Watch the meeting
What happened
- Resident Aaron Meyer asked that the bright new light behind the liquor store be toned down or redirected west instead of south.
- Consent agenda approved 4-0-0, including Resolution 2026-07 (gambling premises permit at Kenyon VFW Conrad Osthum Post #141) and Resolution 2026-09 (CMMPA/CMPAS board appointment).
- On-sale liquor license renewals approved for Kenyon Country Club and Cahill Bistro & Bar.
- Payment of check numbers 77838 through 78019 and 7171E through 7260E approved.
- Hires approved for Emiley Schindler and Tate Erlandson as part-time liquor store employees.
- Kelly Kreisler, Jon Meyers and John Cambronne appointed to the Planning Commission; Taylor Eggert appointed to Park and Recreation Committee.
- Council approved hiring Rachel Goven and Heather Dewitz as part-time Administrative Assistants at $23.00 per hour.
- Engineer Olinger proposed updating costs and priorities on the capital finance and improvement plan for five-to-ten-year infrastructure and parks projects.
- Abdo's Jessi Sturtz presented the 2025 third quarter financial report, accepted 4-0-0.
- Resolution 2026-08 adopted accepting Council Member Elana Brunner's resignation effective March 10, 2026 and declaring a council vacancy.
- Administrator Lehner said a KMU Line worker/Water Operator job description was being updated and the position would be posted soon.
- All votes at the meeting carried 4-0-0; meeting adjourned at 8:03 p.m.
What was asked 23 raised · 11 settled
Every question, assignment, pending figure and unsourced claim from this meeting, quoted from the record, each checked against the county, census, listing, bid and budget data we hold.
Remaining work includes the full reconstruction of Langford Ave, final paving in all locations, and all sewer lining. The contract substantial completion date is July 18th.
Status of remaining work including Langford Ave reconstruction, final paving, and sewer lining.
Change Order 2 confirms the contract dates exactly: substantial completion July 18 2026 and ready for final payment August 30 2026, against an original contract price of $2,294,629.25. The city hit the date, with the August 6 2026 pay estimate recording sanitary sewer lining, grouting and manhole rehabilitation substantially complete as of July 17. Change orders had by then cut the contract price by $37,814.00, to $2,256,815.25.
7.14.26 Council Packet Updated Change Order 2; 8-6-26 Council Packet Updated · taken up again 2026-08-06
COUNCIL AND STAFF GENERAL COMMENTS Administrator Lehner invited the Council members to the KMU Commission meeting on Tuesday, March 17 to hear the results of the electric rate study.
Lehner invited council members to hear the rate study results.
At the meetingNo results given at this meeting.
The study produced a five-year electric rate design that reached the council packet by May 12 2026. It raises rates 8.2% in year one then 5.7% a year after that, moving the all-customers street light facilities charge from $25.00 to $27.05 and on to $33.77 by year five, the security light charge from $10.00 to $13.51, and the street light energy charge from $0.14000 to $0.18908 per unit, a rise of 35.1% over five years.
5-12-26 Council Packet Updated, KMU Electric Rate Design · taken up again 2026-05-12
Two televising quotes will be uploaded to the council packet prior to the meeting. Requested Action: Approve quote from Visu-Sewer.
Requested action on the Hwy 60 sewer televising study in advance of a potential state reconstruction.
The council approved the Visu-Sewer quote to televise under Highway 60 on May 12 2026, motion by Bailey and second by Helgeson, carried 5-0-0. The quote is $11,850.00 for 4,913 linear feet.
5-12-26 Council Packet Updated; KENYON_BIDS.md · taken up again 2026-05-12
A pre- construction meeting with the contractor has been scheduled for April 12th. Updates from this meeting will be shared during the April 13th council meeting.
2025 Street & Utility Project work restarting the week of April 13.
Work restarted the week of April 13 2026 as planned, with final completion expected mid-July and the punch list by August 30. Remaining work was the full reconstruction of Langford Avenue from Pine Street to Mogren Hill, final paving in all locations and all sewer lining, and a construction newsletter went to residents on April 6 2026 warning that access would become difficult the week of April 20.
5-12-26 Council Packet Updated; 4-12-26 Council packet · taken up again 2026-05-12
The consideration, which City shall pay to Consultant both the Services performed by Consultant and the expenses incurred by Consultant in performing the Services shall not exceed $8,900, as set forth in Exhibit B and incorporated into this DOCSOPEN\KE215\20\1084098.v5-3/30/26 54 Agreement.
LHB would inspect buildings and report whether the property at 127 Gunderson Blvd qualifies for a redevelopment TIF district.
The council adopted Resolution 2026-13 approving the LHB professional services agreement on April 14 2026, capped at $8,900 for inspecting the buildings and reporting whether 127 Gunderson Boulevard qualifies for a redevelopment tax increment district. LHB is a known bidder to the city, having lost the 2019 Gunderson House historic structure study to Wold Architects at $15,000 after bidding $22,500.
4-12-26 Council packet; KENYON_BIDS.md · taken up again 2026-04-14
A RESOLUTION APPROVING THE DEED GRANT CONTRACT AGREEMENT FOR THE REBOUND REAL ESTATE SUNSET HOMES PROJECT BE IT RESOLVED that the City Council of the City of Kenyon, MN ("City") approves the DEED Grant Contract Agreement between the City of Kenyon and the Department of Employment and Economic Development ("DEED") for the Rebound Real Estate ("Applicant") Sunset Homes Project. The above resolution was adopted by the City Council on April 14, 2026. ____________________________________ Donald Kirchmann Mayor ATTEST:
Grant contract between the City and the Department of Employment and Economic Development.
Resolution 2026-14 approving the grant contract between the city and the Department of Employment and Economic Development for the Rebound Real Estate Sunset Homes project was adopted by the council on April 14 2026. The grant amount and the executed contract are not in anything we hold.
4-12-26 Council packet · taken up again 2026-04-14
approves the Sub-Grant Contract Agreement between the City of Kenyon and Rebound Real Estate ("Applicant") for the Applicant's Sunset Homes Project. The above resolution was adopted by the City Council on April 14, 2026. ____________________________________ Donald Kirchmann Mayor ATTEST: ___________________________________________ Scott Lehner City Administrator DOCSOPEN\KE215\20\1088486.v2-4/9/26 72 AGENDA ITEM NO. VIII.D Agenda Item Summary CITY COUNCIL AGENDA ITEM REPORT DATE: April 14, 2026 SUBMITTED BY: Holli
Pass-through of grant funds to the project applicant.
Resolution 2026-15 approving the sub-grant contract agreement between the city and Rebound Real Estate for the Sunset Homes project was adopted on April 14 2026, the same night as the state grant contract and the LHB inspection agreement. The sub-grant dollar amount is not in anything we hold.
4-12-26 Council packet · taken up again 2026-04-14
City staff is authorized and directed to work with Northland Securities to prepare the Development Program and TIF Plan for the TIF District and to forward documents to the appropriate taxing jurisdictions including Goodhue County and Kenyon-Wanamingo School District No. 2172.
Calling a public hearing on Municipal Development District No. 2 and TIF District No. 2-1.
The staff work was completed and the districts were created. Resolution 2026-12 directed publication in the official newspaper not later than ten nor more than thirty days before June 9 2026 and forwarding of the Development Program and TIF Plan to Goodhue County and Kenyon-Wanamingo School District No. 2172. On June 30 2026 the council adopted Resolution 2026-18 creating Municipal Development District No. 2 and TIF District No. 2-1, a redevelopment district for the apartment building, alongside Resolution 2026-20 for an interfund loan.
4-12-26 Council packet; KENYON_INCENTIVES.md · taken up again 2026-06-30
This Council shall meet on June 9, 2026, at approximately 7:00 P.M., or on such other date and time as determined by the City Administrator, to hold a public hearing on the proposed establishment of the Development Program for the Municipal Development District No. 2 (the "Development Program"), the proposed establishment of the Tax Increment Financing District No. 2-1 (the "TIF District"), and the proposed adoption of a Tax Increment Financing Plan (the "TIF Plan") therefor (referred to collectively herein as the
Public hearing set for approximately 7:00 P.M. or another date set by the City Administrator.
