the rights and duties
of the City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond
register in which the Registrar provides for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered, transferred, or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory
to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may, however, close the books for
registration of any transfer after the fifteenth day of the month preceding each interest payment
date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner’s attorney in
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
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(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for
transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good
faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal
of and interest on the Bond and for all other purposes and payments so made to the registered owner
or upon the owner’s order will be valid and effectual to satisfy and discharge the liability upon the
Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner
thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or
other governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver any new Bond of like amount, number, maturity
date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in
lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable
expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed,
stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an
appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by
law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to
the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to
the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for
redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The City appoints Northland Trust Services, Inc.,
Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to
execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of
the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized
by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon 30 days’ notice and upon the appointment of a successor
Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the
successor Registrar and must deliver the bond register to the successor Registrar. On or before each
principal or interest due date, without further order of this Council, the City Administrator must transmit to
the Registrar moneys sufficient for the payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction
of the City Administrator and executed on behalf of the City by the signatures of the Mayor and the City
Administrator, provided that those signatures may be printed, engraved, or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding
such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit
under this resolution unless and until a certificate of authentication on the Bond has been duly executed by
the manual signature of an authorized representative of the Registrar. Certificates of authentication on
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different Bonds need not be signed by the same representative. The executed certificate of authentication
on a Bond is conclusive evidence that it has been authenticated and delivered under this resolution. When
the Bonds have been so prepared, executed and authenticated, the City Administrator will deliver the same
to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore
made and executed, and the Purchaser is not obligated to see to the application of the purchase price.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form
attached hereto as EXHIBIT A.
3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of the
proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, and to cause
the opinion to be printed on or accompany each Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds are payable from the General Obligation Bonds, Series
2023A Debt Service Fund (the “Debt Service Fund”) hereby created. The Debt Service Fund shall be
administered and maintained by the City Administrator as a bookkeeping fund separate and apart from all
other funds maintained in the official financial records of the City. The City will maintain the following
accounts in the Debt Service Fund: the “Street Reconstruction Bonds Account” and the “Utility Revenue
Bonds Account.” Amounts in the Street Reconstruction Bonds Account are irrevocably pledged to the
Street Reconstruction Bonds and amounts in the Utility Revenue Bonds Account are irrevocably pledged
to the Utility Revenue Bonds.
(a) Street Reconstruction Bonds Account. Ad valorem taxes herein levied for the
payment of the principal of, premium, if any, and interest on the Street Reconstruction Bonds are
hereby pledged to the Street Reconstruction Bonds Account of the Debt Service Fund. There is
hereby appropriated to the Street Reconstruction Bonds Account of the Debt Service Fund all
investment earnings on amounts in the Street Reconstruction Bonds Account of the Debt Service
Fund and any other funds of the City for the payment of the principal of, premium, if any, and
interest on the Street Reconstruction Bonds. There is also appropriated to the Street Reconstruction
Bonds Account of the Debt Service Fund a pro rata portion of capitalized interest financed with
proceeds of the Bonds, if any.
(b) Utility Revenue Bonds Account. The City will continue to maintain and operate
its Water and Sewer Funds to which will be credited all gross revenues of the water and sewer
systems, as the case may be, and out of which will be paid all normal and reasonable expenses of
current operations of such systems. Any balances therein are deemed net revenues (the “Net
Revenues”) and will be transferred, from time to time, to the Utility Revenue Bonds Account of
the Debt Service Fund, which Utility Revenue Bonds Account will be used only to pay principal
of and interest on the Utility Revenue Bonds and any other bonds similarly authorized. There will
always be retained in the Utility Revenue Bonds Account a sufficient amount to pay principal of
and interest on all the Utility Revenue Bonds, and the City Administrator must report any current
or anticipated deficiency in the Utility Revenue Bonds Account to the Council. There is hereby
appropriated to the Utility Revenue Bonds Account of the Debt Service Fund all investment
earnings on amounts in the Utility Revenue Bonds Account of the Debt Service Fund and any other
funds of the City for the payment of the principal of, premium, if any, and interest on the Utility
Revenue Bonds. There is also appropriated to the Street Reconstruction Bonds Account of the
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Debt Service Fund a pro rata portion of capitalized interest financed with proceeds of the Bonds, if
any.
4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2023A
Construction Fund (the “Construction Fund”). The City will maintain the following accounts in the
Construction Fund: the “Street Reconstruction Bonds Account” and the “Utility Revenue Bonds Account.”
Amounts in the Street Reconstruction Bonds Account are irrevocably pledged to the Street Reconstruction
Bonds and amounts in the Utility Revenue Bonds Account are irrevocably pledged to the Utility Revenue
Bonds.
(a) Street Reconstruction Bonds Account. Proceeds of the Street Reconstruction
Bonds, less the appropriations made in Section 4.01(a), together with any other funds appropriated
for the Street Reconstruction and ad valorem taxes collected during the construction of the Street
Reconstruction, will be deposited in the Street Reconstruction Bonds Account of the Construction
Fund to be used solely to defray expenses of the Street Reconstruction. Any balance remaining in
the Street Reconstruction Bonds Account of the Construction Fund after the Street Reconstruction
is completed and the costs thereof have been paid may be used as provided in Section 475.65 of
the Act, under the direction of the Council. Thereafter, the Street Reconstruction Bonds Account
of the Construction Fund is to be closed and any balance therein is to be deposited in the Street
Reconstruction Bonds Account of the Debt Service Fund.
(b) Utility Revenue Bonds Account. Proceeds of the Utility Revenue Bonds, less the
appropriations made in Section 4.01(b) hereof, will be deposited in the Utility Revenue Bonds
Account of the Construction Fund to be used solely to defray expenses of the Utility Improvements.
