Kenyon/City Hall/Meetings/January 9, 2024/Packet

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AGENDA
CITY COUNCIL REGULAR SESSION
January 9, 2024
7:00 PM
I. CALL TO ORDER AND ROLL CALL

II. CITIZEN COMMENTS

III. ADOPT AGENDA

III.A Agenda
MOTION NEEDED

Summary Report
1-9-24 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 Minutes
Summary Report
12-12-23 Minutes.doc

VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS

VI.A Brett Reese – Rebound Partners – Update on Kenyon Senior Living Project
Summary Report
Kenyon Investor Presentation 11.9.2023.pdf

VII. ENGINEERING

VII.A Pearl Creek Sanitary Sewer Improvements
1. Approve Pay Application 3-BCM Construction - $16,078.75

Summary Report
01.1_Peark Creek Sewer Summary.pdf
01.2_Pearl Creek Pay App 3.pdf

VII.B Infrastructure Projects Update
Summary Report
05.1_2024 Infrastructure Project Updates.pdf

VII.C GIS

1
Summary Report
02.1_GIS Proposal Summary.pdf
02.2_GIS Proposal.pdf

VII.D Approve Increase to General Engineering Rates
Summary Report
03.1_General Engineering Rates Letter.pdf

VII.E 2024 Streets Seal Coating

Summary Report
04.1_2024 Seal Coating Summary.pdf

VIII. LEGAL

VIII.A 2024 Appointments and Designations
Summary Report

VIII.B Resolution 2024-01: Establishing License Fees and Compensation
Summary Report
Resolution 2024-01 Establish License Fees and Compensation.docx

VIII.C Annual Licenses
Summary Report

VIII.D Kennedy & Graven 2024 Rates for Legal Services
Summary Report
City_of_Kenyon_2024_Legal_Rate_Letter.pdf

IX. FINANCIAL

X. OLD BUSINESS

X.A Muni Roof and Flooring Replacement
Summary Report
Kenyon Muniflooring quoteHammrnicks.pdf 1-24.pdf
Kenyon Muniflooring labor quotePictureperfectflr.pdf 1-24.pdf
Kenyon Muni flooring quote Hiller.pdf

XI. NEW BUSINESS

XI.A Resolution 2024-02: A Resolution Authorizing Acceptance of 2022 Donations
Summary Report
Resolution 2024-02 Authorizing Acceptance of 2022 Donations.docx

XI.B CEDA CONTRACT SERVICES
Summary Report
CEDAKenyon2024Contract.docx

2
XI.C Premises Gambling Permit for Kenyon Snowdrifters
- Approve Resolution 2024-03: Approving the Lawful Gambling Premises
Permit Application for the Kenyon Snowdrifters to Conduct Lawful
Gambling at the Kenyon VFW Conrad Osthum Post #141 Located at 601 2 nd
Street, Kenyon, MN 55946

Summary Report
Resolution 2024-03 Approving_Premises_Permit.docx
DOC010524.pdf

XI.D Set Council Work Session Date to Review Salary Compensation Study
Summary Report

XI.E Resolution 2024- Resolution approving Preliminary and Final Plat Sunrise 2nd
Addition.
Summary Report
Sunrise 2nd Addition Comments.pdf
Resolution 2024-04 Approving_preliminary_and_final_plat Sunrise 2nd Addn.doc

XI.F Request to amend Zoning Ordinance to allow apartments on the rear ½ of the first
floor of buildings in the C-1 district. –Zoning Ordinance Section 515.15 Subd. 3 a) -
Stephanie Brezina
Summary Report
DOC010524-002.pdf

XII. F.Y.I. - Department Updates

XII.A FYI
Summary Report
1-9-24 FYI.pdf

XIII. COUNCIL AND STAFF GENERAL COMMENTS

XIV. ADJOURNMENT

3
AGENDA ITEM NO. III.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Agenda

AGENDA SECTION: ADOPT AGENDA

SUBJECT: Agenda
MOTION NEEDED

SUGGESTED ACTION: See January 9, 2024, attached below.

ATTACHMENTS:
1-9-24 Agenda Council Meeting.docx

4
AGENDA
CITY COUNCIL MEETING
January 9, 2024

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 December 12, 2023
B. Approve Kenyon Fire Department Volunteers Josh Johnson, Jed Johnson, Caleb
Langer, Logan Meyers, Isiah

VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
A. Brett Reese – Rebound Partners – Update on Kenyon Senior Living Project

VII. ENGINEERING
A. General Project Update
1. Pearl Creek Sanitary Sewer Improvements
a. Approve Pay Application 3-BCM Construction - $16,078.75
2. Infrastructure Projects Update
3. GIS
a. Approve GIS Summary
4. Approve Increase to General Engineering Rates
5. 2024 Streets Seal Coating

VIII. LEGAL
A. 2024 Appointments and Designations
1. Library Board – 3 Year Term
a. Bev Emerson
b. Cathy Whipple
2. Planning Commission – 2 Year Term
a. Jerry Barrett
b. Dennis Wickum
c. John Cambronne
3. Historic Preservation Commission (HPC) – 3 Year Term
a. Kevin Anderson
4. Park & Recreation
5
a. Melissa Bartel
b. Tedd Pederson
5. Appointments
a. Acting Mayor – Mary Bailey
b. Legal Newspaper – Kenyon Leader
c. Depository – Security State Bank
d. City Attorney – Scott Riggs, Kennedy & Graven Chartered
e. Prosecuting Attorney – David Jacobsen, Jacobsen Law Firm
f. City Engineer – Derek Olinger, Bolton & Menk
g. City Auditor – Abdo Eich and Meyers
h. Financial Consultant – George Eilertson - Northland Securities
i. Investments – As Allowed Per Minnesota Statutes
j. Deputy Clerk – Holli Gudknecht
k. Weed Inspector – Doug Henke
l. Audit Committee –Doug Henke, Molly Ryan, Whitney Kyllo, Mark
Vahlsing
m. Personnel Committee – Doug Henke, Molly Ryan Mark Vahlsing
n. Liquor Committee – Doug Henke, Lee Sjolander, Mark Vahlsing
o. Kenyon Fire Relief Association – Doug Henke and Mark Vahlsing
B. Resolution 2024-01: Establishing License Fees and Compensation
C. Annual Licenses
1. Flom Disposal Inc. (Residential/Commercial, Temporary roll-off dumpster)
2. Flom Disposal Inc. (Residential/Commercial Recycling)
3. Waste Management (Commercial, Temporary roll-off dumpster)
4. Waste Management (Commercial Recycling)
5. Veit (Temporary roll-off dumpster)
6. LRS of Minn (Temporary roll-off dumpster)
7. Goodhue County Public Works (Recycling)
8. Kenyon Ace Hardware (sidewalk)
9. Kenyon VFW Post 141(Sidewalk)
10. Mary’s Rustic Rose (Sidewalk)
11. Mark Lenway (Sidewalk)
12. D & S Banner, Sign & Print (Sidewalk)
13. Angie’s (Sidewalk)
14. Taco Express (Sidewalk)
15. Kenyon VFW Post 141(Dance)
16. Che Che’s Lunchera (Mobile Merchant)
17. Taco Express (Mobile Merchant)
D. Kennedy & Graven 2024 Rates for Legal Services

IX. FINANCIAL
**A. December 2023 Treasurer’s Report
**B. Payment of Claims

X. OLD BUSINESS
A. Muni Roof And Floring Replacement Quotes

XI. NEW BUSINESS
A. Resolution 2024-02: A Resolution Authorizing Acceptance of 2023 Donations
B. CEDA Contract Services
C. Premises Gambling Permit for Kenyon Snowdrifters
1. Approve Resolution 2024-03: Approving the Lawful Gambling Premises Permit

6
Application for the Kenyon Snowdrifters to Conduct Lawful Gambling at the
Kenyon VFW Conrad Osthum Post #141 Located at 601 2nd Street, Kenyon, Mn
55946
D. Set Council Work Session Date to Review Salary Compensation Study
E. Resolution 2024- Resolution approving Preliminary and Final Plat Sunrise 2nd Addition.
F. Request to amend Zoning Ordinance to allow apartments on the rear ½ of the first floor
of buildings in the C-1 district. –Zoning Ordinance Section 515.15 Subd. 3 a) - Stephanie
Brezina
G.

XII. OTHER BUSINESS
A. Schedule of Upcoming Meetings
1. KMU Meeting: Tuesday, January 16th @ 4:00 p.m.
2. EDA Annual Meeting: Tuesday, January 30th @ 9 a.m. at Foldcraft
3. City Council Meeting: Tuesday, February 13th @ 7 p.m.

XIII. COUNCIL AND STAFF GENERAL COMMENTS

XIV. ADJOURNMENT

7
AGENDA ITEM NO. V.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Minutes

AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS

SUBJECT: Minutes

SUGGESTED ACTION:
City Council Meeting Minutes of December 12, 2023

MOTION NEEDED

ATTACHMENTS:
12-12-23 Minutes.doc

8
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 12th day of December 2023. The meeting was called to order by Mayor Henke.
The following members were present: Mayor Doug Henke, Council Members Kim Helgeson, Lee
Sjolander, Molly Ryan
Absent: Mary Bailey
Also, present: City Administrator Mark Vahlsing, Attorney Scott Riggs, Public Works Director Wayne
Ehrich, City Engineer Derik Olinger, Police Chief Jeff Sjoblom, Finance Director Whitney Kyllo, Police
Officer Brian Homeier

The meeting opened with the Pledge of Allegiance.

CITIZEN COMMENT
None

ADOPT AGENDA
Motion by Ryan second by Henke to approve the agenda. Motion carried 4-0-0.

CONSENT AGENDA
Motion by Helgeson second by Sjolander to approve the Consent Agenda, which includes payment of check
numbers, 75474 through 75570; 4780E through 4808E.
Motion carried 4-0-0.

PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
None

ENGINEERING
2023 Street Improvements
Project Update
Engineer Olinger stated that the majority of the work is now complete with some small repairs remaining to
be completed.
Approve Pay Request #3 – BMI Inc -$11,450.47
Motion by Ryan second by Helgeson to approve pay request No. 3 to BMI Inc in the amount of
$11,450.47 for work completed through November 9, contingent on submittal of closeout
documentation.
Motion carried 4-0-0.

Pearl Creek & Gates Avenue Utility Improvements Update
Engineer Olinger updated the Council on the Pearl Creek Sanitary Sewer project. He stated that BCM
was wrapping up work for this year. Water and electrical utilities west of Gates Avenue have been
installed. Ellingson Drainage installed forcemain in this area. The remainder of the project will be
completed next spring.

