HomeMy WebLinkAbout~Master - June 18, 2024, Joint Special Meeting of the Ames City Council and Electric Utility Operations Review and Advisory Board1 .Motion approving request from Discover Ames for Fireworks Permit for display from ISU Parking
Lot G10 East of Jack Trice Stadium at 10:00 p.m. on July 3, 2024, with a rain date of July 5th, for
Independence Day Celebration
2.Second reading on a Zoning Text Amendment to the Zoning Ordinance for a new exception and
related standards for outdoor storage in the General Industrial (GI) Zoning District
3.Second reading on Rezoning 2212 Oakwood and Adjacent Right-of-Way from Agricultural (A) to
Suburban Residential Low Density Floating Zone (FS-RL)
4.Second reading of ordinance relating to Zoning Text Amendment for 20% Alternative Design
Adjustments to General and Base Zone Development Standards
5.Second reading on Zoning Text Amendment on updates to Chapter 9 Flood Plain Zoning
Regulations
6.Electric Services Cost of Service Study
AGENDA
JOINT SPECIAL MEETING OF THE AMES CITY COUNCIL AND ELECTRIC UTILITY
OPERATIONS REVIEW & ADVISORY BOARD
COUNCIL CHAMBERS - CITY HALL
JUNE 18, 2024
NOTICE TO THE PUBLIC: The Mayor and City Council welcome comments from
the public during discussion. The Standards of Decorum, posted at the door and
available on the City website, define respectful conduct for public participation. If you
wish to speak, please fill out the form on the tablet outside the door to the Council
Chambers or scan the QR Code to the right to fill out the same form on a personal
device. When your name is called, please step to the microphone, state your name for
the record, and keep your comments brief so that others may have the opportunity to speak.
CALL TO ORDER: 6:00 p.m.
CONSENT AGENDA : All items listed under the Consent Agenda will be enacted by one motion.
There will be no separate discussion of these items unless a request is made prior to the time the
Council members vote on the motion.
ORDINANCES:
WORKSHOP:
DISPOSITION OF COMMUNICATIONS TO COUNCIL:
COUNCIL COMMENTS:
ADJOURNMENT:
Please note that this agenda may be changed up to 24 hours before the meeting time as provided
by Section 21.4(2), Code of Iowa.
1
ITEM #:1
DATE:06-18-24
DEPT:ADMIN
SUBJECT:FIREWORKS PERMIT FOR INDEPENDENCE DAY FIREWORKS
COUNCIL ACTION FORM
BACKGROUND:
Discover Ames is organizing the annual Independence Day Fireworks Display, which will take place on
July 3, 2024. The fireworks will be launched from ISU Parking Lot G10, east of Jack Trice Stadium.
The display is anticipated to begin at 10:00 p.m. and will be between 15 and 20 minutes in length. A
rain date has been requested for July 5.
The display operator is J&M Displays, which has substantial experience launching the Ames
Independence Day fireworks display. The display operator and Discover Ames have filed a Fireworks
Permit application (attached), which has received approval signature from representatives of ISU
Environmental Health and Safety, ISU Police, ISU Risk Management, and the Ames Fire Inspector. A
certificate of liability insurance is on file with the City Clerk’s Office.
Community members can view the display from adjacent stadium parking lots. It should be noted that
construction in the lots between Jack Trice Stadium and Hilton Coliseum will limit the available
parking for the display. To address this, Discover Ames has arranged with ISU to make available
several grass parking lots adjacent to the stadium.
ALTERNATIVES:
1. Approve a Fireworks Permit for the Independence Day Fireworks Display on July 3, with a rain
date of July 5.
2. Do not approve a Fireworks Permit.
CITY MANAGER'S RECOMMENDED ACTION:
The Independence Day Fireworks Display is a popular community event. City staff has consulted with
Discover Ames and ISU officials regarding the planning for the display, and all appropriate application
materials and approvals have been obtained. Therefore, it is the recommendation of the City Manager
that the City Council adopt Alternative No. 1 as described above.