Any balance remaining in the Utility Revenue Bonds Account of the Construction Fund after the
Utility Improvements are completed and the cost thereof have been paid may be used as provided in
Section 475.65 of the Act, under the direction of the Council. Thereafter, the Utility Revenue Bonds
Account of the Construction Fund is to be closed and any balance remaining therein is to be deposited
in the Utility Revenue Bonds Account of the Debt Service Fund.
4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be
and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all
principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be
promptly paid out of monies in the general fund of the City which are available for such purpose, and such
general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance
is available therein.
4.04. City Covenants with Respect to the Utility Revenue Bonds. The Council covenants and
agrees with the holders of the Utility Revenue Bonds that so long as any of the Utility Revenue Bonds
remain outstanding and unpaid, it will keep and enforce the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the water and sewer
systems as public utilities and conveniences free from competition of other like municipal utilities
and will cause all revenues therefrom to be deposited in bank accounts and credited to the Water
and Sewer Funds, as hereinabove provided, and will make no expenditures from those accounts
except for a duly authorized purpose and in accordance with this resolution.
(b) The City will also maintain the Utility Revenue Bonds Account of the Debt Service
Fund as a separate account and will cause money to be credited thereto from time to time, out of
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Net Revenues from the water and sewer systems in sums sufficient to pay principal of and interest
on the Utility Revenue Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and
accounts separate from all other records of the City in which will be complete and correct entries
as to all transactions relating to the water and sewer systems and which will be open to inspection
and copying by any Bondholder, or the Bondholder’s agent or attorney, at any reasonable time, and
it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee
therefor, and said account will be audited at least annually by a qualified public accountant and
statements of such audit and report will be furnished to all Bondholders upon request.
(d) The Council will cause persons handling revenues of the water and sewer systems
to be bonded in reasonable amounts for the protection of the City and the Bondholders and will
cause the funds collected on account of the operations of such systems to be deposited in a bank
whose deposits are guaranteed under the Federal Deposit Insurance Law.
(e) The Council will keep the water and sewer systems insured at all times against loss
by fire, tornado and other risks customarily insured against with an insurer or insurers in good
standing, in such amounts as are customary for like plants, to protect the holders, from time to time,
of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of
such insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties with
reference to the water and sewer systems as required by law.
(g) The City will impose and collect charges of the nature authorized by
Section 444.075 of the Utility Revenue Act, at the times and in the amounts required to produce
Net Revenues adequate to pay all principal and interest when due on the Utility Revenue Bonds
and to create and maintain such reserves securing said payments as may be provided in this
resolution.
(h) The Council will levy general ad valorem taxes on all taxable property in the City
when required to meet any deficiency in pledged Net Revenues.
(i) The Council hereby determines that the estimated collection of net revenues herein
pledged for the payment of principal and interest on the Utility Revenue Bonds will produce at least
5% in excess of the amount needed to meet, when due, the principal and interest payments on such
portion of the Bonds.
4.05. Pledge of Tax Levy. For the purpose of paying the principal of and interest on the Street
Reconstruction Bonds, there is levied a direct annual irrepealable ad valorem tax (the “Taxes”) upon all of
the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of
other general taxes of the City. The Taxes in the years and amounts set forth in EXHIBIT B attached hereto
will be credited to the Street Reconstruction Bonds Account of the Debt Service Fund, as provided above.
The tax levy herein provided for the Street Reconstruction Bonds is irrepealable until all of the Street
Reconstruction Bonds are paid, provided that at the time the City makes its annual tax levies the City
Administrator may certify to the Finance Director of Goodhue County, Minnesota (the “County Auditor”)
the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year,
and the County Auditor will thereupon reduce the levy collectible during such year by the amount so
certified.
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4.06. Debt Service Coverage. It is hereby determined that the estimated collection of Taxes
levied under Section 4.05 will produce at least 5% in excess of the amount needed to meet when due the
principal and interest payments on the Street Reconstruction Bonds, and the Net Revenues herein pledged
will produce at least 5% in excess of the amount needed to pay when due the principal and interest payments
on the Utility Revenue Bonds.
4.07. Filing of Resolution. The City Administrator is authorized and directed to file a certified copy
of this resolution with the County Auditor and to obtain the certificate required by Section 475.63 of the Act.
Section 5. Authentication of Transcript.
5.01 City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their control, relating to the
validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be
deemed representations of the City as to the facts stated therein.
5.02 Certification as to Official Statement. The Mayor and the City Administrator are authorized
and directed to certify that they have examined the Official Statement prepared and circulated in connection
with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official
Statement is a complete and accurate representation of the facts and representations made therein as of the
date of the Official Statement.
5.03 Other Certificates. The Mayor and the City Administrator are hereby authorized and
directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale.
Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of
the City or incumbency of its officers, at the closing the Mayor and City Administrator shall also execute
and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the City
Administrator shall also execute and deliver a certificate as to payment for and delivery of the Bonds. If
an officer whose signature or a facsimile of whose signature appears on any aforementioned certificate or
other similar document ceases to be such officer before the delivery of such document, that signature or
facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained
in office until delivery.
5.04 Electronic Signatures. The electronic signature of the Mayor and/or the City Administrator
to this resolution and to any certificate authorized to be executed hereunder shall be as valid as an original
signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) “electronic
signature” means a manually signed original signature that is then transmitted by electronic means; and
(ii) “transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as a
portable document format (“pdf”) or other replicating image attached to an electronic mail or internet
message.
Section 6. Tax Covenants.
6.01 Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the
Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which
would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986,
as amended (the “Code”), and the Treasury Regulations promulgated thereunder, in effect at the time of such
actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its
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power that may be necessary to ensure that such interest will not become subject to taxation under the Code
and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Bonds. To that end, the City will comply with all requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including
without limitation requirements relating to temporary periods for investments, limitations on amounts invested
at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States
(unless the City qualifies for any exemption from rebate requirements based on timely expenditure of proceeds
of the Bonds, in accordance with the Code and applicable Treasury Regulations).
6.02 Not Private Activity Bonds. The City further covenants not to use the proceeds of the
Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be
“private activity bonds” within the meaning of Sections 103 and 141 through 150 of the Code.
6.03 No Rebate. For purposes of qualifying for the small issuer exception to the federal
arbitrage rebate requirements, the City hereby finds, determines, and declares that the aggregate face
amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate
entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is
not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code.
6.04 Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified tax-exempt
obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the following factual
statements and representations:
(a) the Bonds are not “private activity bonds” as defined in Section 141 of the Code;
(b) the City designates the Bonds as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all
subordinate entities of the City) during calendar year 2023 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2023 have been designated for purposes of Section 265(b)(3) of the Code.
6.05 Procedural Requirements. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made by this section.
Section 7. Book-Entry System; Limited Obligation of City.
7.01 The Depository Trust Company. The Bonds will be initially issued in the form of a separate
single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.06 hereof.
Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New
York, and its successors and assigns (“DTC”). Except as provided in this section, all of the outstanding
Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as
nominee of DTC.
7.02 Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will
have no responsibility or obligation to any broker dealers, banks and other financial institutions from time
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to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on
behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility
or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with
respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other
than a registered owner of Bonds, as shown by the registration books kept by the Registrar) of any notice
with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any
other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium,
if any, or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the
person in whose name each Bond is registered in the registration books kept by the Registrar as the holder
and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect
to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes.
The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the
order of the respective registered owners, as shown in the registration books kept by the Registrar, and all
such payments will be valid and effectual to fully satisfy and discharge the City’s obligations with respect
to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so
paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the
Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by
DTC to the City Administrator of a written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., the words “Cede & Co.” will refer to such new nominee of DTC; and
upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the
Registrar and Paying Agent.
7.03 Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation Letter with respect to the Registrar and
Paying Agent, respectively, to be complied with at all times.
7.04 Transfers Outside Book-Entry System. In the event the City, by resolution of the Council,
determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be
able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of
the availability through DTC of Bond certificates. In such event, the City will issue, transfer and exchange
Bond certificates as requested by DTC and any other registered owners in accordance with the provisions
of this resolution. DTC may determine to discontinue providing its services with respect to the Bonds at
any time by giving notice to the City and discharging its responsibilities with respect thereto under
applicable law. In such event, if no successor securities depository is appointed, the City will issue and the
Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof
will apply to the transfer, exchange and method of payment thereof.
7.05 Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on such Bond and notices with respect to such Bond
will be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set
forth in the Representation Letter.
KE200\204\886497.v3 11
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Section 8. Continuing Disclosure.
8.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate”
means that certain Continuing Disclosure Certificate executed by the Mayor and the City Administrator
and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply
with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the
Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including
seeking mandate or specific performance by court order, to cause the City to comply with its obligations
under this section.
8.03. Limited Continuing Disclosure. In order to qualify the Bonds for limited continuing
disclosure under paragraph (d)(2) of Securities and Exchange Commission Rules, Section 15c2-12 (the “SEC
Rule”), the City makes the following factual statement and representation: as of the date of delivery of the
Bonds, the City will not be an obligated person (as defined in paragraph (f) of the SEC Rule) with respect to
more than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and
excluding municipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof.
Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment
of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all
Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for
the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by
depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date
of such deposit.
(The remainder of this page is intentionally left blank.)
KE200\204\886497.v3 12
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The motion for the adoption of the foregoing resolution was duly seconded by Member
__________, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Passed and adopted this 11th day of June, 2023.
Mayor
Attest:
City Administrator
KE200\204\886497.v3 13
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EXHIBIT A
FORM OF BOND
No. R-_____ $________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF GOODHUE
CITY OF KENYON
GENERAL OBLIGATION BOND
SERIES 2023A
Date of
Interest Rate Maturity Date Original Issue CUSIP
_______% February 1, 20__ August 9, 2023 ______
Registered Owner: CEDE & CO.
The City of Kenyon Minnesota, a duly organized and existing municipal corporation in Goodhue
County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises
to pay to the Registered Owner specified above or registered assigns, the principal sum of $__________ on
the maturity date specified above, with interest thereon from the date hereof at the annual rate specified
above (calculated on the basis of a 360 day year of twelve 30 day months), payable February 1 and August 1
in each year, commencing August 1, 2024, to the person in whose name this Bond is registered at the close
of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The
interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful
money of the United States of America by check, draft, or wire by Northland Trust Services, Inc.,
Minneapolis, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its
designated successor under the Resolution described herein. For the prompt and full payment of such
principal and interest as the same respectively become due, the full faith and credit and taxing powers of
the City have been and are hereby irrevocably pledged.
The City may elect on February 1, 2031, and on any day thereafter to prepay Bonds due on or after
February 1, 2032. Redemption may be in whole or in part and if in part, at the option of the City and in such
manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will
notify The Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid. DTC
will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.
Prepayments will be at a price of par plus accrued interest.
[add term bond provisions as needed]
This Bond is one of an issue in the aggregate principal amount of $2,320,000 all of like original
issue date and tenor, except as to number, maturity date, interest rate, and redemption privilege, all issued
pursuant to a resolution adopted by the City Council on July 11, 2023 (the “Resolution”), for the purpose
of financing certain street reconstruction and improvements to the City’s water and sewer systems, pursuant
to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Chapters 444 and 475, as amended, including Minnesota Statutes, Section 475.58, subdivision 3b.
The principal hereof and interest hereon are payable in part from ad valorem taxes and in part from net
KE200\204\886497.v3 A-1
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revenues of the City’s water and sewer systems, as set forth in the Resolution to which reference is made
for a full statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional
ad valorem taxes on all taxable property in the City in the event of any deficiency in taxes or net revenues
pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this
series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof
of single maturities.
The City Council has designated the issue of Bonds of which this Bond forms a part as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended (the “Code”) relating to disallowance of interest expense for financial institutions and within the
$10 million limit allowed by the Code for the calendar year of issue.
IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the water system and the sewer system free
from competition by other like municipal utilities; that adequate insurance on said systems and suitable
fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing
all receipts and disbursements relating to the water fund and the sewer fund, into which it will pay all of
the gross revenues from the water system and the sewer system, respectively; that it will also create and
maintain a Utility Revenue Bonds Account within the General Obligation Bonds, Series 2023A Debt
Service Fund, into which it will pay, out of the net revenues from the water system and the sewer system,
a sum sufficient to pay principal of and interest on the Utility Revenue Bonds (as defined in the Resolution)
when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of
the water system and the sewer system.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner
hereof in person or by the owner’s attorney duly authorized in writing, upon surrender hereof together with
a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner
or the owner’s attorney; and may also be surrendered in exchange for Bonds of other authorized
denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in
the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental
charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the Constitution and laws of the State of Minnesota, to be done, to exist, to happen
and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding
general obligation of the City in accordance with its terms, have been done, do exist, have happened and
have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
KE200\204\886497.v3 A-2
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IN WITNESS WHEREOF, the City of Kenyon, Goodhue, County, Minnesota, by its City Council,
has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and
City Administrator and has caused this Bond to be dated as of the date set forth below.
Dated: August 9, 2023
CITY OF KENYON, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
____________________________________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
NORTHLAND TRUST SERVICES, INC.
By
Authorized Representative
____________________________________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be construed
as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common UNIF GIFT MIN ACT
_________ Custodian _________
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors
Act, State of _______________
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________ the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint _________________________ attorney to transfer the said Bond
on the books kept for registration of the within Bond, with full power of substitution in the premises.
KE200\204\886497.v3 A-3
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Dated:
Notice: The assignor’s signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the
New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee
program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or
MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
Please insert social security or other identifying
number of assignee
____________________________________________________
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books
of the Registrar in the name of the person last noted below.
Signature of
Date of Registration Registered Owner Officer of Registrar
Cede & Co.
Federal ID #13-2555119
KE200\204\886497.v3 A-4
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EXHIBIT B
TAXY LEVY SHEDULE
B-1
KE200\204\886497.v3
156
STATE OF MINNESOTA )
)
COUNTY OF GOODHUE ) SS.
)
CITY OF KENYON )
I, the undersigned, being the duly qualified and acting City Administrator of the City of Kenyon,
Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of the City held on July 11, 2023, with the original
minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they
relate to the issuance and sale of the City’s General Obligation Bonds, Series 2023A, in the original
aggregate principal amount of $_____________.
WITNESS My hand officially as such City Administrator and the corporate seal of the City this
___ day of July, 2023.
City Administrator
City of Kenyon, Minnesota
KE200\204\886497.v3
157
STATE OF MINNESOTA CERTIFICATE OF FINANCE
DIRECTOR AS TO TAX LEVY AND
COUNTY OF GOODHUE REGISTRATION
I, the undersigned Finance Director of Goodhue County, Minnesota, hereby certify that a resolution
adopted by the City Council of the City of Kenyon, Minnesota (the “City”), on July 11, 2023, levying taxes
for the payment of the City’s General Obligation Bonds, Series 2023A, in the original aggregate principal
amount of $__________, dated August 9, 2023, has been filed in my office and said obligation has been
registered on the register of obligations in my office and that such tax has been levied as required by law.
WITNESS my hand and official seal this ____ day of __________, 2023.
FINANCE DIRECTOR,
GOODHUE COUNTY, MINNESOTA
By:
Its:
(SEAL)
KE200\204\886497.v3
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CITY OF KENYON, MINNESOTA
City’s Federal Employer Tax ID Number: 41-6005279
Contact Information:
City Administrator: Mark Vahlsing
Phone: 507-789-6415
Email: mvahlsing@cityofkenyon.com
PRINCIPAL CITY OFFICIALS
Elected Officials City Council
Name Position Term Expires
Doug Henke Mayor 12/31/2024
Kim Helgeson Council Member 12/31/2026
Molly Ryan Council Member 12/31/2024
Mary Bailey Council Member 12/31/2024
Lee Sjolander Council Member 12/31/2026
Primary Contacts
Mark Vahlsing City Administrator
BOND COUNSEL
Kennedy & Graven, Chartered
Minneapolis, Minnesota
UNDERWRITER
Northland Securities, Inc.
Minneapolis, Minnesota
–1– 159
CITY OF KENYON, MINNESOTA
GENERAL INFORMATION
Location/Access/Transportation
Kenyon is located in the southeastern portion of Minnesota in Goodhue County. The City lies approximately 37
miles northwest of Rochester and 40 miles south of the Twin Cities Metropolitan Area. Access is provided via State
Highways 56 and 60, as well as County Roads 12 and 13.
Area
1,442 Acres
(2.25 Square Miles)
Population
2000 Census 1,661 2020 Census 1,894
2010 Census 1,815 2023 City Estimate 1,924
Labor Force Data1
Comparative average labor force and unemployment rate figures for 2023 (through March) and year-end 2022 are
listed below. Figures are not seasonally adjusted and numbers of people are estimated by place of residence.
March 2023 2022
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Goodhue County 26,600 3.4% 26,680 2.6%
Minnesota 3,072,423 3.3 3,077,500 2.7
Income Data3
Comparative income levels are listed below for the City of Kenyon, the State of Minnesota and the United States.
City of Kenyon State of Minnesota United States
Median Family Income $79,028 $98,356 $85,028
Per Capita Income 28,824 41,204 37,638
City Government/Comprehensive Plan
Kenyon, organized in 1885, is a Statutory City with an ‘Optional Plan A’ form of government. It has a mayor elected
at large for a two-year term and four council members also elected at large for four-year terms. The professional
staff consists of an administrator, consulting attorney, and consulting engineer.
