Pursuant to due call and notice thereof, a City Council Meeting was duly held in the City Council chambers at 7:00 p.m. on the 6th day of August 2026. The meeting was called to order by Acting Mayor Bailey.
The following members were present: Council Members Lee Sjolander, Mary Bailey, Deanna Gard, Kim Helgeson
Absent: Don Kirchmann
Also, present: City Administrator Scott Lehner, Engineer Derek Olinger, Administrative Assistant Holli Gudknecht, Wayne Ehrich, Heather Dewitz, Doug Henke, Jerry Houglum, Billy Dyrdahl
Via Zoom: Jessi Sturtz
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
Doug Henke asked, “Do you know how many lots are available for sale in Kenyon today?” According to Realtor Chris Mallery there are eight. He stated that when he was mayor, he asked the KMU commission for a two-million-dollar loan to purchase land for development and they were in favor of that. It is now two years later and still no progress has been made. He was asking the Council to get this moving forward.
Jerry Houglum, KMU Chairman, agreed that the KMU Commission was in favor of this loan and that more lots are needed in town to get people here.
Administrator Lehner stated that a preliminary plat and a draft purchase agreement have been done.
ADOPT AGENDA
Motion by Sjolander seconded by Helgeson to approve the agenda. Motion carried 4-0-0.
CONSENT AGENDA
Motion by Helgeson second by Gard to approve the Consent Agenda, which includes:
Approve Rose Fest Events: Street Dance Permit – Municipal Liquor Store, Parade Route, Street Closures, Car Show
Financials and Payment of check numbers, 78423 through 78494; 7510E through 7566E
Minutes of July 14, 2026
Motion carried 4-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
ADMINISTRATOR UPDATE
Police Department Staffing Update
Lehner stated that the police officer position is still posted until filled. There are no applicants at this point. The police chief and full-time officer are both currently on vacation. Part-time officers are filling in.
KMU Staffing/John Lee Update
Lehner stated that he had received John Lee’s resignation. His last day will be August 14. Potentially, a job offer will be made to an applicant from the first round of interviews.
Administrative Assistant-Rachel Goven Update
Lehner stated that Rachel Goven resigned effective August 7, 2026 due to a family job relocation. The position is posted with a deadline of August 25.
Rose Fest Update
Lehner stated that the new Rose Fest banner was put up on Tuesday. The last Rose Fest meeting will be on Monday, August 17.
Department Head Reporting
Lehner stated that he would like some department heads to give an in-person update at the council meetings starting in September. The council was agreeable with this.
Rebound Investors Meeting
Rebound held a very informational investors meeting last night. They are looking for three million dollars from investors.
ENGINEERING
2025 Street & Utility Project
Engineer Olinger stated that this pay estimate includes primarily sanitary sewer lining, grouting and manhole rehabilitation. The contractor will be back in town over the next several weeks to complete various punch list repairs.
Doug Henke reported some issues with the gas company putting their line in. Engineer Olinger was aware of some of these issues and will be working with the gas company to do repairs.
2025 Street and Utility Improvements – Fitzgerald Excavating & Trucking -Pay Application No. 8
Pay request No. 8 includes work completed through July 17, 2026.
Motion by Sjolander seconded by Helgeson to approve pay application #8 to Fitzgerald Excavating in the amount of $95,954.75. Motion carried 4-0-0.
Kenyon Crossings Development Applications
Preliminary Plat Variance Staff Reports and Draft Resolutions
Kenyon Crossings – Application Materials-Plans
Engineer Olinger updated the council on the Kenyon Crossings development applications. The planning commission held public hearings on the variances and preliminary plat on August 4. They tabled these variances and the replat until the developer submits supplemental materials.
Motion by Bailey seconded by Gard to extend the review period to a maximum of 120 days for these three variances and preliminary plat. Motion carried 4-0-0.
LEGAL
Lot Split: Gerald Bartel
Resolution 2026-29: Approving Minor Subdivision - Lot Split Application –PID 66.180.0052 Gerald Bartel
Attorney Riggs stated that Gerald Bartel, was seeking approval to split PID# 66.180.0052. The split section would be sold to the neighbor located in the center of this parcel.
Motion by Bailey seconded by Helgeson to adopt Resolution 2026-29 approving the minor subdivision for Gerald Bartel. Motion carried 4-0-0.
Lot Combination: Chad Bauer
Resolution 2026-30: Approving Lot Combination Chad Bauer
Attorney Riggs stated that Chad Bauer was seeking approval to combine the split from Gerald Bartel with his parcel 66.180.0053 to better fit a septic on his property.
Motion by Helgeson second by Gard to adopt Resolution 2026-30 granting approval for a lot combination for Chad Bauer. Motion carried 4-0-0.
OLD BUSINESS
2027 Budget Update
Jessi Sturtz from Abdo reviewed the second draft of the 2027 budget. The proposed 2027 budget increase started at 19.5% but is now down to 10.34% by eliminating some pool, streets, and police department items. Administrator Lehner suggested approving the preliminary levy at 10.34% in September. Some numbers are still pending, and adjustments will be made accordingly when these are received. A work session with department heads will be scheduled in October for working the levy down further if needed. The final levy is due by the end of December.
NEW BUSINESS
2026 2nd Quarter Report - Abdo
Jessi Sturtz from Abdo reviewed the second quarter 2026 financial report.
Motion by Helgeson seconded by Bailey to accept the second quarter financial report.
Motion carried 4-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, August 18th @ 3:00 p.m.
EDA Meeting: Tuesday, August 25th @ 8 a.m.
Planning Commission meeting: Tuesday, September 1st @ 6:00 pm
City Council Meeting: Tuesday, September 8th @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Council Member Sjolander thanked everyone who helped put on National Night Out.
Council Member Gard questioned how people find out when meetings are scheduled. The response was, it is posted at city hall and on the city website.
Administrator Lehner stated he was asked a few months ago what it would take to update the old police building. He has been working with L&M on getting quotes. He also thanked the Rose Fest committee for all their work.
Council Member Helgeson thanked everyone for supporting the Farmer’s Market and she invited everyone to come out and enjoy Rose Fest.
Motion by Helgeson seconded by Bailey to adjourn the meeting at 8:28 p.m. Motion carried 4-0-0.
Holli Gudknecht, Deputy Clerk
Mary Bailey, Acting Mayor
