Watch the meeting
What happened
- Abdo's Brad Falteysek presented the 2024 City and KMU audits; the city received an unmodified (clean) opinion.
- Resolution 2025-17 accepting the 2024 audited financial statements adopted 5-0-0.
- Continued assessment hearing on 2025 Street & Utility Improvements drew no public comment and was continued to July 8, 2025 at 7:00 p.m.
- Resolution 2025-18 approving plans and specs and ordering ad for bids adopted with the 8th Street sidewalk alternative removed; bids open July 2, construction could begin late July.
- Corgi Canna notified the city it is having trouble obtaining financing, so the proposed land sale is off the table for now.
- City office approved to close Friday, June 20, 2025.
- Administrative Policy #38: Debt Management adopted on Northland Securities' recommendation ahead of a bond rating.
- Council approved a $40 monthly stipend for on-call personnel using personal cell phones, set with supervisor and city administrator.
- Joshua Johnson moved to grade 12, step 2 retroactive to April 15, 2025 (KMU Commission had recommended step 3).
- Posting of the Line Worker/Water Operator position tabled pending discussion with the Operations Superintendent; Austin Fitch resigned effective May 30, 2025.
- Finance Director Whitney Kyllo's resignation effective July 17, 2025 was addressed, then a rescinded letter was acknowledged and taken under advisement.
- Public Works Director Wayne Ehrich emailed his resignation effective in 30 days; meeting adjourned at 9:24 p.m.
What was asked 23 raised · 18 settled
Every question, assignment, pending figure and unsourced claim from this meeting, quoted from the record, each checked against the county, census, listing, bid and budget data we hold.
Motion by Sjolander seconded by Kirchmann to acknowledge the rescinded letter from Whitney Kyllo and take it under advisement for discussion by the City Administrator and the personnel committee if needed.
Kyllo submitted a resignation effective July 17, 2025 and then rescinded it.
At the meetingMotion carried 5-0; a separate motion to accept the resignation effective July 17 was also made.
The resignation took effect. Whitney Kyllo resigned as Finance Director effective July 17 2025, reported to the council in the June 10 2025 packet, so the rescission did not hold.
The council acknowledged a rescinded letter, but our record carries the resignation as effective July 17 2025.
council/txt/6-10-25_COUNCIL_PACKET_Updated.txt
Approve posting the Line Worker/Water Operator position Administrator Lehner stated that the KMU Commission recommended posting the Line Worker/Water Operator position. Austin Fitch resigned from this position effective May 30, 2025.
Background for the KMU Commission's recommendation to post the position.
At the meetingCouncil tabled the posting of the position.
The May 30 2025 effective date is consistent across three separate council documents, the July 8 2025, November 12 2025 and December 9 2025 packets, all naming Austin Fitch's resignation from the Line Worker and Water Operator position. The resignation letter itself is not in our holdings but the date is not in doubt.
7.8.25, 11-12-25 and 12.9.25 Council Packets
No public comments were received. No action regarding the assessments was taken since the project will be rebid in July.
Continued public hearing from May 13, 2025 on special assessments for the street and utility project.
At the meetingCouncil voted 5-0 to continue the hearing to July 8, 2025 at 7:00 pm.
The continued hearing was taken up on July 8 2025 with no public comments, and the council then adopted both Resolution 2025-19 accepting the rebid and Resolution 2025-15 adopting the assessment. The rebid went to Fitzgerald Excavating at $2,294,629.25.
7.8.25 Updated Council Packet and Agenda; factbook KENYON_BIDS.md · taken up again 2025-07-08
If this is approved for bidding tonight, the bids will be opened July 2 with construction beginning as soon as late July.
Bid authorization after the previous bids were rejected and plans were revised.
At the meetingCouncil adopted Resolution 2025-18 approving plans and specs and ordering ad for bid.
