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 9th day of December 2025. The meeting was called to order by Acting Mayor Mary Bailey
The following members were present: Council Members Lee Sjolander, Mary Bailey, Elana Brunner, and Kim Helgeson
Absent: Mayor Donald Kirchmann
Also, present: City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Attorney Scott Riggs, John Lee, Doug Henke, Police Chief Jeff Sjoblom, Engineer Derek Olinger, Josh Johnson, John Mortensen, Brady Fischer
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
ADOPT AGENDA
Motion by Brunner seconded by Helgeson to approve the agenda. Motion carried 4-0-0.
CONSENT AGENDA
Motion by Sjolander second by Helgeson to approve the Consent Agenda, which includes:
Resolution 2025-28: Accepting Kenyon Fire Relief Association Donations to the City of Kenyon
City of Kenyon and Township 2026 Fire Contract
Jacobsen Law - Request for Increase to Fees for 2026 Criminal Prosecution Contract
Financials and Payment of check numbers, 77665 through 77730; 7062E through 7099E
Council Minutes of November 12, 2025
Council Special Minutes of December 2, 2025
Motion carried 4-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
ADMINISTRATOR UPDATE
ENGINEERING
2025 Street and Utility Improvements
Engineer Olinger reported that Fitzgerald has completed work for this year. The project will be finished in 2026. Pay application No. 4 includes work from November 1 to November 28 in the amount of $220,801.37.
Fitzgerald Excavating and Trucking Change Order No. 1
Engineer Olinger stated that a change order was being done to clean up some administrative changes. It was not quite ready yet, so it was tabled.
2025 Street and Utility Improvements – Fitzgerald Excavating & Trucking -Pay Application No. 4
Motion by Sjolander seconded by Bailey to approve pay application #4 to Fitzgerald Excavating in the amount of $220,801.37. Motion carried 4-0-0.
LEGAL
Ordinance No. 113: Regulating the Discharge of Firearms, Bows, and Hunting Within City Limits
Attorney Riggs reviewed Ordinance No. 113, which adds a section to the city code regulating the discharge of firearms, bows, and hunting within city limits. The revised ordinance incorporates changes discussed at the previous meeting.
Motion by Helgeson seconded by Sjolander to adopt Ordinance No. 113. Motion carried 4-0-0.
Resolution 2025-25: Approving Publication of Ordinance No. 113 by Title and Summary
Motion by Helgeson seconded by Brunner to adopt Resolution 2025-25. Motion Carried 4-0-0.
MN Paid Leave Policy
Attorney Riggs reviewed a draft Minnesota Paid Leave Policy based on the League of Minnesota Cities model. The City is required to have a policy in place for the new state paid leave program.
Motion by Sjolander seconded by Helgeson to approve the MN Paid Leave Policy, with staff authorized to make necessary changes. Motion carried 4-0-0.
Firebird LLC Contract
Attorney Riggs stated that the EDA approved a purchase and development agreement with Firebird, LLC for a lot in the Kenyon Industrial Park and recommended Council approval.
Motion by Sjolander, seconded by Bailey, to approve the purchase and development agreement with Firebird, LLC. Motion carried 4-0-0.
Power Sales Agreement
Attorney Riggs reported that the KMU Commission recommended approval of a power agreement with CMPAS to purchase one-half megawatt of wind energy, with the option to purchase an additional one-half megawatt if available.
Resolution 2025-31 Authorizing the Execution of Bingham Lakes Facility Wholesale Power Agreement
Motion by Helgeson seconded by Brunner to adopt Resolution 2025-31. Motion carried 4-0-0.
FINANCIAL
OLD BUSINESS
2026 Budget and Levy
Resolution 2025-29: Adopting the 2026 Budget and Establishing the Tax Levy for Payable 2026
Administrator Lehner reported that the Truth in Taxation hearing was held on December 2. The final budget reflects a maximum proposed levy increase of 9.18 percent for 2026.
Motion by Bailey second by Helgeson to adopt Resolution 2025-29 adopting the 2026 budget and establishing the tax levy of $1,528,541 payable in 2026. Motion carried 4-0-0.
