Kenyon City Council, December 3, 2024

Mayor Henke called the special meeting to order at 6:00 pm.

2025 Fire Contract Meeting with Townships The purpose of the meeting was to review the proposed 2025 contracts for fire protection with the six townships in the Kenyon Fire Department service area. The contracts were based on a breakdown of 51% city and 49% township of the operating budget. Each township's portion of the budget was split based on the number of sections covered by the Fire Department.

Fire Chief Ehrich summarized what made up the 2025 budget and answered questions from the Township board members. The 2025 budget decreased from 2024. Air packs and gear have been updated and are now in compliance. The 520 Tender truck has been ordered. The chassis will be built in January 2025, but the truck will not be finished and ready until March 2026. In 2024, Fire Relief donated $25,000 to the truck fund from gambling proceeds.

Public Budget and Levy discussion

The Truth in Taxation meeting was designed for citizens who had questions about the proposed budget and levy for 2024. The maximum levy approved by the Council in September was 9.55%.

Marit Lang, who lives at 306 Whitetail, asked how the budget money was being spent. Her house payment has gone up over $400 a month in the last seven years because of taxes. If it continues to go up, they may not be able to afford to live there once they retire.

Finance Director Kyllo mentioned that the Southern Minnesota Initiative Foundation is just getting started in Kenyon. This fund could be used for city projects, which could potentially decrease the levy amount in the future.

Holli Gudknecht, Administrative Assistant Douglas Henke, Mayor

AGENDA ITEM NO. VII.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: December 10, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: Pearl Creek & Gates Ave Utility Improvements

Suggested Action:

Attachments:

01.1_RCA_Pearl Creek & Gates Ave Utility Improvements.pdf 01.2 Pearl Creek Letter and Pay App 11.pdf

REQUEST FOR COUNCIL ACTION

Agenda Item: Department: Requested Council Meeting Date: Submitted By: Engineering 12/10/2024 Derek Olinger

TITLE OF ISSUE: Pearl Creek & Gates Ave Utility Improvements

BACKGROUND AND SUPPLEMENTAL INFORMATION: Please read the attached cover letter for an update on this project.

SOURCE OF FUNDING: Project Financing

REQUESTED COUNCIL ACTION: Motion Approving Pay Application #11 to BCM Construction

Motion directing City Engineer and City Administrator to execute change order as discussed in attached pay app 11 letter.

Supporting Documents Attached:

Resolution Ordinance Contract Minutes OTHER

Pay App

December 4th, 2024

Aaron Miller

BCM Construction 15760 Acorn Trail Faribault, MN 55021

RE: 2023 Pearl Creek Sanitary Sewer & Gates Ave Utility Improvements

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

Mr. Miller: Over the past several months, we have been awaiting the satisfactory completion of various punch list repairs on this project. To date, most of this work is now complete; however, there have been delays associated with minor grading, stabilization, and turf establishment within the Barrett property. Although some recent effort has been made, we do not yet believe the work is acceptable. Now that winter conditions have begun, the results of any final restoration will be unknown until spring thaw. Given this reality, we are recommending that an additional completion date be established in early spring for the remaining repair work. This date will serve as the time the city may seek help from others outside of the contract to complete the work. We anticipate that continued liquidated damages would be suspended over the winter months. Such changes will require city council approval and will be memorialized with a change order. Please contact us to discuss any concerns with this approach. The attached pay application #11 is for $4,430 is enclosed for your review. This payment includes the release of a portion of the retainage withheld for punch list repairs made this past month. As detailed in the pay app, the payment also includes some liquidated damage deductions. Please sign and return the pay application via DocuSign. Please contact us with any questions or concerns. Sincerely, Bolton & Menk, Inc.

Derek Olinger, PE

Kenyon City Engineer Enclosures

H:\KENYON_CI_MN\0H1126462\1_Corres\C_To Others\Pay App Letters\126462 Pay App No. 11_12-4-2024.docx

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 IMPROVEMENTS Contract: N/A Application No.: 11 Application Date: 12/10/2024 Application Period: From 11/2/2024 to 12/3/2024 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) $ 1,240,705.52 5. Retainage a. See Retainage Summary $ 16,819.06 b. 5% X $ - Stored Materials $ - c. Total Retainage (Line 5.a + Line 5.b) $ 16,819.06 6. Amount other payments (or deductions) - see "Other Payment Summary" $ (17,420.00) 7. Amount eligible to date (Line 4 - Line 5.c) $ 1,206,466.46 8. Less previous payments $ 1,202,036.46 9. Amount due this application $ 4,430.00 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: FRANK BOYLES Title: CITY ENGINEER Title: INTERIM CITY ADMINISTRATOR Date: Date:

EJCDC C-620 Contractor's Application for Payment

(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 24 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 IMPROVEMENTS Contract: N/A

Application No.: 11 Application Period: From 11/02/24 to 12/03/24 Application Date: 12/10/24