The hearing was called for June 9 2026 at approximately 7:00 p.m. under Minnesota Statutes sections 469.124 to 469.133 and 469.174 onward, and the districts were adopted by Resolution 2026-18 on June 30 2026. The assistance that followed is the largest in the city's record, $1,855,000 of tax increment over 26 years approved on May 18 2026, more than double the $800,000 Northland Securities had recommended.
4-12-26 Council packet; KENYON_INCENTIVES.md · taken up again 2026-06-30
XI.A Agenda Item Summary CITY COUNCIL AGENDA ITEM REPORT DATE: April 14, 2026 SUBMITTED BY: Holli Gudknecht, Administration ITEM TYPE: New Business AGENDA SECTION: NEW BUSINESS SUBJECT: LMCIT Liability Coverage Waiver SUGGESTED ACTION: The Council is required to choose either to waive or not to waive the monetary insurance liability limits annually.
League of Minnesota Cities Insurance Trust liability coverage waiver form.
The council decided on May 12 2026 to follow past city precedent and not waive the state liability limits, motion by Helgeson and second by Kirchmann, carried 5-0-0. The signed League of Minnesota Cities Insurance Trust form is not in anything we hold.
5-12-26 Council Packet Updated · taken up again 2026-05-12
SUBJECT: Creative Planning 2025 Audit Review SUGGESTED ACTION: ATTACHMENTS: 40 Agenda Item Summary CITY COUNCIL AGENDA ITEM REPORT DATE: April 14, 2026 SUBMITTED BY: Holli Gudknecht, Administration ITEM TYPE: Administrator Update AGENDA SECTION: ADMINISTRATOR UPDATE SUBJECT: ADMINISTRATOR UPDATE 1. Part-time Employee Update 2. KMU Job Description 3. Police Department Staffing Update SUGGESTED ACTION: ATTACHMENTS: 41 AGENDA ITEM NO. VII.A Agenda Item Summary CITY COUNCIL AGENDA ITEM REPORT DATE: April 14, 2026
Scheduled presentation item on the next council agenda.
Dustin Opatz, audit director at Creative Planning, presented a summary of the 2025 city and KMU audits and an overview of the city's financial condition on May 12 2026, and the council acknowledged receipt 5-0-0. The audit forced real corrections, since the August 2026 cash statements attribute movements in several funds to the reversal of a cash deficit loan from the 2025 audit. Creative Planning was back on the agenda again in September 2026.
Our bid record shows the auditing contract awarded to BerganKDV at $27,540 in December 2024, while the 2025 audit was presented by Creative Planning, and nothing in the record explains the change of firm name.
5-12-26 Council Packet Updated; 8-6-26 Council Packet Updated · taken up again 2026-05-12
ENGINEERING Capital Finance and Improvement Plan 37 Engineer Olinger stated that with several large infrastructure projects on the five-to-ten-year outlook and building momentum for some parks/recreation-related projects, they would like to update the costs and priority of the items listed on the capital finance and improvement plan with.
Engineering item noting several large infrastructure projects on the five-to-ten-year outlook plus parks/recreation projects.
At the meetingNo action taken; presented as an intention.
No revised capital finance and improvement plan appears in anything we hold, only the engineer's statement of intent. The pressure behind it is documented: several large infrastructure projects sit on the five to ten year outlook, and by September 2026 the city was weighing outsourced against in-house finance staffing partly on long-term planning capacity. A dated plan document with updated costs and priorities would settle it.
4-12-26 Council packet; 9-8-26 Council Packet
The Council vacancy created by Brunner's resignation requires an appointment by the Council for the remainder of 2026.
Resolution 2026-08 declared a vacancy after Council Member Elana Brunner resigned effective March 10, 2026.
At the meetingCouncil adopted Resolution 2026-08 declaring the vacancy; no appointee named.
The council adopted Resolution 2026-08 accepting Brunner's resignation and declaring the vacancy, carried 4-0-0, but no appointment to fill it appears in anything we hold. The seat problem then compounded, because Council Member Mary Bailey also resigned, and on June 9 2026 the council adopted Resolution 2026-17 on Attorney Riggs's advice that Bailey resign effective immediately and be reappointed until the November special election. A council motion naming Brunner's successor would settle it.
4-12-26 Council packet; 6.9.26 Council Packet and Agenda
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS ADMINISTRATOR UPDATE Administrator Lehner stated that he has been working with the KMU staff to update the Line worker/Water Operator job description and this position should be posted soon.
Administrator update on staffing at Kenyon Municipal Utilities.
The job description update kept appearing on agendas without producing a posting. It ran as a standing administrator update item in April and again in May 2026, with no posting date recorded anywhere we hold. The position has been vacant since Austin Fitch resigned in May 2025, so the gap stands at a year or more.
4-12-26 Council packet; 5-12-26 Council Packet Updated
The Council vacancy created by Brunner's resignation requires an appointment by the Council for the remainder of 2026. The remaining two years of the term will be put on the ballot for the November election.
Explanation of how the vacated council seat will be filled beyond 2026.
At the meetingStated as the plan; no further action taken.
The city did prepare for November balloting, adopting election judges on July 14 2026 for the August 11 primary and the November 3 general election, and the council used the same mechanism again for the Bailey seat, resigning and reappointing so that vacancy could also go on the November ballot. No filing confirmation for the Brunner seat specifically appears in anything we hold. The county or city filing record for the 2026 general election would settle it.
7.14.26 Council Packet Updated; 6.9.26 Council Packet and Agenda
This information will provide more clarity on the prioritization of sewer needs in this area, and whether or not city utility replacement needs to be incorporated into the state's project. Two televising quotes will be uploaded to the council packet prior to the meeting.
Hwy 60 sewer televising item prepared for the next council meeting.
The two televising quote documents are not in our archive. Our record confirms two quotes were received and that Visu-Sewer took the award on May 12 2026, with no amounts recorded.
KENYON_BIDS.md
This information will provide more clarity on the prioritization of sewer needs in this area, and whether or not city utility replacement needs to be incorporated into the state's project.
Infrastructure study for utility mains below Hwy 60 ahead of a potential reconstruction in 2030 or later.
The televising was authorized on May 12 2026 but no inspection report, prioritization finding or MnDOT coordination appears in anything we hold. The decision it feeds is whether city utility replacement must ride along with a state reconstruction of Highway 60 currently anticipated for 2030 or later. The completed televising report with pipe condition codes would settle it.
5-12-26 Council Packet Updated
Quote assumes work will be available to complete while TV/CIPP crew is on site completing CIPP project. ▪ Excludes professional traffic control and flaggers. ▪ If additional cleaning passes or removal of obstructions are needed, this work will be performed at the same hourly rate of $395.00/HR. ▪ 30 hours is the estimated time to complete.
Quote submitted for the Hwy 60 sanitary televising work.
The quote is 30 hours at $395.00 an hour for $11,850.00, and no record of actual hours billed appears in anything we hold. The structure matters more than the total, because an hourly quote carries the overrun risk while the competing bid was priced by the foot, and Visu-Sewer's terms exclude mobilization, exclude professional traffic control and flaggers, assume the work happens while their lining crew is already on site, and charge additional cleaning passes or obstruction removal at the same hourly rate. The final invoice would settle whether 30 hours held.
4-12-26 Council packet, Visu-Sewer quote
Estimated Total: $18,943.80 Total w/o TC $13,423.80 Additional Items that may be needed on a per Incident Basis* 1 Jet Vac Truck w/operator HR 1 $268.00 2 Televising Truck HR 1 $253.00 3 Lateral launch for Services EA quote on a per incident 4 360 degree Manhole Scanning Video Inspections EA quote on a per incident 5 Additional Tech (if needed) HR 1 $105.00 6 Per Diem for 2-person crew (for additional work) Daily 1 $400.00 *Additional items will be tracked in half-hour increments Please note: We share our hourly
Competing quote for cleaning and televising 4,913 LF of 8-12 inch sanitary main.