Bids opened as scheduled at City Hall on Wednesday July 2 2025 at 10:00 am and four bids were received. Fitzgerald Excavating was low at $2,294,629.25, or 17.0 percent under the $2,764,170.05 engineer's estimate, ahead of BCM at $2,423,525.98, Alcon at $2,426,712.04 and Heselton at $2,653,939.05.
7.8.25 Updated Council Packet and Agenda; factbook KENYON_BIDS.md · taken up again 2025-07-08
LEGAL FINANCIAL OLD BUSINESS Muni Expansion – NAPA Building Quotes Matt Bartel, Liquor Store Manager, discussed the quote he received from L&M Construction to remodel the former NAPA building. He is still expecting to receive two more quotes.
Muni expansion into the former NAPA building; only the L&M Construction quote has been received.
Only one further quote ever reached the council, and it was not a competing remodel bid. On October 14 2025 the council approved preliminary estimates 4-0-0 with L&M Construction at $96,581.72 to remodel the building and Stan Morgan and Associates at $111,524.87 for equipment, a combined $208,106.59 against the $215,000 already budgeted, leaving $6,893.41.
The two additional quotes the manager expected never appear; the only other figure in the record is an equipment quote from a different vendor, so the remodel price was never competitively tested.
10.14.25 Council Packet & Agenda · taken up again 2025-10-14
Motion by Sjolander seconded by Bailey to table posting the Line Worker/Water Operator position pending further discussion with the Operations Superintendent.
KMU Commission recommended posting the position vacated by Austin Fitch, but the mayor questioned the need for a 4th employee and KMU staff left for an emergency call.
At the meetingMotion to table carried 5-0.
The posting was tabled a second time on December 9 2025 because the documentation the council asked for never arrived. Operations Superintendent Eggert had been asked to define busy in writing and had not done so, leaving the position vacated by Austin Fitch on May 30 2025 unposted more than six months later.
12.9.25 Council Agenda and Packet Updated · taken up again 2025-12-09
COUNCIL AND STAFF GENERAL COMMENTS Administrator Lehner stated that he just received an email from Public Works Director Wayne Ehrich stating he was resigning effective in 30 days.
Lehner reported the resignation email during general comments.
At the meetingAttorney Riggs said that now that it has been communicated, it is effective; Sjolander expressed regret.
The resignation was undone. The same July 8 2025 packet carries a resolution stating that the City Council rescinds the resignation of the employee and that the employee shall continue as the Public Works Director, drafted under document reference DOCSOPEN KE200 45 1035957.v1 dated July 2 2025.
The attorney told the council the resignation was effective as soon as it was communicated, yet the next packet contains a resolution rescinding it and retaining the same employee.
7.8.25 Updated Council Packet and Agenda · taken up again 2025-07-08
George Eilertson with Northland Securities recommended adopting a Debt Management policy for the city before the bond rating is completed, which will help our bond rating.
Adoption of Administrative Policy #38: Debt Management.
At the meetingCouncil adopted Administrative Policy #38 by 5-0 vote.
The policy was adopted 5-0-0 and the rating followed. Standard and Poors assigned an A plus rating on the 2025A general obligation bond sale, bond insurance was purchased for $6,300, and the bonds sold at 4.44 percent over a 20-year term. That debt now drives the city's tax rate, since the 2026 bond rate rose 35.91 percent while the general rate fell 0.38 percent.
8.12.25 Council Packet & Agenda Updated; factbook taxes/levy.html · taken up again 2025-08-12
George Eilertson with Northland Securities recommended adopting a Debt Management policy for the city before the bond rating is completed, which will help our bond rating.
Rationale for adopting a debt management policy ahead of the rating.
The rating came in at A plus, confirmed by Standard and Poors during its review of the city's financial standing for the 2025A general obligation bond sale reported to the council on August 12 2025. The bonds sold at 4.44 percent for 20 years, with $6,300 of bond insurance buying a higher box rating and a lower interest rate.
8.12.25 Council Packet & Agenda Updated · taken up again 2025-08-12
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS Summary of 2024 City Audit - Abdo Brad Falteysek from Abdo presented a summary of the 2024 City and KMU audits and an overview of the overall City financial condition. The city received an "unmodified" or clean opinion on the audit.