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 1.00 55,000.00 1.00 55,000.00 55,000.00 100% - 2 CLEARING AND GRUBBING 1.00 LS 13,125.00 13,125.00 1.00 13,125.00 1.00 13,125.00 13,125.00 100% - 3 REMOVE RIPRAP (P) 75.00 CY 21.00 1,575.00 75.00 1,575.00 75.00 1,575.00 1,575.00 100% - 4 SITE GRADING 1.00 LS 30,000.00 30,000.00 1.00 30,000.00 1.00 30,000.00 30,000.00 100% - 5 GEOGRID TYPE 1 1,130.00 SY 1.75 1,977.50 955.00 1,671.25 955.00 1,671.25 1,671.25 85% 306.25 6 AGGREGATE SURFACING CLASS 2 630.00 TON 25.00 15,750.00 630.00 15,750.00 630.00 15,750.00 15,750.00 100% - 7 PAVEMENT/CURB/DRIVEWAY PATCHING 1.00 LS 26,500.00 26,500.00 1.00 26,500.00 1.00 26,500.00 26,500.00 100% - 8 6" CONCRETE DRIVEWAY (REINFORCED) 160.00 SY 114.00 18,240.00 160.00 18,240.00 160.00 18,240.00 18,240.00 100% - 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 1.00 4,500.00 1.00 4,500.00 4,500.00 100% - 11 EROSION & SEDIMENTATION CONTROL 1.00 LS 12,000.00 12,000.00 1.00 12,000.00 1.00 12,000.00 12,000.00 100% - 12 STABILIZE & REESTABLISH TURF 1.00 LS 15,000.00 15,000.00 1.00 15,000.00 1.00 15,000.00 15,000.00 100% - 13 EXPLORATORY EXCAVATION 10.00 HOUR 400.00 4,000.00 3.00 1,200.00 3.00 1,200.00 1,200.00 30% 2,800.00 14 CONSTRUCTION ALLOWANCE 35,000.00 UNIT 1.00 35,000.00 28,799.20 28,799.20 28,799.20 28,799.20 28,799.20 82% 6,200.80 15 HWY 60 MH & PIPE DISCONNECTIONS 1.00 LS 8,000.00 8,000.00 1.00 8,000.00 1.00 8,000.00 8,000.00 100% - 16 REMOVE MANHOLE (SANITARY) 3.00 EACH 1,500.00 4,500.00 3.00 4,500.00 3.00 4,500.00 4,500.00 100% - 17 EXCAVATION - ROCK 180.00 CY 84.00 15,120.00 103.00 8,652.00 103.00 8,652.00 8,652.00 57% 6,468.00 18 DEWATERING 1.00 LS 20,000.00 20,000.00 1.00 20,000.00 1.00 20,000.00 20,000.00 100% - 19 CONNECT TO EXISTING SANITARY SEWER MAIN 2.00 EACH 875.00 1,750.00 3.00 2,625.00 3.00 2,625.00 2,625.00 150% (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 3.00 1,200.00 3.00 1,200.00 1,200.00 100% - 22 8" PVC PIPE SEWER (CREEK CROSSING) 157.00 LF 1,400.00 219,800.00 157.00 219,800.00 157.00 219,800.00 219,800.00 100% - 23 8" PVC PIPE SEWER 280.00 LF 90.00 25,200.00 283.00 25,470.00 283.00 25,470.00 25,470.00 101% (270.00) 24 6" PVC SANITARY SERVICE PIPE 304.00 LF 102.00 31,008.00 299.00 30,498.00 299.00 30,498.00 30,498.00 98% 510.00 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 1.00 7,000.00 1.00 7,000.00 7,000.00 100% - 28 CONST DRAINAGE STRUCTURE (MH B - AIR/VAC RELEASE) 1.00 EACH 5,500.00 5,500.00 1.00 5,500.00 1.00 5,500.00 5,500.00 100% - 29 CONST DRAINAGE STRUCTURE DES 4007 (MH C) 1.00 EACH 8,200.00 8,200.00 1.00 8,200.00 1.00 8,200.00 8,200.00 100% - 30 CONST DRAINAGE STRUCTURE DES 4007 (MH D) 1.00 EACH 8,000.00 8,000.00 1.00 8,000.00 1.00 8,000.00 8,000.00 100% - 31 REPLACE & ADJUST CASTING 1.00 EACH 1,350.00 1,350.00 1.00 1,350.00 1.00 1,350.00 1,350.00 100% - 32 CONSTRUCT 8" INSIDE DROP (MH C) 1.00 EACH 4,500.00 4,500.00 1.00 4,500.00 1.00 4,500.00 4,500.00 100% - 33 CONSTRUCT 8" INSIDE DROP (MH D) 1.00 EACH 4,500.00 4,500.00 1.00 4,500.00 1.00 4,500.00 4,500.00 100% - 34 SANITARY SEWER TRACER SYSTEM 1.00 LS 3,000.00 3,000.00 1.00 3,000.00 1.00 3,000.00 3,000.00 100% - 35 LIFT STATION & VALVE VAULT 1.00 LS 235,090.22 235,090.22 1.00 235,090.22 1.00 235,090.22 235,090.22 100% - 36 ELECTRICAL (POWER EXTEN, BACKUP GEN, CONTROL, LIGHT, CONCRETE PADS) 1.00 LS 200,000.00 200,000.00 1.00 200,000.00 1.00 200,000.00 200,000.00 100% - 37 GAS SERVICE ALLOWANCE 8,000.00 UNIT 1.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 100% - 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 37,050.00 636.00 36,252.00 636.00 36,252.00 36,252.00 98% 798.00 50 ELECTRICAL VAULT MANHOLE 1.00 EACH 10,500.00 10,500.00 1.00 10,500.00 1.00 10,500.00 10,500.00 100% - 1.01 PAVING MOBILIZATION 1.00 LS 1,800.00 1,800.00 1.00 1,800.00 1.00 1,800.00 1,800.00 100% - 1.02 TYPE SP 12.5 WEARING COURSE MIXTURE (2,B) (SINGLE 3" LIFT) 156.00 TON 112.00 17,472.00 171.05 19,157.60 171.05 19,157.60 19,157.60 110% (1,685.60) - - - - - - - Original Contract Totals $ 1,241,494.22 $ 1,225,905.52 99% $ 1,225,905.52 $ - $ 1,225,905.52 99% $ 15,588.70

EJCDC C-620 Contractor's Application for Payment

Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 1 of 2 25 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 IMPROVEMENTS Contract: N/A

Application No.: 11 Application Period: From 11/02/24 to 12/03/24 Application Date: 12/10/24

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 ($) ($) ($) (%) ($) 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 $ 1,240,705.52 99% $ 1,240,705.52 $ - $ 1,240,705.52 99% $ 15,588.70

EJCDC C-620 Contractor's Application for Payment

Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 2 of 2 26 Retainage Summary 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 IMPROVEMENTS Contract: N/A

Application No.: 11 Application Period: From 11/02/24 to 12/03/24 Application Date: 12/10/24

A B C D Summary of Retainage: Estimated Cost Calculation Factor Amount Retained

Percent Retainage (1% of work substantially completed) 1% 1,231,905.52 $ 12,319.06

