CC WS 2021 11 08CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
NOVEMBER 8, 2021
Mayor Ryan called the work session to order at 5:00 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Rehm, Councilman
Campion, and Councilwoman Schubert.
COUNCIL MEMBERS ABSENT: Councilman McDonald.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Kelly Strey, Finance Director; Don Johnson, Fire Chief; Kate Aanenson, Community
Development Director; Charlie Howley, Public Works Director/City Engineer; Rick Rice, IT
Manager; and Kim Meuwissen, City Clerk.
PUBLIC PRESENT:
Jody McDevitt, Director of Sales, Energy Management Solutions
Gary Swanson, President/CEO, Energy Management Solutions
GENERAL FUND & PROPERTY TAX SUPPORTED FUNDS DISCUSSION
Finance Director Kelly Strey presented a PowerPoint. She reviewed what was discussed at the
previous budget meetings. Tonight she will be reviewing the General Fund and other Property
Tax Support. The November 22 Work Session agenda will include the CIP review and capital
projects funds, enterprise funds and utility rate review, debt study and debt service funds, fees
and charges review, and follow up from the November 8 Work Session as needed. The Truth-in-
Taxation meeting and budget adoption will occur on December 13.
Strey presented a slide showing the annual budget and 5-year financial plans which includes
Operating Revenue & Expenses, CIP, Debt Study, Utility Rate Study, Fees and Charges, Trend
Analysis, and the CAFR.
Strategic work that happened in 2021 included adopting the Strategic Plan, completing the
compensation study, and the facility needs analysis. Budget-related outcomes include Financial
Sustainability, Asset Management, and Operational Excellence. A slide showing a breakdown of
the proposed property tax levy adopted in September was reviewed. A change in the financial
impact on homeowners due to market value increases/decreases which affect the total amount
increased per property.
Strey presented a slide showing how Chanhassen’s proposed 2022 tax compares to comparable
cities. Strey provided a breakdown of how the $596,400 tax levy increase (4.9%) was arrived at
which includes Capital Plans, Current Service Levels, and Levy Available for Enhanced
Services.
Strey reviewed Fire Department decisions that need to be made which include Options 1-4, up to
$210,000 levy funding, ARPA, use of Fund Balance, and future tax levy implications.
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Strey presented a slide on the Fleet Replacement Fund and discussed issues and gaps in funding.
The implementation of the new light duty vehicle leasing program results in $300,000 in capital
funding can be redirected in 2021-2022. $400,000 can be removed from the Capital Fun in 2023-
2026. The first round of vehicles sales is estimated to provide $234,000 to the replacement fund.
The lease payments for the first round are within budget. Maintenance and gas savings will be
evaluated as they occur and will update for the 2023 budget.
Strey reviewed capital replacement fund needs which will be improved due to the new leasing
structure. Deferred maintenance and replacement needs had been identified in the heavy
equipment. Two fire trucks had been extended more than five years beyond their expected life
and will need to be replaced in 2023 and 2027. Fire Chief Don Johnson elaborated on the topic.
The updated CIP will be discussed in specific at the next meeting.
Council expressed concern regarding the future big budget increases, i.e. facility needs and Fire
Department staffing needs, park referendum etc. and if there was a plan in place to address these
increases.
Strey presented a five-year financial plan for the fleet leased program vehicles.
Strey presented a slide on the available general fund balance which includes the current available
fund balance, 2021 budget amendments to use fund balance, and 2022 proposed budget calls for
one-time use of fund balance. Budget 2022 general fund revenue sources and expenses were
reviewed. Successes in the general fund and capital funds were presented and the outlook for
maintaining AAA bond rating is positive.
Chief Johnson reviewed the Fire Department staffing PowerPoint that was presented at the
previous work session.
The Work Session recessed at 6:58 p.m.
The Work Session reconvened at 7:55 pm.
DISCUSS ELECTRIC VEHICLE CHARGING STATION OFFER FROM CARBON
SOLUTIONS GROUP
City Manager Laurie Hokkanen presented a PowerPoint on electric vehicles (EV) and electric
vehicle charging stations. Carbon Solutions Group’s (CSG) proposal includes installing a
network of 26 publicly-accessible EV charging stations at nine locations on city-owned property
at no cost to the City. In addition, the City will receive five electric vehicles.
Hokkanen showed the nine locations where EV charging stations would be installed which
include City Hall, Lake Ann Park, Lake Susan Park, Bandimere Park, Chanhassen Recreation
Center, public parking lot at Medical Arts buildings, public parking lot south of Tequila Butcher
on West 79th Street, Fire Station 2, and the Public Works building.
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Hokkanen reviewed specifics of the deal structure and how this effort ties in with the City’s
Strategic Plan (Financial Sustainability, Asset Management, Development and Redevelopment,
and Operational Excellence). The revenue potential was reviewed.
Jody McDevitt and Gary Swanson from Energy Management Solutions, Inc. answered questions
about electricity use, how long will the chargers last, and how long does it take to charge.
Software on charging stations will be updated automatically via cellular communications without
requiring City IT involvement. How do existing charging stations in the City (Goodwill, Kwik
Trip) compare to what is being offered by Carbon Solutions Group. Revenue share to the City
was reviewed and discussed. Public and private sectors will both invest in EV charging stations.
The charging stations generate renewable energy credits (RECs).
Mayor Ryan asked what direction the Council should take. Hokkanen responded that this was an
informational session. There is not a rush to approve; however, supply chain issues are causing
delays.
FUTURE WORK SESSION SCHEDULE
Hokkanen asked Council to confirm that Saturday, January 8 would work for the annual strategic
planning session.
The meeting adjourned at 8:46 p.m.
Submitted and prepared by Kim Meuwissen
City Clerk