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02-14-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES FEBRUARY 14, 2022 Mayor Ryan called the work session to order at 5:33 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Rehm, Councilman Campion (via Zoom), Councilman McDonald, and Councilwoman Schubert. COUNCIL MEMBERS ABSENT: None STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; Lt. Lance Pearce, Carver County Sheriff’s Office, and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Sgt. Kurt Schoening, Carver County Sheriff’s Office Jody McDevitt, Energy Management Solutions, Inc. (via Zoom) Gary Swanson, Energy Management Solutions, Inc. (via Zoom) ACTIVE SHOOTER TRAINING PRESENTATION Lt. Lance Pearce introduced Sgt. Kurt Schoening from the Carver County Sheriff’s Department who presented an Active Shooter Training PowerPoint presentation covering the following topics: • Workplace Violence • Mental Preparation – be aware of your surroundings • Run, Hide, Fight • Pre-Fight Indicators • Patrol Response • Council Questions: o What areas are safer; barrier type, steel vs. wood, closed door?  Depends on the building construction materials. Steel is better than wood. Sheet rock is better than nothing. Avoid open air and put anything between you and the shooter. The thicker the barrier the better. o How does law enforcement differentiate between the bad guys with the gun?  It’s difficult to determine off-duty law enforcement from a shooter. Find someone in a uniform. Law enforcement typically wear a center badge, uniform, and protective vests. Mayor Ryan thanked Sgt. Schoening for the presentation. Lt. Pearce added that if something feels wrong, act. City Council Work Session Minutes – February 14, 2022 2 CONSIDER ELECTRIC VEHICLE CHARGING STATION OFFER FROM CARBON SOLUTIONS GROUP Mayor Ryan reminded Council that they viewed a presentation at the November 8, 2021 work session and they asked for more information. Following tonight’s presentation, Council will be asked for a recommendation. City Manager Hokkanen presented the PowerPoint presentation. Presentation: Dirt Road EV Charging Program – Carbon Solutions Group The proposal has not changed since the November 8, 2021 work session presentation, which is to install a network of 26 publicly accessible charging stations at 9 locations on City owned property at no cost to the City. Most of the 26 EV charging station locations are in city parks. The City would also receive 5 electric vehicles, most likely Nissan Leafs, to add to the City’s fleet. In order to be eligible for the incentives, rebates and credits that Carbon Solutions Group will be getting in order to make this program possible, the City is required to operate a minimum of 5 electric vehicles. Hokkanen provided a detailed overview of the deal structure. Hokkanen provided an example of a different approach to bring EV charging stations into the community. Over the years, Carver County has applied for several grants to install an EV charging station at the Government Center and last year they received a grant from the MPCA in the amount of $10,000. The County will have to contribute $9,000 to completely fund the charging station. Carver County will own and operate the charging station and will receive any revenue that is generated, but they will also be responsible for the operation, electricity, maintenance, and any changes in technology. Carver County is also currently working with Carbon Solutions Group and is proposing to install two EV charging stations at the Chanhassen License Center and Minnewashta Park. This proposal could potentially tie in with the City’s Strategic Plan goals. A FlashVote survey was conducted in November of 2021 and those results are attached to the staff report for this item. The FlashVote survey gives us an idea of what the general sentiment in Chanhassen about EV charging stations might be. The Dirt Road EV Charging Agreement is not on tonight’s Council agenda for approval; however, staff would like direction from the City Council as to their interest in putting this item on a future regular agenda and what are the questions and items that need to be vetted out before this could happen. Mayor Ryan directed the Council to ask questions or provide comments. Questions: • After year 10 would the City have to pay for the 5 electric vehicles? Will this amount be comparable to our lease payments with the Enterprise Leasing program? o There is no requirement to purchase the vehicles. A buyout option is provided after 5 years if the City chooses to purchase them. The City will re-evaluate with current options available at that time, whether to lease additional vehicles through Enterprise or to exercise this buyout option. • What is the plan for replacing sedans? If we don’t have any the sedans, would they replace the light-duty pickups or small SUVs? o Public Works Director/City Engineer Charlie Howley explained we don’t have the data from Enterprise for leasing a small sedan. Right now, three of these five electric vehicles could replace three of our smaller gas-powered vehicles pretty easily based on use. City Council Work Session Minutes – February 14, 2022 3 Depending on future growth, we will have to add more vehicles to our fleet. Hokkanen added that if the current rate of building activity continues there is an expectation of adding a building inspector which would require an additional dedicated vehicle. The IT