Item No. Punch List Description

Sanitary Add Wiring & Control for Power Loss Notification & Alarm 1% of Electrical $ - 250% $ -

Sanitary/Water Finish setting tracer Pedestals/Test Stations (wtr and san) (3) @ 100 Each $ - 250% $ - Turf/Erosion Add topsoil & reestablish turf around MH B (10 CY @ $30/CY) + 2 1hr x $200/hr $ - 250% $ - Replant & Seed Bare spots in Barrett Yard (South of Creek), includes hillside washout Turf/Erosion 10% of item 12 250% stabilization $ 1,500.00 $ 3,750.00 Turf/Erosion Remove Sand in Barrett yard, Reestablish Turf 1 hr @ $100 $ - 250% $ - Remove Erosion/Sediment Control BMPs & Final cleanup of dirt clumps, branches, tire Turf/Erosion 15% 10% of item 11 ruts, etc. in these areas $ - 250% $ - Site Modify Grading to allow water to enter inlet of culvert below LS driveway 5% of culvert cost ($5361) $ 300.00 250% $ 750.00 250% $ - 250% $ - 250% $ -

PUNCH LIST SUBTOTAL: $ 4,500.00

RETAINAGE TOTAL: $ 16,819.06 Total Amount Retained includes 1% of work completed and 250% of value of remaining punch list items. See most recent punch list for additional detail. List above may not include all repairs on the current punch list.

Other Payments Summary 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 IMPROVEMENTS Contract: N/A

Application No.: 11 Application Period: From 11/02/24 to 12/03/24 Application Date: 12/10/24

A B C D

Actual Completion Liquidated

Milestone/ Contract or Cutoff Date Number of Damages Per Day Totals Completion Completion Description Completion Date (Whichever is earlier) Days Over ($) ($)

Substantial Completed in accordance with Agreement Section 4.02 08/02/24 10/12/24 NC $ (1,600.00) NC

Final Punch List Complete, Final Documentation Submitted 09/27/24 12/03/24 67 $ (260.00) $ (17,420.00)

Totals $ (17,420.00) NC = Not Calculated. Lack of calculation and pay adjustment does not represent the city's intention to make future pay adjustments in accordance with the contract.

AGENDA ITEM NO. VII.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: December 10, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: 2025 Street & Utility Improvements

Suggested Action:

Attachments:

02.1_RCA_2025 Street & Utility Improvements2.pdf 02.2_Langford Plan Draft_Easement Markup.pdf

REQUEST FOR COUNCIL ACTION

Agenda Item: Department: Requested Council Meeting Date: Submitted By: Engineering 12/10/2024 Derek Olinger

TITLE OF ISSUE: 2025 Street & Utility Improvements

BACKGROUND AND SUPPLEMENTAL INFORMATION:

Design work for the project is approximately 25% complete.

We would like to discuss the need for easements along Langford Avenue. Please refer to the draft plans for Langford Ave (included separately in packet).

The Langford right-of-way (ROW) is within and adjacent to former railroad ROW. The ROW width varies and portions of the existing street are outside the ROW. Since the project will include a slight increase to the Langford Street width, these encroachments will grow as a result of the project.

This project presents an opportunity to address this issue through the acquisition of permanent easements from adjacent property owners. Most easements would include a strip of land (a few feet wide) adjacent to the street. Easements require compensation to the property owner, as well as engineering and legal time to draft property descriptions, draft agreements and meet with property owners. Please also be advised that the quick and successful easement acquisition requires willing land owners.

We are requesting the council's support in beginning easement negotiations. Any future easement agreements and associated compensation will require council approval.

SOURCE OF FUNDING: Future Project Financing

REQUESTED COUNCIL ACTION: Motion directing city engineer to engage property owners for the acquisition of easements for Landford Ave.

Supporting Documents Attached:

Resolution Ordinance Contract Minutes OTHER

PINE STREET MART STREET APPROX EASEMENT NEED 665400240 2 LANGFORD AVENUE 665400480 SARAH SHELTON 722 PINE STREET 665400370 CHARLES D VOXLAND 7,340 SF 717 MART STREET R

Mary K Hanson

665400360 OE 663500020 C S 712 MART STREET 2 LANGFORD AVENUE DOUGLAS E HENKE X SARAH SHELTON OE OEC 140' X

1,673 SF

PC: 20+67.37 OE

BP: 13+00.00 OEC

PI: 13+50.00 PI: 14+21.37 PI: 16+75.70 PI: 18+81.87 P P OEC

PI: 15+69.77 X

PI: 17+75.70 140' X

143' 114' C H OE C CC X X X OEC OE C OEC OEC 13+00 OEC 20+00

Langford Ave

OE 14+00 15+00 17+00 19+00 OEC 16+00 18+00 OE

Langford Ave

S OEC OEC OE P OEC H C OE OC OE OE OC OE OEC OE OC 101' C OE OC OE OC OE OE OE OC OE OC OE OE OC OEC H OE OC OE OC OE OEC OE OC OE OC OE OE OC OE OC OE OE OEC OE OE OC 166' OE OC OE OC OE OE OC OE OC C OE OC OEC OE OE OE OE OE 163' OE OC OE OC OE OC OC OE OE OC OE OC OEC OE OC OE OE G OE 73' US OE OE OE 666600090 EXIST ROW 665401380 17 LANGFORD AVE 19 LANGFORD AVENUE CEMSTONE CONCRETE ROBERT KYLLO MATERIALS 9,016 SF (TOTAL) 29,873 SF (TOTAL) 8,358 SF (ABUTTING) 23,786 (ABUTTING)

1160 1160

1155 1155

1150 1150

1145 1145

1140 1140

1135 1135

1130 1130

c Bolton & Menk, Inc. 2024, All Rights Reserved 1125 1125

1120 1120

H:\KENYON_CI_MN\24X134934000\CAD\C3D\134934000C601.dwg 11/26/2024 4:10:06 PM

666400170 103 GATES AVE JAMES R & BARBARA J 1145.9 1145.8 1145.7 1145.5 1145.2 1144.9 1144.5 1144.1 1143.7 1143.3 1142.8 1142.4 1141.9 1141.4 1141.0 1140.6 1140.2 1139.6 1139.1 1138.6 1138.2 1137.8 1137.5 1137.1 1136.7 1136.3 1135.9 1135.4 1134.9 1146.1 1146.0 GOULD