The Empire Pipe Services figures are not in our archive and no side-by-side scope comparison exists in our record. Empire Pipe Services previously won city televising work at $12,782.68 for Pearl Creek in April 2022, against Pipe Services at $18,246.53 and American Environmental at $29,264.
KENYON_BIDS.md
State statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence.
Background for the LMCIT liability waiver decision.
We hold no Minnesota tort liability statute text, so the $500,000 per claimant and $1,500,000 per occurrence caps cannot be verified directly. The figures are consistent across the city's own April and May 2026 documents and with the commercial general liability requirement of not less than $1,500,000 per occurrence that the city imposes on its own contractors. The statute itself and the insurance trust's coverage schedule would settle it.
5-12-26 Council Packet Updated; 4-12-26 Council packet
Cities can purchase additional insurance coverage up to $2,000,000 annually. In the past, the Council has chosen to not waive LMCIT State Liability limits.
Staff background recommending consistency with prior practice on the annual waiver.
The council acted on the stated precedent, voting 5-0-0 on May 12 2026 to follow past city practice and not waive the limits. We hold no signed waiver forms from prior years, so the precedent itself rests on the staff summary alone. Prior years' executed forms would confirm it.
5-12-26 Council Packet Updated · taken up again 2026-05-12
Part-time Employee Update 2. KMU Job Description 3. Police Department Staffing Update SUGGESTED ACTION: ATTACHMENTS: 41 AGENDA ITEM NO.
Listed administrator update topics along with part-time employee and KMU job description updates.
The police staffing update became a standing item rather than a resolved question, appearing on the administrator update in April, May and September 2026 without any headcount reaching the record. What we can date is the hiring activity around it: the council approved hiring part-time officers 5-0-0 in early 2026, a full-time officer was still in background check in July 2026, and the city posted a full-time police officer job on July 28 2026 at $33.54 an hour entry. A staffing roster with authorized and filled positions would settle it.
4-12-26 Council packet; 5-12-26 Council Packet Updated; data/jobs.csv
CITIZEN COMMENT Aaron Meyer, who lives at 322 Red Wing Avenue stated that the new light behind the liquor store is so bright that it shines into his house across the alley. He would like to have it toned down or moved so it shines west instead of south.
Citizen comment about light pollution from a new light installed behind the municipal liquor store.
At the meetingAdministrator Lehner said he was aware of the issue and is working to find a satisfactory solution.
Nothing we hold records what was done about the light behind the liquor store. Lehner said he was aware and working on a satisfactory solution, and the matter does not appear again in any later passage. A work order re-aiming or shielding the fixture, or a follow-up note to the resident, would settle it.
4-12-26 Council packet · would settle it: A decision and work order on re-aiming, shielding, or dimming the fixture, and confirmation to the resident
Decisions 5 motions
Who did what
| Person | At this meeting |
|---|---|
| Don Kirchmann Mayor | Called the meeting to order, seconded the motion accepting the third quarter financial report, and thanked Elana Brunner for her time on the council |
| Kim Helgeson Council Member | Moved to approve the hire of the two part-time Administrative Assistants and reminded everyone of the Park and Rec Easter Egg Hunt on April 4 |
| Lee Sjolander Council Member | Moved to approve the agenda and the consent agenda; thanked Elana Brunner for her council service |
| Mary Bailey Council Member | Moved to accept the third quarter financial report, moved adoption of Resolution 2026-08, and moved to adjourn |
| Elana Brunner Council Member | Absent; submitted her resignation effective March 10, 2026, creating a council vacancy |
| Scott Lehner City Administrator | Reported on the KMU job description update, requested the part-time Administrative Assistant hires, reported Brunner's resignation, invited Council to the KMU electric rate study results, and thanked Sue Dodds |
| Holli Gudknecht Administrative Assistant / Deputy Clerk | Recorded and signed the minutes; prepared agenda item reports |
| Derek Olinger Engineer (Bolton & Menk, City Engineer) | Presented the need to update costs and priorities in the capital finance and improvement plan |
| Scott Riggs City Attorney | Attended the meeting |
| Armani Tucker Officer | Attended the meeting |
| Jeff Sjoblom Police Chief | Attended the meeting |
| Aaron Meyer Resident, 322 Red Wing Avenue | Gave citizen comment about the bright light behind the liquor store shining into his house |
| Jessi Sturtz Abdo | Reviewed the 2025 third quarter financial report |
| Rachel Goven Part-time Administrative Assistant hire | Attended the meeting and was approved for hire at $23.00 per hour |
| Heather Dewitz Part-time Administrative Assistant hire | Attended the meeting and was approved for hire at $23.00 per hour |
| Sue Dodds Retired staff assisting the office | Attended the meeting and was thanked by Administrator Lehner for coming out of retirement to help in the office |
| Emiley Schindler Part-Time Liquor Store Employee | Hire approved on the consent agenda |
| Tate Erlandson Part-Time Liquor Store Employee | Hire approved on the consent agenda |
| Kelly Kreisler Planning Commission appointee | Appointment approved on the consent agenda |
| Jon Meyers Planning Commission appointee | Appointment approved on the consent agenda |
| John Cambronne Planning Commission appointee | Appointment approved on the consent agenda |
| Taylor Eggert Park and Recreation Committee appointee | Appointment approved on the consent agenda |
| Josh Johnson Attendee | Attended the meeting |
Organizations named: Kenyon Firemen's Relief Association, Kenyon VFW Conrad Osthum Post #141, CMMPA (Central Minnesota Municipal Power Agency), CMPAS (Central Municipal Power Agency/Services), Kenyon Country Club, Cahill Bistro & Bar, Abdo, Kenyon Municipal Utilities (KMU), Bolton & Menk, Kenyon Planning Commission, Kenyon Park and Recreation Committee, Kenyon EDA
Figures
| Amount | What |
|---|---|
| $23.00 | hourly wage approved for both part-time Administrative Assistants, Rachel Goven and Heather Dewitz |
Said at the meeting
He would like to have it toned down or moved so it shines west instead of south.
Aaron Meyer, resident of 322 Red Wing Avenue · minutes, verbatim
Administrator Lehner said he was aware of this issue and is working to find a satisfactory solution.
City Administrator Scott Lehner · minutes, verbatim
Administrator Lehner requested approval to hire two part-time Administrative Assistants to support both the City Administrator and other staff to help ensure the continuation of operational efficiencies of the City.
City Administrator Scott Lehner · packet, verbatim
The remaining two years of the term will be put on the ballot for the November election.
City Administrator Scott Lehner (on Brunner resignation) · packet, verbatim
Council Member Sjolander thanked Elana Brunner for her time on the council.
Council Member Lee Sjolander · packet, verbatim
Council Member Bailey thanked everyone who does math and takes care of the budget.