ATTACHMENT(S):
Fireworks Permit Application - July 3 .pdf
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To:Mayor & City Council
From:Planning & Housing
Date:June 14, 2024
Subject:Zoning Text Amendment for a new exception and related standards for
outdoor storage in the General Industrial (GI) Zoning District
Item No. 2
MEMO
The ordinance related to a Zoning Text Amendment to the Zoning Ordinance for a new
exception and related standards for outdoor storage in the General Industrial (GI) Zoning
District is attached for your review and consideration for second reading.
ATTACHMENT(S):
DRAFT_Zoning_Text_Amendment_to_allow_Outdoor_Storage_in_GI_zone.pdf
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
9
ORDINANCE NO. ____________
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA, ENACTING NEW SECTIONS
29.901(5), 29.1506(4)(g) and 29.1506(5)(h) THEREOF, FOR THE
PURPOSE OF ALLOWING OUTDOOR STORAGE USE IN THE
GENERAL INDUSTRIAL (“GI”) ZONING DISTRICT
REPEALING ANY AND ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH
CONFLICT; PROVIDING A PENALTY; AND ESTABLISHING
AN EFFECTIVE DATE.
BE IT ENACTED, by the City Council for the City of Ames, Iowa, that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby
amended by enacting new Sections 29.901(5), 29.1506(4)(g) and 29.1506(5)(h) as follows:
“Sec. 29.901. "GI" GENERAL INDUSTRIAL ZONE.
***
(5)GI Outdoor Storage.
(a)Within the GI zoning district, outdoor storage is permitted so long as it complies with the
minimum setbacks, as required in Sec. 29.405.
(b)The Zoning Board of Adjustment may grant exceptions to minimum side and rear setbacks for
GI outdoor storage if the following conditions are met:
(i)The subject property line abuts another industrial zoning district,
(ii)Adequate buffering, screening, or setbacks are provided if deemed necessary due to
the surroundings,
(iii)The exception is in conformity with the intent and purpose of the zoning ordinance
and the general plan of the community,
(iv)The exception does not alter the applicant’s obligation to comply with other
applicable laws or regulations, and
(v)That a reduction of side or rear setbacks will not impair or infringe upon the use of
neighboring property or be detrimental to the public health, safety, or general
welfare.
***
Sec. 29.1506. EXCEPTIONS.
***
(4)When Authorized.The Zoning Board of Adjustment is authorized to grant the following
exceptions:
***
(g) For GI outdoor storage, minimum side and rear setbacks pursuant to Sec. 29.901(5)(b).
***
(5)Review Criteria.Before an exception can be granted, the Board of Adjustment shall establish that
the following standards have been or shall be satisfied:
***
(h)GI Outdoor Storage Exceptions. The Board may grant exceptions to minimum side and rear
setbacks in accordance with the standards set forth in 29.901(5).
***.”
10
Section Two. Violation of the provisions of this ordinance shall constitute a municipal infraction
punishable as set out by law.
Section Three. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to
the extent of such conflict, if any.
Section Four. This ordinance shall be in full force and effect from and after its passage and
publication as required by law.
Passed this day of , 2024.
_____________________________________________________________________________
Renee Hall, City Clerk John A. Haila, Mayor
11
To:Mayor & City Council
From:Planning & Housing
Date:June 14, 2024
Subject:Rezoning 2212 Oakwood and Adjacent Right-of-Way from Agricultural (A)
to Suburban Residential Low Density Floating Zone (FS-RL)
Item No. 3
MEMO
The ordinance related to Rezoning 2212 Oakwood and Adjacent Right-of-Way from
Agricultural (A) to Suburban Residential Low Density Floating Zone (FS-RL) is attached
for your review and consideration for second reading.
ATTACHMENT(S):
2212 Oakwood Road - Rezoning.docx
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
12
DO NOT WRITE IN THE SPACE ABOVE THIS LINE, RESERVED FOR RECORDER
Prepared by: City Clerk’s Office, 515 Clark Avenue, Ames, IA 50010 Phone: 515-239-5105
Return to: Ames City Clerk, P.O. Box 811, Ames, IA 50010
ORDINANCE NO.
AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE
CITY OF AMES, IOWA, AS PROVIDED FOR IN SECTION 29.301 OF THE
MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY CHANGING THE
BOUNDARIES OF THE DISTRICTS ESTABLISHED AND SHOWN ON
SAID MAP AS PROVIDED IN SECTION 29.1507 OF THE MUNICIPAL
CODE OF THE CITY OFAMES, IOWA; REPEALING ALL ORDINANCES
AND PARTS OF ORDINANCES IN CONFLICT HEREWITH AND
ESTABLISHING AN EFFECTIVE DATE
BE IT HEREBY ORDAINED by the City Council of the City of Ames, Iowa;
Section 1: The Official Zoning Map of the City of Ames, Iowa, as provided for in Section
29.301 of the Municipal Code of the City of Ames, Iowa, is amended by changing the boundaries
of the districts established and shown on said Map in the manner authorized by Section 29.1507
of the Municipal Code of the City of Ames, Iowa, as follows: That the real estate, generally located
at 2212 Oakwood Road, is rezoned from Agricultural (A) to Suburban Residential High Density
Floating Zone (FS-RL).
Real Estate Description:Parcel M in the Southwest Quarter of the Southeast Quarter, Section 16,
Township 83, Range 24, West of the 5th P.M., City of Ames, Story County, Iowa, Instrument No. 2020-
06637, and adjacent Oakwood Road right-of-way.
Section 2: All other ordinances and parts of ordinances in conflict herewith are hereby
repealed to the extent of such conflict.
Section 3: This ordinance is in full force and effect from and after its adoption and
publication as provided by law.
ADOPTED THIS day of ,.
Renee Hall, City Clerk John A Haila, Mayor 13
To:Mayor and City Council
From:Planning & Housing
Date:June 14, 2024
Subject:Zoning Text Amendment to allow for 20% Alternative Design Adjustments
to General and Base Zone Development Standards
Item No. 4
MEMO
The ordinance relating to Zoning Text Amendment to allow for 20% Alternative Design
Adjustments to General and Base Zone Development Standards is attached for your
review and consideration for second reading
ATTACHMENT(S):
Draft_Ordinance__Site_Design_Standards__kgd.docx
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
14
ORDINANCE NO. _______
AN ORDINANCE TO AMEND THE MUNICIPAL CODE
OF THE CITY OF AMES, IOWA, BY AMENDING
SECTIONS 29.101, 29.103(2), 29.303, 29.305(3) AND
29.1501(3)(d)AND ENACTING A NEW SECTION
29.1502(7) AND REPEALLING SECTION 29.1303 AND
ENACTING A NEW SECTION 29.414 THEREOF, FOR
THE PURPOSE OF ESTABLISHING ALTERNATIVE
DESIGN REVIEW FOR NUMERIC OR SITE DESIGN
STANDARD ADJUSTMENT UP TO 20% APPROVAL OF
PLANNING DIRECTOR AND DRIVE-THROUGH
FACILITIY STANDARDS REPEALING ANY AND ALL
ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT TO THE EXTENT OF SUCH CONFLICT;
AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED, by the City Council for the City of Ames, Iowa, that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is
hereby amended by enacting a new Section 29.1502(7) and Section 29.414, as follows:
“Sec. 29.101. STATUTORY AUTHORIZATION.
The provisions of Section 414.4 of the Iowa Code, as amended, authorize the City Council
to determine, establish and enforce the regulations, restrictions of buildings and land, and for and
the boundaries of the Zones set forth in the Ordinance.
***
Sec. 29.103. VALIDITY, SEVERABILITY & EFFECTIVE DATE.