1115 1145.94 1145.70 1145.47 1145.21 1144.93 1144.61 1144.26 1143.88 1143.46 1143.03 1142.60 1142.17 1141.74 1141.31 1140.88 1140.45 1140.02 1139.59 1139.16 1138.73 1138.30 1137.87 1137.44 1137.01 1136.58 1136.14 1135.71 1135.28 1134.80 1115 13+00 14+00 15+00 16+00 17+00 18+00 19+00 20+00 20+50 KENYON, MINNESOTA DESIGNED NO. ISSUED FOR DATE I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED CWH SHEET BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED 2900 43RD STREET NW, SUITE 100 0 25 0 5 10 PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. 50 ROCHESTER, MN 55901 DRAWN

Horz.

SCALE FEET

VERT. SCALE FEET DRAFT PLAN DEREK OLINGER Phone: (507) 208-4332 Email: Rochester@bolton-menk.com CHECKED CWH DO 2025 STREET & UTILITY IMPROVEMENTS STREET PLAN & PROFILE C6.03 R www.bolton-menk.com CLIENT PROJ. NO. 54287 MM/DD/YYYY LANGFORD AVE LIC. NO. DATE 134934 31 66 6 APPROX EASEMENT NEED 712 M 5400360 2 LAN 65400240 GF DOUG ART STREE SARAHORD AVENU LAS E T SH E HENK E 7,340 ELTON 6 SF 1 LAN 65400250 OE GFO SCOTT RD AVENU BO E 143' 5,739 WEN P X

SF 2 LAN 63500020 R

P Oe

PI: 18+81. GF SARAHORD AVENU X

E CC SHELT ON OE X OC OE OE OC OE OC X X 1,673 SF OE OC OE OC X OE OC 6 OE OC 1 LAN 63500010 X OEC OE OC CLVT

EP: 23+43.06 OE OC 19+00 OC OE GFO SCOTT RD AVENU OE OC

PC: 20+6 OE 114'

PI: 22+69.00 H OE OC OC OE BO E

PT: 21+55.78 OC OE 5299 WEN 7.37 OC OE OC OE OC OE SF

Langfo

101' OE OC H OOEEC H P OC OE OE OC 20+00 168' OE OCOE OE C OE

Rd Ave

OE OC OE OC 23+00 23+43.06

Oeec

21+00 22+00 O

66 17 L 6600090

MOG CEMS ANGFORD A TONE VE OE OEC MA CONCRETE 29,87 TERIALS 3 SF (T 359' 23,78 6 (ABU OTAL) 666 TTING ) 10 SLE 600390 OE E OEC WILST STREET

REN 94,15 OR LLC 62,64 2 SF (TOTA EXIST ROW 9 SF (A L BUTTIN ) OE G) OEC

Hill

OE OEC

OE OEC

OE OEC

OE OEC

1155 OE 1155 OEC

1150 1150

1145 1145

1140 1140

1135 1135

1130 1130

1125 1125

c Bolton & Menk, Inc. 2024, All Rights Reserved 1120 1120

1115 1115

H:\KENYON_CI_MN\24X134934000\CAD\C3D\134934000C601.dwg 11/26/2024 4:10:07 PM

1138.2 1137.8 1137.5 1137.1 1136.7 1136.3 1135.9 1135.4 1134.9 1134.2 1133.4 1132.6 1131.7 1130.9 1130.0 1129.2 1128.3 1127.5 1138.30 1137.87 1137.44 1137.01 1136.58 1136.14 1135.71 1135.28 1134.80 1134.19 1133.47 1132.62 1131.73 1130.83 1129.93 1129.03 1128.18 1127.53 1127.1 1124.4 1110 1110 18+50 19+00 20+00 21+00 22+00 23+00 24+00 25+00 26+00 KENYON, MINNESOTA DESIGNED NO. ISSUED FOR DATE I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED CWH SHEET BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED 2900 43RD STREET NW, SUITE 100 0 25 0 5 10 PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. 50 ROCHESTER, MN 55901 DRAWN

Horz.

SCALE FEET

VERT. SCALE FEET DRAFT PLAN DEREK OLINGER Phone: (507) 208-4332 Email: Rochester@bolton-menk.com CHECKED CWH DO 2025 STREET & UTILITY IMPROVEMENTS STREET PLAN & PROFILE C6.04 R www.bolton-menk.com CLIENT PROJ. NO. 54287 MM/DD/YYYY LANGFORD AVE LIC. NO. DATE 134934 32 AGENDA ITEM NO. VII.C

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: December 10, 2024

SUBMITTED BY: Holli Gudknecht, Engineering

ITEM TYPE: Engineering

Agenda Section: Engineering

SUBJECT: 8th Street Development

Suggested Action:

Attachments:

03.1_RCA_8th Street Development.pdf 03.2_2024-12-5 Layout-Details.pdf

REQUEST FOR COUNCIL ACTION

Agenda Item: Department: Requested Council Meeting Date: Submitted By: Engineering 12/10/2024 Derek Olinger

TITLE OF ISSUE: 8th Street Development

BACKGROUND AND SUPPLEMENTAL INFORMATION: We have drafted a potential layout for the site for review by the City, EDA and any others.

Basic data on the layout is provided below:

# Lots 56 - 60 36' Street 0.74 mi Partial Street 0.28 mi Sanitary Extension 2,950 ft Water Extension 4,400 ft Storm Sewer 3,100 ft

This layout represents an ideal scenario for buildout of the area from the standpoint of city planning; however, some discussion and input from developer's perspective will be useful prior to preparing costs.

Please provide any input you see fit.

Source Of Funding: Eda

REQUESTED COUNCIL ACTION: No formal action requested.

Supporting Documents Attached:

Resolution Ordinance Contract Minutes OTHER

x

34 8th Street 8th Street Development Development : - Utility Draft Lot, Utility/Contour and StreetMap Layout 714 BU-050 714 719 SP-160 717 608 612 616 622 626 720 721 626 711 714 404 714 514 724 725 FR-150 8th St 8S-010 8th St RW-090 8S-020 I

I

I

I

9S-010 I

I

I 601 605 611 615 627 804

I

Fo re st St

I

I

I

I

I

120 I

I

I 602 602 0' 616 618 820

I

I

I

Red Wing Ave

9S-020 I I I I I I I I I I 9S-030 II I I I I I I I I I 9S-040 I I 9S-050 RW-100 I 9th St

Centenn i al Dr

I I

0 9th St 119 I

I I

' I

117 603 627 902 901 0' I I

I

Number of Lots: 56-60 I I

I

Note: This layout is not intended to I I

I represent the City's opinion of any I I

development requirements, nor I 11 8 restrictions. The layout is for the ' I 0' I

Rw-110

purpose of continued discussion. 70 11 I

I I

Spring St Forest St

I

Bullis St

I I

Stormwater I

I I

I

I I 930

Pond I

I I

I

I I

I

I I

I

I I

Rw-120

10th St I I I I I I I I I I I I I I I I I I I I I

Future 10th St

11/3/2024, 9:36:08 PM 1:2,500 Contours 0 112.5 225 450 ft Sanitary Manhole Storm Catch Basins Storm Beehive Water Service Lines Index 0 30 60 120 m Sanitary Clean Out Storm Manhole Storm Pipe Water Pipe Sanitary Pipe Flow Arrow Intermediate Storm Apron Water Hydrant Parcels - Goodhue Co. Maxar, Microsoft, Esri Community Maps Contributors, © OpenStreetMap, Microsoft, Esri, TomTom, Garmin, SafeGraph, Storm Pipe Flow Arrows Sanitary Service Lines Storm Culvert Water Valve GeoTechnologies, Inc, METI/NASA, USGS, EPA, NPS, US Census Bureau, USDA, USFWS

City Limits Sanitary Pipe Storm Clean Out Water Curb Stop Earthstar Geographics | Esri, TomTom, Garmin, FAO, NOAA, USGS, EPA, USFWS | 35 AGENDA ITEM NO. VIII.A

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: December 10, 2024

SUBMITTED BY: Holli Gudknecht, Legal

ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: Kenyon Code 400.07 Moving Permits - Amendment

1. Ordinance No. 107: Amending Section 400.07 of the Kenyon City Code Regarding Moving Permits

SUGGESTED ACTION: The attached amendment to Ordinance No. 107 regarding moving

permits is attached.

In October, the Planning Commission reviewed a request to move a building to a lot in Kenyon. This request did not materialize, but the Commission felt the current city code for moving permits needed to be updated. The code did not address conforming to the appearance or structural design of other buildings in the area or the age of the structure to be moved. Changes made include: 1. Language to address the concerns about appearance and age was added to the moving permit code. 2. A paragraph was also added from the KMU Rules and Regulations Handbook about electric line clearance. 3. In Subd.4, the language was changed to match the MN State Statute 221.81.

At the December 4, 2024 Planning Commission meeting the updated ordinance was reviewed. The Commission is recommending adoption of Ordinance No. 107 to the City Council.

Motion Needed

Attachments:

Ordinance 107 Amendment_Moving_Permit.docx

ORDINANCE NO. 107

An Ordinance Amending Section 400.07 Of The

KENYON CITY CODE REGARDING MOVING PERMITS

The City Council Of The City Of Kenyon, Minnesota, Ordains:

Section 1. The following Section 400.07 of the Kenyon City Code is hereby amended by the addition of the bold and double underlined language and the deletion of the bold and stricken language, as follows:

Section 2. Section 400.07, Subd. 4 of the Kenyon City Code is hereby amended as follows: Subd. 4. Permit and fee. The moving permit must state the date or dates of moving, hours, routing, movement and parking. Permits will be issued only for moving buildings by building movers licensed by the state of Minnesota. except that a permit may be issued to a person moving that person's own building, or a person moving a building which does not exceed 12 feet in width, 25 feet in length, or 16 feet in loaded height. Exceptions to this requirement are as follows: a person who moves manufactured or modular homes, farmers moving their own buildings, and buildings measuring less than 16 feet by 20 feet. Fees to be charged are separate for each of the following: (i) a moving permit fee to cover use of streets and route approval, and (ii) a fee equal to the anticipated amount required to compensate the city for any municipal utility and public property (other than streets) repairs or alterations occasioned by such movement. Fees must be paid in advance. Fees are set forth in appendix I.

Section 3. Section 400.07, Subd. 7-9 of the Kenyon City Code is hereby added as follows: Subd. 7. Structure appearance and design. No building shall be moved on a lot or from one lot to another lot in any zoning district when such building is not of a type permitted in that district or does not substantially conform to the general outward appearance and structural design of other buildings in the area. No building shall be moved for relocation with the city unless such buildings shall conform to existing city ordinances or unless adequate bond or cash deposit is given to the city to ensure reconstruction of the building to substantial conformity with city ordinances and with buildings in the area in which it is to be moved. In the event that any building has been constructed more than 40 years prior to the application for a permit for moving, the same shall be prima facie evidence that the building does not comply with the provisions of this article.

Subd. 8. Permit invalid. Moving and building permits shall become invalid if the work does not commence within 180 days after its issuance, or if the work is suspended or abandoned for a period of 180 days after the time the work commences.

Subd. 9. Electric line clearance. There must be adequate clearance from the power lines, or the Utility may not be able to grant permission. Only secondary voltages may be interrupted. Primary voltage distribution and transmission will not be allowed to be interrupted unless the system design has looped feed capabilities allowing continuity of service to be maintained. The Utility will charge for labor and any materials used.

Section 4. 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 10th day of December 2024.

