Regular meeting

Kenyon City Council, May 14, 2019

The Kenyon City Council met May 14, 2019, with all five members present. Chris Knopik of Clifton, Larson, Allen LLC presented a summary of the 2018 City and Kenyon Municipal Utilities audits and an overview of overall City financial conditions.

10motions
10 unanimousno split votes
6present
4resolutions
$2,000,000largest figure
Norecording posted
audit business park development bonds and financing street improvements stormwater drainage hiring insurance liability economic development

What happened

  1. Chris Knopik of Clifton, Larson, Allen LLC presented the 2018 City and KMU audit summary and overall financial conditions
  2. Resolution 2019-18 ordering a feasibility report on Red Wing Avenue improvements passed 5-0-0
  3. Resolution 2019-16 established reimbursement bond procedures under the IRS code for the 2nd Street and Business Park projects
  4. Resolution 2019-19 authorized an interfund loan to show the match for the BDPI grant
  5. Resolution 2019-17 adopted a revised local government resolution for the final DEED BDPI application
  6. Bolton and Menk drainage study recommended the VFW make improvements around a drain in its rear parking lot
  7. Council hired 15 municipal swimming pool employees, including lifeguards, WSIs and assistant managers
  8. Memorial Day Parade permit approved for May 27, 2019
  9. Council voted not to waive LMCIT state liability limits ($500,000 per claimant / $1,500,000 per occurrence)
  10. City Attorney Riggs preparing title work to convey the former ambulance building from the EDA back to the City
  11. Consent agenda approved checks 69572-69697, 3217E-3228E, and additional checks 69698-69704
  12. Meeting adjourned at 8:23 p.m.

What was asked 13 raised · 5 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.

1 answered from our records4 what happened next5 partly answered3 we hold no data
Unsourced claimAdministrator Mark Vahlsingfrom the minutes
State statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 per occurrence.

Explanation given before the Council voted on the LMCIT liability coverage waiver.

At the meetingCouncil voted 5-0-0 not to waive the LMCIT state liability limits, following past practice.

Answered from our records

The $500,000 per claimant and $1,500,000 per occurrence tort limits and the $2,000,000 additional coverage figure are repeated verbatim in the council record for May 14 2024, May 13 2025 and May 12 2026, and the Council declined to waive the limits each time. The June 13 2023 minutes state the additional coverage available as $3,000,000 rather than $2,000,000.

5-14-24_AGENDA(1); 5-13-25_council_packet_updated; 5-12-26_Council_Packet_Updated · taken up again 2026-05-12

Action itemfrom the minutes
Red Wing Avenue Resolution 2019-18: Ordering Preparation of Feasibility Report on Improvements to Red Wing Avenue Motion by Mortenson second by Nielsen to approve Resolution 2019-18.

Council adopted Resolution 2019-18 ordering preparation of the feasibility report.

At the meetingResolution 2019-18 was approved 5-0-0.

What happened next

The Red Wing Avenue feasibility report was finalized and accepted on August 13 2019, when the Council adopted Resolution 2019-25 receiving the report and setting the improvement public hearing for September 10 2019 at 7:00 pm. The vote was 4-0-0.

8.13.19_City_Council_Mtg_Minutes · taken up again 2019-08-13

PendingAdministrator Mark Vahlsingfrom the minutes
Resolution 2019-17: Local Government Resolution Adopting Business Development Infrastructure Application Administrator Vahlsing stated that this is a revised resolution needed for the final DEED BDPI application Motion by Mortenson second by Nielsen to approve Resolution 2019-17.

Resolution 2019-17 was a revised local government resolution needed to complete the final BDPI application.

At the meetingCouncil approved Resolution 2019-17 by 5-0-0 to support the application.

What happened next

DEED approved the BDPI grant at $672,096, reported to the Council on August 13 2019 from the Department of Employment and Economic Development's award letter. DEED was then finalizing the grant agreement and related documents, with the city working through CEDA on next steps.

8.13.19_City_Council_Mtg_Minutes · taken up again 2019-08-13

To look upCity Engineer Joe Rheinfrom the minutes
ENGINEERING EDA Business Park Development Update Platting City Engineer Rhein stated that he was working on the development concept plan for the area near the future business park. 2nd Street Sanitary Sewer Improvements City Engineer Rhein provided an update on the project.