Presentation summarizing the 2024 audit and overall city financial condition.
At the meetingCouncil adopted Resolution 2025-17 accepting the 2024 audited financial statements.
The council adopted Resolution 2025-17 accepting the 2024 audited financial statements 5-0-0. The opinion letter and complete statements are not in our holdings, and the audit engagement moved on shortly after, with BerganKDV winning the December 2024 auditing RFP at $27,540 against CliftonLarsonAllen's $97,640.
7.8.25 Updated Council Packet and Agenda; factbook KENYON_BIDS.md
Approve Paying a $40 Stipend per Month for the Use of KMU Employee's Personal Phones Mayor Kirchmann stated that the KMU Commission recommended a monthly phone stipend of $40 for KMU employees that use their personal phones for work.
New business item on a phone stipend for KMU employees.
At the meetingCouncil approved a $40 stipend for on-call personnel based on a conversation with their supervisor and the city administrator, 5-0.
The council granted the $40 monthly stipend but widened it beyond KMU, approving it 5-0-0 for on-call personnel generally based on a conversation with the employee's supervisor and the city administrator. The KMU Commission minutes and any written stipend policy language are not in our holdings.
7.8.25 Updated Council Packet and Agenda
Motion by Kirchmann seconded by Bailey to approve moving Joshua Johnson to a grade 12, step 2 retroactive to April 15, 2025.
Personnel action on Joshua Johnson's pay grade.
At the meetingCouncil approved grade 12, step 2 retroactive to April 15, 2025, 5-0.
The council overrode the commission and approved grade 12 step 2 retroactive to April 15 2025 on a 5-0-0 vote, one step below the KMU Commission's step 3 recommendation. The city pay schedule is not in our holdings, so the dollar difference between step 2 and step 3 cannot be computed.
The agenda item is titled as approving step 3 while the motion made and carried was step 2, so the printed record disagrees with itself.
7.8.25 Updated Council Packet and Agenda
Approve Paying a $40 Stipend per Month for the Use of KMU Employee's Personal Phones Mayor Kirchmann stated that the KMU Commission recommended a monthly phone stipend of $40 for KMU employees that use their personal phones for work. His concern was that other departments may also want this stipend.
Discussion of the KMU phone stipend recommendation.
At the meetingCouncil addressed it by extending the stipend to on-call personnel generally, subject to supervisor and administrator approval.
The council answered the concern by granting the concession citywide rather than containing it, extending the $40 stipend to all on-call personnel subject to supervisor and administrator approval. No headcount of employees using personal phones for work exists in our data. For scale, the city's phone, internet and cable line ran $33,318 in 2025 against $34,250 budgeted for 2026.
7.8.25 Updated Council Packet and Agenda; factbook KENYON_IT_SPEND.md
Resolution 2025-18: Approving Plans & Specs & Ordering Ad for Bid Motion by Bailey seconded by Helgeson to adopt Resolution 2025-18 with removal of the 8th Street sidewalk alternative.
Rebidding of the 2025 Street and Utility Improvements after bids were rejected.
At the meetingMotion carried 5-0.
Resolution 2025-18 carried 5-0-0 with the 8th Street sidewalk alternative removed, and the rebid that followed opened July 2 2025 and went to Fitzgerald Excavating at $2,294,629.25. The revised plan set showing the sidewalk alternative struck is not in our holdings.
7.8.25 Updated Council Packet and Agenda; factbook KENYON_BIDS.md · taken up again 2025-07-08
Motion by Sjolander seconded by Brunner to close the city office on Friday, June 20, 2025. 12 ENGINEERING 2025 Street and Utility Improvements – Bid Authorization Engineer Olinger stated that following the rejection of the bids last month, the plans and specifications have been revised to reduce the ability and impact of problematic price structures received during the previous bidding process.
Explaining changes made after last month's bid rejection.