______________________________ ATTEST: Douglas Henke, Mayor

___________________________________ Holli Gudknecht, Deputy City Clerk

(Published in the Kenyon Leader on December 18, 2024)

AGENDA ITEM NO. VIII.B

Agenda Item Summary

CITY COUNCIL AGENDA ITEM REPORT

DATE: December 10, 2024

SUBMITTED BY: Holli Gudknecht, Administration

ITEM TYPE: Legal

Agenda Section: Legal

SUBJECT: Cannabis Matters

Suggested Action:

Attached are a memo from the city attorney, the League's Local Government guide, a sample draft ordinance for Kenyon, and an example from another community showing what an ordinance might look like if the city wants to register cannabis businesses (instead of asking Goodhue County to do so).

The city attorney will walk through the memo and possible review the Kenyon Draft ordinance depending on the direction the council wants to go.

Attachments:

Kenyon Cannabis Memo.DOCX

Cannabis Guide for Local Governments.pdf Cannabis Draft Ordinance.DOC Rogers Example Cannabis Ordinance..pdf

Joseph L. Sathe Fifth Street Towers 150 South Fifth Street, Suite 700 Minneapolis, MN 55402

(612) 337-9255 direct email: jsathe@kennedy-graven.com

Memorandum

TO: Kenyon Mayor and City Council

FROM: Joseph L. Sathe, Assistant City Attorney

DATE: December 6, 2024

RE: Initial Cannabis Regulatory Decisions

The purpose of this memo is to provide a high-level overview of the options cities will have regarding adult-use cannabis and to obtain preliminary input on some questions that will be used to draft the City's ordinance(s) related to cannabis and hemp. This memo is based on the information available at this time. The Office of Cannabis Management ("OCM") has released a draft of its administrative rules which are subject to change over the next few months.

Enclosed is the OCM's Guide for Local Government on Adult-Use Cannabis. This is a document includes additional information on cannabis businesses should you desire additional information.

Additionally, I have enclosed a preliminary draft of what cannabis regulations (both administrative and zoning) might look like in Kenyon if the city consents to have the county deal with registrations (discussed further below) and also an example of an ordinance from a community (Rogers) that is handling registrations itself.

Answering the questions in this memo will guide staff in drafting language specifically for the city ordinances.

I. Decisions – Generally

Under the Cannabis Act, cities generally maintain their ability to enact regulations with two primary limitations: (1) the City may not prohibit the establishment or operation of a cannabis or hemp business licensed by the OCM; and (2) the Legislature has established a maximum buffer from certain uses. Cities will retain the ability to enact certain ordinances even if it consents to have the county issue registrations, as discussed in Section IV.

Ii. Zoning Decisions – Designating Zoning Districts

KE200\1\993980.v1-12/6/24 40 The City can amend its zoning code to specifically allow each business type in a particular district or it can choose to simply allow cannabis businesses in zones with similar uses (e.g., retailers in commercial zones with other retail). The following table includes each licensed business and very high-level information on the businesses operations.

Question: Does the City want to designate zoning districts where cannabis businesses can be located or rely on each businesses underlying use?

License Type Main Function Use Type(s)

Cannabis Retailer Sales to the customers Commercial Cannabis Delivery Service Delivery of products directly to customers Commercial Lower Potency Hemp Sale of lower-potency hemp edible Commercial Retailer products directly to customers Cannabis Cultivator Growing and tending to cannabis and hemp Indoor: Industrial, plants Commercial, Production Outdoor: Agricultural Cannabis Event Organizer Coordinate cannabis events Office/Commercial

Cannabis Manufacturer Create cannabis products that are sold to Industrial retailers Lower-Potency Hemp Creating lower-potency hemp products that Industrial Edible Manufacturer are sold to retailers Cannabis Testing Testing cannabis and hemp products Industrial

Cannabis Wholesaler Warehousing and Storage Industrial

Cannabis Transporter Transport products from one license type Industrial/Commercial

to another. Medical Cannabis Cultivation, Manufacturing, and Retail to Cultivation, Manufacturing, & Combination Business both the public and medical patients. limited Retail

Cannabis Mezzobusiness Cultivation, Cultivation,

Manufacturing, and Retail Manufacturing, and Retail Cannabis Microbusiness Cultivation, Cultivation, Manufacturing, and Retail Manufacturing, and Retail

On-site consumption of drinks and beverages allowed with OCM approval.

KE200\1\993980.v1-12/6/24 41 III. BUFFERS

A. Cannabis Business Buffers from Certain Uses

A local unit of government may prohibit the operation of a cannabis business within:

1) 1,000 feet of a school; or 2) 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.

The terms school, day care, residential treatment facility, and attraction within a public park that is regularly used by minors, including a playground or athletic field are not further defined in statute or administrative rule, so the city has some discretion in defining these terms. The enclosed OCM guide includes some definitions that were drafted for the OCM's model ordinance (which is different than the administrative rules).

Questions: Is the City interested in adopting buffers for all cannabis businesses, certain cannabis businesses (e.g., retail) or no buffers?

If so, is the City interested in buffers from all or some of the identified establishments?

B. Buffers from Other Cannabis Businesses

While not explicitly listed in statute, the OCM proposes that cities could adopt requirements that cannabis businesses must be located a certain distance from each other.

Question: Is the City interested in adopting buffers between cannabis businesses?

C. Lower Potency Hemp Edible Buffers?

Businesses selling lower-potency hemp edibles, such as beverages and gummies, need to register with the City. While not explicitly addressed in statute, the City should be able to adopt regulations related to these businesses. These might include buffers, zone designation, etc. Cities may be able to also differentiate between hemp businesses selling for on-site consumption and those selling products for off-site consumption.

One comparison is that, from a regulatory standpoint, lower-potency hemp edibles are addressed similar to 3.2 beer, while cannabis products are addressed similar to liquor sales. Lower-potency hemp edibles and 3.2 beer can be sold in many different retail locations, while liquor and cannabis must be sold from a designated store.

Question: Is the City interested in adopting buffers for hemp businesses?