person that was hired last year is currently using their personal vehicle. • What is the cost of electricity to the customer? Can that cost be put in the contract? How competitive are your rates? o Carbon Solutions Group has made it well known that they truly want to be the low-cost provider. The target cost is 20-25% less than gasoline to drive the equivalent mileage. They will be extremely competitive with the cost of gasoline and lower than other EV charging stations on the market. Carbon Solutions Group determines the cost calculation. They will also be releasing a subscription model to users that will save money. • Can electric bikes be charged at the EV charging stations? o Not at this time because electric bicycles typically use a 110 volt wall outlet. However, Hokkanen referenced that a resident experienced with electric bicycles told her that there is a $150 adapter that users could purchase. The preference would be that the charging station would provide the electricity without the use of an adapter. • Will the price of the electricity fluctuate depending on usage of the EV charging stations? o Possibly if there is a lot of utilization, but the short answer is no and the prices are pretty well set. Electric rates are reviewed about every three years; however, when Carbon Solutions Group contracts with Xcel, the rates are locked in for 10 years. • Where will the 5 electric vehicles be stored and will they have separate charging stations or will they have to share the proposed EV charging stations? o Hokkanen stated the City’s electric vehicles will be stored at City Hall and Public Works, both of which are proposed to have EV charging stations. Most likely the City will obtain a subscription and use the EV charging stations located at City Hall and Public Works during the daytime hours. • Will the City be collecting the Franchise Fee that is charged to other utilities? o Yes, any meter in the City would be subject to the Franchise Fee. o If the Franchise Fee is charged per meter, how many would be charged?  Nine, one for each EV charging location. • Will park hours affect charging EVs after hours? o EV charging stations would be available only during park hours. Stations are turned on 24/7 but information can be added to the app stating these stations are not available after hours. Customers would most likely drive into the City and not the parks. • How will the EV charging stations be identified and how are their locations determined/chosen? o Hokkanen stated the intention is not for the EV stations to be closest to the door. It depends on access to electricity. There has been a collaborative effort between Carbon Solutions Group and the City to locate charging stations. Location maps will be provided. Hokkanen stated that Carver County has not had any issues. • How many other groups like Carbon Solutions Group are out there? Who are the competitors? o There are three nationwide competitors, one of which is currently not in Minnesota (EVgo). Electrify America only installs fast-charging stations at freeway exits and strip malls. Tesla also has a nationwide network of EV charging stations; however, they only charge Tesla vehicles. • Was Carbon Solutions Group required to go through a vetting process with Xcel Energy? o No, they have no formal agreement with Xcel. • 10-year contract – how locked in is the City? City Council Work Session Minutes – February 14, 2022 4 o Hokkanen stated that the City is committed to participate in the program for 10 years. That means we are contributing the property. The City could invite other companies to install chargers at any time in the same locations before the 10-year contract is up. After 10 years we can have Carbon Solutions Group’s equipment removed. There is language in the agreement that would allow the City to end the contract after 5 years; however, the City would have to buy out the remaining term of the agreement. • Does Carbon Solution Group’s proposal require a defined number of spaces and locations or does the City decide those numbers? o Hokkanen stated that 5 cars is the minimum required to participate in the program. • Is the contract the same for all municipalities or is it based on population? o Xcel Energy has criteria on the amount of charging capacity per site and the 5 vehicles is an overall requirement minimum for Carbon Solutions Group to begin the rebate process and receive incentives from Xcel Energy. The Xcel Energy rebate and incentive program ends in July. • The 5 vehicles have 15,000 miles built in and then the City is charged 20 cents per mile after that. What is the City’s typical mileage? o Howley stated that it depends on which vehicles are being used; however, most of the runaround vehicles won’t reach the annual 15,000 mileage limit. City Council directed Staff to place the item on both the February 28 City Council work session agenda for final review and on the regular agenda for approval of the agreement. FUTURE WORK SESSION SCHEDULE 02/28/2022 – Commission interviews 03/14/2022 – Commission interviews and City Manager performance review 03/21/2022 – Facilities Study Discussion 04/11/2022 – Fire Department/Public Safety Staffing Update, ARPA Discussion 04/25/2022 – Short-Term, Rental, and Business Licensing, City Council Roundtable 05/09/2022 – Park Referendum Update 05/23/2022 – Lower Bluff Development Planning The meeting adjourned at 7:03 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk