Pursuant to due call and notice thereof, a Special City Council Meeting was duly held in the
City Hall Conference Room at 2:02 p.m. on the 1st day of May 2009. The following members
were present: Mayor Diane Barrett, Council members Fred Barsness, Bryan Haugen, and
Brian Paulson. Absent: Richard Nielsen. Also present: City Administrator Chris Heineman
and Administrative Assistant Pam Blow.

HVAC Update
Heineman noted that the relocation of the furnace in the Liquor Store would not conflict with
future renovations, and will insure that the air intake is properly vented. The original bid of
$5,400 from Haasnoot Plumbing and Heating, will include a higher BTU than originally bid,
at the same price. Barrett noted that the “keg” cooler keeps needing repairs, and may need to
be considered for upgrading sooner than planned.

Review Manager Position Description
Barsness commented that he would prefer to keep the management situation as it is for the
time being, and compensate Meggan Loken accordingly. Heineman noted that the changes he
made to the Liquor Store Manger’s position description were modified in the area of
“Essential Functions” to include coordination of duties that more clearly define the manager
position. Motion by Barsness, seconded by Paulson to approve the updated Liquor Store
Manager Position Description. Motion carried 4-0-0.

Management Issues and Options
Paulson noted that he prefers to delay the hiring of a Liquor Store Manager at this time, to
insure that the correct management decision is made. Barsness noted that Loken will be
getting help with the bookkeeping, but he wants to make sure that she doesn’t “burn out” from
the additional duties.

Cash Flow Update
Heineman noted that the actual cash is approximately $300,000 less than on 5/1/2008, due to
non-budgeted expenditures (Mogren Hill / Front Street improvements) during 2008. The
operational cash flow is depleted until tax payments are disbursed in July. Barrett noted that
the Council has done a good job of delaying projects in an effort to be fiscally responsible.
According to Heineman, the licensing of the Wastewater Plant with the MPCA is moving
forward, and we can proceed with licensing current employees to operate the plant. Barsness
suggested that there could be ways for the Public Works and Kenyon Municipal Utility staff
to share more duties in an effort to save money. A joint work session will be scheduled at 6
p.m., prior to the regular Council meeting on May 12, 2009. There was a discussion regarding
cost saving strategies for street lights currently paid for by the City. Randy Eggert,
Operations Superintendent for KMU, prepared some cost-saving ideas, and it was
recommended that (1) the lights around the school (15 total) be turned off, or cost turned over
to the School District; (2) seven or eight of the thirteen lights on Huseth Street be turned off;
(3) ten of the twenty lights on the Boulevard of Roses be turned off; (4) half of the lights on
Main Street (2nd St.) be turned off, and (5) get “photo-eye” sensors to regulate other lights
(turn off between 1:30 and 4:30 a.m.).

Health Insurance Update
Heineman noted that it is common for employees to pay twenty percent of the cost for health
insurance. Currently, employees pay $100 per month (dependent coverage) or $25 per month
(single). After looking at various options for employee contributions, the group decided that
the employees should pay 25% of the HSA contribution, and the City would pay 75% for the
renewal on July 1, 2009.

Proposed Budget Amendments
Barrett noted that the budget reductions discussed in February, are reflected on the
spreadsheet distributed by Heineman. Options for further reductions in payroll were
considered; specifically, reducing the hours of operation for City Hall. The group would like
employees to have input on this, and it will be considered at a future date. Motion by Paulson,
seconded by Barsness to approve the amended budget. Motion carried 4-0-0.

CMMPA Agreements
According to Heineman, the Market Participation Agreement and Agreement for Additional
Services have been amended and are ready for signatures.

Security State Bank / Kenyon Grill Update
Heineman noted that there was an agreement, as a part of the purchase proposal in 2007, to
waive an outstanding utility bill for the Kenyon Grill. Security State Bank (SSB) assumed the
waiver would apply for the current buyer of the property. Barrett noted that she informed the
SSB officer that contacted her that any waiver would be purely a KMU decision, and the bank
should have a representative attend the next KMU Commission meeting. The new owners of
the Kenyon Grill are hoping to open by June 15, 2009.

Kenyon Municipal Swimming Pool Update
Because of the new requirement effective January 1, 2009, all bodies of water with a depth of
4’ or less must be dual in parallel; or unblockable. The wading pool may not meet that
criteria, and two options would be available: (1) drain and plug the wading pool, or (2) cut
between the two pools. Barsness noted that elimination of the wading pool could be done by
filling it with sand and putting cement over the sand. Heineman is to get a definite answer
from Goodhue County to determine if the wading pool would conform to the new

Barrett noted that the flags flown by the City at various locations will be replaced as needed
by the Kenyon Color Guard.

Motion by Haugen, seconded by Barsness to adjourn the meeting at 3:45 p.m.

Pam Blow, Administrative Assistant                  Diane Barrett, Mayor

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