The City has the following municipal enterprise services: water utility, sewer utility, electric utility, storm water
utility, and liquor store.
1 Source: Minnesota Department of Employment and Economic Development.
3 Source: 2017-2021 American Community Survey, U.S. Census Bureau.
–2– 160
Employee Pension Programs
The City employs 32 people,16 full-time, 16 part-time. The pension plan covers all full-time eligible employees.
The City participates in contributory pension plans through the Public Employees Retirement Association (PERA)
under Minnesota Statute, Chapters 353 and 356, which cover all full-time and certain part-time employees. PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF), which are cost sharing, multiple-employer retirement plans. Benefits are established by State Statute and
vest after three years of credited service. State Statute requires the City to fund current service pension cost as it
accrues. Defined retirement benefits are based on a member’s highest average salary for any five successive years
of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for GERF (formerly “PERF”) and PEPFF. That report may be obtained at www.mnpera.org, or by
writing to PERA at 60 Empire Drive, #200, St. Paul, MN 55103-2088 or by calling (651) 296-7460 or
1-800-652-9026.
The City makes annual contributions to the pension plans equal to the amount required by state statutes. In 2021,
GERF Coordinated Plan members were required to contribute 6.5% of their annual covered salary. State statute
requires the City to contribute 7.5% of annual covered payroll for Coordinated Plan GERF members. In 2021, PEPFF
members were required to contribute 11.8% of their annual covered salary and the City was required to contribute
17.7%. Audited City contributions to GERF and PEPFF for the past five years have been as follows:
Year Amount
2021 $102,879
2020 96,378
2019 92,038
2018 86,897
2017 85,680
Other Postemployment Benefits (OPEB)
The City has no liability for postemployment benefits other than pension benefits.
Estimated Cash and Investment Balances as of May 19, 2023 (unaudited)
Fund Name
General Fund $1,945,000
Enterprise Funds 460,000
Total Estimated Cash/Investment Balances $2,405,000
–3– 161
General Fund Budget Summary
2022 Budget 2022 Actual 2023 Budget
Revenues:
Property Taxes $643,235 $632,287 $684,891
Special Assessments 680 719 $500
Licenses and Permits 8,950 11,502 $8950
Intergovernmental Revenue 614,720 620,827 $650,000
Charges for Services 82,280 81,242 $82,500
Fines and Forfeits 5,000 14,545 $6,000
Interest earnings 200 17,042 ___$350
Miscellaneous 56,010 77,454 $56,000
Proceeds from Sale of Assets 0 375 $0
Transfers In 88,000 40,000 $40,000
Total Revenues $1,499,075 $1,495,993 $1,528,000
Expenditures:
General Government $447,600 $459,264 $447,542
Public Safety 424,015 465,282 $447,780
Public works 347,475 396,459 $360,135
Culture and Recreation 140,985 156,805 $141,,000
Debt Service 9,000 0 $0
Transfers Out 112,000 129,500 ____$129,000______
Total Expenditures $1,481,075 $1,607,310 $1,525,457
Revenues Over (Under) Expenditures $18,000 ($111,317) $2543
Beginning Fund Balance (January 1) $825,795 $825,795 $860,500_________
Ending Fund Balance (December 31) $843,795 $714,478 $858,250_
–4– 162
Building Permits1
Building permits issued for the past five years and a portion of the current year have been as follows:
Commercial/
Industrial Residential Total Total
Number Number Number Permit
Year of Permits of Permits of Permits Valuation
2023
(as of 3/31) 0 12 12 $ 226,000
2022 7 75 82 1,803,000
2021 3 57 60 1,190,000
2020 1 20 21 2,764,000
2019 3 96 99 1,317,000
2018 0 64 64 1,102,000
Banking/Financial Institutions
Banking and financial services providers within the City are Security State Bank of Kenyon.
Education
The City is served by Independent School District No. 2172, Kenyon-Wanamingo.
Major/Leading Employers2
Following are some of the major/leading employers within the City:
Number of
Name Product/Service Employees3
Foldcraft Co. Chair and Table Manufacturing 180
ISD No. 2172, Kenyon-Wanamingo Public Education 115
Plymold Restaurant-Furniture 95
Kenyon Sunset Home Nursing Home 85
Central Farm Svc Fertilizers 30
Waste Management Garbage Collection 24
Security State Bank Bank 21
Milo Peterson Ford Auto Dealership 18
Fred’s IGA Grocery 15
All Seasons Community Service Community Service 13
1 Note: Commercial/Industrial Permits and Total Permit Valuation include additions and alterations.
2 Source: City and Reference USA.
3 Includes full-time, part-time, and seasonal employees.
–5– 163
Litigation
As of May 31, 2023, the City Administrator was not aware of any threatened or pending litigation that questions
the organization or boundaries of the City or the right of any of its officers to their respective offices or in any
manner questioning their rights and power to execute and deliver these bonds or otherwise questioning the validity
of the Bonds.
Future Financing
Does the City anticipate the need to issue bonds over the next 6 months? (Yes)/No.
If so, please state:
approximate dollar amount _____________
approximate date of issuance ______________,
purpose/use of the proceeds ____, and
source of revenue for payment of the bonds (e.g. special assessments, water revenues, sewer revenues, etc.)
Continuing Disclosure
Does the City have policies and procedures in place to be followed in relation to its continuing disclosure
undertakings, including reportable events? Yes/No.
Natural Disasters
Has the City experienced any material financial impacts from a natural disaster? Yes/(No). If yes, please explain:
_________________.
Direct Debt
Please review the debt listed on the following pages.