At the meetingCouncil adopted Resolution 2025-18 to rebid.
The rebid did lower the price, though only slightly against the first round. Round one produced six bids with ICON at $2,313,649.71 ruled nonresponsive and BCM low responsive at $2,306,652.41, all rejected June 10 2025; round two produced Fitzgerald at $2,294,629.25, which is $12,023.16 below the earlier low responsive bid and $469,540.80 below the engineer's estimate. The list of specification changes made is not in our holdings.
factbook KENYON_BIDS.md; 7.8.25 Updated Council Packet and Agenda · taken up again 2025-07-08
The 13 KMU employees had to leave the meeting for an emergency call, so they were not available for questions.
Council could not question KMU staff before deciding on the position posting.
At the meetingCouncil tabled the item.
KMU staff did come back to the question. At the December 9 2025 meeting John Lee clarified the need to rehire an additional line worker at Mayor Kirchmann's request, and by April 12 2026 the administrator reported working with KMU staff to update the Line Worker and Water Operator job description with the position to be posted soon.
12.9.25 Council Agenda and Packet Updated; 4-12-26 Council packet · taken up again 2026-04-12
CONSENT AGENDA Motion by Sjolander second by Brunner to approve the Consent Agenda, which includes: Alley Closure – Kenyon Municipal Liquor Store – Side by Side Run June 28, 2025 Public Library Request to close at 4:30 pm on Thursday, July 3 and be closed on Saturday, July 5 Financials and Payment of check numbers, 77141 through 77216; 5611E through 5761E Minutes of May 13, 2025 Appointment Kenyon Fire Department Volunteer Dylan Pritchard Motion carried 5-0-0.
Consent agenda item on holiday hours.
At the meetingApproved as part of the consent agenda, 5-0.
The library hours were approved as part of the consent agenda on a 5-0-0 vote, closing at 4:30 pm Thursday July 3 2025 and closed Saturday July 5 2025. The posted public notice of those hours is not in our holdings.
7.8.25 Updated Council Packet and Agenda, consent agenda
CONSENT AGENDA Motion by Sjolander second by Brunner to approve the Consent Agenda, which includes: Alley Closure – Kenyon Municipal Liquor Store – Side by Side Run June 28, 2025 Public Library Request to close at 4:30 pm on Thursday, July 3 and be closed on Saturday, July 5 Financials and Payment of check numbers, 77141 through 77216; 5611E through 5761E Minutes of May 13, 2025 Appointment Kenyon Fire Department Volunteer Dylan Pritchard Motion carried 5-0-0.
Consent agenda item on an event alley closure.
At the meetingApproved as part of the consent agenda, 5-0.
The alley closure was approved in the consent agenda 5-0-0 for the Side by Side Run on June 28 2025. The event permit and the specific closure boundaries and hours are not in our holdings.
7.8.25 Updated Council Packet and Agenda, consent agenda
ADMINISTRATOR UPDATE Proposed Sale of Land to Corgi Canna Administrator Lehner stated that the city was notified by Corgi Canna last evening that they are experiencing difficulty attaining financing, so the project is off the table for now.
Administrator update on a proposed land sale to Corgi Canna.
At the meetingNo action taken; item reported as off the table.
Corgi Canna never returns in our record after being reported off the table for financing reasons. The only later mention touching the subject is title-commitment boilerplate in the September 8 2026 packet stating that the title company cannot close or insure transactions involving land associated with cannabis cultivation, distribution, manufacture or sale. Written notice from Corgi Canna on its financing status is what is missing.
7.8.25 Updated Council Packet and Agenda; 9-8-26 Council Packet
Mayor Kirchmann stated that he didn't think the workload had increased for KMU to justify rehiring a 4th employee.
Discussion of whether to post the vacant Line Worker/Water Operator position.
At the meetingNo answer; KMU employees had left the meeting for an emergency call and were unavailable for questions.