Council Member Mary Bailey · packet, verbatim
Resolutions and ordinances
- Approving the Lawful Gambling Premises Permit Application for the Kenyon Firemen's Relief Association to Conduct Lawful Gambling at the KenyoRes. 2026-07
- Making City Appointment to CMMPA and CMPAS Board of Directors On-Sale Liquor License Renewal- Kenyon Country Club On-Sale Liquor License ReneRes. 2026-09
- Declaring a Vacancy to Exist in the Office of City Council and Providing for the Appointment Thereof Motion by Bailey seconded by Helgeson toRes. 2026-08
- Approving_the_LHB_Professional_Services_AgreementRes. 2026-13
- Approving the DEED Grant Contract Agreement for the Rebound Real Estate Sunset Homes Project SUGGESTED ACTION: MOTION NEEDED ATTACHMENTS: ResRes. 2026-14
- Approving the Sub-Grant Contract Agreement for the Rebound Real Estate Sunset Homes Project SUGGESTED ACTION: MOTION NEEDED ATTACHMENTS: ResoRes. 2026-15
- Calling for a Public Hearing by the City Council on the Proposed Establishment of the Development Program for Municipal Development DistrictRes. 2026-12
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 3-10-26
- IV. CONSENT AGENDA
- IV.A Consent Agenda
- V.A APPROVAL OF:
- VI. PRESENTATIONS/PUBLIC HEARINGS RECOGNITIONS/PROCLAMATIONS
- VII. ENGINEERING
- VII.A Capital Improvement Planning
- VIII. LEGAL
- IX. FINANCIAL
- IX.A January and February 2026 Financial Reports and Payment of Claims
- X. OLD BUSINESS
- X.A Administrative Assistant Position
- XI. NEW BUSINESS
- XI.B Council Member Brunner Resignation
- XII. F.Y.I. - Department Updates
- XII.A FYI - 3/10/26
- XIII. COUNCIL AND STAFF GENERAL COMMENTS
- XIV. ADJOURNMENT
- A. Resolution 2026-07: Approving the Lawful Gambling Premises Permit Application
- B. Resolution 2026-09: Making City Appointment to CMMPA and CMPAS Board of
- C. On-Sale Liquor License Renewal- Kenyon Country Club
- D. On-Sale Liquor License Renewal- Cahill Bistro & Bar
- A. City Council Meeting Minutes of January 13, 2026
- B. City Council Special Meeting Minutes of January 28, 2026
- C. City Council Special Closed Meeting Minutes of January 28, 2026
- E. Approve Hire of Emiley Schindler, Part-Time Liquor Store Employee
- F. Approve Hire of Tate Erlandson, Part-Time Liquor Store Employee
- G. Approve Appointment of Kelly Kreisler, Jon Meyers, and John Cambronne to the
- H. Approve Appointment of Taylor Eggert to Park and Recreation Committee
- VII. ADMINISTRATOR UPDATE
- A. Capital Finance and Improvement Plan
- A. Administrative Assistant Position
- B. Council Member Brunner Resignation
- XIII. OTHER BUSINESS
- A. Schedule of Upcoming Meetings
Full packet text (276k characters)
The minutes
Official minutes as adopted, from 4-12-26 Council packet (1); 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 March 2026. The meeting was called to order by Mayor Kirchmann.
- Present
- Mayor Don Kirchmann, Council Members Kim Helgeson, Lee Sjolander, Mary Bailey
- Absent
- Elana Brunner
- Also present
- City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Engineer Derek Olinger, City Attorney Scott Riggs, Officer Armani Tucker, Josh Johnson, Aaron Meyer, Sue Dodds, Heather Dewitz, Rachel Goven, Jeff Sjoblom
The meeting opened with the Pledge of Allegiance.
Citizen Comment
Aaron Meyer, who lives at 322 Red Wing Avenue stated that the new light behind the liquor store is so bright that it shines into his house across the alley. He would like to have it toned down or moved so it shines west instead of south. Administrator Lehner said he was aware of this issue and is working to find a satisfactory solution.
Adopt Agenda
Motion by Sjolander seconded by Bailey to approve the agenda. Motion carried 4-0-0.
Consent Agenda
Motion by Sjolander second by Helgeson to approve the amended Consent Agenda, which includes:
Motion carried 4-0-0Presentations / Public Hearings / Recognitions / Prolamations
Administrator Update
Administrator Lehner stated that he has been working with the KMU staff to update the Line worker/Water Operator job description and this position should be posted soon.
Engineering
Capital Finance and Improvement Plan
Engineer Olinger stated that with several large infrastructure projects on the five-to-ten-year outlook and building momentum for some parks/recreation-related projects, they would like to update the costs and priority of the items listed on the capital finance and improvement plan with. LEGAL
Old Business
Administrative Assistant Position
Administrator Lehner requested approval to hire two part-time Administrative Assistants to support both the City Administrator and other staff to help ensure the continuation of operational efficiencies of the City.
Motion by Helgeson seconded by Bailey to approve the hire of both Rachel Goven and Heather Dewitz as part- time Administrative Assistants at $23.00 per hour. Motion carried 4-0-0.
New Business
2025 3rd Quarter Financial Report – Abdo Jessi Sturtz from Abdo reviewed the third quarter financial report.
Motion by Bailey seconded by Kirchmann to accept the third quarter financial report.
Motion carried 4-0-0Council Member Brunner Resignation
Administrator Lehner reported that Elana Brunner submitted her resignation effective March 10, 2026. The Council vacancy created by Brunner's resignation requires an appointment by the Council for the remainder of 2026. The remaining two years of the term will be put on the ballot for the November election. Resolution 2026-08: Declaring a Vacancy to Exist in the Office of City Council and Providing for the Appointment Thereof
Motion by Bailey seconded by Helgeson to adopt Resolution 2026-08 accepting Brunner's resignation and declaring a vacancy to the city council. Motion carried 4-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, March 17th @ 3:00 p.m. EDA Meeting: Tuesday, March 24th @ 8 a.m. City Council Meeting: Tuesday, April 14th @ 7 p.m.
Council And Staff General Comments
Administrator Lehner invited the Council members to the KMU Commission meeting on Tuesday, March 17 to hear the results of the electric rate study. He also thanked Sue Dodds for all her help in the office over the past few months. Her willingness to come out of retirement to help us was appreciated. He also welcomed Rachel and Heather.
Council Member Sjolander thanked Elana Brunner for her time on the council.
Council Member Bailey thanked everyone who does math and takes care of the budget.
Mayor Kirchmann thanked Elana Brunner for her time on the council.
Council Member Helgeson reminded everyone of the Easter Egg Hunt that Park and Rec are sponsoring on April 4.
Motion by Bailey seconded by Helgeson to adjourn the meeting at 8:03 p.m.
Motion carried 4-0-0Holli Gudknecht, Deputy Clerk Donald Kirchmann, Mayor
AGENDA ITEM NO. VI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Miscellaneous
Agenda Section: Presentations / Public Hearings
RECOGNITIONS/PROCLAMATIONS
SUBJECT: Creative Planning 2025 Audit Review
Suggested Action:
Attachments:
Agenda Item Summary CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Administrator Update
Agenda Section: Administrator Update
Subject:
ADMINISTRATOR UPDATE
1. Part-time Employee Update 2. KMU Job Description 3. Police Department Staffing Update
Suggested Action:
Attachments:
AGENDA ITEM NO. VII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Engineering
ITEM TYPE: Engineering
Agenda Section: Engineering
SUBJECT: Hwy 60 Sewer Televising
Suggested Action:
Last year, we discussed the need for an infrastructure study for utility mains below Hwy 60 in Kenyon, in preparation for a potential reconstruction in 2030 or later. In order to move forward with this study, we need to review televising of sanitary mains within the state right-of-way. This information will provide more clarity on the prioritization of sewer needs in this area, and whether or not city utility replacement needs to be incorporated into the state's project. Two televising quotes will be uploaded to the council packet prior to the meeting.
Requested Action:
Approve quote from Visu-Sewer.
Attachments:
TH 60 Televising Request Map 2026.pdf
Visu-Sewer_Kenyon - Clean & TV Quote.pdf Roto Rooter_Televizing Quote.pdf Empire_Kenyon, MN 04-14-26.pdf
Kenyon GIS TH 60 Sanitary Televising
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Was hington St 8" 8" 8" 3/30/2026, 9:31:13 AM 1:4,514 0 0.04 0.07 0.14 mi Sanitary Manhole Sanitary Service Lines Parcels - Goodhue Co. 0 0.05 0.1 0.2 km Sanitary Pipe Flow Arrow Sanitary Pipe Size Label City Limits Sanitary Pipe Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community, Vantor
Earthstar Geographics | Esri, TomTom, Garmin, FAO, NOAA, USGS, EPA, USFWS | 43
QUOTATION – CITY OF KENYON, MN TH 60 SANITARY TELEVISING, APRIL 2026 VISU-SEWER, LLC W230 N4855 BETKER DRIVE PEWAUKEE, WI 53072
April 9th, 2026 _______________________________________________________________________________________ Visu-Sewer is pleased to submit this quotation to perform the following services as part of the above- referenced project:
Item No. Description Unit Qty Unit Price Total Price
Clean & Televise 4,913 LF San Sewer 30 HR $ 395.00 $ 11,850.00 TOTAL $ 11,850.00
These unit prices include labor and equipment to complete the project in accordance with the plans and specifications pursuant to the following conditions:
▪ City to provide the following at no cost: permits, detailed maps with naming conventions, water from nearby hydrants, dump site for captured debris, access to manholes, traffic control beyond basic signs and cones. ▪ Visu-Sewer shall include one (1) pass with a jet for light cleaning prior to televising mainlines, video data, inspection reports with PACP codes and defect still photos. ▪ Excludes mobilization costs. Quote assumes work will be available to complete while TV/CIPP crew is on site completing CIPP project. ▪ Excludes professional traffic control and flaggers. ▪ If additional cleaning passes or removal of obstructions are needed, this work will be performed at the same hourly rate of $395.00/HR. ▪ 30 hours is the estimated time to complete.
