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Home My WebLink About~Master - August 27, 2024, Regular Meeting of the Ames City Council1.Proclamation for "International Overdose Awareness Day," August 31, 2024 2.Proclamation for "Suicide Prevention Awareness Month," September 2024 3.Motion approving payment of claims 4.Motion approving Summary of Minutes of Regular City Council Meeting on August 13, 2024 5.Motion approving Civil Service Candidates 6.Motion approving Report of Change Orders for period August 1-15, 2024 7.Motion approving New 5-Day License (August 25 - August 29, 2024) for Class C Retail Alcohol License with Outdoor Service - Apres Bar Co., 2015 Cessna Street 8.Motion approving Ownership Updates for Class E Retail Alcohol License - Kum & Go #1215, 4506 Lincoln Way 9.Motion approving new Special Class C Retail Alcohol License - Heartland Senior Services, 205 South Walnut Avenue, Pending Dramshop Review 10.Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor Licenses: a. Cyclone Liquors, (626 Lincoln Way), Class E Retail Alcohol License b. Whiskey River, (132 - 134 Main Street), Class C Retail Alcohol License with Catering Privilege, Pending Dramshop Review c. Wallaby's Grille, (2733 Stange Road), Class C Retail Alcohol License with Outdoor Service d. The Recipe, (412 Burnett Avenue), Class C Retail Alcohol License e. Inside Golf, (2801 Grand Avenue #1075), Class C Retail Alcohol License, Pending Dramshop Review 11.Motion approving request for Fireworks Permits for display from Jack Trice Stadium for 2024 ISU Home Football Games on the following dates: a. Saturday, August 31, 2024 b. Saturday, September 21, 2024 c. Saturday, October 5, 2024 d. Saturday, October 19, 2024 e. Saturday, November 2, 2024 f. Saturday, November 16, 2024 g. Saturday, November 30, 2024 AGENDA REGULAR MEETING OF THE AMES CITY COUNCIL COUNCIL CHAMBERS - CITY HALL AUGUST 27, 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. PROCLAMATIONS: 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. 1 12.Requests from Ames High School for Homecoming Parade on September 16, 2024: a. Motion approving Blanket Temporary Obstruction Permit b. Resolution approving closure of City Parking Lot MM, southern three aisles of City Parking Lot M, from 5:30 p.m. to 7:15 p.m. for parade staging c. Resolution approving closure of Pearle Avenue, Burnett Avenue, Kellogg Avenue, and Clark Avenue (all from Main Street to 5th Street), Main Street from Pearle Avenue to Duff Avenue, and 5th Street from Grand Avenue to Clark Avenue, from 5:30 p.m. to approximately 7:45 p.m. d. Resolution approving 219 metered parking spaces along the parade route from 1:00 p.m. to 8:00 p.m. and waiver of fees e. Resolution approving waiver of parking meter fees and enforcement from 4:00 p.m. to 6:00 p.m. for 26 metered parking spaces in Lot N 13.Requests for EcoFair on Saturday, September 28, 2024: a. Motion approving blanket Temporary Obstruction Permit b. Motion approving blanket Vending License c. Resolution approving closure of 13 metered spaces along 5th Street from 12:00 p.m. Friday, September 28, 2024 - 6:00 p.m. Saturday, September 28, 2024, 6 metered spaces in Lot M from 7:00 a.m. - 2:00 p.m. Saturday, September 28, 2024, and 19 spaces in Lot N from 7:00 a.m. - 2:00 p.m. Saturday, September 28, 2024 d. Resolution approving waiver of Vending License fee e. Resolution approving waiver of parking meter fees 14.Resolution approving preliminary plans and specifications for FY 2022/23 Story County Edge of Field Project, setting September 25, 2024, as bid due date and October 8, 2024, as date of public hearing and award 15.Resolution approving Electric Facilities Agreement with Iowa Department of Transportation and Electric Services and authorize payment to IDOT in the amount of $121,509.29 for the relocation of Electric Services’ transformer at the NW Wing at IDOT campus 16.Resolution approving contract with Alex Heveri in the amount of $26,000 for the purchase of "Monarch on Milkweed" for installation in University/Airport/Oakwood roundabout 17.Resolution approving contract and bond for the 2024/25 Shared Use Path Maintenance (Various Locations) Program with Mid-Iowa Enterprises, LLC, of Story City, Iowa 18.Resolution approving partial completion and reducing financial security on file with the City for Birch Meadows 2nd Additional subdivision to $3,800 19.Resolution approving completion of Stormwater Maintenance security at LDY Subdivision, 2105 East Lincoln Way releasing the security in full 20.Plats of Survey for Rural Boundary Line Adjustments within Boone County a. Resolution approving 79.85 acres at the southwest corner of 220th Street and X Avenue b. Resolution approving 166.21 acres on the north side of 220th Street between W Avenue and X Avenue 21.Zoning Text Amendment to amend the Exception Standards for the Downtown Service Center "DSC" Zoning District a. First reading of Ordinance 22.Hearing on Sale of Real Property and Delivery of Conveyance of property at Hunziker Youth PUBLIC FORUM : This is a time set aside for comments from the public on topics of City business other than those listed on this agenda. Please understand that the Council will not take any action on your comments at this meeting due to requirements of the Open Meetings Law, but may do so at a future meeting. HEARINGS: 2 Sports Complex (800 Billy Sunday Road) to State of Iowa for Highway 30 Improvements: a. Resolution approving sale of property and delivery of conveyance to State of Iowa 23.Resolution Approving $79,456.96 from the Park Development Fund to the Ames Community School District for the Sharing of the Cost to Demolish the Municipal Pool 24.Resolution approving purchase agreement with Realty Gift Fund for 133.04 +/- acres of agricultural ground adjacent to the Water Pollution Control Facility in the amount of $1,197,000 25.Resolution setting the date for sale of General Obligation Corporate Purpose Bonds, Series 2024A for September 10, 2024, and authorizing the use of preliminary official statement in connection therewith 26.Third reading and adoption of ORDINANCE NO. 4538 updating enforcement provisions to Chapter 5B (Post Construction Stormwater Management) and Chapter 22A (Use of City Right-of- Way by Right-of-Way Users) of Ames Municipal Code 27.Participation with agencies, boards, and commissions: a. Discover Ames (ACVB) b. Ames Economic Development Commission (AEDC) c. Story County Emergency Management Agency (SCEMA) d. Ames Transit Agency Board of Trustees ADMINISTRATION: WATER AND POLLUTION CONTROL: FINANCE: ORDINANCES: DISPOSITION OF COMMUNICATIONS TO COUNCIL: REPORT OF GOVERNING BODY: 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. 3 To:Mayor and City Council From:City Clerk's Office Date:August 23 , 2024 Subject:Approval of Minutes Item No. 4 MEMO Attached are the minutes for the Regular Meeting of the Ames City Council on August 13, 2024. /gab ATTACHMENT(S): C24-0813 Summary.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 4 SUMMARY MINUTES OF THE MEETING OF THE AMES AREA METROPOLITAN PLANNING ORGANIZATION (AAMPO) TRANSPORTATION POLICY COMMITTEE AMES, IOWA AUGUST 13, 2024 The Ames Area Metropolitan Planning Organization (AAMPO) Transportation Policy Committee meeting was called to order by Ames Mayor and voting member John Haila at 6:00 p.m. on the 13th day of August, 2024. Other voting members present were: Bronwyn Beatty- Hansen, City of Ames, Gloria Betcher, City of Ames; Amber Corrieri, City of Ames, Tim Gartin, City of Ames; Anita Rollins, City of Ames; Linda Murken, Story County Board of Supervisors, Bill Zinnel, Boone County Board of Supervisors and Emily Boland, Ames Transit Agency Board of Trustees. CONSENT AGENDA: Moved by Murken, seconded by Betcher, to approve the consent agenda. 1. Motion approving 2025 appointment of Ames Public Works Director John Joiner to Statewide Urban Design Specifications (SUDAS) Board of Directors 2. RESOLUTION NO. 24-435 approving population adjustment with CIRTPA Vote on Motion: 9-0. Motions/Resolutions declared carried/adopted unanimously, signed by the Chair, and hereby made a portion of these Minutes. Rachel Junck, City of Ames, entered the meeting at 6:02 p.m. HEARING ON AMENDMENT TO FFY 2024-2027 TRANSPORTATION IMPROVEMENT PROGRAM (TIP): Transportation Planner Kyle Thompson presented that the Transportation Technical Committee and Transportation Policy Committee reviewed the proposed amendment and unanimously recommended approval. The Iowa Department of Transportation (DOT) requested the amendment so that its project on US Highway 30 is more accurately described in the TIP and can remain on schedule with necessary funding. He shared there were no comments received during the public comment period. Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Betcher, seconded by Zinnel, to approve amendment to the FFY 2024-27 Transportation Improvement Program. Vote on Motion: 10-0. Motion declared carried unanimously. POLICY COMMITTEE COMMENTS: None. ADJOURNMENT: Moved by Rollins, seconded by Murken, to adjourn the meeting at 6:03 p.m. Vote on Motion: 10-0. Motion declared carried unanimously. 5 _______________________________________ __________________________________ Grace Bandstra, Deputy City Clerk John A. Haila, Mayor ______________________________________ Renee Hall, City Clerk 6 1 SUMMARY MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL AMES, IOWA AUGUST 13, 202 4 The Regular Meeting of the Ames City Council was called to order by Mayor John Haila at 6:05 p.m. on the 13th day of August 2024, in the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law. City Council Members Bronwyn Beatty-Hansen, Gloria Betcher, Amber Corrieri, Tim Gartin, Rachel Junck, and Anita Rollins were present. Ex officio Emily Boland was also present. PROCLAMATION FOR "WATER AND WASTEWATER WORKERS WEEK," AUGUST 18-24, 2024: Director of Water and Pollution Control (WPC) John Dunn and Assistant Director of WPC Parul Baranwal accepted the proclamation from Mayor Haila. COMMUNITY CELEBRATION - RECOGNIZING NATIONAL NIGHT OUT/HOPE IN CHRIST EVENT AND BLAST BACK TO SCHOOL EVENTS: Community Member Jenn Petersen and Chief of Police Geoff Huff presented on the success of National Night Out and ways for the community to be involved in next year’s event. CONSENT AGENDA: Council Member Beatty-Hansen requested to pull Item No. 11. Moved by Beatty-Hansen, seconded by Junck, to approve the Consent Agenda less Item No. 11. 3. Motion approving payment of claims 4. Motion approving Summary of Minutes of Regular City Council Meeting on July 23, 2024, and Special City Council Meeting on August 6, 2024 5. Motion approving Civil Service Candidates 6. Motion approving Report of Change Orders for period July 16-31, 2024 7. Motion approving Ownership Updates for Class E Retail Alcohol License - Walgreens #12108, 2719 Grand Avenue 8. Motion approving Ownership Updates for Class F Retail Alcohol License - Green Hills Residents' Association, 2200 Hamilton Drive Suite #100 9. Motion approving Premise Update for Class C Retail Alcohol License - Celaya, 217 South Duff Avenue 10. Motion approving Temporary Outdoor Service for Class C Liquor License with Outdoor Service - Sips and Paddys, 126 Welch Avenue on: a) September 20 - September 22, 2024 and b) October 4 - October 6, 2024 11. Motion approving Temporary Outdoor Service for Special Class C Retail Alcohol License - Wheatsfield Cooperative, 413 Northwestern Avenue, September 15 - September 16, 2024, Pending Dramshop Review 12. Motion approving New 5-Day License (September 10 - September 14, 2024) for Special Class C Retail Alcohol License with Outdoor Service - Apres Bar Co., 1930 East 13th Street 13. Motion approving 5-Day License (September 2 - September 6, 2024) for Special Class C Retail Alcohol License - Lucky Wife Wine Slushies, 2321 North Loop Drive 7 2 14. Motion approving Ownership Updates for Class C Retail Alcohol License - Sams Place, 125 Main Street 15. Motion approving new Class E Retail Alcohol License - Neighborhood Liquor Mart, 3505 Lincoln Way Suite 105, Pending Favorable DIA Inspection 16. Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor Licenses: a) Iowa State Center - CY Stephens (1900 Center Drive), Class C Retail Alcohol License with Catering Privilege and Outdoor Service b) Kwik Stop Liquor & Groceries, (125 6th Street), Class E Retail Alcohol License 17. RESOLUTION NO. 24-436 approving revisions to Personnel Policies - Compensation Policy 18. RESOLUTION NO. 24-437 approving amendment to extend COTA Annual Grant completion date for The Buxton Initiative 19. RESOLUTION NO. 24-438 approving Quarterly Investment Report for period ending June 30, 2024 20. RESOLUTION NO. 24-439 setting August 27, 2024, as the date of public hearing for the Sale of Real Property at Hunziker Youth Sports Complex (800 Billy Sunday Road) to the State of Iowa for Highway 30 Improvements 21. RESOLUTION NO. 24-440 approving Professional Services Agreement with WHKS & Co. of Ames, Iowa for the 2024/25 Traffic System Capacity Improvements (13th & Grand) in an amount not to exceed $326,750 22. RESOLUTION NO. 24-441 approving 2024-2027 intergovernmental agreement with Metro Waste Authority for a satellite Household Hazardous Materials collection and disposal operation at an annual cost of $98,838, and an annual increase for subsequent years based on CPI-U 23. RESOLUTION NO. 24-442 approving preliminary plans and specifications for the Auditorium HVAC Replacement Project; setting September 4, 2024 as bid due date and September 10, 2024 as date of public hearing 24. RESOLUTION NO. 24-443 approving preliminary plans and specifications for the 2024/25 Water System Improvements Program (N Russell Avenue - Lincoln Way to N 2nd Street) project, setting September 4, 2024, as the bid due date and September 10, 2024, as the date of Public Hearing 25. RESOLUTION NO. 24-444 to waive the City’s purchasing policy requirement for formal bidding procedures and award a contract to Metro Waste Authority, Des Moines, IA for landfill tipping fees for ash disposal for the Power Plant in the amount of $100,000 26. RESOLUTION NO. 24-445 awarding a purchase order to Border States Electric, Ames, Iowa for the purchase of steel light poles in the amount of $53,955.56 27. RESOLUTION NO. 24-446 accepting 2020/21 Concrete Pavement Improvements Program (Ford St, Bell Ave, S. 17th St, S. Kellogg Ave) project as completed by Con - Struct Inc. of Ames, Iowa in the amount of $664,014 28. RESOLUTION NO. 24-447 accepting 2022/23 Asphalt Street Pavement Improvements (Oakwood Road) as completed by Con-Struct, Ames, Iowa in the amount of $2,065,963.02 29. RESOLUTION NO. 24-448 accepting Water Treatment Plant, Southeast Wellfield, and Technical Services Complex Security Fence Improvements as completed by American Fence Company in the amount of $83,226.80 30. RESOLUTION NO. 24-449 approving partial completion and reducing financial security 8 3 for public improvements of Quarry Estates 4th Addition to $21,850 31. RESOLUTION NO. 24-450 accepting partial completion and reducing financial security for public improvements of Quarry Estates Subdivision 3rd Addition to $20,205 32. RESOLUTION NO. 24-451 reducing project retainage for the 2021/22 Sanitary Sewer Rehabilitation (Ames High School and Veenker Golf) project to $20,000 33. 2022/23 East 13th Street Sanitary Sewer Extension Project a) RESOLUTION NO. 24-452 reducing project retainage to $10,000 b) RESOLUTION NO. 24-453 approving Change Order No. 2 for an increase in the amount if $111,917.96 to the contract Roll Call Vote: 6-0. Motions/Resolutions declared carried/adopted unanimously, signed by the Mayor, and hereby made a portion of these Minutes. TEMPORARY OUTDOOR SERVICE FOR WHEATSFIELD COOPERATIVE: Council Member Beatty-Hansen stated that she pulled the item to abstain due to conflict of interest. Moved by Gartin, seconded by Rollins, to approve Temporary Outdoor Service for Special Class C Retail Alcohol License - Wheatsfield Cooperative, 413 Northwestern Avenue, September 15 - September 16, 2024, Pending Dramshop Review. Vote on Motion: 5-0-1, Beatty-Hansen abstaining due to conflict of interest. Motion declared carried. PUBLIC FORUM: Mayor Haila opened the Public Forum. Richard Deyo, 505 8th Street #2, Ames, shared his experience with community businesses. Mayor Haila closed the Public Forum when no one else came forward to speak. DOWNTOWN FACADE GRANT FUNDING ELIGIBILITY FOR MAINTENANCE ACTIVITIES AND REAR FACADES: Planning and Housing Director Kelly Diekmann presented the Council Action Form (CAF), highlighting the two policy issues to be discussed. Mayor Haila opened the Public Input. Scott Moorman, 226 Main Street, Ames, spoke in favor of expanding the program and encouraged the City Council to consider the importance of the rear facing facades. Mayor Haila closed the Public Input when no one else came forward to speak. Moved by Betcher, seconded by Rollins, to direct staff to come back with language that expands the grant program to cover rear facades of buildings that contribute to the downtown historic district and expand the grant programs language to cover structural maintenance of those buildings with the understanding that the current grant guidelines will be priority, with maintenance being the lower priority to the existing program. Vote on Motion: 6-0. Motion declared carried unanimously. INITIATION OF VOLUNTARY ANNEXATION IN WEST AMES ALONG ONTARIO 9 4 STREET AND LINCOLN WAY: Director Diekmann presented the CAF. Moved by Betcher, seconded by Gartin, to adopt RESOLUTION NO. 24-454 to accept voluntary annexation application and include two City of Ames parcels. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and made a portion of these Minutes. MOTION APPROVING/DENYING A CLASS C RETAIL LICENSE - CELAYA, 217 SOUTH DUFF: Chief Huff presented the CAF. Mayor Haila opened the Public Input. Katie Scott, Legal Representative for Celaya, expressed her belief that the City Council was not compelled to deny the license, but rather should wait for the Iowa Department of Alcohol Beverages Division (ABD) to rule in the revocation proceedings. Mayor Haila opened and closed the Public Input when no one else came forward to speak. Moved by Gartin, seconded by Corrieri, to deny Class C Retail Alcohol License – Celaya, 217 South Duff. Vote on Motion: 6-0. Motion declared carried unanimously. WATER POLLUTION CONTROL FACILITY NUTRIENT REDUCTION MODIFICATIONS PHASE 1: Director Dunn presented the CAF alongside Assistant Director Baranwal and Strand Associates consultant Travis Anderson. Mayor Haila closed the Public Input when no one else came forward to speak. Moved by Gartin, seconded by Corrieri, to adopt Water Pollution Control Facility Nutrient Reduction Modifications Phase 1: a. RESOLUTION NO. 24-455 approving final plans and specifications and awarding a contract to Woodruff Construction, Inc. of Ames, Iowa in the amount of $53,370,000 b. Motion directing staff to: 1) Pursue reductions in the contract cost via change order(s); 2) Adjust the CIP to eliminate the TSC Building Renovation Project; 3) Adjust the CIP to reduce the Watershed-based Nutrient Reduction Program, and 4) Present an alternate rate increase strategy to the City Council for future consideration. Roll Call Vote: 6-0. Motion declared carried unanimously. FY 2022/23 STORY COUNTY EDGE OF FIELD PROJECT: Director Dunn presented the CAF. Moved by Betcher, seconded by Beatty-Hansen, to reject the bid for the FY 2022/23 Story County Edge of Field Project. Vote on Motion: 6-0. Motion declared carried unanimously. 10 5 HEARING FOR APPROVAL OF 2024-2029 CONSOLIDATED PLAN AND 2024-2025 ANNUAL ACTION PLAN IN CONNECTION WITH THE CITY'S COMMUNITY DEVELOPMENT (CDBG) & HOME PROGRAMS: Housing Coordinator Vanessa Baker - Latimer presented the CAF. Mayor Haila opened and closed the Public Hearing when no one came forward to speak. Moved by Betcher, seconded by Beatty-Hansen, to adopt RESOLUTION NO. 24-456 approving the 2024-2029 Consolidated Plan. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and made a portion of these Minutes. Moved by Rollins, seconded by Beatty -Hansen, to adopt RESOLUTION NO. 24-457 approving the 2024-2025 Annual Action Plan. Roll Call Vote: 6-0. Resolution declared carried unanimously, signed by the Mayor, and hereby made a portion of these minutes. COMMUNITY CONVERSATIONS AROUND HOMELESSNESS: Assistant City Manager Pa Vang Goldbeck presented the CAF. Moved by Rollins, seconded by Beatty-Hansen, to adopt RESOLUTION NO. 24-458 authorizing staff to enter into an agreement with a consultant for up to $12,000 to assist with hosting community conversations around homelessness. Vote on Motion: 6-0. Motion declared carried unanimously. SECOND READING OF ORDINANCE UPDATING ENFORCEMENT PROVISIONS TO CHAPTER 5B AND CHAPTER 22A OF AMES MUNICIPAL CODE: Moved by Corrieri, seconded by Beatty-Hansen, to pass on second reading an Ordinance updating enforcement provisions to Chapter 5B and Chapter 22A of Ames Municipal Code. Roll Call Vote: 6-0. Motion declared carried unanimously. CHAPTER 28, ELECTRIC RATE MODIFICATIONS: City Attorney Mark Lambert presented the memo. Moved by Betcher, seconded by Corrieri, to amend the Ordinance by establishing that the rates and charges will become effective beginning with the bills mailed on November 1, 2024. Vote on Motion: 6-0. Motion declared carried unanimously. Moved by Beatty-Hansen, seconded by Betcher, to pass on third reading and adopt ORDINANCE NO. 4537 to change electric rates to adopt revenue-neutral rate adjustments to better align with cost-of-service study recommendations, to add optional Time-of-Use rates, and to adjust the Large Customer Interruptible Option bill credits. Roll Call Vote: 6-0. Motion declared carried unanimously. DISPOSITIONS OF COMMUNICATIONS TO COUNCIL: Mayor Haila stated that there 11 6 were nine items for the City Council’s consideration. A request for delay in 2126 State Avenue Annexation Process from Oren Geisinger III and family was the first item to be considered. Moved by Beatty-Hansen, seconded by Rollins, to request staff notify the resident that a staff memo was in progress. Vote on Motion: 6-0. Motion declared unanimously. A request for healthy grocery store options from Tuyishime Florance was the next item. The Mayor stated that no action was needed. Next, an email from Bob Haug with input on changes to electric rates was discussed. The Mayor stated that the item was for information only. A request for indoor aqua aerobics classes from Betty Barton was addressed. The Mayor stated that no action was needed. An email from Jeff Bryant regarding tailgating in Stuart Smith Park at home football games was considered next. Moved by Beatty-Hansen, seconded by Corrieri, to request the City Manager respond. Vote on Motion: 6-0. Motion declared carried unanimously. An energy efficiency funding opportunity shared by Lee Anne Wilson was the next item. Moved by Beatty-Hansen, seconded by Betcher, to share the suggestion with the Sustainability Coordinator. Vote on Motion: 6-0. Motion declared carried unanimously. Then, a beautification project proposal from Nathaniel Kuhn, on behalf of FUEL Young Professionals, was discussed. Moved by Beatty-Hansen, seconded by Corrieri, to request a more thorough proposal. Vote on Motion: 6-0. Motion declared carried unanimously. Nuisance complaints from Balinda Ellsworth were addressed next. The Mayor stated that no action was needed. Finally, an email from Rusty Brammer regarding a homeless camp was considered. Moved by Rollins, seconded by Beatty-Hansen, to request the City Manager reach out to the railroad. Vote on Motion: 6-0. Motion declared carried unanimously. REPORT OF GOVERNING BODY: No meeting bodies had met since the previous meeting. COUNCIL COMMENTS: The Mayor and Council Members reported on various meetings 12 7 attended, upcoming meetings, community events, and items of interest. Moved by Rollins, seconded by Beatty-Hansen, to request a memo from staff on a potential sidewalk repair and tree removal program, potential funding sources, requirements, and how the program would operate. Vote on Motion: 6-0. Motion declared carried unanimously. CLOSED SESSION: Mayor Haila asked City Attorney Mark Lambert if there was a legal reason to go into Closed Session. Attorney Lambert replied in the affirmative, citing Section 21.5(1)(c), Code of Iowa, to discuss matters presently in litigation or where litigation is imminent. Moved by Junck, seconded by Betcher, to go into closed session at 8:32 p.m. Roll Call Vote: 6-0. Motion declared carried unanimously. The City Council reconvened in Regular Session at 9:28 p.m. Moved by Corrieri, seconded by Beatty-Hansen, to move forward with the course of action as presented in the Closed Session. Roll Call Vote: 6-0. Motion declared carried unanimously. ADJOURNMENT: Moved by Corrieri, seconded by Junck, to adjourn the meeting at 9:29 p.m. Vote on Motion: 6-0. Motion declared carried unanimously. _______________________________________ __________________________________ Grace Bandstra, Deputy City Clerk John A. Haila, Mayor _____________________________ Renee Hall, City Clerk Subject to change as finalized by the City Clerk. For a final official copy, contact the City Clerk’s Office at 515-239-5105. 13 To:Mayor & City Council From:City Clerk's Office Date:August 23, 2024 Subject:Approval of Civil Service Candidates Item No. 5 MEMO Attached are the minutes for the Regular Meeting of the Civil Service Commission held on August 22, 2024. ATTACHMENT(S): Aug 22 Civil Service Minutes.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 14 MINUTES OF THE REGULAR MEETING OF THE AMES CIVIL SERVICE COMMISSION AMES, IOWA AUGUST 22, 2024 The Regular Meeting of the Ames Civil Service Commission met in regular session in the Council Chambers of City Hall, 515 Clark Avenue, with Commission Members, Harold Pike and Kim Linduska present. Larry Conley was brought in telephonically. Chairperson Kim Linduska called the meeting to order at 8:11 AM on August 22, 2024. Also in attendance was HR Director, Bethany Ballou and Commission Clerk, Vicki Hillock. APPROVAL OF MINUTES OF JULY 25, 2024: Moved by Pike, seconded by Conley, to approve the Minutes of the July 25, 2024, Regular Service Commission meeting. Vote on Motion: 3-0. Motion declared carried unanimously. CERTIFICATION OF ENTRY-LEVEL APPLICANTS: Moved by Linduska, seconded by Pike, to certify the following individuals to the Ames City Council as Entry-Level Applicants: Human Resources Specialist Samantha Perry 81 Melissa Sanow 81 Ariel Hilson 77 Police Officer Jenny Randleman 90 Isacc Louk 83* Yiyu Wang 81 Carlos Hobbs 77 Tolidji Hogbonouto ** *includes preference points **Certified Officer added to list pursuant to Iowa Code 400.8(2)(b) Process Maintenance Worker Jeremy Anderson 86 Scott W. Berends 76 Vote on Motion: 3-0. Motion declared carried unanimously. CERTIFICATION OF PROMOTIONAL-LEVEL APPLICANTS: Moved by Conley, seconded by Pike, to certify the following individuals to the Ames City Council as Promotional-Level Applicants: Power Plant Fireworker Eric B. Nosalek 83* Chris D. Sprong 82 David Michael Crawley 81 *includes preference points Vote on Motion: 3-0. Motion declared carried unanimously. DISCUSSION: Discussion was presented for upcoming meeting schedule over the holidays. The commission meetings are scheduled for every fourth (4th) Thursday of the month. This year, this is co-inside with the Thanksgiving and Christmas Holidays. It was decided to move the commission meetings for those two months to the third (3rd) Thursday of the month. OTHER DISCUSSION: Hiring trends were discussed. HR Director Ballou, noted that trends across the employment industry see that longevity in employment is no longer the norm. Employees are more transient, meaning they move on after five (5) or less years with an employer. 15 COMMENTS: The next Regular Meeting will be held in-person on Thursday, September 26, 2024, at 8:15am in Council Chamber of City Hall. ADJOURNMENT: The meeting adjourned at 8:21 AM. __________________________________ _______________________________________ Kim Linduska, Chairperson Vicki Hillock, Commission Clerk 16 To:Mayor & City Council From:City of Ames Purchasing Division Date:August 23, 2024 Subject:Report of Contract Change Orders Item No. 6 MEMO The Report of Change Orders for period August 1-15, 2024, is attached for your review and consideration. ATTACHMENT(S): Change Order Report - August 1-15, 2024.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 17 REPORT OF CONTRACT CHANGE ORDERS Department General Description of Contract Contract Change No. Original Contract Amount Contractor/ Vendor Total of Prior Change Orders Amount this Change Order Change Approved By Purchasing Contact (Buyer) Public Works 2020/21 Concrete Pavement Improvements (Ford St, Bell Ave, S 17th St, & S Kellogg Ave) 1 $666,666.00 Con Struct, Inc.$0.00 $-(2,652.00)J. Joiner KS Water Pollution & Control 2023/24 Story County Edge of Field Design 1 $70,800.00 Eocene Environmental Group, Inc $0.00 $5,940.00 J. Dunn KS Electric Services Fuel Oil Tank Removal from the Coal Yard 2 $110,600.00 J. Pettiecord Inc. $189,500.00 $(13,260.00)D. Kom AM $$$ $$$ $$$ Period:1st – 15th 16th – End of Month Month & Year:August 2024 For City Council Date:August 27, 2024 18 To:Mayor and City Council From:Grace Bandstra, Deputy City Clerk Date:August 27, 2024 Subject:New 5-Day License (August 25 - August 29, 2024) for Class C Retail Alcohol License with Outdoor Service - Apres Bar Co., 2015 Cessna Street Item No. 7 MEMO Please see the attached documentation for a motion approving New 5-Day License (August 25 - August 29, 2024) for Class C Retail Alcohol License with Outdoor Service - Apres Bar Co., 2015 Cessna Street. The We Will Collective fundraising event covered by this license does not take place until August 29, 2024. ABD will expedite the license to be sure it is issued in time for the event. ATTACHMENT(S): Apres Bar Co - 2015 Cessna.