The workload question was never answered with data. The council asked Operations Superintendent Eggert to define busy in writing, and by December 9 2025 that documentation had still not been received, so the posting was tabled again. KMU workload, overtime and call-out records are what would settle whether a fourth position is justified.
12.9.25 Council Agenda and Packet Updated
Finance Director Resignation Mayor Kirchmann stated that Finance Director Whitney Kyllo submitted a resignation letter effective July 17, 2025. Attorney Riggs stated that Minnesota law says once the resignation is submitted, it is effective.
Discussion of Finance Director Kyllo's resignation and later of the Public Works Director's resignation.
At the meetingCouncil accepted the resignation effective July 17, 2025.
No statute or case citation supporting the rule appears in our holdings. The same July 8 2025 packet undercuts the rule in practice, since it contains a resolution rescinding a Public Works Director resignation and retaining the employee. A citation to the Minnesota statute or case law on resignation effectiveness is what is missing.
The attorney's rule that a submitted resignation is automatically effective sits in the same packet as a resolution rescinding a resignation and keeping the employee in the job.
7.8.25 Updated Council Packet and Agenda
Motion by Sjolander seconded by Kirchmann to provide a $40 stipend for on-call personnel for use of their personal cell phones based on a conversation with their supervisor and the city administrator.
Council broadened the KMU stipend recommendation to on-call personnel generally.
At the meetingMotion carried 5-0.
No list of approved employees and no budget impact figure exists in our record, so the total cost of the stipend is unknown. Each participating employee costs $480 a year at $40 a month. A roster of approved on-call personnel is what would settle the total.
7.8.25 Updated Council Packet and Agenda
Request to Close the City Office on Friday, June 20 Administrator Lehner requested that the city office be closed on Friday, June 20, 2025.
Administrator update item requesting an office closure.
At the meetingA motion by Sjolander seconded by Brunner to close the office was made; no vote result is recorded in the minutes.
The record shows the motion and the second and then stops, with no vote result, while every other motion in the same minutes carries a tally. Our holdings contain no corrected minutes supplying the count. The approved final minutes or the meeting recording would settle it.
A motion to close the city office was made and seconded with no vote result recorded, unlike every other motion in the same set of minutes.
7.8.25 Updated Council Packet and Agenda
Decisions 12 motions
Who did what
| Person | At this meeting |
|---|---|
| Donald Kirchmann Mayor | Called the meeting to order; relayed KMU Commission recommendations on the phone stipend and Joshua Johnson's grade change; questioned the need for a fourth KMU employee; seconded several motions |
| Kim Helgeson Council Member | Moved to open the public hearing, to adopt Resolution 2025-17, and to accept Whitney Kyllo's resignation |
| Mary Bailey Council Member | Moved to approve the agenda, adopt Resolution 2025-18 without the 8th Street sidewalk alternative, continue the public hearing, and adjourn |
| Lee Sjolander Council Member | Moved to approve the consent agenda, close the city office June 20, provide the $40 on-call stipend, table the Line Worker posting, and acknowledge the rescinded resignation letter; praised Wayne Ehrich |
| Elana Brunner Council Member | Seconded multiple motions and moved to adopt Administrative Policy #38: Debt Management |
| Scott Lehner City Administrator | Reported Corgi Canna's financing difficulty, requested the June 20 office closure, relayed the KMU recommendation to post the Line Worker/Water Operator position, and reported Wayne Ehrich's resignation email |
| Holli Gudknecht Administrative Assistant / Deputy City Clerk | Prepared the agenda and packet items and signed the minutes |