Thank you for the opportunity to quote on this project. Please contact Josh Regner at 414-491-2460 if you have any questions. _____________________________________________________________________________________________________________________________ _ All material guaranteed to be as specified. All work to be completed in a substantial workmanlike manner according to specifications submitted, per standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Workmen's Compensation Insurance. This proposal may be withdrawn if not accepted within 30 days of issue. Time and material rates are charges "port to port". Terms - Net 30 days.
Acceptance of Proposal
The above prices, specifications and conditions are satisfactory and are hereby accepted. Visu-Sewer, LLC is authorized to do the work as specified.
Date: _________________ Signature: ______________________________________
Page 1 of 1 44 45
Base Quote
12,773.80 April 14, 2026
Proposal Submitted To: City of Kenyon 709 Second Street Kenyon, MN 55946 Attn: Derek Olinger@ Bolton & Menk
Job Name/ Location: TH-60 Sanitary Sewer Televising Investigation, Kenyon, MN
We hereby submit the following specifications per these scope clarifications:
• Our proposal is based off the RFQ and Maps received • Sewer Maps/Plans will need to be provided, and manholes need to be exposed prior • We assume all manholes are accessible by street or with in the boulevard • Cleaning includes up to (2) cleaning passes, over (3) will be considered "heavy cleaning" • Upon completion of the cleaning, it may be necessary to dispose of debris we will need a location to dispose of the Sanitary waste • We assume to have access to water at no additional charge to conduct cleaning • Our prices are based off this volume; of footage a significant reduction may result in a per foot price increase • (3) hard copies of formatted reports & (3) digital copies on USB drives will be provided • Our technicians are PACP certified (Pipeline Assessment Certification Program) and the video will be conducted per PACP guidelines if requested • If needed our televising software is GIS compatible • If a reverse setup is required due to pipe conditions this will be an additional charge • No Dye Testing is included at this time • Traffic Control and permits are included per MNDOT requirements, see quote items • 360-degree Manhole Scan Inspections available
All material is guaranteed to be as specified. All work to be completed in a substantial workmanlike manner according to specifications submitted per standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents, or delays beyond our control. Owner to carry fire, tornado, and other necessary insurance. Our workers are fully covered by Workman's Compensation Insurance.
Authorized Signature: Shawn Wenner
Acceptance of Proposal The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.
_____________ ________________________ Date of Acceptance Authorized Signature
Page 1 of 2
April 14, 2026
City of Kenyon 709 Second Street Kenyon, MN 55946
Attn: Derek Olinger @ Bolton & Menk
TH-60 Sanitary Sewer Televising Investigation
Estimated Estimated Total Item No. Item Description Unit Unit Price Quantity Price 1 Mobilization EA 1 $650.00 $650.00 Cleaning & Televising of 8-12"existing Sanitary Sewer 2 Mains per maps provided LF 4,913 $2.60 $12,773.80 3 Traffic Control Flagging (2) person crew HR 16 $230.00 $3,680.00 Traffic Control Flagging (4) person crew for Hwy 60 & 4 Hwy 56 Intersection HR 4 $460.00 $1,840.00 Estimated Total: $18,943.80 Total w/o TC $13,423.80 Additional Items that may be needed on a per Incident Basis* 1 Jet Vac Truck w/operator HR 1 $268.00 2 Televising Truck HR 1 $253.00 3 Lateral launch for Services EA quote on a per incident 4 360 degree Manhole Scanning Video Inspections EA quote on a per incident 5 Additional Tech (if needed) HR 1 $105.00 6 Per Diem for 2-person crew (for additional work) Daily 1 $400.00 *Additional items will be tracked in half-hour increments
Please note: We share our hourly rates for the "Additional Items" in confidence we ask that you only use this information for city purposes.
Acceptance of Proposal The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.
________________ _________________________ Shawn Wenner, CEO Empire Pipe Services Date of Acceptance Authorized Signature
Page 2 of 2
AGENDA ITEM NO. VII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Engineering
ITEM TYPE: Engineering
Agenda Section: Engineering
Subject:
2025 Street & Utility Project
Suggested Action:
Work is planned to restart during the week of April 13th. A pre- construction meeting with the contractor has been scheduled for April 12th. Updates from this meeting will be shared during the April 13th council meeting. Remaining work includes the full reconstruction of Langford Ave, final paving in all locations, and all sewer lining. The contract substantial completion date is July 18th. A resident newsletter was sent out earlier this week and is attached for reference.
Requested Action:
None – information only.
Attachments:
2026-04-06 Newsletter.pdf
48 2025-26 Street & Utility Improvement Project Construction Newsletter April 6th, 2026 Project Schedule Schedule Langford Ave 2026 Start: April Reconstruction work within Langford Ave (Pine St to Mogren Hill) is scheduled 2026 End: Mid-July to restart during the week of April 13th. Work in this area will include the complete replacement of pavement, water piping and storm sewer. During this first week, crews will be setting up temporary water service – they may need to access your home/building to make this connection. During the week of April 20th, surfaces will be removed and access will become much more difficult. Please park on side streets when access to your driveway is not provided. Additional detail is provided on the next page.
8th Street, 5th Street & 2nd Street City of Kenyon Work in these areas is mostly complete. Some punch list repairs and turf City Hall 709 2nd Street reestablishment are still needed. Where another layer of asphalt is needed, Kenyon, MN 55946 paving will occur in early summer
Sewer Lining (Green areas on map) Over this spring, you'll see crews accessing the sewer mains through manholes in the middle of the road. Some minor traffic impacts are expected; but construction should not cause significant impacts to residents. Residents in these areas will receive a separate notice with additional information once Project Engineering Firm work starts Bolton & Menk, Inc.
Derek Olinger, P.E. Kenyon City Engineer Cell: (507) 525-2685 Contacts derek.olinger@bolton-menk.com Your best source of information throughout the project will be the city engineer, Derek Olinger. Reach Derek anytime at 507-525-2685 or derek.olinger@bolton-menk.com
Text or Email Updates
Sign up for text or emailed versions of construction newsletters to receive more timely information on the project. Sign up using the url below or QR code to the left https://clients.bolton-menk.com/kenyonstreetandutility/
(Continued the other side) 49 2025 Street & Utility Improvement Project Information for Langford Ave Disruptions to Electrical and Water Service Property Access Water service will be provided throughout most of construction. However, planned short term shut-downs During construction, access through the construction and disruptions will occur. During these times, residents zone will be difficult and/or limited depending on the will be provided a notice delivered to the front door. construction activity taking place. Local traffic should If your water service is connected to a watermain within obey road closed signs and find alternate routes around the project, your residence will be connected to a the active construction zone. temporary water supply system until the new piping is When possible, the contractor will provide temporary installed and tested. This may result in a decrease in gravel for driveway access within the construction site. water pressure and warmer than normal water. Direct driveway access may be limited during the day Installation of temporary service will require entry into when excavation and other construction activity is your home. If you have any concerns with this, please occurring adjacent to driveways. In addition, when contact us. concrete curb, walk, and driveways are being Temporary water service generally requires a functional constructed, access to driveways will be restricted for outdoor water spigot and leak-free indoor plumbing. If extended periods. your spigot does not work, or if you know of any other Wet weather will also make access difficult for periods of plumbing issues in your basement, they need to be time. Please monitor the weather throughout the repaired by you as soon as possible. Please call with summer and plan accordingly. If rain is forecasted, questions. residents are advised to park on adjacent streets so Short-term interruptions to electrical service will also vehicles are not trapped in driveways or stuck in mud. occur. You will be notified of any planned interruptions. Please also be advised that if you choose to drive on the closed road, there can sometimes be construction debris Private Improvements in Right-of-Way or other items that can damage vehicles. Driving through If you have improvements such as landscaping, retaining the construction site is at your own risk. If you are walls, shrubs, bushes, flowers, sheds, irrigation systems, concerned about access during construction, or have etc. in the right-of-way, it is not the contractor's questions, please contact us. responsibility to work around them. The property owner is responsible for securing these private improvements and moving them if necessary to allow the project to be Garbage and Mail constructed. Neither the contractor nor City is Garbage and recycling collection will continue its regular responsible for damages incurred to these schedule during construction. You should set your improvements. Any underground improvements, such as garbage and recycling containers out as you normally irrigation lines, dog fences, etc., should be located so would. During times when the garbage truck is unable to they are readily visible. Contact us with any questions. access the front of your property, the contractor will Safety within the Work Area label and move them to an accessible location for pickup and return them to you after collection. It is very common on these types of projects that area residents (especially children) become quite curious Mail delivery will not be affected by the project. about the work the Contractor is performing. We ask that you please be respectful of and stay well clear of construction zones. Many hazards and dangers exist from heavy machinery, trenches, loose material, confined spaces, hot asphalt, etc. and often times are not recognizable by the general public. The Contractor has responsibility to ensure safety on the project and within the construction area. Any direction from the Contractor regarding safety must be heeded; likewise, if you observe an unsafe condition please report it to us immediately.
