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 13th day of January 2026. The meeting was called to order by Mayor Kirchmann.
The following members were present: Mayor Don Kirchmann, Council Members Kim Helgeson, Lee Sjolander, Mary Bailey, and Elana Brunner.
Also, present: City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Engineer Derek Olinger, City Attorney Scott Riggs, Brittni Schmitz, Officer Armani Tucker, Josh Johnson, Operations Superintendent Randy Eggert, John Lee, Bob Hawley, Jed Johnson, Todd Greseth, Doug Henke
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
Bob Hawley, Executive Director of Goodhue County Habitat for Humanity, updated the council on the home being built in Kenyon. The Kenyon-Wanamingo school’s construction class is assisting on the construction. This house is still looking for a family to occupy the home. Applications are open now for a low-income family.
Todd Greseth, Goodhue County Commissioner, stated that the County levy will increase 6.5% for 2026. There will be an even larger increase coming in 2027 because of State mandates. The May County Commissioner meeting will be held at Kenyon City Hall. If you have any questions for the commission, please contact Todd.
ADOPT AGENDA
Motion by Sjolander seconded by Bailey to approve the agenda. Motion carried 5-0-0.
CONSENT AGENDA
Motion by Helgeson second by Brunner to approve the amended Consent Agenda, which includes:
Kennedy & Graven 2026 Rates for Legal Services
CMPAS Alternate – Remove Jim Malloy, Add John Lee
Resolution 2026-01: Establishing License Fees and Compensation
Annual licenses
Resolution 2026-02: A Resolution Authorizing Acceptance of 2025 Donations
Payment of check numbers, 77731 through 77837; 7100E through 7170E
Council Special Meeting Minutes of December 9, 2025
Council Meeting Minutes of December 9, 2025
Motion carried 5-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
ADMINISTRATOR UPDATE
Step Increase/COLA
Administrator Lehner stated that the council previously approved a 3% COLA increase in the 2026 budget. Historically, a step increase has also been provided; however, the 2026 budget did not include a step increase. Lehner reported that adding a step increase would cost approximately $41,000. He recommended implementing a COLA at the beginning of each year and a step increase on the employee’s anniversary date beginning in 2027. Councilmember Sjolander expressed interest in providing some type of increase for part-time employees as well.
Motion by Sjolander seconded by Kirchmann to pay a step increase for 2026 retroactive to the first payroll of 2026. Motion carried 5-0-0.
Benefits-MN Family Leave
Administrator Lehner reported that all required paperwork for Minnesota Family Leave benefits has been submitted and payroll deductions have begun.
Performance Evaluations
Administrator Lehner reported that he had received all performance reviews done by the supervisors. He has completed the department head reviews but was waiting to distribute the reviews pending the decision on step increases.
Computer/Office/Conference Room
Administrator Lehner reported that Mike from On-Site Computers reviewed the city’s computer needs and layout. Planned upgrades include a new computer and monitors for the finance office, an upgraded conference room system, and a new printer for the Deputy Clerk.
Reposting of Administrative Assistant Position
Administrator Lehner reported that the administrative assistant position is being reposted after the selected candidate declined the offer. The new application deadline is the end of January.
Brittni Schmitz addressed the council regarding her part-time position in the city office, stating she will not continue employment due to ineligibility for COLA and step increases, and the impact of the new Minnesota Family Leave payroll deduction. Administrator Lehner stated that a work session would be scheduled to review this issue.
Year-end Wrap-Up Update
Administrator Lehner reported that staff have been busy completing year-end tasks and transferring files.
Transitioning KMU into the City Banking System
Administrator Lehner reported that the transition of KMU auto-pay accounts to the city banking system is ongoing and will take additional time to complete.
ENGINEERING
2025 Street and Utility Improvements
Engineer Olinger stated that change order #1 was tabled at last month’s meeting, but it is now ready for review. This is a contract amendment to address two items on the project. Item one is extending the completion dates for 2025 work to reflect the additional time needed to complete the 2nd street watermain work and other work completed during the 2025 construction season.
Fitzgerald Excavating and Trucking Change Order No. 1
Motion by Bailey seconded by Brunner to approve Change Order No.1 for Fitzgerald Excavating and Trucking. Motion carried 5-0-0.
LEGAL
Rebound Project-TIF
Attorney Riggs stated that Rebound Real Estate is applying for a state grant and that additional documentation from the city would improve the application rating.
Resolution 2026-03: Approving the Application
Motion by Bailey seconded by Helgeson to adopt Resolution 2026-03. Motion carried 5-0-0.
Resolution 2026-04: Expressing the City of Kenyon’s Willingness to Work with Rebound Real Estate on Tax Increment Financing (TIF) for the Sunset Homes Redevelopment
Attorney Riggs recommended tabling the resolution.
Resolution 2026-05: Approving the Application and Committing the Local Match and Authorizing Contract Signature
Motion by Bailey seconded by Brunner to adopt Resolution 2026-05. Motion carried 5-0-0.
OLD BUSINESS
NEW BUSINESS
2026 Appointments and Designations
1. Library Board – 3-Year Term
a. Renee Caron
b. Bryana Lothert
2. Planning Commission – 2-Year Term
a. Vacant
b. Vacant
c. Vacant
3. Public Utility Commission
a. Don Kirchmann
4. Historic Preservation Commission
a. Vacant
5. Park & Recreation
a. Bailey Ament
b. Vacant
6. Appointments
a. Acting Mayor – Mary Bailey
b. Legal Newspaper – Kenyon Leader
c. Depository – Security State Bank, 4M, Northland Securities
d. City Attorney – Scott Riggs, Kennedy & Graven Chartered
e. Prosecuting Attorney – David Jacobsen, Jacobsen Law Firm
f. City Engineer – Derek Olinger, Bolton & Menk
g. City Auditor – BerganKDV
h. Financial Consultant – George Eilertson - Northland Securities
i. Investments – As Allowed Per Minnesota Statutes
j. Deputy Clerk – Holli Gudknecht
k. Weed Inspector – Donald Kirchmann
l. Personnel Committee – Don Kirchmann, Kim Helgeson, Scott Lehner
m. Kenyon Fire Relief Association – Don Kirchmann and Scott Lehner
Motion by Sjolander seconded by Brunner to approve the 2026 committee appointments and designations. Motion carried 5-0-0.
Part-Time Police Recommendation
Police Chief Sjolander recommended hiring some part-time police officers, noting interest from trained officers currently working in the profession.
Motion by Bailey seconded by Brunner to approve the hire of part-time police officers.
Motion carried 5-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, January 20th @ 3:00 p.m.
EDA Meeting: Tuesday, January 27th @ 8 a.m.
City Council Meeting: Tuesday, February 10th @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Council Member Sjolander thanked Public Works and KMU for working in the recent storms and Officer Tucker for the way he handled a situation last week.
Council Member Bailey thanked KMU for their fast response to a recent power outage.
Mayor Kirchmann thanked everyone for what they are doing in the city.
Council Member Brunner thanked everyone for taking care of the city with everything that is going on in the world today.
Motion by Bailey seconded by Helgeson to adjourn the meeting at 8:33 p.m.
Motion carried 5-0-0.
Holli Gudknecht, Deputy Clerk
Donald Kirchmann, Mayor