| Whitney Kyllo Finance Director | Explained the city lacked a debt management policy and the bond-rating rationale; submitted a resignation effective July 17, 2025, later rescinded |
| Derek Olinger City Engineer (Bolton & Menk) | Explained revisions to the plans and specifications after the bid rejection and the July 2 bid opening schedule |
| Scott Riggs City Attorney | Noted the hearing was a continuation of the May 13 hearing and advised that a submitted resignation is effective under Minnesota law |
| Matt Bartel Liquor Store Manager | Discussed the L&M Construction quote to remodel the former NAPA building and said two more quotes are expected |
| Brad Falteysek Abdo representative | Presented the 2024 City and KMU audit summary and overview of city financial condition |
| Joshua Johnson KMU employee | Was approved for a move to grade 12, step 2 retroactive to April 15, 2025 |
| Austin Fitch Former Line Worker/Water Operator | Resigned from the position effective May 30, 2025 |
| Wayne Ehrich Public Works Director | Emailed his resignation, effective in 30 days |
| Dylan Pritchard Kenyon Fire Department Volunteer | Appointed as a fire department volunteer on the consent agenda |
| George Eilertson Northland Securities | Recommended the city adopt a debt management policy before the bond rating is completed |
| Brian Homeier Officer | Attended the meeting |
Organizations named: City of Kenyon, Kenyon Municipal Utilities (KMU), Abdo, Bolton & Menk, Inc., Northland Securities, Corgi Canna, L&M Construction Company, Kenyon Municipal Liquor Store, Kenyon Public Library, Kenyon Fire Department, Quest CDN
Figures
| Amount | What |
|---|---|
| $40 | monthly stipend for on-call personnel using their personal cell phones for work |
| $19,765.00 | year-to-date auditing expense in the General Fund (109.81% of the $18,000 budget) |
| $18,000.00 | 2025 budget line for auditing services |
Said at the meeting
The city received an "unmodified" or clean opinion on the audit.
Minutes (Abdo audit presentation) · minutes, verbatim
Administrator Lehner stated that the city was notified by Corgi Canna last evening that they are experiencing difficulty attaining financing, so the project is off the table for now.
Scott Lehner, City Administrator · packet, verbatim
Finance Director Kyllo stated that the city does not have a Debt Management policy.
Whitney Kyllo, Finance Director (via Mayor/minutes) · packet, verbatim
Mayor Kirchmann stated that he didn't think the workload had increased for KMU to justify rehiring a 4th employee.
Donald Kirchmann, Mayor · minutes, verbatim
Attorney Riggs stated that Minnesota law says once the resignation is submitted, it is effective.
Scott Riggs, City Attorney · minutes, verbatim
Council member Sjolander stated he was sorry to hear that, Wayne has been a great employee here.
Lee Sjolander, Council Member · minutes, verbatim
Resolutions and ordinances
- Approving Plans & Specs & Ordering Ad for Bid Motion by Bailey seconded by Helgeson to adopt Resolution 2025-18 with removal of the 8th StreeRes. 2025-18
- Accepting the 2024 Audited Financial Statements Motion by Helgeson seconded by Bailey to adopt Resolution 2025-17: accepting the 2024 auditedRes. 2025-17
Agenda
Each item links to where it appears in the packet.
- I. CALL TO ORDER AND ROLL CALL
- II. CITIZEN COMMENTS
- III. ADOPT AGENDA
- III.A Adopt the Agenda for June 10, 2025
- IV. CONSENT AGENDA
- IV.A Approve Consent Agenda items including:
- V. APPROVAL OF MINUTES and APPOINTMENTS
- V.A City Council Meeting Minutes of May 13, 2025
- VI. PRESENTATIONS/PUBLIC HEARINGS RECOGNITIONS/PROCLAMATIONS
- VI.A Summary of 2024 City Audit - Abdo
- VI.B Continued Assessment Hearing - 2025 Street & Utility Improvements
- VII. ENGINEERING
- VIII. LEGAL
- IX. FINANCIAL
- IX.A Financial Reports and Checks from May
- X. OLD BUSINESS
- X.A Muni Expansion - NAPA Building quotes
- XI. NEW BUSINESS
- XI.A Resolution 2025-17: Accepting the 2024 Audited Financial Statements
- XI.B Administrative Policy #38: Debt Management
- XI.C Approve paying a $40 stipend per month for the use of KMU employee's personal
- XI.D Approve moving Joshua Johnson to grade 12, step 3 retroactive back to April 15.