50 51 AGENDA ITEM NO. VIII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
Agenda Section: Legal
SUBJECT: Resolution 2026-13: Approving the Professional Services Agreement
with LHB, Inc.
Suggested Action: Motion Needed
Attachments:
Resolution 2026-13 Approving_the_LHB_Professional_Services_Agreement.docx
PROFESSIONAL_SERVICES_AGREEMENT_LHB_Kenyon.DOCX
RESOLUTION NO. 2026-13 CITY OF KENYON COUNTY OF GOODHUE STATE OF MINNESOTA
A Resolution Approving The Professional
SERVICES AGREEMENT WITH LHB, INC.
BE IT RESOLVED that the City Council of the City of Kenyon, MN ("City") approves the Professional Services Agreement between the City of Kenyon and LHB, Inc. for the Rebound Real Estate ("Applicant") Sunset Homes Project. The above resolution was adopted by the City Council on April 14, 2026.
____________________________________ Donald Kirchmann Mayor ATTEST:
___________________________________________ Scott Lehner City Administrator
DOCSOPEN\KE215\20\1088466.v3-4/9/26 53 PROFESSIONAL SERVICES AGREEMENT LHB, INC.
THIS AGREEMENT is made on April ___, 2026 ("Effective Date") by and between LHB, INC., a Minnesota corporation located at 701 N. Washington Ave, Suite 200, Minneapolis, MN 55401 ("Consultant"), and the CITY OF KENYON, a Minnesota municipal corporation, located at 709 Second Street, Kenyon, MN 55946 ("City"):
Recitals
A. Consultant is engaged in the business of inspecting the interior and exterior of buildings, analyzing whether buildings are blighted, and whether the parcels within a proposed tax increment district meet the requirements of a redevelopment tax increment district pursuant to Minn. Stat. Section 469.174, subd. 10.
B. City intends to create a redevelopment tax increment district and is in need of a report indicating whether the properties described in Exhibit A (the "Property") meets the requirements of a redevelopment tax increment district.
C. Consultant represents that it has the professional expertise and capabilities to provide City with the requested professional services described in Exhibit B.
D. City desires to engage Consultant to provide the services described in this Agreement and Consultant is willing to provide such services on the terms and conditions in this Agreement.
NOW, THEREFORE, based on the Recitals above and in consideration of the terms and conditions expressed in this Agreement, City and Consultant agree as follows:
Agreement
1. Services to be Provided. Consultant agrees to provide City with the professional services described in Consultant's Scope of Services set forth in Exhibit B (the "Services") or any supplemental letter agreements, or both, entered into between City and Consultant. The Services referenced in the attached Exhibit B or any supplemental letter agreements shall be incorporated into this Agreement by reference. All Services shall be provided in a manner consistent with the level of care and skill ordinarily exercised by professionals currently providing similar services.
2. Time for Completion. This Agreement shall remain in force and effect commencing from Effective Date and continuing until the earlier of August 1, 2026 or completion of the Services unless terminated by City or amended pursuant to the Agreement.
3. Consideration. The consideration, which City shall pay to Consultant both the Services performed by Consultant and the expenses incurred by Consultant in performing the Services shall not exceed $8,900, as set forth in Exhibit B and incorporated into this
DOCSOPEN\KE215\20\1084098.v5-3/30/26 54 Agreement. City shall make progress payments, based on monthly invoices from Consultant. City's payment shall be made within 30 days after Consultant's statement. Consultant's statement shall contain a detailed list of project labor and hours, rates, titles, and amounts undertaken by Consultant during that billing period.
4. Expense Reimbursement. Consultant will not be compensated separately for necessary incidental expenses. All expenses of Consultant shall be built into Consultant's fixed compensation rates, unless reimbursement is provided for an expense that received the prior written approval of City, which approval may be provided via electronic mail.
5. Approvals. Consultant will secure City's written approval before making any expenditures, purchases, or commitments on City's behalf beyond those listed in the Services. City's approval may be provided via electronic mail.
6. Termination. Notwithstanding any other provision hereof to the contrary, this Agreement may be terminated as follows: a. The parties, by mutual written agreement, may terminate this Agreement at any time; b. Consultant may terminate this Agreement in the event of a breach of the Agreement by City upon providing thirty (30) days' written notice to City; c. City may terminate this Agreement at any time at its option, for any reason or no reason at all; or d. City may terminate this Agreement immediately upon Consultant's failure to have in force any insurance required by this Agreement.
In the event of a termination, City shall pay Consultant for Services performed to the date of termination and for all costs or other expenses incurred prior to the date of termination. As set forth in this Agreement, the parties agree that certain paragraphs in this Agreement survive termination of this Agreement.
7. Amendments. Except as expressly permitted by this Agreement, no amendments may be made to this Agreement except in writing signed by both parties.
8. Remedies. In the event of a termination of this Agreement by City because of a breach by Consultant, City may complete the Services either by itself or by contract with other persons or entities, or any combination thereof. The foregoing remedies provided to City for breach of this Agreement by Consultant shall not be exclusive. City shall be entitled to exercise any one or more other legal or equitable remedies available because of Consultant's breach.
9. Records/Inspection. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, Consultant agrees that the books, records, documents, and accounting procedures and practices of Consultant, that are relevant to the contract or transaction, are subject to examination by City and the state auditor or legislative auditor for a minimum of six years. Consultant shall maintain such records for a minimum of six years after final payment. The parties agree that this
DOCSOPEN\KE215\20\1084098.v5-3/30/26 55 obligation will survive the completion or termination of this Agreement. These obligations survive termination of this Agreement.
10. Indemnification. To the fullest extent permitted by law, Consultant and Consultant's successors or assigns, agree to protect, indemnify, save, and hold harmless City, its officers, officials, and employees from any and all claims; lawsuits; causes of actions of any kind, nature, or character; damages; losses; including reasonable attorneys' fees, to the extent caused by Consultant's (or its subcontractors, agents, volunteers, members, invitees, representatives, or employees) negligent act or omission or willful misconduct, or the failure to obtain or maintain the insurance required by this Agreement. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or limitation on liability to which City is entitled. These obligations survive termination of this Agreement.
11. Insurance. Consultant shall maintain reasonable insurance coverage throughout this Agreement. Consultant agrees that before any work related to the approved Services can be performed, Consultant shall provide certificate of insurance with limits of insurance of at least all of the following amounts:
a. Worker's Compensation Insurance as required by Minn. Stat. §176.181. b. Commercial General Liability in an amount of not less than $1,500,000.00 per occurrence for bodily injury or death arising out of each occurrence, and $1,500,000.00 per occurrence for property damage. c. Professional Liability in an amount not less than $1,000,000.00 per claim. d. Business Auto Liability in an amount not less than $1,000,000.00 per occurrence.