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 19 Page 1 of 2 Applicant NAME OF LEGAL ENTITY APRES BAR CO LLC NAME OF BUSINESS(DBA) Apres Bar Co BUSINESS (515) 789-0044 ADDRESS OF PREMISES 2015 Cessna Street PREMISES SUITE/APT NUMBER CITY Ames COUNTY Story ZIP 50014 MAILING ADDRESS 3610 Holcomb AvenueBeaverdale CITY Des Moines STATE Iowa ZIP 50310 Contact Person NAME Jillian Harrington PHONE (515) 789-0044 EMAIL admin@apresbarco.com License Information LICENSE NUMBER LICENSE/PERMIT TYPE Class C Retail Alcohol License TERM 5 Day STATUS Submitted to Local Authority EFFECTIVE DATE EXPIRATION DATE LAST DAY OF BUSINESS SUB-PERMITS Class C Retail Alcohol License PRIVILEGES Outdoor Service 20 Page 2 of 2 Status of Business BUSINESS TYPE Limited Liability Company Ownership Individual Owners NAME CITY STATE ZIP POSITION % OF OWNERSHIP U.S. CITIZEN Jillian Harrington Des Moines Iowa 50310 Owner 100.00 Yes Insurance Company Information INSURANCE COMPANY Illinois Casualty Co POLICY EFFECTIVE DATE May 1, 2024 POLICY EXPIRATION DATE May 24, 2025 DRAM CANCEL DATE OUTDOOR SERVICE EFFECTIVE DATE OUTDOOR SERVICE EXPIRATION DATE BOND EFFECTIVE DATE TEMP TRANSFER EFFECTIVE DATE TEMP TRANSFER EXPIRATION DATE 21 To:Mayor and City Council From:Grace Bandstra, Deputy City Clerk Date:August 27, 2024 Subject:Ownership Updates for Class E Retail Alcohol License - Kum & Go #1215, 4506 Lincoln Way Item No. 8 MEMO Please see the attached documentation for a motion approving Ownership Updates for Class E Retail Alcohol License - Kum & Go #1215, 4506 Lincoln Way. ATTACHMENT(S): Kum and Go #1215 Ownership Updates.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 22 Page 1 of 3 Applicant NAME OF LEGAL ENTITY Kum & Go LC NAME OF BUSINESS(DBA) Kum & Go # 1215 BUSINESS (515) 274-7793 ADDRESS OF PREMISES 4506 Lincoln Way PREMISES SUITE/APT NUMBER CITY Ames COUNTY Story ZIP 50010 MAILING ADDRESS 1150 Locust St. CITY Des Moines STATE Iowa ZIP 50309 Contact Person NAME Jody Deiter PHONE (515) 274-7793 EMAIL licensing@maverik.com License Information LICENSE NUMBER LE0002932 LICENSE/PERMIT TYPE Class E Retail Alcohol License TERM 12 Month STATUS Submitted to Local Authority EFFECTIVE DATE Aug 28, 2024 EXPIRATION DATE Aug 27, 2025 LAST DAY OF BUSINESS SUB-PERMITS Class E Retail Alcohol License PRIVILEGES 23 Page 2 of 3 Status of Business BUSINESS TYPE Limited Liability Company Ownership Individual Owners NAME CITY STATE ZIP POSITION % OF OWNERSHIP U.S. CITIZEN Tyler Call Salt Lake City Utah 84111 Vice President 0.00 Yes Crystal Maggelet Salt Lake City Utah 84111 President 0.00 Yes Thomas Schofield Salt Lake City Utah 84111 Secretary 0.00 Yes Companies COMPANY NAME FEDERAL ID CITY STATE ZIP % OF OWNERSHIP Maverik Palace Acquistion Co. LLC Salt Lake City Utah 84111 100.00 Insurance Company Information INSURANCE COMPANY POLICY EFFECTIVE DATE POLICY EXPIRATION DATE 24 Page 3 of 3 DRAM CANCEL DATE OUTDOOR SERVICE EFFECTIVE DATE OUTDOOR SERVICE EXPIRATION DATE BOND EFFECTIVE DATE TEMP TRANSFER EFFECTIVE DATE TEMP TRANSFER EXPIRATION DATE 25 To:Mayor and City Council From:Grace Bandstra, Deputy City Clerk Date:August 27, 2024 Subject:New Special Class C Retail Alcohol License - Heartland Senior Services, 205 South Walnut Avenue, Pending Dramshop Review Item No. 9 MEMO Please see the attached documentation for a motion approving new Special Class C Retail Alcohol License - Heartland Senior Services, 205 South Walnut Avenue, Pending Dramshop Review. ATTACHMENT(S): Heartland Senior Services.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 26 Page 1 of 2 Applicant NAME OF LEGAL ENTITY HEARTLAND SENIOR SERVICES NAME OF BUSINESS(DBA) Heartland of Story County BUSINESS (515) 686-8452 ADDRESS OF PREMISES 205 South Walnut Avenue PREMISES SUITE/APT NUMBER CITY Ames COUNTY Story ZIP 50010 MAILING ADDRESS 205 South Walnut Avenue CITY Ames STATE Iowa ZIP 50010 Contact Person NAME Deb Schildroth PHONE (515) 686-8452 EMAIL dschildroth@heartlandofstorycounty.org License Information LICENSE NUMBER LICENSE/PERMIT TYPE Special Class C Retail Alcohol License TERM 12 Month STATUS Pending Dramshop Review EFFECTIVE DATE EXPIRATION DATE LAST DAY OF BUSINESS SUB-PERMITS Special Class C Retail Alcohol License PRIVILEGES Outdoor Service 27 Page 2 of 2 Status of Business BUSINESS TYPE Nonprofit entity which has a principal office in the State of Iowa. Ownership Individual Owners NAME CITY STATE ZIP POSITION % OF OWNERSHIP U.S. CITIZEN Pam White Ames Iowa 50010 Board of Directors Chair 50.00 Yes Rhonda Nelson Ames Iowa 50010 Board of Directors Treasurer 50.00 Yes Insurance Company Information INSURANCE COMPANY West Bend Insurance Company POLICY EFFECTIVE DATE POLICY EXPIRATION DATE DRAM CANCEL DATE OUTDOOR SERVICE EFFECTIVE DATE OUTDOOR SERVICE EXPIRATION DATE BOND EFFECTIVE DATE TEMP TRANSFER EFFECTIVE DATE TEMP TRANSFER EXPIRATION DATE 28 To:Mayor John Haila and Ames City Council Members From:Lieutenant Mike Arkovich, Ames Police Department Date:August 23, 2024 Subject:Beer Permits & Liquor License Renewal Reference City Council Agenda Item No. 10 MEMO The following licenses are eligible for renewal: Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor Licenses: a. Cyclone Liquors, (626 Lincoln Way), Class E Retail Alcohol License b. Whiskey River, (132 - 134 Main Street), Class C Retail Alcohol License with Catering Privilege, Pending Dramshop Review c. Wallaby's Grille, (2733 Stange Road), Class C Retail Alcohol License with Outdoor Service d. The Recipe, (412 Burnett Avenue), Class C Retail Alcohol License e. Inside Golf, (2801 Grand Avenue #1075), Class C Retail Alcohol License, Pending Dramshop Review A review of police records for the past 12 months found no liquor law violations for Cyclone Liquors, Wallaby’s Grille, The Recipe, and Inside Golf. The Ames Police Department recommends the license renewal for these businesses. A review of the police records for the past 12 months for Whiskey River found three on premise violations with two of those being fake ID related. Whiskey River passed multiple compliance checks over the last year. The Ames Police Department will encourage this establishment to better identify patrons and check IDs. The Department will also encourage them to attend ID training, IPACT training, and conduct their own compliance checks. The Department will continue to monitor this establishment by conducting regular foot patrols, compliance checks, and evaluating their safeguards. The Ames Police Department recommends the license renewal for this business as well. 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 29 To:Mayor and City Council From:Grace Bandstra, Deputy City Clerk Date:August 27, 2024 Subject:Fireworks Permits for display from Jack Trice Stadium for 2024 ISU Home Football Games Item No. 11 MEMO Please see the attached documentation for a motion approving request for Fireworks Permits for display from Jack Trice Stadium for 2024 ISU Home Football Games on the following dates: a. Saturday, August 31, 2024 b. Saturday, September 21, 2024 c. Saturday, October 5, 2024 d. Saturday, October 19, 2024 e. Saturday, November 2, 2024 f. Saturday, November 16, 2024 g. Saturday, November 30, 2024 ATTACHMENT(S): Fireworks Permit Application- ISU Football 2024 Season.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 30 31 Name: David Spalding Title Signatur e Date Interim Senior Vice President Operations and Finance David Spalding (Aug 19, 2024 14:50 CDT) 08/19/2024 32 ATTACHMENT A INSERT COPY OF FIREWORKS APPLICATION AND ATTACHMENTS City of Ames / Iowa State University Fireworks Permit Application Iowa State University 2024 Football Season Pyrotechnic Effects Prepared By: Kelm Brueschke J & M Displays, Inc. 4104 83rd Street Urbandale, IA 50322 Cell Phone: 515.321.2761 Fax Number: 515.276.6828 Email:kelmbrueschke@gmail.com 33 City of Ames Fireworks Permit Application 8.13.24 34 ISU Fireworks Permit Application 8.13.24 08/16/202 4 Troy Carey (Aug 16, 2024 12:27 CDT) 08/17/2024 08/19/2024 Jason E. Ziph (Aug 19, 2024 11:26 CDT) 08/19/2024 35 36 ITEM #:12 DATE:08-27-24 DEPT:ADMIN SUBJECT:REQUESTS FROM AMES HIGH SCHOOL FOR HOMECOMING PARADE ON SEPTEMBER 16, 2024 COUNCIL ACTION FORM BACKGROUND: Ames High School has requested to hold its Homecoming Parade on Monday, September 16, 2024. Parade entries will stage in Parking Lots MM and M and on Pearle Street. The parade will start on Main Street west of Clark Avenue and proceed east past Douglas Avenue to the CBD Lot entrance. The parade entries will disperse from the CBD Parking Lot. The parade will begin at 6:30 p.m. and last approximately 45 to 60 minutes. To help facilitate this event, the Homecoming Committee asks that the City Council approve the following closures: Fifth Street from Grand Avenue to Pearle Avenue, Pearle Avenue, Main Street from Pearle Avenue to Duff Avenue, Clark Avenue from north of the CBD lot exit to Fifth Street, Burnett Avenue from Main Street to Fifth Street, and Kellogg Avenue from north of the CBD lot exit to Main Street, from 5:30 to approximately 7:45 p.m. City Parking Lot MM, the southern three aisles of Lot M, and a portion of CBD Lot Z from 5:30 p.m. to 7:15 p.m. for parade staging and disassembly (No reserved spaces would be affected). Closure of metered parking spaces along the parade route from 1:00 p.m. to 8:00 p.m. and waiver of fees (approximately $750 loss to the Parking Fund). City employees will be notified of the Lot M closure. Official vehicles parked in the northernmost stalls will not be affected. Barricades, staffed by adult volunteers, will be placed on streets along this route for traffic control purposes. Organizers have consulted with Ames Main Street regarding the event. Staff also advised the organizers to notify affected businesses along the parade route. In addition to the requests from the organizers, City staff is requesting that the City Council grant a waiver of parking meter fees and enforcement from 4:00 p.m. to 6:00 p.m. on September 16 for the 26 metered parking spaces in Lot N, north of City Hall. There are several fitness classes in the Community Center during evenings, and attendees normally park in Lot M or in metered spaces on Fifth Street. City staff would like to provide free parking in Lot N for those participants in the fitness classes who are displaced by parade closures. The loss of revenue to the Parking Fund for this request is $13. ALTERNATIVES: 1. Approve the requests from the Ames High Homecoming Committee for street closures in connection with the parade to be held on September 16, 2024; and waiver of meter fees and enforcement in Lot N from 4:00p.m. - 6:00 p.m. on September 16, 2024. 2. Do not approve these requests. 37 CITY MANAGER'S RECOMMENDED ACTION: The Ames High Homecoming Parade is a long-standing Ames tradition in the Downtown. The event has been successfully carried out, and it contributes to the vibrancy of the Downtown area. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ATTACHMENT(S): 09.16 AHS Homecoming.pdf AHS Homecoming 2024.pdf 38 Ames Main Street advances and promotes Downtown Ames as the heart of the Ames community. 304 Main Street, Ames, IA 50010 | 515.233.3472 | AmesDowntown.org August 16, 2024 Mayor and City Councill City of Ames 515 Clark Ave Ames, IA 50010 Dear Mayor Haila and Members of the Ames City Council: Ames Main Street is proud to offer its support for the Ames High Homecoming Parade on September 16, 2024. We also endorse the closure of the streets to make this event happen, including Main Street and any additional streets to keep participants and spectators safe. Events of this nature help Downtown Ames achieve its vision of making it the primary destination of Central Iowa by creating an economically vibrant district with unique living, dining, and entertainment experiences. Sincerely, Travis Toliver, IOM Executive Director Ames Main Street 39 40 41 ITEM #:13 DATE:08-27-24 DEPT:ADMIN SUBJECT:REQUESTS FOR ECOFAIR ON SATURDAY, SEPTEMBER 28, 2024 COUNCIL ACTION FORM BACKGROUND: City staff is planning to host the 2024 EcoFair from 9:00 a.m. to 1:00 pm. on Saturday, September 28, 2024. This year ’s event will host vendors focused to educate citizens of all ages about sustainability, water quality, water conservation, energy conversation, environmental, and climate change. In addition to the traditional arrangements for EcoFair, staff is planning to host the Iowa DNR Educational Trailer. To facilitate this event, City staff has requested the following: a. Blanket Temporary Obstruction Permit b. Blanket Vending License c. Closure of 13 metered spaces along 5th Street from 12:00 p.m. Friday, September 27, 2024 - 6:00 p.m. Saturday, September 28, 2024, 6 metered spaces in Lot M from 7:00 a.m. - 2:00 p.m. Saturday, September 28, 2024, and 19 spaces in Lot N from 7:00 a.m. - 2:00 p.m. Saturday, September 28, 2024 d. Waiver of Vending License fee ($50 loss to City Clerk's Office) e. Waiver of parking meter fees ($56.25 loss to Parking Fund) The waiver of metered parking fees is estimated to result in a loss of $56.25 to the Parking Fund. The City Council's policy regarding the waiver of metered parking fees is to consider whether to require reimbursement on a case-by-case basis. ALTERNATIVES: 1. Approve the requests for EcoFair on Saturday, September 28, 2024 as outlined above. 2. Approve the requests, but require the event budget to be used to reimburse the lost revenues for the Vending License and parking waiver. 3. Do not approve the requests. CITY MANAGER'S RECOMMENDED ACTION: EcoFair is an annual event that connects the Ames Community with City Staff and sustainability experts who provide a range of resources focused on reducing energy consumption and water, land, and resource conservation. The EcoFair furthers the City Council’s Goal to expand Sustainability Efforts. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ATTACHMENT(S): Eco Fair Application Materials.pdf Layout 2024 Ecofair.pdf 42 43 44 45 ITEM #:14 DATE:08-27-24 DEPT:W&PC SUBJECT:PRELIMINARY APPROVAL OF PLANS AND SPECIFICATIONS AND NOTICE TO BIDDERS FOR FY 2022/23 STORY COUNTY EDGE OF FIELD PROJECT (REBID) COUNCIL ACTION FORM BACKGROUND: The Water Pollution Control (WPC) Facility is being converted to implement nutrient removal treatment technology over a period of 20 years. Separate from the work that will occur at the treatment plant, watershed-based improvements performed by the City can be “banked” as credit toward any future, more stringent nutrient reduction regulations imposed on the WPC Facility. In addition to the nutrient reduction benefits provided by these practices, they also provide a small measure of mitigation against both droughts and floods by holding water on the landscape longer. On February 24, 2021, staff executed a Memorandum of Understanding (MOU) with the Iowa Department of Natural Resources to allow these off-site nutrient reductions to be banked with the Iowa Nutrient Reduction Exchange. Over the past several years, staff has been developing a partnership with multiple entities to bundle together several Edge-of-Field (EOF) practices that can be bid as a single bid p a c k a g e . This year's project will construct Edge of Field (EOF) practices in Story County, consisting of 6 saturated buffers and 10 bioreactors that will intercept and treat 18 agricultural tile outlets. These practices allow for the natural removal of nitrogen from subsurface drainage before it enters a stream or other surface waters. Additional information about these practices is shown in the attachment. On March 28, 2023 and August 8, 2023, City Council approved two separate agreements that outlined the funding arrangements and project management duties for the EOF project. The City of Ames is acting as the fiscal agent for the project and the Iowa Department of Agricultural and Land Stewardship (IDALS) and Story County/Story County Conservation are acting as funding agents for the project. The funding for this project consists of 75% from IDALS and a 25% local match that is split equally between the City and Story County. The City’s share of the project cost will come from the funds budgeted annually in the Watershed-Based Nutrient Reduction capital improvements project. A Notice to Bidders was issued at the June 11, 2024 City Council meeting and bids were opened on July 10. Only one bid was received, and it exceeded the engineer ’s opinion of probable construction cost by more than 40%. Council rejected the lone bid and directed staff to rebid the project with a longer construction window. It is anticipated that a longer construction window will generate more interest in the project and, therefore, will provide more competitive pricing. The final design includes one additional tile line and a construction completion deadline that has been extended by eight months. All landowners participating in the project have completed the necessary paperwork. Staff is ready to issue a Notice to Bidders to rebid the FY 2022/23 project. The engineer’s estimate of probable construction costs is $269,095. The estimated cost for the City’s share is $33,637. 46 ALTERNATIVES: 1. Approve the preliminary plans and specifications and issue a Notice to Bidders for the FY 2022/23 Story County Edge of Field Project, and establish September 25, 2024, as the bid due date and October 8, 2024, as the date of public hearing and award. 2. Do not approve the plans and specifications and a Notice to Bidders, thereby delaying the completion of this project. CITY MANAGER'S RECOMMENDED ACTION: The Ames Water Pollution Control Facility will be converted to implement nutrient removal treatment technology over a period of 20 years. To mitigate future investment beyond what is already planned for, watershed-based projects can be performed, and the resulting nutrient reduction credits can be banked. Following project completion, the City will register each of these practices and receive annual nutrient reduction credit for the lifespan of each practice. After previously receiving only a single bid that significantly exceeded the engineer's estimate, Council rejected the bid and directed staff to rebid the work with a longer construction window. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. 47 ITEM #:15 DATE:08-27-24 DEPT:ELEC SUBJECT:IOWA DEPT. OF TRANSPORTATION - NW WING TRANSFORMER RELOCATION COUNCIL ACTION FORM BACKGROUND: Electric Services provides service to the Iowa Department of Transportation’s (IDOT) main campus at 800 Lincoln Way. The NW Wing of the IDOT Administration Building was constructed in the early 1970s. At that time, two sets of overhead-style transformers were installed in the basement of the NW Wing. Although this was a standard practice at the time of the NW Wing’s construction, the location of the transformers results in a potentially hazardous working space for Electric Services personnel under current National Electric Code standards. It is Electric Services’ current standard practice to serve buildings of this type using outdoor pad-mounted transformers that can be easily inspected, maintained, and replaced when needed with common inventory transformers. The NW wing is currently unoccupied during a building-wide remodel project being undertaken by the I D O T. Electric Services has contacted IDOT staff and has received agreement to remove the transformers from the basement of the NW Wing and replace them with an outdoor pad- mounted transformer. Additional revisions to the internal electrical system of the NW Wing are required to accommodate the transformer relocation project. The entire transformer relocation project costs are Electric Services’ responsibility to pay. If this work was entirely outdoor work, this project could be completed by Electric Services staff. However, IDOT prefers to procure and manage the project to address coordination with their building remodel project. Therefore, IDOT has received quotes in the amount of $121,509.29 from contractors already working on-site, to perform the work requested by Electric Services. Electric Services has reviewed the quotes and is recommending that IDOT be paid an amount equal to $121,509.29 for this transformer relocation. An Electric Facilities Agreement has been drafted that details the responsibilities of the parties involved with this project. Upon completion of the relocation project, Electric Services will own and maintain an outdoor pad- mounted transformer to provide electric service to the NW Wing. The overhead-style transformers will be removed from the basement of the NW Wing and the room will be turned over to IDOT. Funds are included in the FY 2024/25 Underground Extensions & Improvements budget at $150,000 to cover this expense. ALTERNATIVES: 1. Approve the Electric Facilities Agreement between IDOT and Electric Services and authorize payment to IDOT in the amount of $121,509.29 for the relocation of Electric Services’ transformer at the NW Wing at IDOT campus. 2. Refer this item back to staff for further information. 48 CITY MANAGER'S RECOMMENDED ACTION: This project is necessary for Electric Services to continue providing safe, reliable service to the NW Wing of the Administration Building on the Iowa Dept. of Transportation campus at 800 Lincoln Way. Performing the work while the building is unoccupied will significantly reduce the impact to IDOT. Payment to IDOT is appropriate in this situation. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. ATTACHMENT(S): IDOT - Electric Facilities Agreement - IDOT Signature.pdf 49 1 ELECTRIC FACILITIES AGREEMENT BETWEEN THE CITY OF AMES ELECTRIC SERVICES AND IOWA DEPARTMENT OF TRANSPORTATION I. RECITALS This Agreement is made this _5th day of August, 2024, by and between the Iowa Department of Transportation (hereinafter “IDOT”), located at 800 Lincoln Way in Ames, Iowa, and the City of Ames as owner and operator of the municipal electric utility (hereinafter “AMES ELECTRIC”) (collectively the “Parties”), for the purpose of dividing the material and labor activities and costs necessary to replace and upgrade certain electrical infrastructure at IDOT’s Administration Building, Northwest Wing 800 Lincoln Way, Ames, Iowa (hereinafter “800 LINCOLN WAY”), necessary to serve IDOT’s electric demand. Currently, the electric service to 800 LINCOLN WAY is provided by AMES ELECTRIC at two voltages (480 volts and 208 volts). Transformers, of the respective voltages, are located in a basement room of 800 LINCOLN WAY. These transformers are owned and maintained by AMES ELECTRIC. The operating environment of the transformers does not meet current AMES ELECTRIC practices for personnel safety. AMES ELECTRIC has determined that one voltage (480 volts) can be provided to 800 LINCOLN WAY to adequately meet the electrical demands of IDOT facilities. IDOT facilities will no longer receive 208-volt service from AMES ELECTRIC. 800 LINCOLN WAY is presently undergoing a remodel by IDOT. IDOT staff is not operating from 800 LINCOLN WAY during the remodel. AMES ELECTRIC would like to use this opportunity to remove the transformers from the basement room and place them in a location that would provide a safe working environment for AMES ELECTRIC personnel. II. SCOPE OF WORK A. Electric Facilities Design 1. IDOT has contracted with Shive-Hattery, Inc., Des Moines, Iowa to provide a design of electrical systems related to the 800 LINCOLN WAY remodel. 50 2 2. IDOT will issue a Change Order to their contract with Shive-Hattery to provide design services to facilitate the conversion to one voltage (480 volts) for the electric service to 800 LINCOLN WAY. B. Concrete Vault Construction 1. AMES ELECTRIC has contracted with Tometich Engineering, Inc., Urbandale, Iowa to design a concrete vault structure capable of supporting a pad mount utility transformer. This work will be done at AMES ELECTRIC’S sole expense and paid for directly by AMES ELECTRIC. 2. Woodruff Construction, Ames, Iowa has been contracted by IDOT to perform the remodel work on 800 LINCOLN WAY and will provide all labor, equipment, and materials to construct the concrete vault structure. The work on the concrete vault will follow the specifications provided by Tometich Engineering, Inc.. It is understood that Woodruff Construction may employ subcontractors for all or part of this remodel. 3. Construction of the concrete vault structure will be coordinated with the remodel schedule. The parties agree to the extent possible that the construction of the concrete vault will not interfere with Woodruff Construction’s primary work on the remodel project for IDOT. AMES ELECTRIC will deenergize electrical cables to facilitate Woodruff Construction’s work as necessary. C. Electric Facilities Installation 1. AMES ELECTRIC will install a 480-volt pad mount transformer on the concrete vault structure on IDOT’s site. 2. IDOT will issue a Change Order to their contract with Woodruff Construction for the installation of electrical facilities to convert the electric service entrance at 800 LINCOLN WAY to 480 volts. It is understood that Woodruff Construction may employ subcontractors for all or part of this work. Woodruff Construction shall use the design developed by Shire-Hattery to direct the work. This work shall include the following: a. The purchase and installation of a 480-volt to 208-volt step-down transformer to maintain operation of facilities at 800 LINCOLN WAY no longer receiving 208-volt service from AMES ELECTRIC. This step-down transformer will be located inside the premises at 800 LINCOLN WAY. 51 3 b. Woodruff Construction shall provide all labor, equipment and materials to perform installation of electrical wiring, a buried conduit system, and equipment associated with the conversion to a 480-volt electric service entrance. 3. AMES ELECTRIC will install electric metering facilities for the new 480-volt service entrance. These facilities will be located at the concrete vault structure. 4. AMES ELECTRIC will remove the existing transformers and related AMES ELECTRIC-owned equipment from the basement room of 800 LINCOLN WAY after the new 480-volt service entrance has been installed and is in service. This work will be done at AMES ELECTRIC’S sole expense. III. OWNERSHIP AND MAINTENANCE OF FACILITIES A. Concrete Vault, Pad Mount and Metering Facility AMES ELECTRIC will own and maintain the concrete vault structure on IDOT’s site upon completion by Woodruff Construction. AMES ELECTRIC will own and maintain the 480-volt pad mount transformer on the concrete vault structure on IDOT’s site. AMES ELECTRIC will own and maintain the metering facilities. B. 480-Volt Step-Down Transformer IDOT will own and maintain the new 480-volt step-down transformer located inside the premises at 800 LINCOLN WAY. C. Buried Electric Cables and Conduit System IDOT will own and maintain the buried electric cables and conduit system between the concrete vault structure and 800 LINCOLN WAY. D. Access Access to the basement room of 800 LINCOLN WAY, formerly occupied by AMES ELECTRIC’S transformers and equipment, will be turned over to IDOT. IDOT shall not unreasonably withhold from AMES ELETRIC access to the facility for maintenance, metering, or reasonable inspection. 52 4 IV. REIMBURSEMENT OF EXPENSES The Iowa DOT shall verify performance or delivery of the deliverables identified in each invoice from third parties before paying the invoice. Reimbursement shall be made within thirty (30) days of receipt of an invoice by AMES ELECTRIC. IDOT will pay Shive-Hattery for the design work contemplated herein and AMES ELECTRIC will reimburse IDOT for those expenses. The estimated costs therefor are $7,474.00. IDOT will pay Woodruff Construction for the construction of the concrete vault and AMES ELECTRIC will reimburse IDOT for those expenses. The estimated costs therefor are $51,775.00. IDOT will pay Woodruff Construction for the installation of the electric facilities and AMES ELETRIC will reimburse IDOT for those expenses. The estimated costs therefor are $62,260.29. The total reimbursement from AMES ELECTRIC to IDOT under this Agreement is presently estimated to be $121,509.29. V. TERM The Parties agree that time is of the essence and that the work contemplated by this Agreement will be performed beginning July 1, 2024, and expected to be completed by December 31, 2024, weather and site conditions permitting. VI. INDEMNIFICATION A. AMES ELECTRIC’S Obligations AMES ELECTRIC agrees to defend, indemnify and hold harmless the IDOT, the State of Iowa, and it’s or their officers, appointed and elected officials, board and commission members, employees, volunteers and agents (collectively the “Indemnified Parties”), from any and all costs, expenses, losses, claims, damages, liabilities, settlements and judgments (including, without limitation, the reasonable value of the time spent by the Attorney General’s Office), and the costs, expenses and attorneys’ fees of other counsel retained by the Indemnified Parties directly or indirectly related to, resulting from, or arising out of this Agreement, including any claims related to, resulting from, or arising out of: 53 5 1. Any negligent, intentional, or wrongful act or omission of AMES ELECTRIC or any agent or subcontractor utilized or employed by AMES ELECTRIC. AMES ELECTRIC, or any agent or subcontractor utilized or employed by AMES ELECTRIC, will only be liable to the extent of the percentage of fault attributable to the negligent acts or omissions of AMES ELECTRIC or any agent or subcontractor utilized or employed by AMES ELECTRIC. 