–6– 164
CITY OF KENYON, MINNESOTA
GENERAL OBLIGATION DEBT PAYABLE FROM TAXES
(As of July 2, 2023, Plus a Portion of This Issue)
A Portion of
This Issue
Purpose: G.O. USDA USDA G.O.
Capital Note Bonds,
Improvement Bonds, of Series
Series 2017A 2017 2023A
Dated: 08/28/17 08/28/17 08/09/23
Original Amount: $2,120,215 $450,000 $530,000
Maturity: 28-Aug 28-Aug 1-Feb TOTAL TOTAL
Interest Rates: 2.875 2.88% PRINCIPAL: PRIN & INT:
2023 $33,791 $7,172 $0 $40,963 $110,466 2023
2024 34,762 7,378 0 42,141 126,040 2024
2025 35,762 7,591 20,000 63,352 146,124 2025
2026 36,790 7,809 30,000 74,599 155,448 2026
2027 37,847 8,033 30,000 75,881 154,646 2027
2028 38,936 8,264 30,000 77,200 153,859 2028
2029 40,055 8,502 35,000 83,557 158,014 2029
2030 41,207 8,746 35,000 84,953 157,104 2030
2031 42,391 8,998 35,000 86,389 156,185 2031
2032 43,610 9,256 35,000 87,867 155,240 2032
2033 44,864 9,523 35,000 89,386 154,260 2033
2034 46,154 9,796 35,000 90,950 153,236 2034
2035 47,481 10,078 40,000 97,559 157,081 2035
2036 48,846 10,368 40,000 99,213 155,791 2036
2037 50,250 10,666 40,000 100,916 154,441 2037
2038 51,695 10,972 45,000 107,667 157,941 2038
2039 53,181 11,288 45,000 109,469 156,298 2039
2040 54,710 11,612 0 66,322 110,466 2040
2041 56,283 11,946 0 68,229 110,466 2041
2042 57,901 12,290 0 70,191 110,466 2042
2043 59,565 12,643 0 72,209 110,466 2043
2044 61,278 13,007 0 74,285 110,466 2044
2045 63,040 13,381 0 76,420 110,466 2045
2046 64,852 13,765 0 78,617 110,466 2046
2047 66,717 14,161 0 80,878 110,466 2047
2048 68,635 14,568 0 83,203 110,466 2048
2049 70,608 14,987 0 85,595 110,466 2049
2050 72,638 15,418 0 88,056 110,466 2050
2051 74,726 15,861 0 90,587 110,466 2051
2052 76,875 16,317 0 93,192 110,466 2052
2053 79,085 16,786 0 95,871 110,466 2053
2054 81,359 17,269 0 98,627 110,466 2054
2055 83,698 17,765 0 101,463 110,466 2055
2056 86,104 18,276 0 104,380 110,466 2056
2057 88,544 18,767 0 107,311 110,396 2057
$1,994,235 $423,260 $530,000 $2,947,495 $4,550,489
(1)
NOTE: 24% OF GENERAL OBLIGATION DEBT PAYABLE FROM TAXES WILL BE RETIRED WITHIN TEN YEARS.
(1) This schedule represents a portion of the $2,660,000 General Obligation Bonds, Series 2023A, dated August 9, 2023, consisting of $530,000 backed by
ad valorem taxes and $2,130,000 backed by utility revenues.
–7– 165
CITY OF KENYON, MINNESOTA
GENERAL OBLIGATION DEBT PAYABLE FROM SPECIAL ASSESSMENTS
(As of July 2, 2023)
Purpose: G.O. G.O.
Bonds, Bonds,
Series Series
2016A 2020A
Dated: 06/01/16 07/21/20
Original Amount: $620,000 $4,175,000
Maturity: 1-Feb 1-Feb TOTAL TOTAL
Interest Rates: 1.15-3.00% 2.00-3.00% PRINCIPAL: PRIN & INT:
2023 $0 $0 $0 $49,281 2023
2024 30,000 155,000 185,000 280,975 2024
2025 30,000 180,000 210,000 300,425 2025
2026 30,000 185,000 215,000 299,425 2026
2027 30,000 195,000 225,000 303,050 2027
2028 30,000 200,000 230,000 301,300 2028
2029 35,000 205,000 240,000 305,356 2029
2030 35,000 205,000 240,000 300,294 2030
2031 35,000 210,000 245,000 300,181 2031
2032 35,000 215,000 250,000 299,925 2032
2033 35,000 215,000 250,000 294,575 2033
2034 40,000 220,000 260,000 299,100 2034
2035 40,000 230,000 270,000 303,400 2035
2036 40,000 235,000 275,000 302,550 2036
2037 0 240,000 240,000 262,200 2037
2038 0 240,000 240,000 257,400 2038
2039 0 245,000 245,000 257,550 2039
2040 0 250,000 250,000 257,600 2040
2041 0 255,000 255,000 257,550 2041
$445,000 $3,880,000 $4,325,000 $5,232,138
(1)
NOTE: 47% OF GENERAL OBLIGATION DEBT PAYABLE FROM SPECIAL ASSESSMENTS WILL BE RETIRED WITHIN TEN YEARS.
(1) This schedule represents a portion of the $5,240,000 General Obligation Bonds, Series 2020A, dated July 21, 2020, consisting of $4,175,000 backed by
special assessments and $1,065,000 backed by utility revenues.
–8– 166
CITY OF KENYON, MINNESOTA
GENERAL OBLIGATION DEBT PAYABLE FROM REVENUES
(As of July 2, 2023, Plus a Portion of This Issue)
A Portion of
This Issue
Purpose: G.O.
Sewer G.O. G.O.