To meet the minimum Commercial General Liability and Business Auto Liability
requirements, Contractor may use a combination of Excess and Umbrella coverage.
Consultant shall also name City as an additional insured on its Commercial General Liability, Business Auto Liability, and Umbrella or Excess policies, and will provide City with a current certificate of insurance that includes the following language: "The City of Kenyon is named as an additional insured with respect to the commercial general liability, business automobile liability, and umbrella or excess liability, as required by the contract. The umbrella or excess liability policy follows form on all underlying coverages." The certificate of liability insurance must also contain a statement that Consultant or its insurance provider shall not cancel or amend the policies included on the certificate unless thirty (30) days' written notice is provided to City, or ten (10) days' written notice in the case of non-payment. These obligations survive termination of this Agreement.
12. Waiver of Subrogation. To the fullest extent permitted by law, Contractor waives all rights against City, its agents, officers, directors, and employees for recovery of damages to the extent these damages are covered by the workers' compensation and employers' liability, or commercial general liability or commercial umbrella/excess liability insurance obtained by Contractor pursuant to Paragraph 11 of this Agreement. Contractor shall
DOCSOPEN\KE215\20\1084098.v5-3/30/26 56 require its insurers to execute any waiver of subrogation endorsements which may be necessary to effect such waiver.
13. Assignment and Subcontracting. Neither City nor Consultant shall assign, subcontract, or transfer any rights under or interest (including, but without limitation, moneys that may become due or moneys that are due) in this Agreement, in whole or in part, without the written consent of the other except to the extent that the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. Nothing contained in this paragraph shall prevent Consultant from employing such independent consultants, associates, and subcontractors, as it may deem appropriate to assist it in the performance of Services required by this Agreement. Any instrument in violation of this paragraph is null and void.
14. Independent Contractor. Consultant shall be deemed an independent contractor. Consultant's duties will be performed with the understanding that Consultant has special expertise as to the Services that Consultant is to perform and is customarily engaged in the independent performance of the same or similar services for others. All required equipment and personnel shall be provided or contracted for by Consultant. The manner in which the Services are performed shall be controlled by Consultant; however, the nature of the Services and the results to be achieved shall be specified by City. The parties agree that this is not a joint venture, and the parties are not co-partners. Consultant is not to be deemed an employee or agent of City and has no City to make any binding commitments or obligations on behalf of City except to the extent expressly provided in this Agreement. All Services provided by Consultant pursuant to this Agreement shall be provided by Consultant as an independent contractor and not as an employee of City for any purpose, including but not limited to: income tax withholding, workers' compensation, unemployment compensation, FICA taxes, liability for torts and eligibility for employee benefits.
15. Compliance with Laws. Consultant shall exercise due professional care to comply with applicable federal, state and local laws, rules, ordinances and regulations in effect as of the date Consultant agrees to provide the applicable Services set forth in Exhibit B or any supplemental letter agreement. Consultant's guests, invitees, members, officers, officials, agents, employees, volunteers, representatives, and subcontractors shall abide by City's policies prohibiting sexual harassment, firearms, and smoking, as well as all other reasonable work rules, safety rules, or policies regulating the conduct of persons on City property, at all times while performing duties pursuant to this Agreement. Consultant agrees and understands that a violation of any of these policies or rules constitutes a breach of this Agreement and sufficient grounds for immediate termination of this Agreement by City. These obligations survive termination of this Agreement.
16. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments signed by the parties shall constitute the entire agreement between City and Consultant and supersedes any other written or oral agreements between City and Consultant. This Agreement can only be modified in writing signed by City and
DOCSOPEN\KE215\20\1084098.v5-3/30/26 57 Consultant. If there is any conflict between the terms of this Agreement and referenced or attached items, the terms of this Agreement shall prevail. These obligations survive termination of this Agreement.
17. Third Party Rights. The parties to this Agreement do not intend to confer on any third party any rights under this Agreement.
18. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Goodhue County, Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. These obligations survive termination of this Agreement.
19. Conflict of Interest. Consultant shall use reasonable care to avoid conflicts of interest and appearances of impropriety in representation of City. In the event of a conflict of interest, Consultant shall advise City and either secure a waiver of the conflict or advise City that it will be unable to provide the Services.
20. Work Products and Ownership of Documents. All records, information, materials and other work products, including, but not limited to the completed reports, drawings, plans, and specifications prepared and developed in connection with the provision of Services pursuant to this Agreement shall become the property of City, but reproductions of such records, information, materials and other work products in whole or in part may be retained by Consultant. Regardless of when such information was provided, Consultant agrees that it will not disclose for any purpose any information Consultant has obtained arising out of or related to this Agreement, except as authorized by City or as required by law. These obligations survive the termination of this Agreement.
21. Agreement Not Exclusive. City retains the right to hire other professionals that provide similar services as Consultant for other matters, in City's sole discretion.
22. Data Practices Act Compliance. Any and all data provided to Consultant, received from Consultant, created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement shall be administered in accordance with, and is subject to the requirements of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, and any applicable nondisclosure agreement. Consultant agrees to notify City within three (3) business days if it receives a data request from a third party. This paragraph does not create a duty on the part of Consultant to provide access to public data to the public if the public data are available from City, except as required by the terms of this Agreement. These obligations survive the termination of this Agreement. These obligations survive termination of this Agreement.
23. No Discrimination. Consultant agrees not to discriminate in providing products and services under this Agreement on the basis of race, color, sex, creed, national origin, disability, age, sexual orientation, status with regard to public assistance, or religion. Violation of any part
DOCSOPEN\KE215\20\1084098.v5-3/30/26 58 of this provision may lead to immediate termination of this Agreement. Consultant agrees to comply with Americans with Disabilities Act as amended ("ADA"), Section 504 of the Rehabilitation Act of 1973, and the Minnesota Human Rights Act, Minnesota Statutes, Chapter 363A. Consultant agrees to hold harmless and indemnify City from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought alleging a violation of these laws by Consultant or its guests, invitees, members, officers, officials, agents, employees, volunteers, representatives and subcontractors. Upon request, Consultant shall provide accommodation to allow individuals with disabilities to participate in all Services under this Agreement. Consultant agrees to utilize its own auxiliary aid or service in order to comply with ADA requirements for effective communication with people with disabilities.
24. Authorized Agents. City's authorized agent for purposes of administration of this Agreement is Jason Schmidt, the Assistant Administrator of City, or designee. Consultant's authorized agent for purposes of administration of this Agreement is Michael Fischer, who shall perform or supervise the performance of all Services.
25. Notices. Any notices permitted or required by this Agreement shall be deemed given when personally delivered or upon deposit in the United States mail, postage fully prepaid, certified, return receipt requested, addressed to:
Consultant: LHB, INC. 701 Washington Avenue N, Suite 200, Minneapolis, MN 55401; Attn: Michael Fischer, Mike.Fischer@LHBcorp.com, 612-752-6920;
City: City of Kenyon, 709 Second Street, Kenyon, MN 55946; Attn: Scott Lehner, slehner@cityofkenyon.gov, 507-789-6415;
or such other contact information as either party may provide to the other by notice given in accordance with this provision. A convenience copy may be provided electronically.
26. Waiver. No waiver of any provision or of any breach of this Agreement shall constitute a waiver of any other provisions or any other or further breach, and no such waiver shall be effective unless made in writing and signed by an authorized representative of the party to be charged with such a waiver.
27. Headings. The headings contained in this Agreement have been inserted for convenience of reference only and shall in no way define, limit or affect the scope and intent of this Agreement.
28. Mediation. Both parties agree to submit all claims, disputes and other matters in question between the parties arising out of or relating to this Agreement to mediation. In the event mediation is unsuccessful, either party may exercise its legal or equitable rights.
29. Payment of Subcontractors. Pursuant to Minnesota Statutes Section 471.425 subdivision 4a, Consultant agrees that it must pay any subcontractor within ten (10) days of the prime contractor's receipt of payment from City for undisputed services provided by the subcontractor. Consultant agrees that it must pay interest of 1-1/2 percent per month or
DOCSOPEN\KE215\20\1084098.v5-3/30/26 59 any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action.