2. Any failure by AMES ELECTRIC to make all reports, payments and withholdings required by federal and state law with respect to social security, employee income and other taxes, fees or costs required by AMES ELECTRIC to conduct business in or with the State of Iowa. B. IDOT’s Obligations IDOT agrees to indemnify and hold harmless AMES ELECTRIC and it’s or their officers, board and commission members, employees, volunteers and agents (collectively the “Indemnified Parties”), from any and all costs, expenses, losses, claims, damages, liabilities, settlements and judgments, and the costs, expenses and attorneys’ fees of other counsel retained by the Indemnified Parties directly or indirectly related to, resulting from any negligent, intentional, or wrongful act or omission of the IDOT, or its employees, in the performance of this Agreement. The IDOT, or its employees, will only be liable to the extent of the percentage of fault attributable to the negligent acts or omissions of the IDOT, or its employees. VII. WARRANTIES AMES ELECTRIC represents, warrants, and covenants that all services performed under this Agreement shall be performed or rendered in a professional, competent, diligent, and workmanlike manner by knowledgeable, trained, and qualified personnel, all in accordance with the terms and specifications of this Agreement and the standards of performance considered generally acceptable in the industry for similar tasks and projects. All work to comply with applicable construction codes including but not limited to the most current edition of the NEC and IBC to be inspected by the state electrical board under the Iowa Department of Public Safety. In the absence of a specification for the performance of any portion of this Agreement or a Statement of Work subject to this Agreement, the parties agree that the applicable specification shall be the generally accepted industry standard. If any services are performed in violation of this standard, AMES ELECTRIC, upon notification by the IDOT, shall with reasonable promptness re-perform the services at no cost to the IDOT, such that the services are performed in the above-specified manner. If 54 6 AMES ELECTRIC is unable to perform the services as warranted, AMES ELECTRIC shall reimburse the IDOT for any costs incurred. Nothing herein shall affect any material or equipment warranties provided for by the manufacturer(s). VIII. GENERAL PROVISONS A. Force Majeure Neither AMES ELECTRIC nor IDOT shall be liable to the other for any delay or failure of performance of this Agreement; and no delay or failure of performance shall constitute a default or give rise to any liability for damages if, and only to the extent that, such delay or failure is caused by a “force majeure”. As used in this Agreement, “force majeure” includes acts of God, war, civil disturbance, and any other causes which are beyond the control and anticipation of the party effected and which, by the exercise of reasonable diligence, the party was unable to anticipate or prevent. B. Severability If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the validity or enforceability of any other part or provision of this Agreement. C. Choice of Law and Forum The laws of the State of Iowa shall govern and determine all matters arising out of or in connection with this Agreement without regard to the conflict of law provisions of Iowa law. Any and all litigation commenced in connection with this Agreement shall be brought and maintained solely in the Iowa District Court for Story County. This provision shall not be construed as waiving any immunity to suit or liability, including without limitation sovereign immunity in state or federal court, which may be available to IDOT or the State of Iowa. D. Third Party Beneficiaries There are no third-party beneficiaries to this Agreement. This Agreement is intended only to benefit IDOT and AMES ELECTRIC. 55 7 IX. SIGNATURES IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed in triplicate the day and year first written. CITY OF AMES, IOWA IA DEPT. OF TRANSPORTATION By:______________________________ By:________________________________ John A. Haila, Mayor Title: Resources and Acquisitions Bureau Director Date:____________________________ Date:_______________________________ Attested by:______________________ Date:___________________________ Veronica Tolander 8-6-24 56 ITEM #:16 DATE:08-27-24 DEPT:ADMIN SUBJECT:SCULPTURE PURCHASE FOR UNIVERSITY/AIRPORT/OAKWOOD ROUNDABOUT COUNCIL ACTION FORM BACKGROUND: The Public Art Commission (PAC) manages the inventory of public art places throughout the Ames community. In 2020, the City purchased a sculpture entitled "Monolith" for placement at the roundabout located at University Boulevard and Oakwood/Airport Roads. In 2022, this sculpture was destroyed when it was struck by an intoxicated driver. Through conversations with Reiman Gardens, PAC has identified a new sculpture it wishes to acquire for installation at this location. The sculpture, entitled "Monarch on Milkweed," was created by Alex Heveri of Tucson, Arizona in 2023. It is constructed of powder-coated steel, with colored slab glass in each of the butterfly wings. The sculpture is currently 12.5 feet in height, although the artist indicated she would add material to raise the height to 13.5 feet. Additionally, the sculpture currently contains two butterflies. The artist originally intended this sculpture to contain a third; she will fabricate and provide the third butterfly as part of the sculpture at no charge. On August 6, 2024, PAC voted to recommend that the City Council approve a contract in the amount of $26,000 to purchase and deliver the completed sculpture. Staff has presented the artist with a contract containing the City's typical terms for a sculpture purchase, and signed copies of the contract have been returned to the City. The artwork is warrantied for five years from the date of delivery and the artist will provide maintenance instructions to City staff. The FY 2023/24 PAC budget contains a balance of $33,208.50 in the Ames Annual Outdoor Sculpture Exhibition account that can be carried over and used for this purchase. The sculpture will be installed on the existing concrete pad that was placed for the former sculpture, Monolith. Additionally, PAC received a presentation from Reiman Gardens regarding ideas for installation of a pollinator garden to surround the sculpture, which would replace the existing plantings in the roundabout. Reiman Gardens would provide the labor to install the plantings, and the design and materials cost would be approximately $1,600. This portion of the project can be financed from the City's Stormwater Fund, which contains considerable unallocated funding due to staff vacancies in the past several months. ALTERNATIVES: 1. Approve a contract with Alex Heveri in the amount of $26,000 for the purchase and delivery of "Monarch on Milkweed" for the University/Airport/Oakwood roundabout. 2. Refer this item back to staff or the Public Art Commission for further information. 3. Do not approve the contract. 57 CITY MANAGER'S RECOMMENDED ACTION: The proposed sculpture, along with a pollinator garden to be installed by Reiman Gardens staff, will present an interesting and vibrant aesthetic for this prominent intersection. PAC has funds from savings accumulated over the past several years in the Annual Outdoor Sculpture Exhibition account to make this purchase. Therefore, it is the recommendation of the City Manager that the City Council support Alternative #1 and approve a contract with Alex Heveri in the amount of $26,000 for the purchase and delivery of "Monarch on Milkweed" for the University/Airport/Oakwood roundabout. ATTACHMENT(S): Sculpture.jpg 58 59 To:Mayor and City Council From:City Clerk's Office Date:August 23, 2024 Subject:Contract and Bond Approval Item No. 17 MEMO There is no Council Action Form for the 2024/25 Shared Use Path Maintenance (Various Locations) Program with Mid-Iowa Enterprises, LLC, of Story City, Iowa. City Council approval of the contract and bond for the project is simply fulfilling a State Code requirement. 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 60 To:Mayor & City Council From:John C. Joiner, P.E. Date:August 23, 2024 Subject:Birch Meadows 2nd Addition Financial Security Reduction Item No. 18 MEMO Please see attached documentation for a partial release of funds. ATTACHMENT(S): LOC Reduction Birch Meadows 2nd Addition.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 61 Smart Choice Public Works Department 515.239.5160 main 515 Clark Ave. P.O. Box 811 Engineering 515.239.5404 fax Ames, IA 50010 www.CityofAmes.org Public Works Department 515 Clark Avenue, Ames, Iowa 50010 Phone 515-239-5160 Fax 515-239-5404 August 21, 2024 Honorable Mayor and Council Members City of Ames Ames, Iowa 50010 RE: Fitch Land Development: Birch Meadows 2nd Addition Financial Security Reduction Mayor and Council Members: I hereby certify that asphalt pavement surface, manhole adjustments, street lights, and COSESCO (erosion and sediment control) required as a condition for approval of the final plat of Birch Meadows Subdivision 2nd Addition have been completed in an acceptable manner by various contractors.The above-mentioned improvements have been inspected by the Engineering Division of the Public Works Department of the City of Ames, Iowa and found to meet City specifications and standards. As a result of this certification, it is recommended that the financial security on file with the City for this subdivision be reduced to $3800. Outstanding item yet to be completed include street trees. Sincerely, John C. Joiner, P.E. Director JJ/HI cc:Finance, Developer, Planning & Housing, Subdivision file 62 Birch Meadows Subdivision 2nd Addition December 22, 2023 Page 2 Items completed with the most recent reduction include: Item Description Unit Quantity Manhole Adjustment, Minor EA 2 Pavement, HMA, 2 Inch, Surface SY 2720 Street Lights EA 6 COSESCO ACRE 5.07 Items to be completed with this reduction include: Item Description Unit Quantity Street Trees EA 19 63 To:Mayor & City Council From:John Joiner, P.E. Date:August 23, 2024 Subject:4 Year Stormwater Maintenance Security Release Item No. 19 MEMO Attached is the full release pertaining to the completion of Stormwater Maintenance at LDY Subdivision, 2105 East Lincoln Way. ATTACHMENT(S): LDY Subdivision 2105 E Lincoln Way LOC Release.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 64 65 ITEM #:20 DATE:08-27-24 DEPT:P&H SUBJECT:PLATS OF SURVEY FOR RURAL BOUNDARY LINE ADJUSTMENTS WITHIN BOONE COUNTY COUNCIL ACTION FORM BACKGROUND: This item originally appeared on the City Council agenda on April 9, 2024. At that meeting, the applicants requested to amend the requested plat of survey during the Council review. In light of the applicant's comments, the item was tabled. The applicants have now decided not to amend the plat of survey and proceed with the original submittal as proposed for April 9th. The original report follows. The subdivision regulations in Chapter 23 of the Ames Municipal Code include the process for creating or modifying property boundaries and for determining if any improvements are required in conjunction with the platting of property. The regulations also describe the process for combining existing platted lots or conveyance parcels in order to create a parcel for development purposes. A plat of survey is allowed by Section 23.309 for the consolidation of conveyance parcels and for boundary line adjustments. The applicant owns multiple parcels in Boone County, outside of Ames but within the 2-mile Urban Fringe Area (see Attachments A and B). There are two separate plats of survey (Attachment C): 1. A boundary line adjustment on the south side of 220th Street reconfiguring the two existing parcels by adjusting the common boundary and resulting in two parcels of similar acreages. 2. A boundary line adjustment on the north side of 220th Street for existing six (6) parcels, moving the common boundaries, and resulting in three parcels, with in one parcel for an existing home and two other larger vacant parcels (one of which is Parcel C). The owner desires to divide the property for future estate planning. Last year, the applicant wrote a letter to Council requesting that subdivision standards (such as those for sidewalks, right-of-way dedication, extension of utilities, and street trees) be waived to allow for the modification of the property lines and create a lot for the existing home. Council consented to this request. The applicant also stated he was amenable to having a restriction placed on the property restricting the use to "farming use" only and this was considered as part of the Council authorization to proceed with Plats of Survey. Subsequently the applicant worked with staff to finalize the proposed parcel boundaries and discussed the limitations of use and whether a single home would be allowed for proposed Parcel C. The applicant would like to construct a house on one of the parcels on the north side that is greater than 35-acres and seeks approval of the Plat of Survey without a use restriction. Staff recently confirmed this desire with the applicant. 66 RURAL SUBDIVIDION POLICY: The subject properties are within the Urban Reserve, as defined by Ames Plan 2040. The comprehensive plan views these areas as the most likely to be annexed at some point in the future, but outside of the current designated growth areas, and therefore treats them with care when considering future development potential. Policies in Ames Plan 2040 support land divisions only for breaking off an existing farmstead and creating parcels of at least 35 acres. Divisions should not create parcels that limit future annexation options. Ames Plan 2040 also seeks to preserve agricultural land and to limit development for commercial or residential purposes. As boundary line adjustments, the plats of survey provide a unique condition compared to most projects that are creating additional parcels rather than consolidating parcels. The key policy element is the consistency of parcels sizes for the exiting home located on its own individual parcel and the new parcels since there is not an apparent increase in development potential with the proposal. The south property is all agricultural use. The proposed parcels are both larger than 35 acres and are consistent with lot size policies of Ames Plan 2040 . The north property contains farmland and an existing farmstead. The plat of survey proposes to break off the farmstead onto a four-acre parcel and create two additional parcels larger than 35 acres that will be used primarily for agriculture. However, the applicant desires to have the ability to build a new house on one of the north parcels (Parcel C) since the site exceeds 35 acres. The proposed parcel for the exiting home is consistent with our standards policies about creating individual parcels for existing homes when the resulting parcels also conform to area minimums of 35 acres or with use limitations to avoid rural subdivision for additional homes. ALTERNATIVES: 1. Approve proposed plats of survey and authorize the Planning Director to approve the plats of survey without a use limit on Parcel C, but with an agricultural use limit on the other three vacant parcels. (This could be accomplished with a No Build note on the Plat of Survey, or a separate legal document recorded with the plat) 2. Approve the proposed plats of survey and authorize the Planning Director to approve the plats of survey subject to a use restriction for all of the parcels as agriculture uses only. 3. Approve proposed plats of survey and authorize the Planning Director to approve the plats of survey with no specific use limitations. 4. Deny the proposed plats of survey on the basis that the City Council finds that the requirements for plats of survey as described in Section 23.309 have not been satisfied. 5. Refer this request back to staff and/or the owner for additional information. CITY MANAGER'S RECOMMENDED ACTION: The Urban Fringe requirements in Ames Plan 2040 were written to protect the future growth of the City. Subdividing land is the most foundational of planning tools. Subdividing property in a haphazard way can impede the future use of land and deter the rational development of streets and infrastructure. Typically, the City seeks covenants with waivers of subdivision authority. In this situation as boundary line adjustments, no specific improvements are required and no covenants related to waivers are 67 proposed. Staff finds that the proposed plats of survey comply with Ames Plan 2040 in regards to parcel sizes and planning principals that will protect the City's future growth. During the 2023 discussion of parcel configurations and waiver of City improvement requirements that may apply to the project resulted in direction to support the project with a use limitation. The applicant now requests that in consideration of the final configuration and overall parcel size that the agricultural use restriction is not required for Parcel C on the north plat of survey, which differs from the 2023 discussion for use of the properties. Although staff believes that having no use restriction on Parcel C can be found to conform to our policies, it should be noted that future subdivision of any of lands would be restricted by Ames Plan 2040 policies related to creating new and additional parcels for development or individual house lots. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative #1. ATTACHMENT(S): Attachment A - Context Map.pdf Attachment B - Subject Property.pdf Attachment C - Proposed Plats.pdf 68 ONTARIO ST WESTFIELDRD S 500TH AVE ELLSTON AVE THACKERAY DR WILDER PL WILDERAVE SCHUBERT ST NEBRASKA AVE WILDERBLVD CLEMENSBLVD MILLER AVE WESTFIELD DR INDIANA AVE KANSAS DR BRITISH COLUMBIA AVE HARTFORD DR LINCOLN WAY EMERSON DR FREMONT AVE MISSOURI STMARYLANDST MORTENSENRD TENNESSEEST US HIGHWAY 30 TENNYSON AVE LINCOLN HIGHWAY N 500TH AVE HEMINGWAY DR ROWLING DR 215TH ST BROWN CT Y AVE 230TH ST XE PL 227TH PL XB PL 229TH PL 228TH PL 212TH ST212THST W LINCOLN WAY230TH ST X AVE XL AVE XG PL 210TH ST 207TH PL RAMP RAMP 220TH ST US 30 US 30 230TH ST Legend LVS Farms Pro perty Ames City L imits Two Mile Urban Fringe Fringe Land Use - Natu ra l Areas Fringe Land Use - Rural Character LVS FARMS - 1.14 MILES - AMES ATTACHMENT ACONTEXT MAP 69 XEPL 227th Pl 228th Pl 220th St X Ave Legend LVS Farms - North Property LVS Farms - South Property AMES - 1.14 MILES ATTACHMENT BLVS FARMS - PLATS OF SURVEY 70 ATTACHMENT C LVS FARMS – SOUTH OF 220TH STREET 71 ATTACHMENT C (CONTINUED) LVS FARMS – NORTH OF 220TH STREET 72 ITEM #:21 DATE:08-27-24 DEPT:P&H SUBJECT:ZONING TEXT AMENDMENT TO AMEND THE EXCEPTION STANDARDS FOR THE DOWNTOWN SERVICE CENTER "DSC" ZONING DISTRICT COUNCIL ACTION FORM BACKGROUND: Ames Silversmithing, 220 Main Street, recently purchased the adjacent building to the east at 218 Main Street with the intent of expanding the jewelry store business (Attachment A). The owners would like to demolish the building at 218 Main Street to expand 220 Main Street for increased space. Both 220 and 218 Main Street are single-story buildings. The Downtown Service Center (DSC) Zoning District, however, contains regulations designed to achieve a minimum intensity of use; these requirements prohibited Ames Silversmithing from adding on as desired. In a letter to Council (Attachment B), Michael Stott, architect with SB&A, stated that it is not feasible to expand the business into the existing building and that demolishing 218 Main Street and constructing an addition is the only possible alternative. The parcel containing 218 Main Street is 13.58 feet wide at the street, though this widens to 15.25 feet approximately 20 feet back from Main Street. The parcel has a piece carved out along the Main Street frontage that accommodates an interior staircase to the second floor of the adjacent building at 216 Main Street. City Council reviewed the request and options for changes to the standards at its May 14th meeting and allowed for the applicant to apply for a zoning text amendment that would create an expanded Exception to DSC for building additions. New construction of a building is not affected by the change. DOWNTOWN SERVICE CENTER (DSC) ZONING: The DSC has several provisions that work to create density of use, a stated goal of the district. The first is a minimum floor-area-ratio (FAR) of 1.0. This means that if a parcel is 10,000 square feet, it must have a building of at least 10,000 square feet. The other requirement is a minimum height of two stories; most historic, commercial buildings on Main Street are two stories. These two requirements help to reinforce the historic character of the street and to increase the intensity of use of Downtown. The DSC Zoning District does currently allow for limited departures from the minimum height and FAR (Attachment C). Deviations have evolved over time. In 2004, Council created a limited Exception to the two-story requirement with related criteria for new buildings (Ord. 3815). Exceptions are reviewed against stated criteria by the Zoning Board of Adjustment. In 2016, Council allowed for deviations from the minimum FAR and height (Ord. 4252) for a narrow range of institutional or “Special Use Permit” types of uses. In 2018, Council created an expanded Exception for minimum FAR and height for building additions but limited these to properties fronting 6th Street (Ord. 4373) believing the intent of regulations was to primarily reinforce “Main Street character.” The current limited types of Exceptions do not allow for buildings on Main Street, or for the type of 73 trade uses that include Ames Silversmithing, to request Exceptions to the standards. Due to statutory criteria for variances for hardship of use that could not be met for this site, the applicant requests a text amendment to pursue the proposed building project. PROPOSED EXCEPTION: The proposed code change alters one line of text in the DSC regulations. Sec. 29.808(4)(b)(ii) currently contains the geographic restriction allowing only those properties on 6th Street to apply for an Exception to the minimum FAR and height. All other criteria are proposed to remain the same. The general expectation of design compatibility will remain for projects that are granted relief from the intensity standards with an Exception. Current Code Section. 29.808(4)(b) Standards for Existing Structures. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed expansion or enlargement of a building not meeting the minimum number of stories or floor area ratio, meets each of the following standards: 1. The proposed project is an expansion or enlargement of an existing building and not for new construction, 2. The property has frontage on 6th Street. For properties on a through lot, existing buildings on the south half of the lot shall have a second story along the entire 5th Street frontage, 3. The proposed project retains or creates an active pedestrian street entrance, 4. The proposed project demonstrates a height and building placement that emphasizes an urban design of Main Street style development characterized by a height compatible with buildings in downtown and maintaining or creating a street edge with buildings, 5. The proposed project deemphasizes the quantity and visibility of surface parking spaces, and 6. The proposed project has a minimum floor area ration of 0.50. Only Section 2 highlighted above is proposed to change: 2. The proposed project does not replace a two-story structure with a single-story structure (See Attachment C) The proposed language differs slightly from the original request by adding a qualifier to the criteria related to existing two-story buildings. This is discussed in detail under the Planning and Zoning Commission section. If approved, these changes will allow property owners to apply for an Exception to enable them to construct a one-story addition on a property that will have less than an FAR of 1.0. The Exception permit allowance of the Zoning Ordinance allows for narrowly tailored deviations from the zoning requirements. This type of permit requires a ZBA public hearing and approval. Rather than apply general criteria, applications for an Exception apply the specific criteria accompanying the allowable Exceptions. PLANNING AND ZONING COMMISSION: The Planning and Zoning Commission met on August 7, 2024, to review the proposed text amendment. The proposal for the August 7th meeting requested by the applicant was to simply delete subsection 2 in its entirety to remove the geographic limitation (See Attachment D) 74 At the meeting, Commissioners discussed the character of Downtown and their support for the multi- story buildings related to both character and the general intensity of use Downtown. The Commission expressed concern that the proposed exception creates a loophole could be used to demolish a two-story building, which could then be replaced with a single-story structure by combining neighboring properties and considering the new structure an addition. The Commision discussed how new construction could not take advantage of this proposed option and it would only apply to additions. Commissioners discussed their desire to maintain the goal of DSC in having two-story structures with 1.0 FAR. To that end, the Commission voted 7-0-0 to recommend approval of the text amendment with the added change that instead of deleting Sec. 29.808(4)(b)(ii), it be replaced with the following standard: The proposed project does not replace a two-story structure with a single-story structure. The Commission believed that adding this qualifier would discourage demolition of existing building for the sake of doing one story additions and thereby preserving the character of existing two-story budlings while allowing existing one-story buildings some flexibility to do additions. ALTERNATIVES: 1. Approve on first reading the Downtown Service Center (DSC) Zoning District text amendment to Sec. 29.808(4) as recommended by the Planning and Zoning Commission as shown in Attachment C. 2. Modify the proposed ordinance amending Sec. 29.808(4) as originally requested with no two- story building qualifier as shown in Attachment D. 3. Deny the requested text amendment. CITY MANAGER'S RECOMMENDED ACTION: The proposed changes to the Exceptions requirements create an avenue for Ames Silversmithing to apply for a building addition that is one story. If the changes are approved, the Exception for one story and for an FAR of less than 1.0 will be available to all properties within the DSC. Any property seeking to apply for the Exception, however, would need to meet the criteria as laid forth in Sec. 29.808(4). As currently written, the Code only allows additions to an existing building that will bring the property into full compliance or maintain compliance with the FAR and height requirements; incremental improvements are not otherwise allowed. The proposed changes will allow any property in the DSC Zoning District to make gradual improvements that will bring the properties towards compliance. The change would not apply to new construction of a wholly new building. Staff does not foresee that allowing single-story additions with reduced FAR will erode the stated goals of the DSC Zoning District to increase density and intensity of use with the expected design criteria and limitation to additions. The original request for an amendment did not have qualifier related to two-story buildings. After the Planning and Zoning Commission meeting, staff considered their recommended changes and found they would help to preserve the height and density goals of the DSC district while still meeting the interest of the applicant, Ames Silversmithing. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative #1. 