Bonds, Bonds, Bonds,
Series 2013 Series 2020A Series 2023A
Dated: 7/9/2013 7/21/2020 8/9/2023
Original Amount: $1,828,630 $1,065,000 $2,130,000
Maturity: 1-Aug 1-Feb 1-Feb TOTAL TOTAL
Interest Rates: 1.00% 2.00-3.00% PRINCIPAL: PRIN & INT:
2023 $93,000 $0 $0 $93,000 $173,643 2023
2024 93,000 50,000 0 143,000 239,948 2024
2025 94,000 50,000 10,000 154,000 246,830 2025
2026 95,000 55,000 115,000 265,000 352,173 2026
2027 96,000 55,000 120,000 271,000 352,423 2027
2028 97,000 55,000 120,000 272,000 347,628 2028
2029 98,000 55,000 125,000 278,000 348,033 2029
2030 99,000 55,000 125,000 279,000 343,539 2030
2031 100,000 60,000 135,000 295,000 353,685 2031
2032 101,000 60,000 140,000 301,000 353,565 2032
2033 102,000 60,000 140,000 302,000 348,185 2033
2034 0 65,000 145,000 210,000 249,378 2034
2035 0 65,000 150,000 215,000 248,158 2035
2036 0 65,000 155,000 220,000 246,540 2036
2037 0 50,000 160,000 210,000 229,750 2037
2038 0 50,000 160,000 210,000 222,725 2038
2039 0 50,000 170,000 220,000 225,540 2039
2040 0 50,000 160,000 210,000 211,500 2040
2041 0 50,000 0 50,000 50,500 2041
$1,068,000 $1,000,000 $2,130,000 $4,198,000 $5,143,740
(1) (1) (2) (3) (1) (2) (4)
NOTE: 56% OF GENERAL OBLIGATION DEBT PAYABLE FROM REVENUES WILL BE RETIRED WITHIN TEN YEARS.
(1) These bonds are payable primarily from net revenues of the municipal sewer utility system and additionally secured by ad valorem taxes on all taxable property
within the City and without limitation of amount.
(2) These bonds are payable primarily from net revenues of the municipal water utility system and additionally secured by ad valorem taxes on all taxable property
within the City and without limitation of amount.
(3) This schedule represents a portion of the $5,240,000 General Obligation Bonds, Series 2020A, dated July 21, 2020, consisting of $4,175,000 backed by
special assessments and $1,065,000 backed by utility revenues.
(4) This schedule represents a portion of the $2,660,000 General Obligation Bonds, Series 2023A, dated August 9, 2023, consisting of $530,000 backed by
ad valorem taxes and $2,130,000 backed by utility revenues.
–9– 167
CITY OF KENYON, MINNESOTA
LEASE OBLIGATIONS DEBT
(As of July 2, 2023)
Purpose: Lease
Agreement
2022
Dated: 08/24/22
Original Amount: $154,110
Maturity: 1-Jan TOTAL TOTAL
Interest Rates: 3.76% PRINCIPAL: PRIN & INT:
2023 $0 $2,695 2023
2024 28,290 28,290 34,373 2024
2025 29,270 29,270 34,247 2025
2026 29,270 29,270 33,088 2026
2027 29,270 29,270 31,874 2027
2028 29,270 29,270 30,602 2028
$145,370 $145,370 $166,880
NOTE: 100% OF LEASE OBLIGATION DEBT WILL BE RETIRED WITHIN TEN YEARS.
– 10 – 168
Other Financial Obligations
Please review the other financial obligations information below. Has the City incurred any additional debt not
currently listed? Yes(/No). Is the City experiencing any financial difficulties with any financial obligations?
Yes(/No).
Financial Obligation means: a Debt Obligation, a derivative instrument entered into in connection with,
or a source of payment for, an existing or planned Debt Obligation, or a guarantee of a Debt Obligation or
derivative instrument. Examples of a "Financial Obligation" or "Debt Obligation" include: State Revolving
Fund (SRF) loan, PFA loan, USDA loan, bank loan or direct placement, lease agreement that operates as a
vehicle to borrow money.
Date New Any
Final Obligation Financial
Closing Maturity Posted to Difficulty?
Title of Financial Obligation Date Date EMMA (Y/N)
G.O. Sewer Bonds, Series 2013 7/9/2013 8/1/2033 N/A
USDA Note of 2017 8/27/2017 8/28/2057 N/A
USDA Bonds of 2017 8/27/2017 8/28/2057 N/A
NOTES:
A Financial Obligation must be posted on EMMA (if material) within 10 business days of incurrence (i.e.
closing).
If a Financial Obligation experiences a default, event of acceleration, termination event, modification of
terms, or other similar event which reflects financial difficulties, the event must be posted on EMMA within
10 business days of occurrence.
– 11 – 169
WITNESS our hand and seal of the said City of Kenyon, Minnesota on this 31_ day of May, 2023.
City Administrator
(S E A L)
– 12 – 170
Summary:
Kenyon, Minnesota; General
Obligation
Primary Credit Analyst:
Virginia A Murillo, San Francisco 1-415-371-5098; virginia.murillo@spglobal.com
Secondary Contact:
Joseph Vodziak, Chicago + 1 312 233 7094; joseph.vodziak@spglobal.com
Table Of Contents
Credit Highlights
Outlook
Related Research
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Summary:
Kenyon, Minnesota; General Obligation
Credit Profile
US$2.66 mil GO bnds ser 2023A dtd 08/09/2023 due 02/01/2040
Long Term Rating A+/Stable New
Kenyon GO bnds
Long Term Rating A+/Stable Affirmed
Credit Highlights
• S&P Global Ratings assigned its 'A+' rating to Kenyon, Minn.'s roughly $2.66 million series 2023A general obligation
(GO) bonds.
• At the same time, S&P Global Ratings affirmed its 'A+' rating on the city's existing GO debt.
• The outlook is stable.
Security
The city's full-faith-and-credit and unlimited-taxing-powers pledges secure the series 2023A bonds and existing GO
debt. Kenyon expects to pay debt service with net water-and-sewer-utility revenue and ad valorem property taxes.