***
(2)Effective Date. The Ordinance shall be in full force and effect from and after its
enactment in accordance with Section 414.4 of the Iowa Code.
***
Sec. 29.303. GENERAL DEVELOPMENT STANDARDS AND ZONING REGULATIONS.
***
Sec. 29.305. APPLICATION OF DEVELOPMENT STANDARDS.
No structure shall be constructed or altered or use of land established or altered except in
conformance with all applicable Development Standards. Alternative Design Review for certain
Development Standards must be approved per requirements of Article 15. Any site previously
developed that does not conform to the Development Standards of this ordinance without approval
of an Alternative Design approval shall be considered nonconforming as defined within Article 3.
This Ordinance provides for Development Standards as follows:
(1)General Development Standards. General Development Standards are
applicable to development in all zones and are set forth in Article 4.
(2)Zone Development Standards. Zone Development Standards are applicable to
development in each zone and are set forth in the Articles and Sections describing each zone or
district.
15
(3)Special Use Standards. Special individual uses have additional development
standards and use regulations as established within Article 13.
***
Sec. 29.4141303. DRIVE-THROUGH FACILITIES.
All Drive-Through Facilities, whether primary or accessory uses, must comply with the
following conditions:
(1)Setbacks and Landscaping.Stacking lanes and driveways are parking lot areas
for conformance to development standards. Stacking lanes for a Drive-Through Facility must be
setback at least 5 feet from all lot lines. Where the setback abuts a Residential Zone, the setback
must be landscaped to at least the High Screen Standard.
(2)Design and Layout. Stacking lanes must be designed to provide adequate on-site
maneuvering, queuing, and circulation area, so that stacking vehicles will neither impede traffic on
abutting streets nor interfere with vehicle circulation.
***
Sec. 29.1501. BUILDING/ZONING PERMIT.
***
(3)Procedures.
***
(d)Alternative Design Review. Prior to approval of a Building/Zoning
Permit, approval in writing of an Alternative Design may be approved by the Planning Director per
the standards of 19.1502(7).
***
Sec.29.1502 SITE DEVELOPMENT PLAN REVIEW.
***
(7)Alternative Design Review.
(a)Any Numeric Zoning Development Standard or General Design Standard
regulations identified in this Section may be adjusted up to 20% by approval of the Planning
Director if the following criteria are met:
(i)Whether the requested adjustment, and combination and totality of
adjustments, are consistent with all relevant purpose and intent statements of this ordinance.
(ii)Whether there is an operational need or desirable benefit to the project.
(iii)Whether the requested alternative offsets the effect of the request by
providing something of equal or better consistency of intent of the requirement or zoning district (
(iv)Whether the requested exception will have a substantial or undue adverse
effect upon adjacent property, the character of the surrounding area or the public health, safety and
general welfare;
(v)Other factors determined relevant by the planning director, planning and
zoning commission, or city council as applicable.
(b) Alternative design approvals must be applied for as a part of the applicable permit
process. Only alternative design approvals issued in writing are valid adjustments to zoning and
development standards.
(i).All numeric remainders after a 20% adjustment is calculated will be
rounded to the nearest whole number that achieves the intended 20% adjustment.
16
(c)Eligible Zoning Districts and Development Standards:
(i)All Article 6 Agricultural Zones
(ii)All Article 7 Residential Zones
(iii)All Article 8 Commercial Zones
(iv)All Article 9 Industrial Zones
(v)South Lincoln Sub Area Mixed Use District
(vi)Southeast Entryway Gateway Overlay
(vii)Southwest Gateway Overlay
(viii)FS Suburban Residential Zones
(ix)Article 4 Development Standards
(x)F-VR Village Residential Development Standards
(d)Ineligible standards. The following standards in Chapter 29 of the Municipal Code
are not eligible:
(i)Density (including lot area per unit)
(ii)Location of and paving of vehicle maneuvering areas and driveways in a
front yard
(iii)Minimum lot frontage
(iv)Rock size limitations in Campustown Service Center Standards
(v)Lighting output standards
(vi)Fence Height Limitations
(vii)Dwelling Design Standards of 29.409 and 29.410.