Rhein provided an update on the 2nd Street project with no details recorded in the minutes.

At the meetingAn update was given but its content is not recorded.

What happened next

On June 11 2019 Engineer Rhein reported RAW Construction had signed the contract and would begin construction in late July, with a property owner meeting set for late June attended by RAW. The Council also approved Change Order #1, barring work and requiring the site clear of equipment and materials with all roads open August 15-19 2019 for Rose Fest, at no change to cost or completion date.

6.11.19_Council_Minutes · taken up again 2019-06-11

RequestCouncilman John Mortensenfrom the minutes
COUNCIL AND STAFF GENERAL COMMENTS Councilman Mortensen wanted to remind all City residents not to blow their grass clippings into the street, which eventually ends up in the storm sewers.

General comment during Council and Staff comments.

What happened next

The city addressed grass and yard waste in public streets by ordinance: on March 9, 2021 the council adopted Ordinance No. 97 amending Section 845 of the City Code regarding regulation of trees, grass, and weeds in public streets and public property, on a 5-0-0 vote. City Attorney Riggs stated the section was simplified but still gives the city control.

3.9.21_Council_Minutes · taken up again 2021-03-09

Action itemCity Attorney Scott Riggsfrom the minutes
At their last meeting the EDA requested the City Attorney prepare the title work for the conveyance of the building back to the City. He stated that he is currently preparing the legal documents for the property transfer.

The Council in April requested the EDA transfer the former ambulance building back to the City for possible Police Department use, and the EDA asked the attorney to prepare the title work.

Partly answered

The conveyance was still in progress through the summer of 2019: on July 9 2019 Attorney Riggs reported the legal documents were being finalized, the EDA resolution approving transfer was set for the July 23 2019 EDA agenda, and the deed would be filed with the County the next day. The executed deed and recorded title documents are not in our record. Meanwhile the building's police use advanced, with Chief Sjolander presenting a layout on August 13 2019 at a preliminary cost of $75,000.

7.9.19_City_Council_Minutes; 8.13.19_City_Council_Mtg_Minutes · taken up again 2019-07-09

Action itemCity Engineer Joe Rheinfrom the minutes
ENGINEERING EDA Business Park Development Update Platting City Engineer Rhein stated that he was working on the development concept plan for the area near the future business park. 2nd Street Sanitary Sewer Improvements City Engineer Rhein provided an update on the project.

Update given under EDA Business Park Development, platting item.

Partly answered

Work on the business park plat and development plan continued through 2019: on June 11 2019 Rhein reported meetings with the north neighbors, MnDOT and Goodhue County Public Works, and on July 9 2019 he reported the county engineer had no major concerns on access, drainage and utility locations along County Road 12, with the development plan ready for review in August. The finished concept plan and recorded plat are not in our record; by November 9 2021 the EDA had set a lot price of $0.99 per square foot and adopted a marketing plan for the park.

7.9.19_City_Council_Minutes; 11.9.21_Council_Minutes · taken up again 2021-11-09

PendingCity Administrator Mark Vahlsingfrom the minutes
New Interfund Loan for Business Park City Administrator Vahlsing stated that this item was discussed during the previous work session. The resolution was required to approve the inter-fund loan to show the match for the BDPI grant.

Interfund loan for advance of funds for Business Park infrastructure improvement costs.

At the meetingResolution 2019-19 approved 5-0-0.

Partly answered

KMU approved the interfund loan providing the city's BDPI local match at its May 15 2019 meeting, and the resolutions and supporting material were then submitted to DEED, as reported June 11 2019. The loan amount, interest terms and repayment schedule set in Resolution 2019-19 are not in our record; the resolution text itself would answer it.

6.11.19_Council_Minutes · taken up again 2019-06-11

To look upChris Knopik, Clifton Larson Allen LLCfrom the minutes
PRESENTATIONS/PUBLIC HEARINGS 2018 Audit Summary – Chris Knopik of Clifton, Larson, Allen LLC Chris Knopik presented a summary of the 2018 City and KMU audits and an overview of the overall City financial conditions.