KE200\1\993980.v1-12/6/24 42 IV. REGISTRATION, COMPLIANCE CHECKS, & SOME OPERATIONS

The OCM reviews, approves, and issues cannabis and hemp business licenses. However, each retail business must also register with the city in which it will operate, unless the city has consented to the county issuing registrations on its behalf. A registration fee can be imposed in addition to the state fee.

By maintaining the authority to register retailers the city is retaining the ability to put an explicit cap on the number of cannabis retailers and suspend licenses but must conduct compliance checks.

A. Registrations

The registration process involves issuing a registration to a retail business that: (1) has a valid license issued by the OCM; (2) has paid the registration fee or renewal fee (if applicable); (3) is found to be in compliance with the requirements of the Cannabis Act at any preliminary compliance check; and (4) if applicable, is current on all property taxes and assessments.

Question: Does the City wish to issue registrations or ask the county to do it?

B. Registration Fee

Registration Fees by Business Type

The following shows the maximum amount the city could charge for an initial registration fee and renewal registration fee for retail businesses and includes the amount the state charges for a license, for reference.

The city's initial registration cannot exceed $500 or half of the license fee (whichever is less) and the renewal registration fee cannot exceed $1,000 or half of the license fee (whichever is less)

The initial registration fee shall include the fee for initial registration and the first annual renewal. Any renewal fee imposed by the local unit of government shall be charged at the time of the second renewal and each subsequent annual renewal thereafter. Business Initial Renewal Cannabis Retailer City (Optional) - $500; State - $2,500 City (Optional) - $1,000; State - $5,000

Lower Potency Hemp City (Optional) - $125; State - $250 City (Optional) - $125; State - $250 Retailer Medical Cannabis City (Optional) - $500; State - City (Optional) - $1,000; State - $70,000 Combination Business $20,000 Cannabis City (Optional) - $500; State - $5,000 City (Optional) - $1,000; State - $10,000 Mezzobusiness Cannabis City (Optional) - $0; State - $0 City (Optional) - $500; State - $1000 Microbusiness

Question: Does the City want to impose a registration fee?

KE200\1\993980.v1-12/6/24 43 C. Compliance Checks

Once the registration is issued, the entity issuing the registration is responsible for annual compliance checks that include assessing compliance with age verification requirements (using underage purchasers) and any city-imposed time, place, and manner regulations.

D. Limiting Number of Retailers

The specific language in the Cannabis Act allowing a limitation on the number of retailers in the City says that "[a] local unit of government that issues cannabis retailer registration…may, by ordinance, limit the number of licensed cannabis retailers, cannabis mezzo businesses with retail endorsements, and cannabis mezzo businesses with retail endorsements to no fewer than one registration for every 12,500 residents." Kenyon's estimated population is 1,916 (based on the most recent numbers from the State Demographer) so could limit the number of retailers to one.

Additionally, the City is not required to issue a municipal registration if other cities/the county have issued 1 registration per 12,5000 residents in the county.

Consenting to have the county issue registrations could mean that the county then has the ability to limit retailers within the county, not cities.

Question: Does the City wish to limit the number of retailers to 1 per 12,500 city residents? Does the City wish to not register retailers if there is already 1 registration per 12,500 county residents?

Note: Cities will receive a portion of the taxes imposed by the state as part of "local government cannabis aid". This aid will be distributed to cities based on the number of cannabis businesses (not just retailers) in the City.

E. Limiting Hours of Operation

Under statute, retail cannabis businesses may operate from 8:00 am-2:00 am Monday-Saturday and 10:00 am-2:00 am on Sunday. The City can limit the hours of operation to be between 10:00 am-9:00 pm. seven days a week. One option is to treat retailers the same as liquor stores.

Question: Does the City want to impose additional hours of operation limits?

F. Cannabis Events

A temporary cannabis event is a gathering organized by a licensed cannabis event organizer that may last for no more than four days.

KE200\1\993980.v1-12/6/24 44 The process for these events could generally follow the normal process for handling similar events, but the City could choose to require additional standards for temporary cannabis events, such as prohibiting on-site consumption, limiting the hours or the events, etc.

Question: Does the City want to consider additional standards for temporary cannabis events?

V. Next Steps

Any input provided will be used to draft the ordinances related to cannabis and hemp businesses. Zoning changes must go through the zoning amendment process, while the registration and operational ordinances will follow the general ordinance amendment process. If the OCM updates its draft administrative rules, we will update the City with any additional decision points.

Please do not hesitate to reach out with any additional questions or specific concerns. If the Council has additional specific questions, please let us know. Otherwise, we will draft ordinances for the city council and/or planning commission to review.

Enclosures: 1) OCM Local Government Guide 2) Draft Kenyon Ordinances – County Registrations 3) Example Ordinance – City Registrations.

KE200\1\993980.v1-12/6/24 45 A Guide for Local Governments on Adult-Use Cannabis Version 2.0 | Updated November 21, 2024 46 Table of Contents Introduction ................................................................................................ 3

About OCM ................................................................................................. 4

Cannabis License Types ................................................................................ 5

Adult-Use Cannabis Law .............................................................................. 7

Cannabis Licensing Process .......................................................................... 8

General Authorities ................................................................................... 13

Zoning and Land Use .................................................................................. 15

Local Approval Process .............................................................................. 18

Inspections and Compliance Checks ........................................................... 23

Municipal Cannabis Stores ......................................................................... 24

Creating Your Local Ordinance ................................................................... 25

Additional Information – Tobacco Sales.......................................................26

Additional Resources ................................................................................. 27

Page 2

Introduction This guide serves as a general overview of Minnesota's new adult-use cannabis law, and how local governments can expect to be involved. The guide also provides important information about Minnesota's new Office of Cannabis Management (OCM), and the office's structure, roles, and responsibilities. While medical cannabis continues to play an important role in the state's cannabis environment, this guide is primarily focused on the adult-use cannabis law and marketplace. The following pages outline the variety of cannabis business licenses that will be issued, provide a broad summary of important aspects of the adult-use cannabis law, and cover a wide range of expectations and authorities that relate to local governments. This guide also provides best practices and important requirements for developing a local cannabis ordinance. Chapter 342 of Minnesota law was established by the State Legislature in 2023 and was updated in 2024. Mentions of "adult-use cannabis law" or "the law" throughout this guide refer to Chapter 342 and the changes made to it. As of this guide's date of publication, final state regulations governing the adult-use cannabis market have not yet been published. A draft of the rules is available on our Rulemaking webpage (https://mn.gov/ocm/laws/rulemaking.jsp). The first draft of rules is based on substantial input OCM has received through surveys, meetings, and conversations that took place since fall 2023, as well as OCM's review of Minnesota's cannabis statute and cannabis rules in other states. OCM will publish in the State Register a notice of intent to adopt rules, which will prompt a 30-day formal comment period. Watch the OCM website for updates.