(viii)Building Story Limitations
***”
Section Two. All ordinances, or parts of ordinances, in conflict herewith are hereby
repealed to the extent of such conflict, if any.
Section Three. This ordinance shall be in full force and effect from and after its passage
and publication as required by law.
Passed this day of , 2024.
_______________________________________________________________________
Renee Hall, City Clerk John A. Haila, Mayor
17
To:Mayor & City Council
From:Planning & Housing
Date:June 14, 2024
Subject:Zoning Text Amendment on updates to Chapter 9 Flood Plain Zoning
Regulations
Item No. 5
MEMO
The ordinance relating to a Zoning Text Amendment on updates to Chapter 9 Flood Plain
Zoning Regulations is attached for your review and consideration for second reading.
ATTACHMENT(S):
Ordinance (Chap 9 Floodplain).pdf
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
18
ORDINANCE NO. ________
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA, BY AMENDING SECTIONS
9.1(1), 9.2(2), 9.4 (1)(3)(d), 9.5(2)(d)(k) and 9.7 (1)(b)(ix)
THEREOF, FOR THE PURPOSE OF AMENDING FLOOD
PLAIN ZONING REGULATIONS REPEALING ANY AND
ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND
ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED, by the City Council for the City of Ames, Iowa, that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby
amended by amending Sections 9.1(1), 9.2(2), 9.4 (1)(3)(d), 9.5(2)(d)(k) and 9.7 (1)(b)(ix) as follows:
“Sec. 9.1. STATUTORY AUTHORIZATION, FINDINGS OF FACT, AND PURPOSE.
(1) Statutory Authorization. The legislature of the State of Iowa has, in Chapter 414 Code of
Iowa, delegated the responsibility to cities to enact zoning regulations to secure safety from flood and to
promote health and the general welfare. The legislature of the State of Iowa has granted jurisdiction to the
Iowa Department of Natural Resources over water and floodplains in Chapter 455B Section 2 of the Code of
Iowa. The Iowa Department of Natural Resources has delegated authority to local units of government in
Chapter 455.276 of the Iowa Code.
***
Sec. 9.2. GENERAL PROVISIONS.
***
(2) Establishment of Official Flood Plain Zoning Map. The Story County, Iowa and Incorporated
Areas Flood Insurance Rate Map (FIRM), City of Ames, The Flood Insurance Rate Maps (FIRMs) for Story
County, Iowa and Incorporate Areas, City of Ames, Panels 19169C0135F, 0137G, 0139G, 0141F, 0142F,
0141G, 0142G, 0143G, 0144G, 0155F, 0161F, 0162F, 0163G, 0164F, 0168F, 0170F, 0256G, 0257G, 0276F,
0277F, dated January 15 2021, which were prepared as part of the Flood Insurance Study for Story County
and digital FIRM equivalent are hereby adopted by reference and declared to be the Official Floodplain
Zoning Map.
***
Sec. 9.4. FLOODWAY OVERLAY DISTRICT.
(1) Permitted Uses. The following uses shall be permitted within the Floodway Overlay District to
the extent they are not prohibited by any other ordinance or underlying zoning district regulation, and
provided they do not include placement of habitable structures, factory-built homes, fill or other obstruction
the storage of materials or equipment, excavation, or alteration of a watercourse (except as needed for public
infrastructure): All development within the Floodway Overlay District shall be permitted to the extent that
they are not prohibited by any other ordinance (or underlying zoning district regulation) and provided they
do not include the placement of structures, factory-built homes, fill, obstructions, the storage materials or
equipment, excavation, or alternation of a watercourse:
***
(3) Performance Standards. All Floodway Overlay District development allowed as a Permitted
Development shall meet the following standards:
(d) Structures, buildings, recreational vehicles, and sanitary and utility systems, if
permitted, shall meet the applicable performance standards of the Floodway Fringe Overlay District and shall
be constructed or aligned to present the minimum possible resistance to flood flows.