Knopik presented a summary of the 2018 audits and an overview of City financial conditions; no figures recorded.

At the meetingA summary presentation was given but no figures are recorded in the minutes.

Partly answered

The 2018 audit figures and management letter are not in our record. Every later audit summary we hold reports an unmodified, clean opinion on the City and KMU audits: 2020 presented by Chris Knopik of CliftonLarsonAllen on July 13 2021, 2022 by Tyler See of Abdo on September 12 2023, 2023 on August 20 2024, and 2024 by Brad Falteysek of Abdo on July 8 2025. The 2018 audited financial statements themselves would answer it.

7.13.21_Council_Minutes; KENYON_BIDS.md

Requestfrom the minutes
Approve Memorial Day Parade for May 27, 2019 Motion by Mortensen, second by Henke to approve the Memorial Day Parade permit for May 27, 2019.

Parade permit item under New Business.

At the meetingPermit approved 5-0-0.

Partly answered

The permit was approved 5-0-0 at the meeting, and later council records show the Memorial Day parade permit is approved annually for the same route, down 2nd Street ending with a ceremony at the cemetery: May 31, 2021 approved 4-0-0, May 30, 2022 approved 4-0-0, and May 29, 2023 approved 4-0-0. The signed 2019 permit document itself is not in our holdings.

6.13.23_Council_Packet_and_Agenda · taken up again 2023-06-13

RequestEngineer Derek Olinger, Bolton and Menkfrom the minutes
VFW Parking Lot Derek Olinger of Bolton and Menk reviewed findings of a study on drainage from the alley and the VFW rear parking lot. The study recommended that the VFW make improvements around a drain in the rear parking lot.

Olinger reviewed findings of a study on drainage from the alley and the VFW rear parking lot.

At the meetingNo Council action recorded on the recommendation.

We hold no data

Nothing in our record shows any VFW response or commitment on the rear parking lot drain. A later council document recording correspondence with the VFW, or an engineering follow-up on the alley drainage study, would answer it.

would settle it: A written response or commitment from the VFW on making the drain improvements

Action itemCity Attorney Scott Riggsfrom the minutes
City Attorney Riggs explained that the resolution is required for the City to able to reimburse itself for previously incurred expenses from Bond sale proceeds for the 2nd Street and the Business Park projects.

Reimbursement bond regulation compliance under the Internal Revenue Code.

At the meetingResolution 2019-16 approved 5-0-0.

We hold no data

No schedule of previously incurred 2nd Street and Business Park expenses and no bond sale closing documents appear in our record. The later passages concern Resolution 2023-03, a separate reimbursement bond procedures resolution adopted March 14 2023, not the 2019 expenses. The bond official statement or the finance department's reimbursement schedule would answer it.

3.14.23_Updated_Council_Packet__Agenda · would settle it: The schedule of previously incurred expenses to be reimbursed and the bond sale closing documents

Pending

Hiring approval list includes Nora Woock with no position title listed.

At the meetingHiring of all listed pool employees approved 5-0-0.

We hold no data

No record in our holdings gives Nora Woock's position title among the 15 seasonal pool employees approved on May 14, 2019. The city personnel file or the seasonal pool staffing roster attached to that hiring approval would answer it.

would settle it: The personnel record showing Nora Woock's position title

Decisions 10 motions

Who did what

PersonAt this meeting
Mike Engel
Mayor
Presided; moved approval of Resolution 2019-16
Dan Rechtzigel
Council Member
Seconded agenda approval; moved consent agenda, Resolution 2019-19, and pool hiring; seconded adjournment
Richard Nielsen
Council Member
Seconded Resolutions 2019-18 and 2019-17; moved not to waive LMCIT limits; moved adjournment
Doug Henke
Council Member
Moved agenda approval; seconded consent agenda, Resolution 2019-19 and the parade permit
John Mortensen
Council Member
Moved Resolutions 2019-18, 2019-16 second, 2019-17 and the parade permit; reminded residents not to blow grass clippings into the street
Mark Vahlsing
City Administrator
Explained the interfund loan resolution, the revised BDPI resolution and the LMCIT liability waiver choice
Scott Riggs
City Attorney
Explained the reimbursement bond resolution and reported preparing documents for the ambulance building transfer
Joe Rhein
City Engineer
Reported on the business park concept plan and the 2nd Street Sanitary Sewer Improvements
Derek Olinger
Engineer, Bolton and Menk
Reviewed findings of a drainage study of the alley and VFW rear parking lot
Chris Knopik
Clifton, Larson, Allen LLC
Presented a summary of the 2018 City and KMU audits and overall City financial conditions
Holli Gudknecht
Administrative Assistant
Present
Lee Sjolander
Police Chief
Present
Wayne Ehrich
Public Works Director
Present
Dan Dummer
EDA Board
Present
Ann Sviggum
EDA Board
Present