This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and municipal officials seeking legal advice should consult an attorney.

Page 3

About OCM Minnesota's Office of Cannabis Management is the state regulatory office created to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. Housed within OCM are the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage.

OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated to:

• Promote public health and welfare. • Protect public safety. • Eliminate the illicit market for cannabis flower and cannabis products. • Meet the market demand for cannabis flower and cannabis products. • Promote a craft industry for cannabis flower and cannabis products. • Prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition.

OCM governs the application and licensing process for cannabis and hemp businesses, specific requirements for each type of license and their respective business activities and conducts enforcement and inspection activities across the Minnesota cannabis and hemp industries.

Page 4

License Types Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role in the cannabis and hemp supply chain. In addition to license types below, OCM will also issue endorsements to license holders to engage in specific activities, including producing, manufacturing, and sale of medical cannabis for patients.

Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location.

Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations.

Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business.

Manufacturer Manufacturers may manufacture cannabis products and hemp products, and package such products for sale to a licensed cannabis retailer.

Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients.

Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp-derived consumer products and lower- potency hemp edibles.

Page 5

License Types (continued) Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses.

Testing Facility

Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis businesses.

Event Organizer

Event organizers may organize a temporary cannabis event lasting no more than four days.

Delivery Service

Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery to customers.

Medical Cannabis Combination Business

Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district.

Lower-Potency Hemp Edible Manufacturer

Lower-potency hemp edible manufacturers may manufacture and package lower-potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp edibles to other cannabis and hemp businesses.

Lower-Potency Hemp Edible Retailer

Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers.

Each license is subject to further restrictions on allowable activities. Maximum cultivation area and manufacturing allowances vary by license type. Allowable product purchase, transfer, and sale between licensees are subject to restrictions in the law.

Page 6

The Adult-Use Cannabis Law Minnesota's new adult-use cannabis law permits the personal use, possession, and transportation of cannabis by those 21 years of age and older, and allows licensed businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis and cannabis products.

For Individuals

• Possession limits: o Flower - 2 oz. in public, 2 lbs. in private residence o Concentrate - 8 g o Edibles (including lower-potency hemp) - 800 mg THC • Consumption only allowed on private property or at licensed businesses with on-site consumption endorsements. Consumption not allowed in public. • Gifting cannabis to another individual over 21 years old is allowed, subject to possession limits. • Home cultivation is limited to four mature and four immature plants (eight total) in a single residence. Plants must be in an enclosed and locked space. • Home extraction using volatile substances (e.g., butane, ethanol) is not allowed. • Unlicensed sales are not allowed.

For Businesses

• Advertising: o May not include or appeal to those under 21 years old. o Must include proper warning statements. o May not include misleading claims or false statements. o Billboards are not allowed. • The flow of all products through the supply chain must be tracked by the state-authorized tracking system. • All products sold to consumers and patients must be tested for contaminants. • Home delivery is allowed by licensed businesses.

Page 7

The Cannabis Licensing Process An applicant will take the following steps to proceed from application to active licensure. As described, processes vary depending on social equity status and/or whether the type of license being sought is capped or uncapped in the general licensing process.

License Preapproval: Early Mover Process for Social Equity

Applicants The license preapproval process is a one-time application process available for verified social equity applicants. State law required OCM to open the application window on July 24, 2024, and close the window on August 12, 2024. The preapproval process was available for the following license types, and all are capped in this process: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, and delivery service. High-Level Pathway to License Preapproval and Conversion to Business Licensure 1. Applicant's social equity applicant (SEA) status verified. 2. Applicant completes license preapproval application and submits application fees. 3. Application vetted for minimum requirements by OCM. 4. Application (if qualified) entered into lottery drawing. 5. If selected in lottery, applicant completes background check process and submits attestation of labor-peace agreement. 6. If applicant successfully completes Step 5, OCM issues license preapproval to applicant. 7. Applicants with license preapproval work with local governments to discuss zoning compliance, secure property, raise capital, etc., pursuant to Minnesota Session Laws 2024, Chapter 121, Article 2, section 148.* 8. Once rules are adopted and applicant is ready to move to next step in conversion, applicant with license preapproval* submits business location to OCM and updates application accordingly. 9. OCM forwards completed application to local government.

Page 8

The Cannabis Licensing Process (cont.) 10. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 11. OCM conducts site inspection. 12. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity. Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Retailer, Microbusiness, Mezzobusiness) 13. Licensed business seeks local retail registration from local government. 14. Local government approves applicant for retail registration through means determined by ordinance (see page 19 for more information about the retail registration process). 15. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 16. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 17. Local government ensures tax compliance, if applicable. 18. Local government issues retail registration to licensee. 19. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration.

*Social equity applicants with license preapproval for microbusiness, mezzobusiness, or cultivator licenses may begin growing cannabis plants prior to the adoption of rules if OCM receives both a signed and completed Local Approval of Early Cultivation Form from the local government, and also a signed and completed Applicant Notice of Intent for Early Cultivation Form. "The Local Approval of Early Cultivation" form is available now and linked in the appendix. This is only applicable to cultivation and does not authorize retail sales or other endorsed activities of the licenses prior to the adoption of rules. OCM will share additional guidance related to the early cultivation opportunity and local governments' role in this distinct process.

Page 9

The Cannabis Licensing Process (cont.) The general licensing process will align with the adoption of rules and OCM will