***
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Sec. 9.5. FLOODWAY FRINGE OVERLAY DISTRICT.
***
(2) Performance Standards.
(a) All Structures shall
(i) be designed and adequately anchored to prevent flotation, collapse or lateral
movement.
***
(d) Factory-built homes:
(i) Factory-built homes including those placed in existing factory-built home
parks or subdivisions shall be anchored to resist flotation, collapse, or lateral movement. (i) All new and
substantially improved factory-built homes, including those placed in existing factory-built home parks or
subdivisions, shall be anchored to resist flotation, collapse, or lateral movement. Anchorage systems may
include, but are not limited to, use of over-the-top or frame ties to ground anchors as required by the State
Building Code.
***
(k) For all new and substantially improved structures:
(i) Fully enclosed areas below the “lowest floor” (not including basements) that
are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls
by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be
certified by a licensed registered professional engineer or meet or exceed the following minimum criteria:
a. A minimum of two (2) openings having a total net area of not less than one
square inch for every square foot of enclosed area subject to flooding shall be provided.
b. The bottom of all openings shall be no higher than one foot above grade.
c. Openings may be equipped with screens, louvers, valves, or other
coverings or devices provided, that they permit the automatic entry and exit of floodwaters. Such areas shall
be used solely for parking of vehicles, building access, and low damage potential storage.
d. All such areas shall be used solely for parking of vehicles, building access
and low damage potential storage.
(i)(ii) New and substantially improved structures must be designed (or modified) and
adequately anchored to prevent flotation, collapse, or lateral movement of the structure resulting from
hydrodynamic and hydrostatic loads, including the effects of buoyancy.
(ii) New and substantially improved structures must be constructed with electrical,
heating, ventilation, plumbing and air conditioning equipment and other service facilities that are designed
and/or located so as to prevent water from entering or accumulating within the components during conditions
of flooding.
(iii) New and substantially improved structures shall be constructed with electric
meter, electrical service panel box, hot water heater, heating, air conditioning, ventilation equipment
(including ductwork), and other similar machinery and equipment elevated (or in the case of non-residential
structures, optionally floodproofed to) a minimum of three (3) feet above the base flood elevation.
(iv) New and substantially improved structures shall be constructed with plumbing,
gas lines, water/gas meters and other similar service utilities either elevated (or in case of non-residential
structures, optionally floodproofed to) a minimum of three (3) feet above the base flood elevation or
designated to be watertight and withstand inundation to such a level.
***
Sec. 9.7. ADMINISTRATION.
(1) Appointment, Duties and Responsibilities of Flood Plain Administrator
***
(b) Duties and responsibilities of the Administrator shall include, but not necessarily
be limited to, the following:
***
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(ix) Maintain the accuracy of the community’s Flood Insurance Rate Maps
when;
a. Development placed within the Floodway (Overlay) District results
in any of the following:
(i) An increase in the Base Flood Elevations, or
(ii) Alternation to the floodway boundary
b. Development placed in Zone A, AE, AH, and A1-30 that does
not include a designated floodway that will cause a rise of more than one foot in the base elevation; or
c. Development relocates or alters the channel.
Within six (6) months of the completion of the development, the applicant shall
submit to FEMA all scientific and technical data necessary for a Letter of Map Revision.
***”
Section Three. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to
the extent of such conflict, if any.
Section Four. This ordinance shall be in full force and effect from and after its passage and
publication as required by law.
Passed this day of , 2024.
______________________________________ _______________________________________
Renee Hall, City Clerk John A. Haila, Mayor
21
ITEM #:6
DEPT:ELEC
June 18, 2024
Staff Report
PRESENTATION OF THE COST OF SERVICE STUDY FOR AMES ELECTRIC SERVICES
BACKGROUND:
Electric utilities periodically conduct cost-of-service and rate design studies to help make long-
term financial plans, promote efficient use of resources, and provide fair and equitable rates for
customers. Ames Electric Services previously completed a cost of service study completed in 2012.
On June 23, 2023, City Council awarded a contract with Utility Financial Solutions to complete a
complete a cost of service and rate design study. Based on the findings of the study, Staff is
recommending adjustments to customer rates that will send correct pricing signals to customers and
provide fair and equitable rates. The proposed adjustments will result in no overall revenue
increase. As a result of the rate adjustments, some customers will see higher electric bills, while the
changes will result in lower bill for other customers.
Ames Electric Services’ most recent rate increase was a 4% across the board increase in 2017. A
revenue neutral rate adjustment was made in 2012. Prior to that, there was a 5% rate increase in 2009.
At this time, the presentation is informational only. The staff next intends to refer this topic to
EUORAB for their review and recommendation. Following their Juen 20th meeting, staff will
prepare a Council Action Form (CAF) on June 25th. At this meeting the Council will be asked
to: 1) adopt the proposed rate changes to each of the Customer Classes, 2) Change the
Interruptible Rate, 3) Add the Time-Of-Use rates, and 4) Adjust the Renewable Energy Buyback
rate. The staff's recommendation to adjust electric rates is estimated to result in no net increase
in revenue.
ATTACHMENT(S):
Ames_Electric_Cost_of_Service_Study_UFS_Council_Presentation_6.18.24.pdf
22
Ames
Draft Electric Cost of Service Study
Mark Beauchamp
President, Utility Financial Solutions, LLC
23
Objectives
•Review Revenue Requirement
•Review Cost of Service Results
•Class cost results
•Customer Charges
•Rate Adjustment Plan
•New Rates
•Scenarios
224
Significant Assumptions
325
Significant Assumptions
426
Minimum Cash Reserves (no rate change)
5
Minimum Cash Reserve Levels 21,835,763$ 22,295,479$ 22,666,600$ 22,256,344$ 22,610,672$
Projected Cash Reserves 34,335,947$ 31,676,017$ 30,024,264$ 28,120,278$ 27,102,743$
Current Policy - $10.1M 27
Debt Coverage Ratio (no rate change)
6
Projected Debt Coverage Ratio (Covenants)6.01 5.69 3.40 160.28 121.66
Minimum Debt Coverage Ratio 1.4 1.4 1.4 1.4 1.4
28
Optimal
Operating Income (no rate change)
7
Optimal Operating Income 8,465,915$ 8,735,383$ 8,906,119$ 9,019,863$ 9,113,655$
Projected Operating Income (2,519,527)$ (3,411,332)$ (4,325,991)$ (5,161,028)$ (5,986,822)$
Rate of Return in %7.1%7.3%7.7%7.9%8.4%
29
COS Summary Financial Results
830
Cost of Service Results
Class Cost Results
931
Cost of Service Results
Customer Charges
1032
Rate Adjustment Plan
11
Overall Rate Increase
•Planned 0%
Develop Bandwidth Rates (Rate
Adjustment Plan)
•Plus or Minus 1%, Increase vary between