Organizations named: City of Kenyon, Kenyon Municipal Utilities (KMU), Clifton, Larson, Allen LLC, Bolton and Menk, Kenyon EDA, VFW, Minnesota DEED, League of Minnesota Cities Insurance Trust (LMCIT), Kenyon Police Department, Internal Revenue Service (IRS)

Figures

AmountWhat
$500,000state statutory tort liability limit per claimant under LMCIT coverage
$1,500,000state statutory tort liability limit per occurrence under LMCIT coverage
$2,000,000maximum additional insurance coverage cities can purchase annually

Said at the meeting

City Engineer Rhein stated that he was working on the development concept plan for the area near the future business park.

City Engineer Joe Rhein · minutes, verbatim

City Attorney Riggs explained that the resolution is required for the City to able to reimburse itself for previously incurred expenses from Bond sale proceeds for the 2nd Street and the Business Park projects.

City Attorney Scott Riggs · minutes, verbatim

The resolution was required to approve the inter-fund loan to show the match for the BDPI grant.

City Administrator Mark Vahlsing · minutes, verbatim

Councilman Mortensen wanted to remind all City residents not to blow their grass clippings into the street, which eventually ends up in the storm sewers.

Councilman John Mortensen · minutes, verbatim

City Attorney Riggs explained that at the April meeting the Council requested that the EDA transfer ownership of the former ambulance building back to the City for possible use by the Police Department.

City Attorney Scott Riggs · minutes, verbatim

Resolutions and ordinances

  • Ordering Preparation of Feasibility Report on Improvements to Red Wing Avenue Motion by Mortenson second by Nielsen to approve Resolution 201Res. 2019-18
  • Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (IRS)Res. 2019-16
  • Authorizing Interfund Loan to City of Kenyon for Advance of Funds for Payment of Costs Related to Infrastructure Improvements for the City ofRes. 2019-19
  • Local Government Resolution Adopting Business Development Infrastructure Application Administrator Vahlsing stated that this is a revised resRes. 2019-17

The minutes

Official minutes as adopted, from 5.14.19 Council Minutes; text extracted from the PDF.

Council Meeting was duly held in the City Council chambers at 7:00 p.m. on the 14th day of May 2019.

Present
Mayor Mike Engel, Council Members, Dan Rechtzigel, Richard Nielsen, Doug Henke, and John Mortensen
Also present
Administrator Mark Vahlsing, Attorney Scott Riggs, Engineer Joe Rhein, Engineer Derek Olinger, Administrative Assistant Holli Gudknecht, Police Chief Lee Sjolander, Public Works Director Wayne Ehrich, Dan Dummer EDA Board, Ann Sviggum EDA Board

Citizen Comments

None

Adopt Agenda

Motion

Motion by Henke second by Rechtzigel to approve the agenda with noted addition. Motion carried 5-0-0.

Consent Agenda

Motion

Motion by Rechtzigel seconded by Henke to approve the Consent Agenda, which includes payment of check numbers, 69572 through 69697; 3217E through 3228E; and additional checks 69698 through 69704.

Motion carried 5-0-0

Presentations / Public Hearings

2018 Audit Summary – Chris Knopik of Clifton, Larson, Allen LLC Chris Knopik presented a summary of the 2018 City and KMU audits and an overview of the overall City financial conditions.

Engineering

EDA Business Park Development Update

Platting City Engineer Rhein stated that he was working on the development concept plan for the area near the future business park.