- XI.E Approve posting the Line Worker/Water Operator position.
- XI.F Finance Director Resignation
- XII. F.Y.I. - Department Updates
- XII.A FYI for June 10, 2025
- XIII. COUNCIL AND STAFF GENERAL COMMENTS
- XIV. ADJOURNMENT
- A. Alley Closure – Kenyon Municipal Liquor Store – Side by Side Run June 28, 2025
- B. Public Library Request to close at 4:30 pm on Thursday, July 3 and be closed on
- A. City Council Meeting Minutes of May 13, 2025
- A. Summary of 2024 City Audit - Abdo
- B. Continued Assessment Hearing – 2025 Street & Utility Improvements
- VII. ADMINISTRATOR UPDATE
- A. Proposed Sale of Land to Corgi Canna
- B. Request to close the city office on Friday, June 20
- A. Muni Expansion-NAPA Building Quotes
- A. Resolution 2025-17: Accepting the 2024 Audited Financial Statements
- B. Administrative Policy #38: Debt Management
- C. Approve paying a $40 stipend per month for the use of KMU employee's personal
- D. Approve moving Joshua Johnson to grade 12, step 3 retroactive back to April 15.
- E. Approve posting the Line Worker/Water Operator position.
- F. Finance Director Resignation
- XIII. OTHER BUSINESS
- A. Schedule of Upcoming Meetings
Full packet text (287k characters)
The minutes
Official minutes as adopted, from 7.8.25 Updated Council Packet and Agenda; text extracted from the PDF.
Council Meeting was duly held in the City Council chambers at 7:00 p.m. on the 10th day of June 2025. The meeting was called to order by Mayor Donald Kirchmann.
- Present
- Mayor Donald Kirchmann, Council Members Kim Helgeson, Mary Bailey, Lee Sjolander, and Elana Brunner
- Absent
- None
- Also present
- City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Finance Director Whitney Kyllo, Engineer Derek Olinger, City Attorney Scott Riggs, Officer Brian Homeier, John Lee, Josh Johnson, Liquor Store Manager Matt Bartel, Chris Kyllo, Brittni Schmitz, Sadie Schmitz, Doug Henke, Randy Eggert, Todd Greseth, Brad Falteysek
The meeting opened with the Pledge of Allegiance.
Citizen Comment
Adopt Agenda
Motion by Bailey seconded by Helgeson to approve the agenda. Motion carried 5-0-0.
Consent Agenda
Motion by Sjolander second by Brunner to approve the Consent Agenda, which includes:
Motion carried 5-0-0Presentations / Public Hearings / Recognitions / Prolamations
Summary of 2024 City Audit - Abdo
Brad Falteysek from Abdo presented a summary of the 2024 City and KMU audits and an overview of the overall City financial condition. The city received an "unmodified" or clean opinion on the audit.
Continued Assessment Hearing - 2025 Street & Utility Improvements
Motion by Helgeson seconded by Bailey to open the public hearing at 7:19 pm.
Motion carried 5-0-0Attorney Riggs stated that this Public Hearing was a continuation of the May 13, 2025 public hearing. No public comments were received. No action regarding the assessments was taken since the project will be rebid in July.
Motion by Bailey seconded by Helgeson to continue the public hearing until July 8, 2025 at 7:00 pm.
Motion carried 5-0-0Administrator Update
Proposed Sale of Land to Corgi Canna
Administrator Lehner stated that the city was notified by Corgi Canna last evening that they are experiencing difficulty attaining financing, so the project is off the table for now.
Request to Close the City Office on Friday, June 20
Administrator Lehner requested that the city office be closed on Friday, June 20, 2025.
Motion by Sjolander seconded by Brunner to close the city office on Friday, June 20, 2025.