LEGAL
No items

OLD BUSINESS
2024 Budget and Levy
Approve Increase $2.00 per hour (plus 3% Cola) Increase for Manager and up to $3.00 per hour for PT Staff.
Motion Ryan, Second Henke to approve $2.00 per hour raise for manager and up to $3.00 per hour for part-
time Muni staff. Motion carried 4-0-0 Eliminate Admin Assist Position. (Funding moved to full time officers
9
in 2024 Budget)
Chief Sjoblom requested that the council eliminate the administrative position and move funding to full time
police officers in the 2024 budget.
Motion by Henke, second by Ryan to eliminate the full-time administrative position and move funding to
full time police officers in the 2024 budget.
Ayes: Henke, Ryan and Helgeson
Nayes: Sjolander
Motion carried 3-1-0

Resolution 2023-29: Adopting the 2024 Budget and Establishing the Tax Levy for Payable 2024
Administrator Vahlsing stated that the Truth in Taxation meeting was held on December 5. No public
comments were received at the meeting. The final budget shows a maximum proposed levy increase of
8% for 2024.
Motion by Sjolander second by Helgeson to adopt Resolution 2023-29 adopting the 2024 budget and
establishing the tax levy of $1,277,965 payable in 2024. Motion carried 4-0-0.

Purchase of SCBA equipment and Compressor - Fire Department
Administrator Vahlsing stated that the Fire Department is seeking approval to purchase SCBA Equipment
and Compressor. Based on the attached quotes the SCBA Equipment would cost $116,805. The cost of the
compressor would be $39,640. Total cost: $156,445. The fire department is requesting to use half of the
Public Safety Aid which is $42,000. and $37,000 in donations toward the purchase. The remaining amount
of the purchase price ($77,445) could come out of the FD capital fund which currently has an approximate
balance of $255,000.
Motion by Sjolander, second by Ryan to approve the purchase of SCBA equipment and compressor.
Motion carried 4-0-0

Community Entrance Sign Final Design
City Engineer Olinger provided an update on the Community Entrance Sign project. The final design has
been submitted to Precision Sign and MNDOT. The City is waiting for final approval of the sign right-of-
way permit from MNDOT.

Muni Roof and Flooring Replacement
Administrator Vahlsing stated that he was continuing to get quotes for roofing and flooring replacement for
the Muni. He is hoping to have additional quotes for the January Council meeting to approve.

OLD BUSINESS
Resolution 2023-30: A Resolution Committing Capital Fund Balance
Administrator Vahlsing stated that the general accounting standard (GASB 54) requires all public entities to
set year end Capital fund balances before the end of the current year contingent on audited final numbers.
The final year-end capital fund amounts will not be known until the 2023 audit is completed.
Motion by Helgeson seconded by Ryan to adopt Resolution 2023-30 committing capital fund balances.
Motion carried 4-0-0.

Approve Transfer of Fire Department Year End Remaining Funds to Capital Fund
Administrator Vahlsing stated that council approval is needed to move the year end Fire Department budget
balance to the capital fund. The actual transfer amount will be determined by the auditors as part of the 2023
audit.
Motion by Ryan seconded by Helgeson to approve the transfer of fire department year end remaining funds
to capital funds. Motion carried 4-0-0.

10
Approve Transfer of Street Maintenance Year End Remaining Funds to Capital Fund
Administrator Vahlsing stated that council approval is needed to move the year end Street Maintenance
Department budget balance to the capital fund. The actual transfer amount will be determined by the
auditors as part of the 2023 audit.
Motion by Ryan seconded by Helgeson to approve the transfer of public works year end remaining funds,
including street maintenance, pool, and parks, to capital funds. Motion carried 4-0-0.

2024 Sanitary and Storm Sewer Rates
Administrator Vahlsing stated that during the November 28 special council meeting, discussion was held on
possible increases to sanitary and storm water rates. After further review, staff would recommend
increasing the Sanitary Sewer Fund increase rate from $6.61 per thousand gallons to $7.40 per thousand.
The residential sewer base rate would also increase from $23.44 to $26.25 per month. For storm sewer the
recommendation would be to increase the maintenance fee from $4.03 per month to $9.00 a month for
residential customers. The increases are needed to offset upcoming project costs and reflect
recommendations from the utility rate study.
Motion by Sjolander Second by Helgeson to approve recommended sanitary and storm sewer utility rates for
2024. Motion carried 4-0-0

2024 Tobacco License Renewals
Kenyon Market
River Country Co-Op (Speedway)
Kenyon Municipal Liquor Store
Motion by Ryan seconded by Sjolander to approve the 2024 tobacco license renewals.
Motion carried 4-0-0.

Jacobson Law - Request for Increase to Fees for 2024 Criminal Prosecution Contract
Administrator Vahlsing stated that Prosecuting Attorney Jacobson requested a $250 monthly increase to
their contract effective January 1, 2024. The annual cost would increase from $13,800 to $16,800.
Motion by Sjolander second by Helgeson to approve a rate increase of $100 per month for Jacobson Law
effective January 1, 2023.
Motion by Sjolander Second by Henke to approve rate increase for Jacobson Law office effective January 1,
2024. Motion carried 4-0-0.

Adopt State Earned Safe and Sick Time Policy
Administrator Vahlsing updated the Council on a new law requiring sick leave that was passed by the
legislature earlier this year. Beginning January 1, 2024, earned sick and safe time is available for full and
part time employees that work at least 80 hours in a year for an employer in Minnesota. Employees must
accrue at least one hour of earned sick and safe time for every 30 hours they work, up to at least 48 hours in a
year. Currently, City of Kenyon / KMU allows a full-time employee to accrue 12 working days during the
full year (365 days) of employment. City of Kenyon / KMU’s current sick policy supersedes the law and will
not change sick time accrual for full-time employees.
Motion by Ryan, Second by Helgeson to approve Adopt State Earned Safe and Sick Time Policy. Motion
Carried 4-0-0

Holiday Office Closings
Administrator Vahlsing requested approval for City Offices/Library to close at noon on Friday, December 22
and for the library to be closed on Saturday, December 23.
Motion by Bailey seconded by Ryan to close the City Office and Library at noon on Friday, December 22
and close the library on Saturday, December 23.
11
Motion carried 4-0-0.

Schedule of Upcoming Meetings
KMU Meeting: Tuesday, December 19th @ 4:00 p.m.
City Council Meeting: Tuesday, January 9th @ 7:00 p.m.

COUNCIL AND STAFF GENERAL COMMENTS
Administrator Vahlsing thanked everyone for their hard work in making Christmas in Kenyon successful.
(Especially Kim and the Park Board)

Mayor Henke stated that this has been an exciting year with many challenges. He thanked everyone for their
hard work.

Council member Helgeson thanked everyone involved in Christmas in Kenyon.

Council member Sjolander wished everyone a Merry Christmas and thanked City Staff for their continued
hard work.

Council member Ryan wished everyone a Merry Christmas and Happy New Year.

Police Chief Sjoblom wished everyone Happy Holidays

Motion by Helgeson second by Ryan to adjourn the meeting at 8:05 p.m.
Motion carried 4-0-0.

Mark R. Vahlsing, City Administrator Douglas Henke, Mayor

12
AGENDA ITEM NO. VI.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Miscellaneous

AGENDA SECTION: PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS

SUBJECT: Brett Reese – Rebound Partners – Update on Kenyon Senior
Living Project

SUGGESTED ACTION: Brett Reese will provide an update on the Kenyon Senior Living
Project. See copy of the PowerPoint presentation attached below.

ATTACHMENTS:
Kenyon Investor Presentation 11.9.2023.pdf

13
NEW VISION FOR
GUNDERSON GARDEN +
KENYON SUNSET HOMES
November 9, 2023

14
Presentation Outline
Opening Comments & Remarks
Site Overview
Project Overview
Property Details
The Team
Next Steps

15
Opening Comments & Remarks
Why are we here?
Taking closed facility and bringing it back to community
Kenyon apartment project
From nursing home & assisted living
Market rate apartments
Unique investment opportunity in your community &
backyard where you live and work
Share information on investment opportunity

The Numbers:
$6.2M Project
$1.5M equity from local investors + Rebound
46 Apartments + 5 Extended Stay / VRBO Units
Projected: 10% + Return

We want your feedback, input, questions and comments
Why would you invest? Why would you not invest?
16
Site Overview
DETAILS
Located in Kenyon, MN (Goodhue County)
Site along Highway 60 (Gunderson Blvd)
Site approximately 2.75 acres

17
Project Overview
Former senior assisted living and memory care facility closed in 2022
Portfolio sold via auction in August 2023 to Jerry Anderson
Form new entity to purchase and renovate property
Opportunity to repurpose into market rate apartment rentals; apartment rentals of various types including
extended stay / VRBO

CURRENT PROPERTY DESCRIPTION
Gunderson Gardens Assisted Living & Memory Facility (104 3rd Street)
Remodel property into market rate apartments
Former memory care units; potential units for tenants 50 & over
Kenyon Sunset Homes (202 3rd Street)
Remodel property into market rate apartments
Extended stay / VRBO units
Historic Home (117 3rd Street)
Opportunity to renovate and lease into 2-3 separate residential units
Kenyon Clinic (225 Huseth Street)
Continue to lease to Northfield Clinics
18
Property Details

19
Garden View Apartments (Formerly Gunderson Gardens)
CURRENT STATUS
Year built: 2004 (Remodeled in 2016/2017)
Number of units: 20 | Approximate square footage: 21,000
Past use: Assisted living & memory care

OPPORTUNITY
Rebrand space to Garden View Apartments & Kenyon Suites (50+)
Renovate residential units into market-rate apartments with 3 garages Maac Companies

16-units (Potentially looking at 50+ 1-bed & 2 bed units)
Minimal work to bring units to market - $200,000
4-units (Senior 55+ units with separate entrance + in-unit W/D)
Units to be remodeled from memory care to apartments - $150,000
Leasing of two offices with four rooms + boardroom
Amenities include laundry, fitness, storage & garage to lease, keyless digital
entry, and community room
Begin leasing in January 2024
Maac Companies

Units range from $1,000 to $1,300 plus utilities per month
20
Garden View Apartments (Formerly Gunderson Gardens)

Maac Companies

21
Garden View Apartments (Formerly Gunderson Gardens)

Maac Companies

22
Maplewood Flats / Gunderson Inn & Suites
CURRENT STATUS
Former nursing home built in1960s; updated various times
Estimated square footage: 30,000
Approximate number of units: 40 currently (250 SF to 350 SF)

