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 10th day of June 2025. The meeting was called to order by Mayor Donald Kirchmann.
The following members were 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:
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.
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.
Continued Assessment Hearing - 2025 Street & Utility Improvements
Motion by Helgeson seconded by Bailey to open the public hearing at 7:19 pm.
Motion carried 5-0-0.
Attorney 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 5-0-0.
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.
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 5-0-0.
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.
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 5-0-0.
Approve 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 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 5-0-0.
Schedule 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