30. Publicity. City and Consultant shall develop language to use when discussing the Services. Consultant agrees that any publicity regarding the Services or the subject matter of this Agreement must not be released unless it complies with the approved language. Consultant cannot not use City's logo or state that City endorses its services without City's advanced written approval.
31. Severability. In the event that any provision of this Agreement shall be illegal or otherwise unenforceable, such provision shall be severed, and the balance of the Agreement shall continue in full force and effect.
32. Signatory. Each person executing this Agreement ("Signatory") represents and warrants that he/she/they is duly authorized. In the event Consultant did not authorize the Signatory to sign on its behalf, the Signatory agrees to assume responsibility for the duties and liability of Consultant, described in this Agreement, personally.
33. Counterparts and Electronic Communication. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. This Agreement may be transmitted by electronic mail in portable document format ("pdf") and signatures appearing on electronic mail instruments shall be treated as original signatures.
[Signature pages follow]
DOCSOPEN\KE215\20\1084098.v5-3/30/26 60 IN WITNESS WHEREOF, City and Consultant have caused this Professional Services Agreement to be executed by their duly authorized representatives on the respective dates indicated below.
City Of Kenyon, Minnesota
DATED:___________________________ BY:________________________________
Donald Kirchmann Its: Mayor
DATED:___________________________ BY:________________________________
Scott Lehner Its: City Administrator
Consultant
Lhb, Inc.
DATED:___________________________ BY:________________________________
Michael A. Fischer
DOCSOPEN\KE215\20\1084098.v5-3/30/26 61 EXHIBIT A
Legal Description Of Property
The property located at 127 Gunderson Blvd, Kenyon, MN, and legally described as follows:
A-1 DOCSOPEN\KE215\20\1084098.v5-3/30/26 62 A-2 DOCSOPEN\KE215\20\1084098.v5-3/30/26 63 EXHIBIT B
Scope Of Services
B-1 DOCSOPEN\KE215\20\1084098.v5-3/30/26 64 B-2 DOCSOPEN\KE215\20\1084098.v5-3/30/26 65 B-3 DOCSOPEN\KE215\20\1084098.v5-3/30/26 66 B-4 DOCSOPEN\KE215\20\1084098.v5-3/30/26 67 B-5 DOCSOPEN\KE215\20\1084098.v5-3/30/26 68 AGENDA ITEM NO. VIII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
Agenda Section: Legal
SUBJECT: Resolution 2026-14: Approving the DEED Grant Contract
Agreement for the Rebound Real Estate Sunset Homes Project
Suggested Action: Motion Needed
Attachments:
Resolution 2026-14 approving_DEED_Grant_Contract_Agreement.docx
RESOLUTION NO. 2026-14 CITY OF KENYON COUNTY OF GOODHUE STATE OF MINNESOTA
A Resolution Approving The Deed Grant Contract
AGREEMENT FOR THE REBOUND REAL ESTATE SUNSET HOMES PROJECT
BE IT RESOLVED that the City Council of the City of Kenyon, MN ("City") approves the DEED Grant Contract Agreement between the City of Kenyon and the Department of Employment and Economic Development ("DEED") for the Rebound Real Estate ("Applicant") Sunset Homes Project. The above resolution was adopted by the City Council on April 14, 2026.
____________________________________ Donald Kirchmann Mayor ATTEST:
___________________________________________ Scott Lehner City Administrator
DOCSOPEN\KE215\20\1088465.v3-4/9/26 70 AGENDA ITEM NO. VIII.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
Agenda Section: Legal
SUBJECT: Resolution 2026-15: Approving the Sub-Grant Contract Agreement
for the Rebound Real Estate Sunset Homes Project
Suggested Action: Motion Needed
Attachments:
Resolution 2026-15 approving_the_Sub-Grant_Contract_Agreement.docx
RESOLUTION NO. 2026-15 CITY OF KENYON COUNTY OF GOODHUE STATE OF MINNESOTA
A Resolution Approving The Sub-Grant Contract
AGREEMENT FOR THE REBOUND REAL ESTATE SUNSET HOMES PROJECT
BE IT RESOLVED that the City Council of the City of Kenyon, MN ("City") approves the Sub-Grant Contract Agreement between the City of Kenyon and Rebound Real Estate ("Applicant") for the Applicant's Sunset Homes Project. The above resolution was adopted by the City Council on April 14, 2026.
____________________________________ Donald Kirchmann Mayor ATTEST:
___________________________________________ Scott Lehner City Administrator
DOCSOPEN\KE215\20\1088486.v2-4/9/26 72 AGENDA ITEM NO. VIII.D
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
Agenda Section: Legal
SUBJECT: Resolution 2026-12: Calling for a Public Hearing by the City Council
on the Proposed Establishment of the Development Program for Municipal Development District No. 2 Establishment of TIF District No. 2-1 Therein and Adoption of a TIF Plan Therefor
Suggested Action: Motion Needed
Attachments:
Resolution 2026-12 calling_for_a_public_hearing_on_the_TIF_Plan__etc_.doc
RESOLUTION NO. 2026-12 CITY OF KENYON COUNTY OF GOODHUE STATE OF MINNESOTA
Resolution Calling For A Public Hearing By The City
COUNCIL ON THE PROPOSED ESTABLISHMENT OF THE
DEVELOPMENT PROGRAM FOR MUNICIPAL DEVELOPMENT DISTRICT NO. 2, ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 2-1 THEREIN AND ADOPTION OF A TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the City Council (the "Council") of the City of Kenyon, Minnesota
(the "City"), as follows:
Section 1. Public Hearing. This Council shall meet on June 9, 2026, at approximately 7:00 P.M., or on such other date and time as determined by the City Administrator, to hold a public hearing on the proposed establishment of the Development Program for the Municipal Development District No. 2 (the "Development Program"), the proposed establishment of the Tax Increment Financing District No. 2-1 (the "TIF District"), and the proposed adoption of a Tax Increment Financing Plan (the "TIF Plan") therefor (referred to collectively herein as the "Development Program and TIF Plan"), all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.133, and Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development of certain designated areas within the City; and
Section 2. Notice of Public Hearing, Filing of Program Modification and TIF Plan. City staff is authorized and directed to work with Northland Securities to prepare the Development Program and TIF Plan for the TIF District and to forward documents to the appropriate taxing jurisdictions including Goodhue County and Kenyon-Wanamingo School District No. 2172. The City Administrator is authorized and directed to cause a notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to June 9, 2026, and to place a copy of the Development Program and TIF Plan on file in the City Administrator's office at City Hall and to make such copy available for inspection by the public.
PASSED by the City Council of the City of Kenyon on this 14th day of April, 2026.
Attest
_______________________ ________________________ Scott Lehner Donald Kirchman City Administrator Mayor
KE215\20\1088480.v3 74 AGENDA ITEM NO. IX.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: **Financial
Agenda Section: Financial
SUBJECT: March 2026 Financial Reports and Payment of Claims
SUGGESTED ACTION: **These items were approved under the Consent Agenda
Attachments:
REVENUE 4-14-14.pdf EXPENSES 4-14-26.pdf CHECKS 4-14-26.pdf
75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 AGENDA ITEM NO. XI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
Agenda Section: New Business
SUBJECT: LMCIT Liability Coverage Waiver
SUGGESTED ACTION: The Council is required to choose either to waive or not to waive the monetary insurance liability limits annually. State statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. Cities can choose to waive the state liability limits. Cities can purchase additional insurance coverage up to $2,000,000 annually. In the past, the Council has chosen to not waive LMCIT State Liability limits.
Motion Needed
Attachments:
LMC Liability Waiver.pdf
124 125 126 AGENDA ITEM NO. XII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: April 14, 2026
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: F.Y.I. - Department Updates
Subject: Fyi - 4 / 14 / 26
Suggested Action:
Attachments:
4-14-26 FYI.pdf
127 128 129 130 131 132 133 134 135 136 137 138 139 140 141