OPPORTUNITY
Rebrand space to Maplewood Flats / Gunderson Inn & Suites
Renovate property into market-rate rental units Maac Companies

22 apartments (studios, 1 BR, & 2 BR)
5 furnished extended stay / VRBO short term suites
Upgrading HVAC system and internet system
Installing kitchens, remodeling bathrooms, new paint & windows
Commercial kitchen & significant storage space lease availability
Amenities include laundry, fitness, storage for lease and community room
Maac Companies

Begin leasing in Summer of 2024
Maplewood Flats: $800 to $1,400 per month (includes utilities)
Gunderson Inn & Suites: $700 per month on average (includes utilities)
23
Historic Home
CURRENT STATUS
Estimated square footage: 3,000+
Layout: 2-story structure with 4 bedrooms along with basement + attic
Separate entrance

OPPORTUNITY
Renovate and repurpose house into four residential units
4 - 2 BR apartments
Update HVAC systems, new plumbing & electrical
Interior & exterior painting
New carpet throughout home
New kitchen and bathrooms
Restore historical elements of home
Plan to lease in Summer or Fall of 2024 Maac Companies

Units leasing at $1,200 per month
Maac Companies
Maac Companies

24
Kenyon Clinic
NORTHFIELD HOSPITAL + CLINICS PROVIDES
IMPORTANT ASSET TO COMMUNITY
Healthcare services
Convenience for community
Jobs
Churning dollars locally

CURRENT STATUS
Year built: 2004
Maac Companies

Estimated square footage: 3,500 SF
Tenant: Kenyon Clinic (Northfield Hospital + Clinics)
Lease extended an additional two years through Sept. 2025

OPPORTUNITY
No renovation required
Continue to lease clinic space to Northfield Hospital +Clinics (NHC)
Maac Companies

Plan to share renovation with NHC Maac Companies

Explore extending lease with NHC - 5 years 25
Investment Details

26
Project Timeline & Scope
November 1, 2023 to December 15, 2023:
Bank financing
Raising of equity & notes
Early renovation start on Garden View Apartments
Close on property on or before December 15, 2023

Phased Renovation Plan:
Phase I - Garden View Apartments
Phase II + III - Maplewood Flats + Gunderson Inn & Suites
Phase IV - Commercial Kitchen (Including 2 Apartments)
Phase V - Historic Home (4 Apartments)

Project Scope:
46 Apartments + 5 Extended Stay Inn Rooms
Northfield Hospital + Clinics lease
Storage & Garage Space for lease
Commercial Kitchen for lease
27
Sources of Funds
$6.2M
TOTAL CAPITAL REQUIRED FOR
ACQUISITIONS & RENOVATIONS

$1.5M $4.2M $500K TBD
EQUITY FROM INVESTORS BANK LOAN SUB-DEBT PUBLIC ASSISTANCE

Limited Partners Security State Bank of 10-Year Loan EDA
Individuals Kenyon 6% Interest Rate City
Companies Profinium Bank 10 Years of Interest Only Other Sources
Non-Profits Payments
General Partners Balloon Payment at End of
Year 10

LIMITED PARTNER PROJECTED INVESTMENT RETURN (NET IRR): 10%+

28
Investment Structure
General Partner (GP) + Limited Partner (LP) Investment Model

BENEFITS OF GP/LP INVESTMENT MODEL
General Partners bring knowledge and experience to a project increasing the likelihood of success.
General Partners guide strategy and execution, optimizing investment decisions.
General Partners invest directly into project alongside Limited Partners.
General Partners are incentivized to ensure that project performs.

GENERAL PARTNER (GP) ROLES
Governance & management oversight of asset
Investor relations & communication
Financial reporting & administration

LIMITED PARTNER (LP) ROLES
Provide capital to the project, receiving direct project ownership, no capital calls above committed amount required
Provide capital but have no active management responsibilities
Share in the profits or losses of the investment without direct involvement

29
Allocation of Investment Return to LP & GP

1 Return of
Capital 100% TO LP 100% of distributions go to LPs until they have
recouped their capital contribution

Distributions go to LPs until the fund has
2 Preferred
Return 8% TO LP reached its preferred return, or "hurdle
rate" at 8% annualized return

3 GP Distributions go to the GP as an incentive
Catch-Up 2% TO GP based on fund performance

80% of the remaining
4 Remaining
Distributions
80% TO LP
capital goes to LPs and
20% goes to the GP
20% TO GP
30
The Team

31
Management Teams
Rebound Real Estate
Affiliate of Rebound Partners; full-service acquisition, development,
and asset management company based out of Northfield.
Role: Acquisition, space layout, oversee construction, project
management, financing (bank, sub-debt, and equity) and asset
management

REVocity
Affiliate of Rebound Real Estate & Rebound Partners
Role: Capital raising & financing, investor relations, asset
management and governance

G&H Properties
Real estate management company based out of Faribault.
Role: Property management, leasing and on-site management

32
Project Partners
Security State Bank of Kenyon
Family owned and operated bank based in Kenyon and serving SE
Minnesota since 1934.
Role: Senior debt financing for acquisition and renovation

Profinium Bank (Owatonna)
Leading loan credit due to the size of this redevelopment. Solid
working relationship with Security State Bank of Kenyon.

NCC Builders
General contractor located in Northfield. Founded in 1972, engaged in
residential and commercial construction developments and renovations.
Role: General contractor for Garden View Apartments

33
Rebound / REVocity Overview

34
Real Estate Manufacturing Food & Beverage

REVocity Community
Self Storage Community Service
Real Estate Funds

Architecture &
Hospitality Financial Services
Engineering

35
Real Estate Experience
Apartments - Northfield Food & Beverage - Northfield Retail Development - Grand Rapids

Historic Renovations - Winona Residential/Commercial Development Downtown Renovations - Northfield

Branded Hotels - Decorah (Iowa) Mixed-Use Renovation - Faribault Commercial & Industrial - Faribault

36
REVocity Community Real Estate Funds
ESTABLISHED FUNDS
Northfield Fund I, II, & III
Grand Rapids
Winona
Owatonna Cook County
Spring Grove
Grand Rapids
Decorah
Cook County
Faribault
Albert Lea
Hastings

FUNDS INITIATED
Rochester Area (Olmsted County)
Hastings
Waseca
Northfield Red Wing
Marshall Faribault
Marshall
Austin Waseca
Winona
Red Wing Owatonna Rochester
Albert Lea Spring Grove
Austin Decorah (Iowa) 37
Next Steps

38
Next Steps
PATH FORWARD FOR PROJECT
Complete architectural design and renovation plans
Finalize project underwriting
Discuss with City & EDA any financial participation
Secure bank financing
Equity raise until November 30, 2023
Close on purchase by December 15, 2023
Renovate properties in phased approach
Obtain certificate of occupancy and begin leasing

39
Wrap-Up & Closing

QUESTIONS, COMMENTS, & FEEDBACK

CONTACT US
Brett Reese
breese@reboundpartners.com
Alex Baraniak
abaraniak@reboundpartners.com
Janna Viscomi
jlviscomi@gmail.com

THANK YOU!
40
AGENDA ITEM NO.
VII.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

AGENDA SECTION: ENGINEERING

SUBJECT: Pearl Creek Sanitary Sewer Improvements
1. Approve Pay Application 3-BCM Construction - $16,078.75

SUGGESTED ACTION: The City Engineer will provide an update on the project. See
engineers update and Pay Request 3 attached below.

ATTACHMENTS:
01.1_Peark Creek Sewer Summary.pdf
01.2_Pearl Creek Pay App 3.pdf

41
Pearl Creek Sewer & Gates Ave Utility Improvements

The electrical subcontractor, Coles Electric, has taken advantage of the warmer temperature we’ve experienced so far this
winter. The attached pay estimate includes conduit and a vault structure along Gates Avenue for KMU. Conduit for the lift
station electrical service was also installed within Pine Street.

We recommend payment of the attached pay estimate.

Requested Action:
 Motion approving Pay Estimate #3 to BCM Construction.

H:\KENYON_CI_MN\_General\Council Meetings\2024\01_Jan 24\01.1_Peark Creek Sewer Summary.docx

42
Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.: N/A
Engineer: BOLTON & MENK Engineer's Project No.: 0H1.126462
Contractor: BCM CONSTRUCTION Agency's Project No.: N/A
Project: 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVMENTS
Contract: N/A
Application No.: 3 Application Date: 12/31/2023
Application Period: From 11/4/2023 to 12/31/2023
1. Original Contract Price $ 1,241,494.22
2. Net change by Change Orders $ 14,800.00
3. Current Contract Price (Line 1 + Line 2) $ 1,256,294.22
4. Total Work completed and materials stored to date
(Sum of Column G Lump Sum Total and Column J Unit Price Total) $ 443,542.84
5. Retainage
a. 5% X $ 443,542.84 Work Completed $ 22,177.14
b. 5% X $ - Stored Materials $ -
c. Total Retainage (Line 5.a + Line 5.b) $ 22,177.14
6. Amount eligible to date (Line 4 - Line 5.c) $ 421,365.70
7. Less previous payments $ 405,286.95
8. Amount due this application $ 16,078.75
Contractor's Certification
The undersigned Contractor certifies, to the best of its knowledge, the following:
(1) All previous progress payments received from Owner on account of Work done under the Contract have been applied on
account to discharge Contractor's legitimate obligations incurred in connection with the Work covered by prior Applications for
Payment;
(2) Title to all Work, materials and equipment incorporated in said Work, or otherwise listed in or covered by this Application for
Payment, will pass to Owner at time of payment free and clear of all liens, security interests, and encumbrances (except such as
are covered by a bond acceptable to Owner indemnifying Owner against any such liens, security interest, or encumbrances); and
(3) All the Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective.