ENGINEERING 2025 Street and Utility Improvements – Bid Authorization Engineer Olinger stated that following the rejection of the bids last month, the plans and specifications have been revised to reduce the ability and impact of problematic price structures received during the previous bidding process. If this is approved for bidding tonight, the bids will be opened July 2 with construction beginning as soon as late July. Resolution 2025-18: Approving Plans & Specs & Ordering Ad for Bid
Motion by Bailey seconded by Helgeson to adopt Resolution 2025-18 with removal of the 8th Street sidewalk alternative. Motion carried 5-0-0.
Legal
Financial
Old Business
Muni Expansion – NAPA Building Quotes
Matt Bartel, Liquor Store Manager, discussed the quote he received from L&M Construction to remodel the former NAPA building. He is still expecting to receive two more quotes.
New Business
Resolution 2025-17: Accepting the 2024 Audited Financial Statements
Motion by Helgeson seconded by Bailey to adopt Resolution 2025-17: accepting the 2024 audited financial statements. Motion carried 5-0-0.
Administrative Policy #38: Debt Management
Finance Director Kyllo stated that the city does not have a Debt Management policy. George Eilertson with Northland Securities recommended adopting a Debt Management policy for the city before the bond rating is completed, which will help our bond rating.
Motion by Brunner seconded by Kirchmann to adopt Administrative Policy #38: Debt Management.
Motion carried 5-0-0Approve Paying a $40 Stipend per Month for the Use of KMU Employee's Personal Phones
Mayor Kirchmann stated that the KMU Commission recommended a monthly phone stipend of $40 for KMU employees that use their personal phones for work. His concern was that other departments may also want this stipend.
Motion by Sjolander seconded by Kirchmann to provide a $40 stipend for on-call personnel for use of their personal cell phones based on a conversation with their supervisor and the city administrator.
Motion carried 5-0-0Approve Moving Joshua Johnson to grade 12, step 3 Retroactive Back to April 15. Mayor Kirchmann stated that the KMU Commission recommended moving Joshua Johnson to a grade 12, step 3 retroactive back to April 15, 2025.
Motion by Kirchmann seconded by Bailey to approve moving Joshua Johnson to a grade 12, step 2 retroactive to April 15, 2025. Motion carried 5-0-0.
Approve posting the Line Worker/Water Operator position
Administrator Lehner stated that the KMU Commission recommended posting the Line Worker/Water Operator position. Austin Fitch resigned from this position effective May 30, 2025. Mayor Kirchmann stated that he didn't think the workload had increased for KMU to justify rehiring a 4th employee. The 13 KMU employees had to leave the meeting for an emergency call, so they were not available for questions.
Motion by Sjolander seconded by Bailey to table posting the Line Worker/Water Operator position pending further discussion with the Operations Superintendent. Motion carried 5-0-0.
Finance Director Resignation Mayor Kirchmann stated that Finance Director Whitney Kyllo submitted a resignation letter effective July 17, 2025. Attorney Riggs stated that Minnesota law says once the resignation is submitted, it is effective.
Motion by Helgeson seconded by Bailey to accept the resignation of Whitney Kyllo effective July 17, 2025.
Motion by Sjolander seconded by Kirchmann to acknowledge the rescinded letter from Whitney Kyllo and take it under advisement for discussion by the City Administrator and the personnel committee if needed.
Motion carried 5-0-0Schedule for Upcoming Meetings
KMU Meeting: Tuesday, June 17th @ 2:00 p.m. EDA Meeting: Wednesday, June 25th @ 8 a.m. City Council Meeting: Tuesday, July 8th @ 7 p.m.
Council And Staff General Comments
Administrator Lehner stated that he just received an email from Public Works Director Wayne Ehrich stating he was resigning effective in 30 days. Attorney Riggs added that now that this has been communicated, it is effective.
Council member Sjolander stated he was sorry to hear that, Wayne has been a great employee here.
Motion by Bailey seconded by Brunner to adjourn the meeting at 9:24 p.m. Motion carried 5-0-0.
Holli Gudknecht, Deputy City Clerk Donald Kirchmann, Mayor
Pursuant to due call and notice thereof, a Special City