Approve posting the Line Worker/Water Operator Position
Administrator Lehner stated that the KMU Commission recommended posting the Line Worker/Water Operator position to replace Austin Fitch, who resigned in May.
Motion by Sjolander, seconded by Brunner, to approve posting the Line Worker/Water Operator position. Motion carried 4-0-0.
NEW BUSINESS
CEDA 2025 Contract
Administrator Lehner reported that the City’s contract with CEDA is up for renewal. The EDA recommended approving the CEDA contract for contracted services totaling $55,053 annually for two days per week.
Motion by Bailey seconded by Brunner to approve the 2026 CEDA contracted services.
Motion carried 4-0-0.
Resolution 2025-30: A Resolution Committing Capital Fund Balance
Administrator Lehner explained that Governmental Accounting Standards Board (GASB 54) requires public entities to commit year-end capital fund balances prior to year end, contingent upon audited final figures. Final capital fund balances will be determined following completion of the 2025 audit.
Motion by Sjolander seconded by Bailey to adopt Resolution 2025-30 committing capital fund balances.
Motion carried 4-0-0.
2026 Tobacco License Renewals
Kenyon Market, River Country Co-Op (Circle K), Kenyon Municipal Liquor Store, Dollar General, Kenyon Tobacco and Vape
Motion by Helgeson seconded by Brunner to approve the 2026 tobacco license renewals.
Motion carried 4-0-0.
Governance in Action Conference
Administrator Lehner reported that MMUA is offering a Governance in Action training conference for utility commissioners and local leaders. He recommended attendance by KMU Commissioners but did not see it as beneficial for the council members to attend. Estimated cost is approximately $600 per attendee.
Motion by Sjolander seconded by Helgeson to approve the KMU Commissioners attend this conference.
Motion carried 4-0-0.
Administrative Policy #39: Paid Time Off Cash-Out
Administrator Lehner stated that the proposed policy would allow employees to cash out PTO balances exceeding 80 hours at year end.
Motion by Bailey seconded by Helgeson to adopt Administrative Policy #39: Paid Time Off Cash-Out. Motion carried 4-0-0.
Auditing Services RFP
Administrator Lehner reported that two proposals were received for auditing services. The City’s current auditor, ABDO, is no longer able to perform the audit due to its role in providing finance services. BerganKDV proposed fees of $27,540 for the first year, increasing to a maximum of $29,500 by the third year. CliftonLarsonAllen proposed fees of $97,640 for the first year, increasing to $70,940 by the third year.
Motion by Sjolander seconded by Brunner to accept the proposal from BerganKDV with the option to reevaluate the contract after one year. Motion carried 4-0-0.
Holiday Office Closings
Administrator Lehner requested approval for City Offices and Library to be closed Wednesday, December 24 and Friday, December 26.
Motion by Bailey seconded by Helgeson to close the City Office and Library on Wednesday, December 24 and Friday, December 26. Motion carried 4-0-0.
Schedule for Upcoming Meetings
KMU Meeting: Tuesday, December 16th @ 3:00 p.m.
EDA Meeting: Tuesday, December 16th @ 8 a.m.
City Council Meeting: Tuesday, January 13th @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Council member Brunner thanked all staff for their work.
Council Member Sjoblom appreciated Public Works for keeping the street clean and the Police for patrolling the city. He was glad that KMU was approved to hire additional staff.
Council Member Helgeson reminded everyone of Christmas in Kenyon on Saturday, December 13.
Administrator Lehner noted that he had received an email informing the city that Hiawatha Transit would be cancelling service in Kenyon as of January 1.
Police Chief Sjoblom thanked the public for their local donations.
Brady Fischer questioned what was going on with police officer Homeier. Lehner stated that Homeier is currently on administrative leave.
Fischer also asked where his utility money goes. Council member Sjolander offered to get a list from him and find answers. The KMU staff also talked with Fischer after the meeting.
Motion by Helgeson seconded by Brunner to adjourn the meeting at 8:43 p.m. Motion carried 4-0-0.
Holli Gudknecht, Deputy City Clerk
Mary Bailey, Acting Mayor