Contractor: BCM CONSTRUCTION

Signature: Date:
Name: AARON MILLER Title: PROJECT MANAGER

Recommended by Engineer Approved by Owner

By: By:
Name: DEREK OLINGER, PE Name: MARK VAHLSING
Title: CITY ENGINEER Title: CITY ADMINISTRATOR
Date: Date:

EJCDC C-620 Contractor's Application for Payment
(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 43
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.: N/A
Engineer: BOLTON & MENK Engineer's Project No.: 0H1.126462
Contractor: BCM CONSTRUCTION Agency's Project No.: N/A
Project: 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVMENTS
Contract: N/A

Application No.: 3 Application Period: From 11/04/23 to 12/31/23 Application Date: 12/31/23
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed Work
Completed and % of
Estimated Value of Work Materials Value of Difference fron Bid
Value of Bid Item Quantity Completed to Date Materials Currently Stored to Date Item Estimate
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) Stored (not in G) (H + I) (J / F) (F - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
Original Contract
1 MOBILIZATION 1.00 LS 55,000.00 55,000.00 0.50 27,500.00 0.50 27,500.00 27,500.00 50% 27,500.00
2 CLEARING AND GRUBBING 1.00 LS 13,125.00 13,125.00 0.90 11,812.50 0.90 11,812.50 11,812.50 90% 1,312.50
3 REMOVE RIPRAP (P) 75.00 CY 21.00 1,575.00 - - - - - 1,575.00
4 SITE GRADING 1.00 LS 30,000.00 30,000.00 0.75 22,500.00 0.75 22,500.00 22,500.00 75% 7,500.00
5 GEOGRID TYPE 1 1,130.00 SY 1.75 1,977.50 - - - - - 1,977.50
6 AGGREGATE SURFACING CLASS 2 630.00 TON 25.00 15,750.00 - - - - - 15,750.00
7 PAVEMENT/CURB/DRIVEWAY PATCHING 1.00 LS 26,500.00 26,500.00 0.60 15,900.00 0.60 15,900.00 15,900.00 60% 10,600.00
8 6" CONCRETE DRIVEWAY (REINFORCED) 160.00 SY 114.00 18,240.00 - - - - - 18,240.00
9 BOLLARD 4.00 EA 252.00 1,008.00 - - - - - 1,008.00
10 TRAFFIC CONTROL 1.00 LS 4,500.00 4,500.00 0.50 2,250.00 0.50 2,250.00 2,250.00 50% 2,250.00
11 EROSION & SEDIMENTATION CONTROL 1.00 LS 12,000.00 12,000.00 0.72 8,640.00 0.72 8,640.00 8,640.00 72% 3,360.00
12 STABILIZE & REESTABLISH TURF 1.00 LS 15,000.00 15,000.00 - - - - - 15,000.00
13 EXPLORATORY EXCAVATION 10.00 HOUR 400.00 4,000.00 - - - - - 4,000.00
14 CONSTRUCTION ALLOWANCE 35,000.00 UNIT 1.00 35,000.00 5,361.00 5,361.00 5,361.00 5,361.00 5,361.00 15% 29,639.00
15 HWY 60 MH & PIPE DISCONNECTIONS 1.00 LS 8,000.00 8,000.00 - - - - - 8,000.00
16 REMOVE MANHOLE (SANITARY) 3.00 EACH 1,500.00 4,500.00 1.00 1,500.00 1.00 1,500.00 1,500.00 33% 3,000.00
17 EXCAVATION - ROCK 180.00 CY 84.00 15,120.00 83.00 6,972.00 83.00 6,972.00 6,972.00 46% 8,148.00
18 DEWATERING 1.00 LS 20,000.00 20,000.00 0.50 10,000.00 0.50 10,000.00 10,000.00 50% 10,000.00
19 CONNECT TO EXISTING SANITARY SEWER MAIN 2.00 EACH 875.00 1,750.00 1.00 875.00 1.00 875.00 875.00 50% 875.00
20 CONNECT TO EXISTING SANITARY SEWER SERVICE 2.00 EACH 600.00 1,200.00 1.00 600.00 1.00 600.00 600.00 50% 600.00
21 6" PVC PIPE DRAIN CLEANOUT 3.00 EACH 400.00 1,200.00 - - - - - 1,200.00
22 8" PVC PIPE SEWER (CREEK CROSSING) 157.00 LF 1,400.00 219,800.00 - - - - - 219,800.00
23 8" PVC PIPE SEWER 280.00 LF 90.00 25,200.00 224.00 20,160.00 224.00 20,160.00 20,160.00 80% 5,040.00
24 6" PVC SANITARY SERVICE PIPE 304.00 LF 102.00 31,008.00 12.00 1,224.00 12.00 1,224.00 1,224.00 4% 29,784.00
25 4" FORCE MAIN PIPE 1,274.00 LF 37.00 47,138.00 1,279.00 47,323.00 1,279.00 47,323.00 47,323.00 100% (185.00)
26 4" INSULATION 25.00 SY 65.00 1,625.00 - - - - - 1,625.00
27 CONST DRAINAGE STRUCTURE DES 4007 (MH A) 1.00 EACH 7,000.00 7,000.00 0.90 6,300.00 0.90 6,300.00 6,300.00 90% 700.00
28 CONST DRAINAGE STRUCTURE (MH B - AIR/VAC RELEASE) 1.00 EACH 5,500.00 5,500.00 0.90 4,950.00 0.90 4,950.00 4,950.00 90% 550.00
29 CONST DRAINAGE STRUCTURE DES 4007 (MH C) 1.00 EACH 8,200.00 8,200.00 0.80 6,560.00 0.80 6,560.00 6,560.00 80% 1,640.00
30 CONST DRAINAGE STRUCTURE DES 4007 (MH D) 1.00 EACH 8,000.00 8,000.00 - - - - - 8,000.00
31 REPLACE & ADJUST CASTING 1.00 EACH 1,350.00 1,350.00 - - - - - 1,350.00
32 CONSTRUCT 8" INSIDE DROP (MH C) 1.00 EACH 4,500.00 4,500.00 - - - - - 4,500.00
33 CONSTRUCT 8" INSIDE DROP (MH D) 1.00 EACH 4,500.00 4,500.00 - - - - - 4,500.00
34 SANITARY SEWER TRACER SYSTEM 1.00 LS 3,000.00 3,000.00 0.50 1,500.00 0.50 1,500.00 1,500.00 50% 1,500.00
35 LIFT STATION & VALVE VAULT 1.00 LS 235,090.22 235,090.22 0.40 94,036.09 0.40 94,036.09 94,036.09 40% 141,054.13
36 ELECTRICAL (POWER EXTEN, BACKUP GEN, CONTROL, LIGHT, 1.00 LS 200,000.00 200,000.00 - - 0.03 5,000.00 5,000.00 3% 195,000.00
37 GAS SERVICE ALLOWANCE 8,000.00 UNIT 1.00 8,000.00 - - - - - 8,000.00
38 DISCONNECT EXISTING WATER MAIN 1.00 EACH 500.00 500.00 1.00 500.00 1.00 500.00 500.00 100% -
39 CONNECT TO EXISTING WATER MAIN 5.00 EACH 1,000.00 5,000.00 5.00 5,000.00 5.00 5,000.00 5,000.00 100% -
40 HYDRANT (9' BURY) 1.00 EACH 6,500.00 6,500.00 1.00 6,500.00 1.00 6,500.00 6,500.00 100% -
41 4" GATE VALVE AND BOX 1.00 EACH 2,000.00 2,000.00 1.00 2,000.00 1.00 2,000.00 2,000.00 100% -
42 6" GATE VALVE AND BOX 2.00 EACH 2,250.00 4,500.00 2.00 4,500.00 2.00 4,500.00 4,500.00 100% -
43 8" GATE VALVE AND BOX 1.00 EACH 3,000.00 3,000.00 1.00 3,000.00 1.00 3,000.00 3,000.00 100% -
44 4" WATERMAIN 16.00 LF 100.00 1,600.00 16.00 1,600.00 16.00 1,600.00 1,600.00 100% -
45 6" WATERMAIN 20.00 LF 100.00 2,000.00 27.00 2,700.00 27.00 2,700.00 2,700.00 135% (700.00)
46 8" WATERMAIN 615.00 LF 70.00 43,050.00 641.00 44,870.00 641.00 44,870.00 44,870.00 104% (1,820.00)
47 WATERMAIN FITTINGS 654.00 LB 13.25 8,665.50 593.00 7,857.25 593.00 7,857.25 7,857.25 91% 808.25
48 WATERMAIN TRACER SYSTEM 1.00 LS 2,500.00 2,500.00 1.00 2,500.00 1.00 2,500.00 2,500.00 100% -
49 6" NON-METALLIC CONDUIT 650.00 LF 57.00 37,050.00 611.00 34,827.00 636.00 36,252.00 36,252.00 98% 798.00

EJCDC C-620 Contractor's Application for Payment
Unit Price 1 of 2
(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 44
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.: N/A
Engineer: BOLTON & MENK Engineer's Project No.: 0H1.126462
Contractor: BCM CONSTRUCTION Agency's Project No.: N/A
Project: 2023 PEARL CREEK SANITARY SEWER & GATES AVE UTILITY IMPROVMENTS
Contract: N/A

Change Orders
CO1-1 HAUL & DISPOSE CONCRETE RUBBLE 400.00 C Y 22.00 8,800.00 400.00 8,800.00 400.00 8,800.00 8,800.00 100% -
CO1-2 IMPORT FILL (REPLACING RUBBLE REMOVAL) 400.00 C Y 15.00 6,000.00 400.00 6,000.00 400.00 6,000.00 6,000.00 100% -
- - - -
Change Order Totals $ 14,800.00 $ 14,800.00 100% $ 14,800.00 $ - $ 14,800.00 100% $ -

Original Contract and Change Orders
Project Totals $ 1,256,294.22 $ 426,617.84 35% $ 443,542.84 $ - $ 443,542.84 35% $ 812,751.38

EJCDC C-620 Contractor's Application for Payment
Unit Price 2 of 2
(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 45
AGENDA ITEM NO.
VII.B

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

AGENDA SECTION: ENGINEERING

SUBJECT: Infrastructure Projects Update

SUGGESTED ACTION: The City Engineer will provide an update on the 6th St. Grant
application with MNDOT and the CSAH 12/2nd St. Project. See
engineers summery attached below.

ATTACHMENTS:
05.1_2024 Infrastructure Project Updates.pdf

46
Infrastructure Project Updates

6th Street Reconstruction & Funding Application
The LRIP application for 6th Street was submitted in early December. We will not hear back on the funding awards until
late March or early April.

CSAH 12 Project
In late fall 2023, we prepared some preliminary layouts and cost estimates for the County Rd 12. We met with the
Assistant County Engineer in November to review scope and process. In general, we are anticipating that the next step
will include execution of a partnership agreement with the county. We are hoping this will happen in the next few months.

In order to stay on track for 2025 construction, planning for this project will need to begin by early summer. In the coming
months we’ll be back to request approval to start the feasibility report and the necessary planning for special assessments
and preliminary design.