75 ATTACHMENT(S): Attachment A.pdf Attachment B.pdf Attachment C.pdf Attachment D.pdf Zoning Text Amendment for Downtown Service Center.PDF 76 Attachment A Map of 220 & 218 Main Street 77 Attachment B Request to Council 78 Attachment C Proposed Zoning Code Amendments for Exceptions in “DSC” Downtown Service Center Zoning Planning and Zoning Commission Recommendation Version Sec. 29.808. "DSC" DOWNTOWN SERVICE CENTER. (1) Purpose. The Downtown Service Center (DSC) zone is intended to provide for high-density development within the City's Urban Core. A broad range of uses is allowed to reflect the City's role as a commercial, cultural and governmental center. Development is intended to be very dense with high building coverage, large buildings in scale with the predominant building pattern in the Downtown commercial area, and buildings placed close together. Development is intended to encourage pedestrian activity with a strong emphasis on safe, vital and attractive streets. (2) Permitted Uses. The uses permitted in the DSC Zone are set forth in Table 29.808(2) below: Table 29.808(2) Downtown Service Center (DSC) Zone Use USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY RESIDENTIAL USES Group Living N -- -- Household Living N, except in combination with permitted non- residential use or uses, in which case 75% Household Living shall be located above the first story, and at least the front 50% of the first story must be maintained for non- residential use. SDP Minor Staff Household Living Accessory Uses Home Occupation Y -- -- Home Share Y ZP ZEO Hosted Home Share Y ZP ZEO Short-Term Lodging Y, except Bed & Breakfast Establishment SDP Minor Staff Vacation Lodging Y ZP ZEO OFFICE USES Y ZP ZEO TRADE USES Retail Sales and Services – General Y SDP Minor Staff 79 USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY Retail Trade – Automotive, etc. N -- -- Entertainment, Restaurant and Recreation Trade Y SDP Minor Staff Wholesale Trade N -- -- INDUSTRIAL USES Industrial Service N -- -- Small Production Facility Y SP ZBA INSTITUTIONAL USES Colleges and Universities Y SP ZBA Community Facilities Y SDP Minor Staff Social Service Providers Y SP ZBA Medical Centers N -- -- Parks and Open Areas Y SDP Minor Staff Religious Institutions Y SP ZBA Schools N -- -- Funeral Homes Y SP ZBA TRANSPORTATION, COMMUNICATIONS AND UTILITY USES Passenger Terminals Y SDP Minor Staff Basic Utilities Y SDP Major City Council Commercial Parking Y SDP Minor Staff Radio and TV Broadcast Facilities Y SP ZBA Rail Line and Utility Corridors Y SP ZBA Railroad Yards N -- -- MISCELLANEOUS USES Commercial Outdoor Recreation N -- -- Child Day Care Facilities Y SP ZBA Detention Facilities N -- -- Major Event Entertainment Y SP ZBA Vehicle Service Facilities N -- -- 80 USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY Adult Entertainment Business Y SDP Minor Staff Y = Yes: permitted as indicated by required approval. N = No: prohibited SP = Special Use Permit: See Section 29.1503 ZP = Building/Zoning Permit required: See Section 29.1501 SDP Minor = Site Development Plan Minor: See Section 29.1502(3) SDP Major = Site Development Plan Major: See Section 29.1502(4) ZBA = Zoning Board of Adjustment ZEO = Zoning Enforcement Officer (3) Zone Development Standards. The zone development standards for the DSC Zone are set forth in Table 29.808(3) below: DEVELOPMENT STANDARDS DSC ZONE Minimum FAR 1.0, Except that the Zoning Board of Adjustment may determine through review of a use subject to approval of a Special Use Permit Use that such a proposed use and design is compatible in character with its surrounding and is exempt from meeting minimum FAR and minimum height. Minimum Lot Area No minimum, except for mixed uses, which shall provide 250 sf of lot area for each dwelling unit Minimum Lot Frontage No minimum, except for mixed uses, which shall provide 25 ft. Minimum Building Setbacks Front Lot Line Side Lot Line Rear Lot Line Lot Line Abutting a Residentially Zoned Lot 0 0 0 10 ft. Landscaping in setbacks Abutting an R Zoned Lot High Screen. See Section 29.403 Maximum Building Coverage 100% Minimum Landscaped Area No minimum Maximum Height 7 stories Minimum Height 2 stories, Except that the Zoning Board of Adjustment may determine through review of a use subject to approval of a Special Use Permit Use that such a proposed use and design is compatible in character with its 81 DEVELOPMENT STANDARDS DSC ZONE surrounding and is exempt from meeting minimum FAR and minimum height. Parking Allowed Between Buildings and Streets No Drive-Through Facilities Permitted Yes Outdoor Display Permitted Yes. See Section 29.405 Outdoor Storage Permitted No Trucks and Equipment Permitted Yes (4) Standards for the Granting of Exceptions to the Minimum Requirement for Two Story Buildings and the Minimum 1.0 Floor Area Ratio in the DSC (Downtown Service Center) District. Before an exception to the requirement for two-story buildings or the minimum 1.0 floor area ratio in the DSC (Downtown Service Center) can be granted, the Zoning Board of Adjustment shall establish that the following standards have been, or shall be satisfied: (a) Standards for New Construction. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed one-story building, in the DSC zone, meets the following standards: (i) Physical circumstances exist for the property which result in a lot with a size and shape that is not conducive to a multi-story structure, and (ii) It can be demonstrated that there is a direct benefit to the community to have a one-story structure, at the proposed location, as opposed to a multi-story structure. (b) Standards for Existing Structures. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed expansion or enlargement of a building not meeting the minimum number of stories or floor area ratio, meets each of the following standards: (i) The proposed project is an expansion or enlargement of an existing building and not for new construction, (ii) The property has frontage on 6th Street. For properties on a through lot, existing buildings on the south half of the lot shall have a second story along the entire 5th Street frontage. The proposed project does not replace a two-story structure with a single-story structure. (iii) The proposed project retains or creates an active pedestrian street entrance, (iv) The proposed project demonstrates a height and building placement that emphasizes an urban design of Main Street style development characterized by a height compatible with buildings in downtown and maintaining or creating a street edge with buildings, (v) The proposed project deemphasizes the quantity and visibility of surface parking spaces, and (vi) The proposed project has a minimum floor area ratio of 0.50. (c) Procedure. The procedure to follow for an “exception” is described in Section 29.1506(3). 82 Attachment D Proposed Zoning Code Amendments for Exceptions in “DSC” Downtown Service Center Zoning Original Staff Version Sec. 29.808. "DSC" DOWNTOWN SERVICE CENTER. (1) Purpose. The Downtown Service Center (DSC) zone is intended to provide for high-density development within the City's Urban Core. A broad range of uses is allowed to reflect the City's role as a commercial, cultural and governmental center. Development is intended to be very dense with high building coverage, large buildings in scale with the predominant building pattern in the Downtown commercial area, and buildings placed close together. Development is intended to encourage pedestrian activity with a strong emphasis on safe, vital and attractive streets. (2) Permitted Uses. The uses permitted in the DSC Zone are set forth in Table 29.808(2) below: Table 29.808(2) Downtown Service Center (DSC) Zone Use USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY RESIDENTIAL USES Group Living N -- -- Household Living N, except in combination with permitted non- residential use or uses, in which case 75% Household Living shall be located above the first story, and at least the front 50% of the first story must be maintained for non- residential use. SDP Minor Staff Household Living Accessory Uses Home Occupation Y -- -- Home Share Y ZP ZEO Hosted Home Share Y ZP ZEO Short-Term Lodging Y, except Bed & Breakfast Establishment SDP Minor Staff Vacation Lodging Y ZP ZEO OFFICE USES Y ZP ZEO TRADE USES Retail Sales and Services – General Y SDP Minor Staff 83 USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY Retail Trade – Automotive, etc. N -- -- Entertainment, Restaurant and Recreation Trade Y SDP Minor Staff Wholesale Trade N -- -- INDUSTRIAL USES Industrial Service N -- -- Small Production Facility Y SP ZBA INSTITUTIONAL USES Colleges and Universities Y SP ZBA Community Facilities Y SDP Minor Staff Social Service Providers Y SP ZBA Medical Centers N -- -- Parks and Open Areas Y SDP Minor Staff Religious Institutions Y SP ZBA Schools N -- -- Funeral Homes Y SP ZBA TRANSPORTATION, COMMUNICATIONS AND UTILITY USES Passenger Terminals Y SDP Minor Staff Basic Utilities Y SDP Major City Council Commercial Parking Y SDP Minor Staff Radio and TV Broadcast Facilities Y SP ZBA Rail Line and Utility Corridors Y SP ZBA Railroad Yards N -- -- MISCELLANEOUS USES Commercial Outdoor Recreation N -- -- Child Day Care Facilities Y SP ZBA Detention Facilities N -- -- Major Event Entertainment Y SP ZBA Vehicle Service Facilities N -- -- 84 USE CATEGORY STATUS APPROVAL REQUIRED APPROVAL AUTHORITY Adult Entertainment Business Y SDP Minor Staff Y = Yes: permitted as indicated by required approval. N = No: prohibited SP = Special Use Permit: See Section 29.1503 ZP = Building/Zoning Permit required: See Section 29.1501 SDP Minor = Site Development Plan Minor: See Section 29.1502(3) SDP Major = Site Development Plan Major: See Section 29.1502(4) ZBA = Zoning Board of Adjustment ZEO = Zoning Enforcement Officer (3) Zone Development Standards. The zone development standards for the DSC Zone are set forth in Table 29.808(3) below: DEVELOPMENT STANDARDS DSC ZONE Minimum FAR 1.0, Except that the Zoning Board of Adjustment may determine through review of a use subject to approval of a Special Use Permit Use that such a proposed use and design is compatible in character with its surrounding and is exempt from meeting minimum FAR and minimum height. Minimum Lot Area No minimum, except for mixed uses, which shall provide 250 sf of lot area for each dwelling unit Minimum Lot Frontage No minimum, except for mixed uses, which shall provide 25 ft. Minimum Building Setbacks Front Lot Line Side Lot Line Rear Lot Line Lot Line Abutting a Residentially Zoned Lot 0 0 0 10 ft. Landscaping in setbacks Abutting an R Zoned Lot High Screen. See Section 29.403 Maximum Building Coverage 100% Minimum Landscaped Area No minimum Maximum Height 7 stories Minimum Height 2 stories, Except that the Zoning Board of Adjustment may determine through review of a use subject to approval of a Special Use Permit Use that such a proposed use and design is compatible in character with its 85 DEVELOPMENT STANDARDS DSC ZONE surrounding and is exempt from meeting minimum FAR and minimum height. Parking Allowed Between Buildings and Streets No Drive-Through Facilities Permitted Yes Outdoor Display Permitted Yes. See Section 29.405 Outdoor Storage Permitted No Trucks and Equipment Permitted Yes (4) Standards for the Granting of Exceptions to the Minimum Requirement for Two Story Buildings and the Minimum 1.0 Floor Area Ratio in the DSC (Downtown Service Center) District. Before an exception to the requirement for two-story buildings or the minimum 1.0 floor area ratio in the DSC (Downtown Service Center) can be granted, the Zoning Board of Adjustment shall establish that the following standards have been, or shall be satisfied: (a) Standards for New Construction. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed one-story building, in the DSC zone, meets the following standards: (i) Physical circumstances exist for the property which result in a lot with a size and shape that is not conducive to a multi-story structure, and (ii) It can be demonstrated that there is a direct benefit to the community to have a one-story structure, at the proposed location, as opposed to a multi-story structure. (b) Standards for Existing Structures. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed expansion or enlargement of a building not meeting the minimum number of stories or floor area ratio, meets each of the following standards: (i) The proposed project is an expansion or enlargement of an existing building and not for new construction, (ii) The property has frontage on 6th Street. For properties on a through lot, existing buildings on the south half of the lot shall have a second story along the entire 5th Street frontage. (iii) (ii) The proposed project retains or creates an active pedestrian street entrance, (iv) (iii) The proposed project demonstrates a height and building placement that emphasizes an urban design of Main Street style development characterized by a height compatible with buildings in downtown and maintaining or creating a street edge with buildings, (v) (iv) The proposed project deemphasizes the quantity and visibility of surface parking spaces, and (vi) (v) The proposed project has a minimum floor area ratio of 0.50. (c) Procedure. The procedure to follow for an “exception” is described in Section 29.1506(3). 86 ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING SECTION 29.808(4)(b)(ii) THEREOF, FOR THE PURPOSE OF AMENDING STANDARDS FOR THE DOWNTOWN SERVICE CENTER ZONING DISTRICT (DSC); 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 Section 29.808(4)(b)(ii) as follows: “Sec. 29.808. "DSC" DOWNTOWN SERVICE CENTER. *** (4) *** (b)Standards for Existing Structures. The Zoning Board of Adjustment shall review each application for the purpose of determining that each proposed expansion or enlargement of a building not meeting the minimum number of stories or floor area ratio, meets each of the following standards: (i)The proposed project is an expansion or enlargement of an existing building and not for new construction, (ii)The property has frontage on 6th Street. For properties on a through lot, existing buildings on the south half of the lot shall have a second story along the entire 5th Street frontage. The proposed project does not replace a two-story structure with a single-story structure. (iii)The proposed project retains or creates an active pedestrian street entrance, (iv)The proposed project demonstrates a height and building placement that emphasizes an urban design of Main Street style development characterized by a height compatible with buildings in downtown and maintaining or creating a street edge with buildings, (v)The proposed project deemphasizes the quantity and visibility of surface parking spaces, and (vi)The proposed project has a minimum floor area ratio of 0.50. ***” 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 87 ITEM #:22 DATE:08-27-24 DEPT:P&R SUBJECT:HUNZIKER YOUTH SPORTS COMPLEX RIGHT-OF-WAY SALE TO IOWA DOT COUNCIL ACTION FORM BACKGROUND: The Iowa DOT is working on plans to widen Highway 30 to six lanes from Interstate 35 to University Boulevard. The first project of these improvements is to reconstruct the Highway 30 bridges over the South Skunk River. The bridge replacement will also include overflow culverts on both sides of the river to help lower flood waters. The culvert west of the Skunk River is directly north of the City-owned property adjacent the Hunziker Youth Sports Complex (800 Billy Sunday Road). Construction requires a partial acquisition of a small strip of property to construct the culvert and shape the drainage channel. Attached is a preliminary plan sheet showing the proposed improvements. The proposed acquisition is a small strip of land to the north of the Skunk River Trail that currently has some shrubs and trees, as shown in the attachment. The City has no current or planned future uses of the proposed acquisition area. The affected area is outside the boundaries of the Youth Sport Complex lease area. The culvert and channel have been designed to avoid impacts to the adjacent Skunk River Trail. It is anticipated that this section of the Skunk River Trail will be closed at times throughout the bridge construction to avoid safety issues with trail users. At its August 13th meeting, the City Council passed a resolution setting August 27th as the date of Public Hearing. The DOT has completed an appraisal, and subsequent review, for the proposed acquisition, as part of its acquisition process. This appraisal and review have determined the just compensation to be $3,300, which equates to a valuation of $17,000/acre. ALTERNATIVES: 1. Approve sale of property and delivery of conveyance to State of Iowa. 2. Direct staff to work with the Iowa DOT to identify a different course of action. CITY MANAGER'S RECOMMENDED ACTION: A review of the valuation for the proposed acquisition shows the proposed amount to be just compensation. The City has no current or planned future use of the proposed acquisition area and that the Iowa DOT's project will be mutually beneficial to the City of Ames. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ATTACHMENT(S): Current_Plan_-_City_of_Ames.pdf Site_Picture.png Review_Appraiser_s_Report.pdf 88 89 90 91 92 93 94 95 ITEM #:23 DATE:08-27-24 DEPT:ADMIN SUBJECT:COST SHARING FOR THE DEMOLISHMENT OF THE AMES MUNICIPAL POOL COUNCIL ACTION FORM BACKGROUND: The City Council referred the attached email from Julious Lawson, the previous Superintendent of the Ames Community School District, requesting that the City share in the cost of asbestos abatement and demolition of the Ames Municipal Pool. In the mid-1960's, the City of Ames paid for the construction of an indoor pool on leased land at the Ames High School site pursuant to an agreement dated May 4, 1965. Subsequently, this agreement was either replaced in total or amended primarily to extend the term of the land lease. A major provision contained in these agreements was a requirement that the City and School District share the costs of capital improvements, operations, repair, maintenance, and replacement of the pool and building. Over the life of the building both parties contributed millions of dollars to assure that the facility would accommodate the City's recreational swim programs and the School District's competitive swim programs. In order to make room for the new high school, the final amendment to the joint agreement terminated the land lease in 2022. It should be noted that none of the agreements included an obligation for the City to pay all, or any, amount of money to clear the site once the land lease is terminated. This omission does not appear to be an oversight, since many land leases involving City buildings on land leased from other government entities clearly specify how the City's building will be disposed of when the land lease terminates. Therefore, there is no legal obligation on the part of the City to honor this request for financial assistance. Mr. Lawson's rationale for the City's contribution is based on the fact that, "For more than 50 years, the District and City have enjoyed sharing the costs for the pool facility equally. It is the desire and request of the Ames Community School District that both entities honor the shared cost concept for the abatement and demolition of the Municipal Pool Facility." Also, attached is an itemized bill totaling $79,456.96 for the asbestos abatement and demolition of the Municipal Pool building. ALTERNATIVES: 1. Based on the fact that the City has no legal obligation to reimburse the Ames Community School District for the half of the expenses incurred for asbestos removal and demolition, the City Council can decide to respectfully reject the request. 2. The City Council can decide to reimburse the Ames Community School District for some amount less than the $79,456.96 requested. 96 3. The City Council can decide to reimburse the Ames Community School District for the total amount requested. While not specifically budgeted, the $79,456.96 can be funded out of the Park Development Fund which has a current balance of $551,378. CITY MANAGER'S RECOMMENDED ACTION: Over the years, the City of Ames and the Ames Community School District have enjoyed an excellent cooperative relationship and partnered on a number of projects that benefitted the residents of our community. For example, believing that the grade school properties serve as de facto neighborhood parks, the City of Ames previously provided funding for playground equipment at these school locations. Realizing that Ames Community School students represent the majority of the participants in the City's recreational program, the Ames School District has made their gyms available for the City's recreation programming for a nominal cost per participant per program ($1.25). Since there is no indication that the School District intends to increase these gym costs and both parties shared in the cost of operations and capital improvements over the long life of the indoor pool, a case can be made that the City of Ames should continue our cooperative venture and approve this request. Therefore, it is the recommendation of the City Manager that the City Council support Alternative #3 and thereby approve the request to reimburse the Ames Community School District in the amount of $79,456.96 with funding from the Park Development Fund. ATTACHMENT(S): Pool (002).pdf 97 1 Neefus, Jeramy From:Julious Lawson <julious.lawson@ames.k12.ia.us> Sent:Monday, March 25, 2024 2:10 PM To:Schainker, Steve Cc:Abraham, Keith Subject:Invoice for Municipal Pool Demolition Attachments:Pool Demolition Report Final Invoicing to City of Ames - 2023.pdf [External Email] Hi Steve, Per Mr. Keith Abraham, please find the invoice for the City of Ames portion of the demolition cost for the Municipal Pool on the old High School site attached. Also attached is the original agreement between the School District and the City of Ames. It is my understanding the City of Ames paid for the construction of the Municipal Pool and the School District provided the land. For more than 50 years, the District and City have enjoyed sharing the costs for the pool facility equally. It is the desire and request of the Ames Community School District that both entities honor the shared cost concept for the abatement and demolition of the Municipal Pool Facility. Please let me know if you have any questions or concerns. Thank you, -- Dr. Julious T. Lawson Superintendent Ames Community School District 2005 24th Street Ames, IA 50010 515.268.6600 amescsd.org 98 DATE VENDOR INVOICE # Reimburse Acct #'s 7/21/2021 Impact 7G 21960 $3,770.00 36-0109-4900-000-8372-450 3/30/2022 Controlled Asbestos, Inc. 10348 $5,802.00 36-0109-4900-000-8372-450 8/5/2022 Iowa Demolition DES-1000893 $20,911.13 36-0109-4700-000-8395-450 6/14/2023 LinnCo $91,679.00 36-0109-4900-000-8372-450 4/26/2022 Impact 7G 25684 $28,087.50 36-0109-4900-000-8372-450 6/8/2022 Impact 7G 26216 $5,000.00 36-0109-4900-000-8372-450 7/7/2022 Impact 7G 26628 $6,370.00 36-0109-4900-000-8372-450 9/15/2022 Impact 7G 27530 $11,000.00 36-0109-4900-000-8372-450 10/12/2022 Environmental Property Solutions 22149 $120,878.00 36-0109-4900-000-8372-450 10/17/2022 Impact 7G 27862 $20,450.00 36-0109-4900-000-8372-450 12/2/2022 Impact 7G 28438 $19,790.00 36-0109-4900-000-8372-450 12/29/2022 LinnCo $49,847.82 36-0109-4900-000-8372-450 1/6/2023 Impact 7G 28820 $14,000.00 36-0109-4900-000-8372-450 1/9/2023 Environmental Property Solutions 2309 $96,000.00 36-0109-4900-000-8372-450 4/4/2023 Impact 7G 29812 $9,100.00 36-0109-4900-000-8372-450 4/15/2023 Environmental Property Solutions 2353 $156,500.00 36-0109-4900-000-8372-450 5/5/2023 Impact 7G 30084 $19,440.00 36-0109-4900-000-8372-450 5/9/2023 LinnCo $24,976.66 36-0109-4900-000-8372-450 5/26/2023 LinnCo $45,413.94 36-0109-4900-000-8372-450 5/26/2023 LinnCo $108,182.07 36-0109-4900-000-8372-450 Total Abatenment and Monitoring Cost for Pool $122,162.13 $735,035.99 Total Demolition Cost Pool portion of abatement and monitoring, 100% $122,162.13 $36,751.80 Pool Portion of Demolition Cost, 5% City portion, 50% $61,081.07 $18,375.90 City portion, 50% Grand Total $79,456.96 Pool Demolition Invoice Proportionate Cost from Building 5% *Direct Cost to Pool (District/City Split 50/50 99 ITEM #:24 DATE:08-27-24 DEPT:W&PC SUBJECT:PURCHASE OF FARM PROPERTY FOR BIOSOLIDS APPLICATION (WPC) COUNCIL ACTION FORM BACKGROUND: The Water Pollution Control Facility (WPCF) utilizes a two-stage digestion process to break down the solids removed during the wastewater treatment process. It uses anaerobic bacteria to convert the organic matter into biogas in an oxygen-free environment. The remaining biosolids are less odorous and have substantially reduced pathogens. These biosolids can be safely applied to agricultural ground as a fertilizer and soil conditioner. The WPCF applies the biosolids to 330 acres of City-owned farm ground adjacent to the WPCF. The materials are typically applied in the fall at a rate to match the agronomic uptake rate of nitrogen by the crop that will be planted the following spring. A project is currently underway at the WPCF to convert the facility to an enhanced nutrient removal process. The additional nutrients that are removed from the liquid stream will end up in the solid stream, generating as much as 20% additional solids each year that will need to be land-applied. The FY 2016/17 Capital Improvements Plan (CIP) included funds to purchase additional ground for biosolids application as a part of the Residuals Handling Improvements project. No suitable ground was available at the time, and for several years the funds were simply carried over from year to year. In FY 2020/21, staff deleted the carryover funds during the budget amendment process, and inserted placeholder funds in FY 2029/30 of the ten-year financial plan that was used when preparing the Sewer Fund rate model. In doing so, the purchase of additional ground was accounted for in the rate projections, but funds were not tied up in the current year. The owner of property immediately adjacent to the WPCF’s existing farm has recently approached the City with a potential sale of approximately 133 gross acres (approximately 119 tillable acres) of farm ground. A map of the property is attached, with the WPCF shown in the lower left corner. The property owner has entered into a sales contract with Realty Gift Fund, a non-profit organization that accepts charitable donations of real property, then sells the property and disburses the proceeds to qualifying charitable entities as directed by the original donor of the land. The property owner had the ground appraised at a value of $1,197,000, and Realty Gift Fund has agreed to sell the property to the City for the appraised value. A copy of the purchase agreement is attached. The City had an independent appraisal of the ground performed that returned a value of $1,171,000. With the two appraisals being within 2%, staff is agreeable to the offered price. The sequence of events would be for the landowner to sign over the title to the land to Realty Gift Fund, and then the City and Realty Gift Fund would immediately close on the purchase. The parties anticipate that the closing could be completed in September or October of this year. Once the City has ownership, the farm would be managed by the same tenant farmer who has partnered with the City for decades on the existing farm ground. In the ten-year rate projections shared with Council in April 2024, the future year capital expenses included placeholder funds of $1,600,000 in FY 2029/30 to purchase additional farm ground. To finance the transaction described above, staff is recommending that Council 100 authorize the use of the undesignated available Sewer Fund balance, and staff would remove the planned $1,600,000 expense from the future CIP projections. Staff has performed a comparative analysis of the rate impact of accelerating the purchase at the agreed-on price. With all other assumptions in the rate model remaining unchanged, this transaction would have a very slight positive benefit to the fund balance, with an improved fund balance at the end of ten years of approximately $60,000. Land application of stabilized biosolids has been approved in Iowa for several decades and is an environmentally sustainable disposal method. There would be no anticipated adverse impact on the environment. There would be no environmental assessment or permitting changes required, as these fields are already included in the WPCF biosolids management plan that has been previously approved by the Iowa Department of Natural Resources. Upon Council's approval of the purchase agreement, staff would proceed with closing on the purchase of the ground from Realty Gift Fund. ALTERNATIVES: 1. Approve the Purchase Agreement with Realty Gift Fund for 133.04 acres, more or less, of agricultural land adjacent to the Water Pollution Control Facility for the amount of $1,197,000 using the available Sewer Fund balance. 2. Direct staff to negotiate different terms. 3. Do not approve the Purchase Agreement. CITY MANAGER'S RECOMMENDED ACTION: The need for additional farm ground was first identified in the FY 2016/17 Capital Improvements Plan. When staff was unable to identify suitable ground, the funds were pushed back several years. The current Sewer Fund rate model includes placeholder funds of $1.6 million that were just outside the five-year CIP. A willing seller has offered to sell ground immediately adjacent to the Water Pollution Control Facility, and at a price that is both mutually agreeable and within the placeholder funds. This additional ground is needed to accommodate the increased disposal of biosolids produced as a result of the nutrient reduction modifications. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative 1 as described above. ATTACHMENT(S): City of Ames Offer - 07 31 24 RGF SIGNED.pdf Addendum 1 to Ames Offer - 07 31 24 RGF SIGNED.pdf Self Rep - City of Ames.pdf Attachment - Parcel Map.pdf 101 102 103 104 105 106 THIS IS A LEGAL DOCUMENT. IF YOU DO NOT UNDERSTAND ALL OF THE INFORMATION CONTAINED WITHIN, CONTACT A LAWYER. REV.06.17.24 Page 1 of 1 Self Representation Agency Confirmation & Acknowledgement The term “Seller” shall hereinafter refer to seller, landlord or optionor. The term “Buyer” shall hereinafter refer to buyer, tenant or optionee. Hertz Real Estate Services and Hertz Farm Management may be interchanged with “Hertz”, “Broker” and/or “Brokerage”. Real Estate Sales Agreement Dated: July 31, 2024 Seller(s): Realty Gift Fund Buyer(s) City of Ames Legal Description or Property Address: SW¼, lying west of Skunk River and SW¼ NW¼, lying west of Skunk River, all in Section 32, Township 83 North, Range 23 West of the 5th P.M. Hertz Farm Management/Hertz Real Estate Services is the exclusive Agent/Brokerage of the Seller Buyer and has no fiduciary obligations or duties to any other party (“Customer”). All necessary agency disclosures and acknowledgements have been provided to Client. Customer, as Seller or Buyer, elects to represent themselves. Customer understands that no Brokerage or Licensee will be providing any assistance/advice or representation to Customer. Licensees may provide ministerial acts to facilitate the transaction, but it is acknowledged that Brokerage/Licensees are not responsible for any non-client decisions or actions. A. As a Self-Represented Customer your responsibility for Broker’s Professional Service Fee (“Fee”) shall be $0.00__. Self- Represented Customers will bear no responsibility for payment or partial payment of the Fee. The Broker will obtain the Fee, in full, from the party they represent as a Client. B. Brokerage fees and the sharing of fees between brokers are not fixed, controlled, recommended, suggested or maintained by any Association of REALTORS®, any listing service or any government entity. Brokerage fees are negotiable between the parties to a transaction. I. DEFINITIONS: A. Client: A part to a transaction who has an agency agreement with a broker for brokerage services. B. Customer: A consumer who is not being represented by a licensee, but for whom the licensee may perform ministerial acts C. Exclusive Agent/Brokerage: Client has contracted with brokerage to be the sole brokerage they will utilize to represent their interests. II. DUTIES OF REAL ESTATE LICENSEE TO CLIENT: A licensee providing brokerage services to a client, regardless of the type of agency representation agreed to, shall do all of the following: A. Place the client’s interests ahead of the interests of any other party, unless loyalty to a client violates licensee’s duties under the provisions of the Iowa Code or any other applicable law. B. Disclose to the client all information known by the licensee that is material to the transaction and that is not known by the client or could not be discovered by the client through a reasonably diligent inspection. C. Fulfill any obligation that is within the scope of this Agency Disclosure, except those obligations that are inconsistent with other duties that the licensee has under the Real Estate Brokers and Salespersons provisions of the Iowa Code or any other law. D. Disclose to client any financial interests the licensee or brokerage has in any company or business entity to which the licensee or brokerage refers a client for any service or product related to the transaction. The client is not obligated to use any such recommended company and may select a different company. III. DUTIES OF REAL ESTATE LICENSEE TO ALL PARTIES IN THE TRANSACTION (Client and Customer alike): A licensee, regardless of the type of agency representation agreed to, shall do all of the following: A. Provide brokerage services to all parties to the transaction honestly and in good faith. B. Diligently exercise reasonable skill and care in providing brokerage services to all parties. C. Disclose to each party all material adverse facts (i.e., significant defects or negative circumstances) that the licensee knows except: 1. Material adverse facts known by the party. 2. Material adverse facts the party could discover through a reasonably diligent inspection and which would be discovered by a reasonably prudent person under like/similar circumstances. 3. Material adverse facts the disclosure of which is prohibited by law. 4. Material adverse facts that are known to a person who conducts an inspection on behalf of a party. D. Account for all funds coming into the possession of a licensee, which belong to any party, within a reasonable time of receiving the funds. If a person decides to represent themselves or declines Brokerage representation, this document shall provide written acknowledgement and confirmation to all licensees involved in the transaction. A person representing themselves should consult a lawyer for any advice or other representation. BROKER: HERTZ REAL ESTATE SERVICES/HERTZ FARM MANAGEMENT CUSTOMER(S): CITY OF AMES Signature - Date Signature - Date Signature - Date Signature - Date 107 Attachment – Parcel Map 108 ITEM #:25 DATE:08-27-24 DEPT:FIN SUBJECT:OFFICIAL STATEMENT FOR GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024A COUNCIL ACTION FORM BACKGROUND: The FY 2024/25 Budget includes General Obligation (G.O.) Bond-funded capital improvement projects in the amount of $18,534,116. The City Council held a public hearing on the issuance of these bonds on March 26, 2024. Separately, on September 14, 2021, the City Council held a public hearing for the issuance of G.O. Bonds to fund a capital improvement project for the Indoor Aquatic Center. This action is necessary to proceed with a total G.O. Bond issuance of $18,810,000, including $1,856,100 for capital improvement projects and $16,678,016 for a portion of the Indoor Aquatic Center. The required Council action is to approve the official statement, set the date of sale for September 10, 2024, and authorize electronic bidding. Please note that in addition to the amount to fund the G.O. Bond-funded capital projects, the amount not-to-exceed includes additional authorization to allow for issuance costs and the option to sell our bonds at a premium over the par or face value of bonds. In any case, debt will not be issued in an amount where debt service exceeds the property tax levy included in the adopted budget. The Capital Improvements Plan’s FY 2024/25 G.O. Bond issue includes the following: FY 2024/25 : Intelligent Transportation System 476,100 Airport Entryway Improvements 680,000 Ada Hayden Heritage Park 700,000 Total G.O. Essential Corporate Purpose: 1,856,100 Indoor Aquatic Center: 16,678,016 Total G.O. Issuance: 18,534,116 Issuance Costs/Sale at Premium 275,884 Grand Total - 2024/25 G.O. Issuance 18,810,000 As part of the process for issuing bonds, the City is also required to approve the Official Statement, or “Preliminary Official Statement,” which is the offering document for municipal securities in preliminary form, which does not contain pricing information. The Statement provides several financial disclosures and information about the City. This “Preliminary Official Statement” is on file in the City Clerk’s Office and is attached for the Council's review. Additionally, the Council is being asked to approve electronic bidding as the method to provide a secure and highly competitive process for the sale of the bonds. The proposed issuance complies with the City Council-approved debt policy. 109 ALTERNATIVES: 1. Adopt a resolution approving the Official Statement for General Obligation Corporate Purpose Bonds, Series 2024A, setting the date of sale for September 10, 2024, and authorize electronic bidding for the sale. 2. Refer the Official Statement back to City staff for modifications. CITY MANAGER'S RECOMMENDED ACTION: Issuance of these bonds is necessary in order to accomplish the City’s approved Capital Improvements Plan for the current fiscal year. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated above. ATTACHMENT(S): Ames_IA_2024A_GO_Prelim_Official_Statement_For_City_Council_Approval.pdf 110 Th i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t a n d t h e in f o r m a t i o n c o n t a i n e d h e r e i n a r e s u b j e c t t o c o m p l e t i o n , a m e n d m e n t o r o t h e r c h a n g e w it h o u t n o t i c e . T h e B o n d s m a y n o t b e s o l d n o r ma y o f f e r s t o b u y b e a c c e p t e d p r i o r t o t h e t i m e th e P r e l i m i n a r y O f f i c i a l S t a t e m e n t i s d e l i v er e d i n f i n a l f o r m . U n d e r n o c i r c u m s t a n c e s s h a l l t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t c o n s t i t u t e a n o f f e r t o s e l l o r t h e s o l i c i t a t i o n o f a n o f f e r t o b u y , n o r s h a l l t h e r e b e a n y s a l e o f t h e Bo n d s i n a n y j u r i s d i c t i o n i n w h i c h s u c h o f f e r , s o l i c i t a t i o n o r sa l e w o u l d b e u n l a w f u l p r i o r t o r e g i s t r a t i o n o r q u a l i f i c a t i o n u n de r t h e a p p l i c a b l e s e c u r i t i e s la w s o f a n y s u c h j u r i s d i c t i o n . PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 27, 2024 New Issue Rating: Application Made to Moody’s Investors Service In the opinion of Dorsey & Whitney LLP, Bond Counsel, according to present laws, rulings and decisions and assuming the accuracy of certain representations and compliance with certain covenants, the interest on the Bonds (i) is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and (ii) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on noncorporate taxpayers by Section 55 of the Code. Interest on the Bonds may, however, be taken into account in determining adjusted financial statement income for purposes of the federal alternative minimum tax imposed on applicable corporations (as defined in Section 59(k) of the Code). See “TAX EXEMPTION AND RELATED TAX MATTERS” herein.. CITY OF AMES, IOWA $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A BIDS RECEIVED: Tuesday, September 10, 2024, 10:00 A.M., Central Time AWARD: Tuesday, September 10, 2024, 6:00 P.M., Central Time Dated: Date of Delivery (September 25, 2024) Principal Due: June 1, as shown inside front cover The $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A (the “Bonds”) are being issued pursuant to Division III of Chapters 384 and 403 of the Code of Iowa and a resolution to be adopted by the City Council of the City of Ames, Iowa (the “City”). The Bonds are being issued for the purpose of paying the costs, to that extent, of undertaking a project in the Downtown Reinvestment District Urban Renewal Area consisting of constructing, furnishing and equipping an indoor aquatic center and associated grounds and facilities; acquiring and installing street/traffic system equipment; undertaking improvements to the Ada Hayden Heritage Park; and undertaking improvements to the municipal airport. The purchaser of the Bonds agrees to enter into a loan agreement (the “Loan Agreement”) with the City pursuant to the authority contained in Section 384.24A of the Code of Iowa. The Bonds are issued in evidence of the City’s obligations under the Loan Agreement. The Bonds are general obligations of the City for which the City will pledge its power of levy direct ad valorem taxes against all taxable property within the City without limitation as to rate or amount to the repayment of the Bonds. The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Individual & purchases may be made in book-entry-only form, in the principal amount of $5,000 and integral multiples thereof. The purchaser will not receive certificates representing their interest in the Bonds purchased. The City’s Treasurer as Registrar/Paying Agent (the “Registrar”) will pay principal on the Bonds, payable annually on June 1, beginning June 1, 2025, and interest on the Bonds payable initially on June 1, 2025 and thereafter on each December 1 and June 1 to DTC, which will in turn remit such principal and interest to its participants for subsequent disbursements to the beneficial owners of the Bonds as described herein. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership maintained by the Registrar as of the 15th day of the month next preceding the interest payment date (the “Record Date”). THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER MINIMUM BID: $18,621,900 GOOD FAITH DEPOSIT: $188,100 Required of Purchaser Only TAX MATTERS: Federal: Tax-Exempt State: Taxable See “TAX EXEMPTION AND RELATED TAX ATTERS” for more information. The Bonds are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal opinion as to legality, validity and tax exemption of Dorsey & Whitney LLP, Bond Counsel, Des Moines, Iowa, to be furnished upon delivery of the Bonds. It is expected the Bonds will be available for delivery on or about September 25, 2024. This Preliminary Official Statement in the form presented is deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to revisions, corrections of modifications as determined to be appropriate, and is authorized to be distributed in connection with the offering of the Bonds for sale. *Preliminary; subject to change. 111 CITY OF AMES, IOWA $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A MATURITY: The Bonds will mature June 1 in the years and amounts as follows: Yea Amoun * Yea Amount* 2025 $960,000 2035 $995,000 2026 680,000 2036 995,000 2027 715,000 2037 910,000 2028 750,000 2038 945,000 2029 785,000 2039 985,000 2030 825,000 2040 1,020,000 2031 870,000 2041 1,065,000 2032 910,000 2042 1,105,000 2033 955,000 2043 1,150,000 2034 995,000 2044 1,195,000 *PRINCIPAL ADJUSTMENT: Preliminary; subject to change. The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to increase or reduction by the City or its designee after the determination of the successful bidder. The City may increase or decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $19,750,000. Interest rates specified by the successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City. The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as a percentage of bond principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. INTEREST: Interest on the Bonds will be payable on June 1, 2025 and semiannually thereafter. REDEMPTION: Bonds due after June 1, 2032 will be subject to call for prior redemption on said date or on any day thereafter upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the registration books. 112 COMPLIANCE WITH S.E.C. RULE 15c2-12 Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations, Securities Exchange Act of 1934, Rule 15c2-12 Municipal Securities Disclosure. Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the interest of receiving competitive bids in accordance with the “TERMS OF OFFERING” contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the final “Preliminary Official Statement”. Review Period: This Preliminary Official Statement has been distributed to City staff as well as to prospective bidders for an objective review of its disclosure. Comments, omissions or inaccuracies must be submitted to PFM Financial Advisors LLC (the “Municipal Advisor”) at least two business days prior to the sale. Requests for additional information or corrections in the Preliminary Official Statement received on or before this date will not be considered a qualification of a bid received. If there are any changes, corrections or additions to the Preliminary Official Statement, prospective bidders will be informed by an addendum at least one business day prior to the sale. Final Official Statement: Upon award of sale of the Bonds, the legislative body will authorize the preparation of a final Official Statement that includes the offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, anticipated delivery date and other information required by law and the identity of the underwriter (the “Syndicate Manager”) and syndicate members. Copies of the final Official Statement will be delivered to the Syndicate Manager within seven business days following the bid acceptance. REPRESENTATIONS No dealer, broker, salesman or other person has been authorized by the City, the Municipal Advisor or the underwriter to give any information or to make any representations other than those contained in this Preliminary Official Statement or the final Official Statement and, if given or made, such information and representations must not be relied upon as having been authorized by the City, the Municipal Advisor or the underwriter. This Preliminary Official Statement or the final Official Statement does not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been obtained from the City and other sources which are believed to be reliable, but it is not to be construed as a representation by the Municipal Advisor or underwriter. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Preliminary Official Statement or the final Official Statement, nor any sale made thereafter shall, under any circumstances, create any implication there has been no change in the affairs of the City or in any other information contained herein, since the date hereof. This Preliminary Official Statement is submitted in connection with the sale of the securities referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Preliminary Official Statement and any addenda thereto were prepared relying on information from the City and other sources, which are believed to be reliable. The Bonds are being offered when, and if issued by the City and accepted by the underwriter, subject to receipt of an opinion as the legality, validity and tax exemption by Dorsey & Whitney LLP, Des Moines, Iowa, Bond Counsel. It is expected that the Bonds in the definitive form will be available on or about September 25, 2024. Compensation of the Municipal Advisor, payable entirely by the City, is contingent upon the sale of the Bonds. References to website addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this Preliminary Official Statement for purposes of, and as that term is defined in, Securities and Exchange Commission Rule 15c2-12. 113 City of Ames, Iowa Mayor/City Council Membe Office Initial Term Commenced Term Expires John Haila Mayo January 2, 2018 December 31, 2025 Bronwyn Beatty-Hansen Council Member – 1st Ward January 1, 2016 December 31, 2025 Tim Gartin Council Member – 2nd Ward January 2, 2014 December 31, 2027 Gloria Betche Council Member – 3rd Ward January 2, 2014 December 31, 2025 Rachel Junck Council Member – 4th Ward January 2, 2020 December 31, 2027 Anita Rollins Council Member – At Large January 3, 2022 December 31, 2027 Amber Corrieri Council Member – At Large January 2, 2014 December 31, 2025 Emily Boland Ex-Officio Administration Steven Schainker, City Manager Corey Goodenow, Director of Finance Renee Hall, City Clerk Roger Wisecup II, City Treasurer John Dunn, Director of Water and Pollution Control John Joiner, Director of Public Works Donald Kom, Director of Electric Utility City Attorney Mark Lambert Ames, Iowa Bond Counsel Dorsey & Whitney LLP Des Moines, Iowa Municipal Advisor PFM Financial Advisors LLC Des Moines, Iowa 114 TABLE OF CONTENTS TERMS OF OFFERING ................................................................................................................. ..i SCHEDULE OF BOND YEARS .................................................................................................... vi EXHIBIT 1 - FORMS OF ISSUE PRICE CERTIFICATES PRELIMINARY OFFICIAL STATEMENT Introduction ....................................................................................................................................................... ..1 Authority And Purpose ...................................................................................................................................... ..1 Interest On The Bonds ....................................................................................................................................... ..1 Optional Redemption ......................................................................................................................................... ..1 Payment Of And Security For The Bonds ......................................................................................................... ..2 Book-Entry-Only Issuance ................................................................................................................................ ..2 Future Financing ................................................................................................................................................ ..4 Litigation ........................................................................................................................................................... ..4 Debt Payment History ....................................................................................................................................... ..4 Legal Matters ..................................................................................................................................................... ..4 Tax Exemption And Related Tax Matters ......................................................................................................... ..5 Bondholder's Risks ............................................................................................................................................ ..6 Rating ................................................................................................................................................................ 10 Municipal Advisor ............................................................................................................................................. 11 Continuing Disclosure ....................................................................................................................................... 11 Financial Statements .......................................................................................................................................... 11 Certification ....................................................................................................................................................... 12 APPENDIX A - GENERAL INFORMATION ABOUT THE CITY OF AMES, IOWA APPENDIX B - FORM OF LEGAL OPINION APPENDIX C - JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATE OFFICIAL BID FORM 115 (This page has been left blank intentionally.) 116 i TERMS OF OFFERING CITY OF AMES, IOWA Bids for the purchase of the City of Ames, Iowa’s (the “City”) $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A (the “Bonds”) will be received on Tuesday, September 10, 2024, before 10:00 A.M., Central Time, after which time they will be tabulated. The City Council will consider award of the Bonds at 6:00 P.M., Central Time, on the same day. Questions regarding the sale of the Bonds should be directed to the City’s Municipal Advisor, PFM Financial Advisors LLC (the “Municipal Advisor”), 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309, telephone 515-724-5734. Information may also be obtained from Mr. Roger Wisecup, City Treasurer, City of Ames, 515 Clark Avenue, Ames, Iowa, 50010, telephone 515-239-5119. The following section sets forth the description of certain terms of the Bonds, as well as the “TERMS OF OFFERING” with which all bidders and bid proposals are required to comply. DETAILS OF THE BONDS GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024A, in the principal amount of $18,810,000* to be dated the date of delivery (anticipated to be September 25, 2024), in the denomination of $5,000 or multiples thereof, will mature on June 1 as follows: Yea Amoun * Yea Amount* 2025 $960,000 2035 $995,000 2026 680,000 2036 995,000 2027 715,000 2037 910,000 2028 750,000 2038 945,000 2029 785,000 2039 985,000 2030 825,000 2040 1,020,000 2031 870,000 2041 1,065,000 2032 910,000 2042 1,105,000 2033 955,000 2043 1,150,000 2034 995,000 2044 1,195,000 * Preliminary; subject to change. ADJUSTMENT TO BOND MATURITY AMOUNTS The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to increase or reduction by the City or its designee after the determination of the successful bidder. The City may increase or decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $19,750,000. Interest rates specified by the successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City. The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as a percentage of bond principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. INTEREST ON THE BONDS Interest on the Bonds will be payable on June 1, 2025, and semiannually on the 1st day of December and June thereafter. Principal and interest shall be paid to the registered holder of a bond as shown on the records of ownership maintained by the Registrar as of the 15th day of the month preceding the interest payment date (the “Record Date”). Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. 117 ii OPTIONAL REDEMPTION Bonds due after June 1, 2032, will be subject to call prior to maturity in whole, or from time to time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the registration books. TERM BOND OPTION Bidders shall have the option of designating the Bonds as serial bonds or term bonds, or both. The bid must designate whether each of the principal amounts shown above represent a serial maturity or a mandatory redemption requirement for a term bond maturity. (See the “OFFICIAL BID FORM” for more information.) In any event, the above principal amount scheduled shall be represented by either serial bond maturities or mandatory redemption requirements, or a combination of both. GOOD FAITH DEPOSIT A good faith deposit in the amount of $188,100 (the “Deposit”) is required from the lowest bidder only. The lowest bidder is required to submit such Deposit payable to the order of the City, not later than 12:00 P.M., Central Time, on the day of the sale of the Bonds and in the form of either (i) a cashier’s check provided to the City or its Municipal Advisor, or (ii) a wire transfer as instructed by the City’s Municipal Advisor. If not so received, the bid of the lowest bidder may be rejected and the City may direct the second lowest bidder to submit a deposit and thereafter may award the sale of the Bonds to the same. No interest on a deposit will accrue to the successful bidder (the “Purchaser”). The Deposit will be applied to the purchase price of the Bonds. In the event a Purchaser fails to honor its accepted bid proposal, any deposit will be retained by the City. FORM OF BIDS AND AWARD All bids shall be unconditional for the entire issue of Bonds for a price not less than $18,621,900, plus accrued interest, and shall specify the rate or rates of interest in conformity to the limitations as set forth in the “BIDDING PARAMETERS” section herein. Bids must be submitted on or in substantial compliance with the “OFFICIAL BID FORM” provided by the City. The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost (the “TIC”) basis assuming compliance with the “ESTABLISHMENT OF ISSUE PRICE” herein, and “GOOD FAITH DEPOSIT” herein. The TIC shall be determined by the present value method, i.e., by ascertaining the semiannual rate, compounded semiannually, necessary to discount to present value as of the dated date of the Bonds, the amount payable on each interest payment date and on each stated maturity date or earlier mandatory redemption, so that the aggregate of such amounts will equal the aggregate purchase price offered therefore. The TIC shall be stated in terms of an annual percentage rate and shall be that rate of interest which is twice the semiannual rate so ascertained (also known as the Canadian Method). The TIC shall be as determined by the Municipal Advisor based on the “TERMS OF OFFERING” and all amendments, and on the bids as submitted. The Municipal Advisor’s computation of the TIC of each bid shall be controlling. In the event of tie bids for the lowest TIC, the Bonds will be awarded by lot. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and (iii) reject any bid which the City determines to have failed to comply with the terms herein. BIDDING PARAMETERS Each bidder’s proposal must conform to the following limitations: 1. Each annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of maturity. 2. Rates of interest bid must be in multiples of one-eighth or one-twentieth of one percent. 3. The initial price to the public for each maturity must be 98% or greater. 118 iii RECEIPT OF BIDS Forms of Bids: Bids must be submitted on or in substantial compliance with the “TERMS OF OFFERING” and “OFFICIAL BID FORM” provided by the City or through PARITY® competitive bidding system (the “Internet Bid System”). The City shall not be responsible for malfunction or mistake made by any person, or as a result of the use of an electronic bid or the means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective bidder who shall be bound by the terms of the bid as received. No bid will be accepted after the time specified in the “OFFICIAL BID FORM”. The time as maintained by the Internet Bid System shall constitute the official time with respect to all bids submitted. A bid may be withdrawn before the bid deadline using the same method used to submit the bid. If more than one bid is received from a bidder, the last bid received shall be considered. Sealed Bidding: Sealed bids may be submitted and will be received at the office of the City’s Treasurer, City Hall, 515 Clark Avenue, Ames, Iowa 50010. Electronic Internet Bidding: Electronic internet bids will be received at the office of the City’s Municipal Advisor, PFM Financial Advisors LLC, Des Moines, Iowa, and at the office of the City’s Treasurer. Electronic internet bids must be submitted through the Internet Bid System. Information about the Internet Bid System may be obtained by calling 212-849-5021. Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for purposes of submitting its electronic internet bid in a timely manner and in compliance with the requirements of the “TERMS OF OFFERING” and “OFFICIAL BID FORM”. The City is permitting bidders to use the services of the Internet Bid System solely as a communication mechanism to conduct the electronic internet bidding and the Internet Bid System is not an agent of the City. Provisions of the “TERMS OF OFFERING” and “OFFICIAL BID FORM” shall control in the event of conflict with information provided by the Internet Bid System. BOOK-ENTRY-ONLY ISSUANCE The Bonds will be issued by means of a book-entry-only system with no physical distribution of bond certificates made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the Registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The Purchaser, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. MUNICIPAL BOND INSURANCE AT PURCHASER’S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of the bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the Purchaser. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the Purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility of the Purchaser. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the Purchaser shall not constitute cause for failure or refusal by the Purchaser to accept delivery on the Bonds. The City reserves the right in its sole discretion to accept or deny changes to the financing documents requested by the insurer selected by the Purchaser. 