1% - minus 1%
Customer Charges
•Move toward Cost of Service
33
New Rate Classes
•Residential TOU
•Small Commercial TOU
•Commercial TOU
•Interruptible
•Value of Solar
12
TOU Periods
Mon - Fri
Off-Peak 7A - 2P, 6P - 8P
On-Peak 2P - 6P
All other times, Federal Holidays
and weekends are Super Off-Peak
34
Residential TOU Rate
13
All Customers 8.32$ 14.25$
Energy Charge:
Winter Energy (Nov - Jun)0.10050$ -$
Summer Energy (Jul - Oct)0.12130$ -$
Summer Off-Peak 0.06750$
Summer Super Off-Peak 0.05383$
Summer On-Peak 0.24529$
Winter Off-Peak 0.10660$
Winter Super Off-Peak 0.04918$
Winter On-Peak 0.11660$
Distribution Recovery 0.02021$
35
Small Commercial TOU Rate
14
All Customers 15.60$ 20.50$
Energy Charge:
Winter Energy (Nov - Jun)0.09860$ -$
Summer Energy (Jul - Oct)0.11940$ -$
Summer Off-Peak 0.0675$
Summer Super Off-Peak 0.0538$
Summer On-Peak 0.2453$
Winter Off-Peak 0.1066$
Winter Super Off-Peak 0.0492$
Winter On-Peak 0.1166$
Distribution Recovery 0.0259$
36
Commercial TOU Rate
1537
Interruptible Rate
Cost of Service Current
Rate (3.00)$ (2.60)$ /kVA
Called (2.20)$ (2.60)$ /kVA
Total (5.20)$ (5.20)$ /kVA
Failure to Curtail 12.00$ 12.00$ /kVA
38
Value of Solar
Residential Service
40% of $0.1213, plus $0.025 = $0.0735 per kWh (summer period)
40% of $0.1005, plus $0.025 = $0.0652 per kWh (winter period)
Small Commercial Service
40% of $0.1194, plus $0.020 = $0.0678 per kWh (summer period)
40% of $0.0986, plus $0.020 = $0.0594 per kWh (winter period)
Commercial Service
50% of $0.0644, plus $0.015 = $0.0472 per kWh
Industrial Service.
63% of $0.0644, plus $0.010 = $0.0506 per kWh
Current
Credit
39
Rate Track (with additional $50M generation
investment 2029)
1940
Rate Track (with additional $50M generation
investment 2029)
2041
Questions?
42
Sample Residential Rate
22
Δ Year 1
Monthly Facilities Charge:
All Customers 8.32$ 14.25$ 71.3%
Energy Charge:
Winter Energy (Nov - Jun)0.10050$ 0.08927$ -11.2%
Summer Energy (Jul - Oct)0.12130$ 0.11007$ -9.3%
Power Cost Adjustment:
All Energy 0.00521$ 0.00521$
Revenue from Rate 22,857,359$ 22,619,810$
Change from Previous -1%
Monthly $ Change based on Usage
Energy kWh Year 1
250 3.12$
500 0.31$
750 (2.50)$
1,000 (5.30)$
1,250 (8.11)$
1,500 (10.92)$
1,750 (13.73)$
2,000 (16.54)$
2,250 (19.35)$
2,500 (22.15)$
Average = 599kWh/Month
43
Sample Residential Rate - LIHEAP
2344
Sample Commercial Rate
2445
Sample Industrial Rate
2546
Utility Bill Rate Samples
MEDIAN USE RESIDENTIAL CUSTOMERS
Electric Storm Water
Electric / Water Use Summer Water Summer Sewer Total
600 kWh and 600 cf $81.10 $5.20 $30.88 $32.99 $150.17
Electric ECA $3.13 $3.13
Totals $84.23 $5.20 $30.88 $32.99 $153.30
Increase Due to Rate Change -$0.81 $0.00 $0.00 $0.00 -$0.81
Totals $83.42 $5.20 $30.88 $32.99 $152.49
% Impact on Total Bill -0.53%
47
Utility Bill Rate Samples
SMALL COMMERCIAL (GP)
Electric Storm Water
Electric / Water Use Summer Water Summer Sewer Total
5,000 kWh and 1,000 cf $612.60 $5.20 $50.60 $46.31 $714.71
Electric ECA $26.05 $26.05
Totals $638.65 $5.20 $50.60 $46.31 $740.76
Increase Due to Rate Change -$4.45 $0.00 $0.00 $0.00 -$4.45
Totals $634.20 $5.20 $50.60 $46.31 $736.31
% Impact on Total Bill -0.60%
48