In addition to CSAH 12, the current infrastructure plan also includes the following for 2025 construction:
 Langford Ave (Pine to Mogren) – Street & Utility Reconstruction
 5th Street (Bullis to Spring) – Street & Utility Reconstruction
 Forest St, Pine St & Pearl Creek – Sanitary Sewer Lining

The 6th Street reconstruction is currently planned for 2028; however, if LRIP funding is awarded, we will shift this project
to 2025 and take the place of the projects listed above.

A project map is provided on the next page.

Requested Action:
 None – Information Only

H:\KENYON_CI_MN\_General\Council Meetings\2024\01_Jan 24\05.1_2024 Infrastructure Project Updates.docx

47
Page: 2

Infrastructure Project Map – as approved August 2022

48
AGENDA ITEM NO.
VII.C

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

AGENDA SECTION: ENGINEERING

SUBJECT: GIS

SUGGESTED ACTION: The City and KMU are currently part of the Goodhue County GIS
mapping system. The City Engineer will discuss the city migrating
to its own GIS mapping system. The initial cost to convert to the
GIS mapping systems would be $14,500. This cost would be shared
between the City and KMU. The cost is included in the 2024 City
and KMU budgets. More specific information is contained in the
summary and proposal from the City Engineer attached below. Staff
would recommend approval of the City Engineers proposal.
MOTION NEEDED

ATTACHMENTS:
02.1_GIS Proposal Summary.pdf
02.2_GIS Proposal.pdf

49
GIS Proposal Summary

Background
Kenyon and KMU have been using an online GIS mapping service to house and organize information on city systems,
such as property/parcel data, water and sewer pipe information, electrical system sizing, etc. To date, this web-based
service has been provided by the county.

For the last several years, we have been discussing some changes to the GIS system with public works and KMU. The
primary change would be a conversion over to a system which gives the City and Bolton & Menk staff full control and
access over data. The change will allow for greater control over our data, timeliness to modifications, and increased
capabilities for city staff.

Proposal Task Summary
The attached proposal provides a detailed explanation of the tasks required to start the new system. To summarize, this
work would involve the City purchasing its own subscriptions to a program called ArcGIS Online, provided by a company
called ESRI. Bolton & Menk will provide technical assistance from our in-house GIS professionals to activate, modify,
and update this system as requested into the future.

Tasks 1-3 of the attached proposal describe the work necessary to activate the new platform, migrate data, and set up for
use by the City. Tasks 4-6 include the creation of some custom features which will make for easier access to record
construction plans, past sewer televising, and some other miscellaneous utility maintenance information.

Costs
Services provided by Bolton & Menk will be completed for $14,500 for this initial conversion. As we have been doing in
years past, future updates to GIS data will be completed as general engineering services or as part of other projects. The
city’s licensing fees from ESRI are estimated at $1,260/year. This is an annual fee and will likely be subject to minor
annual increases over time.

All costs herein were included in the 2024 budget. Costs are shared between the City and KMU.

Requested Action:
 Approve Bolton & Menk Proposal for GIS Web Application Development

H:\KENYON_CI_MN\_General\Council Meetings\2024\01_Jan 24\02.1_GIS Proposal Summary.docx

50
January 4, 2023

Mark Vahlsing
City Administrator
City of Kenyon, MN
709 Second Street
Kenyon, MN 55946

RE: Proposal for GIS Web Application Development

Mr. Vahlsing:

Bolton & Menk is pleased to submit the following proposal for GIS Web Application Development.
Bolton & Menk, Inc. has the experience and qualifications to provide these services to you. We
appreciate your consideration for this role.

Qualifications
Bolton & Menk, Inc. understands the increasing role Geographic Information Systems (GIS) plays in the
management of organizational data. We also understand that now, more than ever, organizations must
work efficiently, cost effectively, and interdependently with each other. We recognize the value and
broad potential GIS offers in helping clients attain these performance levels. When expertly applied, GIS
can be an elegant means of converting creative ideas into tangible tools; tools that are illustrative and
intuitive to the end user, helping them extract, manipulate, and analyze data with relative ease. Bolton
& Menk has successfully completed several GIS projects for clients; our understanding of the details and
real-world applications sets us apart from other firms.

Bolton & Menk’s GIS Department employs a team of Certified GIS Professionals (GISP), Developers and
technicians with a variety of public and private sector GIS experience. Whether clients are interested in
developing new GIS initiatives or are looking to maintain and enhance their existing systems, our
professionals have the expertise and experience to complement clients in meeting their goals. We have
used the industry leading Esri GIS software platform since 1999. This provides us flexibility to integrate
with many business systems and data sources. We currently manage and host web GIS mapping
applications for more than 100 communities and organizations. Bolton & Menk is proud to be an ESRI
business partner.

Project Understanding
We firmly believe that getting GIS data into the hands of city staff helps make sure this data is
continually updated and improved to provide the most accurate information possible. After speaking
with city staff, we understand their goal is to have all city GIS data available to staff in a web-based GIS
platform that can be used, improved, and grow with the city’s needs. Our recommendation includes
gathering all of the available GIS data from current available sources and publishing it in a web-based
GIS application accessible to all city staff.

N:\Proposals\Kenyon\2024 GIS Web Application Development\Kenyon_2024_GISWebApplicationDevelopment.docx

51
Name: Mark Vahlsing
Date: 1/4/23
Page: 2

Bolton & Menk recommends the use of ArcGIS Online as the GIS platform of choice. The ArcGIS Online
cloud-based platform will allow for Bolton & Menk to manage the city’s GIS data and applications. Our
GIS staff will develop a fully web-based GIS application on the ArcGIS Online platform for city staff
access. Our project approach will outline tasks for adopting ArcGIS Online from setup to user
connections.

Project Approach

Task 1 – ArcGIS Online Implementation
Bolton & Menk will deploy the city’s ArcGIS Online Organization and set it up for initial use. Within this
task, we will customize the deployment and initiate the setup of the platform. Our GIS staff will initiate
the creation of organizational groups in which content and apps can be managed.

The city will be required to purchase an annual subscription to the ArcGIS Online platform. ESRI’s ArcGIS
Online licensing is based on “Named Users” and will require one license for each person who logs into
secured maps within the ArcGIS Online Organization. ESRI’s initial cost will be $765/year for an
administrative account, $385/year for a Mobile Worker account, and $110/year for a Viewer account
with the ability to add additional users as needed. Please note that these costs are not included in the
totals provided at the end of this proposal.

All associated ArcGIS Online licensing fees will be paid directly to ESRI based on their customer
agreement with the City of Kenyon.

Task 2 – Data Acquisition & Migration
Bolton & Menk will review and inventory all GIS data currently available to the City of Kenyon. We will
work with other agencies as necessary to compile this information for use in the web application. Other
existing publicly available information will be acquired and made available through ArcGIS Online and
the proposed mapping application.

All existing GIS data layers that are provided and meet the system requirements will be reviewed and
migrated to an ESRI compliant format. This provides a standard format that can easily be updated and
shared amongst all ESRI applications and converted to CAD applications if necessary.

Task 3 – ArcGIS Online Viewer Application Development
Bolton & Menk GIS staff will assist the City of Kenyon to operationalize its GIS mapping by building a
web-based mapping application for use on any device. Our GIS staff will create an ArcGIS Web App
Builder application for use by city staff. This web-based application will be configured with out-of-the-
box components that will allow for map and data sharing. This web-based mapping application will
contain access to all GIS layers created in this project.

Task 4 – Upload Record Plans
Bolton & Menk staff will incorporate record plans into the city’s web-based GIS mapping application.
These record plans will be mapped using polygons representing the boundaries of the project. Record
plans will be linked to these boundaries so they are available quickly and easily over the web via any
device with a web browser and an internet connection. The time and costs associated costs for

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52
Name: Mark Vahlsing
Date: 1/4/23
Page: 3

uploading record plans are based on the number of plans currently on file with Bolton & Menk. (≈40
plans)

Task 5 – Link Sewer Televising Videos
Bolton & Menk staff will compile sewer televising videos for inclusion in the city’s web-based GIS
mapping application. These videos will be uploaded to the web via YouTube and linked to their
corresponding pipe segments. This will allow the videos to be available quickly and easily over the web
via any device with a web browser and an internet connection. The time and associated costs for
uploading these historical videos will depend heavily upon the video format and organization in file
naming or labeling. As such, video uploads will be completed up to the budgeted amount provided in
this proposal.

Task 6 – Implement Editing Widget
Bolton & Menk GIS staff will configure an editing widget within the city’s web-based GIS mapping
application to allow for minimal editing of attribute data. This will not provide the ability to edit any
geometry. Simple updates to fields such as jetting dates for sewer pipes or flushing dates for hydrants
will be possible.

Project Schedule
With initial and consistent emphasis on completing project tasks and commitment of the necessary
staff, Bolton & Menk is prepared to deliver this work in a timely manner to the City of Kenyon. The
expected time frame for completing the base project tasks will be two months from project initiation.

Project Cost
The following table demonstrates the breakdown of tasks, hours, and costs for services to be provided
on this project. Any additional tasks requested by the City of Kenyon and outside the scope of this scope
and fee letter will be performed at our regular hourly fee schedule rates, to be updated annually in
consultation with the city. The total estimated project cost for Bolton & Menk to provide base project
tasks to the City of Kenyon as outlined in this document is approximately $14,500.

PROJECT TASK - DETAILED COST ESTIMATE
CLIENT: City of Kenyon
PROJECT: GIS Web Application Development

TASK NO. WORK TASK DESCRIPTION Total Cost

1.0 ArcGIS Online Implementation $990
2.0 Data Acquisition & Migration $2,080
3.0 ArcGIS Online Viewer Application Development $3,900
4.0 Upload Record Plans $2,070
5.0 Link Sewer Televising Videos $4,000
6.0 Implement Editing Widget $1,460

TOTAL FEE $14,500

N:\Proposals\Kenyon\2024 GIS Web Application Development\Kenyon_2024_GISWebApplicationDevelopment.docx

53
Name: Mark Vahlsing
Date: 1/4/23
Page: 4

We appreciate the opportunity to provide you with this proposal for services. If you have any questions
or comments regarding this proposal, please feel free to call me at 612-242-0962.

Sincerely,
Bolton & Menk, Inc.