119 iv DELIVERY The Bonds will be delivered to the Purchaser through DTC in New York, New York, against full payment in immediately available cash or federal funds. The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty days from the date of sale for any reason except failure of performance by the Purchaser, the Purchaser may withdraw their bid and thereafter their interest in and liability for the Bonds will cease. When the Bonds are ready for delivery, the City will give the Purchaser five working days’ notice of the delivery date and the City will expect payment in full on that date; otherwise reserving the right at its option to determine that the Purchaser failed to comply with the offer of purchase. ESTABLISHMENT OF ISSUE PRICE In order to establish the issue price of the Bonds for federal income tax purposes, the City requires bidders to agree to the following, and by submitting a bid, each bidder agrees to the following. If a bid is submitted by a potential underwriter, the bidder confirms that (i) the underwriters have offered or reasonably expect to offer the Bonds to the public on or before the date of the award at the offering price (the “initial offering price”) for each maturity as set forth in the bid and (ii) the bidder, if it is the winning bidder, shall require any agreement among underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initial sale of the Bonds to the public to which it is a party to include provisions requiring compliance by all parties to such agreements with the provisions contained herein. For purposes hereof, Bonds with a separate CUSIP number constitute a separate “maturity,” and the public does not include underwriters of the Bonds (including members of a selling group or retail distribution group) or persons related to underwriters of the Bonds. If, however, a bid is submitted for the bidder’s own account in a capacity other than as an underwriter of the Bonds, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Bonds, the bidder shall notify the City to that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwise required below. If the winning bidder intends to act as an underwriter, the City shall advise the winning bidder at or prior to the time of award whether (i) the competitive sale rule or (ii) the “hold-the-offering price” rule applies. If the City advises the Purchaser that the requirements for a competitive sale have been satisfied and that the competitive sale rule applies, the Purchaser will be required to deliver to the City at or prior to closing a certification, substantially in the form attached hereto as EXHIBIT 1-A, as to the reasonably expected initial offering price as of the award date. If the City advises the Purchaser that the requirements for a competitive sale have not been satisfied and that the hold-the- offering price rule applies, the Purchaser shall (1) upon the request of the City confirm that the underwriters did not offer or sell any maturity of the Bonds to any person at a price higher than the initial offering price of that maturity during the period starting on the award date and ending on the earlier of (a) the close of the fifth business day after the sale date or (b) the date on which the underwriters have sold at least 10% of that maturity to the public at or below the initial offering price; and (2) at or prior to closing, deliver to the City a certification substantially in the form attached hereto as EXHIBIT 1-B, together with a copy of the pricing wire. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by Municipal Advisor. Bidders should prepare their bids on the assumption that the Bonds will be subject to the “hold-the-offering-price” rule. Any bid submitted pursuant to the “TERMS OF OFFERING” and “OFFICIAL BID FORM” shall be considered a firm offer for the purchase of the Bonds, and bids submitted will not be subject to cancellation or withdrawal. 120 v OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Bonds. The Preliminary Official Statement will be further supplemented by offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, anticipated delivery date and underwriter, together with any other information required by law or deemed appropriate by the City, shall constitute a final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Rule”). By awarding the Bonds to any underwriter or underwriting syndicate submitting an “OFFICIAL BID FORM” therefore, the City agrees that no more than seven (7) business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 25 copies of the final Official Statement to permit each “Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of the Rule. The City shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the final Official Statement to the Participating Underwriter. Any underwriter executing and delivering an “OFFICIAL BID FORM” with respect to the Bonds, agrees thereby, if its bid is accepted by the City, (i) it shall accept such designation, and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the final Official Statement. ELECTRONIC EXECUTED DOCUMENTS Purchaser consents to the receipt of electronic transcripts and acknowledges the City’s intended use of electronically executed documents. Chapter 554D of the Iowa Code establishes electronic signatures have the full weight and legal authority as manual signatures. CONTINUING DISCLOSURE The City will covenant in a Continuing Disclosure Certificate for the benefit of the Owners and Beneficial Owners of the Certificates to provide annually certain financial information and operating data relating to the City (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City not later than June 30th after the close of each fiscal year, commencing with the close of the fiscal year ending June 30, 2024, with the Municipal Securities Rulemaking Board, at its internet repository named “Electronic Municipal Market Access” (“EMMA”). The notices of events, if any, are also to be filed with EMMA. See “APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE”. The specific nature of the information to be contained in the Annual Report or the notices of events, and the manner in which such materials are to be filed, are summarized in “APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE”. These covenants have been made in order to assist the Purchaser in complying with section (b)(5) of the Rule. In accordance with the reporting requirements of paragraph (f)(3) of the Rule, within the past five years, the City has not failed to comply, in all material respects, with any previous undertakings it has entered into with respect to the Rule. Regarding the Mary Greeley Medical Center’s (the “Medical Center”) the Annual Financial Information and Operating Data Report for the Fiscal Year ending June 30, 2021 was not timely filed. Breach of the undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for the Bonds. A broker or dealer is to consider a known breach of the undertakings, however, before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the undertakings may adversely affect the transferability and liquidity of the Bonds and their market price. CUSIP NUMBERS It is anticipated that Committee on Uniform Security Identification Procedures (“CUSIP”) numbers will be printed on the Bonds and the Purchaser must agree in the bid proposal to pay the cost thereof. In no event will the City, Bond Counsel or Municipal Advisor be responsible for the review or express any opinion that the CUSIP numbers are correct. Incorrect CUSIP numbers on said Bonds shall not be cause for the Purchaser to refuse to accept delivery of said Bonds. BY ORDER OF THE CITY COUNCIL City of Ames, Iowa /s/ Roger Wisecup, City Treasurer 121 vi SCHEDULE OF BOND YEARS $18,810,000* City of Ames, Iowa General Obligation Corporate Purpose Bonds, Series 2024A Bonds Dated: Interest Due: June 1, 2025 and each December 1 and June 1 to maturity Principal Due: June 1, 2025-2044 Cumulative Year Principal *ond Years Bond Years 2025 $960,000 656.00 656.00 2026 680,000 1,144.67 1,800.67 2027 715,000 1,918.58 3,719.25 2028 750,000 2,762.50 6,481.75 2029 785,000 3,676.42 10,158.17 2030 825,000 4,688.75 14,846.92 2031 870,000 5,814.50 20,661.42 2032 910,000 6,991.83 27,653.25 2033 955,000 8,292.58 35,945.83 2034 995,000 9,634.92 45,580.75 2035 995,000 10,629.92 56,210.67 2036 995,000 11,624.92 67,835.58 2037 910,000 11,541.83 79,377.42 2038 945,000 12,930.75 92,308.17 2039 985,000 14,463.08 106,771.25 2040 1,020,000 15,997.00 122,768.25 2041 1,065,000 17,767.75 140,536.00 2042 1,105,000 19,540.08 160,076.08 2043 1,150,000 21,485.83 181,561.92 2044 1,195,000 23,521.58 205,083.50 Average Maturity (dated date): 10.903 Years * Preliminary; subject to change. September 25, 2024 122 EXHIBIT 1 FORMS OF ISSUE PRICE CERTIFICATES 123 (This page has been left blank intentionally.) 124 Exhibit 1-A to Terms of Offering EXHIBIT 1-A $________ CITY OF AMES, IOWA GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024A ISSUE PRICE CERTIFICATE (competitive sale 3 bids) The undersigned, on behalf of [NAME OF UNDERWRITER] (“[SHORT NAME OF UNDERWRITER]”), hereby certifies as set forth below with respect to the sale of the obligations named above (the “Bonds”). 1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by [SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the Bonds used by [SHORT NAME OF UNDERWRITER] in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by [SHORT NAME OF UNDERWRITER] to purchase the Bonds. (b) [SHORT NAME OF UNDERWRITER] was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by [SHORT NAME OF UNDERWRITER] constituted a firm offer to purchase the Bonds. 2. Defined Terms. For purposes of this Issue Price Certificate: (a) City means City of Ames, Iowa. (b) Maturity means Bonds with the same credit and payment terms. Any Bonds with different maturity dates, or with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) Member of the Distribution Group means (i) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (d) Public means any person (i.e., an individual, trust, estate, partnership, association, company, or corporation) other than a Member of the Distribution Group or a related party to a Member of the Distribution Group. A person is a “related party” to a Member of the Distribution Group if the Member of the Distribution Group and that person are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). 125 Exhibit 1-A to Terms of Offering (e) Sale Date means the first day on which there is a binding contract in writing for the sale of the respective Maturity. The Sale Date of each Maturity was September 10, 2024. The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents [SHORT NAME OF UNDERWRITER]’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the City with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Dorsey & Whitney LLP, Des Moines, Iowa in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the City from time to time relating to the Bonds. [UNDERWRITER] By:____________________________________ Name:__________________________________ Dated: September 25, 2024 126 Exhibit 1-A to Terms of Offering SCHEDULE A EXPECTED OFFERING PRICES (Attached) 127 Exhibit 1-A to Terms of Offering SCHEDULE B COPY OF UNDERWRITER’S BID (Attached) 128 Exhibit 1-B to Terms of Offering EXHIBIT 1-B $________ CITY OF AMES, IOWA GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024A ISSUE PRICE CERTIFICATE (Form - Fewer than 3 bids) The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] ([“[SHORT NAME OF UNDERWRITER]”)][the “Representative”)][, on behalf of itself and [NAMES OF OTHER UNDERWRITERS] (together, the “Underwriting Group”),] hereby certifies as set forth below with respect to the sale of the obligations named above (the “Bonds”). 1. Initial Offering Price of the Bonds. [SHORT NAME OF UNDERWRITER][The Underwriting Group] offered the Bonds to the Public for purchase at the specified initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire for the Bonds is attached to this certificate as Schedule B. 2. First Price at which Sold to the Public. On the Sale Date, at least 10% of each Maturity [listed in Schedule C] was first sold to the Public at the respective Initial Offering Price [or price specified [therein][in Schedule C], if different]. 3. Hold the Offering Price Rule. [SHORT NAME OF UNDERWRITER][The Underwriting Group] has agreed in writing that, (i) for each Maturity less than 10% of which was first sold to the Public at a single price as of the Sale Date, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “Hold-the-Offering-Price Rule”), and (ii) any agreement among underwriters, selling group agreement, or third-party distribution agreement contains the agreement of each underwriter, dealer, or broker-dealer who is a party to such agreement to comply with the Hold-the- Offering-Price Rule. Based on the [SHORT NAME OF UNDERWRITER][Representative]’s own knowledge and, in the case of sales by other Members of the Distribution Group, representations obtained from the other Members of the Distribution Group, no Member of the Distribution Group has offered or sold any such Maturity at a price that is higher than the respective Initial Offering Price during the respective Holding Period. 4. Defined Terms. For purposes of this Issue Price Certificate: (a) Holding Period means the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (September 17, 2024), or (ii) the date on which Members of the Distribution Group have sold at least 10% of such Maturity to the Public at one or more prices, none of which is higher than the Initial Offering Price for such Maturity. (b) City means City of Ames, Iowa. (c) Maturity means Bonds with the same credit and payment terms. Any Bonds with different maturity dates, or with the same maturity date but different stated interest rates, are treated as separate Maturities. (d) Member of the Distribution Group means (i) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). 129 Exhibit 1-B to Terms of Offering (e) Public means any person (i.e., an individual, trust, estate, partnership, association, company, or corporation) other than a Member of the Distribution Group or a related party to a Member of the Distribution Group. A person is a “related party” to a Member of the Distribution Group if the Member of the Distribution Group and that person are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (f) Sale Date means the first day on which there is a binding contract in writing for the sale of the respective Maturity. The Sale Date of each Maturity was September 10, 2024. The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents [SHORT NAME OF UNDERWRITER][The Underwriting Group]’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the City with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Dorsey & Whitney LLP, Des Moines, Iowa in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the City from time to time relating to the Bonds. By:____________________________________ Name:__________________________________ Dated: September 25, 2024 130 Exhibit 1-B to Terms of Offering SCHEDULE A INITIAL OFFERING PRICES OF THE BONDS (Attached) 131 Exhibit 1-B to Terms of Offering SCHEDULE B PRICING WIRE (Attached) 132 Exhibit 1-B to Terms of Offering SCHEDULE C SALES OF AT LEAST 10% OF MATURITY TO THE PUBLIC ON THE SALE DATE AT THE INITIAL OFFERING PRICE (Attached) 133 (This page has been left blank intentionally.) 134 1 PRELIMINARY OFFICIAL STATEMENT CITY OF AMES, IOWA $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A INTRODUCTION This Preliminary Official Statement contains information relating to the City of Ames, Iowa (the “City”) and its issuance of $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A (the “Bonds”). This Preliminary Official Statement has been authorized by the City and may be distributed in connection with the sale of the Bonds authorized therein. Inquiries may be made to the City’s Municipal Advisor, PFM Financial Advisors LLC (the “Municipal Advisor”), 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309, telephone 515-724-5734. Information may also be obtained from Mr. Roger Wisecup, City Treasurer, City of Ames, 515 Clark Avenue, Ames, Iowa, 50010, telephone 515-239-5119. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Division III of Chapters 384 and 403 of the Code of Iowa and a resolution to be adopted by the City Council of the City. The Bonds are being issued for the purpose of paying the costs, to that extent, of undertaking a project in the Downtown Reinvestment District Urban Renewal Area consisting of constructing, furnishing and equipping an indoor aquatic center and associated grounds and facilities; acquiring and installing street/traffic system equipment; undertaking improvements to the Ada Hayden Heritage Park; and undertaking improvements to the municipal airport. The estimated sources and uses of the Bonds are as follows: Sources of Funds* Par Amoun $18,810,000.00 Uses of Funds* Deposit to Project Fund $18,534,116.00 Underwriter’s Discoun 188,100.00 Cost of Issuance and Contingency 87,784.00 Total Uses $18,810,000.00 * Preliminary; subject to change. INTEREST ON THE BONDS Interest on the Bonds will be payable on June 1, 2025 and semiannually on the 1st day of December and June thereafter. Principal and interest shall be paid to the registered holder of a bond as shown on the records of ownership maintained by the Registrar as of the 15th day of the month preceding the interest payment date (the “Record Date”). Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. OPTIONAL REDEMPTION Bonds due after June 1, 2032 will be subject to call prior to maturity in whole, or from time to time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the registration books. 135 2 PAYMENT OF AND SECURITY FOR THE BONDS Pursuant to the Resolution and the Act, the Bonds and the interest thereon are general obligations of the City, and all taxable property within the corporate boundaries of the City is subject to the levy of taxes to pay the principal of and interest on the Bonds without constitutional or statutory limitation as to rate or amount. See “APPENDIX A – GENERAL INFORMATION ABOUT THE CITY OF AMES, IOWA.” Section 76.2 of the Code of Iowa, 2023, as amended (the “Iowa Code”), provides that when an Iowa political subdivision issues general obligation bonds, the governing authority of such political subdivision shall, by resolution adopted before issuing the bonds, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the bonds. A certified copy of this resolution shall be filed with the County Auditor in which the City is located, giving rise to a duty of the County Auditor to annually enter this levy for collection from the taxable property within the boundaries of the City, until funds are realized to pay the bonds in full. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due, the Resolution provides for the levy of a tax sufficient for that purpose on all the taxable property in the City in each of the years while the Bonds are outstanding. The City shall file a certified copy of the Resolution with the County Auditor, pursuant to which the County Auditor is instructed to enter for collection and assess the tax authorized. When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds and for no other purpose whatsoever. Pursuant to the provisions of Section 76.4 of the Iowa Code, each year while the Bonds remain outstanding and unpaid, any funds of the City which may lawfully be applied for such purpose, may be appropriated, budgeted and, if received, used for the payment of the principal of and interest on the Bonds as the same become due, and if so appropriated, the taxes for any given fiscal year as provided for in the Resolution, shall be reduced by the amount of such alternate funds as have been appropriated for said purpose and evidenced in the City’s budget. BOOK-ENTRY-ONLY ISSUANCE The information contained in the following paragraphs of this subsection “BOOK-ENTRY-ONLY ISSUANCE” has been extracted from a schedule prepared by Depository Trust Company (“DTC”) entitled “SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE”. The information in this section concerning DTC and DTC’s book-entry-only system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (the “Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry-only transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct 136 3 Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the “Indirect Participants”). DTC has S&P Global Ratings: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (the “Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry-only system for the Securities is discontinued. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date identified in a listing attached to the Omnibus Proxy. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of 137 4 redemption proceeds, distributions, and dividend payments to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry-only credit of tendered Securities to Remarketing Agent’s DTC account. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC’s book-entry-only system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. FUTURE FINANCING The City does not anticipate issuing any additional general obligation debt within 90 days of this Official Statement. However, the City is in the process of issuing Sewer Revenue Note in the approximate amount of $65,200,000 for wastewater treatment plant improvements through the Iowa Finance Authority State Revolving Fund loan program. LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City’s ability to meet its financial obligations. At closing, the City will certify that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the Bonds, or the titles of the City officers to their respective positions, or the validity of the Bonds, or the power and duty of the Bonds to provide and apply adequate taxes for the full and prompt payment of the principal and interest of the Bonds, and that no measure or provision for the authorization or issuance of the Bonds has been repealed or rescinded.” DEBT PAYMENT HISTORY The City knows of no instance in which they have defaulted in the payment of principal and interest on its debt. LEGAL MATTERS Legal matters incident to the authorization, issuance and sale of the Bonds and with regard to the tax-exempt status of the interest thereon (see “TAX EXEMPTION AND RELATED TAX MATTERS” herein) are subject to the approving legal opinion of Dorsey & Whitney LLP, Des Moines, Iowa, Bond Counsel, a form of which is attached hereto as APPENDIX B to this Preliminary Official Statement. Signed copies of the opinion, dated and premised on law in effect as of the date of original delivery of the Bonds, will be delivered to the purchaser at the time of such original delivery. The Bonds are offered subject to prior sale and to the approval of legality of the Bonds by Bond Counsel. The legal opinion to be delivered will express the professional judgment of Bond Counsel, and by rendering a legal opinion, Bond Counsel does not become an insurer or guarantor of the result indicated by that expression of professional judgment of the transaction or the future performance of the parties to the transaction.” 138 5 TAX EXEMPTION AND RELATED TAX MATTERS Federal Income Tax Exemption: The opinion of Bond Counsel will state that under present laws and rulings, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on noncorporate taxpayers under the Code. The opinion set forth in the preceding sentence will be subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. In the resolution authorizing the issuance of the Bonds, the City will covenant to comply with all such requirements. There may be certain other federal tax consequences to the ownership of the Bonds by certain taxpayers, including without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security and Railroad Retirement benefits, taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations, and corporations that may be subject to the alternative minimum tax. Bond Counsel will express no opinion with respect to other federal tax consequences to owners of the Bonds. Prospective purchasers of the Bonds should consult with their tax advisors as to such matters. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. State of Iowa Income Taxes: The interest on the Bonds is NOT exempt from present Iowa income taxes. Proposed Changes in Federal and State Tax Law: From time to time, there are Presidential proposals, proposals of various federal committees, and legislative proposals in the Congress and in the states that, if enacted, could alter or amend the federal and state tax matters referred to herein or adversely affect the marketability or market value of the Bonds or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact the marketability or market value of the Bonds simply by being proposed. No prediction is made whether such provisions will be enacted as proposed or concerning other future legislation affecting the tax treatment of interest on the Bonds. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax exempt status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be impacted thereby. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation. Not Qualified Tax-Exempt Obligations: In the resolution authorizing the issuance of the Bonds, the City will NOT designate the Bonds as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes a portion of the interest expense that is allocable to tax-exempt obligations. In the opinion of Bond Counsel, the Bonds are “not qualified tax- exempt obligations” within the meaning of Section 265(b)(3) of the Code. Original Issue Discount: The Bonds maturing in the years ________________ (collectively, the “Discount Bonds”) are being sold at a discount from the principal amount payable on such Discount Bonds at maturity. The difference between the price at which a substantial amount of the Discount Bonds of a given maturity is first sold to the public (the “Issue Price”) and the principal amount payable at maturity constitutes “original issue discount” under the Internal Revenue 139 6 Code. The amount of original issue discount that accrues to a holder of a Discount Bond under section 1288 of the Internal Revenue Code is excluded from federal gross income to the same extent that stated interest on such Discount Bond would be so excluded. The amount of the original issue discount that accrues with respect to a Discount Bond under section 1288 is added to the owner’s federal tax basis in determining gain or loss upon disposition of such Discount Bond (whether by sale, exchange, redemption or payment at maturity). Interest in the form of original issue discount accrues under section 1288 pursuant to a constant yield method that reflects semiannual compounding on dates that are determined by reference to the maturity date of the Discount Bond. The amount of original issue discount that accrues for any particular semiannual accrual period generally is equal to the excess of (1) the product of (a) one-half of the yield on such Discount Bonds (adjusted as necessary for an initial short period) and (b) the adjusted issue price of such Discount Bonds, over (2) the amount of stated interest actually payable. For purposes of the preceding sentence, the adjusted issue price is determined by adding to the Issue Price for such Discount Bonds the original issue discount that is treated as having accrued during all prior semiannual accrual periods. If a Discount Bond is sold or otherwise disposed of between semiannual compounding dates, then the original issue discount that would have accrued for that semiannual accrual period for federal income tax purposes is allocated ratably to the days in such accrual period. An owner of a Discount Bond who disposes of such Discount Bond prior to maturity should consult owner’s tax advisor as to the amount of original issue discount accrued over the period held and the amount of taxable gain or loss upon the sale or other disposition of such Discount Bond prior to maturity. Owners who purchase Discount Bonds in the initial public offering but at a price different than the Issue Price should consult their own tax advisors with respect to the tax consequences of the ownership Discount Bonds. The Internal Revenue Code contains provisions relating to the accrual of original issue discount in the case of subsequent purchasers of bonds such as the Discount Bonds. Owners who do not purchase Discount Bonds in the initial offering should consult their own tax advisors with respect to the tax consequences of the ownership of the Discount Bonds. Original issue discount that accrues in each year to an owner of a Discount Bond may result in collateral federal income tax consequences to certain taxpayers. No opinion is expressed as to state and local income tax treatment of original issue discount. All owners of Discount Bonds should consult their own tax advisors with respect to the federal, state, local and foreign tax consequences associated with the purchase, ownership, redemption, sale or other disposition of Discount Bonds. Original Issue Premium: The Bonds maturing in the years _____________ are being issued at a premium to the principal amount payable at maturity. Except in the case of dealers, which are subject to special rules, Bondholders who acquire the Bonds at a premium must, from time to time, reduce their federal tax bases for the Bonds for purposes of determining gain or loss on the sale or payment of such Bonds. Premium generally is amortized for federal income tax purposes on the basis of a bondholder’s constant yield to maturity or to certain call dates with semiannual compounding. Bondholders who acquire any Bonds at a premium might recognize taxable gain upon sale of the Bonds, even if such Bonds are sold for an amount equal to or less than their original cost. Amortized premium is not deductible for federal income tax purposes. Bondholders who acquire any Bonds at a premium should consult their tax advisors concerning the calculation of bond premium and the timing and rate of premium amortization, as well as the state and local tax consequences of owning and selling the Bonds acquired at a premium. BONDHOLDER’S RISKS An investment in the Bonds involves an element of risk. In order to identify risk factors and make an informed investment decision, potential investors should be thoroughly familiar with this entire Preliminary Official Statement (including the appendices hereto) in order to make a judgment as to whether the Bonds are an appropriate investment. Tax Levy Procedures: The Bonds are general obligations of the City, payable from and secured by a continuing ad- valorem tax levied against all of the taxable property within the boundaries of the City. As part of the budgetary process of the City, each fiscal year the City will have an obligation to request a debt service levy to be applied against all of the taxable property within the boundaries of the City. A failure on the part of the City to make a timely levy request, or a 140 7 levy request by the City that is inaccurate or is insufficient to make full payments of the debt service on the Bond for a particular fiscal year, may cause Bondholders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. Changes in Property Taxation: From time to time the Iowa General Assembly has altered the method of property taxation and could do so again. Any alteration in property taxation structure could affect property tax revenues available to pay the Bonds. Historically, the Iowa General Assembly has applied changes in property taxation structure on a prospective basis; however, there is no assurance that future changes in property taxation structure by the Iowa General Assembly will not be retroactive. It is impossible to predict the outcome of future property tax changes by the Iowa General Assembly or their potential negative impact, if any, on the Bonds and the security for the Bonds. Matters Relating to Enforceability of Agreements: Bondholders shall have and possess all the rights of action and remedies afforded by the common law, the Constitution and statutes of the State of Iowa and of the United States of America for the enforcement of payment of the Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit, action or mandamus to enforce and compel performance of the duties required by Iowa law and the Resolution. The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in the Resolution or the Loan Agreement. The remedies available to the Bondholders upon an event of default under the Resolution or the Loan Agreement, in certain respects, may require judicial action, which is often subject to discretion and delay. Under existing law, including specifically the federal bankruptcy code, certain of the remedies specified in the Loan Agreement or the Resolution may not be readily available or may be limited. A court may decide not to order the specific performance of the covenants contained in these documents. The legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by general principles of equity and public policy and by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. No representation is made, and no assurance is given, that the enforcement of any remedies will result in sufficient funds to pay all amounts due under the Resolution or the Loan Agreement, including principal of and interest on the Bonds. Secondary Market: There can be no guarantee there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history of economic prospects connected with a particular issue, secondary marketing practices in connection with a particular note or bond issue are suspended or terminated. Additionally, prices of bond or note issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price of the Bonds. EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT. THE SECONDARY MARKET FOR THE BONDS, IF ANY, COULD BE LIMITED. Rating Loss: Moody’s Investors Service (“Moody’s”) has assigned a rating of ‘__’ to the Bonds. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance the rating will continue for any given period of time, or that such rating will not be revised, suspended or withdrawn, if, in the judgment of Moody’s, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds. Bankruptcy and Insolvency: The rights and remedies provided in the Resolution for the Bonds may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditor’s rights, to the exercise of judicial discretion in appropriate cases and to limitations in legal remedies against exercise of judicial discretion in appropriate cases and to limitations on legal remedies against municipal corporations in 141 8 the State of Iowa. The various opinions of counsel to be delivered with respect to the Bonds, the Loan Agreement and the Resolution for the Bonds, including the opinion of Bond Counsel, will be similarly qualified. If the City were to file a petition under chapter nine of the federal bankruptcy code, the owners of the Bonds could be prohibited from taking any steps to enforce their rights under the Resolution for the Bonds. In the event the City fails to comply with its covenants under the Resolution for the Bonds or fails to make payments on the Bonds, there can be no assurance of the availability of remedies adequate to protect the interests of the holders of the Bonds. Under Iowa Code Chapter 76 sections 76.16 and 76.16A of the Act, as amended, a city, county, or other political subdivision may become a debtor under Chapter 9 of the Federal bankruptcy code, if it is rendered insolvent, as defined in 11 U.S.C. §101(32)(c), as a result of a debt involuntarily incurred. As used therein, “debt” means an obligation to pay money, other than pursuant to a valid and binding collective bargaining agreement or previously authorized bond issue, as to which the governing body of the city, county, or other political subdivision has made a specific finding set forth in a duly adopted resolution of each of the following: (1) all or a portion of such obligation will not be paid from available insurance proceeds and must be paid from an increase in general tax levy; (2) such increase in the general tax levy will result in a severe, adverse impact on the ability of the city, county, or political subdivision to exercise the powers granted to it under applicable law, including without limitation providing necessary services and promoting economic development; (3) as a result of such obligation, the city, county, or other political subdivision is unable to pay its debts as they become due; and (4) the debt is not an obligation to pay money to a city, county, entity organized pursuant to chapter 28E of the Code of Iowa, or other political subdivision. Forward-Looking Statements: This Preliminary Official Statement contains statements relating to future results that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When used in this Preliminary Official Statement, the words “anticipated,” “plan,” “expect,” “projected,” “estimate,” “budget,” “pro forma,” “forecast,” “intend,” and similar expressions identify forward-looking statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual results to differ, possibly materially, from those contemplated in such forward-looking statements. Inevitably, some assumptions used to develop forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore, investors should be aware that there are likely to be differences between forward-looking statements and the actual results. These differences could be material and could impact the availability of funds of the City to pay debt service when due on the Bonds. Cybersecurity: The City, like many other public and private entities, relies on a large and complex technology environment to conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to, hacking, viruses, malware and other attacks on computer or other sensitive digital systems and networks. There can be no assurances that any security and operational control measures implemented by the Issuer will be completely successful to guard against and prevent cyber threats and attacks. Failure to properly maintain functionality, control, security, and integrity of the City’s information systems could impact business operations and systems, and the costs of remedying any such damage could be significant. The City maintains cybersecurity insurance coverage. The City cannot predict whether this coverage would be sufficient in the event of a cyber-incident. Tax Matters and Loss of Tax Exemption: As discussed under the heading “TAX EXEMPTION AND RELATED TAX MATTERS” herein, the interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Bonds, as a result of acts or omissions of the City in violation of its covenants in the Resolution. Should such an event of taxability occur, the Bonds would not be subject to a special redemption and would remain outstanding until maturity or until redeemed under the redemption provisions contained in the Bonds, and there is no provision for an adjustment of the interest rate on the Bonds. It is possible that actions of the City after the closing of the Bonds will alter the tax exempt status of the Bonds, and, in the extreme, remove the tax exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory prepayment, and the interest rate on the Bonds does not increase or otherwise reset. A determination of taxability on the Bonds, after closing of the Bonds, could materially adversely affect the value and marketability of the Bonds. 142 9 Risk of Audit: The Internal Revenue Service has an ongoing program to audit tax-exempt obligations to determine the legitimacy of the tax status of such obligations. No assurance can be given as to whether the Internal Revenue Service will commence an audit of the Bonds. Public awareness of any audit could adversely affect the market value and liquidity of the Bonds during the pendency of the audit, regardless of the ultimate outcome of the audit. DTC-Beneficial Owners: Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of principal of and interest on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC will credit such distributions to the accounts of the Participants which will thereafter credit them to the accounts of the Beneficial Owner either directly or indirectly through indirect Participants. Neither the City nor the Paying Agent will have any responsibility or obligation to assure that any such notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial Owner. In addition, since transactions in the Bonds can be effected only through DTC Participants, indirect participants and certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate. Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the Participants. See “BOOK-ENTRY-ONLY ISSUANCE” herein. Proposed Federal Tax Legislation: From time to time, Presidential proposals, federal legislative committee proposals or legislative proposals are made that would, if enacted, alter or amend one or more of the federal tax matters described herein in certain respects or would adversely affect the market value of the Bonds. It cannot be predicted whether or in what forms any of such proposals that may be introduced, may be enacted and there can be no assurance that such proposals will not apply to the Bonds. In addition, regulatory actions are from time to time announced or proposed, and litigation threatened or commenced, which if implemented or concluded in a particular manner, could adversely affect the market value, marketability, or tax status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be impacted thereby. See “TAX EXEMPTION AND RELATED TAX MATTERS” herein. Pension and Other Post-Employment Benefits (“OPEB”) Information: The City contributes to the Iowa Public Employees’ Retirement System (“IPERS”), which is a state-wide multiple-employer cost-sharing defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits which are established by State statute to plan members and beneficiaries. IPERS plan members are required to contribute a percentage of their annual salary, in addition to the City being required to make annual contributions to IPERS. Contribution amounts are set by State statute. The IPERS Annual Comprehensive Financial Report for its fiscal year ended June 30, 2023 (the “IPERS ACFR”), indicates that as of June 30, 2023, the date of the most recent actuarial valuation for IPERS, the funded ratio of IPERS was 89.70%, and the unfunded actuarial liability was approximately $4.707 billion. The IPERS ACFR identifies the IPERS Net Pension Liability at June 30, 2023, at approximately $4.514 billion (market value), while its net pension liability at June 30, 2022, was approximately $3.778 billion (market value). The IPERS ACFR is available on the IPERS website, or by contacting IPERS at 7401 Register Drive, Des Moines, IA 50321. See “APPENDIX C – JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT” for additional information on IPERS. However, the information presented in such financial reports or on such websites is not incorporated into this Preliminary Official Statement by any references. In the Fiscal Year ended June 30, 2023, the City’s IPERS contribution totaled approximately $11,205,032. The City is current in its obligations to IPERS. ` At June 30, 2023, the City reported a liability of $14,057,498 for its proportionate share of the net pension liability (asset). While the City’s contributions to IPERS are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official Statement for additional information on pension and liabilities of the City. 143 10 Bond Counsel, the Municipal Advisor and the City undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from the IPERS discussed above or included on the IPERS website, including, but not limited to, updates of such information on the State Auditor’s website or links to other Internet sites accessed through the IPERS website. The City contributes to Municipal Fire and Police Retirement System of Iowa (“MFPRSI”), which is a multiple-employer cost-sharing defined benefit pension plan for fire fighters and police officers, administered under Chapter 411 of the Code of Iowa. MFPRSI plan members are required to contribute a percentage of their annual salary, in addition to the City being required to make annual contributions to MFPRSI. Contribution amounts are set by State statute. The MFPRSI Annual Comprehensive Financial Report for its fiscal year ended June 30, 2023 (the “MFPRSI Report”) indicates that as of June 30, 2023, the date of the most recent actuarial valuation for MFPRSI, the funded ratio of MFPRSI was 84.57%, and the unfunded actuarial liability was approximately $586.8 million. The MFPRSI Report identifies the MFPRSI Net Pension Liability at June 30, 2023, at approximately $626.2 million (market value), while its net pension liability at June 30, 2022, at approximately $561.6 million (market value). The MFPRSI Report is available on the MFPRSI website. See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official Statement for additional information on MFPRSI. In the Fiscal Year ended June 30, 2023, the City’s MFPRSI contribution totaled approximately $2,197,536. The City is current in its obligations to MFPRSI. At June 30, 2023, the City reported a liability of $14,408,725 for its proportionate share of the net pension liability (asset). While the City’s contributions to MFPRSI are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official Statement for additional information on pension and liabilities of the City. Bond Counsel, the Municipal Advisor and the City undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from the MFPRSI discussed above or included on the MFPRSI website, including, but not limited to, updates of such information on the State Auditor’s website or links to other Internet sites accessed through the MFPRSI website. The City and hospital provide health and dental care benefits for retirees and their beneficiaries through a single-employer, defined benefit plan. The hospital also provides a life insurance benefit. The City has the authority to establish and amend benefit provisions of the plan. Participants must be age 55 or older. The contribution requirements of the City are established and may be amended by the City. Plan members are currently not required to contribute. The City funds on a pay-as-you-go basis. For additional information, see “OTHER POST-EMPLOYMENT BENEFITS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official Statement. Summary: The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an informed investment decision, potential investors should become thoroughly familiar with this entire Preliminary Official Statement and the appendices hereto. RATING The Bonds have been rated ‘___’ by Moody’s. Currently, Moody’s rates the City’s outstanding General Obligation long- term debt ‘Aa1’. The existing rating on long-term debt reflects only the view of the rating agency and any explanation of the significance of such rating may only be obtained from Moody’s. The ratings described above are not recommendations to buy, sell or hold the Bonds. There is no assurance that any such rating will continue for any period of time or that it will not be revised downward or withdrawn entirely if, in the judgment of Moody’s, circumstances so warrant. Therefore, after the date hereof, investors should not assume that the ratings are still in effect. A downward revision or withdrawal 144 11 of either rating is likely to have an adverse effect on the market price and marketability of the Bonds. The City has not assumed any responsibility either to notify the owners of the Bonds of any proposed change in or withdrawal of any rating subsequent to the date of this Preliminary Official Statement, except in connection with the reporting of events as provided in the Continuing Disclosure Certificate, or to contest any revision or withdrawal. MUNICIPAL ADVISOR The City has retained PFM Financial Advisors LLC, Des Moines, Iowa as Municipal Advisor in connection with the preparation of the issuance of the Bonds. In preparing the Preliminary Official Statement, the Municipal Advisor has relied on government officials and other sources to provide accurate information for disclosure purposes. The Municipal Advisor is not obligated to undertake, and has not undertaken, an independent verification of the accuracy, completeness or fairness of the information contained in this Preliminary Official Statement. PFM Financial Advisors LLC is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. CONTINUING DISCLOSURE The City will covenant in a Continuing Disclosure Certificate for the benefit of the owners and beneficial owners of the Bonds to provide annually certain financial information and operating data relating to the City (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City no later than June 30th after the close of each fiscal year, commencing with the fiscal year ending June 30, 2024, with the Municipal Securities Rulemaking Board, at its internet repository named “Electronic Municipal Market Access” (“EMMA”). The notices of events, if any, are also to be filed with EMMA. See “FORM OF CONTINUING DISCLOSURE CERTIFICATE” included in APPENDIX D to this Preliminary Official Statement The specific nature of the information to be contained in the Annual Report or the notices of events, and the manner in which such materials are to be filed, are summarized in the “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriter in complying with SEC Rule 15c2-12(b)(5) (the “Rule”). In accordance with the reporting requirements of paragraph (f)(3) of the Rule, within the past five years, the City has not failed to comply, in all material respects, with any previous undertakings it has entered into with respect to the Rule. Regarding the Mary Greeley Medical Center’s (the “Medical Center”) the Annual Financial Information and Operating Data Report for the Fiscal Year ending June 30, 2021 was not timely filed. Breach of the undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for the Bonds. A broker or dealer is to consider a known breach of the undertakings, however, before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the undertakings may adversely affect the transferability and liquidity of the Bonds and their market price. FINANCIAL STATEMENTS The City’s “JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT”, as prepared by City management and audited by a certified public accountant, is reproduced as APPENDIX C. The City’s certified public accountant has not consented to distribution of the audited financial statements and has not undertaken added review of their presentation. Further information regarding financial performance and copies of the City’s prior Annual Comprehensive Financial Report may be obtained from PFM Financial Advisors LLC. 145 12 CERTIFICATION The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial sale of the Bonds. I have reviewed the information contained within the Preliminary Official Statement prepared on behalf of the City by PFM Financial Advisors LLC, Des Moines, Iowa, and to the best of my knowledge, information and belief, said Preliminary Official Statement does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading regarding the issuance of $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A. CITY OF AMES, IOWA /s/ Roger Wisecup, City Treasurer * Preliminary; subject to change. 146 APPENDIX A GENERAL INFORMATION ABOUT THE CITY OF AMES, IOWA The $18,810,000* GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024A (the “Bonds”) are general obligations of the City of Ames, Iowa (the “City”) for which the City will pledge its power to levy direct ad valorem taxes against all taxable property within the City without limitation as to rate or amount to the repayment of the Bonds. * Preliminary, subject to change. 147 (This page has been left blank intentionally.) 148 A-1 CITY PROPERTY VALUATIONS IOWA PROPERTY VALUATIONS In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2023 final Actual Values were adjusted by the Story County Auditor. The reduced values, determined after the application of rollback percentages, are the taxable values subject to tax levy. For assessment year 2023, the taxable value rollback rate is 46.3428% of actual value for residential property; 71.8370% of actual value for agricultural property and 100.0000% of the actual value of utility property. The residential taxable rollback rate of 46.3428% would apply to the value of each property unit of commercial, industrial and railroad property that exceeds zero dollars ($0), but does not exceed one hundred fifty thousand dollars ($150,000) with a taxable value rollback rate of 90.0000% to the value that exceeds one hundred fifty thousand dollars ($150,000). No adjustment was ordered for utility property because its assessed value did not increase enough to qualify for reduction. Utility property is limited to an 8% annual growth. The Legislature’s intent has been to limit the growth of statewide taxable valuations for the specific classes of property to 3% annually. Political subdivisions whose taxable values are thus reduced or are unusually low in growth are allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services. PROPERTY VALUATIONS (1/1/2023 Valuations for Taxes Payable July 1, 2024 through June 30, 2025) 100% Actual Value Taxable Value (With Rollback) Residential $5,141,458,100 $2,382,695,581 Commercial 1,188,254,100 1,018,475,396 Industrial 175,859,000 154,847,932 Railroads 13,211,766 11,881,121 Utilities w/o Gas & Electric 536,455 536,455 Gross valuation $6,519,319,421 $3,568,436,485 Less exemptions 1) (12,346,280) (12,346,280) Net valuation $6,506,973,141 $3,556,090,205 TIF Increment $16,426,500 $17,675,578 Taxed separately Ag. Land & Building $5,770,400 $4,145,285 Gas & Electric Utilities $37,740,516 $8,084,945 1) Includes both Military and Homestead Exemptions. 2023 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1) Taxable Valuation Percent of Total Residential $2,382,695,581 66.62% Gas & Electric Utilities 8,084,945 0.23% Commercial, Industrial, Railroads, Utility 1,185,740,904 33.15% Total Gross Taxable Valuation $3,576,521,430 100.00% 1) Excludes Taxable TIF Increment and Ag. Land & Buildings. 149 A-2 TREND OF VALUATIONS Assessment Yea Payable Fiscal Yea 100% Actual Valuation Taxable Valuation (With Rollback) Taxable TIF Incremen 2019 2020-21 $5,026,796,234 $3,112,286,020 $75,857,137 2020 2021-22 5,191,529,367 3,257,725,869 81,120,190 2021 2022-23 5,516,177,632 3,399,701,391 57,260,674 2022 2023-24 5,545,568,538 3,406,697,589 17,675,578 2023 2024-25 6,566,910,557 3,564,175,150 16,426,500 The 100% Actual Valuation, before rollback and after the reduction of military exemption, includes Ag. Land & Buildings, TIF Increment and Gas & Electric Utilities. The Taxable Valuation, with the rollback and after the reduction of military exemption, includes Gas & Electric Utilities and excludes Ag. Land & Buildings and Taxable TIF Increment. Iowa cities certify operating levies against Taxable Valuation excluding Taxable TIF Increment and debt service levies are certified against Taxable Valuation including the Taxable TIF Increment. LARGER TAXPAYERS Set forth in the following table are the persons or entities which represent larger taxpayers within the boundaries of the City, as provided by the Story County Auditor’s office. No independent investigation has been made of and no representation is made herein as to the financial condition of any of the taxpayers listed below or that such taxpayers will continue to maintain their status as major taxpayers in the City. With the exception of the electric and natural gas provider noted below (which is subject to an excise tax in accordance with Iowa Code chapter 437A), the City’s mill levy is uniformly applicable to all of the properties included in the table, and thus taxes expected to be received by the City from such taxpayers will be in proportion to the assessed valuations of the properties. The total tax bill for each of the properties is dependent upon the mill levies of the other taxing entities which overlap the properties. Taxpaye 1) Type of Property/Business 1/1/2023 2) Taxable Valuation Iowa State University Research Park Commercial $67,313,728 Barilla America Inc. Industrial 49,658,684 Clinic Building Company Inc. Commercial 36,184,200 Campus Investors IS LLC Commercial 28,714,688 Bricktowne Ames LC Commercial 25,138,427 Spirit Realty LP Commercial 23,691,218 FPA6 University West LLC Commercial 21,332,151 Dayton Park LLC Commercial 21,321,844 Walmart Inc. Store 4256-00 Commercial 19,038,994 Midwest Centers LP Commercial 18,637,684 1) This list represents some of the larger taxpayers in the City, not necessarily the 10 largest taxpayers. 2) The January 1, 2023 Taxable valuations listed represents only those valuations associated with the title holder and may not necessarily represent the entire taxable valuation. Source: Story County Auditor 150 A-3 CITY INDEBTEDNESS DEBT LIMIT Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county, municipality or other political subdivision to no more than 5% of the Actual Value of all taxable property within the corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2023 Actual Valuation currently applicable to the Fiscal Year 2024-25, is as follows: 2023 Gross Actual Valuation of Property $6,566,910,557 1) Legal Debt Limit of 5% 0.05 Legal Debt Limi $328,345,528 Less: G.O. Debt Subject to Debt Limi (85,845,000) * Less: Other Debt Subject to Debt Limi (375,000) 2) Net Debt Limi $242,125,528 * 1) Actual Valuation of property as reported by the Iowa Department of Management for the Fiscal Year 2024-25. 2) Other Debt Subject to Debt Limit includes TIF rebate agreement payments appropriated for Fiscal Year 2024-25. DIRECT DEBT General Obligation Debt Paid by Taxes and Other Sources 1) (Includes the Bonds) Date of Issue Original Amoun Purpose Final Maturity Principal Outstanding As of 9 25/2024 9/14 $9,695,000 Corporate Purpose Improvements 6/26 $1,315,000 9/15A 18,445,000 Corporate Purpose Improvements & Refunding 6/35 4,240,000 9/16A 11,650,000 Corporate Purpose Improvements & Refunding 6/28 3,245,000 9/17A 10,975,000 Corporate Purpose Improvements & Refunding 6/29 3,255,000 9/18A 7,490,000 Corporate Purpose Improvements 6/30 4,190,000 9/19A 10,775,000 Corporate Purpose Improvements 6/31 6,625,000 9/20A 17,865,000 Corporate Purpose Improvements & Refunding 6/32 8,695,000 9/21A 19,640,000 Corporate Purpose Improvements & Refunding 6/33 14,040,000 11/22A 12,440,000 Corporate Purpose Improvements 6/34 10,450,000 11/23D 12,110,000 Corporate Purpose Improvements 6/35 10,980,000 9/24A 18,810,000* Corporate Purpose Improvements 6/44 18,810,000 * Total $85,845,000 * 1) The City’s general obligation debt is abated by tax increment reimbursements, water revenues, sewer revenues, airport revenues, resource recovery revenues and special assessments. * Preliminary; subject to change. 