2nd Street Sanitary Sewer Improvements City Engineer Rhein provided an update on the project.

Red Wing Avenue

Resolution 2019-18: Ordering Preparation of Feasibility Report on Improvements to Red Wing Avenue

Motion

Motion by Mortenson second by Nielsen to approve Resolution 2019-18. Motion carried 5-0-0.

VFW Parking Lot

Derek Olinger of Bolton and Menk reviewed findings of a study on drainage from the alley and the VFW rear parking lot. The study recommended that the VFW make improvements around a drain in the rear parking lot.

Legal

Resolution 2019-16: Establishing Procedures Relating to Compliance with Reimbursement Bond

Regulations Under the Internal Revenue Code (IRS). City Attorney Riggs explained that the resolution is required for the City to able to reimburse itself for previously incurred expenses from Bond sale proceeds for the 2nd Street and the Business Park projects.

Motion

Motion by Engel second by Mortenson to approve Resolution 2019-16. Motion carried 5-0-0. New Interfund Loan for Business Park City Administrator Vahlsing stated that this item was discussed during the previous work session. The resolution was required to approve the inter-fund loan to show the match for the BDPI grant.

Resolution 2019-19: Authorizing Interfund Loan to City of Kenyon for Advance of Funds for Payment of Costs Related to Infrastructure Improvements for the City of Kenyon's Business Park

Motion

Motion by Rechtzigel second by Hanke to approve Resolution 2019-19. Motion carried 5-0-0.

Old Business

Transfer of Ownership of the Ambulance Building back to the City of Kenyon

City Attorney Riggs explained that at the April meeting the Council requested that the EDA transfer ownership of the former ambulance building back to the City for possible use by the Police Department. At their last meeting the EDA requested the City Attorney prepare the title work for the conveyance of the building back to the City. He stated that he is currently preparing the legal documents for the property transfer.

Resolution 2019-17: Local Government Resolution Adopting Business Development

Infrastructure Application Administrator Vahlsing stated that this is a revised resolution needed for the final DEED BDPI application

Motion

Motion by Mortenson second by Nielsen to approve Resolution 2019-17. Motion carried 5-0-0.

New Business

Approve Hiring of Municipal Swimming Pool Employees

1. Carter Johnson – Lifeguard 2. Kasandra Keller – WSI / Lifeguard 3. Siri Quam – Assistant Mgr. / WSI / Lifeguard 4. Lukas Berg - Lifeguard 5. Lauren Berg – Assistant Mgr. / WSI / Lifeguard 6. Corynne Dahl – Lifeguard 7. Mara Quam – Lifeguard 8. Julianna Boyum – Lifeguard 9. Sydney Burow – Lifeguard 10. Kia Johnson – Lifeguard 11. Madison Luebke – Lifeguard 12. Nora Woock 13. Riley Dummer – Lifeguard 14. Julia Dahl – Lifeguard 15. Sam Erickson - Lifeguard

Motion

Motion by Rechtzigel seconded by Mortensen to approve the hiring of Municipal swimming pool employees. Motion carried 5-0-0.

Approve Memorial Day Parade for May 27, 2019
Motion

Motion by Mortensen, second by Henke to approve the Memorial Day Parade permit for May 27, 2019.

Motion carried 5-0-0

LMCIT Liability Coverage Waiver Administrator Vahlsing stated that the City Council is required to choose either to waive or not to waive the monetary insurance liability limits. 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.

Motion

Motion by Nielsen, seconded by Mortensen to follow past City not waive LMCIT State Liability limits.

Motion carried 5-0-0

Other Business

Schedule of Upcoming Meetings

KMU Meeting: Wednesday, May 15th @ 6:00 p.m. City Council Meeting: Tuesday, June 11th @ 7 p.m.

Council And Staff General Comments

Councilman Mortensen wanted to remind all City residents not to blow their grass clippings into the street, which eventually ends up in the storm sewers.

Motion

Motion by Nielsen second by Rechtzigel to adjourn the meeting at 8:23 p.m. Motion Carried 5-0-0.

Mark Vahlsing, City Administrator Michael Engel, Mayor