However, we rate to the city's GO pledge.
Officials intend to use series 2023A bond proceeds to finance water, sewer, and street improvements.
Credit overview
Very strong reserves and liquidity, in our opinion, support the rating. While Kenyon has had uneven operating results
during the past three fiscal years, it has maintained reserves at more than its 40% fund-balance policy. Kenyon
reported a draft, audited $111,800 operating surplus, or 7.4% of operating expenditures, at fiscal year-end Dec. 31,
2022, due primarily to revenue outperforming the budget. Kenyon budgeted for near breakeven general fund results in
fiscal 2023, which management expects to achieve. The general fund benefits from stable and predictable revenue,
primarily state aid at 46% and property taxes at 42% in fiscal 2021. While Kenyon expects higher state local
government aid within the next year, management has conservatively kept state aid flat when planning for the fiscal
2024 budget. We think managing inflationary pressure will be key for Kenyon's maintenance of balanced operations.
Kenyon is a small bedroom community between Rochester and Minneapolis. Recent sizable property tax base growth
reflects new commercial and residential development, but economic indicators remain below average compared with
higher-rated peers. Management is working with developers to make additional lots available for single-family and
rental-property housing.
With the series 2023A issuance, Kenyon will have $9.47 million in total direct debt outstanding. The city has four
master-lease-purchase agreements with an equipment leasing company, totaling approximately $395,000. In our view,
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Summary: Kenyon, Minnesota; General Obligation
these agreements' terms are standard but include acceleration provisions. We do not think these leases pose a risk to
the city due to its very strong liquidity with $8.76 million in cash at fiscal year-end 2021.
The rating reflects our opinion of Kenyon's:
• Primarily residential community with market value growth that has accelerated during the past few years--However,
we expect residential development and market value will likely slow during the next few years as interest rates
increase (For the third-quarter 2023 economic outlook, see "Economic Outlook U.S. Q3 2023: A Sticky Slowdown
Means Higher For Longer," published June 26, 2023, on RatingsDirect.);
• Revised Financial Management Assessment (FMA) to good from standard, reflecting our view of more-robust
capital planning--Policy and practice highlights include its monthly budget-to-actual reports and a fund-balance
reserve policy at 40% of budgeted expenditures, which the city has complied with historically--and strong
Institutional Framework score;
• Very strong budgetary flexibility and liquidity with no plans to draw down reserves;
• Very weak debt profile we expect will likely remain so during the next few years due to slower-than-average
amortization and plans to issue approximately $2.5 million of new-money debt to support street projects in 2025;
and
• Low annual pension costs compared with the overall budget, as Kenyon contributes to two multiple-employer,
defined-benefit pension plans, Minnesota General Employees' Retirement Fund and Minnesota Police & Fire
Fund--The pension plans are underfunded at 87% and 93.7%, as of June 30, 2021, and annual contributions reflect a
nonactuarially based statutory formula, increasing the likelihood of cost acceleration; we think the city has sufficient
operational flexibility to adjust for higher costs.
Environmental, social, and governance
We view environmental, social, and governance (ESG) risk factors as neutral in our credit analysis.
Outlook
The stable outlook reflects S&P Global Ratings' expectation that Kenyon will likely maintain very strong liquidity and
reserves during the two-year outlook.
Downside scenario
We could lower the rating if budgetary performance were to weaken, resulting in substantial available reserve
decreases, or if debt were to place greater pressure on finances.
Upside scenario
We could raise the rating if Kenyon's debt profile and economic metrics were to improve, coupled with consistent
balanced budgetary performance and the maintenance of very strong reserves and liquidity.
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Summary: Kenyon, Minnesota; General Obligation
Kenyon, Minnesota key credit metrics
Most recent --Historical information--
2021 2020 2019
Weak economy
Projected per capita effective buying income (EBI) (%) of U.S. 83.9
Market value per capita ($) 85,142
Population 1,853 1,859 1,862
County unemployment rate(%) 2.6
Market value ($000) 157,768 141,733 127,826 125,692
10 largest taxpayers as a % of taxable value 14.1
Adequate budgetary performance
Operating fund result as a % of expenditures (3.8) 6.9 (0.1)
Total governmental fund result as a % of expenditures (8.3) 11.2 (9.9)
Very strong budgetary flexibility
Available reserves as a % of operating expenditures 68.6 76.7 68.2
Total available reserves ($000) 1,076 1,069 953
Very strong liquidity
Total government cash % of governmental fund expenditures 341.4 397.2 250.7
Total government cash % of governmental fund debt service 3,085.6 2,325.2 2,300.3
Adequate management
Financial Management Assessment Good
Very weak debt and long-term liabilities
Debt service as a % of governmental fund expenditures 11.1 17.1 10.9
Net direct debt as a % of governmental fund revenue 414.8
Overall net debt as a % of market value 7.4
Direct debt 10-year amortization (%) 47.6
Required pension contribution as a % of governmental fund expenditures 4.0
Other postemployment benefits actual contribution as a % of governmental fund expenditures --
Strong Institutional Framework
Data points and ratios may reflect analytical adjustments.
Related Research
• S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013
• Incorporating GASB 67 And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's U.S. Local
Government GO Criteria, Sept. 2, 2015
• Criteria Guidance: Assessing U.S. Public Finance Pension And Other Postemployment Obligations For GO Debt,
Local Government GO Ratings, And State Ratings, Oct. 7, 2019
• 2022 Update Of Institutional Framework For U.S. Local Governments
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Summary: Kenyon, Minnesota; General Obligation
• Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March
2, 2022
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed
to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for
further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating
action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.
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AGENDA ITEM NO.
XII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: July 11, 2023
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: F.Y.I. - Department Updates
SUBJECT: FYI- Department Updates
SUGGESTED ACTION: See attached below.
ATTACHMENTS:
DOC070723-001.pdf
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