151 A-4 Annual Fiscal Year Debt Service Payments (Includes the Bonds) Existing Deb The Bonds Total Outstanding Fiscal Yea Principal Principal and Interes Principal* Principal and Interes * Principal* Principal and Interes * 2024-25 $9,325,000 $11,877,731 $960,000 $1,518,523 $10,285,000 $13,396,254 2025-26 9,050,000 11,192,731 680,000 1,449,350 9,730,000 12,642,081 2026-27 8,630,000 10,397,356 715,000 1,450,350 9,345,000 11,847,706 2027-28 7,685,000 9,097,006 750,000 1,449,600 8,435,000 10,546,606 2028-29 7,070,000 8,228,431 785,000 1,447,100 7,855,000 9,675,531 2029-30 6,645,000 7,529,931 825,000 1,447,850 7,470,000 8,977,781 2030-31 6,095,000 6,749,481 870,000 1,451,600 6,965,000 8,201,081 2031-32 5,265,000 5,743,344 910,000 1,448,100 6,175,000 7,191,444 2032-33 3,400,000 3,713,425 955,000 1,447,600 4,355,000 5,161,025 2033-34 2,550,000 2,728,500 995,000 1,449,400 3,545,000 4,177,900 2034-35 1,320,000 1,384,950 995,000 1,409,600 2,315,000 2,794,550 2035-36 995,000 1,369,800 995,000 1,369,800 2036-37 910,000 1,245,000 910,000 1,245,000 2037-38 945,000 1,243,600 945,000 1,243,600 2038-39 985,000 1,245,800 985,000 1,245,800 2039-40 1,020,000 1,241,400 1,020,000 1,241,400 2040-41 1,065,000 1,245,600 1,065,000 1,245,600 2041-42 1,105,000 1,243,000 1,105,000 1,243,000 2042-43 1,150,000 1,243,800 1,150,000 1,243,800 2043-44 1,195,000 1,242,800 1,195,000 1,242,800 Total $67,035,000 $18,810,000* $85,845,000* * Preliminary; subject to change. OTHER DEBT Water Revenue Debt The City has water revenue debt paid solely from the net revenues of the Water Utility as follows: Date of Issue Original Amoun Purpose Final Maturity Principal Outstanding As of 9 25/2024 1/15 $61,482,339 1) Water Revenue Bonds (SRF) 6/37 $41,662,000 8/22 3,500,000 Water Revenue Bonds (SRF) 6/42 3,209,000 2) 6/23C 12,161,000 Water Revenue Bonds (SRF) 6/43 11,811,000 3) Total $56,682,000 1) Final loan amount is net of $6,598,621.20 forgiven on April 2, 2021. 2) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $2,501,364.69 based on draws through June 3, 2024. 3) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $5,751,716.11 based on draws through June 3, 2024. 152 A-5 Sewer Revenue Debt The City has sewer revenue debt paid solely from the net revenues of the Sewer Utility as follows: Date of Issue Original Amoun Purpose Final Maturity Principal Outstanding As of 9 25/2024 11/12 $2,474,250 Sewer Revenue Bonds (SRF) 6/33 $1,147,000 9/16 641,332 Sewer Revenue Bonds (SRF) 6/36 400,000 2/18-1 767,771 Sewer Revenue Bonds (SRF) 6/38 551,000 10/18-2 5,206,055 Sewer Revenue Bonds (SRF) 6/38 4,072,000 1/23-1 4,071,000 Sewer Revenue Bonds (SRF) 6/42 3,892,000 1) 1/23-2 7,631,852 Taxable Sewer Revenue Bonds (SRF) 6/42 7,320,000 8/23-3 2,150,000 Sewer Revenue Bonds (SRF) 6/43 2,149,000 2) Total $19,531,000 1) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $1,420,576.36 based on draws through June 3, 2024. 2) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $1,049,083.85 based on draws through June 3, 2024. Electric Revenue Debt The City has electric revenue debt paid solely from the net revenues of the Electric Utility as follows: Date of Issue Original Amoun Purpose Final Maturity Principal Outstanding As of 9 25/2024 12/15B $9,500,000 Electric Revenue Bonds 6/27 $2,750,000 Hospital Revenue Debt The City has hospital revenue debt paid solely from the net revenues of Mary Greeley Medical Center as follows: Date of Issue Original Amoun Purpose Final Maturity Principal Outstanding As of 9 25/2024 11/12 $26,000,000 Mary Greeley Medical Center & Refunding 6/27 $1,450,000 06/16 64,790,000 Mary Greeley Medical Center & Refunding 6/36 53,810,000 11/19 35,000,000 Mary Greeley Medical Cente 6/34 24,945,000 Total $80,205,000 153 A-6 OVERLAPPING DEBT Taxing Distric 1/1/2023 Taxable Valuation 1) Portion of Taxable Valuation Within the City Percent Applicable G.O. Deb 2) City’s Proportionate Share Story County $6,189,634,721 $3,584,746,935 57.92% $2,958,943 $1,713,820 Ames CSD 3,257,516,306 3,202,560,298 98.31% 81,015,000 79,645,847 Gilbert CSD 728,315,890 368,424,273 50.59% 20,160,000 10,198,944 Nevada CSD 627,077,070 1,350,218 0.22% 6,835,000 15,037 United CSD 416,233,592 12,412,146 2.98% 1,105,000 32,929 DMACC 67,526,147,035 3,584,746,935 5.31% 75,280,000 3,997,368 City’s share of total overlapping debt: $95,603,945 1) Taxable Valuation excludes military exemption and includes Ag Land, Ag Buildings, all Utilities and TIF Increment. 2) Includes general obligation bonds, PPEL notes, certificates of participation and new jobs training certificates. DEBT RATIOS G.O. Debt Debt/Actual Market Value ($6,566,910,557) 1) Debt/66,427 Population 2) Total General Obligation Deb $85,845,000* 1.31%* $1,292.32 City’s Share of Overlapping Deb $95,603,945 1.46% $1,439.23 1) Based on the City’s 1/1/2023 100% Actual Valuation; includes Ag Land, Ag Buildings, all Utilities and TIF Increment. 2) Population based on the City’s 2020 U.S. Census. * Preliminary; subject to change. LEVIES AND TAX COLLECTIONS Fiscal Yea Levy Collected During Collection Yea Percent Collected 2019-20 $31,041,345 $30,109,340 97.00% 2020-21 31,838,345 30,756,123 96.60% 2021-22 32,428,985 31,361,804 96.71% 2022-23 33,603,968 33,497,600 99.68% 2023-24 34,821,256 --------In Process of Collection-------- 2024-25 36,044,753 --------In Process of Collection-------- Collections include delinquent taxes from all prior years. Taxes in Iowa are delinquent each October 1 and April 1 and a late payment penalty of 1% per month of delinquency is enforced as of those dates. If delinquent taxes are not paid, the property may be offered at the regular tax sale on the third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property and funds so received are applied to taxes. A property owner may redeem from the regular tax sale but, failing redemption within three years, the tax sale purchaser is entitled to a deed, which in general conveys the title free and clear of all liens except future tax installments. Source: The City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2022 and the City’s Adoption of Budget and Certification of City Taxes Form 85-811 for FY 2022-23, FY 2023-24 and FY 2024-25. 154 A-7 TAX RATES FY 2020-21 $/$1,000 FY 2021-22 $/$1,000 FY 2022-23 $/$1,000 FY 2023-24 $/$1,000 FY 2024-25 $/$1,000 Story County 5.02778 4.95627 4.50207 4.50196 4.41532 Story County Hospital 0.90891 0.87250 0.93350 0.93090 0.93090 County Ag. Extension 0.07960 0.07582 0.11527 0.11735 0.11259 City of Ames 10.14681 9.87363 9.82936 10.20097 10.09446 City Assesso 0.34504 0.38331 0.33790 0.35183 0.32228 Ames Comm. School District 14.34107 14.34470 14.28616 13.93640 14.00913 Gilbert Comm. School District 18.08785 17.20522 17.05730 16.80418 17.00785 Nevada Comm. School District 14.71656 14.91083 14.71344 14.69969 13.57043 United Comm. School District 12.00008 10.44720 9.76510 9.76371 9.69845 Des Moines Area Comm. College 0.63533 0.67789 0.69448 0.74410 0.75916 State of Iowa 0.00270 0.00260 0.00240 0.00180 0.00180 Total Tax Rate: Ames CSD Resident 31.48724 31.18672 30.70114 30.78531 30.64564 Gilbert CSD Residen 35.23402 34.04724 33.47228 33.65309 33.64436 Nevada CSD Resident 31.86273 31.75285 31.12841 31.54860 30.20694 United CSD Residen 29.14625 27.28922 26.18008 26.61262 26.33496 LEVY LIMITS On May 4, 2023, the Governor signed House File 718 (“HF 718”), a property tax reform law aimed at reducing property tax growth in Iowa. Among other things, HF 718 permanently consolidates several existing city property tax levies and creates a new adjusted city general fund levy (“ACGFL”). To control the growth of property taxes, the new ACGFL is subject to potential limitation or reduction by constraining growth by 2% or 3% each year depending on if certain growth triggers are met or exceeded during the prior year. The levy limitation is only applicable Fiscal Year 2024-25 through Fiscal Year 2027-28 and will be specific to each city. For Fiscal Year 2023-24, the City will calculate the new ACGFL as the baseline rate and the first annual ACGFL adjustment will begin Fiscal Year 2024-25. The ACGFL rates for Fiscal Years 2024-25 through 2027-28 are based on growth in city taxed value and the previous year’s city tax rate. Beginning in Fiscal Year 2028-29, all cities go to a $8.10 ACGFL maximum and the levy limitation calculation ceases. Certain levies like debt service, pensions, employee benefits and capital improvement reserve fund are not included in the new ACGFL limitation. The City’s recent property valuation growth has, on occasion, exceeded the new legislative caps. Assuming the City exceeds the legislative caps in the future, the City’s general fund levies will lag its relative valuation growth. For Fiscal Year 2024-25, the City’s non TIF tax valuation growth was 4.62% causing the City’s property tax revenue from the ACGFL to be reduced by 2% of its revenues. The City’s Budget for Fiscal Year 2024-25 accommodated this mitigation of tax revenue relative to its non-TIF tax valuation growth. On May 1, 2024, new legislation (“SF 2442”) was signed into law by the Governor, which amongst other things, adjusts levy rates modified under HF 718 based on default rates and certain growth parameters for taxes and budgets beginning on or after July 1, 2025. 155 A-8 FUNDS ON HAND (CASH AND INVESTMENTS AS OF JUNE 30, 2024) Governmental General Fund $15,821,163 Debt Service Fund 3,860,776 Capital Projects Fund 28,173,358 Other Governmental Funds 33,603,240 Business-type Mary Greeley Medical Cente $399,595,496 Electric Utility 57,835,597 Sewer Utility 18,255,419 Water Utility 20,302,045 Other Enterprise Funds 37,982,272 Internal Service Funds 30,482,681 Total all funds $645,912,047 GENERAL FUND BUDGETS (ACCRUAL BASIS) The table below represents a comparison between the final Fiscal Year 2022-23 actual financial performance, the amended Fiscal Year 2023-24 budget, and the adopted Fiscal Year 2024-25 budget on an accrual basis. Actual FY 2022-23 Amended FY 2023-24 Adopted FY 2024-25 Revenues: Property taxes $20,414,186 $23,628,352 $24,240,520 Other City taxes 3,033,895 2,952,358 2,955,076 Licenses and permits 1,465,409 1,518,875 1,589,301 Use of money and property 888,390 1,470,314 1,173,853 Intergovernmental 3,016,339 3,309,803 3,253,073 Charges for fees and services 2,148,491 2,304,048 2,440,498 Miscellaneous 334,193 200,927 195,720 Transfers in 11,801,827 9,914,677 9,872,716 Proceeds of Capital Asset Sales - - - Total revenues $43,102,730 $45,299,354 $45,720,757 Expenditures: Public safety $20,517,001 $22,111,270 $23,318,446 Public works 1,062,724 1,132,882 1,106,546 Health and social services 1,412 - - Culture and recreation 8,988,846 9,921,126 10,253,330 Community & economic developmen 1,053,629 1,153,343 1,142,265 General governmen 3,065,610 3,835,566 3,472,447 Capital projects 546,621 4,502,100 - Transfers ou 5,855,595 8,700,177 6,427,723 Total expenditures $41,091,438 $51,356,464 $45,720,757 Excess (deficiency) of revenues ove (under) expenditures 2,011,292 (6,057,110) - Fund balance at beginning of yea $14,275,721 $16,287,013 $10,229,903 Fund balance at end of yea $16,287,013 $10,229,903 $10,229,903 156 A-9 THE CITY CITY GOVERNMENT The City of Ames, Iowa (the “City”) is governed under and operates under a Mayor-Council form of government with a City Manager. The principle of this type of government is that the Council sets policy and the City Manager carries it out. The six members of the Council are elected for staggered four-year terms. One member is elected from each of the four wards and two are elected at large. The Council appoints the City Manager as well as the City Attorney. The City Manager is the chief administrative officer of the City. The Mayor is elected for a four-year term, presides at Council meetings and appoints members of various City boards, commissions and committees with the approval of the Council. EMPLOYEES AND PENSIONS The City currently has 1,433 full-time employees of which 506 are governmental employees and 927 are employees of the Mary Greeley Medical Center, and 1,171 part-time employees (including seasonal employees) of which 509 are governmental employees and 662 are employees of the Mary Greeley Medical Center. Included in the City’s full-time employees are 53 sworn police officers and 59 firefighters. The City participates in two statewide employee retirement systems, the Iowa Public Employees Retirement System (“IPERS”) and the Municipal Fire and Police Retirement System of Iowa (“MFPRSI”). The State of Iowa administers IPERS and a nine-member board of trustees governs the MFPRSI. Though separate and apart from state government, the MFPRSI board is authorized by state legislature, which also establishes by statute the pension and disability benefits and the system’s funding mechanism. Some eligible employees are able to participate in a defined contribution plan if their positions are funded in whole or in party by a utility. Iowa Public Employees Retirement System: The City contributes to IPERS, which is a cost-sharing, multiple-employer, contributory defined benefit public employee retirement system administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by state statute, to plan members and beneficiaries. IPERS is authorized to adjust the total contribution rate up or down each year, by no more than 1 percentage point, based upon the actuarially required contribution rate. The City’s contributions to IPERS for the past three fiscal years, as shown below, equal the required contributions for each year. FY 2020-21 FY 2021-22 FY 2022-23 IPERS City Contribution $9,131,127 $10,223,542 $11,205,032 At June 30, 2023, the City reported a liability of $14,057,498 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by the actuarial valuation of that date. The City’s proportion of the net pension liability (asset) was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all employers participating in IPERS, actuarily determined. At June 30, 2022, the City’s proportion was 1.3058%, which was an increase of 1.3438% from its proportion measured as of June 30, 2021. For additional information on IPERS, refer to Section 4.6, beginning on page 56 of the City’s June 30, 2023 ACFR contained in APPENDIX C to this Preliminary Official Statement. Bond Counsel, the City and the Municipal Advisor undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from the IPERS discussed above or included on the IPERS website, including, but not limited to, updates of such information on the State Auditor’s website or links to other Internet sites accessed through the IPERS website. Municipal Fire and Police Retirement System of Iowa: The City contributes to MFPRSI, which is a cost-sharing, multiple- employer defined benefit pension plan. MFPRSI provides retirement, disability, and death benefits to firefighters and police offers. Benefit provisions are established by state statute, and vest after four years of credited service. 157 A-10 MFPRSI plan members are required to contribute a percentage of their annual covered salary, and the City is required to contribute at an actuarially determined rate of annual covered payroll. The contribution requirements of plan members and the City are established, and may be amended by state statute. The City’s contributions to MFPRSI for the past three fiscal years, as shown below, equal the required contributions for each year. FY 2020-21 FY 2021-22 FY 2022-23 MFPRSI City Contribution $2,200,185 $2,268,424 $2,197,536 At June 30, 2023, the City reported a liability of $14,408,725 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by the actuarial valuation of that date. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all employers participating in IPERS, actuarily determined. At June 30, 2022, the City’s proportion was 2.5658%, which was a decrease of 0.1097% from its proportion measured as of June 30, 2021. Bond Counsel, the City and the Municipal Advisor undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from MFPRSI discussed above or included on the MFPRSI websites, including, but not limited to, updates of such information on the State Auditor’s website or links to other Internet sites accessed through the MFPRSI websites. For additional information on MFPRSI, refer to Section 4, Municipal Fire and Police Retirement System of Iowa (MFPRSI) beginning on page 60 of the City’s June 30, 2023 ACFR contained in APPENDIX C to this Preliminary Official Statement. OTHER POST-EMPLOYMENT BENEFITS (“OPEB”) The City provides health and dental care benefits for retired employees and their beneficiaries through a single-employer, defined benefit plan. The hospital also provides a life insurance benefit. The City has the authority to establish and amend benefit provisions of the plan. The post-employment benefit is limited to the implied subsidy since retirees pay 100% of the premium for the insurance benefits, since the premium rates are based on the entire pool of covered members, the retirees receive an implied subsidy since their rate are not risk adjusted. As of June 30, 2023 there were 603 active employees and 36 inactive employees or beneficiaries receiving benefits. The following table shows the components of the City’s annual OPEB cost for the Fiscal Year ended June 30, 2023, the amount actually contributed to the plan, and changes in the City’s annual OPEB obligation. City Balance, beginning of Yea $2,891,232 Changes for the year: Service Cos 199,160 Interes 105,760 Difference between expected and actual experience - Change in Assumptions or other inputs (30,021) Benefit Payments (205,641) Net Changes 69,258 Net OPEB obligation, end of yea $2,960,490 For additional information regarding the City’s Other Post-Employment Benefits, refer to 4.7, beginning on page 64 of the City’s June 30, 2023 ACFR contained in APPENDIX C to this Preliminary Official Statement. 158 A-11 UNION CONTRACTS City employees are represented by the following bargaining units: Bargaining Unit Contract Expiration Date International Association of Firefighters June 30, 2025 Public, Professional and Maintenance Employees June 30, 2027 International Union of Operating Engineers (Local 234C) June 30, 2025 International Union of Operating Engineers (Local 234D) June 30, 2025 INSURANCE The City purchases insurance policies providing coverage for business needs including but not limited to general liability including auto liability, wrongful acts, excess (over all other coverage except Iowa liquor liability), law enforcement, public official, employee benefit, medical malpractice, underinsured motorist, and uninsured motorist; commercial property including commercial property & boiler and machinery (power generation related), municipal properties & boiler and machinery (non-power generation), and terrorism – TRIA (Federally defined terrorist acts); commercial property flood insurance including non-flood plain facilities (power generation), non-flood plain facilities (non-power), flood plain facilities including transit, water pollution control, airport and all other; airport liability; and cyber liability. Source: the City 159 A-12 GENERAL INFORMATION LOCATION AND TRANSPORTATION The City is located in Story County in central Iowa. It is approximately thirty miles north of Des Moines, Iowa, the State capital and largest city in the state. The City is located on Interstate Highways 35 and 30. The City was incorporated in 1864 under the laws of the State of Iowa, later amended in July, 1975 under the Home Rule City Act. The City, with a United States Census Bureau 2020 population of 66,427, is known for its excellent quality of life which includes a relatively crime-free environment, an extensive park system, superior cultural/recreations facilities and a nationally recognized school system. The City is the home of Iowa State University (“ISU”). ISU was established in 1859 and is an integral part of the community. The City operates a mass transit system to provide efficient and economical transportation to all members of the community. A fixed routing service is available on a daily basis to most residents and a Dial-A-Ride service is available for elderly or handicapped residents. The City operates a municipal airport, which handles primarily charter services. National air service is available at the Des Moines International Airport, approximately thirty miles south of the City. The City is also provided freight services through the Union Pacific Railroad line. LARGER EMPLOYERS A representative list of larger employers in the City is as follows: Employer Type of Business Number of Employees 1) Iowa State University Higher Education 16,116 2) Mary Greeley Medical Cente Health Care 1,589 City of Ames Municipal Governmen 1,015 Danfoss Corp. Hydro-Transmissions 1,180 Iowa Department of Transportation Public Transportation 975 USDA Federal Agency 750 McFarland Clinic, P.C. Health Care 675 Ames Community School District Education 650 Workiva Software 550 Ames Laboratories Federal Agency 415 1) Includes full-time, part-time and seasonal employees. 2) Source: Iowa State University Fact Book. Source: The City 160 A-13 BUILDING PERMITS Permits for the City are reported on a calendar year basis. City officials reported most recently available construction activity for a portion of the current calendar year, as of June 30, 2024. The figures below include both new construction and remodeling. 2020 2021 2022 2023 2024 Residential Construction: Number of units: 461 397 402 457 220 Valuation: $34,947,523 $34,201,457 $33,826,621 $28,211,202 $16,838,969 Commercial Construction: Number of units: 155 162 163 213 73 Valuation: $150,034,358 $62,880,240 $76,251,698 $161,910,873 $60,906,482 Total Permits 616 559 565 670 293 Total Valuations $184,981,881 $97,081,697 $110,078,319 $190,122,075 $77,745,451 U.S. CENSUS DATA Population Trend Population Trend: 1980 U.S. Census 43,775 1990 U.S. Census 47,198 2000 U.S. Census 50,731 2010 U.S. Census 58,965 2020 U.S. Census 66,427 Source: U.S. Census Bureau UNEMPLOYMENT RATES City of Ames Story County State of Iowa Annual Averages: 2020 3.5% 3.5% 5.2% 2021 2.6% 2.7% 3.9% 2022 2.1% 2.1% 2.8% 2023 2.1% 2.1% 3.0% 2024 (as of May) 1.9% 2.0% 3.0% Source: U.S. Bureau of Labor Statistics EDUCATION Public education is provided by the Ames Community School District, with a fall 2023 certified enrollment of 4,546.5. The district, with approximately 650 employees, owns and operates one early childhood center, five elementary schools, one middle school, one high school and a facilities and maintenance building. Nevada Community School District, Gilbert Community School District and United Community School District all lie partially within the City and provide public education to portions of the City. The Iowa State University (“ISU”) 2023 Fall enrollment is currently 30,177. ISU is the City’s largest employer with faculty and staff totaling approximately 16,610, including teaching assistants and hourly part-time employees. ISU, in addition to its educational function, is a leading agricultural research and experimental institution. The Iowa State Center is the cultural center of ISU and the City. It attracts major dramatic and musical events, as well as seminars and conferences to the City. It is a complex of three structures: two theaters with capacities of approximately 2,750 and 450, and a continuing education building with a 450-seat auditorium and 24 meeting rooms. Connected to this 161 A-14 complex are two of Iowa State University’s major Big 12 athletic venues: Jack Trice football stadium with a seating capacity of 61,500 and Hilton Coliseum with capacity for approximately 15,000. In addition to ISU located in the City, the following institutions provide higher education within 30 miles of the City: Drake University, Grand View University, Des Moines University (formerly University of Osteopathic Medicine and Health Services). Two-year degree programs are offered at Des Moines Area Community College, Upper Iowa University, Vatterott College and Kaplan University (formerly Hamilton College). FINANCIAL SERVICES Financial services for the residents of the City are provided by First National Bank Ames, Iowa and VisionBank of Iowa. In addition, the City is served by branch offices of Availa Bank, Bank of the West, Bankers Trust Company, Central State Bank, CoBank ACB, Exchange State Bank, First Interstate Bank, Midwest Heritage Bank F.S.B., South Story Bank & Trust; US Bank, N.A., and Wells Fargo Bank, as well as by several credit unions. First National Bank Ames and VisionBank of Iowa report the following deposits as of June 30 for each year: Yea First National Bank Ames VisionBank of Iowa 2019 $745,795,000 $365,706,000 2020 855,840,000 448,663,000 2021 952,731,000 490,477,000 2022 978,988,000 486,110,000 2023 964,888,000 658,718,000 Source: Federal Deposit Insurance Corporation (FDIC) 162 APPENDIX B FORM OF LEGAL OPINION 163 APPENDIX C JUNE 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT 164 APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE 165 OFFICIAL BID FORM To: City Council of Sale Date: September 10, 2024 City of Ames, Iowa 10:00 A.M., CT RE: $18,810,000* General Obligation Corporate Purpose Bonds, Series 2024A (the “Bonds”) This bid is a firm offer for the purchase of the Bonds identified in the “TERMS OF OFFERING” and on the terms set forth in this bid form and “TERMS OF OFFERING”, and is not subject to any conditions, except as permitted by the “TERMS OF OFFERING”. By submitting this bid, we confirm we have an established industry reputation for underwriting new issuance of municipal bonds. For all or none of the above Bonds, in accordance with the “TERMS OF OFFERING”, we will pay you $________________ (not less than $18,621,900) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years as follows: Coupon Maturity Yield Coupon Maturity Yield Coupon Maturity Yield 2025 2032 2039 2026 2033 2040 2027 2034 2041 2028 2035 2042 2029 2036 2043 2030 2037 2044 2031 2038 * Preliminary; subject to change. The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to increase or reduction by the City or its designee after the determination of the successful bidder. The City may increase or decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $19,750,000. Interest rates specified by the successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City. The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as a percentage of bond principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. We hereby designate that the following Bonds to be aggregated into term bonds maturing on June 1 of the following years and in the following amounts (leave blank if no term bonds are specified): Years Aggregated Maturity Year Aggregate Amount throu h throu h throu h In making this offer we accept all of the terms and conditions of the “TERMS OF OFFERING” published in the Preliminary Official Statement dated August 27, 2024, and represent we are a bidder with an established industry reputation for underwriting new issuances of municipal bonds. In the event of failure to deliver the Bonds in accordance with the “TERMS OF OFFERING” as printed in the Preliminary Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $___________________________ TRUE INTEREST COST: ___________________________% (Based on dated date of September 25, 2024) Account Manager: _________________________________ By: _________________________________________ Account Members: ______________________________________________________________________________ The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Ames, Iowa this 10th day of September 2024. Attest: By: Title: Title: 166 To:Mayor & City Council From:Public Works Date:August 23, 2024 Subject:Third Reading and adoption of Ordinance relating to updates to Chapter 5B and Chapter 22A Item No. 26 MEMO The ordinance relating to updating enforcement provisions to Chapter 5B (Post Construction Stormwater Management) and Chapter 22A (Use of City Right-of-Way by Right-of-Way Users) of Ames Municipal Code is attached for your review and consideration for third reading and adoption. ATTACHMENT(S): Ordinance Chap 5B and 22A.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 167 ORDINANCE NO. _________ AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY AMENDING SECTION 5B.8 AND ENACTING A NEW SECTION 22A.17 THEREOF, FOR THE PURPOSE OF UPDATING CODE ENFORCEMENT PROVISIONS, 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 amending Section 5B.8 and enacting a new Section 22A.17 as follows: “Sec 5B.8. ENFORCEMENT BY LEGAL OR ADMINISTRATIVE ACTION (1)Violation of any provision of this ordinance may be enforced by civil action including an action for injunctive relief. In any civil enforcement action, administrative or judicial, the City shall be entitled to recover its attorneys’ fees and costs from a person who is determined by a court of competent jurisdiction to have violated this ordinance. (2)Violation of any provision of this ordinance may also be enforced as a municipal infraction within the meaning of Iowa Code Section §364.22, pursuant to the City’s municipal infraction ordinance. A violation of any provision of Chapter 5B shall be a municipal infraction punishable by a penalty of $500 for a person’s first violation thereof, and a penalty of $750 for each repeat violation. (3)Restoration of lands: Any violator may be required to restore land to its undisturbed condition. In the event that restoration is not undertaken within a reasonable time after notice, City may take necessary corrective action, the cost of which shall become a lien upon the property until paid. (4)Holds on Occupation Permits: Occupancy permits shall not be granted until all storm water management BMPs have been inspected and approved by City.10.2 *** Sec. 22A.17 ENFORCEMENT A violation of any provision of Chapter 22A shall be a municipal infraction punishable by a penalty of $500 for a person’s first violation thereof, and a penalty of $750 for each repeat violation.” 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 168