David C. Malm, GISP
Associate | GIS Project Manager

Cc: Derek P. Olinger, P.E., Principal Engineer

N:\Proposals\Kenyon\2024 GIS Web Application Development\Kenyon_2024_GISWebApplicationDevelopment.docx

54
AGENDA ITEM NO.
VII.D

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

AGENDA SECTION: ENGINEERING

SUBJECT: Approve Increase to General Engineering Rates

SUGGESTED ACTION: Bolton and Menk is requesting an increase to their hourly general
fees. The general fees cover the general items such as plan reviews,
and assistance operational items. The current hourly fee for general
work is $80 an hour. They are requesting a $10 an hour increase to
$90 an hour. Further information is attached below. MOTION
NEEDED

ATTACHMENTS:
03.1_General Engineering Rates Letter.pdf

55
January 5th, 2024

Mayor and City Council
City of Kenyon, MN

RE: General Engineering Rates

Mayor and City Council:

I am writing in reference to rates for general engineering services. These services generally consist of the
common, day-to-day tasks which require engineering services. This can include but is not limited to plan
reviews, assistance at the wastewater plant, cost estimates, and some smaller projects.

Services for general engineering are billed at a rate which is reduced from our standard hourly rates. For
the last several years, the general engineering rate has been billed at $80/hr. Beginning in 2024, we are
requesting an adjustment to $90/hr. We will continue to attend regular city council and commission
meetings at no charge.

I really enjoy serving as Kenyon’s City Engineer and working closely with council and staff. I’m proud to
be part of the team here in town and I’d like to thank you all for the continued opportunity to provide
engineering services moving forward.

Sincerely,
Bolton & Menk, Inc.

Derek Olinger, P.E.
Kenyon City Engineer

H:\KENYON_CI_MN\_General\Council Meetings\2024\01_Jan 24\03.1_General Engineering Rates Letter.docx

56
AGENDA ITEM NO.
VII.E

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

AGENDA SECTION: ENGINEERING

SUBJECT: 2024 Streets Seal Coating

SUGGESTED ACTION: The City Engineer will review the streets are due for seal coating this
year. The engineer is requesting Council approval to seek quotes for
seal coating. Further information is contained in the engineer's memo
attached below.
MOTION NEEDED

ATTACHMENTS:
04.1_2024 Seal Coating Summary.pdf

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2024 Seal Coating Project

Background
Proactive pavement management is a top priority in the City’s infrastructure management plan. Effective pavement
maintenance focuses efforts on the newer and better conditioned streets first, to ensure that those good conditions are
preserved for the future.

For 2024, we are proposing to seal the streets which were paved last year. To do this, another round of asphalt rejuvenator
will be used, exactly as was done last year. This product is most effective when completed in the first year after paving.

This year’s budget for street maintenance was ~$45,000. The 2024 work is estimated at $20,000-$30,000. Unused funds
are planned for use in 2025 as part of a much larger chip sealing project.

We are requesting council’s approval to move forward with collecting quotes for the 2024 work.

Requested Action:
 Motion directing city engineer and staff to solicit quotes for the 2024 street seal coating project.

H:\KENYON_CI_MN\_General\Council Meetings\2024\01_Jan 24\04.1_2024 Seal Coating Summary.docx

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AGENDA ITEM NO.
VIII.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Legal

ITEM TYPE: Legal

AGENDA SECTION: LEGAL

SUBJECT: 2024 Appointments and Designations

SUGGESTED ACTION: 1. Library Board – 3 Year Term
1. Bev Emerson
2. Cathy Whipple
2. Planning Commission – 2 Year Term
1. Jerry Barrett
2. Dennis Wickum
3. John Cambronne
3. Historic Preservation Commission (HPC) – 3 Year Term
1. Kevin Anderson
4. Park & Recreation
1. Melissa Bartel
2. Tedd Pederson
5. Appointments
1. Acting Mayor – Mary Bailey
2. Legal Newspaper – Kenyon Leader
3. Depository – Security State Bank
4. City Attorney – Scott Riggs, Kennedy & Graven Chartered
5. Prosecuting Attorney – David Jacobsen, Jacobsen Law Firm
6. City Engineer – Derek Olinger, Bolton & Menk
7. City Auditor – Abdo Eich and Meyers
8. Financial Consultant – George Eilertson - Northland
Securities
9. Investments – As Allowed Per Minnesota Statutes
10. Deputy Clerk – Holli Gudknecht
11. Weed Inspector – Doug Henke
12. Audit Committee –Doug Henke, Molly Ryan, Whitney
Kyllo, Mark Vahlsing
13. Personnel Committee – Doug Henke, Molly Ryan Mark
Vahlsing
14. Liquor Committee – Doug Henke, Lee Sjolander, Mark

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Vahlsing
15. Kenyon Fire Relief Association – Doug Henke and Mark
Vahlsing
MOTION NEEDED

ATTACHMENTS:

60
AGENDA ITEM NO.
VIII.B

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Legal

AGENDA SECTION: LEGAL

SUBJECT: Resolution 2024-01: Establishing License Fees and Compensation

SUGGESTED ACTION: See attached resolution setting fees for 2024. Please note that a
number of fees are showing proposed increases. The proposed
amount is shown in italics. The old amount is shown to the right of
each increased fee. MOTION NEEDED

ATTACHMENTS:
Resolution 2024-01 Establish License Fees and Compensation.docx

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RESOLUTION 2024-01

A RESOLUTION TO ESTABLISH LICENSE FEES AND COMPENSATION

WHEREAS, Section 1000.03 of the Kenyon City Code provides that license fees for licenses
and compensation not specifically set by the Code, shall be fixed and determined by resolution of the
City Council.

NOW, THEREFORE BE IT RESOLVED, that the following license fees and compensation
shall be effective on or after January 9, 2024.

License Fee
Tobacco $75.00 $60 (2023 fee)
Liquor On-Sale $1,100.00
Liquor On-Sale Sunday $300.00 $200
On-Sale 3.2 Beer $600.00 $500
Wine – On-Sale $500.00
Special On-Sale 3.2 Beer (Temporary) $45.00/day $25
Off-Sale 3.2 Beer $100.00
Club On-Sale $300.00
Liquor License Training Verification Fee $100.00
Caterer’s Permit (Special Event Fee) $350.00 $250
Dance $40.00 $25
Garbage $125.00 $100
Recycling $100.00
Peddlers, Canvassers, Transient Merchants $125.00 Investigation
$125.00 Daily
$500.00 Annual
Mobile Merchant $125.00 Initial Application
$75.00 Annual
Sidewalk Obstruction $25.00 -$20.00 License
$20.00 Inspection
Golf Cart Registration $40.00 $30.00
Golf Cart Annual Renewal $20.00 $10.00
Rental Unit $30.00 Every 3 Years
$10.00 Per - Additional Unit
Fee/Not to Exceed $100

Animal Control Fee
Cat/Dog License, Spayed/Neutered $5.00
Cat/Dog License, Not Spayed/Neutered $10.00
Penalty after May 1 $2.00
Duplicate License $1.00
Animal at Large pick-up $40.00

Public Safety Fee
Police or Fire Report $35.00 $25.00
Disorderly Properties Service Call $200.00 $150.00
**Fire Call $1000.00
**Extraordinary Time / Equipment See Attachment B
Fire Dept. / First Responder Repeated Non-Fire or Non- Medical Calls
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(More than 3 calls in 12 months) $150.00 $100.00

Planning and Zoning Fee
Conditional Use Permit $175.00 $150.00
Rezoning $175.00 $150.00
Variance $175.00 $150.00
Parcel Split or Lot Combination $300.00 $250 (plus Recording)
Street Excavation and Right-of-Way Permit $300.00 $200
Excavation Permit per lineal foot $.40 / lineal ft. $30
Obstruction Permit (roll-off, dumpster) $50 per day over 8 hrs. $25
Demolition Permit $30.00 Residential
$60.00 Commercial
Sign Permit $40.00 $30.00
Moving Permit $100.00 $50.00
Burning Permit $20.00
Building Permit Per U.B.C.

General Government Charges Fee
Comprehensive Plan $75.00/Book
City Code $150.00/Book
Downtown Sidewalk Snow Removal $.07/Lineal Foot $.06
Bad Check Charge $45.00 $35
Copies $.25/Page
Notary $5.00 $1.00
Video Copy $40.00 $25
Fax Use Incoming: $.50/Page
Outgoing: $1.00/ 1st Page,
$.25 subsequent pages
Special Council Meeting or Planning Committee $500.00
Meeting on behalf of one individual
Lawn Mowing due to violation $125.00 per occurrence.

General Government Compensation Fee
Mileage IRS Rate

Park and Recreation - Depot Park Fee
Deposit $50.00
Monday through Friday Rent $60.00 $40.00
Saturday & Sunday Rent $80.00 $50.00

Utility Costs Fee
Sanitary Sewer See Attachment A
Storm Sewer Maintenance See Attachment A

Adopted by the City Council of the City of Kenyon on this 9th day of January,2024.

ATTEST:

___________________________ ______________________________
Mark Vahlsing, City Administrator Douglas Henke, Mayor
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ATTACHMENT A

SANITARY SEWER (effective January 2024 billing)

Residential and commercial sanitary sewer rates
Sewer per M $7.40
Base Rate
1" service line or less $ 26.25 per month
1.5" service line $ 84.07 per month
2" service line $ 125.80 per month
3" service line or less $ 223.78 per month

Sewer Connection Fee $900
for new homes

Approved 1-14-20
(used to pay for maintenance of
storm sewer mains, outlets &
STORM SEWER MAINTENANCE FEE culverts)

Residential $9.00 per parcel per month
Non- Residential $18.00 per parcel per month
Multi-Family Res. $4.5 multiplied by units

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ATTACHMENT B

EXTRA FEES/CHARGES

Fire Department*

Equipment Fee per hour

Engine $190 $170

Tenders $180 $160

Grass Rig/Mini Pumper/Equip. $140 $120

Supplies: (All supplies that are incurred will be billed out at the cost incurred)

Class A Foam $150 per pail

Public Works Department*

Equipment Fee per hour

Dump Truck $100.00
Sewer Jetter Truck $250.00
Skid Loader $100.00
Front-end Loader $175.00
Laborer $75.00 (per person)

*Damaged equipment shall billed out based on replacement costs.

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AGENDA ITEM NO.
VIII.C

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Legal

ITEM TYPE: Legal

AGENDA SECTION: LEGAL

SUBJECT: Annual Licenses

SUGGESTED ACTION: Approval of following licenses

1. Flom Disposal Inc. (Residential/Commercial, Temporary roll-off
dumpster)
2. Flom Disposal Inc. (Residential/Commercial Recycling)
3. Waste Management (Commercial, Temporary roll-off dumpster)
4. Waste Management (Commercial Recycling)
5. Veit (Temporary roll-off dumpster)
6. LRS of Minn (Temporary roll-off dumpster)
7. Goodhue County Public Works (Recycling)
8. Kenyon Ace Hardware (sidewalk)
9. Kenyon VFW Post 141(Sidewalk)
10. Mary’s Rustic Rose (Sidewalk)
11. Mark Lenway (Sidewalk)
12. D & S Banner, Sign & Print (Sidewalk)
13. Angie’s (Sidewalk)
14. Taco Express (Sidewalk)
15. Kenyon VFW Post 141(Dance)
16. Che Che’s Lunchera (Mobile Merchant)
17. Taco Express (Mobile Merchant) MOTION NEEDED

ATTACHMENTS:

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AGENDA ITEM NO.
VIII.D

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Legal

ITEM TYPE: Legal

AGENDA SECTION: LEGAL

SUBJECT: Kennedy & Graven 2024 Rates for Legal Services

SUGGESTED ACTION: Kennedy & Graven is proposing an increase to 2024 rates for legal services:
$196.00 per hour ($188 in 2023) for general civil and prosecution matters,
$231.00 per hour ($221 in 2023) for litigation, general city development
projects, real estate, cable and telecommunication related matters, and
employment matters, $276.00 per hour ($265 in 2023) for pass through
matters including developer and project costs which the city is to be
reimbursed. See attached letter from City Attorney below. MOTION
NEEDED

ATTACHMENTS:
City_of_Kenyon_2024_Legal_Rate_Letter.pdf

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Kennedy Fifth Street Towers
150 South Fifth Street, Suite 700
& Minneapolis MN 55402-1299

Graven (612) 337-9300 telephone
(612) 337-9310 fax
C H A R T E R E D http://www.kennedy-graven.com
Affirmative Action, Equal Opportunity Employer

SCOTT J. RIGGS
Attorney at Law
Direct Dial (612) 337-9260
email: sriggs@kennedy-graven.com

December 21, 2023
VIA EMAIL
City of Kenyon City Council
c/o Mark Vahlsing
City Administrator
City of Kenyon
709 Second Street
Kenyon, MN 55946

RE: 2024 Rates for Legal Services

Dear Honorable Mayor and Council Members:

I am writing to thank you for allowing Kennedy & Graven, Chartered the opportunity to serve as legal
counsel for the City of Kenyon and in reference to proposed rates for legal services for the upcoming year.

For 2024, I propose that legal rates for the City of Kenyon would be as follows: $196.00 per hour for general
civil and prosecution matters, $231.00 per hour for litigation, general city development projects, real estate,
cable and telecommunication related matters, and employment matters, and $276.00 per hour for
reimbursable/developer pass through matters (e.g., projects for which the City is to be reimbursed for legal
costs by a developer). Rates for bond work would be charged in accordance with our regular governmental
rates for this type of work. These are the same rates that I will be generally charging in 2024 to other clients
that I serve as the city attorney.

I have thoroughly enjoyed both being involved in the growth and development of the City and working with
the city council and staff members. Thank you once again for allowing Kennedy & Graven, Chartered to
continue to serve the City as legal counsel.

Sincerely,

KENNEDY & GRAVEN, CHARTERED

Scott J. Riggs
Kenyon City Attorney

SJR:jms

DOCSOPEN\KE200\1\917542.v2-11/22/23
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AGENDA ITEM NO. X.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Municipal Liquor

ITEM TYPE: Old Business

AGENDA SECTION: OLD BUSINESS

SUBJECT: Muni Roof and Flooring Replacement

SUGGESTED ACTION: Muni roof and flooring replacement. A second quote for flooring has
been received. Both quotes are close in price. Staff is requesting
Council approval of a flooring quote. We would like to continue to
secure additional quotes for the roofing with the intention of getting
Council approval in February. I will be working on getting approval
financing the improvements with KMU. A copy of the flooring
quotes gathered so far are attached. Both quotes reflect removal of
the existing tile and installation of glued down sealed vinyl plank that
does not require waxing.

Hiller Flooring Hamernicks
Flooring
$25,364.60 $22,225.86

Based on the quotes Hamernicks has better pricing and staff would
recommend going with that quote. MOTION NEEDED.

ATTACHMENTS:
Kenyon Muniflooring quoteHammrnicks.pdf 1-24.pdf
Kenyon Muniflooring labor quotePictureperfectflr.pdf 1-24.pdf
Kenyon Muni flooring quote Hiller.pdf

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TED'S DEPARTMENT
1381 NORTH RICE STREET
ST. PAUL, MN 55117
651-487-3211
Quote Date: 1/4/2024
Salesperson: CHRISTINA FRICKE
Sold To: Ship To:
VAHLSING, MARK P.O.
709 2ND STREET 507 SHOREVIEW PARK ROAD
KENYON, MN 55946 SHOREVIEW, MN 55126
507-789-6415
Quote Number: ES401690
Description Quantity
M700 PLUS - ADHESIVE - 4GALLON: 4GAL 3 EA
1000 SF PER PAI
CB-22 4"X4' 1/8" VINYL COVE: TO BE 480 FT
DETERMINED
BARRALI II - VINYL TILE - 7.72 X 51.97: TO 2160 SF
BE DETERMINED
FREIGHT: FREIGHT 1 EA
Sales tax
Total: $7,480.86
Balance Due:
$7,480.86

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Picture Perfect Floors
2525 Nevada Ave N Ste 303
Golden Valley, MN 55427

Contract

Contract # 01032023-1
Project
City of Kenyon Muni Mark 507 789-5575 Date1-3-23
645 Second St Kenyon MN 55946

Description QTY RATE AMOUNT

Install Glue Down LVT
Install Vinyl Base
Provide and Install Transitions
Demo and Dispose of Existing VCT
Remove Toilet

Included:
Minor Floor Prep
Caulking

Excluded:
Overtime Hours
Major Unforeseen Subfloor Issues (Time and Materials)
Furniture Moving (3000.00 additional)

TOTAL 11,745.00

Accepted By Date

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AGENDA ITEM NO. XI.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: New Business

AGENDA SECTION: NEW BUSINESS

SUBJECT: Resolution 2024-02: A Resolution Authorizing Acceptance of
2022 Donations

SUGGESTED ACTION: The Council is required to adopt a resolution annually accepting
donations. See resolution attached below.
MOTION NEEDED

ATTACHMENTS:
Resolution 2024-02 Authorizing Acceptance of 2022 Donations.docx

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RESOLUTION 2024-02

CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA

A RESOLUTION AUTHORIZING ACCEPTANCE OF 2023 DONATIONS

WHEREAS, the City of Kenyon received various donations in the amount of $78,672.57
in 2023; and

NOW THEREFORE, BE IT RESOLVED, that the City of Kenyon authorizes the
acceptance of 2023 donations in the amount of $78,672.57.

Adopted by the Kenyon City Council on this 9th day of January 2024.

Douglas Henke
Mayor
ATTEST:

Mark R. Vahlsing
City Administrator

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AGENDA ITEM NO. XI.B

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Contracts

AGENDA SECTION: NEW BUSINESS

SUBJECT: CEDA CONTRACT SERVICES

SUGGESTED ACTION: Renew Contract for Economic/Community Development staffing
through CEDA - Chris Giesen VP. CEDA

CEDA has provided contracted Economic Development staffing
since June 2022. The contracted staff have worked on a number of
projects with the EDA including the downtown and business park.
Staff would recommend the City continue contracting 8 hours a week
with a CEDA. Zack Bubany has been serving as the city staff
person. A copy of the contract is attached below. The contract was
discounted 25% for one quarter to reflect reduced staffing after Cora
Boelman left her position with CEDA. Chris Giesen will attend the
meeting to discuss the program further. MOTION NEEDED.

ATTACHMENTS:
CEDAKenyon2024Contract.docx

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Contract for Professional Services
This contract is made and entered into by Community and Economic Development Associates, a Minnesota
nonprofit corporation exempt from income tax as an organization operated for charitable purposes within
the meaning of Internal Revenue Code section 501(c)(3), hereafter “CEDA”, and the Economic
Development Authority of the City of Kenyon, an agency or affiliate of a political subdivision of the State
of Minnesota, hereafter “the Authority”, to define the terms by which CEDA shall provide technical and
management expertise services to the Authority.
I. Agreement scope and purpose. The Authority hereby retains CEDA to perform to its benefit the
services described in paragraph II, to the end of the Authority more effectively accomplishing:
* Prevention and/or combat of community and neighborhood deterioration and revitalization of
deteriorated neighborhoods;
* Attraction and/or retention of businesses that would not, but for the assistance provided,
choose to locate/remain in the area;
* The securing of businesses who will be required to provide jobs for unemployed and
underemployed residents of the community; and
* The expansion of business opportunities for minority entrepreneurs and other entrepreneurs
that are viable business opportunities to enhance the well being of the community and/or for
businesses who are unable to obtain financing from conventional sources
II. Services to be provided by CEDA. CEDA agrees to provide technical and management expertise in
the form of staff and materials to the Authority. Staff’s services, and associated materials, will be
provided in order to facilitate and support the accomplishment of the Authority’s undertakings to the ends
described in the preceding paragraph. CEDA’s staff and materials shall be made available toward efforts
in the following specific arenas of the Authority’s needs and operations:
* Accessing of grantor funding for the Authority’s economic development programming
* Providing loan packaging services for the Authority’s business assistance programs
* Administering local, regional and state revolving loan funds, if appropriate
* Implementing and/or drafting the Authority’s Economic Development Annual Work Plan(s)
* Planning, facilitating, and/or directly conducting the Authority’s community and business
development projects, including as necessary, staffing those projects as directed by the
Authority in consultation with CEDA. These efforts shall include (but are not limited to),
the following:
* seeking city and county involvement
* developing relationships and partnerships to enhance the Authority’s goals
* preparing economic development guidelines
* promoting the use of local assets to support and promote value-added processes and
unique based businesses
* Assisting with local surveys related to business and industry, community, and land and
buildings
* Assisting with the Authority’s economic development marketing, business outreach, and
business expansion and retention efforts
* Coordinating and hosting forums in which the Authority’s economic development
programming are open for the public’s review
III. Obligations of the Authority.
A. The Authority shall reimburse CEDA for staff time provided at the not to exceed rate of $29,975.
This is based on an average of eight hours per week. This rate will be prorated accordingly if the start
date of this Agreement is modified by mutual agreement of CEDA and the Authority.

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B. Materials, conferences, meetings and the like shall be paid for on a unit basis agreed to by the
Authority in writing prior to the provision of the materials.
C. The Authority shall be responsible to provide payment to CEDA within 30 days of the submission
of each invoice provided by CEDA.
D. A discount of $1,682.19 will be deducted from the first quarter 2024 invoice to provide a 60%
discount on 5 weeks of service in fourth quarter 2023.
IV. Obligations of CEDA.
A. CEDA is performing services as an independent contractor. Accordingly, the provision of staff by
CEDA to provide technical and management expertise to the Authority under this Agreement neither
creates a release of CEDA staff to employment at the Authority nor makes such staff subject to
supervision by the Authority.
B. CEDA has no authority or right, express or implied, to assume or create any obligation or
responsibility on behalf of the Authority or to bind the Authority in any manner. CEDA will not
represent the contrary, either expressly or implicitly, to anyone.
C. CEDA is solely responsible for payroll tax responsibilities related to each of its staff persons
whose time is provided under this Agreement and shall acquire and maintain necessary insurance
related to their efforts under this Agreement, including carrying workers’ compensation insurance
coverage at all times. CEDA shall supply the Authority with certification of such coverage.
D. CEDA shall be responsible to invoice the Authority for staff time and materials provided under
this Agreement on a periodic basis, no less frequently than quarterly.
V. Period/Termination. The term of this Agreement is six months, commencing January 1, 2024 and
ending December 31, 2024. The Agreement may be terminated earlier in its term upon 30 days’ written
notice by CEDA to the Authority or by the Authority to CEDA. Upon termination, the Authority shall be
liable to pay CEDA for services performed up to $29,975 plus materials and any discounts provided under
this Agreement prior to and through the effective date of termination, unless otherwise specifically agreed
by the parties in writing.
VI. Construction of Agreement. This Agreement is to be performed and construed under Minnesota
law, and supersedes any and all prior agreements and contains the entire agreement of the parties.

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CITY OF KENYON

By __________________________

Its _________________________

Date _______________________

By __________________________

Its City Administrator

Date ________________________

COMMUNITY AND ECONOMIC DEVELOPMENT ASSOCIATES

Its CEO/President

Date October 17, 2023

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AGENDA ITEM NO. XI.C

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: New Business

AGENDA SECTION: NEW BUSINESS

SUBJECT: Premises Gambling Permit for Kenyon Snowdrifters
- Approve Resolution 2024-03: Approving the Lawful
Gambling Premises Permit Application for the Kenyon
Snowdrifters to Conduct Lawful Gambling at the Kenyon
VFW Conrad Osthum Post #141 Located at 601 2nd Street,
Kenyon, MN 55946

SUGGESTED ACTION: The Kenyon Snowdrifters is seeking approval to conduct charitable
gambling at the VFW. The license would require Council approval.
A copy of the permit and the resolution are attached below. MOTION
NEEDED

ATTACHMENTS:
Resolution 2024-03 Approving_Premises_Permit.docx
DOC010524.pdf

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RESOLUTION NO. 2024-03

CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA

A RESOLUTION APPROVING THE LAWFUL GAMBLING PREMISES PERMIT
APPLICATION FOR THE KENYON SNOWDRIFTERS TO CONDUCT LAWFUL
GAMBLING AT THE KENYON VFW CONRAD OSTHUM POST #141 LOCATED AT
601 2ND STREET, KENYON, MN 55946

WHEREAS, The Kenyon Snowdrifters are submitting an application to the Minnesota
Gambling Control Board for approval of a Premises Permit application to conduct lawful
charitable gambling at the Kenyon VFW Conrad Osthum Post #141, 601 2nd Street, Kenyon, MN
55946; and

WHEREAS, the gambling premises is located within the city limits of Kenyon,
Minnesota; and

WHEREAS, Kenyon Snowdrifters are a lawful gambling organization within the city; and

WHEREAS, Kenyon Snowdrifters will be responsible for operating and managing the
lawful gambling activity on the premises and will comply with all applicable requirements of city
code and state statutes.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Kenyon,
Minnesota that, pursuant to Minnesota Statutes, section 349.213, subd. 2(1), the City Council does
hereby approve the issuance of a Premises Permit to Kenyon Snowdrifters to conduct lawful
charitable gambling activities at the Kenyon VFW Conrad Osthum Post #141, 601 2nd Street,
Kenyon, MN 55946.

Adopted this 9th day of January, 2024.

_________________________________
Douglas Henke, Mayor
ATTEST:

________________________________
Mark R. Vahlsing, City Administrator

1
KE200\1\912238.v1

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AGENDA ITEM NO. XI.D

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: New Business

AGENDA SECTION: NEW BUSINESS

SUBJECT: Set Council Work Session Date to Review Salary Compensation
Study

SUGGESTED ACTION: The preliminary Compensation Study has been completed. We
would like to schedule a work session sometime the last wo weeks of
January to have Bjorkland Compensation review the study with the
Council and department heads.
MOTION NEEDED

ATTACHMENTS:

85
AGENDA ITEM NO. XI.E

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: New Business

AGENDA SECTION: NEW BUSINESS

SUBJECT: Resolution 2024- Resolution approving Preliminary and Final Plat
Sunrise 2nd Addition.

SUGGESTED ACTION:
Greg and Angela Mills are seeking Council approval of the
Preliminary and Final Plat of Sunrise 2nd Addition. The plat would
combine two contiguous lots located in different plats. Normally this
type of action is accomplished by a minor lot combination. But since
the lots are located in different plats a replat is required.

The Planning Commission held a public hearing on January 4. Since
this is a minor lot combination located in 2 plats the preliminary and
final plat are being combined into one step. The City Engineer and
Attorney have reviewed the plat and their comments have been
addressed. The Planning Commission has recommended Council
approval of the plat. The plat meets City zoning. The City Engineer
will review the plat further at the public hearing. Further information
on the proposed plat and the resolution are attached below.

MOTION NEEDED

ATTACHMENTS:
Sunrise 2nd Addition Comments.pdf
Resolution 2024-04 Approving_preliminary_and_final_plat Sunrise 2nd Addn.doc

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RESOLUTION NO. 2024-04

CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA

A RESOLUTION APPROVING PRELIMINARY AND
FINAL PLAT OF SUNRISE 2ND ADDITION, A
SUBDIVISION OF LAND WITHIN THE CITY OF KENYON,
GOODHUE COUNTY, MINNESOTA.

WHEREAS, the City of Kenyon (the “City”) has received a preliminary and a final plat
entitled SUNRISE 2ND ADDITION from Greg B. and Angela R. Mills for the City of Kenyon,
Minnesota (“Subdivider”) and has considered the same pursuant to Chapter 565 of the Kenyon City
Code; and

WHEREAS, the plat Sunrise 2nd Addition includes the following described parcel of land:
See the attached Exhibit A (hereinafter referred to as the “Property”); and

WHEREAS, the Subdivider has represented that it has clear title ownership of the Property;
and

WHEREAS, the City has enacted Kenyon City Code Chapter 565 as to subdivision
regulations and the criteria for the granting of plats in the City; and

WHEREAS, this matter was reviewed and a public hearing was held by the Planning
Commission at its meeting on January 4, 2024; and

WHEREAS, the public hearing and notice requirements of Minn. Stat. § 462.358, Subd. 3b
have been fulfilled and satisfied by the City; and

WHEREAS, public comments were received as to the Subdivider’s platting request; and

WHEREAS, the written materials, including platting maps concerning the Property, and
written correspondence from the Subdivider, were considered and reviewed by the Planning
Commission; and

WHEREAS, the City Attorney, City Engineer and Planning Commission have reviewed the
preliminary and final plat and found both to be satisfactory, subject to the conditions and
requirements contained in this Resolution; and

WHEREAS, the above-described Subdivider will cause to be prepared a final plat to be in
substantial conformity to Chapter 565 of the Kenyon City Code and the requirements contained in
this Resolution; and

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WHEREAS, the Planning Commission recommends approval of the preliminary and final
plat of Sunrise 2nd Addition.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Kenyon,
Minnesota, that the preliminary and final plat and supplementary data and documents as required by
Chapter 565 of the Kenyon City Code and as submitted by the Subdivider, are found to be
consistent with and in conformity with Chapter 565 of the Kenyon City Code and Minnesota
Statutes, subject to completion of the following conditions:

1. Satisfaction of City of Kenyon’s City Code requirements including, but not
limited to, submission of current title work for the Property and supporting
documents, etc.;

2. Preparation of a final plat that satisfies all required formalities pursuant to
the Kenyon City Code and state statute;

3. Satisfactory completion of any and all requirements after final review of the
final plat by the City Attorney and City Engineer;

4. The approval contemplated herein is subject to the condition that the
Subdivider must pay for all costs incurred by the City for review and
inspection, including preparation and review of the preliminary and final plat
by technical assistants and the costs incurred by the City Attorney and City
Engineer, as well as other costs of a similar nature; and

Approved this 9th day of January, 2024.

_________________________________________
Douglas Henke, Mayor

ATTEST:

___________________________________
Mark R. Vahlsing, City Administrator

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EXHIBIT A

LEGAL DESCRIPTION

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A-2
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AGENDA ITEM NO. XI.F

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: New Business

AGENDA SECTION: NEW BUSINESS

SUBJECT: Request to amend Zoning Ordinance to allow apartments on the
rear ½ of the first floor of buildings in the C-1 district. –Zoning
Ordinance Section 515.15 Subd. 3 a) - Stephanie Brezina

SUGGESTED ACTION:
Stephanie Brezina who owns the building located at 634 2nd St. is
requesting consideration for the Zoning Ordinance to be amended to
allow rental units in the rear ½ of the first floor of buildings located
in the C-1 zoning district. A diagram of the proposed layout of her
building is attached. Currently rentals are only allowed on as a
conditional use on the second floor of buildings in the C-1 zoning
district.

Since this is a proposed zoning Ordinance amendment, the planning
commission made a recommendation supporting amending the
ordinance. If the Council is interested in adding this to City Code the
City Attorney should be directed to prepare draft ordinance language.
The Council would then review and consider the draft ordinance for
adoption at a subsequent meeting.

ATTACHMENTS:
DOC010524-002.pdf

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AGENDA ITEM NO.
XII.A

Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT

DATE: January 9, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Miscellaneous

AGENDA SECTION: F.Y.I. - Department Updates

SUBJECT: FYI

SUGGESTED ACTION: FYI - Department Updates. See attached below.

ATTACHMENTS:
1-9-24 FYI.pdf

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